Advanced Research and Invention Agency Bill
Tuesday 23rd March 2021
(3 years, 8 months ago)
Commons ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)
I beg to move, That the Bill be now read a Second time.
I should like to start my remarks by drawing attention to the much-celebrated work of Edward Jenner. I am sure that many of us appreciate his work. He is often referred to as the father of immunology; he was a British physician who created the world’s first vaccine. As I am sure all hon. Members know, he was an apprentice to a surgeon in Chipping Sodbury in the constituency of my hon. Friend the Member for Thornbury and Yate (Luke Hall). Mr Jenner essentially discovered immunisation. When we consider the coronavirus that has devasted our country and the world this year and last year, Jenner’s work takes on a particular resonance.
Thanks to the UK’s historic funding for research and the groundbreaking action of scientists at Oxford University, a British vaccine is once again helping us to return to a more normal life. It has shown us all the incredible benefits that breakthrough science and technology can provide. Building on our country’s proud history of wonderful inventions, I was particularly pleased to announce the creation of the Advanced Research and Invention Agency last month. I am sure that it will play a unique and exciting role in the UK’s research and development system.
The new agency will be characterised by a sole focus on funding high-risk, high-reward research. It will have strategic and cultural autonomy. It will invest in the judgment of able people, and it will also enjoy flexibility and a wide degree of operational freedom. I have spoken with many of our leading scientists, researchers and innovators and their message has been absolutely clear. I am convinced that these features will make ARIA succeed.
The creation of ARIA is part of a concerted action by this Government to cement the UK’s position as a science superpower. With £800 million committed to ARIA by 2024-25, the new agency will contribute extremely effectively to our R&D ecosystem. As set out in our policy statement published only last week, we have to give ARIA significant powers and freedoms and a mandate to be bold. To deliver that, we have introduced the ARIA Bill.
The Bill recognises that funding transformational long-term science requires patience and a high risk appetite. The Bill explicitly states that ARIA may give weight to the potential of significant benefits when funding research that carries a high risk of failure. This freedom to fail is fundamental to ARIA’s model, and the provision will empower its leaders to make ambitious research and funding decisions. When we look back in history, to the 1950s and 1960s, we see that with this approach a US agency called the Advanced Research Projects Agency developed GPS as well as the precursor to the internet.
The Bill will also signal a 10-year grace period before the power to dissolve the agency can be exercised. The agency will be focused exclusively, as I have said, on high-risk research. It requires patience and a laser-like focus as necessary conditions for success.
Aaron Bell (Newcastle-under-Lyme) (Con)
My right hon. Friend is making a strong case and refers to the work of the Vaccine Taskforce. In the past year, we have seen astonishing science conducted at breakneck speed because we have been in a crisis. Does he agree that for ARIA to work we need somehow to harness that sense of crisis and continue to use it in a normal period to get this sort of high-risk and high-reward research out and developed in Britain?
Kwasi Kwarteng
The circumstances in which we have developed the Vaccine Taskforce have been really unfortunate, with this terrible pandemic, but the very thin silver lining around the cloud has been this remarkable vaccine rollout. My hon. Friend is right that ARIA needs to learn from what we have learned collectively from the vaccine rollout.
Our objective is for ARIA to fund research in new and innovative ways. The Bill provides the agency with significant powers that are necessary for it to perform its function.
Daniel Zeichner (Cambridge) (Lab)
The right hon. Gentleman says that the agency is modelled on the American example, but the American example very clearly has a client. Which is the client Department for this Bill?
Kwasi Kwarteng
Forgive me, I did not say that it was modelled on that example. I said that it was inspired, and I referred allusively, in my usual way, to historical precedent. I never said that it was modelled exactly on the American example. I am sure that the hon. Gentleman will make a fuller contribution to the debate.
Let me make some progress. Different funding methods obviously suit different projects. ARIA may seek to use seed grants. It will have inducement prizes. It may make its own investments in companies. All of these different approaches will drive innovation, and that will allow ARIA to target, for example, a Scottish university or a semiconductor start-up in Wales and to ensure that researchers across the UK can contribute to developing the key technologies for tomorrow.
ARIA will also have strategic independence. It will, as I have said, have the freedom to fail; it will have the freedom to take a long-term view and to experiment with new ways of funding the most ambitious research, which experience tells us is a necessary ingredient for some of the best results. A key part of this freedom will be trusting the leadership of ARIA to identify and decide on areas of research with perhaps the greatest potential. The Bill limits the ability for Ministers, as it should do, to intervene in ARIA’s day-to-day operations or to direct funding decisions. Instead, ARIA will have a highly skilled team of leadership programme managers who, supported by the board, will ensure strong strategic oversight over the portfolio of programmes. As the Bill makes clear, ARIA must have regard to the benefits of that research to the UK—to the people of this country—in terms of not only economic growth but trying to ensure that innovation can improve the quality of life of all our fellow subjects.
Our response to coronavirus as a nation has shown that agility is crucial in funding research in this fast-moving world. All of this work builds on action already taken by the Government and by UK Research and Innovation to reduce unnecessary bureaucracy in the wider ecosystem. We have learned from agencies such as DARPA in the US—the hon. Member for Cambridge (Daniel Zeichner) will be pleased to learn that—which has shown that we need to go several steps further in creating a culture that is primarily focused on pursuing high-risk research. There is a cultural need in such an organisation for autonomy and a measure of dynamism, which can be achieved through exceptional leadership and, perhaps most importantly, through a flat, streamlined structure.
ARIA will benefit from being a small and nimble agency. It will create a unique environment for its programme managers to be completely focused on their particular research proposal. The Bill therefore provides ARIA with some additional but proportionate freedoms, which are not generally found in the rest of our system. For example, it exempts ARIA from public contracting rules. That will allow ARIA to procure R&D services and equipment relating to its research goals in a similar way to a private sector organisation. To ensure that that process is transparent, it sits alongside a commitment in the Bill to audit ARIA’s procurement activities.
In order to further this research-intensive culture, ARIA has been given extensive freedoms. However, we will ensure, as the Bill does, that the organisation submits a statement of accounts and an annual report on its activities, which will be laid directly before Parliament. Those commitments to transparency will sit alongside the customary and necessary scrutiny by the National Audit Office.
It is clear that ARIA will be a unique and extremely valuable addition in our research landscape. It will create a more diverse, more dynamic and creative funding system, which will ensure that transformative ideas, wherever they may come from, can change people’s lives for the better.
I am very conscious that there is a huge amount of interest in this debate on the Back Benches on both sides of the House. I have committed myself not to go on for two hours or whatever the customary length of time might be. Having been a Back Bencher myself, I know that it is often frustrating to hear Front Benchers trench on parliamentary time. As a consequence, I hope that hon. and right hon. Members will agree that, as we build back better, we can have a full debate today about the merits of ARIA and its necessary existence. I hope that the Bill will show the Government’s strong commitment to building on a wonderful research base. On that basis, I commend the Bill to the House.
Madam Deputy Speaker (Dame Eleanor Laing)
This is an opportune moment for me to give notice to people who are hoping to speak in the debate—those here in the Chamber, but particularly those at home who perhaps might not pick up the atmosphere and be tempted to do the opposite of what the Secretary of State has just said by taking rather longer than they ought to take. I am going to try to run this Second Reading debate without a formal time limit, in the hope that Members will act reasonably and unselfishly towards their colleagues, and keep their speeches to about five to six minutes, or less. I say this particularly to people who are at home, because I cannot nod to them or grimace at them to let them know when they have spoken for too long. Five minutes would be just about right for everyone who wishes to speak to have the opportunity to do so.
Edward Miliband (Doncaster North) (Lab)
Let me start by saying that across the House we share the admiration for British science. It is one of our most brilliant national assets, employing nearly 1 million people directly and generating extraordinary value for our country. As the Secretary of State eloquently said, the work on vaccines has been truly remarkable. We commend our scientists and everyone involved for their work. Indeed, I hope the Secretary of State will not mind my saying that it is a successful example of an industrial strategy; the right hon. Member for Tunbridge Wells (Greg Clark) probably shares my view.
I turn to the details of the Bill. I should say from the beginning that we support the Bill; we have some issues with it, but we certainly support its aims. I just want to say something about the wider context, because I found it slightly remarkable that the Secretary of State did not mention the fact that we are two weeks from the start of the next financial year but the scientific community does not know its budget, and the Government appear to be contemplating significant cuts to its programmes.
The Secretary of State said last week to the Science and Technology Committee, which is chaired by the right hon. Member for Tunbridge Wells, that the Government
“are talking the talk of a science superpower…but…we also have to walk the walk.”
Quite. We support the intent of the Advanced Research and Invention Agency, but hon. and right hon. Members across the House should be aware that while the ARIA budget is £800 million over this Parliament, UK Research and Innovation’s annual budget is £9 billion. Last week, UKRI published a letter confirming that the BEIS official development assistance allocation will lead to a £120 million gap between its allocation and the commitments that it has already made. It warned of cuts coming on that scale, and the House should be aware of where those cuts are going to be. Potential areas include climate change, antimicrobial resistance, pandemics, renewable energy and water sanitation. Those are the kinds of things that that funding addresses. Mr Cummings was also at the Select Committee meeting—I will return to him shortly—saying that ARIA would solve the problems of civilisation. That is all very well, but I fear that these cuts seem to be coming right here, right now; and we cannot launch a successful moonshot if we cut off the power supply to the space station.
The other fear that we have is that the threat of cuts does not end there, because there is no clarity on how to cover the huge cost of the UK’s ongoing participation in Horizon Europe programme. To be clear, this programme used to be funded not from the science budget, but from our EU contributions. I say to the Secretary of State that it surely cannot be right to take money from the science budget to fund our participation. He will know that there is real fear in the scientific community about that.
I will give the Secretary of State the chance to intervene: does he not agree that cutting the science budget to fund Horizon would be exactly talking the talk but not walking the walk? I will happily give way to him if he wants to tell us. Maybe he can tell us when we will get clarity—when will the scientific community get clarity on how the Horizon money will be funded? He does not want to intervene, but the science community deserves clarity. We support ARIA but it deserves clarity. These are people’s jobs. This is incredibly important work and I hope he is fighting with his friends in the Treasury as hard as he can to give people that clarity and avoid the cuts.
Kwasi Kwarteng
The right hon. Gentleman will know from his years in government—appreciably, many years ago now—that these conversations with the Treasury are ongoing, and we hope to get a satisfactory result.
Edward Miliband
We shall look forward to the Secretary of State getting a satisfactory result. I am not sure that I always got a satisfactory result with the Treasury, although I was in the Treasury at one point, at least as an adviser. This is very important and, as I say, people’s jobs and livelihoods and the scientific base of this country, of which we are all so proud, depend on it.
Let me come to the Bill, which we support. The Bill is important—the Secretary of State said this—because there is incredible work going on in the scientific community, but there is consensus that there is a lack of a mechanism to identify, build and fund truly ambitious, high-risk, high-reward programmes. We recognise the case for an independent agency that operates outside the established research funding mechanisms, but we feel that the Bill requires improvement.
I guess our concerns cohere into a different view about the role of Government and the lessons of DARPA, which my hon. Friend the Member for Cambridge (Daniel Zeichner) talked about, on which in some broad sense—maybe not in the Secretary of State’s mind, but in others’ minds—ARIA is modelled. It is impossible to ignore what we might call the spectre of Dom in this debate. He was at the Science and Technology Committee—chaired by the right hon. Member for Tunbridge Wells—and he does rather hang over this Bill. He is its sort of governmental godfather. In his telling, DARPA’s success—I think this is important—is simply because the Government got out of the way and let a bunch of buccaneering individuals do what they liked. It is definitely true, as I understand it, that DARPA has important lessons about the need for the culture that I talked about, including higher reward and, of necessity, a higher chance of failure, but it is simply not true that DARPA was somehow totally detached from Government. DARPA had an obvious client—the Department of Defense—a clear mandate around defence-related research, a clear synergy in its work with the procurement power of the US DOD and, incidentally, abided by laws on freedom of information.
I want to suggest that there are two different views about ARIA: one is that we should let the organisation simply do what it wants, relying on the wisdom of a genius chair and chief executive; and the other subtler and, in our view, more sensible approach—one more consistent with the lessons of DARPA—is that Government should set a clear mandate and framework for ARIA and then get out of the way and not interfere with its day-to-day decision-making. I also believe there is a democratic case, because the priority goals for the spending of £800 million over this Parliament should be driven by democratic choices; not about the specific items that it funds, but about the goals and mission.
That takes me to the three points that I want to make: first, about the mandate for ARIA; secondly, about its position in the wider R&D system; and thirdly, about accountability. I will try to emulate the Secretary of State’s brevity—perhaps not exactly his brevity, but as much as I can.
The deputy director of DARPA says about its success that
“having national security as the mission frames everything.”
The Secretary of State said to the right hon. Member for Tunbridge Wells at the Science and Technology Committee:
“If I were in your position, I would be asking what the core missions of ARIA are.”
I think the point that Dominic Cummings made, or I am sure would have made, is that this will be a job for the people we hire who are running the organisation. The Secretary of State went on:
“It will be up to the head of ARIA to decide whether he or she thinks the organisation should adopt what the innovation strategy suggests…or reject it.”
I really understand the wish to give freedom to ARIA, but surely it is for Government to shape and not shirk the setting of priorities, and it is not just DARPA where we can learn that lesson. Moonshot R&D—the Japanese agency established in 2019 to fund challenging R&D—has seven specific moonshot goals set by the Japanese Government, and my understanding from the evidence taken by the Science and Technology Committee is that the UK scientific community agrees with that idea.
I notice the hon. Member for North East Bedfordshire (Richard Fuller) putting his head in his hands. He has done that before when I speak, but let me just make this point in seriousness: £800 million is not in the scheme of things a huge amount of money, certainly when compared with UKRI’s budget. The concern is that unless, as the Select Committee said, ARIA focuses on a single or a small number of missions, it will dilute its impact.
Take the net zero challenge. I believe it is a challenge of political will and imagination, but it is also a technological challenge. If it is the No. 1 international challenge, as the PM said last week, and if it is the No. 1 domestic challenge, as I think it is, why would it not be the right mandate for ARIA for at least its first five years? Indeed, Professor Richard Jones and Professor Mariana Mazzucato, who perhaps have even greater claims than Dom to being godfather and godmother of this idea, said that climate change would be an ideal challenge on which an agency such as ARIA would focus. To be clear, providing a mandate does not mean micro-managing decisions, and it would be grossly simplistic to suggest otherwise.
Richard Fuller (North East Bedfordshire) (Con)
The right hon. Gentleman tempts me to my feet, first, because I think he does a tremendous disservice to Dominic Cummings. Without his inspiration, this Bill would not be before this House. Secondly, I do not know whether the right hon. Gentleman is aware of the chart that Mr Cummings showed while giving evidence to the Select Committee. It showed a large circle of areas with potential for people to investigate and a smaller segment of that, which is where all of the foreign Governments and our Government focus their research, precisely because they are driven by the political decisions, frameworks and missions that politicians set. Does the right hon. Gentleman not think there is some opportunity for us to do something slightly different and without the sticky fingers of Government interfering?
Edward Miliband
The hon. Gentleman and I have a respectful disagreement on this: I think it is for the Government of the day and this House to say what are the massive national priorities. Then it is for an organisation such as ARIA to fund the research in the high-risk, high-reward way that I mentioned. That is simply a difference of view. Without a clear policy mission, we risk a fragmented approach.
I will make this other point, which is that the chair and chief executive will be in the somewhat unenviable position of having to decide which Government Departments to prioritise. Of course they can work with different Departments, but let us set a clear challenge for the organisation.
The second point is not just about the question of mandate, but how it sits in the life cycle of technological innovation and how it works with other funding streams. ARIA is born of a frustration about the failure to fund high-risk research. We do not disagree with that thinking, but that makes it especially important that it does not duplicate the work of existing funding streams. Let me give an example. Innovate UK, part of UKRI, is supposed to be a funding stream to turn ideas into commercially successful products. I do not know from reading the Government’s statement of intent what Innovate UK would fund that ARIA would not and what ARIA would fund that Innovate UK would not.
The vagueness of the mandate for ARIA is matched by vagueness about where in the innovation cycle it sits. I was not doing Mr Cummings a disservice on this score by the way, because I support the Bill, but he said to the Select Committee:
“My version of it here would be…to accelerate scientific discovery far beyond what is currently normal, and to seek strategic advantage in some fields of science and technology…I would keep it broad and vague like that.”
He went on to say that he would say to the agency:
“Your job is to find people…with ideas that could change civilisation completely”.
I am sorry, but that is too vague, and I do not believe it unreasonable to say that there needs to be greater clarity about where in the life cycle ARIA sits.
Andrew Griffith (Arundel and South Downs) (Con)
I think the right hon. Gentleman at heart is a secret Cummings-ite, because he is constructing a number of paper tigers to try to find offence with a Bill that he fundamentally wishes his party had thought of first. What possible incentive would a new disruptive ARIA have for trying to replicate the work already being funded by existing councils? It will have access to all of that body of work. What incentive would it have to try to replicate it when it could pursue new, disruptive and exciting opportunities?
Edward Miliband
That just makes the case; if what the hon. Gentleman says is the case, would it not be a good idea, as the former Science Minister Lord Johnson suggested, for ARIA to share information with UKRI, for the two bodies to work effectively together and for the agencies to enter into a memorandum of understanding, which will benefit us all? If it is as easy as that, I am sure that will not be a problem for ARIA. I have been called many things in my time, but a secret Cummings-ite? Perhaps not. I have been called worse things. If it is as simple as that, they should be able to work together, and I hope the Secretary of State will reflect both on the mandate question and on this life cycle question.
Thirdly, let me turn to the issue of Government oversight and public accountability. We believe it is right that ARIA should be given operational independence from Government. As I say, we support the idea of specifying high tolerance to risk and failure. The challenge for public policy is how to establish this tolerance of failure. Obviously it starts with the agency’s leadership, where the Bill is also very vague on what attributes or skills the Secretary of State is looking for. My understanding is that this position is not going to be recruited outside the normal civil service procedures—okay, I think I understand the reasons for that—but it cannot just be decided on the whim of the Secretary of State, brilliant though he is. I hope the Minister will clarify this during the passage of the Bill. There does need to be an answer on who else from the scientific and research community will have a say on the decision and how this person is going to be chosen, given that, in the Government’s own words, they will have
“a significant effect on the technological and strategic capabilities of the UK over the course of generations.”
On freedom of information, we just strongly disagree with the Government. I do not think there is justification for ARIA’s blanket exemption from FOI. The Government say it is necessary for agility. DARPA is subject to the US version of the Freedom of Information Act. The Secretary of State and the Minister might be interested to know that DARPA, in the US, had 47 of these requests last year, so this is hardly an obstacle to getting on with the day job. There is a disagreement here about how we give public confidence. Just saying that everything should be secret does not give public confidence. Accountability matters to the public and we should have confidence that we can defend the approach of the agency. Tris Dyson from Nesta Challenges has said:
“The public will expect to know what’s happening with public money and greater risk requires transparency and evaluation in order to determine what works.”
We also believe there is a role for the Science and Technology Committee in scrutinising ARIA’s role. Perhaps that can be clarified as the Bill progresses.
I am conscious of time, so let me say in conclusion that we face enormous challenges as a society, including new threats from disease, as tragically illustrated by the pandemic, the advent of artificial intelligence and, as I have said, the climate emergency. So the challenges we face are huge, but I believe—I know this is shared across the House—that the ingenuity, know-how and potential of our scientists, researchers and others is as great as, if not greater than, the challenges. If we support them, they can succeed. ARIA can support our scientific research. We support this Bill as a way to add capacity and flexibility to our research and innovation systems. It needs to be done in the right way. On the Bill and what is happening to British science, we will support the Government when they do the right thing but we will also call them out on cuts to science funding, and during the passage of the Bill we will seek to improve it so that it can strengthen our science base and do what is required to help us meet the massive challenges we face as a society.
Greg Clark (Tunbridge Wells) (Con)
It is an honour to speak in this debate and to follow the right hon. Member for Doncaster North (Edward Miliband), and to warmly welcome the introduction of this important Bill. This is an extraordinary time for science, as the Secretary of State and his shadow have made clear. The interest in and standing of science in this country and around the world have never been higher during my lifetime. In a year, we have gone from discovering a lethal new virus to having not just one but multiple effective vaccines against it. That has never been done in the history of science, even going back to Jenner. This is a fantastic time for the House to be backing, as it evidently is, further investment in and progress of science in the UK. For all the horrors of the last year, some of the lessons that can be learned already—for example, the testing of new scientific procedures in parallel rather than in sequence—may, in not too many years’ time, save more lives than have been lost during the last year. We need to reinforce this.
British science is not just exceptional in the life sciences. Whether it is in space and satellites, with 40% of the small satellites in orbit above the Earth today being made in Britain, or the fact that the next generation of batteries are being researched by the Faraday Institution in Oxford, we have in this country so many of the pieces of science and technology that are transforming the world. This is at a time when the Government have made a historic commitment to invest in science. When I occupied the Secretary of State’s position, I was pretty pleased to negotiate out of the Treasury an increase in science funding from £9 billion to £12 billion a year—the biggest increase that had ever been achieved—but this Government have committed to an extraordinary increase to £22 billion a year by the end of this Parliament. That is the important context of the Bill.
For our inquiry, the Science and Technology Committee took evidence from people all around the world, including current and former staff of DARPA, and in our report of 12 February, we welcomed strongly the £800 million being committed to this new institution. Like the Secretary of State and the shadow Secretary of State, we recognise the important contribution that a new body outside the main research and development system could make, benefiting from a different culture. We saw the benefits to be had from transformational research that may be riskier than is commonly funded. The House should expect that quite a lot of the projects undertaken by this agency will fail, and we should not be quick to criticise that, because transformational breakthroughs are usually accompanied by failure on the way, and we need to be used to that.
Our report asked questions that I hope will be clarified as the Bill moves through this House and the other place. The question of what the agency’s focus will be is a legitimate one, if only for the fact that it is easy to dissipate £800 million in so many projects that we do not get the transformation that is in prospect. With that budget, and based on the evidence we took, our Committee recommended that the organisation should have no more than two focal points. The question of whether it should be about blue-sky research and brand-new thinking, without particular regard to the application, or whether it is looking to turn already nascent good ideas into practical applications, should also be clarified.
The role of Ministers and the chief executive, and the choice of the chief executive, will be important. Our Committee found that it is very important that, in pursuing our ambitions for ARIA, which is ultimately 1% of our annual research funding, we do not forget the other 99%, given some of the criticisms of bureaucracy and micromanagement that have been advanced by friends and to which ARIA is the answer. In fact, the founding chief executive of UKRI, Sir Mark Walport, thought that this was a good moment to refresh some of the procedures that it operates under.
Finally, it is important to state that we welcome ARIA because it is in the context of rising science funding. But it is paradoxical that, just at the point that we have the biggest increase by far in science funding and the whole scientific community is rejoicing at this country embarking on a golden age of scientific research, we should unexpectedly have the prospect of cuts to the science budget for the next year or two. To put it into context, the £2 billion subscription to Horizon, which has never been part of the science budget before, would amount to about a 25% cut in UKRI’s budget, and the official development assistance reduction would mean £125 million of cancelled projects.
This Bill reinforces the commitment that the Government and, I hope, the House make to building on the successes of UK and international science. The Secretary of State is a serious and committed advocated of this agenda. He was clear and candid when he appeared before the Select Committee. The decisions are not all in his hands, but I hope that he will continue to battle and, indeed, persuade his colleagues in the Treasury and the Prime Minister so that he can, I hope, have a long and flourishing tenure in his post, presiding over a period for UK science that we will look back on as a decisive acceleration of its potential.
Stephen Flynn (Aberdeen South) (SNP)
It is a pleasure to follow the Chair of the Select Committee on Science and Technology. Like other Members, I tuned in, eyes wide open, to hear what was said. I look forward to further instalments of that show in the month to come, as I am sure others do. I place on record my thanks, as other Members have done, for the fantastic work that has been undertaken by scientists in the UK in relation to the vaccine programme. It is something that unites us all. We all know that it will transform our lives, and we are collectively thankful on that front.
I commend the Secretary of State, as he has achieved something that is quite remarkable, certainly during my short tenure in the House. He appears almost to have united everyone in vague or cautious support for the Bill. On the face of it, it is something that we can welcome, but we have concerns, which I shall come on to, and reservations that need to be addressed in a positive manner, and hopefully the Secretary is willing to do that.
Before I deal with that, I am conscious that for my hon. Friend the Member for Airdrie and Shotts (Neil Gray), who is sitting to my left, today is his last day in the Chamber, and he will make some valedictory remarks. I wish him the best going forward. As everyone in the Chamber will be well aware, all Scottish nationalists do not want to be here. He is getting away a little sooner than the rest of us, but we wish him well, and I am sure that Members across the Chamber do likewise.
Turning, you will be glad to know, Madam Deputy Speaker, to the substance of the Bill, I hope that, while I have made some positive comments, the Secretary of State will forgive me for saying—perhaps I have picked this up wrongly—that his short speech may reflect the fact that the Bill is incredibly vague on details. The first thing to reflect on in that regard is the wider mission of the Bill. That was addressed at length by the right hon. Member for Doncaster North (Edward Miliband) and by the Select Committee in its hearing last week. What is the Bill trying to achieve? Is it health outcomes, defence outcomes or transport outcomes? The clarity is not there. I heard what the Chair of the Select Committee said about having a focus on two issues. That is all well and good, but we do not have those answers yet from the Government. We need them moving forward, because there is a real concern and risk that what we have is something that becomes a jack of all trades, but a master of none. The Committee said that it was
“a brand in search of a product”,
which is entirely apt at this stage.
The right hon. Member for Doncaster North has rather stolen my thunder in that regard, because I want to discuss what the Bill could seek to do. It could follow Scotland’s lead. In Scotland, we have the Scottish National Investment Bank, which has a clear purpose to invest in net-zero technologies. Why do we not replicate that in the Bill? Why do the Government not put that front and centre of their agenda? The hon. Member for North East Bedfordshire (Richard Fuller) is shaking his head, and he is more than welcome to intervene, to state why climate change should not be at the forefront of the Bill’s agenda.
Richard Fuller
I am grateful to the hon. Gentleman for giving me a chance to speak. I want to check that we are talking about the same aspects of the Bill, because he is trying, while saying what he thinks in a broad way, rather narrowly to define the scope of what research science projects can be. Does he not accept that there is a tension there, and that the Scottish example is precisely not what this is about?
Stephen Flynn
I reject the suggestion that climate change is a narrow focus given that climate change covers a whole host of areas. I see the Secretary of State nodding along with that. Presumably he is in agreement having previously been the Minister of State for Business, Energy and Clean Growth. When we look at this, we need to bear in mind DARPA, which has been talked about at length by others. DARPA had that clear focus, and that clear focus has allowed it to excel, in terms of GPS, the internet and the like. We should seek to replicate that, with climate change at the forefront.
It is regrettable that the Government have not simply made that suggestion, but it is not surprising, because, just last week, they sought to invest billions of pounds in new nuclear weapons. They could have said, “Here is £800 million that we are going to invest in trying to save the planet rather than destroy it.” In relation to the mission, therefore, the Secretary of State still has a great deal of work to do.
The second key area that I would like to pick up on is in relation to the wider leadership on the Bill. Although that has been referred to already, we do need to have clarity about how that process will work. What will be its outcome? Who will be the leader, or the leadership team, that takes this forward? There have been suggestions, indeed by Dominic Cummings himself, in relation to eminent scientists—scientists who, unfortunately, have been excluded from their professional role given the comments that have been made in relation to eugenics and race. Although I appreciate that the Secretary of State may not be in a position to say what the qualifying criteria will be for someone who takes on this role, I expect him to say what the disqualifying criteria will be. I certainly expect that someone who projects views of eugenics would fit into that disqualification category.
My third point relates to resources and accountability. I am very conscious of the fact that much of what I am saying is a repetition of what has already been said, but that is often true of what is said by everyone in this House, and I am sure that there will be more of that to come. I cannot get my head around this notion that we can throw away freedom of information and public contract processes in order to achieve something. I may have incorrectly picked up the hon. Member for North East Bedfordshire (Richard Fuller) on that point he made earlier about being inspired to do that. I do not see it as inspired. I do not think that the public will see it as inspired. They certainly will not see it as inspired coming, as it does, from a Conservative Government, given what we have seen over a number of months in relation to cronyism and the concerns that we all have about that. When it comes to public money, public trust is of paramount importance. Frankly, the Government are not being as clear, transparent and open as they should be about the Bill.
Aaron Bell (Newcastle-under-Lyme) (Con)
Is the hon. Gentleman aware that UK Research and Innovation receives about 300 FOI requests a year? A small and nimble organisation such as ARIA would be completely buried under the weight of that many FOI requests. That is why we are taking the approach that we are here.
Stephen Flynn
That is an interesting point, but it appears that the hon. Gentleman was not listening to what was said earlier in relation to DARPA. I think it was 40 FOI requests for DARPA, which is, obviously, a much larger organisation than ARIA will ever be. It is one that will perhaps attract a lot more focus, and yet there were just 40 FOI requests. If that is the strength of the argument that Government Back Benchers will put up in relation to this, then, frankly, it will fall short in the eyes of the public. The reality is that we are talking about £800 million of public money. There will of course be a tolerance of failure. Everyone accepts that there must be a tolerance of failure, but there needs to be openness and transparency around the process, and, quite frankly, at this moment in time, there is not. I do not have confidence that the Government will be able to deliver on that front.
Finally, I just want to touch on what is perhaps the most important aspect of this Bill, which is, unsurprisingly, in the Scottish context. A total of £800 million will be flowing towards this project. How much of that is coming to Scotland? Will it be Barnettised? Will there be consequentials from it? Is this going to be a UK-wide project? If so, why? Why are we not investing in Scotland? Are we trying to undermine the Scottish Parliament once again? We have seen it with the United Kingdom Internal Market Act, the levelling-up fund and the shared prosperity fund; are we now seeing it with ARIA, too?
Why do the Government not seek to invest in the Scottish Parliament? Why do they not seek to allow the Scottish Government to put the money into the Scottish National Investment Bank, which I have already mentioned, so that Scotland can create the scientific achievements that it wants to use to shape our own agenda, particularly—I repeat—in relation to climate change? Why have none of those things come forward? It appears as though Scotland does not exist in the context of this Bill. The Government seek to talk up the Union; the way to solidify the Union is not to trample continuously over the Scottish Parliament, because the people of Scotland are well aware of what is going on in that regard.
Let me conclude by making one more important point. We all have concerns about the Bill. It has broad support, but we have concerns that ultimately it will become another London-centric project, and not only that but one that gets hijacked by the right wing of the Tory party for its own ends. That is not something we are willing to support.
Stephen Metcalfe (South Basildon and East Thurrock) (Con) [V]
I am grateful for the opportunity to contribute to this important debate on the creation of the Advanced Research and Invention Agency.
As they say, necessity is the mother of all invention, and that necessity has never been greater as we try to build back better following the huge consequences of the pandemic. It is fitting that we should hold this debate today, as we mark the one-year anniversary of the lockdown. As well as looking back over the past year, the Bill gives us an opportunity to look forward.
Before I look forward, I want to look back at the incredible contribution that UK scientists have made to scientific endeavour and their list of achievements. Over centuries, the UK has been responsible for many great discoveries and inventions—from the first refracting telescope in 1668 to the discovery and understanding of DNA, and from the humble tin can to the jet engine. Probably the most poignant today is, as we have already heard, the development of the first vaccine more than 225 years ago in 1796. That discovery is helping the UK and the world to tackle the ravages of covid today.
UK research and the work of UK scientists have truly led to inventions that are potentially saving the world. But we cannot rest on our laurels, which is why I welcome the Government’s ongoing commitment to science and research and development. I welcome this debate and the meeting of our manifesto commitment to establish a high-risk, high-reward research agency, ARIA.
With your permission, Madam Deputy Speaker, I wish to talk a little about the wider R&D landscape. I warmly welcome the Government’s ongoing commitment to making the UK a science superpower. Their commitment to spend 2.4% of GDP on R&D by 2027 and the £22 billion commitment to science in 2024-25 are fantastic but, as we have heard, there is no point in our making progress in one area if we are taking funds from another to do that. I will not labour the argument about funding for our participation in Horizon Europe, but needless to say I would like to see that money coming from a different pot rather than the existing ones.
Let us talk about the positives and the investment of £800 million in a new advanced research and invention agency, based on the principle of high risk and high reward and free from Government interference. To make the most of that, we have to change our view of risk. Risk here is good. That requires us to acknowledge—indeed, to embrace—failure as part of the process.
For the agency, that is fundamentally about people. It is about having top-quality, confident and knowledgeable people in the right places—the right chair and the right chief executive. It is also about having a command structure that is fleet of foot, which is why I think some of the measures in the Bill to exempt ARIA from FOI are the right thing to do.
ARIA needs to encourage and embrace new and novel ideas in the areas of artificial intelligence, quantum and, potentially, superconductivity. I accept that some of its endeavours, if not many of them, will fail, but even where there are failures, I still want its culture to be one of encouraging future submissions—a culture where project managers are not judged on individual outcomes that encourage them to play safe.
ARIA should be judged as a whole, and only after a reasonable time. It should work with both the usual suspects—the established research bodies—and potential sectoral disrupters. If we are searching for inventions, ARIA also needs the ability to work with individuals who may have promising ideas but not necessarily the resources or experience to make them work. ARIA has a role there to help people find the right development path.
While there will be failures, I am sure there will be many successes, so I would like to hear more about how a successful ARIA-funded project will make the transition from lab bench to product or service. The UK has a great track record of innovation and invention, but we do not have the best track record of commercialisation—of turning an idea into an industry that keeps the rewards here in the UK and provides our citizens with well-paid, rewarding jobs.
ARIA needs to help research to cross the so-called valley of death, and it needs to be alive to that challenge. It needs to work with ideas to ensure that they do not fail due to a lack of funding, support or interest. If an idea is novel enough that it has potential, ARIA needs to support it until it can hand it off in the confidence that it will be in safe hands and that it will thrive. There is no point having taxpayer-funded research or invention only for it to fail through lack of practical support.
I welcome this Bill. The creation of ARIA gives us a fantastic opportunity to fill a gap in the current landscape, and I very much look forward to working with Ministers as we take the Bill forward and reap the benefits that it can provide us with.
Daniel Zeichner (Cambridge) (Lab)
It is a real pleasure to follow the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe). Anyone who has attended the annual STEM for Britain event hosted by the Parliamentary and Scientific Committee, which he chairs, will know that we are a country not short of brilliant ideas and young people—and many of them, I have to say, come from Cambridge.
However, that immediately begs the question, is ARIA a solution in search of a problem? As the excellent Science and Technology Committee report put it—I congratulate the right hon. Member for Tunbridge Wells (Greg Clark) and his colleagues on that—is it
“a brand in search of a product”?
We have heard a lot about Dominic Cummings. I just caution Government Members that they may not want to associate themselves too closely with a man who, in the public’s mind, is very much associated with one set of rules for some and a very different set of rules for them. Many will wonder why a vanity project designed to assuage the ego of one key adviser is being pursued by the Government when they have finally had the sense to ditch that adviser—or was it that he ditched them? Who knows? We will be generous, and I will ask an open question: can we do better?
