Australia investing in nuclear arms
A worker sealing drums of yellowcake at ERA’s Ranger uranium mine. Photo by Glenn Campbell Photo: Glenn Campbell
THE federal government’s $74 billion Future Fund is investing Australian taxpayers’ money in foreign companies that make components for nuclear weapons.
Records obtained under freedom of information laws show the fund has $135.4 million invested in 15 companies involved in the design, production and maintenance of nuclear weapons for the United States, Britain, France and India.
About $3.8 million of this is invested in Larsen & Toubro, a Mumbai-based company involved in building a fleet of nuclear-armed submarines for India. The company has also helped test a launch system for India’s nuclear missiles.
Any investment involving the production of nuclear weapons for India is particularly controversial because New Delhi is not a signatory to the nuclear non-proliferation treaty.
The Future Fund has also invested taxpayers’ money in global defence industry behemoths Boeing, BAE Systems, Northrop Grumman and Thales, all of which are involved in the manufacture of nuclear missiles for the US, Britain or France.
The revelations come weeks after the fund was forced to disclose that it had invested in companies that produce cluster bombs, which have been widely condemned for their indiscriminate effects and dangers they pose to civilians.
The Future Fund was set up in 2006 with the proceeds of Telstra’s privatisation to cover the Commonwealth’s superannuation obligations in coming years. Its board is appointed by the Treasurer, but is independent of the government.
Its policy is to invest only in companies ”whose economic activity is legal in Australia and does not contravene international conventions to which Australia is a signatory”.
A fund spokesman told The Age it had divested its holdings in cluster munitions and landmine makers because the weapons were banned under an international convention.
But he said the investments in nuclear weapon component makers did not contravene the nuclear non-proliferation treaty because signatories to the treaty are permitted to arm themselves with nuclear weapons.
”We’ve got no plans to divest those holdings. Our view is that conventions dealing with nuclear weapons are focused on non-proliferation, and we’re not aware of any companies involved in acts that are prohibited by the non-proliferation frameworks,” he said.
”The board’s view is that conventions dealing with land mines and cluster munitions are focused on the universal prohibition of certain weapons. In contrast, the emphasis in regard to nuclear weapons under the non-proliferation treaty framework and associated frameworks such as the South Pacific Nuclear-Free Zone is on non-proliferation.”
But activists from the International Campaign to Abolish Nuclear Weapons claim the investments contravene the fund’s policy because the manufacture of nuclear weapons is illegal in Australia. ”The Future Fund has a policy not to invest in activities that would be illegal in Australia and it’s absolutely clear that it would be illegal in Australia to do what these companies are doing,” the group’s Tim Wright told The Age.
"For the fund to be saying it’s not inconsistent with their investment policy is completely wrong.”
The group also claims the fund might be contravening the Australian law that prohibits assistance to anyone involved in the ”manufacture, production, acquisition or testing” of nuclear devices both inside and outside Australia.
And it argues that the investments contravene the spirit of the international convention, which calls on nuclear weapons states to pursue ”good faith” action on disarmament.
”Conducting simulated nuclear tests and building new nuclear-tipped missiles and nuclear-armed submarines, which will mean that nuclear weapons are around for many more decades, are contrary to this good-faith obligation,” he said.
Earlier this month, the Future Fund disclosed it had sold out of 10 munitions companies before Australia this year ratified the 2008 Convention on Cluster Munitions.
The Future Fund had $239 million invested in defence manufacturers at December 31, according to a report by Bloomberg News based on an investment profile obtained through a freedom of information request.
- Date
Australian Yellowcake
A worker sealing drums of yellowcake at ERA’s Ranger uranium mine. Photo by Glenn Campbell Photo: Glenn Campbell
THE federal government’s $74 billion Future Fund is investing Australian taxpayers’ money in foreign companies that make components for nuclear weapons.
Records obtained under freedom of information laws show the fund has $135.4 million invested in 15 companies involved in the design, production and maintenance of nuclear weapons for the United States, Britain, France and India.
About $3.8 million of this is invested in Larsen & Toubro, a Mumbai-based company involved in building a fleet of nuclear-armed submarines for India. The company has also helped test a launch system for India’s nuclear missiles.
Any investment involving the production of nuclear weapons for India is particularly controversial because New Delhi is not a signatory to the nuclear non-proliferation treaty.
The Future Fund has also invested taxpayers’ money in global defence industry behemoths Boeing, BAE Systems, Northrop Grumman and Thales, all of which are involved in the manufacture of nuclear missiles for the US, Britain or France.
The revelations come weeks after the fund was forced to disclose that it had invested in companies that produce cluster bombs, which have been widely condemned for their indiscriminate effects and dangers they pose to civilians.
The Future Fund was set up in 2006 with the proceeds of Telstra’s privatisation to cover the Commonwealth’s superannuation obligations in coming years. Its board is appointed by the Treasurer, but is independent of the government.
Its policy is to invest only in companies ”whose economic activity is legal in Australia and does not contravene international conventions to which Australia is a signatory”.
A fund spokesman told The Age it had divested its holdings in cluster munitions and landmine makers because the weapons were banned under an international convention.
But he said the investments in nuclear weapon component makers did not contravene the nuclear non-proliferation treaty because signatories to the treaty are permitted to arm themselves with nuclear weapons.
”We’ve got no plans to divest those holdings. Our view is that conventions dealing with nuclear weapons are focused on non-proliferation, and we’re not aware of any companies involved in acts that are prohibited by the non-proliferation frameworks,” he said.
”The board’s view is that conventions dealing with land mines and cluster munitions are focused on the universal prohibition of certain weapons. In contrast, the emphasis in regard to nuclear weapons under the non-proliferation treaty framework and associated frameworks such as the South Pacific Nuclear-Free Zone is on non-proliferation.”
But activists from the International Campaign to Abolish Nuclear Weapons claim the investments contravene the fund’s policy because the manufacture of nuclear weapons is illegal in Australia. ”The Future Fund has a policy not to invest in activities that would be illegal in Australia and it’s absolutely clear that it would be illegal in Australia to do what these companies are doing,” the group’s Tim Wright told The Age.
"For the fund to be saying it’s not inconsistent with their investment policy is completely wrong.”
The group also claims the fund might be contravening the Australian law that prohibits assistance to anyone involved in the ”manufacture, production, acquisition or testing” of nuclear devices both inside and outside Australia.
And it argues that the investments contravene the spirit of the international convention, which calls on nuclear weapons states to pursue ”good faith” action on disarmament.
”Conducting simulated nuclear tests and building new nuclear-tipped missiles and nuclear-armed submarines, which will mean that nuclear weapons are around for many more decades, are contrary to this good-faith obligation,” he said.
Earlier this month, the Future Fund disclosed it had sold out of 10 munitions companies before Australia this year ratified the 2008 Convention on Cluster Munitions.
The Future Fund had $239 million invested in defence manufacturers at December 31, according to a report by Bloomberg News based on an investment profile obtained through a freedom of information request.
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