Michael D Higgins (Galway West, Labour)
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Question 161: To ask the Tánaiste and Minister for Finance when, in view of the news that the Government plans to amend legislation governing the operation of the National Pensions Reserve Fund to allow for ethical considerations to be taken into account, and as a consequence end Irish investment in cluster munitions, this new amended legislation will be published; and if he will ensure, as has been called for by an organisation (details supplied), that the Government works with human rights and development organisations in order to ensure that a robust set of ethical guidelines is used in the legislation. [10303/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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It is Government policy to campaign for a complete ban on the use of cluster munitions and my colleague, Mr Dermot Ahern, TD, Minister for Foreign Affairs, is working to bring to completion negotiations on the first-ever instrument of international humanitarian law specifically directed against cluster munitions. I understand that there are still significant differences to be resolved in relation to the proposed Convention, including key issues such as definitions. When the precise shape of the Convention is clear, the Government will reflect further on any statutory requirements.

In relation to the National Pensions Reserve Fund, the National Pensions Reserve Fund Commission joined a group of the world's largest institutional investment funds in signing the UN-sponsored Principles for Responsible Investment when they were launched in April 2006. The aim of the Principles is to integrate consideration of environmental, social and governance issues into investment decision-making and ownership practices and, thereby, to improve long-term returns.

As set out in its Annual Report 2006, the Commission's initial focus in its implementation of the Principles is on the development and implementation of a comprehensive proxy voting policy and development of the capacity to engage with the companies in which Fund moneys are invested on environmental, social and governance issues. As implementing a comprehensive voting and engagement policy has considerable resource implications, the Commission decided to contract a third-party service provider to deliver these services. The service was put in place in July 2007 when the Commission announced the appointment of Hermes Equity Ownership Services to execute proxy votes on the Fund's behalf and to engage with companies on environmental, social and governance issues across its worldwide equity portfolio. I have made the Government's position on investments in this area clear to the Pensions Commission.