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AN BILLE UM AIRM NÚICLÉACHA (INFHEISTÍOCHTAÍ A THOIRMEASC), 2012
NUCLEAR WEAPONS (PROHIBITION OF INVESTMENTS) BILL 2012 ———————— Mar a tionscnaíodh As initiated ———————— ARRANGEMENT OF SECTIONS Section
1. Short title and commencement. 2. Definitions.
3. Investment of public moneys in nuclear weapon companies. 4. Equity and debt securities.
5. Collective investments and investment products. 6. Derivative financial instruments.
7. Compliance.
8. Register of nuclear weapon companies. ————————
[No. 79 of 2012]
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AN BILLE UM AIRM NÚICLÉACHA (INFHEISTÍOCHTAÍ A THOIRMEASC), 2012
NUCLEAR WEAPONS (PROHIBITION OF INVESTMENTS) BILL 2012
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BILL
5
entitled
BILL ENTITLED AN ACT TO PROHIBIT THE INVESTMENT OF PUBLIC MONEYS IN NUCLEAR WEAPON COM-PANIES AND TO PROVIDE FOR RELATED MATTERS. BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: 10
1.—(1) This Act may be cited as the Nuclear Weapons (Prohibition of Investments) Act 2012.
(2) This Act shall come into operation on such day as the Minister may by order appoint.
2.—In this Act— 15
“components” means components specifically designed for use in nuclear weapons;
“delivery system” means any ballistic system designed to deliver a nuclear weapon from a launch site to a target destination;
“investor” means a person or body responsible for the investment of 20
public moneys owned by a Minister of the Government;
“nuclear weapon” means an explosive device which employs nuclear fission or nuclear fusion to generate explosive force;
“nuclear weapons company” means a company involved in the manufacture, testing or maintenance of nuclear weapons, com-25
ponents or delivery systems;
“public moneys” means moneys provided by the Oireachtas out of the Central Fund, or the growing produce thereof.
3.—(1) Nothing in any enactment that authorises the investment of public moneys shall be taken to authorise any investment, direct 30
or indirect, in a nuclear weapons company.
(2) Notwithstanding any other enactment, an investor, in the per-formance of any function conferred on it by or under any enactment,
Short title and commencement. Definitions. Investment of public moneys in nuclear weapon companies.
Equity and debt securities. Collective investments and investment products. Derivative financial instruments. Compliance.
shall endeavour to avoid the investment of public moneys in a nuclear weapons company.
(3) In pursuing the objective set out insubsection (2)an investor shall have regard to the matters set out in this Act.
4.—(1) An investor shall endeavour to avoid the direct invest- 5 ment of public moneys in equity or debt securities issued by a nuclear weapons company.
(2) Where public moneys are directly invested in a company which is or becomes a nuclear weapons company, the investor shall—
(a) establish to its satisfaction that the company intends to 10 cease its involvement in the manufacture, testing or main-tenance of nuclear weapons, components or delivery systems, or
(b) divest itself of its investment in that company in an
orderly manner. 15
5.—(1) An investor shall avoid investing public moneys in collec-tive investment undertakings or investment products unless, having exercised due diligence, the investor is satisfied that there is not a significant probability that the public moneys will be invested in a
nuclear weapons company. 20
(2) Where public moneys are invested in a collective investment undertaking or investment product which invests these moneys in a company which is or becomes a nuclear weapons company, the investor shall—
(a) establish to its satisfaction that— 25 (i) the company intends to cease its involvement in the
manufacture, testing or maintenance of nuclear wea-pons, components or delivery systems, or
(ii) the collective investment undertaking or investment product intends to divest itself of its investment in 30 the company, and that there is not a significant prob-ability that the collective investment undertaking or investment product will again invest public moneys in a nuclear weapons company, or
(b) so far as possible, taking into account any contractual obli- 35 gation it has assumed, divest itself of its investment in that collective investment undertaking or investment product in an orderly manner.
6.—Nothing in this Act shall prevent an investor from contracting derivative financial instruments based on a financial index. 40
7.—All relevant bodies, including the National Pension Reserve Fund, shall provide a report to the Minister for Finance no later than 31 December in each year confirming they have complied with the matters set out in this Act and informing the Minister of any divestments made, or to be made, in complying with this Act. 45
8.—(1) The Minister for Finance shall by regulations establish and publish a register of nuclear weapons companies, to be known as the Register of Prohibited Investment in Nuclear Weapons Companies.
(2) The Minister shall by regulations provide for companies to be placed on and withdrawn from the Register of Prohibited Investment 5
in Nuclear Weapons Companies.
(3) The Minister shall publish in Iris Oifigiúilthe names placed on and withdrawn from the Register of Prohibited Investment in Nuclear Weapons Companies and shall notify the Office of the Director of Corporate Enforcement and the Financial Regulator of 10
such publication.
Register of nuclear weapon companies.
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AN BILLE UM AIRM NÚICLÉACHA (INFHEISTÍOCHTAÍ A THOIRMEASC), 2012
NUCLEAR WEAPONS (PROHIBITION OF INVESTMENTS) BILL 2012
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EXPLANATORY MEMORANDUM ————————
Purpose of Bill
This Bill introduces a prohibition on investment of public moneys in companies that are involved in the manufacture of nuclear weapons, their components or delivery systems. It seeks to align the investment policies of the Government (in particular that of the National Pension Reserve Fund) with long standing government policy in the area of nuclear weapon disarmament and non-proliferation.
Where public moneys are already found to be invested in nuclear weapon companies or in collective investment vehicles or products that are invested in nuclear weapon companies (or where through a change in circumstances become so invested), the Bill provides for their divestment. It also provides for a register of nuclear weapon companies to be published.
A similar prohibition was enacted in relation to investment of public moneys in companies that manufacture cluster munitions, explosive bomblets or anti-personnel mines (Cluster Munitions and Anti-Personnel Mines Act 2008).
Section 1 — Short title and commencement
This is a standard section providing the short title and commencement provisions for the Bill.
Section 2 — Definitions
This section gives the definitions of the terms used in the Bill. Section 3 — Investment of public moneys in nuclear weapon
companies
This section contains the central provision of the Bill, namely a prohibition on the investment of public moneys in companies manufacturing nuclear weapons, their components or delivery systems.
Section 4 — Equity and debt securities
This section prohibits the investment of public moneys in equity or debt securities issued by a nuclear weapons company. It also provides direction for divestment where public moneys are already invested or become invested in a nuclear weapons company.
Section 5 — Collective investments and investment products This section prohibits the investment of public moneys in collective investments or investment products unless the investor is satisfied that such moneys will not be invested in nuclear weapons companies. It also provides direction for divestment where public moneys are already invested or become invested in collective investments or investment products invested nuclear weapons companies.
Section 6 — Derivative financial instruments
This section establishes that investment in derivative financial instruments based on a financial index is not prevented.
Section 7 — Compliance
This section gives direction on reporting compliance with the Act to the Minister for Finance.
Section 8 — Register of nuclear weapon companies
This section directs the Minister for Finance to establish and publish a register of nuclear weapons companies, regulations for the placement on and withdrawal from said register, and publication of relevant named entities.
Deputy Eoghan Murphy, September,2012.
