Jim O'Keeffe (Cork South West, Fine Gael)
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Question 309: To ask the Minister for Foreign Affairs his views on the recent media reports concerning a company's (details supplied) commercial involvement with a person in contravention of EU sanctions on Zimbabwe; in view of these reports, if he is satisfied with the review procedures of the national pensions reserve fund's investments which had included this company; and if he will make a statement on the matter. [40175/09]

Micheál Martin (Cork South Central, Fianna Fail)
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Ireland has worked closely with our EU partners in maintaining a consistent approach to Zimbabwe. The EU operates targeted restrictive measures against individuals and businesses which have supported or participated in the destruction wrought by President Mugabe and his close associates within ZANU PF.

I am concerned at reports of a commercial involvement between the company referred to and a farm which it would appear was seized illegally by the wife of President Mugabe. However, Ireland has no independent means of assessing the extent or directness of the commercial connection referred to. The company concerned confirmed subsequently that it has severed this commercial relationship.

I am advised by my colleague, the Minister for Finance that, with regard to the investment held by the National Pensions Reserve (NPRF) in the company, the NPRF Commission has a policy of engagement with companies where environmental, social and governance issues arise. Engagement is a process whereby shareholders initiate dialogue with the boards and management of a company to seek to address issues of concern. The National Pensions Reserve Fund Commission has appointed Hermes Equity Ownership Services to engage with companies on its behalf across its global equity portfolio. In the light of concerns raised about foreign investment in Zimbabwe, the NPRF has engaged, through Hermes, with a number of companies concerning their activities in that country, including the company referred to by the Deputy. It is important to note that the issues raised concerning Zimbabwe relate not to investments by the Fund in Zimbabwe itself, but to investments in a number of multinational companies which have investments across the globe.

I am also advised that the investment mandate of the NPRF Commission, as set out in section 19 of the National Pensions Reserve Fund Act 2000, provides that the Fund shall be invested so as to secure the optimal financial return provided the level of risk to the monies invested is acceptable to the Commission. The mandate is not qualified by any ethical investment criteria. However, the Minister for Finance has established an Interdepartmental Committee to consider the issue of an ethical investment policy for the NPRF. The Committee is preparing a report which is expected to be finalised shortly.

Ireland will remain engaged, both bilaterally and with our EU partners, to support a return to democracy and the rule of law in Zimbabwe, and an end to the humanitarian crisis and human rights abuses which have had such a devastating effect on its people. It is vital for the future of Zimbabwe that the power sharing government delivers on the promise of reform, and secures for Zimbabwe's people real political freedoms, a return to the rule of law and economic development. Ireland will continue to work with our partners in the international community to encourage progress in these areas.