Department dismisses calls to divest court funds from tobacco companies

The Department of Justice has shrugged off calls in the Seanad to divest the Courts Service of Ireland’s tobacco-related stocks because of tobacco’s adverse health effects.

Fianna Fáil senator Keith Swanick called on the Department to divest all existing investments and to make no further investments in tobacco companies.

However, minister David Stanton told senators that the Department does not directly control court funds, which are held in trust on behalf of wards of court, minors and other beneficiaries.

Mr Stanton said: “The funds are invested in line with the provisions of the Trustee (Authorised Investments) Act 1958 and subsequent orders.

“In accordance with that Act and based on independent investment advice, the Courts Service invests a proportion of these funds in equities and shares on a passive basis, which means that the funds are invested, in line with FTSE All-World index, across a very wide range of diversified funds in the best interests of the beneficiaries.

“As of 12 November 2016, the percentage allocation within the FTSE All-World index to tobacco stocks was 1.51 per cent.

“The Senator will appreciate that the fund is operated independently of the Department of Justice and Equality and in the best interests of the beneficiaries. The Department has no role in managing or directing investments. It should be noted that court funds are not public funds and are not under the control of the Government.”

He added: “The Department of Justice and Equality understands that ISIF management and the National Treasury Management Agency, NTMA, board’s investment committee are currently reviewing the sustainability and responsible investment policy to examine the potential of adding to the list of excluded investment categories, so as to consider excluding investment in tobacco companies.

“This process is expected to be completed by the end of the first quarter of 2017.”