Of course, our answer as a country is always yes, but if this is really about setting people free—and who does not want to cut the bureaucracy and set people free?—is it not curious that just yesterday, the Government announced a review, to be led by Professor Adam Tickell, the not “bog-standard” vice-chancellor of the University of Sussex, of the whole issue of bureaucracy in our research sector? I suggest that there is muddle, not least around the problem we are trying to solve.
Could we do better? The landscape of research funding is complex. UKRI is a relatively new organisation, but there are some long-established principles in this country—the Haldane principle, dual funding and QR, or quality-related research funding. Add Horizon, and there is a balance in there. Add the catapults launched a few years ago under the coalition and the result, if we are not careful, is lots of people competing for the same funding. It is not simple, and it is frequently a subject of discussion in Cambridge, as I am sure the House can imagine. To be frank, in Cambridge the general view is that the issue is not finding the breakthrough ideas, but how they are developed and taken forward, as the hon. Member for South Basildon and East Thurrock just said.
Sadly, we have very few home-grown unicorns like Arm, although we have done better over the past 30 years because we have a strong investor community in Cambridge and real efforts are made through organisations such as Cambridge Enterprise to develop our spin-outs. Thoughtful contributions have been made by entrepreneurs such as David Cleevely, who rightly pointed out throughout the Cameron-Osborne years, when they were promoting Tech City in London, that we already have a tech city; it is called Cambridge and it is just up the railway line, along a powerful innovation corridor that has huge potential.
There are other powerful voices who identify a very different problem from the one that it is suggested ARIA might address. Take David Sainsbury and David Connell. Lord Sainsbury is a highly regarded former Science Minister; look at the work he did a few years ago on economic growth, in which he cautioned—sensibly, in my view—against trying to import systems from elsewhere and expecting them somehow to work in a different culture. He also rightly queried the lack of co-ordination of research across Government Departments —an issue that I suspect is yet to be seriously addressed. David Connell has been a passionate advocate over many years of small business research initiatives—something we have adopted and adapted from the Americans—and of using contracts rather than grants and driving innovation through procurement. That idea has too limited an uptake, I would say, and needs a stronger champion in Government. Is DARPA really a model for the UK? Well, the US has an infamous military-industrial complex and we have nothing similar here. Who will be the client? The Secretary of State seemed to be touchy about this, but whether it is learned from, not modelled on, is a key question.
The obvious question about whether the current system can be reformed to address some of these concerns is also not answered, and some of the potential problems have been made worse by decisions the Government have already taken, or sort of taken. Reference has been made to the disappearing industrial strategy, which must be rather galling for the right hon. Member for Tunbridge Wells, given the effort that he and others put in and the huge amount of work done across so many sectors. What is to replace it? Perhaps the Minister can tell us later. Perhaps it is nothing, but the mission-oriented approach that ARIA points to and is widely welcomed replaces, frankly, something remarkably similar. As we have heard, the great challenges are not that different, but for iconoclasts, of course, everything that went before has to be laid to waste. Not a very British approach, I would say. What is very British is the tradition of paying public servants badly. If ARIA can free up pay levels, good, but it really does not need an ARIA to do that, so stop making a song and dance about it; get on and do it.
All this is important because we have excellence. How ironic that the Government have turned a potential good-news story into a story about cuts. As we have heard, Universities UK estimates that if the cost of Horizon association is taken out of UKRI, it will cost 18,000 research jobs. That would certainly be a big hit to cities like mine. At the weekend, Stephen Toope, the University of Cambridge’s vice-chancellor, warned that Government claims about global Britain risked ringing hollow. As he says,
“World-leading research cannot just be turned off like a tap. Once our highly trained young researchers leave our universities they will not come back, and once they leave the country they will not return.”
He is so right. I visit many labs in and around Cambridge—the magnificent Laboratory of Molecular Biology being just one of them—but what strikes anyone who goes into any of them is that it is an international microcosm, with people from all across the globe. We are good because good people want to be here, but they can always go somewhere else. I tell the House, there are plenty of people who want them and plenty of inducements. Then there are the ODA cuts—so foolish, for so many reasons, not least the threat to our diplomatic soft power at a time when China is ramping up its influence everywhere. I am told that institutions have been sending letters to researchers who already have grant letters telling them that those grant letters will not be honoured. The system has worked for decades based on trust, and that is now being undermined. That is a clear message that with this Government, Britain cannot be trusted to keep its word. There is nothing that ARIA can do that will repair the damage—the huge damage to trust—that has already been caused and is continuing to be caused.
We need a fightback within Government. Last week, I encouraged the Minister to seek operatic inspiration, but far from “Vincero”—I will win—from “Nessun Dorma”, her reaction was more, “When I am laid in earth” from “Dido’s Lament”. That is Puccini’s Dido, not Track and Trace’s, I hasten to add. We need so much more. UK research is a success story. Please stop doing unnecessary harm. In my view, ARIA is worth supporting, but it is a distraction. It is worth discussing how we can do things better, but please, Secretary of State, stop doing harm now.
Richard Fuller (North East Bedfordshire) (Con)
It is genuinely a great pleasure to follow the hon. Member for Cambridge (Daniel Zeichner), who speaks with great knowledge on this issue and who of course represents an area where many people will be interested in the Bill.
In common with other hon. Members, I welcome the Bill, but I just want to make sure I am welcoming the same Bill as they are. In many of the contributions today, Members appear to have aimed their guns at destroying those elements of the Bill that are unique, special and different. The shadow Secretary of State, the right hon. Member for Doncaster North (Edward Miliband), who is no longer in his place, started that off by talking about R&D as an example of an industrial strategy. Well, industrial strategies are playthings of Ministers and, as we know, Ministers can change from time to time. The whole design of the Bill is intended to prevent those issues.
The spokesperson for the Scottish nationalists, the hon. Member for Aberdeen South (Stephen Flynn), chided me a little about the importance of the environment and asked whether that should be a focus. I am not denying that the environment and climate change is an important issue, but the point here is that we do not prescribe that that is the only thing that this organisation can research—I am not saying that it should not look into it.
I do not wish to smother at birth the unique characteristics of this organisation. Essentially, the purpose of the Bill is to create an institution that, in Donald Rumsfeld’s terms, would look at the unknown unknowns, and politicians are not in the right place to define what those would be. If I may, I would gently disagree with the Chair of the Select Committee, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), when he said that we should choose a couple of focal points for ARIA. That really gets to the point, because the question would then be, did we choose the right focal points? I am not sure that that is something the Bill is seeking to do with this agency.
I want to ask some questions, and perhaps the Minister can cover them in her summing up or perhaps we can cover them in Committee. Many hon. Members have spoken about the importance of the programme manager in DARPA. I looked at the worked case example cited in the policy statement released for ARIA. In it, somebody was recruited on the basis of a £50,000 grant and a three-month project. Subsequently, on review, they would, in this example, be granted £20 million for further research. I would say to my right hon. and hon. Friends on the Front Bench that there are three key tensions there that we need to tease out.
The first is that that approach places tremendous responsibility on the evaluation of those initial projects, so how do we see that going? What are we thinking about in terms of the framework in which that evaluation will take place? That seems a very thin basis for the initial judgment—it is not wrong, but it is a thin basis.
Secondly, the appointments of the chief executive officer and the chair, which my right hon. and hon. Friends are already considering, also seem to be extremely important, because they will, in such an important way, define the culture of this organisation—certainly for the initial five-year term of the chief executive and at least for the first 10 years of this organisation.
Thirdly, DARPA has been commented on a number of times. It estimates that 25% of its programme managers turn over annually, so there will be quite a large turnover of these key members of staff in the UK. What is our expectation? As the hon. Member for Cambridge said, America can draw on an enormous pool of talent. Is the goal that we will be able to draw on a larger, perhaps global pool of talent to play a role in this agency? That would be a very good aspect of global Britain.
In 2019, 65% of DARPA projects were undertaken by companies, and only 17% by universities. Is that the intention here? If so, I would very much welcome that. Also, there is the opportunity in the Bill for ARIA to create companies and joint ventures, and a document will come out to explain how that will work. However, it would be helpful to know whether it will also include what happens to any returns from those joint ventures and companies, and whether the money will go back into ARIA itself or be returned to the Treasury—I think we all know what the answer to that might be, but it would be interesting to at least pose the question.
The Secretary of State will know that ARPA was set up in the same year—1958, if I can read my writing—as the Small Business Investment Act was enacted in the United States. I would like to close on this point. There is very positive reinforcement between the initiatives being taken in the Bill and encouraging support for venture capital and small businesses. I refer Members to my declaration of interests on the issue of venture capital. There is a tremendous opportunity.
DARPA likes to say that it created the internet, but venture capital firm Kleiner Perkins can point to the fact that it made billions out of Amazon, billions out of Netscape and billions out of Google. That is the essence of the problem we often hear about in this country. We are very good at doing the research, but we are very poor at commercialising it. Can we see further efforts by the Department to ensure that we have the same parallel tracks as the United States had when it successfully launched its equivalent of our initiative, ARPA, in 1958?
Neil Gray (Airdrie and Shotts) (SNP)
It is a pleasure to be able to speak in this debate, and this will be my last speech in this Chamber. I shall come to that in a moment, but first let me address the substance of the Bill.
I represent a constituency, Airdrie and Shotts, with significant and incredible scientific research based around BioCity and MediCity as well as the Newhouse and Maxim Park industrial estates. Indeed, just last week Amphista Therapeutics, based at BioCity, secured £38 million of investment in its series B financing round to continue its work on potent and selective bifunctional molecules, known as amphistas, and to extend its targeted protein degradation approaches. I am incredibly proud to represent that major hub of the biosciences industry in Scotland, which is projected to be worth £8 billion to the Scottish economy in the coming years.
That industry needs continued support. It needs the start-up funding and ongoing research funding to continue to thrive. I am delighted that the Scottish Government have led the way with the establishment of the Scottish National Investment Bank, which is to have £2 billion of capitalisation and has a clear ambition to achieve net zero. The industry also needs significant and ongoing support to stop the Brexit drain of scientific researchers who have sadly returned to the continent in recent years.
Although I obviously welcome the UK Government’s following the Scottish Government’s lead in establishing a state-backed investment organisation, it is incredibly disappointing that they have not matched that with the ambition to tackle climate change or reduce inequalities. That example has been set by the Scottish Government through the Scottish National Investment Bank. As was said by my hon. Friend the Member for Aberdeen South (Stephen Flynn) in his incredible and fantastic speech from our Front Bench, and by others across the House, the lack of clear focus for ARIA is a major disappointment.
I also want to seek clarity from the Minister on a few issues, to follow on from my hon. Friend’s speech. I want clarity that the Minister has no intention of using ARIA as another Tory Trojan horse to bypass devolved decision making. Will the Minister ensure Scottish researchers and firms such as those in Airdrie and Shotts that I have already spoken about will receive their full Barnettised share of ARIA funding through the Scottish Government? Will the UK Government also commit now to give any powers going to ARIA in areas such as borrowing and debt financing to the Scottish National Investment Bank to ensure that there is parity there?
A string of cronyism scandals has engulfed this UK Government, from funds prioritising prosperous Tory-held constituencies over other areas with genuine need to multimillion pound covid contracts being handed out to pals by WhatsApp. What safeguards are in the Bill to ensure we do not see that repeated in the funding of this agency? Excluding ARIA from FOI does not fill us with confidence in this regard. There is a big difference between tolerable failure and a lack of scrutiny allowing for further misuse of public funds.
With your indulgence, Madam Deputy Speaker, as this is the final time I will be making a speech in this place before I take my leave tomorrow, I wish to make some brief remarks not strictly related to the matters before us. As many colleagues will be aware, I am resigning from this House in order to seek election to be the MSP for Airdrie and Shotts in Scotland’s national Parliament.
I want to thank my colleagues and friends in the SNP group and its staff, as well as friends from across this House, for their support, and staff of the House across the estate, who are diligent public servants. My incredible constituency office staff have been with me throughout my time in Parliament: Adam Robinson, Lawrie Kane, Lesley Jarvie, Margaret Hughes and Michael Coyle. They have provided me and the people of Airdrie and Shotts with incredible service, and I thank them. I thank my campaign team, led by my incredible election agent, Graham Russell—we go again!
I also want to thank the people of Airdrie and Shotts. It has been an incredible honour to serve them for the past six years. They first placed their faith in me in 2015, and I hope that I have gone some way to repay that trust, both in this House, with approaching 1,400 oral and written contributions, and also in my campaigns locally. Of everything we have achieved over the past six years, I am most proud of having led the campaign to keep the new Monklands Hospital in the Airdrie area and worked on 14,500 constituency cases for people in every part of the Airdrie and Shotts constituency. Politics is always about people, and my driving ambition, which I am sure I share with others across this House, has always been to do what I can to help people locally as well as tackle injustices, poverty and inequality across these isles.
David Linden (Glasgow East) (SNP)
I have the unenviable task of following my hon. Friend in his success in the role of SNP work and pensions spokesperson. He has been thanking people for their support. May I, on behalf of those of us who are Airdrie fans, particularly the Airdrie Supporters Trust, genuinely and sincerely thank him for his support of us as a community as well? He will be well aware that there are many people in the Diamonds community who think very highly of him and very much hope to see him elected to continue that good work in the Scottish Parliament.
Neil Gray
It is very kind of my hon. Friend to say so.
In my maiden speech, I thanked my wife Karlie and my then 11-month-old daughter Isla for their love and support. I said then that it would not be standing up to Tory Governments or standing up for the people of Airdrie and Shotts that I would find most challenging, but missing my family when I am here—and so it has proved. But now that I have not only Isla, but Finlay, Emmie and Freya to be missing, being closer to home to be a good father, and being in the constituency more, is what motivates me to want to leave this place and seek election to Holyrood to continue my service to local people. If I am successful, I just hope that that service will, soon, be in an independent Scottish Parliament.
Madam Deputy Speaker (Dame Eleanor Laing)
May I, on behalf of all the hon. Gentleman’s friends from across the House, wish him well on his last appearance here in this Chamber? I fully appreciate that, as the hon. Member for Aberdeen South (Stephen Flynn) said a few moments ago, no Scottish nationalist ever wants to be here in this Parliament, but I thank him for the service that he has given and the contributions that he has made while he has been here. Of course, I will try very hard not to say anything further than that, except that he is clearly going to be busy with his ever-growing family, regardless of what happens over the next few weeks, and in a personal capacity we wish him well.
David Morris (Morecambe and Lunesdale) (Con) [V]
May I echo the sentiments that you just expressed, Madam Deputy Speaker? I have found the hon. Member for Airdrie and Shotts (Neil Gray) to be a good colleague, as was his predecessor, who is still a very close friend of mine.
The UK space industry has arguably benefited the most from the US ARIA equivalent, DARPA. For a very recent example, we need look no further than Astra, the launch vehicle manufacturer that had a successful launch on 16 December 2020. While discussing ARIA, however, attention should be paid to the necessity of having an ecosystem approach. There is now an acknowledged and accepted dependency on space, and the space sector is one of the 13 critical national infrastructure sectors. The UK is at a decision point and is reaching a critical stage in terms of launches becoming commercially viable. To secure launches as part of the UK offering of space ports would ensure access to hugely significant economic opportunity through whole-sector participation, including end-to-end delivery.
While there is no doubting the UK’s space ambitions, there needs to be a clear line of investment, which will have two elements. At present, most of the Government’s investment is focused on academia and technology. There is little focus on launch infrastructure and the development of logistical support. Noting that it is generally accepted that a launch will make the difference for the UK’s standing and therefore economic benefit from the global space market, it is estimated that this alone will be worth £400 billion to us by 2030.
Regulation, though, is a key enabler of development in the space sector, and much has been achieved through the introduction of the Space Industry Act 2018. One anomaly is the Civil Aviation Authority and the intention of lifting the insurance liability from a £60 million cap to unlimited liability, which will make UK launches unviable from UK soil, with many other countries offering less liability. So that must be addressed very soon.
Have the Government ensured sufficient harmonisation between the existing regulatory authorities and the UK Space Agency? Is the UKSA playing its full role as the Government-sponsored agency with responsibility for all strategic decisions on the UK civil space programme and to provide a clear and single voice for UK space ambitions? That has to be clarified.
The environment is rightly the lens through which we need to examine current and future actions and ambitions. The space sector is demonstrating its commitment to the environment through the development of new materials and processes, but with space acknowledged as one of the key enablers to understanding and monitoring of global environments and environmental change, are the Government driving the right relationship between space and the UK environmental agencies, acknowledging devolved responsibilities?
Ambition itself cannot deliver on enterprise for a nation. Leadership is key to ensuring the right information and that action takes place at the right time and with the right entities. Does the space sector enjoy the right nature of strategic leadership both in the Government and the private sector? Has the UK established the types of structures, executive councils and committees necessary to provide the support, confidence and assurance of decisions, making opportunities for the space sector to thrive under the new ARIA regime? A lot of clarification needs to come forward, and I am sure that the Secretary of State will provide that development and regulatory structure to allow a commercial and viable space industry to grow. I have highlighted some anomalies within the structure as it currently stands.
I would like to see the Bill pass, and I am certain it will. It will enable the UK space sector to do a better job than it is already doing. The UK space sector, as my right hon. Friend the Member for Tunbridge Wells (Greg Clark) has already said, develops 40% of what is already flying around in orbit, and we can do more. The UK space sector has bucked the trend over recessions and pandemics, and the sector is increasing.
I want to end on a positive note. I will be backing the Bill, and I would like to see more money for the space sector.
Alan Mak (Havant) (Con)
I am delighted to welcome the Bill and the new Advanced Research and Invention Agency that it creates. I want to echo the sentiments of the Secretary of State and the shadow Secretary of State, and the tributes that they paid to our scientific community, who have done outstanding work during the pandemic.
Today’s Bill is one of the most important to come before the House in this Parliament. First, it lays the foundations for Britain to become the science superpower envisaged by the Prime Minister in the integrated review and building on the Government’s existing commitment to deploy 2.4% of GDP to research and development. Secondly, a new agency will create new jobs, products and services, and innovative communities across the whole country, levelling up our science and technology base and backing our scientists and entrepreneurs. Finally, it will enable Britain to lead the new fourth industrial revolution, pioneering in fields from artificial intelligence and robotics to genomics and quantum technologies. Just as Hargreaves’ spinning jenny and Stephenson’s Rocket propelled Britain to a new era of prosperity and invention in the past, this new agency, ARIA, can help us to success in the decades ahead.
We have all seen during the covid-19 pandemic the importance of investing in research, science and development, and as we build back better, ARIA can unleash the potential of our most visionary scientists, helping Britain to shape the future and get to the future first. In terms of shaping the future, many in the House will know President Kennedy’s words from 1962:
“We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard”.
Those stirring words are often remembered for their soaring rhetoric, but they were in fact designed to persuade the American people of the benefits of the Apollo space programme after the US had been caught off guard by the Soviet Union putting the first satellite and then the first man into space.
To beat the Soviet Union to the moon, the Americans relied on a radical new organisation that would be a catalyst for new ideas. America’s Advanced Research Projects Agency—ARPA, as it was originally known, founded by President Eisenhower and backed by his successor, JFK—would help to deliver not only the moon landings but an early version of the internet, the global positioning system and driverless cars. By launching ARPA, the US was determined that in the future, it would be the initiator and not the victim of strategic technological surprises.
By launching the UK equivalent today, as the fourth industrial revolution accelerates, we provide ourselves with an insurance policy against future challenges and an opportunity to shape the future through innovation. It is therefore welcome news that ARIA will incorporate the key features of the ARPA model that have been credited with its success, including a sole focus on high-risk, high-reward research; a high tolerance for scientific failure; freedom to explore new funding models, including prizes and taking equity stakes; minimal bureaucracy, with low Government intervention; and empowering talented programme managers to find and fund complex research programmes. That is the right framework, but what sort of technology should those programme managers focus on? That has been the subject of some debate this afternoon.
It would be tempting for ARIA to spread itself thinly and widely, diversifying across a range of technologies and disciplines, but that would be the wrong approach. If ARIA is to succeed, it must focus on the most impactful and transformative technologies that are most likely to create whole new industries, produce thousands of jobs across the United Kingdom and apply across a wide range of economic sectors where the UK can develop a strong and sustained competitive advantage. Those key technologies include robotics and artificial intelligence, which will become pervasive across all sectors of our economy; life sciences and synthetic biology, where the big theme of the coming decade will be personalisation; fusion, which has the potential to deliver a new carbon-free source of clean energy; space, where, as my right hon. Friend the Member for Tunbridge Wells (Greg Clark) said, growth is driven by manufacturing, including in satellites, ground systems and components; and quantum technologies, including quantum computers, which are exponentially more powerful than today’s devices.
It was in Britain that the first industrial revolution took off in the 18th century. It was this country that gave the world penicillin, unravelled the structure of DNA and pioneered the world wide web. Cambridge alone has produced more Nobel laureates than any country in the world except America, and more than France, Japan and China combined. We have an outstanding record of scientific innovation and discovery to be proud of. The creation of this new agency will help Britain cement its status as a science superpower, and it is a project that I am proud to support.
Sarah Olney (Richmond Park) (LD) [V]
It is a pleasure to speak in this debate on the setting up of ARIA. Liberal Democrats wholeheartedly welcome any announcement of new public funding for science and technology.
I was struck by the closing remarks of the hon. Member for Havant (Alan Mak) about Britain’s history of scientific technology and innovation. When I was a child growing up in the 1980s, we were still coming towards the end of the cold war, and science and technology felt almost threatening in a time of conflict revolving around nuclear weapons. A transformation has taken place over the last 35 years in public attitudes towards science. We have had a digital revolution. Here we are today, on the anniversary of the first lockdown of the pandemic, and in the last few months, scientific research and scientists have dominated the headlines with the extraordinary work they have done in developing the vaccine. It makes me think that today’s children have a very different attitude towards science, and I very much hope that the experience of the last few years will encourage more and more children and young people to consider science as a career. I hope they will be inspired by our great national history of science and innovation, and that this new agency will in some way pick up that great inspiration and some of that great talent, which is surely being fostered in our schools and universities as we speak, and bring new innovations and great scientific thinking to the world.
There is no doubt that in funding for science and innovation we have lagged behind somewhat in both the private and public sector. We have fantastic science, education and research capacity in this country, as we have done for many years, but our biggest failing has been our inability to match up the great work and innovation that we are generating in our universities, research centres and private sector companies and bring it into economic activity so that it can deliver wider benefits to our economy and workforce. It is a problem that Governments of all stripes have wrestled with for many years.
However, while I welcome the fact that ARIA has been set up with that express purpose in mind, is this particular agency the result of Government analysis of where we have been going wrong or is this Mr Cummings’s brainchild? Conservative Members seem to have almost limitless faith in Mr Cummings’s abilities and analysis, but I have to be honest that it is not that clear to those of us on the Opposition Benches that just because Mr Cummings thinks something is a good idea, the rest of us should automatically follow.
So I am very interested to know what analysis the Government have done as to how ARIA can fix some of these questions that have dogged our science and innovation space for so many years. How is the agency going to direct its activities to make sure that it can really address the issues we are facing? My first question is about who is going to be addressing these particular issues. The legislation is broadly drawn, which is probably right given that we want an unencumbered agency, but who is going to be appointed to lead it? I notice from the legislation that the board will be appointed by the Secretary of State; it will obviously include the chief scientific officer as that is clearly right, but beyond that what will be the qualifications of the people who are leading it? Will they be scientists, will they be from industry, will they be academics, will they be economists? The legislation is silent on what will qualify somebody to sit on that board and how they will direct the agency and to what particular ends. That is an interesting point, and I look forward to hearing more about how the Secretary of State will make those appointments.
I welcome the plans to provide the substantial funding for this new body, and particularly the direction that the projects it undertakes can have a high risk of failure. However, the Secretary of State must be aware that he is committing to taking big risks with taxpayers’ money. How can he or the hard-working taxpayer be sure that this use of public money delivers greater value to the British public than any other use? I acknowledge that that will be a difficult question to answer and that we need to accept that there will be downsides, but the Secretary of State should be clear about whether this high-risk investment is new money or whether it is being taken away from other established and lower risk programmes elsewhere. For example, is funding for ARIA coming from money for research and innovation for other programmes—perhaps money that UKRI received for official development assistance research into global challenges, which we know has been cut by two thirds? Is that money now going into ARIA? Are we cutting existing programmes in order to fund this high-risk research?
We know that ODA budgets and also the Royal Society, the Academy of Medical Sciences, the Royal Academy of Engineering and the British Academy are seeing cuts, and again I ask is ARIA the new destination for that funding? It is essential that the Government confirm that this is new money and that it is going to be introduced to sit alongside existing funding streams. Otherwise, far from being a boost to scientific research, ARIA will put successful current research at risk. As has been pointed out, the wide-ranging remit of ARIA also represents a risk that research projects will be undertaken that duplicate work already being done elsewhere, which again risks taxpayer value for money.
In conclusion, the Liberal Democrats are very pleased to support the Bill. We are 100% behind efforts to increase science and innovation, particularly where they can have wider applications for the economy and quality of life in this country, but we will be watching very closely for answers on appointments to the board and funding.
Mark Logan (Bolton North East) (Con) [V]
I welcome the Second Reading of the Advanced Research and Invention Agency Bill, which marks an increasing awareness across Government, Parliament and the country of the importance of innovation in securing our collective prosperity well into the future. The last year has shown us just how vital it is that we further bolster this country’s science and research ambitions. The Royal Society of Biology, with which I spoke last month, can attest to how our assiduous investment in the life sciences has clearly paid off, as we are reaping the benefits with our vaccination roll-out. Indeed, just look at the dividend that the UK’s sequencing expertise is now paying. That is why I emphatically welcome the Government’s commitment to increase public R&D expenditure, which, along with ARIA, forms part of the fundamental building blocks for the Britain of the next era.
We have thought hard about the pennies. Now we are turning to the pounds we pack internationally. Last week, we on the Science and Technology Committee heard from Dominic Cummings, who spoke about the need for the UK to take science more seriously. He said that competitor countries around the world debate at the highest level cutting-edge S&T on a daily basis. We are not entering—but rather have already entered—a new era of heightened global competition. We should not fear such a transition, as change is the only constant. I suggest that we all read “Who Moved My Cheese?”, and advance our science and technology expertise.
The strategic framework for the integrated review has S&T as the very first of four overarching objectives. I agree with the implicit argument that science and technology is often the forgotten magical element in Britain’s soft power. I trust that the Minister is considering how we use the global talent visa programme to add to this effort. As my hon. Friend the Member for Havant (Alan Mak) rightly pointed out, the UK has had 99 Nobel laureates. This fills us with pride. Aiming for at least another 99 fills us with focus. Taken together with the integrated review, this Bill will provide the UK with immense opportunities to become a science superpower across many domains.
The Government are here to get the big things right, but we must also—slightly counterintuitively—be prepared to get things wrong. By this, I mean that we face a cultural challenge in Whitehall, Westminster and, indeed, all walks of life when it comes to failure. It is an acutely British niggle. Fear of failure in both Government and business has limited our ability to take more calculated risks. Who can blame people, when the media is constantly ready to take someone down for the slightest slip? I am hopeful that ARIA can be part of a cultural change that can boost us in taking more risks for higher reward, and to scale up our ideas to compete with the east Asian and US giants.
ARIA may currently be of no fixed abode, but we are on standby to fix its abode in Bolton. My hon. Friend the Member for Bolton West (Chris Green) will be up shortly to join what is probably going to be the most important debate of our generation: should ARIA’s office be in the west or the east of Bolton? Bolton and Greater Manchester’s thirst for radical innovation is palpable, with the National Graphene Institute a stone’s throw away and the University of Bolton just a few doors down from me. As the Bill outlines, ARIA’s membership is to consist of a small network of executive and non-exec members, in line with the Government’s agenda to level up, and what better location is there to base that network in than the north-west, surrounded by the brightest young minds, at the centre of Bolton North East?
Through the vaccine roll-outs, we have all witnessed the benefits of being able to work at speed and scale, and this has been testament to relinquishing overreaching bureaucracy. In its present form, the Bill can engender more clarity to signal adequate space for ARIA’s leadership to operate independently from Government. Exceptional scientists need room to decide which research to pursue and to give them the confidence and agility to make decisions, although I also appreciate the need for some parliamentary oversight. This has been emphasised repeatedly by the Science and Technology Committee’s witnesses. Let me finish by saying a big well done to the Government for being ambitious and bringing this Bill to the House, and for providing us with the stepping stones to punch not above our weight but above our basal metabolic rate.
Carol Monaghan (Glasgow North West) (SNP) [V]
Most Members understand the importance of proper science funding, both in terms of supporting research excellence and as an economic multiplier, and I certainly welcome any announcement of additional funding. However, in a week when we have seen UK Research and Innovation funding for official development assistance being cut, and when we are facing ongoing uncertainty regarding our association fee for Horizon Europe, we have to be sceptical about whether this agency will really attract new funding, or whether this will simply involve the re-profiling of existing funds.
In his evidence on ARIA to the Science and Technology Committee last week, Dominic Cummings referenced the Manhattan project, Turing’s work on the Enigma code and the development of computers as projects that would have benefited from funding free from bureaucratic constraints. All those projects had one thing in common: a specific target. We need to have some idea of what ARIA’s mission should actually be. What are its priorities? Net zero technology? Autonomous vehicles? Quantum computing? I do not think any of us would deny that, if the UK were to face a specific urgent challenge, there would be a need to get money where it was needed, and fast. The difficulty here is that we are being asked to support a Bill to set up a body to fund high-risk research, but we do not know what we will be researching or why. In last week’s evidence session, Dominic Cummings talked extensively about the bureaucracy of current funding, and stated this as one of the reasons for the new body. We have heard from researchers about the difficulties in applying for funding, but we would surely be better off tackling that, rather than creating a new agency when we do not have a mission.
Earlier, the Chair of the Select Committee, the right hon. Member for Tunbridge Wells (Greg Clark), talked about the importance of failure. It is frustrating that we do not recognise how key failure is to scientific development. Failure is information. It tells us that something does not work, and science research often has many instances of failure before we experience success. This speaks to how we measure success in science through papers looking for positive outcomes. Maybe we should be looking more at papers that talk about negative outcomes or nor outcomes at all, because that is information too.
In everything, there must be accountability. Government spending during the pandemic on flawed procurement contracts should have taught us that there must be checks and balances in public money to ensure that cronyism is not the overriding decision maker. Removing ARIA from any freedom of information requests is problematic and will certainly leave it open to such cronyism. I would like some clarification on how extreme freedom in research does not mean extreme recklessness and cronyism in spending.
I would also like to raise the issue of national inequality of research spending. The recent National Audit Office report on the industrial strategy challenge fund noted:
“The Fund is unevenly spread across the UK with the majority being provided to the West Midlands, South East and London”.
This is not a new situation. For decades, we have seen capital spending on research concentrated on the south-east of England. I would therefore like to hear something about how the Government will ensure that ARIA is fully representative of the devolved nations.
The Government promised to double R&D spending to £22 billion by 2024 and repeatedly talk of being a science superpower. However, we are yet to see full details on this spending. The Business Secretary has admitted that UKRI’s 2021-22 budget has not yet been agreed, so a long-term funding plan for science should have some certainty for the funding cycles that we are already in.
The UK’s status as a science superpower is underpinned by international research collaboration and we need to make sure that that is protected. It is concerning that UKRI has announced a shortfall of £120 million between its official development assistance allocation and its commitment to grant holders. I have asked repeatedly about our commitment on Horizon Europe contributions, and, in the last few weeks, there has been no further information. We need to know whether the contributions will come from new money or whether UKRI will see its budget further squeezed to pay our association fee. Although many of us support an additional £800 million for science research, it really is difficult for us to work out whether it is actually new money. We need to see the sums and we need that clarity.
Finally, I pay tribute to my hon. Friend the Member for Airdrie and Shotts (Neil Gray). He is a well-respected and much liked colleague across the House. I know personally how hard he works and that he gives 100% both to his parliamentary duties and to his family. I hope that he has great success in his new endeavours and that he has the opportunity to spend more time with his family, because all of us with families who have to travel to this place know that it can be a huge strain. All the best, Neil, and take care.
Mr Deputy Speaker (Mr Nigel Evans)
I would like to add my good wishes as well, as this is my first time in the Chair today. Good luck, Neil.
Simon Fell (Barrow and Furness) (Con) [V]
I am delighted to have been called to speak in this debate and I will attempt to be brief to avoid the virtual grimace that Madam Deputy Speaker threatened.
There is so much to like and be excited about in this Bill and the creation of ARIA. The Secretary of State was spot on when he raised the covid pandemic and the breakthrough vaccine that has been developed in the UK. This is one of those moments that shows what UK innovation can achieve: saving lives, catalysing interest and effort, and instilling pride. However, ARIA could put those amazing developments in the shade, or, at the very least, normalise them. This year has shown the absolute importance of scientific innovation and ARIA could allow the UK to play to its strengths, tackling some of the biggest challenges facing our country, such as net zero. This is a statement of intent about the future direction of the UK and of our economy.
Going back to covid, interest in UK science and innovation has never been higher, but by focusing ARIA on ambitious and cutting-edge work, we will strengthen the sector that is driving that interest. Indeed, I am delighted that the Bill gives particular focus to projects that carry a high risk of failure. Those projects will be at the very cutting edge of science and technology and need support to determine whether we can gain a high reward or learn from their failure. We have seen too few of the genuinely exciting technologies of the last few decades being taken to market overseas. Providing a route to finance for the most cutting-edge science in the UK will be a huge benefit to us as a nation, driving the creation of new industries, jobs, skills and growth.
I am fortunate to represent Barrow and Furness, where roughly 10,000 people are employed in the national endeavour of producing the nuclear deterrent. On my last visit to the shipyard, I was struck when it was mentioned, almost in passing, that only one thing is made by man that is more complex than a nuclear submarine, and that is the international space station. The research, innovation and technology that underpin these incredible ships have been created over generations to produce vessels that travel in near silence, under tremendous pressures, and which keep their crew alive and our nation and NATO secure. That immense achievement is the end point of generations of research and development, some from the UK and some from further afield. That is what is exciting about ARIA and what it could deliver. With £800 million of funding behind it and genuine strategic and cultural autonomy, let us think what could be achieved in strides to keep us safe and secure, and to enable innovations in technology that genuinely shift the paradigm and which can brought to market.
The ability to be nimble and agile is key to ARIA’s success, and I believe that my right hon. Friend the Secretary of State has taken the right approach in exempting it from public-contract regulations relating to its research goals. That will allow it to procure at speed and act more like the private sector organisation that it needs to be. Balancing oversight for this new beast will be difficult, and hon. Members have expressed genuine concern about that, but I believe that my right hon. Friend has got it right. In directing ARIA to consider the benefits of its activities for the UK as a whole the agency will, by its nature, foster a positive environment for developing the technologies of tomorrow, helping to make the UK a global scientific superpower. Indeed, alongside UK Research and Innovation, ARIA gives the UK a full-spectrum approach to funding scientific research. As the Jack Sprat and his wife of UK research and innovation, ARIA and UKRI will generate greater pull for UK science and research as a whole.
