James Browne (Wexford, Fianna Fail)
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446. To ask the Tánaiste and Minister for Justice and Equality if he has engaged directly with the Courts Service on the appropriateness of its investments in the tobacco industry; if he has discussed this matter with the Minister for Health; and if he will make a statement on the matter. [35042/17]

Charles Flanagan (Laois, Fine Gael)
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As the Deputy may be aware, the High Court has jurisdiction in wards of court matters and management of the courts is the responsibility of the Courts Service, which is independent in exercising its functions under the Courts Service Act 1998.

The courts have a custodial role in relation to funds that are lodged in court pursuant to Court Orders or in compliance with legislative requirements. These funds are not public funds and are held on behalf of persons who are under the protection of the courts and they are invested under the direction of the court. The main primary and subordinate legislation governing the receipt, management and investment of court-controlled funds is as follows:

- Court Officers Act 1926

- The Trustee (Authorised Investments) Act 1958 and the Trustee (Authorised Investments) Orders made thereunder

- The Rules of the Superior Courts

- The Rules of the Circuit Court

- The Rules of the District Court

An Investment Committee was set up in 2002 to oversee the implementation of investment strategies. It comprises members of the Judiciary, a County Registrar, Court Officers, Court Service Officials and independent external members. The Committee is chaired by the President of the High Court. Its role is advisory and its main function is to devise investment policy for the investment of Court funds based on advice from our independent investment advisors, to oversee the implementation of investment strategies, and to ensure compliance with best practice in the management of Court funds.

The Courts Service has informed me that the total value of Court Funds as of 30 September 2016 was €1,675 million and there is a very small exposure to tobacco related equities. The Courts Service has in place a passive investment strategy, which for equities tracks the FTSE All World Developed Index. This index, based on latest available data, has about 1.89% exposure to tobacco stocks. Based on current valuations this represents €8.7 million, or approx 0.5% of the total value of court funds.

The Courts Service has advised that it consulted with their fund managers and that it may not be possible to exclude tobacco stocks from the current fund or index, as there are other investors involved whose agreement would be required to change the investment strategy. The Investment Committee considered this matter earlier this year and was advised it would be expected that any solution would likely result in higher fund management fees for beneficiaries and possibly require a full EU open procurement process to be undertaken. The latter could take between 12 and 18 months to complete.

This matter has been brought to the attention of the Courts Service which continues to review the position as part of the remit of the Investment Committee and I will also ensure that the Minister for Health is aware of the issues. The Deputy will appreciate that the funds are operated independently of my Department in the best interests of the beneficiaries, and my Department has no role in managing or directing investments.