The Minister of Finance has cautioned that the proposed law by Sinn Féin, which prohibits the State from investing in companies that operate in unauthorized Israeli settlements, might not uphold the constitution. Michael McGrath, in a letter dispatched this week to the Dáil’s business committee, sounded alarm bells over numerous concerns associated with the proposed bill sponsored by Sinn Féin’s spokesperson for foreign affairs, John Brady.
In his written communication to Seán Ó Fearghaíl, the Ceann Comhairle and head of Oireachtas business committee, McGrath stated: “The bill, in its present form, presents numerous constitutional and operational challenges. The Illegal Israeli Settlements Divestment Bill 2023 mandates the National Treasury Management Agency and the Ireland Strategic Investment Fund to divest any stakes they have in businesses listed in the UN’s human rights database of companies that work in unauthorized Israeli settlements in Occupied Palestinian Territories.
McGrath’s letter also highlighted that the State is obliged to make sure constitutional rights are sufficiently defended. He noted that relying solely on the UN list might not be enough to adequately safeguard the affected entities or shield the State from potential legal disputes. He also expressed concerns over whether the law will protect the constitutional right to fair proceedings and if the property rights and reputation of affected parties could be negatively influenced for similar reasons.
Despite the issues raised by the Department of Finance, the request by Sinn Féin to expedite the bill’s progress through the Oireachtas by waiving pre-legislative scrutiny has been accepted by the Oireachtas finance committee. This committee is led by Fianna Fáil member John McGuinness, who is a colleague of McGrath.
However, the business committee, which needs to ratify the decision to forego scrutiny, is now embroiled in a contentious dispute. Opposition members have accused the government in private of attempting to derail the bill by slowing its progress, arguing the waiving of scrutiny is usually just a formality.
The decision to overlook pre-legislative scrutiny was initially tabled before the business committee last week. It was then decided that the request would be addressed at this week’s meeting on Thursday. Yet, the absence of the Ceann Comhairle, who was attending official business in Wales, meant that no final decision was taken.
An adverse response has been incited amongst opposing TDs on the committee to a situation that they privately deem to be highly irregular. Typically, such requests receive automatic authorisation with no debate involved. It’s Mr McGrath’s belief that rigorous examination is critical, alongside the incorporation of further amendments to the legislation to ensure its robustness constitutionally and compatibility with European law.
The difference of opinion within the committee has been dismissed by several members, with others insisting it was a major dispute that became fraught and intense. Some members described it as ‘unprecedented’ and ‘radical’ while another deemed it ‘absolutely scandalous.’ An emergency meeting of the business committee was called for by members from the opposition, which is scheduled for Friday, due to worries that further procrastination could compel the finance committee to initiate the pre-legislative review process.
A proposal by the government to amend the legislation temporarily last year led to its progression being hindered from May the previous year to February of the current year. During that period, Mr McGrath solicited the views of the foreign affairs committee on the proposed laws, which gave varying opinions and suggested that the finance committee was better placed to offer counsel.
It’s purported that Charlie Flanagan, the Fine Gael TD and chair of the foreign affairs committee, was displeased from the start with the referral of the Bill to his committee due to competency concerns. On Thursday, Mr Flanagan claimed that the committee had reviewed the matter and had informed Minister McGrath of their opinion that the foreign affairs and defense committees were not suitable to take the Bill any further.
In his correspondence, Mr McGrath contested that no nation has officially enacted the UN list in domestic law and doing so would result in a substantial policy shift for the State and its relationships with other countries.
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