LEGAL IN CONFIDENCE

SlipstreamNumber:
C11/1969

Minister for Finance and Deregulation

Response to * redacted * (ICAN) on Future Fund Investments in Nuclear Weapons

Timing: Routine.

Recommendation:

That you:

  1. Signthe letter to ** redacted **of the International Campaign to Abolish Nuclear Weapons (ICAN) in response to his correspondence to Government Ministers and Senior Labor Party Backbenchers about the Future Fund’s investments in nuclear weapons.

Key Points:

Correspondence, in the form of emails, from *redacted*were received by Attorney-General, the Hon Robert McClelland MP, the Hon Simon Crean MP and Senator the Hon John Faulkner on 26May 2011 (see Attachment A). *redacted* attached a briefing paper on the Future Fund's investments in nuclear weapons producers and urged the recipients to do everything in their power to encourage the Future Fund to divest from these stocks. On the same day *redacted* issued a Media Release (see Attachment B). *redacted* also wrote earlier in May in similar terms to Mr David Murray AO as Chair of the Future Fund Board of Guardians. *redacted* has also lodged threeseparate Freedom of Information (FOI) requests with the Future Fund Management Agency. In addition he has lodged an FOI request with the Attorney-General’s Department.

  1. Specifically, *redacted*claimed that the Future Fund Board of Guardians was: in breach of Australian legislation and Australia’s obligations under international conventions; not operating consistently with its own investment policies; and behaving in a manner inconsistent with the Government’s policies.
  2. In light of these claims Finance sought legal advice from the Attorney-General’s Department’s Office of International Law(OIL) and the Australian Government Solicitor. **Five lines of text has been redacted ** .
  3. ** 6 and a half lines comprising 3sentences has been redacted ** . ** two lines of text has been redacted ** .
  4. ** a line and a quarter of text has been redacted ** the Government is satisfied that the Future Fund is making investments consistent with Australian domestic law and Australia’s obligations under international conventions.

(a)Legal Services Branch advises that it is important that the content or substance of any legal advice is not released nor even alluded to as this would risk waiving Legal Professional Privilege. It is appropriate to answer a direct question about whether advice has been sought or received but to go no further.

  1. ** redacted **.
  2. The complexity and scope of the legal issues under question and the needto conduct consultations with the Future Fund Management Agency (Agency), your Office and OIL before finalising this response has caused the delay in replying.

Impact on the Budget:

  1. N/A.

Consultation:

  1. The Attorney General’s Department (and through them the Attorney-General’s Office), the Australian Government Solicitor, the Future Fund Management Agency, and Legal Services Branch.

Greg Feeney / Contact Officer: / Alison Bamsey
Assistant Secretary / Job Title/Level: / Assistant Director
Funds / Telephone: / 02 6215 1412
Financial Management Group / RMU Reference: / 11/01562-02
/ /
Penny Wong

LEGAL IN CONFIDENCE

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