Finally, we must continue the tradition of pushing the boundaries of human knowledge with cutting-edge research and science. Without taking risks we will miss groundbreaking discoveries that will have far-reaching benefits for our nation, including the development of the jobs and industries of the future, based here in the UK. By launching the UK equivalent of DARPA, we have the opportunity to seize the future right here and today. Surely there can be no more exciting prospect than that.
Paul Blomfield (Sheffield Central) (Lab) [V]
In my brief remarks, I should like to focus on the context of the Bill—on how we make the most of our country’s extraordinary research capacity, about which many Members have spoken.
Six years ago, I led a Westminster Hall debate highlighting the fact that the UK had fallen behind others in research and development investment, from a position in which we had led OECD countries. We had particularly fallen behind in publicly funded R&D, and I argued that we needed almost to double spending to 3% of GDP. Six years later, actual spending has not increased much—it is still about 1.6% or 1.7%. The Government are talking about their ambition to increase spending to 2.4% although, as ever, the Prime Minister’s rhetoric of the UK as a science superpower does not match the reality of his plans, as 2.4% simply brings us in line with the OECD countries overall. It is an ambition to be average.
There is an even bigger concern that the reality does not live up even to that target. The Bill proposes a new agency for research and innovation, but its funding is unclear. Some £50 million is set aside in 2021-22, but future funding remains unallocated, and there is no long-term investment model. The Government’s rhetoric is ambitious, talking the talk about an innovation nation, but real results are delivered through sustained investment in our brilliant science. The Oxford-AstraZeneca vaccine is obviously the most cited example today, and is the most current instance of the extraordinary capacity that we have as a country, but it was delivered through years of consistent funding and focus, incredible new science providing the route to reopening society and the economy.
The scientific community has made it clear that without certainty and stability we will lose out in the global market. I think one of my colleagues has cited this, but the vice- chancellors of Oxford and Cambridge Universities said:
“World-leading research cannot just be turned on and off like a tap.
Once our highly trained young researchers leave our universities they will not come back, and once they leave the country they will not return.”
Of course, the importance of research extends well beyond Oxbridge, throughout the universities sector and right across the country. It is worth remembering, at a time when we all share a concern about regional imbalance within our economy, that universities are one of the few national assets we have that are spread evenly right across the country, well positioned to generate economic growth in all regions and all nations of the UK.
The problem is that contrary to their stated intentions, the Government have started reducing research funding. First, as we have heard from others, £120 million is going from the international development budget, cutting about half of development-funded research activity. Only yesterday, the Royal Society described powerfully to me how this has forced it to withdraw funding from current projects that will not be able to continue, as well as shut down future opportunities, with huge implications not just for global research, but for the very relationships with the Indo-Pacific nations that the Prime Minister has been so keen to foster.
Secondly, there is the threat to give back word on funding the association with Horizon Europe. Clearly, participation in Horizon Europe is hugely welcome. The understanding has always been that it would continue as a separate funding stream. Now, apparently, there is a suggestion it might come from UKRI’s existing budget. When I met UKRI a month ago to discuss funding for extending studentships in cases where research has been delayed by covid, we discussed the immense pressure on its existing budgets. If it is expected to pay for Horizon out of existing budgets, that would take about 11% of its funding, or £1 billion. That is the equivalent of 18,000 research-focused academic jobs.
In a city of two large universities and more than 60,000 students, I can testify to how important research is to our communities and to our economy. We know that public sector research informs and improves private innovation, while generating revenue for the public purse. The University of Sheffield’s advanced manufacturing and research centre is a great example; one that is recognised internationally. From seedcorn public funding, it now has more than 125 industrial partners, and employs more than 500 researchers and engineers from all over the world, with the university at the centre of that network, pulling together that collaboration. Although the Prime Minister talks of increasing their investment in R&D, the Government are reportedly on course to miss their target of 2.4% of GDP spent on R&D by 2027, so now is the time to put their money where their mouth is and protect our research capabilities, and with that their futures.
In winding up, I ask the Minister to respond to three questions: what assessment has been made of the £120 million cut to official development assistance funding in R&D? Will she confirm that Horizon funding will not, in fact, be drawn from UKRI’s existing budget? Will she tell the House when the Secretary of State will be able to confirm what the UKRI budget will be for 2021-22?
Mark Pawsey (Rugby) (Con)
As with the mood around the Chamber, I rise to welcome the Bill. In the 1920s, a young pilot officer in RAF wrote a thesis about how planes would be able to achieve longer ranges and higher speeds by flying at higher altitudes, but that they would need a new and different form of propulsion. At that time, they were powered by piston engines and propellers, and he realised that the lower air pressures at height would prevent the engines of the day from working, so he started to think about the alternatives. In 1935, he secured financial backing, formed a company and developed a new type of engine, which was first ready for flight in May 1941. The RAF officer was Frank Whittle; the new engine was the jet; and the development work was carried out at the British Thomson-Houston works in my constituency of Rugby. The site is still available—it is part of an industrial complex—and I recently visited to see where the work was done and was able to see the hole in the wall where the prototype was placed.
Whittle’s invention led to international air travel as we know it today—or as we have known it until recent months—and, significantly, to commercial success, with Rolls-Royce going on to be one of the world’s two major jet engine manufacturers. It seems to me that one purpose of the Bill is to answer the question: how do we encourage a present-day or future Frank Whittle? The creation of a new agency will improve the prospect of our creating truly life-changing inventions and, significantly, lead to commercial opportunities for their manufacture in the UK.
The current primary funder of invention is of course, as we have heard, UK Research and Innovation, through the seven research councils, Research England and Innovate UK. It has a budget of £6 billion and provides grants for research and development. Some of the work is developed through the Catapult centres, which were set up from 2001 to promote research and development through business-led collaboration among scientists and engineers. Significantly, a third of the Catapults’ funding comes through the private sector.
I have a close association with two Catapults, one of which is in my constituency and one of which is close by. The Manufacturing Technology Centre is in my constituency and I visited it in 2011. I have since seen its massive expansion, with the list of companies involved taking up more space on the wall each time I have been there. The centre has done particularly effective work on additive manufacturing.
Close to my constituency is the Warwick Manufacturing Group at the University of Warwick campus, which of course has a close relationship with the automotive sector—highly appropriate as Coventry is the heart of motor manufacturing. The WMG has had a big hand in the research for the industry and is currently working on battery technology. As an aside, Coventry would be an excellent location for a gigafactory.
I sought the views of the two Catapults. The question for me was whether ARIA would be a threat to their funding or complementary to their work. In each case, there was strong support for the proposals in the Bill. The WMG
“welcome and support the establishment of ARIA”
as
“a funding agency with freedom to operate. The proposed structure is an improvement on the current UKRI set up and should allow for more informal and flexible working.”
The MTC said:
“Because ARIA will be able to fund different kinds of scientific and technological research within a single programme, organisations like the West Midlands based Manufacturing Technology Centre will benefit from joined-up funding streams, allowing projects to access funding in a more effective and efficient way”.
That shows strong support.
The MTC also draws attention to the additional funding and support for risky programmes. We have heard a lot about the risky nature of the programmes that ARIA will fund. We know that only a small fraction of the goals will be achieved and that failure will have to be accepted as part of the scientific process. The MTC believes that beneficiaries of funding will be able to take bold but calculated risks that they would not previously have been able to take. We have already heard that in these areas of development we often do not know exactly what we are looking for until we find it, but the benefits of success will be greater.
The WMG drew attention to an issue that we have heard about in this debate: the key role of the chair and how important it will be that this individual is strong and independent. In many ways, it will be perhaps one of the most important of ministerial appointments. It must be a multi-year programme with a long-term perspective, and the 10-year commitment in the Bill is incredibly important. The chairman must be free to set his own agenda and priorities.
We have heard discussion about how ARIA’s mission will fit with other Government priorities and the need for the organisation to be free to follow its own course. I am particularly concerned about the closeness of the links with industry and how important they will be. I was reminded of that this morning at an excellent Industry and Parliament Trust event on the UK role in the development of the UK battery industry. We heard Professor David Greenwood of the University of Warwick speak about the need to link research and development to the existence of a market for what is being introduced. He told us an account about the development of the lithium ion battery, I think at Oxford. It was developed in the UK at a time when there was no commercial application for it. The mobile phone and the move towards electric vehicle that we know about today did not exist, and it took a Japanese camcorder manufacturer to recognise the opportunity that small powerful batteries created. That gave an application for the battery, and once used in that application, other uses became apparent. This new body must be close to industrial applications.
We live in a fast-changing world, and UK businesses need to be able to respond to those changes. It is vital that we retain our manufacturing base to provide a mix to our economy, and the best manufacturing opportunities arise when they are close, both physically and with personal links, to those areas where the ideas are developed. Making full use of the energy and dynamism of inventors, researchers and entrepreneurs will enable that to happen, and this Bill, which creates the Advanced Research and Invention Agency, is key to that. I believe it makes the kind of invention developed by Sir Frank Whittle more likely.
Owen Thompson (Midlothian) (SNP)
I welcome the general concepts behind the Bill. Support for ambitious blue-sky research where application in the real world is not always clear could bring massive economic benefits if successfully applied. Electricity is the backbone of modern industrial society, but if the early pioneers had had to specify what it was used for, we might not have got beyond experimenting with shocks from electric catfish. On a day-to-day basis, where we all deal with so many emails coming in and out, without innovation and invention we might still be reliant on a flock of pigeons to deliver those messages.
A healthy research environment needs a healthy range of options and healthy funding levels. Additional funding from ARIA is therefore a welcome new tool in the box, as long as it is additional funding and not a subtraction from other important funds. Applied that way, ARIA could complement the high-impact, hypothesis-driven, goal-driven research and support currently delivered via UK Research and Innovation, but it cannot simply be there to replace that. Nor should the agency become just another political tool to bypass and crowd out devolved decisions on funding and support for innovation.
I have a clear constituency interest in any research funding, as some of the UK’s best work comes from my neck of the woods. Midlothian Science Zone is at the cutting edge of global research across many disciplines, but particularly in the fields of animal health, human health, agritech and related technologies. The world-renowned Roslin Institute, for example, looks forward to pitching some of its high-risk ideas to ARIA, in particular to investigate how the integrated transformation of the food system could contribute to solving global hunger and climate change, to improving human, animal, plant and environmental health, and to developing preparedness for future pandemics.
That type of exciting research certainly seems to fit the mission of another state-backed investment organisation that is already open for business. The Scottish National Investment Bank, as my hon. Friend the Member for Aberdeen South (Stephen Flynn) mentioned earlier, is the single biggest economic development in the history of the Scottish Parliament, with a purpose to power innovation, reduce inequalities and accelerate the move towards net zero emissions.
I hope that in developing this new body, the UK Government will take decisions that support and do not undermine the progress of the Scottish National Investment Bank. There is room for both, but the powers given to ARIA for borrowing, debt finance and multi-year transfers should also be given to the Scottish National Investment Bank.
Given that it is public money, it would be wise, without any need to be too prescriptive, to have clarity over ARIA’s purpose and focus. We do not need every step mapped out, but we need at least to have the rudder in place and a general course of travel made clear. We know that DARPA, the US defence research organisation that inspired the model, has a mission focus. Horizon Europe has a mission focus. The Scottish National Investment Bank has a mission focus on reducing inequalities and tackling climate change. If we do not know what we want to achieve, how do we have any idea whether ARIA is being successful in achieving its goals?
There are serious questions not just about the focus but about the planned oversight and governance of the new agency. Alarm bells go off when I read that it will be exempt from freedom of information requests and public contract regulations, especially given the current Government’s woeful record on accountability and transparency. The Government seek to excuse that on the grounds of avoiding bureaucracy, but as the Campaign for Freedom of Information has pointed out, the US equivalent of ARIA is covered by the US Freedom of Information Act and was subject to just 48 requests in 2019. Such a volume of FOI requests could not conceivably be seen as a block to ARIA’s success.
Bureaucracy looks increasingly to be a convenient byword for bypassing scrutiny of this Government, who, ironically, have dramatically increased damaging bureaucracy for international businesses and academia since our leaving the EU. Covid has also been used as a cover for all sorts of contracts being handed out without competition, clarity or comeback. The need for speed is not an excuse for keeping the paperwork, for not printing the details within legally required timeframes, or for misleading Parliament over what has been made public.
Questions continue to be raised, and dodged, about why so many Tory donors, friends and associates have been the recipients of directly awarded contracts, even when their CVs show little experience in the field. I draw the Minister’s attention to my Ministerial Interests (Emergency Powers) Bill, which would ensure that Ministers were answerable to Parliament where such situations arose—not to hold up the awarding of contracts but to allow Parliament the opportunity to question their appropriateness. I have written to the Cabinet Office seeking the Government’s support to take that Bill forward. Certainly, if there is nothing to hide, the Government should have nothing to fear from it.
In setting up a new funding body, especially for high-risk funding such as this, it is imperative that safeguards are built in to protect against the risk of corruption. There is an urgent need for more, not less, oversight in public spending decisions, and I am dismayed that the Government continue to dismiss those concerns.
In conclusion, while I support the concept and the dedicated high-risk research funding, more clarity is certainly needed about the plans, the funding implications for devolved Governments, and the relationship with existing R&D structures. I know that the Government do not always like detail, but a bit more understanding of who ARIA’s customers might be, how the body will be held to account and what it seeks to achieve would certainly be welcome. Big ambition is a good thing, but Government goals are more likely to succeed when we actually know what they are.
Chris Skidmore (Kingswood) (Con) [V]
I welcome this Bill. As the former Science Minister who ushered in this concept of the UK ARPA—now ARIA—in the 2019 Conservative manifesto, I am delighted that the introduction of this Bill so early in the Parliament demonstrates the Prime Minister’s key determination that research and development will be a priority as we look to build global Britain on the back of recovery from the pandemic.
The Bill needs to be placed in the context of the uplift in research and development spend that has been spoken about, from the £9 billion per annum that we have spent in the past to £22 billion by 2024-25. To put that in context, ARIA will represent just 1% of total research spending in the period it is set up for, over five to 10 years. That is obviously due to our commitment to spend 2.4% of GDP on research and development by 2027, and we need to look at how we achieve that by creating multi-annual financial budgets. We know that ARIA will have £800 million over a five-year period, and that is incredibly welcome. We need that certainty and stability for the rest of the R&D sector to be able to plan ahead and devise research partnerships.
A number of Members have spoken about the current insecurities regarding the Horizon Europe subscription. There were plenty of insecurities when it came to seeing whether we would be an association member of Horizon Europe in the first place, yet we crossed that line. I am in no doubt that these issues will be resolved within the appropriate timescale to provide certainty for the science and research sector when it comes to plugging funding shortfalls, but in the future we should learn the lessons by creating multi-annual, sustainable, long-term budgets that stop us reaching this stage in the first place.
I believe that the Bill designs the right structure for ARIA, with that 10-year certainty that it will exist, free from ministerial whims and able to plan ahead. It is right that the Bill strikes the tone and balance between, necessarily, independence and autonomy, as well as providing the right flexibility to prioritise discovery-led research. There has been some discussion on Second Reading today around whether we should be taking a mission-oriented approach or whether we should be looking for moonshots for ARIA, but that is fundamentally to misunderstand the purpose of creating an organisation that will prioritise disruptive innovation. There are plenty of other opportunities for moonshots elsewhere within the R and D ecosystem. ARIA’s sole purpose will be to look at how we can create paradigm shifts in technologies or, indeed, in technologies that do not even exist at the moment. I reference back to the UK being a founder member of CERN in 1983. We put £144 million a year into CERN now, so our spend on ARIA is quite modest by comparison. No one expected CERN to help to develop the internet or touch-screen computing, and yet they have been spin-outs as a result of prioritising discovery-led technologies and putting our faith in research, not knowing where it might lead us.
Other countries are doing the same. When we look at this discussion around ARIA, it is important to understand that it is not just about ARPA—and it is nothing to do with DARPA. Obviously, DARPA is a mission-oriented defence-led project. We focused our intention on the 1950s and ’60s version of ARPA when looking at how to create ARIA. There is Vinnova in Sweden, which is £260 million a year; imPACT in Japan; and SPRIN-D in Germany, which was set up in 2019 on exactly the same framework as we are looking at for ARIA. In a way, therefore, we are behind the curve. Other countries are already powering ahead, looking at setting up these disruptive innovation centres that will prioritise discovery-led technology, and we need to step up to the plate now.
When it comes to the Bill, I will make two final points. First, there is the issue around commercialisation. As I have mentioned, £800 million is a modest amount. We can supercharge that, just as we need to supercharge our 2.4% target by leveraging private investment. How can we do that? We can look towards prizes that have been established, such as the $10 million Ansari X Prize, which has leveraged $100 million. ARPA in the States also relies heavily on SRI International at Stanford University to help drive the spin-outs. We need to be cautious about not leaving an open door when it comes to focusing on the “R” in research and then forgetting about the “D”. This has been mentioned before, but what we do not want to see is discoveries coming out of ARIA being taken advantage of by other companies abroad. We need to look at how we protect the intellectual property. We need to look at how we can create an organisation that will focus on the “D”. I do not believe that Innovate UK has the capacity at the moment to be able to achieve that, so we need to look at the Fraunhofer in Germany, which spends 10 time the amount of investment than the catapult centres, for focusing on how we can look at applied level research for the future.
Then there is the issue of high risk. Yes, we need high-risk research, and yes, we must have the freedom to fail, but we must also understand the risk when it comes to collaboration with foreign powers, hostile research and making sure that we have the right security measures in place for dealing with research integrity and that we have trusted research partnerships. That is why it is exactly right that we have the FOI exemption in place to be able to protect this research and make sure that other countries do not take advantage of it.
Finally, it would be remiss of me, as a local MP, not to mention the location of ARIA. It is right that it should be practically a virtual location spread across the country, and we need to ensure that universities and national laboratories have the right investment to be able to help conduct the research for ARIA. When it comes to the headquarters, the Bristol and Bath Science Park in my constituency has land that is free, and I am sure that it would give a very good rate if ARIA wished to set up there, right next to the National Composites Centre and the Institute for Advanced Automotive Propulsion Systems. It would be a huge opportunity if ARIA wished to locate in my constituency, which is only down the road from Chipping Sodbury—as the Secretary of State mentioned, the birthplace of the vaccine used by Edward Jenner.
Jim Shannon (Strangford) (DUP)
It is a pleasure to speak in this debate. First, I congratulate the hon. Member for Airdrie and Shotts (Neil Gray) and wish him all the best as he leaves this place. I always find him a very easy fella to get on with. We have worked together in many debates; usually I intervened on him, and maybe there was the odd time when he intervened on me. We have a good friendship, and I wish him and his family well. We will miss his friendship in the Chamber.
I am a strong supporter of Government’s aim to increase public research and development funding to £22 billion by 2024-25 and to increase overall UK spending on R&D to 2.4% of GDP by 2027. I welcome and am really pleased to see the Government’s proposals. I will not make a plea for my own constituency, but I will make a plea for Northern Ireland as an area where we believe that we can help each other.
If we ever needed proof or a supreme example of just how well we can do things—when I say “we”, I mean the United Kingdom of Great Britain and Northern Ireland; all of us better together under the Union flag, which is where the strength of our co-operation and friendship should be—who could fail to be amazed by the development of the vaccine? From the start to the end, we have got a number of effective vaccines on the streets within a year. After all the difficulties of the last year, the success story has been the vaccine and its roll-out. Which of us did not feel a wee bit better when the vaccines were announced by the Health Secretary in the Chamber? We could almost feel a smile on our face and a skip in our step. That was because of the scientists and the expertise that we have in this great United Kingdom of Great Britain and Northern Ireland, leading the way. That is why I believe that the science and the R&D can and, indeed, will succeed.
I can understand those who are concerned at the speed of the vaccine development—they know that R&D usually takes years, but the coronavirus is an example of where it can take less time. The difference that dedicated funding and governmental support makes is clear. The Government and the Prime Minister in particular initially made sure that money was set aside for the research. Clearly that was a good move, and we thank them for it. The money is there to roll out the programmes, hire the staff and purchase the necessary equipment, and we have vaccines available because we invested; our Government and our country—our great United Kingdom of Great Britain and Northern Ireland—invested.
Imagine what we could achieve if we put resources into other goals—if we thought big and funded those thoughts. Is it wrong to aim for the stars? I do not think it is. In the last year, we have aimed for the stars and achieved it. The right hon. Member for Kingswood (Chris Skidmore) referred to the moonshot goals. One of my favourite films is “It’s a Wonderful Life”. We all know the scene where James Stewart’s character talks about lassoing the moon, and it is not impossible to do some things we have always talked about doing in a romantic way. We can do great things in research and development through the moonshot goals.
Of course there must be regulation and restrictions. Common sense should go hand in hand with idealism, and we must ensure that safety is paramount. If we look at what we have done, it shows the best of British and the best of what we can achieve, with co-operation between Scotland, Wales, Northern Ireland and the mainland, as well as with our international colleagues; what a sight that is to behold. The Bill applies to the whole United Kingdom of Great Britain and Northern Ireland. Supporting scientific research and development sits within the legislative competence of the devolved nations—in my case, the Northern Ireland Assembly—although specific reservations exist, and I look forward to the devolved nations contributing to this process and passing their consent.
In a debate in Westminster Hall last week, at which the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Derby North (Amanda Solloway), was present, I mentioned Queen’s University Belfast and the great partnerships that it has in health research in particular to find cures for diseases such as cancer and diabetes. Every now and again, that research has dividends and they are able to announce some of the good things they have done. Again, I ask the Minister to ensure that we can all benefit from the partnerships with universities and companies. As others have said, universities across the whole of the United Kingdom can deliver opportunities for people to progress their degrees, carry out investigations and find cures.
Northern Ireland has an excellent workforce—highly skilled, young, capable and educated to the standard that we all want. To give just one example, cyber-security in Northern Ireland is the best in the United Kingdom—indeed, the best in Europe. I suggest to the House that our workforce, their skills and their capability be used as we all move forward together.
My one note of caution is that while we must be ambitious, we must also be realistic. There cannot be a blank cheque for any project, but I believe that clause 3, on long-term ambition, must have a common-sense element and that projects must have an end date. We must be aware of our finite budget and of the need to fund projects that can provide immediate results and benefits such as pancreatic cancer drugs. I am my party’s health spokesperson, so I am very interested in how we can work together to find cures for diseases and reduce the number of deaths they cause across the whole of the United Kingdom. I look forward the fund being made available for health projects, as well as technological advances.
I support our research and development, I support the Bill and I support this Government and the Minister in the work she does. The Bill gives us a vision of the future—a vision that we must grasp. We have a glimpse of what we can achieve, and the potential can and must be exploited in a reasonable way for everyone in the United Kingdom of Great Britain and Northern Ireland, always better together.
Mr Deputy Speaker (Mr Nigel Evans)
Before I call the next speaker, I point out that everyone remaining to speak in this debate is from one political party, so if you go wildly over the five-minute mark, you may be pushing one of your colleagues off the list. There is a challenge for Ian Liddell-Grainger.
Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con) [V]
For the next hour, I will enthuse you, Mr Deputy Speaker. Seriously though, the Bill has an enormous amount going for it. It is a good Bill with a lot in it that I feel very comfortable with, although there are always things that one can question.
As you know, Mr Deputy Speaker, one of the great sites in the United Kingdom is in my area—the Gravity site, just outside Bridgwater. This 660-acre enterprise zone has incredible potential. It is run by the Salamanca Group, with enormous support from the local community and Sedgemoor District Council. We could do something enormously important there with innovation, research and, I dare say, the very essence of what we want to be in the future. It is easy for a Government to say they will put all the money into universities or into proven areas, but I think of the Prime Minister’s policy of levelling up and making sure that every region and every area gets part of the money, be it for fusion or whatever. Let us use that constructively.
The Gravity site is halfway between Bristol and Exeter. It is enormous and it has everything in place to enable us to do something remarkable. We are close to Bath University, Bristol University and Exeter University. We could facilitate all this work. We are also very lucky in having next to the site one of the great tertiary colleges of the United Kingdom—the best, in my humble opinion. Bridgwater and Taunton College has 25,000 tertiary students. It has trained most of the people in the local area, including those working at Hinkley Point nuclear station and in our huge distribution and massive manufacturing sectors.
We get a lot of, “This is about innovation,” but so much of what we have had to learn in the past year is about how to keep supply chains running during a pandemic or any other crisis. We have learned that, and that is innovation. That is invention. That is what this is all about—learning from mistakes. We have heard a lot about vaccines, but again, we have a site where we could do this. We want to be levelled up. We want to strive to do better. That is why sites like Gravity in the west country lend themselves to the Government’s being able to say, “Yes, we can buy into this.” When there is a shovel-ready site ready to go, it is fairly easy for any Government to say, “Yes, we can do this.” I would welcome the opportunity to prove our case. I know the Secretary of State is fully aware of the Gravity site because we have talked about it and the opportunities. This is something we have to grasp. It has proceeded somewhat in the teeth of the local county council, which has been particularly unhelpful, but we are ready.
I am conscious of time and that colleagues wish to speak, so let me say finally that I believe that the very future of the United Kingdom lies in innovation. Napoleon called us the country of small shopkeepers. He was right: we are brilliant at this sort of small innovation. So much of the tech, the FinTech and all the other things that we now take for granted came from the United Kingdom. It came not just through our great universities, but through our entrepreneurs—in the west country, we have Dyson, who lives just outside Bristol.
Let us use what is great about Britain, which is our ability to think outside the box, laterally, in a way that turns the world on. Rah-rah Britain, and rah-rah Gravity.
John Redwood (Wokingham) (Con) [V]
Of course I welcome the idea that we should do everything we can to promote greater science and better technology. Our country has a fine history and tradition of scientific breakthroughs and scientific excellence in our universities and our scientific societies. We also have a fine tradition in technology, with entrepreneurs developing new industrial processes and new products and making great breakthroughs that have benefited humanity widely, and of course we should do everything we can to support that. There may well also be a gap that this body can fill between all the methods we have of backing science and technology, and I wish it every success.
In his introductory remarks, the Minister pointed to the recent great success of universities, companies, medics, scientists and Government in coming together—here and elsewhere, but particularly here—on the AstraZeneca-Oxford vaccine. Why did that work? Because there was a very clear, defined task. There was great excellence and expertise already in companies and university science, and the Government helped to bring that together, to pump-prime the process and then to provide very large orders, as did other Governments and health services around the world, to make it worthwhile and to defeat the virus.
Now, we hope that do not have too many of those concentrated needs, but that model worked without ARIA, so this body has to define something a bit different from that. I notice that MPs are already discussing the adequacy or inadequacy of its resources, by which they usually mean money. I do not think it is possible to have any idea of what would be a good and realistic budget for it until talented people have been appointed to run it and have set out what it is trying to do. The first thing the Government need to do, therefore, following the success of this legislation—I am sure it will pass quite easily—is to appoint really great people to lead this organisation who just have that feel, that touch and that intelligence to judge risk, to sense opportunity, to see where the niches are and to define the unique breakthroughs and areas where this body can make a serious contribution. As some have said, a scattergun approach is probably not going to work; trying to do too much across too broad a spread would require a lot of good fortune. This body will need some targeting.
ARIA then has to work out how it commercialises whatever it produces. The UK has had a century or more of plenty of breakthroughs and technical innovations, but in quite a lot of cases we did not go on to commercialise and exploit opportunities, and we allowed others around the world to adapt patents or take the underlying principles and develop their own products, making many more jobs and much more commercial success out of these things than we did. The leaders of this body therefore need to ask how they will commercialise the ideas, how big a role that will play, and at what point they will work with commercial companies that could come in and take advantage.
That leads on to the issue of security. I do not think British taxpayers want to spend more money on blue-sky research and interesting technical ideas only to see them taken away, perhaps resulting in many more products for the Chinese to export back to the United Kingdom. What we want is that integrated approach, where the ideas that the Government have helped to pay for through this body, working with universities and perhaps with companies, can go on to be commercialised and add to the stock of wealth and jobs and make a wider contribution to the human position.
I suggest that the Government link the development of this body to the work that they have started to do, and they need to do much more widely, on national resilience. I am an admirer of what President Biden has set out to do in the United States of America on supply chains. He has a very ambitious programme—a 100-day programme for targeted sectors and a one-year programme for all the sectors of the US economy. It is looking at what America can do better, at where America needs to fill in gaps in her knowledge and understanding of patent, designs and specifications, at where America needs to put in new capacity to avoid shortages or more hostile powers interrupting her production processes by withholding import, and at where the Government machine can use intelligent procurement, appropriate grants and interventions to work with the private sector to have a much better supply chain, creating more jobs and providing national resilience.
I hope that the agency will look at what we can do to ensure that we make our weapons and defence requirements, as the new policy suggests that we will do more often. It should look at how we can grow more food and make sure that we have more of our own fish so that we have fewer food miles and more national resilience in the food chain. It should look at a series of industrial areas where we have in the past been very successful to see where we can improve the technology and add to the UK capacity to produce.
My suggestion to Ministers is that the first task is to get really excellent people; the second is to work with them on defining realistic and achievable objectives; and the third is to ensure that the agency is properly resourced—£800 million might be the right amount, but if the agency comes up with really worthwhile things that look as though they will work, we will want to back it with more money. If it was not getting very far, I think a number of MPs who say that they do not mind failure would become rather more critical. This will need quite a lot of ministerial and parliamentary supervision. I wish the agency every success, and I look forward to hearing to more detail about what it is trying to do.
Chris Green (Bolton West) (Con)
It is a pleasure to follow my right hon. Friend the Member for Wokingham (John Redwood), who captured a number of key issues. He finished on the topic of national resilience, and there are so many areas in our economy and society in which we need to be more resilient. The covid crisis is a particular area of interest, but no doubt many other countries in the world and many organisations are looking at that. It may not be the opportunity on which the Advanced Research and Invention Agency might want to focus. Many other people have focused on the idea of disruptive technologies, which might be particularly well fitted to what ARIA is there to do. Those are areas where industry or sectors have perhaps become complacent, with old, established technologies, and it is about making the next-generation leap forward.
The debate has rather lent itself to the idea of the Haldane principle, going back 100 years or so—to the idea of having a research-led approach that is therefore taken away from the direction of politicians. That approach would be natural and healthy and would complement the wider research, innovation and development ecosystem. I was reassured by what my hon. Friend the Member for Rugby (Mark Pawsey) said; after he had conversations with a couple of his local catapults, they said that they are not worried that ARIA might step on their toes. It is a natural complement to so much else of what the Government are doing. This championing of science, technology, innovation and invention is immensely important, and it ought to be very reassuring to businesses and other organisations seeking to invest in the United Kingdom, and ideally also companies seeking to reinvest from the UK and into the UK. It sends the message right across the world that we are ambitious—the global Britain idea that we are not looking inward and downward but out to the world.
That is part of the reason for our ambition by 2027 to take our R&D spend to 2.4% of GDP. That is a stepping-stone, not the end point of the ambition. The ambition is to get to 3% in the longer term, looking to emulate other countries around the world who do that, and to be competitive. To be in the position we want to be in and ought to be in, we need to be seeking to reach that next level of 3% R&D spend, and ARIA is a stepping-stone towards that.
Ultimately we want high-tech, innovative progress in the United Kingdom. That is not an end in itself. Universities and other organisations are not an end in themselves; they are great generators of wealth to improve our standards of living, but ultimately what people around the country will be focused on is having good jobs. We want people right around the country to be ambitious: to seek jobs in this sector, and to be studying physics and mathematics and all sorts of other subjects that will come into this territory for research and development, invention and innovation.
It will be interesting to see how in future ARIA works on that invention side of things with UKRI, which is still relatively new, to get those inventions into innovation and into businesses, and to create those works and those jobs of the future. We could go on to mention so many different topics from nuclear fusion to the next generation of batteries to satellites. There are so many sectors that involve artificial intelligence and life sciences, and so many of them are in the UK. We are already in a leading position and we have the opportunity to make that leap forward. We do not know what sectors will be around in 10 or more years’ time, but this is the ambition—this is the timeline, this is the vision for the future that ARIA has.
The SNP spokesman, the hon. Member for Aberdeen South (Stephen Flynn), started off with a war of words about where the headquarters will be, and he suggested it might end up being in London. I am sure it will not; I am sure there is a huge amount of competition around the country, and I thought my hon. Friend the Member for Bolton North East (Mark Logan) made a compelling argument for Bolton. I am quite modest in my ambitions and would not demand that the headquarters be located in Bolton West; I will sacrifice my personal ambition for Bolton North East—or even Bolton South East. Where the headquarters ends up is incredibly important as it is part of the Government’s levelling-up agenda, but will my hon. Friend the Member for Derby North (Amanda Solloway), the science and innovation Minister, confirm that, wherever ARIA is based, it will be a collaborative organisation that will do so much for the United Kingdom?
Paul Howell (Sedgefield) (Con) [V]
It is a pleasure to follow my hon. Friend the Member for Bolton West (Chris Green). As mentioned by my hon. Friend the Member for Havant (Alan Mak), scientific and engineering leaders—such as Stephenson who almost 200 years ago started passenger rail travel on the Darlington to Stockton railway on the Aycliffe levels in my Sedgefield constituency —stimulated changes that we could not imagine. The bicentenary of this event in my constituency is 2025 and we look forward to welcoming visitors to see the celebration. This Bill can be an inspiration for more leaders to grow up among our young people as they see that our country supports the development and motivation of great ideas.
In speaking in support of this Bill, I remind the House that we heard in the Business, Energy and Industrial Strategy Committee that the UK ARPA needs to be able to take risks. It therefore must be kept at arm’s length from existing public R&D structures to avoid culture-capture. Many of the UK’s existing research bodies seek to manage out risk, which is contrary to the terms of the UK ARPA, which must be able to tackle high-risk, high-reward projects with pace and energy.
We were also informed that the Science and Technology Committee had been told that creating a British ARPA could be destructive if it were to end up overlapping with the responsibilities of existing structures. It is important that we address these points; I believe this proposal does so but would like the Minister to confirm it. For too long we have not delivered the support that delivers innovation into a commercial space and this can be a lever to help.
I have on many occasions since joining this place referred to the hierarchy of knowledge: there are things we know; things we don’t know; but also things that we don’t know we don’t know. It is this latter space that I have found myself in so many times in the last 15 months. It is also the space that ARIA is to work in. It therefore feels appropriate that its remit is vaguer than some colleagues might like. This clearly makes the determination of its leadership critical, and this process must be credible and given time.
I will further explain my support by using a real-world example from a company that has already raised with me its belief that ARIA can be a force to develop UK innovation. There is a business in my Sedgefield constituency called Kromek. It is an innovation and export-led business in the UK and California that is based at NETPark in Sedgefield, which is the home of similar innovative businesses, including Catapult. Of course, this is in addition to the newly announced economic campus in Darlington that will include an International Trade footprint. The area would therefore be an outstanding site for ARIA to base itself.
