Motion on SIC investments linked to Israel government passed in council chamber

FINANCE officials are to look into any holdings Shetland Islands Council (SIC) has in companies linked to the Israeli government and explore how the local authority could divest from these assets.

It comes after a motion from Shetland South councillor Alex Armitage on the topic was passed at a meeting of the SIC on Monday.

The motion, seconded by Lerwick South member Dennis Leask, said: “Shetland Islands Council notes the recent finding by the United Nations Independent International Commission of inquiry on the Occupied Palestinian Territory and Israel, that Israel has committed genocide against Palestinians in the Gaza Strip.

“Shetland Islands Council instructs the director of finance to investigate the council’s financial holdings in companies linked to the Israeli Government and report back to a subsequent meeting of the Shetland Islands Council with a proposal as to how the council may divest from these assets.”

The council hires fund managers to invest its reserves – which at the end of March were valued at around £374 million – in a bid to gain returns. The council is able to draw funds from these investments for spending.

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Armitage had requested that the Israel motion be heard in an “urgent” manner at a meeting on 24 September but this was turned down, with concerns raised over the demand it could have placed on staff.

Instead it was placed with a meeting of the full council today (6 October).

Convener Andrea Manson, who was chairing the meeting, clarified if the motion purely referred to holdings with companies with links to the Israeli government, and not companies with investments in Israel or with offices there, for example.

Leask, who was a co-signatory to the motion and spoke in the absence of Armitage, said that was correct but “it’s difficult to tie that down specifically”

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He said “similar holdings are held for example where people divest from Russia”.

Leask said he would take the advice of the finance department on that matter.

There was no-one otherwise minded, so the motion – moved by Dennis Leask and seconded by Stephen Leask – passed.

It is understood that the SIC had just over £1 million invested in companies based in Israel, as of the end of last year – though none in companies supplying weapons to Israel.

SIC’s fund managers BlackRock had £322,000 of investments in companies linked to Israel as of the end of December 2024, while one holding in a global equity fund with Baillie Gifford relates to a company listed in the US but headquartered in Jerusalem. This had a value of £758,000 in December.