Joanna Tuffy (Dublin Mid West, Labour)
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Question 83: To ask the Tánaiste and Minister for Finance if he has given consideration to the implementation of a comprehensive ethical investment code, including but not confined to banning investments in cluster bomb and landmine manufacturers, for the National Pensions Reserve Fund; and if he will make a statement on the matter. [15619/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Under the National Pensions Reserve Fund Act 2000, the National Pensions Reserve Fund Commission controls and is responsible for the investment of the National Pensions Reserve Fund (NPRF). 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 the development of the capacity to engage with the companies in which Fund moneys are invested on environmental, social and governance issues.

In relation to the issue of cluster munitions, it is Government policy to campaign for a complete ban on the use of such weapons 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. I have raised the issue of investing in shares of companies which are involved in the manufacture of cluster munitions with the National Pensions Reserve Fund Commission and the Commission has agreed to exclude companies involved in the manufacture of cluster munitions from the Fund. The Commission is currently in the process of implementing this decision.