Given the space that Kromek operates in and its footprint in the USA, it is very used to working with DARPA. That is interesting, because we understand that the intention is for ARIA to be in the same sort of space. Kromek has worked with a number of innovation agencies. For businesses like Kromek, innovation-led funding that accepts a higher risk can be the key that opens scientific advances quicker. It also provides better opportunities for such companies to develop production and supply chains in the UK, and, in Kromek’s case, in the north-east—helping the levelling-up agenda and frustrating the brain drain.
ARIA can provide transformational change to the innovation landscape by helping to create technology and solutions to address current UK needs. For example, Kromek developed a unique radiation detection solution that is now protecting critical infrastructure in New York. The products developed under this programme have been sold in more than 25 countries around the world so far. Further investment here could mean massive job opportunities. I invite any Minister who is visiting the north-east to join me in visiting this exceptional organisation, to understand the difference that an innovation-led business can make.
Kromek is currently working with DARPA to develop a virus detection system that can detect viruses, including covid-19, in open spaces. With ARIA support, these initiatives could be more UK-oriented and leverage more UK supply chain growth. The company has created a whole biotech part of the business, and because of this funding, this part of the business has already created 20 high-paid jobs and intellectual property in the space; it has real leverage potential.
ARIA, like DARPA, is to be positioned so that it can cut through most of the bureaucracy and act at speed. It is speed and greater risk acceptance that facilitate innovation within the necessary timeframe. For ARIA, we must be cognisant that not all rolls of the dice will be successful, but that the funds we are risking are proportionate and appropriate for the potential they could deliver—not just in hard cash, but also in mindset. Standing behind funds like this gives the investor confidence of intent, and encourages innovation and risk taking.
ARIA can help businesses to develop products and services linked to real-life applications that can meet the needs of the UK. As a result, it can make not only the companies globally more competitive, but the UK more sustainable in its capabilities; and it can drive global Britain as a world leader in innovation. The support of investment in innovation and innovative research, particularly in places such as Sedgefield, has the potential to help build back better and support levelling up. It can also make UK products to support our security forces, and provide the potential for us to be more self-sufficient and an exporter of products, rather than of IP and jobs.
I welcome the creation of this fund and hope that its initiatives are successful. I also hope that the expenditure is viewed in context and does not become the target of pressure from the first failure, but rather that it is given the time and space to deliver.
Nick Fletcher (Don Valley) (Con) [V]
It is a pleasure to follow my hon. Friend the Member for Sedgefield (Paul Howell).
This is the second time I have been able to speak on this programme, the first being in the Budget debate, and it is safe to say that as a proud Conservative and businessman, I am extremely excited about this initiative. This Government have spent much on supporting this country as it has battled against coronavirus, and that has been hugely appreciated by many in my constituency, but now is the time that we look at ways in which we can raise revenue and transform our economy for the better.
The ability to borrow money comes only through being a responsible debtor and showing your creditors that you are serious about paying the money back. If we are to maintain our position as a fiscally prudent country, we have three choices: spending less, taxing more, or growing our economy, primarily through exports. We must not forget that, as predicted by the Office for Budget Responsibility, spending will reduce through the roll-out of the vaccine and the subsequent opening up of the economy. Furthermore, we now know that the books will not be balanced through one-off wealth tax grabs that were predicted; instead, the Chancellor rightly decided to introduce a tiered system of corporation tax while still encouraging investment through super deductions.
Today I want to touch on growth through innovation and exports. This innovative and export-led growth will of course only be possible if the UK has the best products and services to sell. This is possible now, more than ever, as we are no longer constrained by Brussels red tape. By establishing the Advanced Research and Invention Agency, we can finally fund our budding scientists, inventors and visionaries properly. The high-risk, high-value objective of the agency will ensure that the very best talent that the UK has to offer can solve problems, introduce ideas and create technological wonders that would not otherwise be possible. That is not just for show: this new approach will help to create wealth, jobs and prosperous futures for decades to come. After all, similar projects are what led to the creation of the internet and other transformative technologies that we once considered unimaginable. As highlighted, if we are again to become the workshop of the world, research and innovation projects must not be hindered by bureaucracy and slow decision making. Only then can the real risk-takers go ahead so that our innovators can be set free and get on with formulating and envisioning the next great technological changes of the 21st century. With the budget being offered to ARIA, I know they will be able to.
We have seen through this pandemic what talent our country has at its disposal. ARIA will unleash this talent and no doubt help to catapult our great industries on to the world stage, thus bringing our trade deficit and national debt down and supercharging a green industrial revolution right here in the UK. Yet the Advanced Research and Invention Agency can only unleash this talent if its chief executive is forward-thinking and a real visionary, for we are embarking on something truly revolutionary in the world of innovation and technological advancement. In other words, this initiative is far too important to be left in the hands of someone who does not share the stated aim of supercharging scientific discovery. I hope the Department advertises this position widely and is meticulous in appointing the right person who can lead this aspirational agency forward.
As someone who prides themselves on being a constituency-focused MP, I say to the people of Don Valley: “Do not think that what we are discussing here today will not affect you. Quite the contrary; the establishment of the Advanced Research and Invention Agency is as much for you as it is for anyone else in this country, for I know that future innovators, scientists and entrepreneurs from Don Valley will all benefit from this forward-looking, exciting programme.” Finally, if the Government truly want to demonstrate their commitment to levelling up the north, there will be no better way of doing so than by establishing this agency right here in Doncaster.
Jane Hunt (Loughborough) (Con)
It is a pleasure to follow my hon. Friend the Member for Don Valley (Nick Fletcher) and his wise words. For decades the UK has been at the cutting edge of innovation and technology, and our fantastic universities in particular have been a powerhouse of science and research. They include the formidable Loughborough University in my constituency, which has a global reputation for its cutting edge theoretical and applied research. It has been responsible for, and party to, many technological advances and scientific discoveries, including a recently announced and incredibly exciting project that is looking into the potential for human brain stem cells to be used to power artificial intelligence devices and bring about a revolution in computing.
One of my aims as an MP is to assist in creating pathways between our universities and businesses to ensure that talent and research are maximised so that projects such as these can be turned from an initial idea into an innovative and marketable product. As such, I am fully supportive of Loughborough University’s science and enterprise park, which provides businesses of all sizes, including start-ups, with an opportunity not only to collaborate with one another but to access the university’s research base and skilled workforce supply. As the Minister and I witnessed last year in a science showcase in Portcullis House, this country has a wealth of ideas and innovations just waiting to be shaped and developed.
That being said, there is still much more we can do to harness and grow our research and development sector, which is why I am very supportive of the UK’s R&D road map. In particular, we need to focus on creating more and stronger pathways between universities, research establishments and transformational businesses, and on removing unnecessary bureaucracy. That is something the USA does very well, and it is the reason that it is incredibly successful in bringing innovative products to market. I therefore welcome the Government’s proposals for the Advanced Research and Invention Agency modelled on the USA’s Defence Advanced Research Projects Agency. Crucially, we need to ensure that the agency is run by our brightest and best scientists, and that they have not only the funding and freedom needed to identify and invest in the most important and innovative research but the flexibility to redirect funding quickly when a project has come to the end of its lifespan. To that end, I would be interested to hear from my right hon. Friend the Minister how she will ensure that ARIA is not constrained by the bureaucracy that can currently inhibit R&D funding.
Alongside ensuring appropriate funding, flexibility and freedom, we also need to ensure that we mirror the USA’s culture of tolerance for failure, which is a huge part of research and development and often the key to its success. If we allow the risk of failure to hamper research, we ultimately jeopardise our pursuit of breakthroughs and potentially our ability to happen across another promising technology in the process. Instead, we should provide scope for failure within the agency, and I would be interested to hear from my right hon. Friend how that can be achieved.
By creating the space to maximise potential in our United Kingdom, we not only give all aspects of the economy the chance to bounce back now but create new routes to market for the future. New ideas and invention are the ways in which disruptor technology and science are created, leading to a new way of living for our future. Many of the great minds we have in this country have the potential to create great change; they just need the opportunity to come their way. ARIA is the opportunity. Let us not stifle innovation. Let us find the next internet, the next GPS and the next hydrogen technology. Now that we have left the EU, we are in a great position to reimagine how we support our researchers and harness our research base to cement ourselves as a global science superpower. The Bill will go a long way to achieve this, and I will be supporting it today.
Virginia Crosbie (Ynys Môn) (Con)
It is an honour to follow my hon. Friend the Member for Loughborough (Jane Hunt). On Anglesey, we have a huge focus on research and innovation, which fits perfectly with the remit of ARIA. Our island hosts the Menai science park —M-SParc—which is Bangor University’s hub for creative and STEM innovation. The park supports companies and businesses in the low-carbon, energy and environment, ICT and natural product sectors, and links into the green energy agenda that Anglesey embraces through its Energy Island initiative. Professor Iwan Davies, the vice-chancellor of Bangor University, said to me recently:
“At Bangor University we treat innovation and entrepreneurship as an ecosystem with impact. An important pathway to impact is supporting funding for research and I welcome ARIA funding which can support the role that universities can play in promoting innovation, which is so often non-linear in its development.”
M-SParc has already seen the benefits of Innovate UK funding, with more than £1 million invested in 2020 in businesses such as Haia and BIC Innovation. Menter Môn—another resident at M-SParc—has spearheaded the work on the Holyhead Hydrogen Hub, which was awarded £4.8m funding in my right hon. Friend the Chancellor’s Budget earlier this month. Bangor University, M-SParc and Menter Môn are all part of my Anglesey freeport bidding consortium, and we are working together on a proposal to bring freeport status to Anglesey, with an emphasis on local innovation.
Through UK Government funding, businesses and opportunities like these are able to grow and generate much-needed local employment. Young people across the island tell me that they want to be able to afford their own home, bring up their families in their community, and keep the Welsh language and culture alive, and to do this they need a good quality job on Anglesey.
This July I will be hosting an innovation jobs fair at M-SParc which I am proud to say will be opened by my hon. Friend the Minister for Science, Research and Innovation. Not only will this fair highlight the good quality well-paid jobs that are being made available as a result of UK funding, but it will raise awareness among local young people of the opportunities afforded to them through scientific endeavour.
By filling a gap in the UK’s current R&D funding system and focusing on funding paradigm-shifting science, ARIA will provide a new source of finance that can be used by operations such as M-SParc to support transformational science projects that create real long-term benefit locally, nationally and globally.
The Managing Director of M-SParc, Pryderi ap Rhisiart said:
“R&D Funding is crucial for our network of innovative companies on the Menai Science Park. Despite the pandemic I have been especially pleased to see so many tenant companies securing R&D Funding, working with our Universities and growing in the region.”
By stimulating and supporting cutting-edge research and development, the ARIA fund also offers an opportunity for both Bangor University and Coleg Menai to attract exciting new talent to the region, creating further seams of innovation and enterprise.
As a scientist myself, I am excited that ARIA will empower the science community to identify and fund creative and groundbreaking research that can ensure the UK remains at the forefront of global innovation. The fund will allow the UK to be more responsive and flexible so that projects can be supported to give maximum impact.
I welcome the introduction of the Advanced Research and Invention Agency Bill and this new funding agency and I look forward to welcoming my hon. Friend the Minister to Anglesey to open the island’s first innovation jobs fair.
Rob Roberts (Delyn) (Con)
It is a delight to follow my colleague from the beautiful island of Ynys Môn on this crucial and exciting Bill—well, exciting on the Conservative Benches anyway, as I look at the rows of empty seats on the other side of the House.
The UK has always been a world leader in scientific research and innovation. Creations such as the steam engine, antibiotics and even the internet hail from our wonderful shores. Considering that all those discoveries have been instrumental in shaping the world that we know today, I welcome the Bill, which will work to maintain the UK’s position as a global science superpower. The Advanced Research and Invention Agency created by this Bill will allow us to continue to build back better through innovation and will be vital in the UK’s economic and social recovery.
North Wales is no stranger to technological advancements, and I am proud that Airbus has a strong base in our region, with a 50-year plus track record of innovation and technological firsts, meaning that it is a pioneer in the aerospace world. It is fantastic that one of the central elements of the agency is its ability to deliver funding quickly to researchers across the UK; the £800 million committed to ARIA over the next four years has the potential to greatly benefit many different sectors, including aerospace.
As Airbus is so vital to Delyn’s economy, I share a sense of regret a little that the Budget did not mention funding for the aerospace sector through the Aerospace Technology Institute. Airbus has experienced a 69% decrease in net orders compared to 2019, and the additional funding that the Bill provides is needed now more than ever to ensure that research and technological advancements can continue long into the future. I am keen to see how ARIA works with and complements the ATI to further fund world-class research and development in this important sector.
I am likewise ecstatic to see that a key element of the agency includes a tolerance for failure. Failure is an important part of any individual or business life and is fundamental to success. As Thomas Edison said many years ago,
“I have not failed. I’ve just found 10,000 ways that won’t work.”
Without his efforts and many failed attempts, we would not have the technology on which we rely so much today. Failure is particularly central to finding technological breakthroughs that have the potential to create the industries and jobs for the future, and it is fantastic to see that that is recognised in the Bill. I have long said that we need to have a greater focus in the UK education system on skills, because many of the jobs that our children will be going into have not even been thought of yet, and it will be skills and the adaptability of our education and training that will add to and enhance ARIA in future.
I have said many times on these Benches that one of the main reasons that I joined the Conservative party in the first place was empowerment. One of my fundamental beliefs is that capital belongs in the hands of the people, not the state—that innovation is found in the imagination and inventiveness of the community, away from the bureaucracy and painfully slow machinations of government. Therefore, nothing filled me with more delight than read about the agency under the section headed “Organisational Form” the words “small number of programme managers with significant autonomy”, followed by the section headed “Relationship to Government” which included the magic words “very free from Government direction”. It was music not only to my ears, but, I am sure, to those of the scientific community at large.
Throughout history, giants of seemingly disparate fields of literature, science and sport have all agreed with the same principles. Two of my favourite quotes from Einstein are that we “cannot solve our problems with the same thinking we used” to get them, and:
“Logic will get you from A to B. Imagination will take you everywhere.”
He also said:
“I have no special talent. I am only passionately curious.”
It is curiosity and passion for discovery that will chart the course for the future of science in this country.
I mentioned earlier that failure is nothing to be feared and is, in fact, absolutely desirable. One of the most celebrated sportsmen of his generation, Michael Jordan—arguably the greatest basketball player ever to grace the court—said:
“I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. Twenty-six times I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again…And that is why I succeed.”
Another celebrated sportsman, ice hockey star Wayne Gretzky, said that the only thing that is ever guaranteed is that
“you will definitely not achieve the goal if you don’t take the shot.”
In conclusion, the Bill ensures that this Conservative Government maintain their commitment to increasing public research and development funding and ensure that this country remains a world leader in scientific research and innovation. By pursuing a highly ambitious agenda, ARIA will provide transformational science and technology, and I look forward to seeing the economic and societal benefits that it will bring to the UK. Earlier, I mentioned literature, so I will end on a quote from one of the giants, Mark Twain. His words embody exactly what I think this Bill seeks to achieve:
“Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did. So throw off the bowlines, Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”
Andrew Griffith (Arundel and South Downs) (Con)
It is a great pleasure to follow the hon. Member for Delyn (Rob Roberts), who has added to our lexicon of quotes most eloquently today. Today is the national day of reflection, and I join my thoughts to those of the Prime Minister when he said:
“The last 12 months has taken a huge toll on us all, and”—
we offer our
“sincere condolences to those who have lost loved ones.”
I remember my own father, John Griffith, who passed away from covid on 2 April last year.
Sometimes—not often, but sometimes—an idea comes along that makes so much sense that we just want to get on with it and see it succeed. Today’s Bill is one such proposal. It is bold, additive and disruptive, very much like, if I may say so, my wonderful colleagues on these Benches from the 2019 intake—and I will support each and every one of their bids for the location of ARIA. It comes against the context of this Government’s already world-leading approach to research and development: increasing spending to 2.4% of GDP by 2027 and £22 billion by 2024, publishing the R&D road map, setting out a vision for global talent and making the UK the best place in the world for scientists, researchers and entrepreneurs. Only this week, the Government consulted on cutting red tape to free up our brightest minds so that they can continue to make cutting-edge discoveries while cementing the UK’s status as a science world superpower.
If we have learned anything at all from the past 12 months it is that we need more disruption, not less. Look at the success of the Vaccine Taskforce, ably led by Kate Bingham. Last summer, she put her role as a life sciences venture capitalist on hold, and used her industry and investment experience to direct the UK’s vaccine purchasing strategy—an outsider in conventional research council terms; someone empowered to take swift decisions, comfortable with owning those decisions, while politicians had her back, and were not peering over her shoulder.
A year into the pandemic, despite limited buying power, we have secured deals for more than 400 million doses of covid-19 vaccine, and we lead all the global rankings for roll-out speed for a country of our size. It is a magnificent, unadulterated success, but it pains me greatly that, rather than being a united national effort, that had to be achieved in the teeth of opposition, with members of the party led by the right hon. Member for Kingston and Surbiton (Ed Davey) still calling for us to be part of an EU-wide vaccines programme.
Disruption works, and we need more of it. No one is saying that ARIA will live in a bat cave—perhaps it should—or occupy a perfect vacuum, but limited exemptions from freedom of information and public procurement rules make perfect sense. I do not envy the Opposition their job today—clearly neither do they—and I question whether the right hon. Member for Doncaster North (Edward Miliband) was a Cummings-ite. Not only should he accept that as a compliment, but he should know that we generally welcome the Opposition’s constructive tone on the Bill. Perhaps in the winding-up speeches we will learn whether the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) describes herself as a Dom disciple.
The Opposition take issue with the disapplication of freedom of information measures to the new invention agency. I not only point to public bodies that benefit from similar exclusions, including the BBC and Channel 4, but I am very much with the former boss of the right hon. Member for Doncaster North—the former Member for Sedgefield, who wrote in his autobiography:
“Freedom of Information…Three harmless words. I look at those words as I write them, and feel like shaking my head ’til it drops off. You idiot. You naive, foolish, irresponsible nincompoop. There is really no description of stupidity, no matter how vivid, that is adequate.”
I conclude where I began. This is a rare and excellent piece of policy that I hope everyone in the House can get behind. It has been welcomed by the chief scientific adviser, the head of UKRI and the head of the Royal Academy of Engineering. It piles up money invested in research and development to ever greater heights, and by introducing a pinprick of disruptive process and innovation into Government funding, perhaps its biggest long-term impact will not be the money spent by ARIA but the leverage of that disruption, making even more productive the billions of money that is spent elsewhere.
Angela Richardson (Guildford) (Con) [V]
I am delighted to follow my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) and participate in the Second Reading of the Advanced Research and Invention Agency Bill. In what at times has been a gloomy and difficult year since we locked down last March, it is wonderful to debate a Bill that is truly blue sky in its thinking and forward looking, and which delivers on our manifesto commitment to create a high-risk, high-reward funding agency that will drive UK innovation as we build back better from the coronavirus pandemic.
It was a pleasure to discuss the Bill with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Derby North (Amanda Solloway), before Second Reading. I am happy to tell the House, as I did her, that science, research an innovation are certainly not my “Mastermind” subject—as it clearly is for many hon. and right hon. Members who have spoken today. I am grateful for the opportunity to listen to their expertise and important contributions, especially those who outlined our wonderful history as a world leader in innovation in the past. Instead, I have an enormous interest, derived as a constituency MP, in the success of this Bill, and I congratulate all involved on securing £800 million of funding from the Treasury. Guildford is home to the brilliant University of Surrey and Surrey research park, and exciting sectors such as space and satellite. Guildford is not only a UK leader, but a global hub in gaming and technology derived from the gaming sector, such as virtual reality.
Although we do not know what ARIA will eventually focus on, my understanding of the intention behind the Bill is that it is to transform our lives and make the world a better place. I hope that climate change can be tackled as a result of investment in either UKRI or ARIA. I am on record with my desire, expressed at a climate hustings I attended during the general election campaign in 2019, to see brilliant inventions help to tackle climate change. Climate change is a concern I share with my constituents, and I will support any measure to truly improve the future outlook for generations, not only in the UK, but the entire world, which we live in and share.
This is not just about climate change; the research undertaken has the potential ability to transform our way of life through technology, improve economic growth and prosperity, and even to improve the quality of the lives we live, particularly through healthcare solutions. I have been able to witness the wonder of robotic surgery at the Royal Surrey County Hospital; it is truly mind-blowing, and it is technology we have at our fingertips today.
To say that I am excited about this Bill is an understatement. I might have even mentioned to the Minister that Guildford would be an excellent home for ARIA, as we have an innate understanding of the value of research and development, coupled with a cultural appreciation of the long-term benefits that high-risk, high-return investing will bring. Clearly there is some friendly competition for the home of ARIA, having listened to the pitches from many of my hon. Friends today. It is absolutely right that ARIA must sit outside electoral cycles and the day-to-day ministerial functions in order to truly deliver on the Bill’s intention. It fundamentally must be judged by what it learns through failure, rather than what it produces in measurable output, although it is also right that there should be an annual report directly to Parliament—I welcome the inclusion of that in the Bill.
To conclude on a slightly tangential note, ARIA is an inspired acronym. In music, an aria is a self-contained melodious piece for one voice, not the whole orchestra, and so this encapsulates the vision around this important Bill. With its adoption, we can get UK science, research and development truly humming.
Antony Higginbotham (Burnley) (Con)
It is a pleasure to follow my hon. Friend the Member for Guildford (Angela Richardson) and to speak in this debate, because this Bill demonstrates our national ambition. The creation of an Advanced Research and Invention Agency is a clear statement of intent on science and technology, research and development, and innovation and entrepreneurialism. It means that when we say we want to be a superpower in all those things, we mean it and the world knows it. It also means that we have a tangible impact in those areas. All this matters because research, development, science, technology, innovation and entrepreneurialism are directly linked to our prosperity and to the job creation that all our constituents rely on. This is what will determine the kind of economy we have for decades to come, not just here in the UK, but around the world. Will it be an economy based on UK designs and UK ideas, fed by our universities and research centres, businesses and entrepreneurs, or will be a global economy based on the ideas of others? We all know in this House what we would rather it be, and ARIA is the way we can deliver that.
However, there is a question about what we model ARIA on. Is it an accelerator? Is it a funder? Is it a venture capitalist? Or is it a moonshot organisation, one that tackles the tough questions that we might not even have asked yet and that tolerates failure? On that, I recommend that we look really closely at DARPA. We heard from my right hon. Friend the Member for Kingswood (Chris Skidmore), who referenced a number of organisations around the world—not just DARPA in the US, but others in Japan, Germany and other such places—but DARPA has been truly transformational. In 1960, it launched the Transit satellite, the first space-based navigation satellite. Twenty-three years later, in 1983, the US Marine Corps went to DARPA and said that it was fantastic that it had that navigation, but it needed it to be smaller—smaller than we had ever contemplated before—and DARPA did it. That invention led to GPS receivers in our smartphones, smartwatches and cars. It is what allows farmers to irrigate their fields remotely and logistics companies to get products from China to the UK, monitoring from one centre.
In 1969, when DARPA was known as ARPA, it launched the Advanced Research Projects Agency Network, ARPANET, a pioneering network for data to be shared between computers in two different locations. Ten years later, in 1979, it launched the internet protocol—IP—which packaged data up and sent it. DARPA then introduced the computer mouse as a way of allowing us to interface with computers, something now so commonplace that we do not give it a second thought. Much more recently, in 2002, DARPA launched its Personal Assistant that Learns programme to create a cognitive computer system. Today we know that as Siri, and it is on iPhones across the world.
I mention all that because it shows that these things have the potential to shape the modern world, and our ambition and optimism for ARIA should be equal to that. We should aim to shape the world—not just the world we know now, but the world decades into the future—to create the things that we have not even thought about but that will be the backbone of our economy and economies around the world.
However, I want to make a recommendation to the Government. The thing that set DARPA apart and led to its success was having a client—a customer who could ask the questions and show the problems that DARPA then went on to fix, and who could flag the programmes that it needed. We have lots of Departments and organisations that could be that client. It could be the NHS and healthcare. Do we want to be a leader in healthcare, asking the difficult questions and looking for solutions for treating an ageing population and dealing with remote healthcare? Could it be the Department for Business, Energy and Industrial Strategy, looking at how we get battery technology into homes, how we do carbon capture, and all those things? Is it Defence, as it is in the US, with its unique ability to look across the whole of society, from logistics and communications to civil contingency and health? Or is it all of the above? If it is all of the above, then we should match our optimism and ambition with funding.
ARIA demonstrates our ambition to the world. It could, if successful, genuinely shape our economy and the economy of the whole world, but it needs to be given a direction so that it can ask questions, channel research and deliver prosperity for the nation, and it needs to be free from the shackles that normally govern Whitehall, tolerating failure, and allowed to innovate free from political interference.
Jerome Mayhew (Broadland) (Con) [V]
It is a clichéd truism that research and development is the growth of tomorrow. It is an expression of confidence in the future prosperity of our country. Recent modelling by Cambridge Econometrics suggests that increasing R&D investment to 2.4% of GDP by 2027 would boost annual growth by between 1.2% and 1.4%, and increase our productivity by 1%, with further increases thereafter. It is obviously the right course of action for the Government to continue to grow investment in R&D from the historic lows of the last Labour Government.
The lion’s share of Government investment is rightly channelled through UKRI, with its objective of growing a large and vibrant research and innovation culture throughout the UK. UKRI is deeply engaged with both the academic community and the business community, and it will continue to do the heavy lifting in this sector. ARIA will provide something additional to the mix.
Looking around the world for examples of effective applications of R&D investment, I am glad that the Government have learned from the experience of others. DARPA has been instrumental in assisting the crossover of research into commercial opportunities, despite having an overt focus on defence technologies. Given its global impact and consequent reputation, it is surprising to learn that it is a small organisation. I looked it up and found that it has around 220 employees, yet it supports some 250 research projects and has a track record to be proud of, as referred to by many speakers, including my hon. Friend the Member for Burnley (Antony Higginbotham). DARPA has been operating since 1958, so it is fair to say that the Government have allowed the start-up wrinkles to be ironed out before emulating its success.
Much as the £800 million allocated in this Parliament will be welcomed by the research community, the greatest contribution of ARIA will be the expression of intent that it articulates. We are living in a new world in which the cosy certainties of previous years are no longer there. That democratic western societies have technological and economic superiority is no longer a given. Membership of the protectionist European trading bloc has been left behind. Our leaving the European Union has provoked a new spirit of national endeavour. Depending on one’s politics, this is either in response to opportunity or out of necessity—it does not really matter. What is important is that we recognise the change in attitudes and do all we can to promote it.
The creation of ARIA reflects this new dynamism: let us learn from the lessons of covid, breakdown bureaucratic barriers and be prepared to take risks and accept failures as part of the price of ambition. Global Britain must be not just a marketing slogan but a reflection of countless investment decisions in boardrooms right throughout the country. ARIA is part of a wider message to business and society as a whole that post-Brexit Britain is dynamic, taking control of its future rather than just hoping for something that is not too bad. It is saying no to the status quo and its cosy relative decline; it is saying yes to the new, to the unproven, to the possible, to the opportunities of low-carbon growth and to scientific endeavour. It is as much a response to the lessons taught to us by the Chinese Government as it is a lesson learned from the United States of America. I suspect it will just be the start.
DARPA has in the US military a guaranteed customer, helping with the development of commercial products from its technological advances. Close attention will need to be given to this process of commercial exploitation. Is there a role for Government to create markets and prime industries? The deindustrialisation of globalisation has delivered us cheaper products in the short term, but there is a difference between offshoring production, and with it the hubs of capacity and expertise, and growing a resilient domestic manufacturing base. To ignore that is to pretend that the geopolitics of the world have not changed in the past 10 years. We need to respond to that, and the response involves the shortening of supply chains. I therefore welcome the focus on UK exploitation as well as UK exploration.
As for the criticism of the Opposition parties, they have a choice: they can snipe from the sidelines, waiting to pounce on the mistakes of those brave enough to try new things, or they can support our dynamism, recognising that risk and opportunity are the two sides of the same coin. The Government have made the right choice in this Bill and they should be supported.
Anthony Browne (South Cambridgeshire) (Con)
If you do not mind, Mr Deputy Speaker, I wish to make a slight confession: I am suffering from a rather extreme out-of-body experience. I have spent the past three and a half hours listening to Members from all parties—from not just the Conservatives but Labour, the SNP, the Liberal Democrats and the DUP—praising the Advanced Research and Invention Agency. I am having an out-of-body experience not because the House is the most united it has been since I arrived in this place, but because it is so united behind an idea promoted by Dominic Cummings. That shows what an indisputably good idea it must be.
It is absolutely right that the Government do everything they can to promote innovation, which has been the single engine for human progress over the past few centuries. Innovation is the single main reason why our health and wealth are immeasurably better than they were in generations past. Cambridge, my city, is the capital of innovation in the UK and, indeed, in Europe—perhaps in the world. It has had many successes, which have been referred to by a lot of colleagues—it is the global headquarters of AstraZeneca and it has had more Nobel prize winners than almost any country in the world.
One strange feature of innovation is that people often cannot tell where it will lead to when they are doing it. To give one topical example, when the Cambridge researcher Francis Crick was decoding DNA, he had no idea that more than half a century later, it would lead to the Wellcome Sanger Institute in my constituency doing more decoding and genome sequencing of the coronavirus than the rest of the world put together, helping us to track and tackle this pandemic.
The Government do a huge amount to promote innovation already, and we have heard a lot about it this afternoon, so why do we need another agency? Why do we need ARIA? ARIA will help tackle one of the main obstacles of innovation in the public sector, which is that in the public sector, as compared with the private sector, the costs of failure are higher and the rewards for success are lower. What do I mean by that? In the public sector, if somebody fails, they get pilloried in the press and they get the Opposition after them. Ministers have to resign and civil servants lose their job. That does not happen in the private sector. In the public sector, if someone does something that succeeds massively, they do not get bonuses. They are not rewarded by an increase in profits and share prices. The incentives are less.
What we need to do with ARIA is reduce the costs of failure, and that is why it is so important to have a separate, stand-alone organisation that is not part of UKRI—one that has a culture of taking risks and knows that sometimes it is worth having failure. Indeed, if there are not occasional failures, it is not really succeeding in its objective of disrupting and taking risks.
It is important—I urge the Minister to do this—that we help ARIA get more of the rewards for success. Several of my hon. Friends touched on this point earlier. ARIA is able to commercialise and go into business, but let it keep some of the rewards from success, if those projects succeed. That would be a huge incentive for it to try to make sure that those things work.
I have four general points about ARIA. The first is that it must be additional to other forms of research and development. If it is just funding projects that get funded by UKRI already, it is not really doing what it should be. Secondly, it is very important that it can experiment to try out different forms of funding. It has to be able to do a whole range of different types of funding for different projects as it sees fit, and it should be flexible in doing that. For example, we can have a company or academics doing some sort of research that we think is disruptive and amazingly good, but it does not fit into any of the general pots we already have. ARIA needs to be able to give grants to projects that it thinks are worthwhile. It has to have flexibility, and that means not going through the public procurement rules as they exist at the moment.
When I worked in City Hall in London, I was responsible for the London Development Agency, and I did a whole range of projects with public procurement. All I can say is that the only people who think that public procurement rules do not strangle innovation are people who do not have direct experience of them. It is absolutely right that ARIA is exempted from the worst parts of those rules.
Thirdly, picking up on value for money, which some Opposition Members mentioned, it is absolutely right that the Treasury and the Government ensure value for money from public investments across the piece. The Treasury Green Book does that, but it is also right that the Government have a portfolio approach, like a private investor. They might have some lower risk investments in Treasury bonds and then some higher risk investments in venture capital, and they are not all judged by the same rules. We absolutely should not judge ARIA by the same blanket value-for-money rules as we would if we were building a bridge. That would strangle ARIA.
Fourthly, it is absolutely right, as a couple of Members have touched on, that ARIA has multi-annual budgets inasmuch as the Government and the Treasury can allow. Funding disruptive research often takes many years, and simply giving a drip-drip of funding one year at a time will mean a lot of disruptive technologies cannot take flight.
When I was chair of the Government’s Regulatory Policy Committee, I remember civil servants at the Department for Business, Energy and Industrial Strategy saying to me sagely, “Governments have always set up organisations as independent, and then the politicians realise all the problems of independence and then chip away at the independence over coming years, and the organisations gradually get brought down to heel.” It is very important that does not happen to ARIA, otherwise it will lose the reason for its existence. We have heard Opposition Members in particular talk about the need for FOI requests, for procurement rules, for mission statements and value for money assessments. I ask the Minister and the Government not to listen to those siren calls, which will clip ARIA’s wings at birth, and it will then never take flight.
Finally, I just want to settle one little discussion or dispute that we have had this afternoon. Many of my hon. Friends have been making bids for the location of ARIA; we have heard about Bristol, Bolton, Sedgefield, Doncaster and Guildford. I can sort this for the Government. Put the innovation agency where the innovators are: Cambridge—done.
Imran Ahmad Khan (Wakefield) (Con) [V]
I enthusiastically welcome the Bill, which not only fulfils a manifesto pledge made in 2019 but is the first step in demonstrating that the United Kingdom is an innovative superpower in the post-covid world. A high-risk, high-payoff research organisation has the potential to provide groundbreaking innovations with military and civilian applications.
Examining and utilising the United States Defence Advanced Research Projects Agency model in creating ARIA will be critical. I am encouraged that the explanatory notes to the Bill emphasise a desire to do exactly that, but in examining DARPA and why it has been such a success, one must look beyond its organisational structure. The flat management structure, sense of mission, minimal bureaucracy and streamlined process of project approval are all vital to DARPA’s success, but a number of other vital factors must be considered. DARPA’s success has also stemmed from the culture it has fostered and the connections it maintains with industries and academia. Project managers are recruited on a temporary basis from a permanent position in the academic or industrial research community and given tremendous autonomy in their duties.
DARPA has spent more than 50 years nurturing links with academia and industry, and attempting to replicate them hastily in the UK may threaten ARIA’s success. I appreciate that Her Majesty’s Government wish to have ARIA fully operational by 2022. Erica Fuchs’s article “Cloning DARPA Successfully” notes the risk of haste, and I strongly recommend that any of my colleagues who are interested in ARIA read all the arguments that Fuchs makes.
Those sceptical of the importance of DARPA’s model should just examine its successes. The internet, GPS, video-conferencing and the F-117 fighter-bomber—the first aircraft to be designed around stealth technology—are all projects based on funding by DARPA. The Intelligence Advanced Research Projects Activity within the Office of the Director of National Intelligence and the Advanced Research Projects Agency-Energy both have a similar model, focusing on high-risk, high-reward in their relevant areas.
Her Majesty’s Government look to provide ARIA with initial funding of £800 million until the end of this Parliament. But if we truly wish to make ARIA a resounding success, increasing funding, so that more innovative projects can be pursued, will be critical. DARPA had an annual budget of $3.427 billion, allowing for groundbreaking innovations to be achieved. I notice that a number of Opposition Members accuse ARIA of being a waste of money. Projects may well fail, and funding may be turned off, but that should be expected. We cannot expect to make significant gains without there being high risks. I also note that some have raised concerns regarding ARIA’s exemption from freedom of information requests. By doing so, we will reduce the administrative requirements on ARIA, ensuring that it is as flexible and agile as possible. Without normalising the idea of failure, ARIA will not be able to drive forward change in how we conduct research and innovation.
