Annual ethical review adopted

The Church of Ireland last year withdrew investments in British Aerospace following an ethical review. A report from the church's Representative Church Body (RCB), which the General Synod adopted yesterday, said that "following the sale of the Marconi element of GEC to British Aerospace, the bulk of the latter's activities were perceived to be defence-related".

Archdeacon Gordon Linney of Dublin said this action by the RCB was proof that it did listen.

"Concerns were expressed and action taken. However, in a global economy with vast multinational corporations embracing numerous industries, it is not easy to be as precise as one would wish to be," he said.

In that context, he welcomed the commitment to an annual ethical review and suggested board members should "remain ever vigilant" on the matter.

The RCB report continued: "The investment committee determined that it would not be consistent with the policy adopted in 1998 to continue to hold British Aerospace shares, given that the `major proportion of the focus of business activity' of the company would be in the defence or armaments business (subsequently ordered to be sold).

"This did not imply that the investment committee had particular reservations or concerns about the legitimacy of British Aerospace business operations and/or the proper provision of defence-related equipment for peacekeeping purposes," it said.

The report stated that "an annual review will be carried out and a report made to the RCB in September each year".

In a debate on the report, Mr John Bateman of Down diocese asked the synod to look at other investments to ensure the church was not involved with companies which might be doing damage to Third World economies and the environment. He also referred to businesses "doing social and health damage, such as the tobacco companies".

Proposing the report, the RCB chairman, Mr J.F. Rankin, said the board's capital base was now £385 million, but it was "pertinent to remember that much of this is tied up in specific trusts and not available for general use". Capital investments had increased by £47 million last year, while income had decreased by 9 per cent.

Archdeacon Linney, who seconded the report, referred to government requests to the church to identify surplus housing stock. The Department of the Environment was seeking first option on the purchase of such properties by local authorities, particularly with young people in mind. He said that while it was difficult to assess how much surplus property there was, "we should help if we can".