Smith looks to ban Central Bank from selling Israeli bonds

Labour TD and foreign affairs spokesperson Duncan Smith has introduced Dáil legislation which would ban the Central Bank of Ireland from selling Israeli bonds.

Smith says that the aim of the bill is to “end Ireland’s role in enabling the financing of Israel’s military campaign in Gaza.”

The Dublin Fingal East TD said, “we have all watched in horror as a livestreamed genocide has unfolded in Gaza over the last 21 months. More than 58,000 people are now dead. Ireland should have no role in facilitating this war.”

“Yet, the Central Bank continues to approve the sale of Israeli bonds within the EU, many of which fund this ongoing campaign.”

“The Central Bank has claimed its hands are tied – that it is merely the designated competent authority. But the truth is, under EU law, third-country issuers like Israel get to choose their home member state. Ireland didn’t have to accept this role. By acting as an enabling cog in Israel’s fundraising machine in Europe, our State risks being seen as complicit in genocide.”

Smith said that he was not “satisfied” with responses he had received from government ministers on the issue, saying that there is a “legal and moral” justification to end the practice.

“With pre-legislative scrutiny of the Occupied Territories Bill nearing completion and Ireland having taken the principled step of recognising the State of Palestine, we must go further,” he said.

“Our bill creates that legal basis. Through primary legislation, we can end the Central Bank’s role in approving war bonds issued by occupying powers like Israel.”

The Labour TD said the legislation was crafted following comments from the Governor of the Central Bank, Gabriel Makhlouf, who told the Oireachtas Finance Committee that the bank cannot refuse to approve an Israeli bond prospectus unless there is a national or EU-level law giving it that authority.

“This is about protecting people and standing up for international law. The Bill also ensures that workers who refuse to handle goods from illegal Israeli settlements cannot be dismissed for doing so. Both Ireland and the EU agree that these settlements are illegal and a major barrier to peace. It’s only right that workers acting on that principle are supported,” he stated.

“Our message is clear – Ireland must not be complicit in war crimes. We must show practical solidarity with the people of Palestine and act now to ban the sale of war bonds from occupying powers. I urge all Oireachtas members to back this Bill and help end Ireland’s role in this shameful system.”

The same issue was raised at a recent meeting of Dublin City Council; May’s meeting heard a motion from Green councillor Donna Cooney, which put pressure on the Central Bank to stop issuing bonds to Israel.

Speaking at the meeting, councillor Cooney said, “under Irish human rights laws and as a neutral country, we must not act in any way to facilitate these bonds. These bonds are funding the weapons that are being used to blockade Gaza. The onus is on us all to do all we can to stop this.”

Sinn Féin councillor Daithí Doolan said at the same meeting that the Central Bank “must stop doing Israel’s dirty work.”