In tandem with establishing ARIA, Her Majesty’s Government have championed research and development, committing to spend 2.4% of our GDP on R&D by 2027 to ensure that we remain a leader in science and innovation. The Bill is vital in establishing the United Kingdom as a nucleus of innovation, but if ARIA is to triumph, we must learn from why DARPA is such a success and how we can adopt its practices.
Duncan Baker (North Norfolk) (Con) [V]
This country is steeped in science and invention, so it is fitting that the Bill paves the way to create an agency that will lead to who knows what UK discoveries and innovation.
Members might not think that my constituency would be home to some of the most famous British inventions we have ever heard of, but they would be wrong. Christopher Cockerell, who was at Gresham’s School in my constituency, began with a prototype using a vacuum cleaner, a cat food tin and a coffee jar. He tested his invention on Oulton Broad in the 1950s, before it became the hovercraft, which saw its first commercial crossing of the channel in 1959. Perhaps one of the most famous inventors this country has ever produced grew up in North Norfolk and retains a close affinity with my constituency. He invented the ballbarrow, before inventing the dual cyclone vacuum cleaner. We all know him today as one of our greatest living inventors, Sir James Dyson.
What those two people have in common, apart from their connections to North Norfolk, is that they failed a great number of times until they created the inventions we know today. That is exactly what is so special about the Advanced Research and Invention Agency—that it will cut the red tape and bureaucracy and enable creativity and talent to take the risks that failure so often curtails before people are ever allowed the chance to succeed. With £800 million behind it, and the freedom to explore, ARIA is the launchpad that could so effectively uncover the next leading and pioneering inventor.
We are a scientific superpower. If anyone has any doubt about that, or about what we are capable of, they need only look at what we have achieved in this great nation in the last year, with the University of Oxford developing the coronavirus jab. That encapsulates why we should invest in science and pour money into such transformative research, which I have no doubt will be necessary again in our lifetimes. Free from the political union with Europe, the Government made the right choice. We sought our own vaccination strategy, and we backed our scientists with millions of pounds to develop the vaccine as quickly as possible. Long-term research investment also helped, and that is exactly what this new fund will provide. Oxford scientists had already been researching a vaccine that could be used against a disease such as covid-19. That research investment, which stretched back years, and the willingness to invest have added to the situation we find ourselves in today.
Sometimes in life, we have to take a little risk if we want to deliver rewards worth fighting for. Those who want to dismiss the Bill should think a little harder. They worry about the immaterial detail rather than the overriding thrust of the Bill, but they have to look back and they have to think, what could be? We should remember what one of the greatest entrepreneurs and inventors of the last 20 years said—a lot of my colleagues have spoken about disrupters, and this person was certainly just that:
“The people who are crazy enough to think they can change the world are the ones who do.”
That was Steve Jobs. This Bill is essential to support the efforts of UK people like that and to develop the entrepreneurs, scientists and researchers of the future. I warmly support the Secretary of State in all his efforts.
David Johnston (Wantage) (Con) [V]
I am privileged to have lots of world-class science in my constituency, not least at Harwell campus, which used to be hidden from Ordnance Survey maps when it was doing what it was with atomic energy, but is now very much on the map of the world’s leading scientific research and development centres in the world. I warmly support what Government do in this area, not least the £800 million that it will put into ARIA, which fulfils another manifesto commitment and takes us further along the route to 2.4% of GDP going on research and development.
When I was reading through the various briefings on the Bill, most of what I wanted to say came under three As. The first A is ambition. I hugely welcome the Government’s ambition to invest more in R and D; their ambition to get better at commercialising the world-class research that we develop; and their ambition to have our version—not the same—of DARPA, which has been so vital to the US and the world with its contribution to things from GPS to the internet.
The second A is autonomy. It is hugely important that we are to give autonomy to programme managers, and not to have Ministers direct them as to what they should research and what they should fund. Let us hire great people and let them do what has made them great. Let them get on with the things that they are successful in, and not ask them to conform to a particular type of what we are used to dealing with.
The third A is acceptance: acceptance of the need to do things differently; acceptance of a greater risk; and acceptance of failure. There is not enough of that in Government. That naturally leads us on to the various exemptions that ARIA will have, which I fully support. It is right that it is exempt from the traditional bureaucracy that comes with Government funding. It is right that we exempt it from public procurement regulations. It is right that we exempt it from FOI. I know that FOI has probably had more attention than other things. We can make a case that FOI has all sorts of benefits, but one benefit that we cannot claim that it has is encouraging people to take risk, because, on the contrary, what it does is encourage people to be risk averse. They may worry that people will go through with a hindsight ruler and decide that they should not have done the things that they did.
I smile to myself when people, whom I hugely respect, start by saying that they support the Government in wanting to do things differently with ARIA, but then come up with a list that is about doing things in the same way that we have always done—how we fund, what rules it is subject to, and putting it under the umbrella of UKRI. The more that we do that, the further we will get away from the purpose of this. Ambition, autonomy and acceptance of greater risk are exactly what the Government should be doing more of. It will help us both retain our own talent and continue to attract more talent from around the world. While we do not yet know what ARIA will create, I am very confident that we will look back and feel very pleased that we created it.
James Sunderland (Bracknell) (Con)
It is a great privilege to speak in this important debate and to be part of an ever decreasing group of diehards from the new intake.
In November 2020, the spending review set out the Government’s plan to invest £14.6 billion in R and D in 2021-22 at 2.4% of GDP. That got me thinking and it got the juices flowing. One thing that struck me most about this Government is their appetite for the future: they plan, they set targets and they invest. They have ambition. They support opportunity. We can name it and it is there: electrification, infrastructure, and emissions. We were the first western nation in the world to specify a carbon neutral target. It is not about plans for the next five years, but about the next generation and over-the-horizon planning, which is really important.
The Bill has everything. It is about performing or commissioning others to conduct scientific research, developing and exploiting, and autonomy. It provides financial freedom for those willing to take the risk. It allows early decisions to be taken, it contributes to economic growth, it promotes innovation and it improves quality of life in the UK because this is about the future, and the future is really important. It also gives the freedom to fail, which for any innovator is really significant. Backed by £800 million of Government investment, the Bill complements the work that UK Research and Innovation and the R and D road map already set in concrete. It is really exciting and I commend it strongly to the House.
The Government have made no secret of their wish for the UK to become the innovation powerhouse of the world. The Bill is about maintaining and enhancing our competitive advantage. It is about synergy between public and private research. We can foster a better collaborative environment, with commercial and state investment coming together. ARIA’s funding will be absolutely pivotal, and I welcome it.
Before I sum up, I want to say that outside London, the Thames valley really is the economic powerhouse of the south-east, and Bracknell, my constituency, is the silicon valley of the Thames valley. With neighbouring Slough having the highest concentration outside London of UK headquarters of global companies, and the offices of 150 international companies in Bracknell, the Thames valley is absolutely ready to welcome employers and innovators to our area. Look at what we already have, though: the UK head office of Boehringer Ingelheim, Daler-Rowney, Honda, 3M, Dell, Waitrose, Fujitsu, Panasonic—the list goes on. It is a fantastic place to do business and I urge any CEO or director watching the debate to bring their business to Bracknell. It is a great place to be.
We often forget just how important innovation is to the UK and across the world. Fittingly, given current circumstances, we should recall Edward Jenner, who created the world’s first vaccine back in 1796. In 1930, Sir Frank Whittle patented the jet engine. More recently, in 1990, in the most important step forward in global communications, Sir Tim Berners-Lee created the worldwide web. What is yet to come? What else is out there? What do we not yet know? The Bill certainly paves the way. To summarise in three simple words: bring it on.
Andy Carter (Warrington South) (Con)
It is a pleasure to follow my hon. Friend the Member for Bracknell (James Sunderland). We have heard about Bracknell; I will tell the House about the wonders of Warrington.
We in the UK have a proud history of scientific excellence and innovation. From the early theorists, such as Sir Isaac Newton and Charles Darwin, to the major scientific discoveries of hydrogen by Henry Cavendish and penicillin by Alexander Fleming, and of course Oxford University’s coronavirus vaccine, we have made huge contributions to science both past and present, so I warmly welcome the plans that the Secretary of State set out today to support and encourage our next generation of pioneering inventors and innovators, backed by this new independent research funder.
By funding high-risk, high-reward scientific research, ARIA will give visionary scientists the support and freedom to identify and fund transformational science and technology at speed. Our brilliant scientists have led the way in the development of the coronavirus vaccine and our high-risk strategy has shown the world what can be achieved when academia and private and public investment are brought together. ARIA will allow the UK to make good on its Government’s ambitions as a global scientific superpower and allow us to contribute to Build Back Better through innovation. The agency will be able to operate flexibly and quickly, better supporting the UK’s most pioneering researchers and, importantly, avoiding unnecessary bureaucracy. By stripping back the red tape and putting power in the hands of innovators, ARIA will drive forward the technologies of tomorrow. While there is definitely space in the UK’s research landscape for a new funding agency that supports that sort of risk and investment, it should be designed in a way that complements the wider system of funding streams that already exist. Will the Minister set out clearly how the new agency will complement the existing bodies?
I want to see funding distributed across our prime science capabilities in the north of England. The Daresbury laboratory sits on my constituency doorstep, so towns such as Warrington, perfectly located midway between the two great northern cities of Liverpool and Manchester, could really benefit from such investment, allowing the high-tech sectors that develop there to be rocket-powered. I am sure that the hon. Member for Weaver Vale (Mike Amesbury) will not mind my plugging the opportunities further to bolster the Daresbury campus, which is recognised as the north’s centre of excellence for innovation in high-tech business from start-ups to multinationals across all kinds of sectors and research disciplines, including the growth challenge areas of healthcare, energy, environment and security.
As the Minister will know, the Cockcroft Institute and its particle accelerator research already has a home at Daresbury, and I know there are spaces there for a few more new ideas. Warrington is also well known as the research centre for the nuclear sector, and building on that campus at Daresbury and encouraging collaboration between the brightest minds and those that are already in the north-west means we have an opportunity to level up through the programme. Life sciences make up an integral part of the north’s economic ecosystem, generating £7.5 billion annually for UK, but the north has historically been underfunded for research and ARIA offers a great opportunity to narrow that divide.
A report published just last week shows that in the past 10 years, 72% of additional jobs created in the 10 most R&D intensive industries were located in the regions covering London, Oxford and Cambridge, despite those regions containing only 20% of the population. In 2018, London and the south-east received almost 50% of Government and UKRI’s total R&D spending. The Nesta report estimates that the regions outside London and the south-east have missed out on Government R&D funding of about £4 billion each year, which could have leveraged a further £8 billion from the private sector.
For ARIA to achieve its transformational change, it must work closely with industry partners. The north-west of England receives private investment in R&D at three times the rate of public investment. Industry recognises the opportunity available in my region, and ARIA is an opportunity to add extra drive and open up more opportunities in constituencies such as Warrington, where jobs and livelihoods are already supported and sustained by the thriving Cheshire life science corridor. We are already seeing northern universities collaborate through the Northern Health Science Alliance, N8 and the introduction of Northern Gritstone. We just need to give them the financial backing and the freedom to make this happen. I very much welcome the plans set out today and look forward to supporting the Bill later.
Aaron Bell (Newcastle-under-Lyme) (Con)
It is a pleasure to follow my hon. Friend the Member for Warrington South (Andy Carter), and a particular pleasure to do so in person. He and I have been hanging around the same Zoom waiting rooms for much of the winter, and it is nice to be back in the Chamber.
As my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) said at the beginning of his speech, today is the national day of reflection as we look back over the past year and remember our collective loss and, for many people, including my hon. Friend, our personal losses, but also look forward to a brighter future. That brighter future is because of science. In the past year, it has been a privilege to serve on the Select Committee on Science and Technology, together with the Chair, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), who spoke earlier, and other Members who have spoken in the debate—my hon. Friends the Members for Bolton North East (Mark Logan) and for Arundel and South Downs, and the hon. Member for Glasgow North West (Carol Monaghan). I praise the Clerks of the Committee for all the work they have done. We have had a number of sessions on covid at very short notice and have also considered ARIA—or ARPA as we knew it at the time, and I have in my hand our report which was published on 12 February.
Looking at the past year and the work that the Science and Technology Committee has done, there is a real read-across from what happened with covid to ARIA. As I said in my intervention on the Secretary of State, at its best ARIA will learn from what we have done on covid in the past year. If covid has a silver lining, it is what it has enabled us to do in the science sphere, allowing us to throw off some of the shackles related to funding, innovation and things such as mRNA vaccines.
The Government have not exactly followed the Committee’s recommendations, and that is fair enough, but the Secretary of State was very forthcoming when he gave evidence to us last week about the reasons for that. As my right hon. Friend the Chair said, it is easy to dissipate £800 million. I know that it sounds like a lot of money, but in the context of our overall science budget it is not quite all that much. The Committee recommended that there be a client, but if there is not to be one, it is important that there is focus. If we are going to have focus, the leadership of ARIA will be key. I hope that our Committee can be involved. There has not been an Order in Council because ARIA does not yet exist, so there is no pre-appointment hearing, but I hope that our Committee can speak with the prospective chair and chief exec of ARIA.
Let me turn to some of the detail. I am pleased to see the range of innovative funding envisaged for ARIA, particularly through prizes, which can leverage huge amounts of private sector investment. We have this target of 2.4% of GDP for R&D. It is all very well spending more Government money, but the key is getting more private sector investment to get us to that 2.4% target. Any ways that we can leverage private sector investment through ARIA would be hugely welcome. We are also looking into grant-prize hybrids, seed grants for very early stage developers and equity stakes. As many hon. Members have said, including my hon. Friend the Member for North East Bedfordshire (Richard Fuller), we need to be better at capturing the commercial benefit of the world-class science that takes place in this country, and perhaps equity stakes through ARIA can be a part of that.
Our Committee took evidence from a number of organisations in our inquiry into what has now become ARIA. We heard from organisations that had worked well, such as DARPA, and some that had not worked quite so well. I wonder whether the sense of crisis to which I referred earlier is necessary for these sorts of things to work. In world war two, the Manhattan project obviously led to the atomic bomb. The cold war led to DARPA and the need for the United States to secure its own defence. What we have seen in the last year with covid has led to so many innovations in vaccines, therapeutics and beyond that will last well beyond this period; as was said earlier, these innovations may ultimately save more lives than have been lost, because of the speed of their development.
If ARIA is to work well, it needs somehow to harness that sense of crisis, and the breakthrough, breakneck response to crisis and existential threat. It needs the space to do so, autonomy from the Government and the freedom to fail. Science often learns more from what does not work than what does.
Before I draw my remarks to a conclusion, it would be remiss of me not to make my own pitch. Keele University in the wonderful constituency of Newcastle-under-Lyme is a fabulous university. It is a university enterprise zone and part of the Energy Research Accelerator, which links up multiple universities and private sector organisations across the west midlands. We also have a fabulous science and innovation park. We are a proud host of Cobra Biologics, one of the manufacturers of the amazing Oxford-AstraZeneca vaccine that is doing so much good in this country. It is not doing so much good elsewhere because of some rather foolish remarks by regulators, but we are very proud of our vaccine; if other countries do not want it, we will have it.
ARIA is a great idea. Like many of its would-be projects, it has the potential to be bold and transformative itself. But it also has the potential to fail, or at least not to work for as long as we might hope. I welcome the 10 years that we have set out in the Bill to give it a chance to work. Many iconoclastic structures end up being captured and overrun by bureaucracy; we must be really careful in that regard. As the Bill progresses through this House and the other place, I hope that the Government will be very firm in resisting all those who would strangle it at birth.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the final Back-Bench speaker, Richard Holden.
Mr Richard Holden (North West Durham) (Con) [V]
Some places save the best until last, but I am afraid that the House of Commons just saves the Member for North West Durham.
It is an honour to follow my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) and many hon. Members from across the country who have been so positive about the Bill. I speak in support of the Bill, because through it we will create the Advanced Research and Invention Agency. Britain can finally back the sparks of creativity that flicker in the dark space—too often infrequently sampled by our existing scientific research institutions
ARIA will enable us to press forward on the global stage at the cutting edge of innovative scientific research, and to maximise the opportunities that science can bring to the benefit of my constituents in North West Durham, to our United Kingdom and to humanity. A few months ago, those words may have perhaps sounded hyperbolic, but, as many hon. and right hon. Members have mentioned, the United Kingdom’s world-leading vaccine programme has changed all that. Moreover, Madam Deputy Speaker, the ability I am afforded today to speak to you virtually in our historic House of Commons Chamber from my constituency office in Consett through the use of the internet is a product of innovation in digital telecommunications—innovation backed in its inception by the United States in a nimble, non-bureaucratic institution called the Defence Advanced Research Projects Agency. As many hon. Members have noted, by backing a few brilliant minds with a modest sum, that institution helped to develop and pioneer technologies such as the internet and GPS—innovations that have since generated trillions in pounds wealth, and, on the human level, kept the lonely connected throughout the pandemic. On a personal note, it allowed me to see my own grandmother in the weeks before she died—something that just a few years ago in similar circumstances would have been impossible.
The scientific research institutions we have today include UKRI, which incorporates our seven research councils. It backs bidders from business and academia to identify important societal and industrial challenges faced by the UK that might merit financial support from the industrial strategy challenge fund. It sets its assessment against aims set out by the Government to raise long term productivity and improve living standards. This has, for example, aided the development of batteries for electric vehicles, which has no doubt helped companies such as Nissan, one of the largest employers of my constituents. It has helped to transform food production, backed clean growth, advanced artificial intelligence and big data, and assisted in projects aimed at tackling our ageing society.
Combined with the largest ever increase in funding—over £22 billion—for UK research and development announced by any Government, one might ask, “What’s wrong, then?” Well, like many similar institutions in comparable nations to ours, UKRI is rigged to the academic calendar. It naturally focuses on papers with “sound” cases, it is tethered to burdensome bureaucracy, it is slow off the mark, and unfortunately it is, far too often, too risk adverse. If the men and women who kicked off the industrial revolution in constituencies like mine had been as risk averse, I wonder if it would ever have happened—whether the sparks that ignited the first industrial revolution and literally forged a new world in constituencies like mine would ever have come to pass.
As we look to the fourth industrial revolution, that risk-averse situation is what we are facing today. A constituent of mine, Professor Pal Badyal of Durham University’s chemistry department, who is a member of the Royal Society, has founded three successful start-up businesses and is one of the leading scientists in his field, has struggled to gain funding for his research into antiviral surfaces, despite successful preliminary proof of concepts funded by Durham University. This professor previously invented the waterproof coating for smartphones. That idea was turned down by UKRI for being “out of scope”, only to be subsequently adopted by industry an entire 10 years later. This waterproofing technology can now be found on over 1 billion smartphones worldwide. There exist in the world many such sparks of creativity in science and other fields that fizzle out, out there in the dark space. Far too infrequently are they nurtured by our existing scientific research institutions. In the case of Professor Badyal, his first spark came to light 10 years later through industry, but his latest, on antiviral surfaces, could save lives today and tomorrow. We cannot afford to miss out on such innovation.
This Bill creates ARIA, which can operate at pace, undertake groundbreaking research and back our scientists with its high tolerance for risk of failure. Decisively different, with less bureaucracy, ARIA has the power to launch dynamism supported but unfettered by the usual constraints of government. Clearly, as many Members have said, the role our scientists have played in jabbing our way to freedom throughout this pandemic, the spirit they have showcased in innovating the Oxford vaccine at pace, the generosity shown through their decision to do so at cost price, and the early backing with generous funds from our Government has afforded Britain a leading role in freeing the world from the coronavirus pandemic. Spirit, pace, backing and benefit: that makes the case for ARIA and this Bill better than any words any Member could hope to say. I urge hon. Members across this House to support the Bill and to back those sparks of innovation that can benefit my constituents in North West Durham, help us to level up the north of England, turbocharge our United Kingdom, and benefit the world.
Chi Onwurah (Newcastle upon Tyne Central) (Lab) [V]
It is a real pleasure to respond to today’s debate, which has in many ways shown this virtual House at its best, united by cross-party consensus on the importance of science and support for our scientists. I thank all hon. Members who have spoken so constructively on both sides, even if I cannot do justice to every contribution. As the shadow Secretary of State emphasised, it is vital that we get the Advanced Research and Invention Agency right. As many hon. Members have observed, the UK has a proud tradition in science, engineering, innovation, research and development; it is renowned across the world. The Secretary of State mentioned the discovery of penicillin. The hon. Member for Havant (Alan Mak) referred to the spinning Jenny and Stephenson’s Rocket. As a chartered engineer from Newcastle, I particularly appreciated the last example, and I would add to it the steam turbine, invented on the Tyne by Parsons. It made cheap and plentiful electricity possible, revolutionised marine transport and powered our Navy.
Again and again, UK science has pushed back the boundaries of knowledge, shrinking the vast expanses of ignorance which, as the pandemic has shown, may threaten humanity’s very existence. And science is a key economic driver. Our university research base alone contributes £95 billion to the economy, supporting nearly 1 million jobs in science institutes, charities and businesses of all sizes. Research by Oxford Economics commissioned by the Department for Business, Energy and Industrial Strategy found that each £1 of public research and development stimulates between £1.96 and £2.34 of private research and development in the long run, and together they help address the key challenges facing humanity, from climate change to inequality, from pandemics to productivity. As my right hon. Friend the Member for Doncaster North (Edward Miliband) said, Labour recognises that the UK needs new mechanisms to support high-risk/high-reward research. As such, ARIA is a step in the right direction. The United States Defence Advanced Research Projects Agency programme, which the Secretary of State cites many times in his statement of policy intent, has helped give us inventions from the internet to Siri, from cyborg insects to GPS technology.
Of course we want Britain to back similar high-risk/high-reward research that unlocks the full potential of our scientific creativity. But there are concerns—concerns shared across the House. Many Members highlighted the lack of direction for ARIA. The Secretary of State claimed that the Bill equips ARIA with the “tools and freedoms that it needs”. By implication, then, it doesn’t need a mission. But the renowned economist Professor Mariana Mazzucato has said:
“ARIA should be oriented around societal challenges with broad buy-in that define the 21st century and can just as effectively stimulate cross-disciplinary innovation, for example climate change”.
The Institute of Physics has said that a clear mission is “essential” and the Chair of the Science and Technology Committee raised concerns about ARIA’s lack of “focus and purpose”. Setting a mission would bring together business, Government and the wider public in support of ARIA. This Bill seems more designed to set it adrift.
We heard from Government Members best described as the disciples of Dominic Cummings. The former adviser to the Prime Minister said that the UK was in need of a blue skies thinking agency. But can I gently suggest that we should not test Mr Cummings’ ideological eyesight by driving to a scientific Bishop Auckland without a credible mission—not with public money at least. On the “Today” programme this morning, the Secretary of State for Health said that the vaccine programme
“will be a model of how Governments can make things happen and move fast and deliver for their population”.
But not, it would seem, when it comes to scientific research. The vaccine programme definitely had a mission.
Leadership in any organisation is critical, but ARIA seems entirely dependent on its CEO and chair, with little external accountability or ministerial direction. Hon. Members, including the hon. Members for North East Bedfordshire (Richard Fuller) and for Richmond Park (Sarah Olney), highlighted some of the concerns this raises, including the potential for crony and vanity projects. I would like to add two points. First, however great the initial CEO and chair are, they will move on. What then? Secondly, science is a collective endeavour— perhaps one of the greatest collective endeavours—yet the Government seem to believe that by recruiting one or two star performers, ARIA can transform our science landscape. We need to build an institution that furthers our societal aims for decades to come.
The Secretary of State tried to present freedom of information as an obstacle to the UK being a science superpower, but he also said that ARIA was inspired by DARPA in the US, which is subject to freedom of information. We are concerned that this Government are driven more by an ideological disdain for scrutiny than by a desire to further UK science. The Campaign for Freedom of Information shares our concerns, fearing that without public accountability, ARIA will lack the weighty public interest needed to support its mission.
I also want to add a word of warning here, echoing the words of many Members today including the Chair of the Select Committee, the right hon. Member for Tunbridge Wells (Greg Clark), and the chair of the Parliamentary and Scientific Committee, the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe). Let us not kid ourselves: high risk means failure. There will be failures—high-profile, expensive failures with public money. Is the CEO expected to weather that storm without ministerial accountability? Is it the Government’s intention to be able to throw ARIA to the wolves and keep Ministers safe?
The creation of ARIA must not serve as a distraction from the UK’s wider research and development challenges. My hon. Friends the Members for Cambridge (Daniel Zeichner) and for Sheffield Central (Paul Blomfield) both emphasised the lack of certainty and ambition on science funding now, and they both represent great science communities. The Government are reportedly on course to miss their target of spending 2.4% of GDP on R&D by 2027 following cuts to overseas research, which the vice-chancellor of Newcastle University, Chris Day, tells me may lead to immediate redundancies in the north-east. Labour is committed to raising the proportion of GDP spent on R&D to 3%, and for this Government to fail to reach their target of 2.4% would be shocking indeed.
Further, and even more astonishingly, just two weeks before the new financial year, the scientific community still does not know what funding is to be allocated for science. Just this morning, the Secretary of State did not deny the prospect of £1 billion-worth of cuts to next year’s science budget. He must stand up for science in his negotiations with the Treasury. I am sure I am not the only one to be somewhat dismayed by the languid tone, during his short opening remarks, in which he said that discussions were ongoing.
The Government have also failed to support medical research charities. They have failed to support early career researchers and doctoral students during the pandemic. The Government like to talk up research, but their actions do not match their words. My right hon. Friend the Member for Doncaster North asked how ARIA would work with existing bodies, given the lack of clarity on its mission. I am concerned that it may end up competing for existing funding rather than leveraging in new funds. That is a criticism levelled against some catapults.
It is also interesting that the worked example in the statement of policy intent from the Secretary of State uses—I think that is the most appropriate term—a female programme manager. Women are hugely under-represented in science research. They make up just 15% of the principal investigators applying for Engineering and Physical Sciences Research Council grants, for example. I am sure the Minister would agree that this lack of representation holds science back, and I hope she will tell us how ARIA will help to address that and the other fundamental disparities in science.
Labour wants ARIA to be a success, and we support its creation. We believe that science is an engine of progress and that ARIA can accelerate it, but we also believe that it must have a clear mission to address our great societal challenges and that it must be accountable. It is not as if there is a lack of challenges for it to address. Indeed, they are many, but without direction from the Government, the agency risks losing its way. We are determined to amend the Bill to empower ARIA to succeed, and I look forward to working with Members across the House to achieve that.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I, too, want to go, “Yay!”, because this has been an absolute pleasure. As the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) said, we have seen the House at its best, and it is a great pleasure to take part in the debate. I listened to the fantastic contributions, and I thank all hon. Members for their thought-provoking input. Without exception, the debate indicates how essential and central science is to our economy and society. That has been recognised across the House, so I shall expand on how ARIA will build on the strengths of our R&D system.
The proposal to create the Advanced Research and Invention Agency—ARIA—has been welcomed by leading scientists, institutions, businesses and colleagues today. We have listened to agencies around the world, and consulted the research community at home. The hon. Member for Richmond Park (Sarah Olney) asked about that. We have, of course, considered carefully the recommendations of the Science and Technology Committee, brilliantly chaired by my right hon. Friend the Member for Tunbridge Wells (Greg Clark). I am confident that this is a bold, brave and positive step towards our ambition to cement the UK’s position as a science superpower. One of the things that we must be clear about is the way in which ARIA fits into the wider landscape and what it will achieve. My right hon. Friend and the hon. Member for Newcastle upon Tyne Central asked how we would define ARIA’s purpose, so let me set that out.
ARIA will fund high-risk, high-reward research in a different way from UKRI and the rest of the system. As my hon. Friend the Member for North East Bedfordshire (Richard Fuller) highlighted in his excellent contribution, ARIA will give us something genuinely different, drawing on the UK’s existing R&D strengths. In that way, it will reach fantastic people with brilliant ideas who are not currently funded.
There have been several questions about funding, but I think that the Secretary of State made the position clear. The right hon. Member for Doncaster North (Edward Miliband), my right hon. Friend the Member for Tunbridge Wells, my hon. Friend the Member for Havant (Alan Mak), and the hon. Member for Glasgow North West (Carol Monaghan) raised ARIA’s mission and what it should focus on. That is an important issue, and I have listened to the different views with great interest. Climate change has been suggested. The Government continue to invest in net zero, including through the £1 billion net-zero innovation portfolio fund announced as part of the Prime Minister’s 10-point plan. I should make it clear that ARIA’s programme will be motivated by a single clear ambition set by the programme manager. However, those decisions will be made by ARIA, and ARIA’s leaders will be responsible for strategic oversight of their programme portfolio. They will be able to speak to researchers, other funders and Government Departments to help to inform their judgment. There are UK funding programmes for which Ministers set the strategic direction, and ARIA has been set up specifically without those constraints.
The hon. Member for Cambridge (Daniel Zeichner) and my hon. Friend the Member for Rugby (Mark Pawsey) asked about the need for ARIA to have a specific customer. ARIA’s groundbreaking work will absolutely draw partners for its projects and programmes, but we want to leave the door open for it to be able to forge those relationships across a range of sectors.
The hon. Member for Aberdeen South (Stephen Flynn), the hon. Member for Richmond Park and my hon. Friend the Member for Rugby asked about recruitment and ARIA’s culture. I recognise how crucial that that will be for ARIA, which is why we will recruit a CEO to provide the creative, inspiring leadership that the organisation needs—someone uniquely able to build a team of high-performing people. That will not be on a whim. We will conduct a genuinely open and fair recruitment process for a CEO and chair.
The hon. Members for Aberdeen South and for Glasgow North West asked about the oversight that Government will have. The hon. Member for Midlothian (Owen Thompson) queried the way in which we will hold ARIA to account. They are absolutely right that ARIA will be at a greater distance from central Government than we are used to. That is a deliberate move based on international experience. The evidence suggests that freedom and autonomy is what makes this kind of agency work. I am mindful of the effective governance of ARIA, which is incredibly important, but it must be tailored to ARIA’s objectives if we are to get the balance right—and it is about balance. There are powers in the Bill for the Secretary of State to intervene on issues of national security and to introduce additional procedures to measure conflicts of interest. They sit alongside powers to make non-executive appointments to the board, which will of course include the Government chief scientific adviser in an ex officio role. The arrangements are robust.
The right hon. Member for Doncaster North and the hon. Member for Airdrie and Shotts (Neil Gray)—whose final speech was commendable; I wish him the very best—raised the Freedom of Information Act. ARIA will have a very small number of staff, and because of the load that FOI requests would place on the organisation we do not think they are the right way to provide scrutiny. I remind Members that the Departments and public authorities that work with ARIA will of course be subject to FOI requests. There will be other statutory commitments to transparency. The Bill makes it clear that ARIA will be required to produce an annual report on what it does, which will be laid before Parliament alongside its accounts.
The hon. Members for Aberdeen South and for Airdrie and Shotts also spoke about procurement. The Bill exempts ARIA from the obligations on a contracting authority in the public contract regulations, but procurement decisions will be taken by ARIA, not by Ministers. It is because it is one step removed from Government that the exemption will empower ARIA’s talented programme managers and directors. Again, the freedom to act quickly will be balanced by the requirement for ARIA to audit its procurement activities, as set out with the Department in the framework document.
The hon. Members for Cambridge and for Airdrie and Shotts, my hon. Friends the Members for Bolton North East (Mark Logan) and for Bolton West (Chris Green), and many other Members made representations on ARIA’s location. I recognise that they care passionately about the scientific excellence found in all parts of Bolton, Cambridge, Airdrie and, of course, right across the UK, but ARIA will be run by a small number of people and will have a small physical presence, and the potential candidates to be its CEO and chair will have a strong interest in the location of the headquarters. I cannot commit to a specific location at this stage, but if ARIA is to deliver UK-wide economic benefits, it should, like UKRI, function and deliver on a UK-wide basis. Stakeholders in the devolved nations—such as Universities Scotland—have been clear in their support for that approach.
Let me finish by thanking Members from all parties for their rich and considered contributions. My door is always open and I invite any Members who wish to discuss the Bill with me further to do so. We must remember that the United Kingdom is a hotbed of brilliant invention and innovation. The Secretary of State spoke about our proud history of scientific excellence, which I am confident the creation of ARIA will help to safeguard far into the future.
In the previous century, the US ARPA funded the ambitious research that underpins the internet and GPS—technologies that have transformed our lives, opened countless avenues of inquiry and created extraordinary value. Such successes do not happen overnight or by accident; they all start with a wild ambition that is nurtured into reality against all the odds. It is this ambition that will course through the veins of ARIA’s staff and the talented researchers they fund. As Science Minister I have listened to many inspiring scientists and inventors, and it is now my ambition to give their brilliant ideas the best possible chance to profoundly change lives and the lives of our grandchildren—and of my granddaughter—for the very better. I wait with excited anticipation for the remaining stages of the Bill.
Question put and agreed to.
Bill accordingly read a Second time.
Advanced Research and Invention Agency Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Advanced Research and Invention Agency Bill:
Committal
(1) Public Bill Committee shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 27 April 2021.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Proceedings on Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Third Reading No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.
Other proceedings
(7) Any other proceedings on the Bill may be programmed.—(David Rutley.)
Question agreed to.
Advanced Research and Invention Agency Bill (Money)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Advanced Research and Invention Agency Bill, it is expedient to authorise the payment out of money provided by Parliament of any expenditure incurred under or by virtue of the Act by the Secretary of State.—(David Rutley.)
Question agreed to.
Advanced Research and Invention Agency Bill (Carry-over)
Motion made, and Question put forthwith (Standing Order No. 80A(1)(a)),
That if, at the conclusion of this Session of Parliament, proceedings on the Advanced Research and Invention Agency Bill have not been completed, they shall be resumed in the next Session.—(David Rutley.)
Question agreed to.
Advanced Research and Invention Agency Bill
Monday 7th June 2021
(3 years, 6 months ago)
Commons ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 7 June 2021 - (7 Jun 2021)
20:30 - The House divided: - Ayes: 263 / Noes: 364 - Question accordingly negatived.
20:40 - The House divided: - Ayes: 263 / Noes: 364 - Question accordingly negatived.
20:49 - The House divided: - Ayes: 263 / Noes: 364 - Question accordingly negatived.
Stephen Flynn (Aberdeen South) (SNP)
I beg to move, That the clause be read a Second time.
Mr Deputy Speaker (Mr Nigel Evans)
With this, it will be convenient to discuss the following:
New clause 2—ARIA’s primary mission: health research and development—
“(1) The primary mission of ARIA is to support scientific research into human health and the development of new medicines and health technologies.
(2) In carrying out its primary mission under subsection (1), ARIA must prioritise research and development according to the policy objectives of the Department of Health and Social Care.”
This new clause would set ARIA’s primary mission as supporting health research and development and would make the Department of Health and Social Care the Agency’s main client.
New clause 3—Transition to net-zero carbon emissions—
“(1) ARIA must be certified carbon-neutral at the end of each financial year.
