New Plymouth Mayoral Candidates Split Over Investment in Israel

As discussions around a potential peace deal in Gaza intensify, candidates vying for the mayoralty of New Plymouth are divided over the district’s investments in Israeli settlements deemed illegal under international law. The New Plymouth District Council (NPDC) currently holds shares in companies linked to these settlements, including two of Israel’s largest banks.

The council’s investments are managed by Mercer, a US financial advisor overseeing the Perpetual Investment Fund (PIF), which is valued at approximately $400 million. This fund operates as a multi-billion-dollar passive investment vehicle, with algorithms determining stock purchases. Consequently, the NPDC has indirect ownership in eight companies identified by the United Nations as supporting the expansion of Israeli settlements in occupied Palestinian territories.

Among the investments are three Israeli banks that provide discounted mortgages to settlers, as well as companies like Motorola’s security division, and travel firms such as Expedia, Airbnb, and Booking.com. At its final pre-election meeting, the NPDC’s Council Controlled Organisations committee expressed a desire to avoid investments in organizations operating in the illegally occupied territories, specifically in the West Bank, East Jerusalem, and Gaza.

In a significant move, the committee voted that the NPDC would ask Mercer to reconsider future investments in companies linked to settlement activities. Although the district’s exposure in these investments is less than $1 million, representing just 0.261 percent of the overall PIF, the shareholdings have raised concerns due to their contradiction of New Zealand’s foreign policy and UN resolutions.

Retiring councillor Bali Haque, who proposed the motion, emphasized the importance of the issue despite the relatively small financial impact. “This is very, very small stuff but it’s important stuff,” he noted, adding that the proposal would not incur additional costs for the council.

Outgoing Mayor Neil Holdom previously blocked calls for NPDC to endorse a ceasefire in Gaza, citing concerns that altering fund management could lead to significant financial losses, estimating potential costs of up to $3.2 million annually—three times the value of the current shares. A council spokesperson indicated that the costs associated with changing fund management remain uncertain, depending on the nature of the changes requested.

Holdom reiterated his opposition to Haque’s motion, arguing that public funds should not be used as a platform for personal political beliefs. In contrast, David Bublitz, the deputy mayor and a candidate to succeed Holdom, supported the plea to Mercer after previously abstaining due to a lack of information on fees. Bublitz stated, “There’s a moral obligation—we need to tell Mercer that if they can move away from investments within the Occupied Territories, they should do that.”

Mayoral candidate Max Brough, affiliated with the Taxpayer Union, opposed the special request to Mercer, expressing confidence in the PIF Guardians’ responsible investment policy already allowing for pressure on Mercer to act responsibly. He remarked, “It doesn’t say exactly what you’re trying to convey but I think it pretty much ticks this off.”

Another candidate, Sarah Lucas, described the situation in Gaza and the Occupied Territories as a moral crisis. “We should pull our money out—even if that comes at a cost,” she asserted. During a recent debate, fellow contender Peter Marra raised the issue of further divestment from companies associated with other conflicts, including Germany’s Deutsche Bank and Barclays in the UK.

New Zealand’s stance on the Israeli-Palestinian conflict is shaped by its support for UN Security Council Resolution 2334, which declares that Israeli settlements in Palestine violate international law. The resolution calls on states and entities to withdraw all recognition and assistance to Israel’s illegal presence in the Occupied Palestinian territory. Last year, the UN General Assembly urged states to ensure their citizens and organizations do not contribute to maintaining the situation created by Israel’s presence in the region.

As the mayoral race unfolds, the candidates’ differing views on these investments reflect broader ethical considerations and the implications of local governance in international affairs. The debate continues to resonate within the community as New Plymouth grapples with its financial practices and moral responsibilities on the global stage.