Palestine Profit Splits New Plymouth’s Would-Be Mayors

Monday, 6 October 2025, 4:18 pm
Article: Craig Ashworth - Local Democracy Reporting

As a potential Gaza peace deal shapes up, New Plymouth mayoral contenders are split over how to handle the district’s investments in Israel’s illegal settlements on Palestinian land. 

New Plymouth District Council has shares in settlement-linked companies including two of Israel’s top three banks. The council didn’t choose the shares: US financial advisor Mercer manages New Plymouth’s Perpetual Investment Fund (PIF) in a multi-billion-dollar passive fund, with computers selecting and buying stocks. 

Via the Mercer fund, NPDC owns small slices of eight companies listed by the United Nations as enabling and profiting from the expansion of Israeli settlements in Palestinian Occupied Territories: 

Three Israeli banks which offer settlers discounted mortgages 
The security arm of Motorola 
Travel companies Expedia, Airbnb, and Booking.com 
French railways multinational Alstom 

At its final pre-election meeting, NPDC’s Council Controlled Organisations committee voted that “NPDC does not wish to invest in organisations doing business in the illegally occupied Palestinian Territories of West Bank, East Jerusalem and Gaza as listed [by] the UN.” 

Mercer would be asked to consider avoiding future investments in settlement-linked companies. New Plymouth’s exposure is less than a million dollars – 0.261 percent of the district’s $400 million PIF – but the shareholdings are contrary to New Zealand’s foreign policy and United Nations’ rulings. “This is very, very small stuff but it’s important stuff,” said retiring councillor Bali Haque, who brought the motion. “There will be no cost to us - this is effectively an advisory.” 

Last year outgoing Mayor Neil Holdom twice blocked calls for New Plymouth to back a Gaza ceasefire. When the controversial shareholdings were revealed last December, Holdom warned a switch to more active management of the PIF nest-egg could cost $3.2 million a year – triple the value of the shares. A council spokesperson said the cost of changing fund management is not known: NPDC’s arms-length PIF Guardians – who deal with Mercer – say it’d hinge on the change demanded. Holdom again opposed Haque’s latest motion, saying his no-vote was to prevent the district’s money becoming “a vehicle for individual political beliefs or ideological preferences.” 

Holdom’s deputy mayor and favoured successor, David Bublitz, voted for Haque’s plea to Mercer after abstaining last year citing lack of information about the fees. Bublitz said the PIF earnings must be maximised to offset rates, but the council should join with other investors to influence Mercer. “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.” 

Councillor Max Brough, the Taxpayer Union-linked mayoral candidate, voted against making the special request to Mercer. Brough said the PIF Guardians’ responsible investment policy already included the ability to lean on Mercer and they should do so. “It doesn’t say exactly what you’re trying to convey but I think it pretty much ticks this off.” 

Outside of the committee, mayoral contender Sarah Lucas said what’s happening in Gaza and the Occupied Territories was a moral crisis. “We should pull our money out – even if that comes at a cost.” “I wouldn’t want to continue creating wealth for this district off the back of what’s been credibly described as genocide.” 

At a recent mayoral debate Lucas was asked about pulling money from Palestine by fellow candidate Peter Marra. Marra advocated further divestment from other conflict-linked companies including Germany’s Deutsche Bank and Barclays in the UK. New Zealand in 2016 co-sponsored UN Security Council Resolution 2334, declaring Israeli settlements in Palestine a violation of international law. 

The resolution obliges states and entities “to withdraw all recognition, aid and assistance to Israel's illegal presence in the Occupied Palestine territory.” Last year the UN General Assembly called on states to ensure their people, companies and entities and authorities don’t “provide aid or assistance in maintaining the situation created by Israel’s illegal presence in the Occupied Palestinian Territory.” 

LDR is local body reporting funded by RNZ and NZ on Air

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