(2) 25% of ARIA’s annual budget must be directed towards scientific research and development that will support the UK’s transition to net zero carbon emissions by 2045.
(3) In exercising any of its functions under this Act, ARIA must have regard to the requirement under subsection (1) and the UK’s transition to NetZero carbon emissions by 2045.”
This new clause requires ARIA to be certified carbon-neutral annually, and to direct 25% of its annual budget to research and development that will assist the UK’s transition to net-zero. In carrying out its functions, ARIA must have regard to its carbon-neutrality requirement and the UK’s transition to net-zero.
Amendment 1, in clause 2, page 1, line 7, at end insert—
“(A1) ARIA’s primary mission will be to support the development of technologies and research that support the UK’s transition to net zero carbon emissions or reduce the harmful effects of climate change.”
This amendment sets the primary mission for ARIA to support the development of technologies and research that support the UK’s transition to net zero carbon emissions or reduce the harmful effects of climate change.
Amendment 2, page 1, line 17, at end insert—
“(2A) Where ARIA provides financial support or makes rights or other property available under subsection (2) to an individual who has a family or business connection to a Minister of HM Government—
(a) that individual must make a declaration of the connection as part of the application for support or property; and
(b) the Minister must make an oral statement to the House of Commons within 3 months of the decision being made under subsection (2).”
This amendment would allow for Parliamentary scrutiny of any contracts awarded by ARIA to a person connected to a member of the Government.
Amendment 12, page 1, line 17, at end insert—
“(2A) In exercising its functions, ARIA must have regard to its core mission.
(2B) In this section “core mission” means—
(a) for the period of ten years after the date on which this Act is passed, undertaking activities which support the achievement of the target established in section 1 of the Climate Change Act 2008,
(b) thereafter, mission or missions which the Secretary of State establishes by regulations every five years, and
(c) regulations under this section—
(i) shall be made by statutory instrument, and
(ii) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.”
This amendment would require ARIA to consider its core mission in exercising its functions. For the ten years following the Act passing, that core mission would be supporting the achievement of Net Zero. Thereafter, its mission will be established by statutory instrument subject to the draft affirmative procedure.
Amendment 13, page 2, line 18, at end insert—
“(7) In exercising its functions, ARIA must have regard to its impact across England, Scotland, Wales and Northern Ireland and each region thereof.
(8) The annual report prepared under paragraph 15 of Schedule 1 must contain—
(a) the geographical distribution of ARIA’s investments over the past year, and
(b) the economic impact of this investment in each region and nation of the United Kingdom including the number of new jobs created.”
This amendment would require ARIA to have regard for the benefits of its activities across the nations and regions of the UK in exercising its functions and includes a reporting function, with Parliamentary oversight, on the impact of those activities in each nation and region of the UK.
Amendment 4, in clause 4, page 2, line 25, at beginning insert—
“Subject to paragraph 3(1B) of Schedule 1,”
This amendment is consequential to Amendment 3.
Amendment 6, page 2, line 25, at beginning insert—
“Subject to paragraph 2(3B) of Schedule 1,”
This amendment is consequential to Amendment 5.
Amendment 9, in clause 6, page 3, line 2, at end insert—
“(2A) ARIA must provide the House of Commons Science and Technology Committee with such information as the Committee may request.”
This amendment would require ARIA to share information with the House of Commons Science and Technology Committee when requested.
Amendment 14, on page 3, line 15, at end insert—
“(7) ARIA shall be—
(a) a public authority within the meaning of section 3 of the Freedom of Information Act 2000, and Schedule 1 of that Act shall be amended accordingly, and
(b) a central government authority within the meaning of regulation 2(1) of the Public Contracts Regulations 2015, and Schedule 1 of those Regulations shall be amended accordingly.”
This amendment would make ARIA subject to the Freedom of Information Act 2000 and the Public Contract Regulations 2015.
Amendment 10, in clause 8, page 3, line 26, leave out “, and” and insert—
“(ab) the House of Commons Science and Technology Committee, and”
This amendment would require the Secretary of State to consult the House of Commons Science and Technology Committee before dissolving ARIA.
Amendment 5, in schedule 1, page 6, line 22, at end insert—
“(3A) The Secretary of State may not appoint a person as chair unless the appointment of that person has been approved by resolution of each House of Parliament.
(3B) ARIA may not exercise any functions under this or any other Act, nor may the Secretary of State make any grants to ARIA under section 4 of this Act, until its first chair has been appointed.”
This amendment requires both Houses of Parliament, under the affirmative resolution procedure, to approve the name of the proposed Chair. ARIA may not exercise any functions, nor may the Secretary of State make any grants to ARIA until its first chair has been appointed.
Amendment 3, page 6, line 26, at end insert—
“(1A) The Secretary of State may not appoint a person as Chief Executive Officer unless the appointment of the person has been approved by resolution of each House of Parliament.
(1B) ARIA may not exercise any functions under this or any other Act, nor may the Secretary of State make any grants to ARIA under section 4 of this Act, until its first Chief Executive Officer has been appointed.”
This amendment requires both Houses of Parliament, under the affirmative resolution procedure, to approve the name of the proposed Chief Executive Officer. ARIA may not exercise any functions, nor may the Secretary of State make any grants to ARIA until its first Chief Executive Officer has been appointed.
Amendment 11, page 7, line 1, at end insert—
“(6) The Secretary of State may not make executive or non-executive appointments to ARIA, nor determine the renumeration of appointees, without approval by resolution of the House of Commons Science and Technology Committee.”
This amendment would require the House of Commons Science and Technology Committee to approve the Secretary of State’s nominated executive and non-executive members, as well as their remuneration.
Amendment 7, in schedule 3, page 13, leave out paragraph 11.
This amendment would remove ARIA’s exemption from the Public Contracts Regulations 2015.
Amendment 8, on page 14, at end insert—
“(12) In Part VI of Schedule 1 to the Freedom of Information Act 2000 (“Other public bodies and offices: general”), at the appropriate place insert ‘The Advanced Research and Invention Agency’.”
This amendment would make ARIA subject to the Freedom of Information Act 2000.
Before I call Stephen Flynn, I must point out that there has been quite a significant number of withdrawals from this debate, for obvious reasons. Should anyone else wish to withdraw, will they please do so through the Speaker’s Office so that we can be notified? Also, anybody who is working off the call list and thinks that they are, say, five off, will need to think again. Anyone intending to participate in the debate physically really should make their way to the Chamber.
Stephen Flynn
I cannot imagine why so many people have withdrawn, given the exciting topic that we are going to discuss here this evening. I will speak to amendment 1 and in favour of all the following amendments and new clauses in the name of myself and my honourable colleagues. Of course, the context for what we are about to debate has changed markedly from this morning and, indeed, much of the last week. For the avoidance of any doubt, my colleagues and I were very much in favour of new clause 4, and while the Government may have not been defeated today, their card has certainly been marked.
To the matter at hand, which is of course the Advanced Research and Invention Agency. Much of what I seek to say will repay repetition. Many of the points were covered on Second Reading and in Committee, but I feel it is important that we cover them again, because, despite the concerns that we have expressed on these Benches and that have been echoed by the official Opposition, the Government have not sought at any stage to amend the Bill up until this juncture. That is something of a missed opportunity. The reality is that across the Chamber, nobody is criticising the ethos of the Bill or the aim of the Bill to try to improve the UK’s standing in relation to this specific topic, but we feel that the Government can and should be going further.
The first matter on which that is fairly obvious is the lack of a mission, a purpose, a raison d’être for the Bill. There is no clear mission for ARIA as it stands, despite much to-ing and fro-ing on this topic. The Government have been clear on their reasoning as to why they do not want that to be the case, but I find it extremely regrettable, when we know there is a climate emergency—hopefully everyone across the Chamber is in agreement on that—that the Government still refuse to make the climate emergency a core purpose of ARIA to ensure that meeting our net zero targets is the aim of this agency.
Richard Fuller (North East Bedfordshire) (Con)
On a point of clarification, could the hon. Gentleman tell the House whether there is no mission for ARIA, or is it just that ARIA does not have the mission he has just outlined?
Stephen Flynn
That is an interesting point that. I believe it is regrettable that there is no set mission. The mission should be to combat climate change and to meet our net zero targets.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
As the hon. Gentleman knows, we had these exchanges in the Bill Committee. It is not so much that ARIA had not got a mission; its mission is to discover areas of research that could potentially be high risk but deliver high rewards, but we do not know what those will be. That is its mission, and tying it to specifics such as health research or climate change, although they are very important, would potentially hamper its ability to find that cutting-edge science and make the most of it.
Stephen Flynn
I understand the point that the hon. Gentleman is making, and I am loth to repeat what I said in Committee. I certainly will not mention any of the “Star Trek” references that he made in relation to that specific point. The reality is that we have seen, with the likes of the Defense Advanced Research Projects Agency, how successful things can be when there is a specific mission. I accept that we disagree, and disagree on good terms, in relation to that point, but I re-emphasise that this is a missed opportunity for the Government.
Richard Fuller
I was not on the Committee, but there is a fundamental point here. I recall from the debate on Second Reading that the objective of ARPA is to think beyond what is normally thought about. The issue about the climate emergency is that we know it is a problem. We know that there are multiple solutions in multiple areas, which people are already working on. We also know that there is tremendous commercial interest, from the point of view of people investing in relation to the climate emergency and companies that are trying to sell products in that area. To what extent does the objective that the hon. Gentleman proposes fit that “beyond beyond” mission that I thought was the original purpose of ARPA?
Stephen Flynn
I think it absolutely fits that point. Of course, there could be new solutions that we are not aware of at this moment. On Second Reading, the hon. Member made a similar point, and I said that he should not be so narrow in his view of climate change because to meet net zero we need to operate in a vast landscape. The Government do not seem to be acknowledging that through ARIA. To repeat myself, I believe that that is a missed opportunity.
The Government will point to their energy White Paper and point to the 10-point plan, and perhaps they will point to the North sea transition deal in terms of their aims in relation to combating climate change. That is fair and reasonable, but—notwithstanding the arguments we might have on those points, of which there are many—it does not mean that we stop there, particularly in the year of COP26. I urge Government Members to reflect on that as we move forward in the debate.
That covers amendment 1, which we hope to press later, but we have tabled other amendments. Perhaps the clearest, and the one that needs to be debated in this Chamber, notwithstanding what I have already said, relates to scrutiny—the fact that the Government have sought to put ARIA outwith the Freedom of Information Act 2000. It is no longer going to be applicable to public procurement regulations. That is simply unacceptable and there is no justification for it.
I listened closely to what the Minister had to say in that regard in Committee and on Second Reading, and I have read on numerous occasions remarks made in relation to that point by those on the Government Benches, yet I simply do not understand the logic of why they are doing this. From looking at DARPA, we know that there are 40-odd freedom of information requests—40-odd for DARPA, which is on a scale vastly superior to that of ARIA—yet the Government still seek to move away from that scrutiny. From a public perspective, that does no one any favours. I am sure that, if the Government had their time back, they might do things differently, because ultimately this benefits nobody. All it does is create more clouds of suspicion around what the Government’s activities are.
That ties in with our amendment 2, which relates to cronyism and the need to avoid it. The Government’s record and reputation over the last year and a half have been deplorable. The hon. Member for North East Bedfordshire (Richard Fuller) shakes his head, but that is the reality. There is a reason that his Prime Minister is so disliked and distrusted in Scotland: it is what we have seen over the pandemic—not just from the Prime Minister himself, but from his Ministers and friends, the donors, and the family members who have benefited from contracts. What we do not want to see—what we cannot see—is ARIA becoming a vehicle for that to happen. Our amendment would clearly stop that.
On FOI and procurement regulations, the Labour party has said something similar to us, just with a lot more words. It is within the Labour party’s gift to do so, although I am not quite sure why it did not just agree with us. It can do so on occasion; we will not take it personally.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I thank the hon. Member for his kind words. Of course, the SNP amendments were simply agreeing with Labour’s amendments during Committee. We sought to improve—as we should do—from Committee to Report.
Stephen Flynn
If I heard that correctly, the Labour party is not agreeing with the amendments that it tabled in Committee and that the SNP has agreed to at this point in time, so it had to add more words. But I suppose that is the nature of this place.
That takes me to transparency and scrutiny, and a key token and standpoint of those on the Government Benches: to take back control. I do not suspect that they will agree to the SNP’s view on a mission for ARIA. That being the case, the mission—to all intents and purposes, what ARIA seeks to do—will be determined by the chair and chief executive officer. They will decide what happens. In that regard, the House will, of course, have no say and we suggest that the House should have a say. It is important that this place has a role to play in the process. I would be incredibly surprised if Members who fought so hard to take back control did not seek to have their say on such matters.
Stephen Metcalfe
Why not? I am grateful to him. If we had too much influence over the agency, we could breach the Haldane principle, which I am sure he holds close to his heart, as do I.
Stephen Flynn
I thank the hon. Member for his intervention, but we will have to heartedly disagree on this point. The House, and we as democratically elected representatives, should seek to play as key and active a role as possible. Of course, all this could be avoided by the Government simply agreeing on what ARIA’s mission should be in the first place.
Our new clause 1, on human rights, would ensure that ARIA’s record in that regard is of the highest standing. I certainly hope Members across the Chamber would agree to that. If they did not, I would be somewhat concerned. We saw that in Committee, which took me a bit by surprise, but perhaps some of the Government’s Back Benchers were not galvanised enough to encourage the Government to take a different stand. The SNP tabled the new clause because ultimately we do not know where ARIA will seek to put its investments. We do not know what it will seek to invest in, where it may even take a share in an organisation. It will have the freedom to do that, but that freedom means it may delve into areas we find unsuitable in relation to human rights. That is particularly pertinent when we look at the situation in China with the Uyghurs. I encourage Members on the Government Benches to take cognisance of that fact this evening.
Finally, it would be remiss of me not to mention the role of Scotland in relation to the Bill, because I very much like talking about that. The reality is that, where the Government are seeking to spend money, that Government money should be spent fairly and evenly across the United Kingdom—that is, while we still remain a part of the United Kingdom. To that end, there should be a Barnett share of money spent on Scotland. Where that money is spent, it should not seek to bypass devolution, as the Government seek to do in a number of areas, from the shared prosperity fund to the levelling-up fund and the United Kingdom Internal Market Act 2020. Scotland should have its fair share.
Mr Deputy Speaker (Mr Nigel Evans)
May I reiterate again that anybody who wishes to withdraw from the debate—we have had 35 people withdraw already—should please do so through the Speaker’s Office? If you are on the call list, please do not assume that the people above you have not withdrawn. The chances are that they have.
Mrs Theresa May (Maidenhead) (Con)
Mr Deputy Speaker, I am not sure whether your reiteration just before I stood up to speak, that you hope that anybody who wants to withdraw will do so, was a hint. When I put in to speak in the debate, I had intended to speak on a new clause that has not been selected, but after looking at the other amendments and new clauses, there is one aspect that I want to speak on briefly.
I apologise to those Members of the House who were on the Committee, because I can see that there was quite an exchange on these matters in Committee, but I want to pick up on an issue that was raised by the hon. Member for Aberdeen South (Stephen Flynn), who talked about the need for a mission and, in a sense, to restrict this organisation’s mission. He spoke particularly about climate change, which I know is a key issue. I was the Prime Minister who put the 2050 net zero emissions target into legislation, and the UK can be very proud of having been the first major country to do that.
An enormous amount of work needs to be done to ensure that we can take the decisions individually, as businesses and as a Government that will lead to net zero. Part of that will be about research, but as my hon. Friend the Member for North East Bedfordshire (Richard Fuller) said, there are enormous numbers of people out there doing research and companies looking for products to sell that will help to get us to that position. It seems to me that we should not restrict the mission of ARIA. It is important to give this organisation the freedom to look widely. I say that not just in a blue skies thinking way, but also because I had some interaction with the American equivalent of ARIA, on which ARIA is based, when I was Home Secretary because it was doing some really interesting research and innovative work on issues of security.
In evidence to the Committee, Professor Bond suggested that ARIA should be about
“radical innovation, which is different from grand missions and grand challenges.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 20, Q16.]
That reference to “grand challenges” was, I am sure, a reference to the modern industrial strategy, sadly now cast aside, which set out grand challenges but also set out the aim for the UK to be the most innovative economy, and ARIA can have a real impact in that area.
The challenge for ARIA is that it needs to be truly innovative, it needs to have blue skies thinking and it needs to be doing what other people are not doing, but it has to have a purpose in doing that. What I hope we will not see is an organisation where lots of scientists and people get together, think lots of wild thoughts, enjoy talking about them and possibly publish a few papers, but at the end of the day, there is no practical difference to people’s lives as a result of that. The aim of this is to do that innovative thinking but, in due course, for that innovative thinking—whether it is taken up by other scientists, business or whoever—to lead to a real improvement in people’s lives.
Graham Stringer (Blackley and Broughton) (Lab)
I agree with the line that the right hon. Lady is taking, but she is missing out one really important factor in achieving the desirable objectives she has listed, which is that ARIA must be prepared to fail on a number of occasions and take high risks. Does she agree with that?
Mrs May
I do agree with that. Indeed, at the risk of scratching a sore for the Government, I would add that the modern industrial strategy made the point that, in terms of Government support for different areas of research and development, we must be willing to see some fail, because we cannot possibly know from the beginning everything that will be a success. That is important, but of course, I hope that ARIA will not be an organisation for which everything fails. It has to be prepared to have some failures, but obviously what we want to see is some really positive work coming out of this that can be of real benefit.
Dawn Butler (Brent Central) (Lab)
I absolutely agree with the right hon. Lady about wanting to see ARIA be successful. She talked about scientists sitting around, having a chat and producing some papers but having no real impact. Does she agree that, given the way in which ARIA is currently set up, without any freedom of information requests being allowable, that could be the reality?
Mrs May
No, I do not agree that there is a natural causal relationship between the two. We will see whether ARIA is successful by what actually comes out, because at some point these ideas will come out. I recognise that there are issues for scientists who are really treading new ground, to ensure that they are able to do so with freedom—without that ability being taken away by others. That will be important for this organisation.
It is exciting that this agency is being set up. With the right people, it can do really good things, but it should not be restricted to a particular area of mission. When it does that blue skies thinking, we should ensure that the aim—the reason that the Government are setting it up—is to improve people’s lives in this country. That is what we all want to do and it is what the organisation should be about.
Chi Onwurah
It is a pleasure and honour to follow the right hon. Member for Maidenhead (Mrs May). I am certain that the current Conservative Government could benefit enormously from her championing and promotion of an industrial strategy, and I hope that they are listening.
I thank all those who worked so hard to improve this Bill in Committee, particularly my hon. Friends the Members for Cambridge (Daniel Zeichner), for Brent Central (Dawn Butler), for Luton North (Sarah Owen) and for Sheffield, Brightside and Hillsborough (Gill Furniss), as well as the Clerks and House of Commons staff for their excellent support.
It is vital that we get the Advanced Research and Invention Agency right. Today we will hear many Members—although not as many as we had thought—raise a wide range of important issues such as climate change, regional and national economic development, international development and democratic accountability, but at the heart of this debate is science, which now plays such a critical part in all our lives.
The UK has a proud tradition in science, engineering, innovation, research and development. We are renowned across the world for scientific breakthroughs and discoveries that pushed humanity forwards. From the discovery of penicillin to the invention of Stephenson’s Rocket in my constituency of Newcastle upon Tyne Central, again and again UK scientists pushed forward the boundaries of knowledge, shrinking the vast expanse of ignorance, which, as this pandemic has shown, may threaten humanity’s very existence.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
My hon. Friend refers to some of that world-beating research. I chair the all-party parliamentary group on HIV and AIDS. There has been a great degree of concern among some of our global health all-party groups about the cuts that were and are coming to global health research. I totally support the amendments that we have tabled on climate change; there is also a critical link between climate change and global health. Does my hon. Friend agree that we absolutely need to continue that world-beating research, because it has so many benefits for health not just globally, but in this country too?
Chi Onwurah
I pay tribute to the work of my hon. Friend’s all-party parliamentary group, with which I am quite familiar. I wholeheartedly agree with him about the importance of that research, and about the link between that important research and this agency. I will develop that point further in a few moments.
As hon. Members have indicated, UK science is not only inspiring; it can also be groundbreaking and is a key economic driver. Our university research base alone contributes £95 billion to the economy, supporting nearly 1 million jobs in scientific institutes, charities and businesses of all sizes. Research by Oxford Economics commissioned by the Department for Business, Energy and Industrial Strategy found that each £1 of public research and development—such as the money to be spent on ARIA—stimulates between £1.96 and £2.34 of private research and development, and we cannot recover from the pandemic without inspiring and initiating more private sector investment in research and development. Together, private and public sector research can help to address the key challenges facing humanity—from climate change to inequality, from pandemics to productivity.
That brings us very neatly to the broken promises of this Conservative Government on overseas development aid, as raised by my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), and how that betrays the poorest among us and the critical challenges faced by us all. With over £4.1 billion slashed from overseas development aid, the £120 million cut from science and research programmes may appear minor, but that has already had a devastating impact on science here and abroad. Cutting funding from global challenges research fund hubs, for example, threatens researchers at Newcastle University in my constituency, as well as scientists in developing countries working together on water security. These cuts are a consequence of the Government’s decision to scrap the legally binding 0.7% of GDP target for overseas development aid.
New clause 4 tabled by the right hon. Member for Sutton Coldfield (Mr Mitchell), which sought to reverse that decision, has not been selected for debate, though a debate on the issue may follow; certainly, the debate is not going away. Particularly in relation to ARIA and the amendments before us, it is really important to emphasise that for UK science, research and credibility, these cuts have a significant impact. The UK has been the only G7 country to cut aid in the middle of a pandemic, and in so doing it has united hon. and right hon. Members across this House who are horrified by the harm done—harm such as, in the world’s worst humanitarian crisis, in Yemen, slashing aid by 60% without conducting an impact assessment, and harm such as cutting bilateral funding on water, sanitation and hygiene—
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I would like the hon. Lady to return to the Bill.
Chi Onwurah
I thank you, Madam Deputy Speaker, because that is exactly the point to which I am going—to the amendments. Just to say that the funding for coronavirus research, which is the kind of world-beating or leading research that we would hope ARIA will be looking at, has been cut by 70%, which will kill the project. A Government happy to withdraw support for vital research projects across the globe are not a Government who wish to act in the best interests of science, the country or the world.
On ARIA itself, we have many serious concerns. We recognise the need for new mechanisms to support high-risk, high-reward research in our science sector, and as such ARIA is a step in the right direction. ARIA can transform our scientific landscape and we can build an institution that furthers our societal aims for decades to come, but we have concerns, which our amendments seek to address, about the lack of direction, strategy and accountability in the Government’s current proposals. Without such improvements, we fear that the agency could be used to pursue vanity projects disconnected from the public interest.
The first major issue with the Bill is the absence of a mission for ARIA, which has already been raised. What is ARIA for and what is it working towards? Labour’s amendment 12 would require ARIA to have a specific mission for ARIA’s first decade, and we want that mission to be climate change.
Richard Fuller
I am very grateful to the hon. Lady for reverting to items that are in order today. On amendment 12, she mentioned that that should be the “core mission”. The hon. Member for Aberdeen South (Stephen Flynn) talked about its being part of a bigger whole, but it is still a relatively small amount of money. Does the amendment mean that that is the only mission? Essentially, when she says “core mission”, what she means is the only mission and the agency cannot do anything else other than that for 10 years.
Chi Onwurah
I thank the hon. Gentleman for seeking to aid Madam Deputy Speaker in determining what is in order. I am not sure whether that was necessary.
On the hon. Gentleman’s intervention, I fail to see why he thinks that pedantry can make up for a lack of argument. Climate change is a core mission. We are not seeking to hem in the agency with absolute linguistic barriers for what exactly should be done, but we want it to have a direction. We want to know where it is going and what it is seeking to do. The core mission, as I intend to set out in detail, will be climate change. I do not intend to limit its interpretation of climate change, but I will set out the reasons why climate change will be its core mission.
Stephen Metcalfe
As the hon. Lady will recall, we had similar debates in Committee. Does she completely dismiss the idea that the mission is to find cutting-edge science, to explore it, and to go where no other agency is willing to go at the moment, because they will have to follow too many metrics to prove their effectiveness? That is its mission. This agency does not have to have a mission beyond trying to find something exciting, new and potentially really beneficial to mankind.
Chi Onwurah
I have a huge amount of respect for the hon. Gentleman, but I fundamentally disagree with him on this issue. To go where no one has gone before is not a mission or a direction; it is a deliberate absence of direction. I spoke earlier about the vast expanse of ignorance that can present us with huge, existential challenges. The history of science has been about trying to reduce that huge expanse of ignorance, and for us to leave ARIA without any mission or direction in addressing that vast expanse of ignorance that is before us will severely limit its likelihood of success. That, together with other aspects of the Bill with regard to accountability and transparency, leave it open to cronyism as well as other issues.
Angela Richardson (Guildford) (Con)
The hon. Lady talked about lessons learned from the pandemic. May I ask her to think about the fact that we were prepared for a flu pandemic but not a coronavirus pandemic? By stating that we have to have a core aim or principle for the ARIA Bill, is she not heading for the same problem? She says that this agency must be focused on environmental matters, but if something else were to come along of equal importance, would we not have limited ARIA already?
Chi Onwurah
I thank the hon. Lady for that intervention, which gives me the opportunity to clarify again that the difference between a flu virus and a coronavirus virus may be significant in medical terms, but it is not what we are talking about. We are talking about climate change—the existential challenge. We are not saying that it should be one part of climate change. To say that it is like preparing for one virus as against another virus is not an equivalent comparison. This is a much vaster challenge. Indeed, I think that she answered her own question. If something more important than climate change comes along in the next 10 years, with climate change being the existential challenge of our times, we would have significant issues to face as a Parliament. If she can think of something more important than climate change coming along in the next 10 years, would she like to intervene on me and suggest what that might be?
Dawn Butler
The UK Government have set the most ambitious climate change target, which is to reduce emissions by 78% by 2035. Would it not be ridiculous if ARIA were to pursue something that undid that good work?
Chi Onwurah
Absolutely. As my hon. Friend says, the UK has set the most ambitious climate change target, but the Committee on Climate Change has said that the Government are currently on course to miss their manifesto commitment of achieving net zero by 2050. Amendment 12 aims to support the Government in that mission.
I now wish to make some significant progress in my comments, so I will not take any more interventions for a while. The lack of mission is a concern shared by many. The renowned economist Mariana Mazzucato suggested during the evidence sessions that achieving net zero should be ARIA’s mission. The Secretary of State said that ARIA needs a “laser-like focus”, but failed to provide it. The Institute of Physics said that a clear mission is “essential”, and the Chair of the Science and Technology Committee, the right hon. Member for Tunbridge Wells (Greg Clark) raised concerns about ARIA’s lack of focus and purpose. The president of the Royal Society said that
“£800 million is not a large sum of money, so if we have a plethora of missions, then I think we will go wrong. ARIA has to have focus of mission and a commitment to the model over the long-term”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 63, Q62.]
Madam Deputy Speaker (Dame Rosie Winterton)
Although a number of people have withdrawn from this debate, there are still a fair number of speakers. That means that if everybody takes about six minutes, we will be able to get everybody in. We need to think of each other in conducting the debate. Nos. 4, 5, 6, 7 and 8 on the call list have withdrawn, so we now go to Layla Moran.
Layla Moran (Oxford West and Abingdon) (LD) [V]
As a physics graduate and the MP for Oxford West and Abingdon—a constituency proudly at the heart of this country’s scientific innovation—I welcome much of what ARIA hopes to achieve. Time and again, the lack of funding for genuinely high-risk, high-reward science is a common refrain in conversations I have with scientists I meet, so on the face of it ARIA is a good idea.
Nevertheless, the Liberal Democrats have concerns about the Bill, and I will quickly raise just two. First, we are very concerned about the Secretary of State’s unchecked powers to choose who leads this highly independent agency. On top of that, it was recently revealed that the Government’s intention is to exempt ARIA from freedom of information legislation. Transparency is at the core of good science, as it should be for good politics. If we want this organisation to succeed, the public should have faith in how taxpayers’ money is spent. That is why the Liberal Democrats have proposed a strong accountability mechanism in amendment 11, which would give the Science and Technology Committee the power to approve nominees for the position of chair and chief executive officer.
Secondly, it is beyond disappointing that the Government have failed to use ARIA’s potential to tackle the climate emergency. New clause 3 would therefore ensure that ARIA’s research did not lead to any increase in the UK’s carbon emissions. Moreover, a quarter of ARIA’s annual budget would be directed specifically to the development of green technologies.
In conclusion, transparency and the climate emergency are two of the very many important aspects that are missing from this Bill—ones that we seek to fix. This new agency has great potential. Let us not mess it up now.
Madam Deputy Speaker (Dame Rosie Winterton)
No. 10 on the speakers’ list has withdrawn. No. 11 is not here and Nos. 12 and 13 have withdrawn, so I call Richard Fuller.
Richard Fuller
It is a surprise to be called so early, but it is nevertheless welcome. I was not on the Public Bill Committee, which I know will have been a sadness for all its members, but for me it was of particular sadness because for the future of our country and most other countries, the way in which we nurture and promote innovation is crucial. Although this is a small Bill that generally has wide support across the House, it is rather important that we get it right. It is therefore important that today we debate some of the issues on which the Committee was not able to reach a full conclusion.
Innovation is crucial for our success, and I hope that the Minister and the Department will move on from the fact that we have innovation to look at ways in which we can promote the implementation of innovation, particularly through the removal of barriers and the promotion of competition, so that we can see the fruits of this investment in tangible economic and social success for our country.
Looking through the amendments, I would group them into three areas that it seems were not fully resolved in Committee: first, the extent of oversight; secondly, the issue of purpose or mission; and, thirdly, appointments. On oversight, although each of the proposed steps might be worthy, each of them is also an impediment. If there is one driving value that I hope we have for the Bill at this stage, it is to have the courage to enable this new and additional form of innovation investing to have the freedom to grow and do what it wishes to do.
If, at some point in the future, we find that the programme has gone off the rails somewhat and gone beyond what we know, it would perhaps then be useful for us to put more bureaucratic layers on top of it, but we certainly should not do so from the outset. If we do that from the outset, essentially we are killing the idea in its entirety. It is so easy for us here to say, “We really believe in this, but we would like this or that.” It is quite natural, as protectors of taxpayers’ money—that used to be a role of this House, but sadly it is one that has been lacking for about 40 years—that we want to take that responsibility seriously and to be thorough, but with this Bill we have to accept that if we are going to take that step, we have to put trust in this group. I would be interested to hear what other Members, particularly the hon. Member for Blackley and Broughton (Graham Stringer) with his long experience, have to say about whether this is the right step. I will come back to that point later in respect of appointments.
On the issue of purpose, the Labour Front-Bench spokesperson, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah)—I know she has a strong and real passion for science, and I have listened to her speak up for science over a number of years, so I know her intention is right—has tabled an amendment saying that the core mission should be about the climate change goals. The SNP spokesman, the hon. Member for Aberdeen South (Stephen Flynn), who opened the debate, similarly said that we should focus on the environment.
It is important to ask what impact it would have if we made the environment the focus. We currently have $30 trillion-worth of environmental, social and governance assets in the world. The Bill is proposing to add a flow of approximately $1 billion a year, or 1 in 30,000 of the assets that are already there. In terms of where moneys are flowing, this year’s flow of ESG in the private sector is about $130 billion to $140 billion. If we were to make the environment the core mission, we would essentially be tossing £800 million on top of an enormous pile of assets that is already there and an enormous additional inflow this year that is already happening. By its very nature, we would be doing the thing that we are not supposed to be asking ARIA to do, which essentially is to do what everybody else is doing. The whole purpose of ARIA is to do those things that other people are not doing. I feel that it is a mistake to say, “This is a really important mission—aren’t you terrible for not saying that we should focus on it?”, rather than “There are other missions—there is a bigger mission out there that perhaps we as politicians do not have the insight to understand.” That is the whole purpose of setting up ARIA, because with our bureaucratic fingers and our tiny political minds we just are not able to think of those things. It is worth our while considering that, so I absolutely agree with my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) that it should not have a mission. The whole purpose of ARIA is to do those things that other people are not doing. I feel that it is a mistake to say, “This is a really important mission—aren’t you terrible for not saying that we should focus on it?”, rather than “There are other missions—there is a bigger mission out there that perhaps we as politicians do not have the insight to understand.” That is the whole purpose of setting up ARIA, because with our bureaucratic fingers and our tiny political minds we just are not able to think of those things. It is worth our while considering that, so I absolutely agree with my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) that it should not have a mission.
Graham Stringer
I generally agree with the comments of the hon. Member for North East Bedfordshire (Richard Fuller). Before I get on to the core of the Bill, I would like to pick up on two or three points from the debate.
The hon. Member for South Basildon and East Thurrock (Stephen Metcalfe), with whom and under whose chairmanship I am happy to have served on the Science and Technology Committee, will not be surprised to hear me not quibble but disagree with his interpretation of the Haldane principle, which we have talked about many times. The Haldane principle does not—and never did, from when Haldane proposed it at the end of the first world war—prohibit politicians from saying that we should prioritise health over defence, defence over transport, or anything over anything else. It is to stop politicians interfering in the detailed technical decision of who the best person is to do that research. When we get on to the core mission of ARIA, I would want politicians to do some of that, but not all.
Unfortunately, the SNP representative, the hon. Member for Aberdeen South (Stephen Flynn), is no longer in his place, but it was absolutely extraordinary that he prayed the Barnett formula in aid of regional levelling up. I used to travel on the train from Manchester to London almost every week with Joel Barnett, who regretted the Barnett formula almost more than anything else he had done in his political career. Without getting into a debate, let me say that he understood that it meant people in Glasgow got more public subsidy or support than people in Manchester or Birmingham in very similar situations.
Finally, I would make a point about priorities. Hon. Members have talked about climate change being the top priority; politicians are notorious for having lots and lots of top priorities, but as far as I have noticed, the top priority over the past 15 months has been dealing with covid and the coronavirus. Incidentally, after 25 conferences of the parties, the only thing that has had any impact on the steady increase of carbon dioxide in the atmosphere has been covid: the response to covid has reduced carbon dioxide for the first time since people started talking about it, essentially.
Let me move on to the core issue of ARIA and the points that have been made about it. Now that new clause 4 has been taken off the agenda, the debate is much less controversial than it otherwise would have been, but that does not mean that it is not difficult. As the hon. Member for North East Bedfordshire said, we may not need a mission statement. I go some way along that path with him, having looked at the practical evidence from what happened with ARPA and DARPA in the United States. They were given—certainly at the start of the process when the Americans got frightened when the Sputnik satellite went up—almost complete freedom and a lot of money, and that led to the development of part of the internet. Some of the messenger RNA work that has led to the vaccines we have now came out of the ARPA process, as did drones and many other things. That was not because people were given a mission statement that said, “Develop messenger RNA”; it was because they were looking for problems to solve and to make the United States a more secure society, so they had the most general statements.
