§ Mr. Michael Lathamasked the hon. Member for Kingswood, as representing the Church Commissioners, whether the Commissioners have recently reviewed their policy towards South African investments; what proportion of a company's business has to be undertaken in South Africa before the Commissioners sell their shares in that company; and whether there are any other countries in respect of which a similar policy is followed.
§ Mr. Terry WalkerThe Commissioners regularly review their investment policies including those relating to companies with interests in South Africa. The Commissioners' general policy on investment in that country was reaffirmed in their 1978 annual report which stated that they deliberately refrained from investing in certain types of business which might be held to be open to objection or undue controversy including companies operating wholly or mainly in Southern Africa. The Commissioners believe it would be wrong to define specifically what proportion of any company's business if undertaken in South Africa would require them to consider whether to sell their shares. Provided a company's involvement in South Africa remains clearly short of any reasonable interpretation of "wholly or mainly", the Commissioners' 401W retention of their shares would depend on the company continuing to be a sound investment and the Commissioners being satisfied that the company was pursuing enlightened policies in relation to its black African workers as well as on wider ethical matters. A similar approach would be applied to possible new investments.
The Commissioners' policy with regard to investment in South Africa has not been applied to other named countries. They do, however, seek to apply broadly similar criteria to any investment in companies which carry out part of their business with countries which in varying degrees restrict the religious, political and civil liberties of their people. Because of the complexity of such issues, each situation has to be considered on its merits, but in general the Commissioners would not object in principle to business that is carried out in or with any country, including South Africa, where this is related to legitimate trade or other social purposes of benefit to the local population.