MPs send out letter as Israeli government seeks bids for construction of large E1 settlement in West Bank
British finance minister, Bezalel Smotrich, stated that the E1 settlement “practically erases the two-state delusion” by fragmenting territory intended for a future Palestinian state. This settlement plan has faced long-standing delays due to its significant political impact on the two-state solution, which remains the primary peace framework supported by Western nations and Gulf states.
Construction cannot proceed without financing, insurance, and guarantees. One of Miliband’s motivations for acting earlier this month, ahead of the Israeli elections, was to deter UK financial involvement in these tenders or the subsequent construction, in addition to expressing deep concern over the level of settler violence in the West Bank. It has been suggested that he bypassed certain diplomatic advice to act before the elections took place.
The all-party group stated: “The immediate question is what commitments institutions were willing to make while the detailed rules are being developed, and how they would respond when restrictions take effect”. The letter, signed by two Labour MPs, Debbie Abrahams and Andy McDonald, states: “Commitments made now may be difficult to unwind when restrictions commence; the allocation of costs will depend on the contracts and applicable law. We ask boards to consider this interim risk before agreeing new or increased commitments.”
The letter adds: “We ask you to place potential E1 and settlement-related exposure on the board’s agenda and on the risk register, and to reach a reasoned decision on whether the associated sanctions, legal and reputational risk sits within the institution’s stated risk appetite.”
It is argued that postcodes identify the origin of a product, and there is no intent to halt general trade with Israel.
Abrahams said: “We are not asking to pre-empt the law. We are asking boards a question they should be able to answer today: what exposure are you prepared to carry while the sanctions regime is written and on what evidence?”
The all-party group indicated that it plans to release the responses to its letter by 10 October.