What UKRI has done is excellent in many ways, but it has lots of accountability systems. The person who put forward the original idea for doing work on quantum computers stated in evidence to the Committee that he would not get through the process now. Lots of questions are asked, some of them ridiculous. Several Science and Technology Committees ago, Professor Brian Cox came along and we talked about impact assessments whereby every research project has to state how much impact it will have on society. He said, “I have no idea how to answer that question and nor do my colleagues.” The normal metrics are about citations and numbers of papers. Even when I was a scientist, a long time ago, I used to see chemists churning out papers, sometimes on ridiculous things or with only slight variations just so that they could say, “We got our 10 papers this year.” That is not really a good way to do science. Compared with the complete freedom process, there is a rather bureaucratic system that is delivering good science—we win Nobel prizes in this country—but is not pushing back the frontiers of science as quickly as we might like. Having an organisation with a great deal of freedom is very important.
I differ slightly from the hon. Member for North East Bedfordshire on one point, as did the Science and Technology Committee in two recommendations in the report that we produced in February, both of which effectively said that there should be a client side to the organisation. The reason for having a client side is not to stifle innovation. Having a client is useful, not in telling scientists what to look for or stopping them looking for completely new things, but in situations where they develop something. One of the problems with all the different ARPAs in the United States is that they find it difficult to get product to market because they do not have a client, whereas DARPA, which has the Department of Defence as a client, can take many of the innovations and inventions and develop them straight away. So there is another side to the total freedom approach.
I suppose that most politicians want the best of all possible worlds, so the ARIA I would like would, as in my new clause 2, have the Department of Health as a client Department. It could be something else, but I think that what we have been through over the past 15 months means that health almost speaks for itself. It should also have freedom to find problems that nobody else has thought of—that nobody in this House has thought of and many scientists will not have thought of. When Dominic Cummings came to the Science and Technology Committee, in less controversial terms than his last visit to the Joint Committee session, we talked in detail about how the science develops and we heard something really interesting that I suspect is true. Finding somebody who can chair a body such as this is more difficult than finding Nobel prize winners or people who are likely to win Fields medals. That is what will make this organisation successful or not—somebody who is bright or clever enough to understand questions that have not been asked before. Will that lead to cronyism? When we asked the current chair of UKRI, she was clear that very few people in this world could do this job, and we could probably sit down and write their names. Am I worried about cronyism? No. I am worried about not getting the right person.
Does anybody ever think about what networking means? At the top of science, the best scientists, and the people who get the grants and funding, are basically the great and the good and the really well networked. If Einstein cannot get a job in science and works in a patent office, or whatever the 21st-century equivalent would be, they cannot get into cronyism because those elites in our top universities, which are excellent, swallow up all the funding, and in many cases exclude the young and the brightest scientists. I am not worried about cronyism; I am worried about this body not getting the freedom it should get.
Under schedule 2, the Secretary of State basically keeps control. What makes the Bill difficult is that all politicians who vote to raise taxes want to control public money. That is in our nature. It is right, part of the democratic process—no taxation without representation —and a fundamental issue in a democratic society. To say, “Go off with £800 million and do your own thing” is difficult, but evidence from the States suggests that that is the best way to push forward the frontiers of science. My worry about the Bill is that there is too much control, not too little, and it might stifle initiative.
Finally, on initiatives, when the vaccine taskforce was set up we invited it to the Science and Technology Committee. I was not impressed that somebody was appointed without proper process, but the woman did an extraordinarily good job and she is now getting honoured. Sometimes in an emergency risks were taken—it worked a lot less well with the test and trace system. Sometimes we have to take risks. If we understand the way that scientific advances have been pushed forward, freedom as opposed to bureaucracy tends to work.
Kirsty Blackman (Aberdeen North) (SNP)
I served on the Bill Committee, and I tabled various amendments at that stage, a number of which we have carried forward to Report. I was interested in a number of things that were said. On the supposed mission and purpose of ARIA, the Bill says only:
“In exercising its functions, ARIA must have regard to the desirability of doing so for the benefit of the United Kingdom, through…economic growth…scientific innovation...or improving the quality of life”,
and that it must
“have regard to the desirability of doing so for the benefit of the United Kingdom.”
It does not even have to do things for the benefit of the United Kingdom; that is not written in the Bill.
The former Chair of the Science and Technology Committee, the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe), spoke about high risk and high reward. I understand where he is coming from, but I do not know what that reward means or looks like. The reward is not identified in any way. I am happy for there to be a high reward, but I would like some idea of what that is supposed to be, so that we can measure whether it is successful.
Stephen Metcalfe
If I am honest, I do not know the answer to that question. The reward might be the next internet, GPS or, as we heard from the hon. Member for Blackley and Broughton (Graham Stringer), mRNA technology; we do not know. But what we do know is that if we give scientists the ability to explore an area, to fail and to report back, some of those things will stick, and some of them could become massive new industries of the future. The challenge—I accept this—is to keep those industries and that technology here in the UK, spread all over the country, to the benefit of us all.
Kirsty Blackman
And what we are doing is just what the hon. Gentleman suggests: pointing scientists in a direction, saying, “Please could you do something about climate change? Please could you do something about our commitment and our journey to net zero?” and then letting them go. It is not about restricting them.
One of the things that has bothered me throughout is that most people seem to think that all this agency will do is invent widgets. Science is not all about making things. One of the biggest things that we need to do to tackle climate change is to convince every single person to change the way they live so that we can reach our targets. We will not be able to do that without scientific research into how people work and what changes they will make. That is not about creating widgets; it is about ensuring that we are on the right track and making the right changes for people to be able to do things in their lives in order that we can move towards net zero. I think that restricting ARIA to dealing with the most important challenge in our lifetimes is not too much of a restriction. It is a huge, wide thing.
One thing that really concerns me about progress to net zero is that an awful lot of folk are going to be left behind. An awful lot of these things that are made will be sold. Yes, great; that is going to make a lot of difference to the lives of people who already have money, but people who currently have nothing will find it even more difficult if we approach climate change with the stick method and require them to make changes or pay more for their energy when they already have very little money. Those are the challenges that I would like to see ARIA tackle, so that none of our constituents are left behind when we are moving to net zero.
I wrote to the Chancellor last week after a meeting with Aberdeen Climate Action about net zero organisations. Lib Dem new clause 3 suggests that ARIA should be net zero in every year. ARIA absolutely should be net zero in every year—that was one of the amendments we moved in Committee—because we should be saying that anything new should not add to our carbon emissions but reduce them or, at the very least, leave them neutral. The Government were not willing to accept that amendment in Committee. I am glad that the Lib Dems have put it forward again, because it is so important. If we are saying that we are going to be leaders and we are going to make a difference, new organisations such as ARIA should be net zero from the very beginning, and we should commit to that. If we are going to be net zero by 2050, everyone will have to make a contribution to that, and that includes ARIA.
On scrutiny, I am afraid that I disagreed with quite a lot of what the hon. Member for Blackley and Broughton (Graham Stringer) said. The point that my hon. Friend the Member for Aberdeen South (Stephen Flynn) was making about the Barnett formula was not that it is the best thing since sliced bread, but that we have the rules that we have. The rules mean that the Barnett formula does exist. We have been screwed over with regard to the Barnett formula a number of times in recent years, and we do not want that to happen in this case.
We would rather not have the Barnett formula—we would rather be an independent country—but if we are going to have those rules and the Government do not stick to them, there is a major element of unfairness. We are asking the Government to stick to their own rules in this regard. We have seen with legislative consent motions in recent times that they have completely ignored what the Scottish Parliament and the Welsh Parliament have said. They are not sticking to the rules, so we are just trying to get them to live up to the trust that they expect us to have in them.
On scrutiny, public procurement and FOI, I was really pleased that in Committee, the Minister confirmed that in the estimates process, ARIA will have a discrete line in the supply estimates, so we will at least be able to see how much money ARIA has in any given year. I do not disagree that ARIA should have the ability to fail —it is incredibly important that it does—but we need to be able to have scrutiny of the money that is being spent and that we as a House are agreeing to spend on it. I am very glad that the Minister confirmed that.
Finally, I am hugely concerned about the Einsteins—about the people who work in patent offices who have not been able to gain grants. I do not think that ARIA will fix that. There is still going to be the issue where if someone is networked—if they are a white man in research —they are much more likely to be able to get research grants than if they are a woman or a person of colour. Unfortunately, with the lack of ability that we have to FOI and to scrutinise some of ARIA, we cannot see what is going on with that. We cannot see whether ARIA is further entrenching the current inequality in science and technology and academia or doing a positive job towards breaking down those barriers and ensuring that people who live in the most deprived communities in Scotland are given the opportunity because they have the best possible ideas, rather than because they have the best possible friends. It is hugely important that we have more scrutiny. That is why we tabled the cronyism amendment and the amendments relating to us as Houses approving both the chair and the CEO, because those roles will be so important and because we are so excluded from the scrutiny process in relation to ARIA.
Andy Slaughter (Hammersmith) (Lab)
I wish to speak in support of amendments 14 and 8 in relation to bringing ARIA within the scope of the Freedom of Information Act. It seems extraordinary to me that there is an exclusion for a body of this kind, although, to be honest, I have a long-standing interest in freedom of information, and for Government Ministers—this is not exclusive to this Government—to look to exempt bodies from that piece of legislation for one spurious reason or another is not that unusual.
I have worked closely with the Campaign for Freedom of Information. Three years ago I introduced, unsuccessfully, a Bill to bring the third of public sector expenditure that is carried out by private contractors within the scope of the Act. That has gained some currency recently with, as we have heard in this debate, the upsurge of cronyism, the scandals over test and trace and the employment of huge numbers of consultants on inflated salaries. The Bill is equally subject to some of the same concerns and rings the same alarm bells.
We hear about high-risk, high-reward research and ARIA being allowed to fail, and there is nothing wrong with those as functions, but there has to be transparency, and, frankly, having that in the public eye, rather than hidden away, is more likely to lead to better decision making. The parallel body that we have heard about—DARPA in the USA—has had scandals and ethics violations that have been brought to light because it is subject to the equivalent Freedom of Information Act in that country. I believe that this is the right thing to do and in the interests of good research and the good use of public money.
The excuses that are given are the usual sorts of excuses that are pulled out at this stage—that this is a small, cutting-edge body on which it will be too burdensome to impose freedom of information. Leaving aside whether a body given £800 million of public money is indeed a small body, we have heard from my Front-Bench colleague, my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah), that parish councils are subject to freedom of information. So are dentists and internal drainage boards. I am not quite sure what an internal drainage board is—it sounds quite painful, actually—but I doubt that such bodies get £800 million of public money. I would take an intervention from anyone who wants to explain what an internal drainage board is, but I think it would take us off the subject.
This is just nonsense. The idea that ARIA will not have back-office functions and that its status at the cutting edge of a science superpower—I am not making those phrases up; the Minister has used them—will be hampered by making it subject to the Freedom of Information Act is fanciful. The Science and Technology Committee did indeed say that there was a danger of ARIA being stifled by bureaucracy, but it was referring not to freedom of information requests from the public and other interested parties, but to micromanagement by Government. That sounds far more likely and realistic.
The US body, DARPA, is subject to FOI. As one would expect, its budget is considerably larger, yet it gets about 50 FOIA requests a year. Comparisons have been made with UK Research and Innovation—a much larger organisation that brings together many different bodies in the sector. It gets about 20 FOIA requests per calendar month. There is no expectation that ARIA will be swamped by FOIA requests. Where they are appropriate, such requests are telling and essential, and they can bring important facts to light.
The Minister will correct me if I am wrong, but I cannot see how ARIA will not be subject to environmental information regulations, which are the parallel regime of discovery. It seems to me entirely anomalous that one should be in and one should be out, and it may be that we would be breaching our Aarhus convention obligations. Breaching international treaties from time to time does not seem to bother this Government—I am not sure what other explanation there could be.
It is in the public interest for freedom of information to be exercised where possible. In this instance it is certainly possible, and I hope I have given some reasons why it is entirely appropriate. It was a good action by the Labour Government at the time to bring the FOI Act into force. Since then, successive Governments and Ministers—not only Conservative Ministers—have railed against it, but there have been independent investigations. The Burns commission, which was widely perceived to be a case of the Conservative Government trying to do a hatchet job on the Act, found that the Act was working well. In its inquiry, the Justice Committee—a fine body of men and women—also found that the Act was working well. The Supreme Court has spoken very strongly in favour, saying that there is a strong public interest in the press and the general public having the right, subject to appropriate safeguards, to require public authorities to provide information about their activities. That is right, and it is particularly right that it applies to ARIA. I hope that, even at this late stage, the Government will think again about the rather misguided steps they are taking.
Kate Osborne (Jarrow) (Lab)
The UK has a long and proud tradition of science and innovation, and nowhere has this been seen more clearly than in the success of the NHS vaccine roll-out. It is because of our existing science and technology infrastructure that vaccines have been both successfully produced and rolled out in the UK and, indeed, further afield. It is British vaccines developed across the regions, including my own region, the north-east, that are allowing us to return to some form of normality. They show us all the incredible benefits that cutting-edge science and technology can provide. Any further investment in long-term, high-ambition research and development is of course welcome, but the proposals for ARIA in the Bill do not provide it with a clear purpose or mission.
I believe that ARIA must have a clear mission to offer a societal return on taxpayer investment. The Bill is an opportunity for the Government to establish a mission-led funding agency that can benefit everyone in every part of the country. ARIA must not be used to pursue vanity projects that offer no return for the public.
Owen Thompson (Midlothian) (SNP)
The general concept behind the Bill is a welcome one. Support for ambitious research where the real-world application is not always clear could bring massive economic benefits if successfully applied, not least to my own constituency and the world-leading institutions in Midlothian. The Midlothian Science Zone is at the cutting edge of global research across many disciplines, particularly in the fields of animal health, human health and agritech and their related technologies. The ideas behind ARIA will be especially welcome to the world-renowned Roslin Institute, for which blue-sky research funding could allow it to investigate, for instance, how integration and transformation of the food system could contribute to solving global hunger and climate change and develop our preparedness for potential future pandemics.
Those are just a few of the positive real-world impacts that the principle behind the Bill could bring about, but principle can often fall victim to a lack of clarity and purpose. On Second Reading, I raised concerns about the Bill’s lack of clarity and focus and the effects that could have on ARIA meeting its aims in the future. Given that we are talking about public money, it would be wise to signal to the public exactly what ARIA is setting out to do—a guiding aim that acts as the body’s ruler and sets a general course of travel. That is not controversial; it reflects best practice elsewhere around the globe.
We know that DARPA, the US defence research body that inspired the model, has a mission focus. Likewise, Horizon Europe and the Scottish National Investment Bank have mission focus: namely, to reduce inequalities and tackle climate change. Why are the Government therefore so content for the UK model to be an outlier to those other schemes? Although it is disappointing that the Government have taken no steps to address that lack of purpose, the legwork has thankfully been done by Members on this side of the Chamber. I welcome the proposals tabled by the dream team from Aberdeen, my hon. Friends the Members for Aberdeen North (Kirsty Blackman) and for Aberdeen South (Stephen Flynn), whose amendment 1 states that
“ARIA’s primary mission will be to support the development of technologies and research that support the UK’s transition to net zero… or reduce the harmful effects of climate change.”
Why do the Government remain so insistent on giving ARIA as unspecified a remit as possible in the face of best practice everywhere else? Perhaps the answer lies in the clauses related to the planning, oversight and governance of the new agency. It is hard not to feel as though I am watching history repeating itself when I read that ARIA will be exempt from freedom of information provisions and public contract regulations, especially given the Government’s woeful record on accountability and transparency.
In setting up the new funding body, especially for high-risk funding such as this, surely it is imperative that safeguards are built in to protect against the risk of corruption. There is an urgent need for more oversight, not less, of public spending decisions. We have been here before; we are all well versed in the Government’s rebuttal on less scrutiny—that speed and efficiency are the necessities. It looks as though similar lines are being trotted out on this Bill.
Ministers are saying that the exemptions will reduce bureaucracy for ARIA. Bureaucracy looks increasingly to be the convenient byword for the bypassing of scrutiny by the Government—a Government who, I might add, have dramatically increased damaging bureaucracy for international businesses and academia since leaving the EU.
It is important to remind ourselves that speed and scrutiny are not mutually exclusive if the Government are willing to think creatively, and in the previous Session of Parliament, I set out a model for balancing the two in my Ministerial Interests (Emergency Powers) Bill and was devastated when it failed to secure a date for Second Reading. However, we have on the amendment paper today amendment 2, which stands in the names of my hon. Friends the Members for Aberdeen North and for Aberdeen South. It would allow parliamentary scrutiny of any contract awarded by ARIA to a person connected to a member of the Government. That would not increase bureaucracy for ARIA, nor hinder efficiency, as the parliamentary scrutiny would be retrospective.
To me, this is a no-brainer—an amendment that would increase the scrutiny powers of Members in this place to keep ministerial decision making in check and ensure that grants truly go to the best projects. I urge Members to back the amendment. I have said many times that if there is nothing to hide, there can surely be nothing to fear. A refusal to back the amendment would surely set alarm bells ringing among the research community and anti-corruption organisations alike. It would send the signal that this is the same old crony Tory Government reducing ideas for world-changing good to slush funds for pals or donors.
A body dedicated to high-risk research funding has clear benefits, but to ensure that the outcomes benefit all society and the world, and not just Ministers’ mates, we need to give it a guiding focus. By giving this place more power to understand decisions taken on funding allocated, we would strengthen, not weaken, mechanisms for scrutiny as well as ARIA’s effectiveness. Strength comes with openness, and I hope that Members will make ARIA as strong as it ought to be by backing these amendments.
Daniel Zeichner (Cambridge) (Lab)
When I saw the list of speakers this morning, I thought I would keep my comments brief. Perhaps unusually, I will stick to that.
Daniel Zeichner
Absolutely.
I was happy to be a member of the Bill Committee and we had constructive, good humoured discussions, many of which have been echoed in this evening’s debate. One thing that particularly struck me was the quality of the evidence that the witnesses gave. I have a question for the Minister: if she, like me, was so impressed by what we heard, particularly from the representatives of DARPA, what did she learn from it and what changes could be made to the Bill to reflect the wisdom imparted by the witnesses?
I shall speak in support of all the Opposition amendments, but I want to address in particular amendment 12 and the need for a mission. I was struck by the outline of the Haldane principle by my hon. Friend the Member for Blackley and Broughton (Graham Stringer), who is my good friend. He is absolutely right that there is no need for the Government to get involved in the detail, but equally there is no obligation to withdraw from a having a general sense of what we are trying to do. The key issue is whether we say, “We’re just not going to have a view on what it is going to do” or we have some sense of where this might go.
I spent much of last week reading Professor Dieter Helm’s book on net zero, which I commend to hon. Members. He is quite influential on the Government, I think, but it is pretty depressing reading regarding where we are on achieving net zero. We are nowhere near doing what is needed. One of the key areas is science, innovation and research, so it would not be unreasonable to suggest putting our great scientific minds to work on the great challenge of our times: what to do about the climate crisis.
I am fortunate to chair the all-party parliamentary group for life sciences. When I chaired a meeting this afternoon, one question that I asked the people before us was, “Why was it that you were so successful in tackling the vaccines crisis?” It was because they worked in a different way, with a mission and a purpose, and I think exactly the same thing would happen if we set our great scientific minds to work on this great challenge of our times.
It is important to support amendment 12, as well as the other amendments. What a difference it could make, and what a political opportunity for the Government as we head towards the G7 this week and COP26. Unless something like this is adopted, frankly, we will not get where we need to.
Madam Deputy Speaker (Dame Rosie Winterton)
Nos. 28, 29 and 30 have withdrawn, so I call Ruth Jones.
Ruth Jones (Newport West) (Lab)
Thank you, Madam Deputy Speaker; yes, it is a surprisingly fast debate tonight, which is good.
I am grateful to be able to speak in this important debate and to say a few words on behalf of the people of Newport West. I commend the high level of debate, which has been impressive; I have learnt a lot.
Like other Opposition colleagues, I welcome the creation of ARIA. The UK has a proud tradition in science and innovation, but Labour has long called for further investment in long-term, high-ambition research and development. I join Opposition Members who have raised concerns about the Bill in its current form. Most concerningly, the Government’s proposals for the agency do not provide it with a clear purpose or mission. For the new agency to succeed, it must be given a well-defined mission and Ministers must play a role in setting that mission. In setting that mission, the creation of ARIA, which will only account for a fraction of the overall science spending, must not serve as a distraction from the country’s wider research and development priorities.
It is a matter of regret—but, alas, no surprise—that this 11-year-old Tory Government are reportedly on course to miss their target of spending 2.4% of GDP on R and D by 2027. They have also failed to provide the support needed to medical research charities during the pandemic, forcing them to make sweeping cuts. I say to the Minister that we need real clarity on how the devolved Administrations will be engaged with and supported to ensure that people across the whole United Kingdom benefit in the months and years ahead.
Labour’s amendment 12 on mission has a welcome focus on net zero, which, as a shadow environment Minister, I welcome very strongly. The greatest challenge that we face as a country and as a planet is the climate and environment emergency, so I applaud and thank the shadow Minister, my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah), for proposing that the fight to preserve our planet and protect our environment be the new agency’s mission for the first 10 years. Achieving net zero offers a broad mission and ARIA’s new CEO would have plenty of discretion in choosing which aspects of the climate and environmental emergency to address.
I turn to oversight and accountability. As has already been mentioned, it is important that people know what is happening, how and when. By making ARIA subject to the Freedom of Information Act 2000 and the Public Contracts Regulations 2015, we would be drawing open the curtains and shining a light where it is absolutely necessary.
Let me turn to regional and national empowerment. As I indicated, I want my constituents in Newport West to benefit as much as those living in Scotland, England and Northern Ireland. As such, it is vital that the Minister supports amendment 13, which would require the agency to have regard for the benefit of its activities across the nations and regions of our United Kingdom.
I am in the privileged position of having the Intellectual Property Office located in my constituency, and I am proud to stand up and shout on behalf of the next up-and-coming Einstein, to ensure that they can work on a level playing field. This Bill may be small, but it is important and we must get it right now.
I turn to the new clause in the name of the right hon. Member for Sutton Coldfield (Mr Mitchell), who has a long track record on fighting for the rights of the poorest in our world. I commend him and his many right hon. and hon. Friends—notably the former Prime Minister, the right hon. Member for Maidenhead (Mrs May)—for standing up and doing the right thing. So many colleagues on both sides of the House have spoken eloquently in this debate about who we are as a nation and about the values that drive what we do and when we do it. Although I would of course never question a ruling by Mr Speaker, I do want to place on record the fact that I regret that the new clause was not selected. However, I am really pleased that the right hon. Gentleman has secured his debate tomorrow, and I look forward to its outcome.
Madam Deputy Speaker (Dame Rosie Winterton)
Nos. 32, 33 and 34 have withdrawn, so we go to Jim Shannon.
Jim Shannon (Strangford) (DUP)
I cannot recall a time when we have rushed so fast through the speakers, Madam Deputy Speaker. At the beginning, as No. 35, I thought I would have three minutes. You have asked us to keep to six minutes, and we will do our best—indeed, I will keep to that.
I value the opportunity to speak on this matter of utmost importance. I also welcome the Chancellor’s announcement—I have my instructions for tonight as the one who will do the proxy votes on behalf of my party—that the UK Government will invest at least £800 million in this new agency as part of the Government’s wider commitment to increase public research and development funding by £22 billion by 2024-25 and to increase overall UK spending on R&D to 2.4% of GDP by 2027. It would be churlish not to welcome that and not to say how good it is to have those figures on the record here tonight. It is clear that the Government have given a commitment to ensure that this agency will be a success story.
When I see that many of our shops have been tied up not simply by Brexit but by the over-dependence on overseas manufacturing and production, I lament that because we were at one time the greatest industrial nation, with the greatest innovators. I believe we can be that again; all we need to do is follow the Government’s policy and strategy, as set out here tonight, and then we can all benefit across this great nation. I still believe that that title is ours, but for us to become all we can become in terms of leading groundbreaking blue-sky projects, we must put the money in, and the Government are clearly putting their money in.
I want to ask the Minister—last time, we did not have much time, and she was unable to respond—to ensure that the R&D and the spend benefit all the regions. The hon. Member for Newport West (Ruth Jones) and others referred to that. I want Northern Ireland very clearly to be a recipient of the R&D so that we have some of the benefit from this whole project. Technology does not come cheap, but the rewards are extensive. What we have achieved with the covid vaccine through investing money is an indication that greatness still awaits. The Government have been extremely successful in the coronavirus vaccine roll-out and in how they have benefitted and helped all the companies, whether with furlough or the grant scheme. Many businesses in my constituency are here today because of the Government’s commitment, and I want to put on record my thanks to them for that as well.
We all have a great affection for our mothers, and I have a particular affection for mine. She always said that her greatest investment was the time she invested to believe in her children. It is important that we take note of those wise words, and I hope that my mother will be very pleased with the investment she made in her four children. If God spares her, she will be 90 on 14 July, so she has had a long and very good life. When I phone her, as I did at about 6 o’clock tonight, she always asks me what is happening over here, and I always tell her, because she is really deeply interested. We are very fortunate to have a 90-year-old mum who is sound in body and mind and still able to tell this big boy what to do when the time comes. That is what a mother does—she tells you off no matter what age you are, and I am always very conscious of that.
We must invest in our own people and in their ability. That is why I support this Bill and why we will be voting with the Government tonight. I want to take this opportunity to press the Minister for an assurance that the investment to which I referred earlier will take place across the UK, and will allow the wonderful research and development that takes place in Northern Ireland to continue. We have a great scheme in Northern Ireland, which works really well, to avail us with increased support and funding. I believe that the Minister will be happy to give that assurance and I will be happy to hold her to that assurance. I look forward to her response.
Northern Ireland has the best education system in the United Kingdom. I thank my colleague Peter Weir, the Education Minister, for the great job that he has done in trying to secure our children’s ongoing education through covid. As a result of this education, we have highly skilled young people who have so much to offer in terms of vision and goals. I meet those young people every day in my constituency of Strangford and across Northern Ireland. We have some wonderful people. We need to encourage them and to ensure that they can be part of that future as well. We do this as well for my grandchildren and, indeed, for everyone’s grandchildren.
We should also allow those with grand projects to take on young apprentices, who will learn how to take innovative approaches. It is very important that we do these things. The R&D projects to give young graduates a place at the R&D table would benefit from their wisdom, experience, enthusiasm and learning. Again, I commend the Northern Ireland Assembly, and particularly Minister Dodds and the Department of Enterprise, Trade and Investment, for all that they have done, working alongside the Education Minister to ensure that we in Northern Ireland can be part of this great nation of the United Kingdom of Great Britain and Northern Ireland—always better together and always better if we can share what we have. I see my colleague and friend, the hon. Member for Aberdeen South (Stephen Flynn), having a smile to himself. But I mean it. I want him to stay in the United Kingdom. I do not want him to leave; I want him to be a part of it.
Madam Deputy Speaker (Dame Rosie Winterton)
Nos. 36 to 40 on the speakers’ list have withdrawn, so we go to Virginia Crosbie.
Virginia Crosbie (Ynys Môn) (Con)
Thank you, Madam Deputy Speaker. It is a pleasure to speak in this important debate on ARIA and to follow the hon. Member for Strangford (Jim Shannon), who always speaks so eloquently and passionately. I particularly liked the fact that he mentioned his grandchildren.
I was proud to serve on the ARIA Bill Committee and I would like to thank the Minister and all those who have contributed to this landmark legislation. Setting up this agency will deliver on yet another manifesto commitment from 2019 and I wholeheartedly support the Bill. The last year has shown us the power of science to deliver solutions, and now is the time to further invest in the ideas of the future that will allow us to continue to make scientific progress.
ARIA needs to have as broad a remit as possible, not to be restricted in its scope, which would be the outcome if new clause 2 were accepted. Scientists need to have space and time to research new technologies without restrictions about the agency’s mission imposed upon them. In the words of Professor Bond in the evidence sessions of which I was part, this is about “radical innovation”.
In my constituency of Ynys Môn, there is already the infrastructure in place for research and innovation, hosted by the Menai Science Park, which is the innovation hub for Bangor University. Businesses such as Tech Tyfu, a vertical farming pilot project in Gwynedd and Ynys Môn delivered by Menter Môn, provide the opportunity for the UK to increase UK food production. We need to encourage more people with an innovative and entrepreneurial mindset, such as those at Tech Tyfu and the others located at M-Sparc, to engage with research in order to solve the problems that the world faces today and in the future. We need to recruit the right people and trust them, not micromanage them.
Amendments 1 and 12 look to focus ARIA’s core mission on achieving net zero and the impact of climate change. I am fully supportive of the goal of achieving net zero, as was laid out in the manifesto on which I proudly stood in 2019. Indeed, Ynys Môn— also known as energy island—will play a key part in delivering this target. However, restricting ARIA’s mission to this goal is not necessary, as we have already legislated for the net zero target by 2050, with ambitious interim targets and a cross-governmental framework in the Prime Minister’s 10-point plan.
ARIA also gives the opportunity to level up around the country, be truly inclusive and involve the brilliant minds from all over the United Kingdom, including those in Wales. It needs to be able to do that without being weighed down by bureaucracy. I spoke in Committee about why ARIA should be free from the freedom of information regime proposed in amendments 8 and 14. In Committee, we heard evidence about the potential burden of administration. UKRI told us that it had a team of staff purely to deal with the 300-plus FOI requests it receives annually. As Professor Dame Ottoline Leyser said, UKRI is “happy” to be able to respond to FOI requests, but
“there is a judgment call about the burden of administration”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 9, Q4.]
With its unique freedoms and independence to enable transformational research, ARIA will inevitably receive a disproportionate number of FOI requests relative to its size. Our vision for ARIA is that it should be lean and agile. Do we really want it encumbered by that level of administrative burden? Do we want ARIA’s brilliant programme managers to be stifled by bureaucratic paperwork?
We also heard about whether ARIA will be able to deliver the game-changing R&D that we want if it is subject to FOI. It was Tony Blair who gave us the Freedom of Information Act and who subsequently described it as
“utterly undermining of sensible government”
To use his words:
“If you are trying to take a difficult decision and you're weighing up the pros and cons, you have frank conversations...And if those conversations then are put out in a published form that afterwards are liable to be highlighted in particular ways, you are going to be very cautious.”
Professor Philip Bond put this view into an R&D context in his discussions with the Committee:
“if you are asking people to go out on a limb to really push the envelope, I would assert that there is an argument, which has some validity, that you make it psychologically much easier for them if they do not feel that they are under a microscope.” ––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 29, Q21.]
Mr Blair and Professor Bond perfectly highlight the fundamental reason why ARIA should be free from FOI: the last thing our scientists need when they are looking for the next internet is to be held back by caution.
The Bill already contains very strong statutory commitments to transparency: an annual report will be laid before Parliament; ARIA’s accounts and spending will be published; non-legislative mechanisms will be set out in a framework document; and there will be a thorough and transparent selection process to ensure it is led by respected individuals who will uphold public honour. Freedom of information requests can still be submitted to the Department for Business, Energy and Industrial Strategy and any organisation that ARIA works with. Any contracts awarded by ARIA will be publicly available.
ARIA will give the United Kingdom and the island of Ynys Môn the opportunity to grasp and shape our future on a global stage. It will help drive innovation and investment, and secure our status as a science superpower. I am proud—I am proud to support this Bill.
Madam Deputy Speaker (Dame Rosie Winterton)
Nos. 42 to 49 on the speakers’ list have withdrawn, so we go to Angela Richardson.
Angela Richardson
Thank you, Madam Deputy Speaker. It is such a pleasure to follow my hon. Friend the Member for Ynys Môn (Virginia Crosbie), who is so passionate about this area. That came through in the Bill Committee, as it does whenever she speaks on behalf of her constituency.
It is a pleasure for me to speak on Report, as it was to be a member of the Committee and to speak on Second Reading. It is a relief to speak to amendments that pertain to the Bill today, even if I do not support them. I particularly want to speak to the procurement amendments tabled by both the Opposition and the Scottish National party, but first I wish to address the amendments that want to make ARIA’s primary mission health and research, or our net zero aims. We already have knowledge of and have committed significant resources to those two areas, and we understand the importance of tackling them. The benefit of freeing ARIA from those specific missions is the ability to go into the unknown—to the areas we do not have knowledge of. I have no issue with ARIA seeing successes or failures in those areas, but prescribing for those areas through ARIA may not necessarily be the cure we are looking for.
Turning to procurement, the exemption from the Public Contracts Regulations 2015 places freedom into the hands of the leaders and programme managers who will be recruited to run ARIA as an independent body. ARIA’s procurement will be at arm’s length from Government and Ministers. Procurement rules do not apply to the traditional R&D granting used by UKRI, but ARIA, like DARPA, will work in a different way by commissioning and contracting others to conduct research. ARIA will often be procuring research and development services, which can be in the scope of the procurement regulations.
Aaron Bell
It really is a pleasure to follow my hon. Friend the Member for Guildford (Angela Richardson), who is one of my best friends in this place; it was a pleasure to serve on the Bill Committee with her and with so many other hon. Members present. Along with the hon. Member for Brent Central (Dawn Butler), my hon. Friend and I served both on the Science and Technology Committee when it conducted a report on what at the time we were calling ARPA, and on the Bill Committee, so I have felt a real sense of personal involvement in the process as it has developed.
Since I will not speak on Third Reading, I would like to thank everyone who has been a part of the process, particularly the Clerks of the Bill Committee; the Minister for her dedication; and the Whip, whom I see in his place, for his help on our side of the Committee. It was a very good-natured Bill Committee, as others have said. Some amendments that we are debating today are rather similar to those that we rejected in Committee, but obviously that is how Report works. I will not labour all the same points again, but I will speak briefly on them later in my speech.
Science is cool again, because science has saved us in the past year. It is not just about the vaccines—extraordinary though they are, particularly the mRNA advances. It is also about what we were able to achieve with Sarah Gilbert’s Oxford project, which I am very proud is being manufactured in my constituency at Keele science park in Newcastle-under-Lyme; what we have done scientifically in finding therapeutics through our world-leading recovery trial; and the advances that we have seen in rapid tests to enable the incredible amount of testing that we now have in the UK.
However, I would like to add a note of caution, because covid has also exposed some of the problems we see in science and some of the problems in the networks that the hon. Member for Blackley and Broughton (Graham Stringer) spoke about earlier. I am talking particularly about the so-called lab leak hypothesis—the theory that covid emerged from the Wuhan Institute of Virology rather than from a zoonotic transmission. We saw some of the worst of science and the media over that, but it was essentially shut down by a letter to The Lancet organised by the EcoHealth Alliance and its president, Peter Daszak, which squashed the theory on 18 February last year. Let us face it, the theory was assisted by Donald Trump and Senator Tom Cotton in the States taking the opposite view, and there was this whole politicisation of something that should have been about scientific inquiry. Speaking as a Bayesian, and based on everything I have seen, including the fact that the virus was in Wuhan in the first place, and on everything we have seen since, I believe it probably was a lab leak. I would go as far as to stake an 80% probability on that, and I think we should bear that in mind when we think about what we are asking of ARIA.
We do not want ARIA to get politicised and legalised, and we do not want it to fall into the same group-think that we have seen in some science, with a tendency to defend your mates and the people you know in your network and stick up for the institution rather than the principles behind the science. Instead, the DRASTIC group—the decentralised radical autonomous search team investigating covid-19—a bunch of people on the internet, correspondents and scientifically inquisitive people around the world, have managed to bring the lab leak hypothesis back to public attention to the point where it is clearly being actively considered by our intelligence services and our scientific community. I think we need some of that spirit in ARIA. We need that spirit of inquiry and of people outside the system getting their fair say in the system—the Einsteins in the Patent Office, as others have said.
On the amendments about cronyism, what we saw with the appointment of Kate Bingham was a complete disgrace. That is the sort of thing I worry about with some of the amendments to the Bill. I think “everyday sexism” is the term to describe the abuse she got on her appointment. We had the Runnymede Trust trying to go to court to get her appointment declared unlawful, the so-called Good Law Project seeking to crowdfund against her appointment, the leader of the Liberal Democrat party saying that she must resign and Labour’s deputy leader saying “this cronyism stinks”. The truth is that she was the best qualified person for that job. She was appointed at speed because of the circumstances we were in, and she has delivered in spades. If the rumours about her damehood are correct, she richly deserves it and we all owe her an enormous debt.
Graham Stringer
On the Science and Technology Committee, we often share similar views and attitudes to science, and I agree with the hon. Gentleman about the violence of the language that is sometimes used; it is completely unacceptable. When emergency decisions are taken, as they were with the vaccine taskforce and with Test and Trace, there needs to be an assessment afterwards. I hope he agrees that it would be a very different assessment for Test and Trace than it would be for the vaccine taskforce.
Aaron Bell
I thank the hon. Gentlemen for raising that. As a member of the Science and Technology Committee, he knows that we were looking at producing further reports into both Test and Trace and the vaccine programme as a result of our inquiry. I think the Test and Trace programme has actually got to a very good place now: the number of tests we are achieving is the envy of many other countries around the world. We could quite happily say that the vaccine taskforce is an exemplar for everything that went well, and that the Test and Trace programme has been more mixed—[Laughter.] The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) on the Opposition Front Bench laughs, but I think that the Test and Trace programme has helped our recovery from the worst of the covid pandemic. It is not the case that all that money has been wasted, as some Opposition Members say, and it is certainly not the case that it has all gone on cronyism; it has gone on the cost of the tests. That is what it has gone on. Contact tracing is hard. Some people do not want to be contact traced, but the role that Test and Trace has played is still significant, although perhaps not as significant as we hoped initially. I am sure we will move on with that in our inquiry.
Returning to what I was saying about the amendments seeking to give ARIA a mission statement, my hon. Friend the Member for North East Bedfordshire (Richard Fuller) gave the House some good reasons to reject them. First, there is no point spending just a little bit of money on things that already have billions thrown at them; we should be looking at the things we do not necessarily even know about yet. I also think we should avoid circumscribing ARIA’s freedom. Likewise, on all the amendments that are trying to impose more bureaucracy on ARIA, the whole point is to do things differently, with freedom from all the usual processes and pressures that act on these sorts of bodies.
We need to empower scientists. My hon. Friend the Member for Ynys Môn (Virginia Crosbie) quoted Professor Bond, who said of freedom of information in his evidence to the Bill Committee:
“In terms of the level of transparency, transparency is a good and wonderful thing in most areas, but if you are asking people to go out on a limb to really push the envelope, I would assert that there is an argument, which has some validity, that you make it psychologically much easier for them if they do not feel that they are under a microscope. Many people tend to step back when they are there.”
Some of the burdens that people are seeking to put on ARIA would potentially circumscribe it and reduce its effectiveness. The Bill does still have a statutory commitment to transparency. We will have regular reports, and I am sure that our Committee will be regularly engaged not only with the Secretary of State, who is in his place, but with the chief executive and the chairman of ARIA, who will come to speak to us as well.
ARIA needs to have the freedom to fail. In that sense, it needs to be a macrocosm of all its individual projects that also need to have the freedom to fail. Let us truly empower ARIA by rejecting these amendments. Let us let ARIA take flight and shoot for the stars, not weigh it down and prevent it from ever reaching the escape velocity it needs and the chance that it has to boldly go—returning to the “Star Trek” references we had in the Bill Committee—not into outer space but to the very cutting edge of scientific research and discovery. If we pass this Bill today, it will be a great day for science in the United Kingdom.
Duncan Baker (North Norfolk) (Con)
I shall try not to come up with any more “Star Trek” references as we will probably run out in a minute.
I am grateful to the Minister for all her hard work on such an interesting piece of legislation that is going to be truly transformative. It has been a pleasure to be involved in the Bill, having spoken on Second Reading and been a member of the Bill Committee. I want to deal with a number of amendments and also to make this general observation: the Opposition amendments in Committee were, in the main, tabled to hinder much of the Government’s primary intention in what ARIA was set up to do in the first place. If we recognise that ARIA is set up with the sole principle of operating at pace, with flexibility, and with freedom to aid our position in the world in continuing to be a leader in innovation and science, then we absolutely must not stifle it by filling it with bureaucracy around regulation and oversight, thereby harming its very intention. Yes, there will be failures, as we have heard today. We all recognise that; it is almost part and parcel of what is built into the fabric of the agency to help it to operate without restrictions. From board compositions to freedom of information stipulations, even to dictating the agency’s priorities over health and climate change, it is quite revealing to be met with the level of shackles that were to be imposed rather than the vision to encourage our next generation of pioneering inventors.
Amendments 8 and 14 would make ARIA subject to FOI requests. If they were to be passed, we could immediately lose the competitive edge of innovative or potentially cutting-edge scientific developments brought about by risk. Instead, we are thrusting them into the spotlight whereby that ingenuity could be uncovered by FOIs. If we restrict people’s creativity, they will play it safe. They will not take the risk that is the very essence of ARIA in the first place in being an incubator for creativity to flourish.
New clause 3 and amendment 1 take us back to the ring-fencing of ARIA’s remit by constricting its freedom across all facets of science and research. Across the entire country and across all sectors, from automotive to farming, society is striving to decarbonise. We are already a world-leading Government in our commitment to decarbonise to net zero by 2050. To make the agency specifically concentrate its efforts on particular areas is again to dictate as to its uniqueness, and that will not give it the true freedom that is at the very heart of this Bill.
Finally, any organisation is only as good as the people that make it up. ARIA will need a visionary CEO to lead the culture and set its direction. Amendments 3 to 6 would require, among other matters, that Parliament approves the CEO. However, we know that if a small organisation is to be nimble, those decisions need to be made quickly. I do not see that there is a need for approving the board with Government representatives if that process is fair and open, which we are told it will be.
As I said on Second Reading, my constituency of North Norfolk was home to one of our greatest living inventors, Sir James Dyson. I hope that ARIA will be our launchpad to uncover the very next greatest inventor.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
It is a pleasure to be here on this special occasion, and not just because, as my hon. Friend the Member for Guildford (Angela Richardson) pointed out, it was a very special birthday yesterday—40. [Laughter.]
I thank all right hon. and hon. Members who have tabled amendments and new clauses, and who have contributed today.
The UK has a world-class science system, and a proud history of research and invention. Today, in our continuing fight against coronavirus, the importance of those skills has never been more apparent. What is it that makes ARIA so special? It is the fact that we are strengthening our science system, enhancing our capabilities and finding a new level of ambition. That means that it will be a small, agile organisation with autonomy from Government and unique powers that equip it to support groundbreaking ideas, with the potential to profoundly change all our lives for the better.
The Bill brings forward a bold and ambitious policy that seeks to deliver the transformational benefits of high-risk R&D for our economy and society. I have spoken to many colleagues who share my genuine excitement about the possibilities that ARIA could bring. We have heard on the Floor of the House and in every previous debate that all parties support the principle of ARIA and what it will try to achieve. I am glad that today we are able to give ARIA the focus that it deserves.
A focus of today’s debate that has been raised by the hon. Members for Newcastle upon Tyne Central (Chi Onwurah), for Cambridge (Daniel Zeichner) and for Aberdeen North (Kirsty Blackman), among others, has been giving ARIA a primary research topic, through new clauses 2 and 3, and amendments 1 and 12. Given the challenges that we face today, those amendments understandably focus on climate change and health. Nobody in the House should have any concerns about the Government’s credentials on tackling climate change. We are proud to be the greenest Government ever. The Prime Minister’s 10-point plan and our COP26 presidency, to which the hon. Member for Aberdeen South (Stephen Flynn) referred, are demonstrating that at home and abroad, the UK is leading efforts to accelerate action on climate change.
Without doubt, the covid pandemic has clearly illustrated the critical role that R&D plays in the health and wellbeing of our population. Our vaccine roll-out is the envy of the world. The Government already invest around £2 billion annually in health and care research in the UK. It is therefore right that such priorities are taken forward by Government Departments and agencies, with clear direction and involvement from Ministers. That includes the important role that UKRI plays in delivering Government priorities for R&D. We do not want to duplicate those responsibilities.
Instead, as many colleagues have put it much better than I could, ARIA must make its own distinct contribution to be effective. That means being an organisation led by brilliant people with strategic autonomy—not directed by Ministers. The continued chopping and changing of ARIA’s mission set out in amendment 12 would hamper ARIA’s ability to commit to long-term programmes.
New clause 3 also seeks to impose obligations on ARIA regarding the transition to net zero. ARIA is covered by the Government’s existing net zero commitments and will be required to make information available through the Environmental Information Regulations 2004, which were mentioned by the hon. Member for Hammersmith (Andy Slaughter).
I turn to the contribution of the hon. Member for Oxford West and Abingdon (Layla Moran) on the role of Parliament. Amendments 3 to 6 would require the proposed chair and CEO of ARIA to be approved by both Houses of Parliament. Amendment 11 would require the Commons Science and Technology Committee to approve appointments by the Secretary of State and the remuneration of the appointees. I am extremely pleased that the recruitment campaign for the CEO was launched on 1 June and that we will launch the campaign for the chair on 5 July. All applications will be reviewed by an outstanding expert panel, which will include the Government’s chief scientific adviser, Sir Patrick Vallance. The Government’s guidance sets out that the ultimate responsibility for appointments rests with Ministers who are accountable to Parliament, as is the case with UKRI. There is no precedent for requiring the approval of both Houses for appointments.
I am grateful for the contribution that the Science and Technology Committee, chaired by my right hon. Friend the Member for Tunbridge Wells (Greg Clark), has made on this issue. However, I guarantee that this is an open, fair and robust recruitment process, and it is completely appropriate to find the right people to make ARIA a success. Amendment 9 would require ARIA to provide the Science and Technology Committee with the information it requests. The Osmotherly rules provide guidance on how Government bodies should interact with Select Committees, and they are clear that such bodies should be as helpful as possible in providing accurate, truthful and full information when giving evidence. I believe that that is sufficient to ensure a co-operative and constructive relationship between ARIA and the relevant Committees.
Amendment 10 would require the Secretary of State to consult the Committee before dissolving ARIA. Clause 8 already sets out the broad requirement on the Secretary of State to consult any persons they consider appropriate, and I am sure they will always consider it appropriate to consult the Science and Technology Committee about changes to the R&D landscape. The Secretary of State’s power to dissolve ARIA is subject to the draft affirmative procedure, which will ensure that Parliament has the opportunity to debate that decision.
Amendments 7 and 8 tabled by the hon. Member for Aberdeen South and amendment 14 tabled by the hon. Member for Newcastle upon Tyne Central seek to remove the exemption from the public contracts regulations and to subject ARIA to the Freedom of Information Act 2000. We have covered procurement extensively before, and I will reiterate why the exemption is so important. There are three key points.
First, ARIA is expected to commission and contract others to conduct research in pursuit of its ambitious goals. Often, ARIA will procure research services. That commissioning and contracting is a fundamentally different way of funding R&D to traditional grant making, and procurement rules do not apply. Secondly, this way of funding research is core to DARPA’s approach—the successful US model from which we learned when designing ARIA. As we heard in Committee, DARPA benefits from what is described as “other transaction authority”, which offers flexibility outside standard US Government contracting standards. By taking that innovative new funding approach that is so fundamental to its objectives, ARIA will benefit from similar flexibilities.
Let me turn to amendments 8 and 14. ARIA is about creating a certain culture of funding and groundbreaking research, as I heard time and again throughout my engagement with the R&D community. As my hon. Friend the Member for North East Bedfordshire (Richard Fuller) put it so eloquently, that kind of culture is difficult to achieve within all the rules that would usually apply to public bodies. We have thought carefully about alternative ways to ensure that high standards of conduct are upheld within this unique context.
The Bill requires ARIA to submit an annual report and statement of accounts, which will be laid before Parliament. ARIA will be audited by the National Audit Office and will be subject to value-for-money assessments. ARIA will interact with Select Committees in the usual way, and it will draw up a framework document detailing its relationship with BEIS. There will be further reporting requirements, such as the details of what is published in the annual report. Together, those provisions will ensure that the public are informed of ARIA’s activities and where it spends its money. Although the Freedom of Information Act 2000 allows for exemptions in certain circumstances, the request must still be processed, and that administration runs contrary to the lean and agile operation of ARIA.
I turn to amendment 2 on conflicts of interest. Schedule 1 allows the Secretary of State to make regulations
“about the procedures to be adopted for dealing with conflicts of interest”.
The framework document between BEIS and ARIA will commit ARIA to the code of conduct for board members of public bodies, which includes the obligation to publicly declare any private financial or non-financial interests that may or may not be perceived to conflict with one’s public duty. This principle-led, non-legislative approach is appropriate. It is the standard approach taken by many other arm’s length bodies, including UKRI, and I have no reason to believe that it is inadequate here. In addition, we have the existing reserve power in schedule 1, should it ever prove necessary.
On the issue of human rights, I recognise the intent behind new clause 1. Human rights are already protected in law in the UK through the Human Rights Act 1998, and ARIA will be subject to public authority obligations under that Act. I therefore reassure the hon. Member for Aberdeen South that ARIA will operate in a way that is compatible with the convention on human rights. It would be unlawful for it not to do so under existing legislation.
Amendment 13 would require details of ARIA’s geographical impact to be included in its annual report. I believe that it is incredibly important that ARIA’s funding benefits those who are not always reached by the current system. That is the Government’s policy and priority, as well as a priority for me personally. The R&D place strategy, due to be published this summer, will set out how R&D will contribute to our levelling-up ambitions. Details of ARIA’s operation will be set out more fully in a future framework document, and that is the appropriate place to stipulate the contents of ARIA’s annual report, including geographical information, rather than legislation.
Jim Shannon
The Minister is being generous with her time tonight. In my contribution, I was very keen, as were others, to ensure that all the levelling-up that the Minister refers to will happen in the regions as well—in other words, that Northern Ireland will get its share. It is important, as part of the United Kingdom of Great Britain and Northern Ireland, that we all benefit. May I seek her assurance that that will be the case?
Amanda Solloway
Of course, I give my assurance that we will issue the place strategy shortly, which will indicate all of this.
I am very grateful for the contributions that right hon. and hon. Members have made today. The interest in the passage of the Bill in the House and in the R&D community is testament to the important role that ARIA will play in our future R&D landscape, creating a space in the system that is free to fund groundbreaking science in innovative ways, independent from ongoing Government intervention.
This is an incredibly significant moment, because the opportunity that ARIA affords us is truly limitless. By unlocking a new level of ambition, and by enabling truly bold and adventurous ideas to flourish, ARIA will allow us to take a huge leap into the future. Yes, this will mean embracing the unknowns that come from ARIA being free from Government control, but we should make that leap confidently, knowing that the brilliant people that ARIA will fund will change the world in ways that none of us in this Chamber would dare to imagine today. This is therefore a truly exciting time for all of us here in the Chamber—for ourselves, for our children and for our grandchildren—and I feel particularly excited for my young granddaughter, who will feel the benefits of the major breakthroughs that we will unlock through this Bill. I am sure that this opportunity is recognised by all hon. Members.
I hope that I have demonstrated the reasons that I cannot accept the new clauses and amendments that have been tabled, and I hope that Members will agree not to press them.
Stephen Flynn
Madam Deputy Speaker, you will be glad to know that my final remarks will be brief, particularly because although we were expecting a rebellion tonight, I did not expect it in any way, shape or form to relate to any of the amendments that I proposed, which is disappointing. Maybe next time—we can only live in hope.
There are two clear and fundamental issues to do with the Bill on which we disagree with Government Members: where they are passionately and vehemently against public scrutiny, and where they are passionately and vehemently against ARIA having a mission. I believe the lack of a mission is a missed opportunity, and I am deeply concerned to hear that public scrutiny in the shape of an FOI request is regarded as an impediment to a public organisation. That should strike fear into all of us about what public money is to be spent on, not just now but in the future.
With your indulgence, Madam Deputy Speaker, I beg to ask leave to withdraw the motion on new clause 1, but I wish to press amendment 1, which stands in my name and that of my hon. Friend the Member for Aberdeen North (Kirsty Blackman), to a vote.
Motion, by leave, withdrawn.
Amendment proposed: 1, in clause 2, page 1, line 7, at end insert—
“(A1) ARIA’s primary mission will be to support the development of technologies and research that support the UK’s transition to net zero carbon emissions or reduce the harmful effects of climate change.”—(Stephen Flynn.)
This amendment sets the primary mission for ARIA to support the development of technologies and research that support the UK’s transition to net zero carbon emissions or reduce the harmful effects of climate change.
Question put, that the amendment be made.
The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)
I beg to move, That the Bill be now read the Third time.
When it comes to the future of the United Kingdom, this Government are unapologetically ambitious, and one of our greatest ambitions is to secure the UK’s position as a science superpower. Through this Bill to create ARIA, a new agency to support the most ambitious research, we are really focusing on delivering on that agenda.
The Bill provides ARIA with broad functions and powers to take an innovative approach to funding high-risk R&D so that each programme manager can provide effective funding to their talented research team. Critically, the Bill allows a balance between oversight of ARIA’s activities and the independence and autonomy that the evidence tells us is so important for its success.
The Bill creates an agency with a unique role to play and the capabilities it needs to do so. ARIA will sit alongside UKRI and other funders in our R&D landscape. It will provide something additional and complementary, and I believe that its offer will indeed significantly improve the UK’s research and development offer in the long term.
I am grateful that today’s debate has focused on making the most of this ambitious new agency. I would like to recognise the efforts of those across the House and in my Department who have got us to this point. I thank the Science, Research and Innovation Minister, my hon. Friend the Member for Derby North (Amanda Solloway). I know that she celebrated her 30th birthday yesterday, and I congratulate her on having achieved this signal success and that significant milestone. I am delighted that she should be such a focused colleague and have delivered what is a really important piece of legislation. I also thank the Bill team for their work at each stage of the proceedings, and parliamentary counsel for drafting such an admirably concise and, dare I say, elegant Bill.
As we continue our progress towards a more normal way of working in this place, I would like to thank everybody who, in the meantime, has ensured that our proceedings have been able to continue with minimal disruption despite these exceptional circumstances. I would like to place on record that you, Madam Deputy Speaker, and all the House staff and your colleagues have done a remarkable job in keeping the lights on—so to speak—and making sure that we progressed in a very expeditious and calm way through these proceedings and through previous stages of the Bill. Everything has been to order, Madam Deputy Speaker.
I also thank the members of the Public Bill Committee from across the House for their extremely constructive and welcome approach to scrutinising the Bill. I particularly thank the Chairs of those Committees: the hon. Member for Bradford South (Judith Cummins) and my right hon. Friend the Member for Tatton (Esther McVey), as well as my hon. Friend the Member for Kettering (Mr Hollobone) and the Member for Halton (Derek Twigg).
I also thank a number of speakers on the Government Benches. I am referring only to the speeches that I saw myself . My hon. Friend the Member for Ynys Môn (Virginia Crosbie) gave a very positive account of why this Bill is so important to her constituents. My hon. Friends the Members for Guildford (Angela Richardson), for North Norfolk (Duncan Baker), who is not in his place, for Newcastle-under-Lyme (Aaron Bell) and others did a remarkable job in presenting the case for ARIA and in ensuring that the Bill proceeded smoothly.
I would also like to thank a number of Opposition Front-Bench speakers. When I saw her speak, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) gave a customary expert and well-considered view. We have our differences and disagreements, but no one, I think, can doubt her sincerity. I thank the SNP spokesman, the hon. Member for Aberdeen South (Stephen Flynn). I am sorry that the rebellion that he anticipated was not as dynamic as he would have liked, but there you go.
Everybody really has supported the principle of this legislation and the creation of ARIA. While we do not agree on all the details, I think that everybody has brought to the debate a spirit of constructive inquiry and scrutiny, and we have greatly appreciated that.
I am confident, Madam Deputy Speaker, that, as the Bill continues its passage, our parallel progress to realise ARIA and to make it happen will elicit further debate and further questions. As the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Derby North, said on Second Reading, and as we have heard again today, the UK is home to brilliant invention and innovation, and we should be able to shape ARIA in a way that can deliver on that promise. The creation of ARIA will, I firmly believe, make our outstanding UK R&D system even stronger and more dynamic, more diverse, and it will help us to innovate and level up across the country. On that very firm basis, Madam Deputy Speaker, I am delighted to commend the Bill to the House.
Edward Miliband (Doncaster North) (Lab) [V]
In this Third Reading debate, I want to start by putting on record our support for this Bill and the establishment of ARIA. The UK is a global scientific superpower, with a proud past, present and future, of innovative scientists, businesses and entrepreneurs. The success of the vaccine roll-out—I pay tribute to everybody associated with that—demonstrates our world-leading science and research power. What we have seen in the debate today and through the passage of this Bill is that we all want to build on this platform. ARIA has the potential to help fill the gap of high-risk, high-reward scientific investment, which is why we welcomed the Bill and sought to play a constructive role in its passage through the House.
I pay tribute to my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah)—I thank the Secretary of State for doing so—for the superb job that she has done in constructively seeking to improve the Bill on behalf of the Opposition. I also put on record my thanks to my hon. Friends the Members for Cambridge (Daniel Zeichner), for Brent Central (Dawn Butler), for Luton North (Sarah Owen), and for Sheffield, Brightside and Hillsborough (Gill Furniss) for their diligent work in Committee, and all hon. and right hon. Members on both sides of the House who have contributed to this Bill. I join the Secretary of State in also paying tribute to all the House staff who have kept this Bill going and on track and all those associated with it. I want to single out the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Derby North (Amanda Solloway). I was going to wish her a happy 50th birthday, but I am happy, on this occasion, to be outdone by the Secretary of State. I say a very happy birthday for yesterday to the Minister.
As the Bill goes to the other place, we continue to believe that improvement is necessary and possible. As we heard in the debate, the biggest improvement to it would be a clearer sense of mission for the agency. We do not believe that the Bill as drafted provides ARIA with a clear enough mission. Ministers have suggested that it is for the chief executive, once appointed, to establish its priorities. We heard this a lot in Committee and again today, but this is not in our view the best way to meet our national priorities, which we believe should be set by Government. There is also a danger, we believe, that ARIA’s resources will be spread too thin. The greatest challenge we face, and this is shared across the House, is the climate and environmental emergency, and that is why we have proposed that fighting it be ARIA’s mission for the first 10 years, but however that mission is set out, I hope this is something that will be returned to in the other place.
Secondly, we believe that the freedom provided to those running ARIA should be accompanied by greater transparency and accountability. We do not believe the agency has anything to fear from this, nor is there justification for the blanket exemptions from the Freedom of Information Act and public contract regulations. The Government’s reason for exempting it is that it will be overwhelmed by requests, but that is not the US experience with DARPA. If the Government want ARIA to carry the confidence of the public, we hope they will think again on accountability in the other place.
Thirdly, as we have heard in the debate, it is essential that each nation and region of the UK benefits from the creation of ARIA—we believe that ARIA should have regard to that when exercising its functions. We have suggested that that could be done through the annual report that is already provided for under the Bill.
These are our issues with the Bill, but we cannot ignore in this Third Reading debate the Bill’s wider context, about which I want to speak briefly. ARIA is an important innovation, but it cannot be detached from the wider landscape of Government policy. Today’s amendment on overseas development aid—new clause 4—may not have been selected, but the argument is not going away. We should not be slashing overseas aid to the world’s poorest people. It is not right morally, and it is not right on grounds of self-interest either. With coronavirus and the climate crisis, our fates are bound together.
What is more, these cuts are impacting directly on British scientific researchers doing the right thing for the world on everything from research on infectious diseases to the development of clean water technology. Some £120 million has been cut from the BEIS budget because of the cuts to ODA. As the Sainsbury Laboratory, one of the country’s leading scientific research institutes, puts it, these cuts have
“pulled the rug out from under many scientific projects that were paving the way to solve urgent challenges in some of the poorest countries in the world.”
All this is in the year of COP26, when we are the hosts trying to persuade other countries to accept our moral authority on the climate crisis and development.
As someone who was at the ill-fated Copenhagen climate summit of 2009, I want to tell the House that mistrust between developing and developed countries was the biggest reason it failed and is one of the biggest risks at COP26. The cut in aid spending undermines our efforts and undermines trust; the Government are wrong to be doing it, and it is self-defeating for our country. There is a very strong feeling about this across the House—quite possibly a majority—and the Government should reverse this cut in funding forthwith. My general experience is that when there is a majority in this House for something, it will find a way to express itself one way or the other. I suggest that the Secretary of State and the Government take heed.
ARIA should not come at the expense of cuts to the core science budget administered by UKRI. This year, UKRI’s budget will be £7.9 billion, a cut from the budget last year of £8.7 billion. That is why Jeremy Farrar said recently:
“There’s a growing gulf between rhetoric and reality in the government support for science.”
It massively ill serves British science and our country to be cutting science spending, and ARIA, welcome though it is—£800 million over five years—simply does not make up for that.
To conclude, we support this Bill, but hope, in the spirit with which we have approached it, that the Government will reflect on the constructive concerns raised throughout its passage on the urgent issue of aid spending by Members on all sides, on science spending and on the detail of the Bill. We hope that the other place can build on and improve the Bill as it progresses.
Greg Clark (Tunbridge Wells) (Con)
It is a pleasure to follow the right hon. Member for Doncaster North (Edward Miliband). It is a particular pleasure as Chair of the Science and Technology Committee to warmly congratulate the ministerial team for bringing this important Bill to such a happy conclusion in this place. I pay tribute to the Secretary of State, the team of officials in the Department and the Clerks in the House, and to the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Derby North (Amanda Solloway), whose enthusiasm and charm contributed in no small part to the sense of consensus, good feeling and good will that there is about the Bill. The fact that its House of Commons stages culminate after the weekend of her birthday is absolutely fitting, and I congratulate her on that.
As Members know, the Select Committee took extensive evidence on the Bill and published a report. We had some fascinating sessions, including a rather less high-octane performance from Dominic Cummings when he came to talk about science policy, as opposed to covid. I think it is a fair reflection to say that the suggestion of this agency, and indeed the important role that science played in the manifesto on which Conservative colleagues were elected, was an important contribution, whatever disagreements and disputes there may be on other aspects.
We can agree on several things. First, it is desirable and appropriate, when we are a science superpower, that we have agencies that do things differently from others. Diversity is a strength, and it is a good thing that we are having a very new agency doing things in a very different way. I think that that has been evident in the contributions we have had.
We took the view on the Committee that it is important that ARIA does not spread itself too thinly. Although £800 million is a lot of money, when it comes to substantial, world-changing projects of inquiry, it can soon go. It seemed for a time today that the budget would be rising not to £800 million but to perhaps £4 billion a year, in which case the advice of the Committee to—in the words of the book by the right hon. Member for Doncaster North—go big on a smaller number of projects may have been redundant, and we may have been able to do everything. However, it seems that that is not going to be the budget for ARIA, and the advice that the Committee has given the incoming chair and chief executive does stand: we should make sure that we do a few things well, rather than many things superficially.
On the subject of the chair and chief executive, leadership is crucial. The hon. Member for Blackley and Broughton (Graham Stringer) emphasised the difficulty and the importance of choosing them, comparing it to electing a Nobel prize winner. That is quite a high bar, but I hope we will find people equal to the task, and they should be encouraged. I hope that those people, when they are appointed, will come before our Select Committee, not because we want to tie them down in any way and to constrain them with bureaucracy, but quite the reverse: our Committee champions science—we are enthusiasts for science—and we want to understand the ambitions and the motivation of the new team.
Achieving stability for a long-term agency such as ARIA is of great importance. In a Parliament that is limited to five years, and when Governments change from time to time, finding mechanisms to entrench institutions and policies that are there for the long term can prove challenging. David Cameron thought that passing a law to require 0.7% of GDP for aid spending was a solution to precisely that, but we found that there are circumstances in which it is not possible to achieve that. In office, I set up the Industrial Strategy Council to inject a bit of stability, but that is not continuing. So these things are challenging. I know that the intention of Ministers and the whole House is to achieve longevity. I think how this very desirable objective can be implanted will require a bit of thought.
The reforms that are embodied in this legislation—low bureaucracy, risk taking and the ability even to fail—are important to encapsulate in ARIA, but that is not to say that the rest of the research landscape could not benefit from those reforms. I hope that the Minister’s appetite, demonstrated through the passage of the Bill, to reform science funding and find ways to do things better and vigorously will not be completely satisfied with the passage of this Bill, but that, with the Secretary of State’s enthusiastic support, she will apply herself to the funding landscape more generally in order to have that same principle of vigour there.
The proposal for this new research agency was included in our party’s 2019 election manifesto and then the Queen’s Speech at that time. Two years on, we are at the point of recruiting the chief executive and the chair, and sending the Bill to the other place to make further progress. I hope that the Lords will give it their customary scrutiny with rigour and enthusiasm, but that they will not detain for too long because this is an important institution, which we want to see up and running and strengthening further our great attributes in British science as soon as practically possible.
Stephen Flynn
It is a pleasure to follow the Chair of the Select Committee, the right hon. Member for Tunbridge Wells (Greg Clark), and the shadow Secretary of State, the right hon. Member for Doncaster North (Edward Miliband). The points that have been made by both, although varied, have certainly covered off many of the points that I would seek to address. I have no desire—and I am sure that Government Members have no desire—to hear many of the arguments that I have expressed previously tonight on Report, in Committee and on Second Reading.
I would like to place on record my thanks to all those involved in proceedings over the course of recent months. They have done an outstanding job, particularly those in the House Service. I also thank our research team—in particular Scott Taylor and Jonny Kiehlmann, who have been a tower of strength, and provided us with a great deal of assistance and information.
I do not intend to keep the House much longer, as I am keen to get home myself, so I will leave it at that.
Madam Deputy Speaker (Dame Eleanor Laing)
That is one of the best conclusions to a speech I have ever heard.
Daniel Zeichner
It is a pleasure to follow the hon. Member for Aberdeen South (Stephen Flynn). On Report, I said that I would be brief because I was going to make a contribution on Third Reading, so I hope the House will accept my apologies for making a few points.
I have been on this Bill throughout its passage, as others have been. It has been a really positive experience as far as I am concerned. The only puzzlement to me is that the Bill was so perfectly drafted that it is in exactly the same state today as when we started; clearly it was impossible to improve. Now, I do not think that is the case. We heard some really important contributions, particularly during the evidence sessions. I echo the comments of my right hon. Friend the Member for Doncaster North (Edward Miliband) in hoping that improvements will be made in the other place and that the Government will listen to some of the suggestions.
I looked at the job adverts for the chair and chief exec. I am grateful to research professionals, as ever, for pointing this out this morning: a remarkably vague canvass is being painted. Tonight it is being presented as a great opportunity. We have had the discussions in Committee, but, frankly, all we really know about it is that this is a unique and unprecedented opportunity. The right person may be out there. I thought this point was well made by my hon. Friend the Member for Blackley and Broughton (Graham Stringer) and referenced by the right hon. Member for Tunbridge Wells (Greg Clark). There may be such an exceptional person, but I rather suspect that, in the process of choosing whoever is to do the job, some of the issues that they will pursue will inevitably follow. I think that, as we trace it back, we will find that the decision to give direction and mission, which has been ducked by this House, will inevitably have crept in during that process.
To some extent, as the shadow Secretary of State picked up, there has been an elephant in the room in our discussion. During the entire process of discussing the Bill, there has been a background rumble of unhappiness in the research community as we have seen some of the issues around BEIS allocations unfolding. There was uncertainty in my constituency running through March as people were very worried about the ODA cuts; perhaps many of us had not quite appreciated just how much that money was being spent in our constituencies on research programmes. For large numbers of people, it was left to the very last with projects having to be cancelled.
One of the moments that will stick in my mind from the evidence sessions was when I asked the chief exec of UKRI
“if you had £800 million to spend…would you spend it on this?”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 13, Q8.]
Of course, it is all about the timing, because she is an impeccable and superb public servant. She hesitated just long enough before coming up with the right answer for the entire room to know that of course she would not—and nor would anyone else in the room.
If the money were genuinely new and extra, it would be a different debate from the one in which it is being taken from elsewhere. My worry—we are seeing this week in, week out with the rumours and debates about what is happening to Horizon Europe—is that it is deeply unsettling the research community. These are long-term issues, and I am afraid that they are doing huge harm.
My conclusion is that, if the funding is new and extra, of course we support it, but my fear is that over the months and years ahead it will get pulled into the general discussion and debate about where budgets are allocated from. It is all too familiar. Governments over many, many years have tried to lift spending on research and development, but sadly there is almost an inexorable law that we fail to do it. We need to do better in future.
There was also advice from the Americans about how to make this work, which was not really listened to. They have a model that seems to work in their system; whether it can be transported into ours is a moot point, but it is sad that we are not even listening to their advice.
Finally, it seems slightly curious that the Government continue to pursue a scheme that, basically, was pursued by a now discredited former adviser. I just hope that they will reflect, take the opportunity to change course, give this new idea a real mission, make that mission the climate emergency, and make something of it.
Mark Logan (Bolton North East) (Con) [V]
How many times do we see politicians tweeting, Facebooking or, for that matter, speaking in the Chamber and saying, “I welcome—” or “It is with great delight that—”? The irony is that I have tried to ban such things from my previous external communications, but today I am both proud and delighted to welcome the Government’s Advanced Research and Invention Agency Bill. Along with the Secretary of State, I thank everyone who has been associated with getting us to this unique moment this evening.
A framework in the future, as the Minister said, will ensure that all parts of the United Kingdom will benefit from ARIA, which is why I continue to extend my hand of friendship to ARIA for it to be headquartered in Bolton. Bolton is a town of invention. We have a steady supply of inventors, long-standing institutions of invention, the appropriate infrastructure for future inventions and the mother of all invention: I have already secured a premier office location in Bolton that is ready for ARIA to move in. Essentially, invention is in Bolton’s DNA, and ARIA is made for Bolton.
ARIA is not just for Bolton or for Britain, but for the world and for the brainchildren of tomorrow. Invention blossoms from competition and diversity, so ARIA needs a range of cultural backgrounds to catalyse that creativity. We have the human capital, and people will come from far and wide to this new centre of invention, from all walks of life. I very much welcome the job advertisement, which I think went live last week, for the position of CEO of ARIA.
In conclusion, we have the tools ready to welcome a world-class invention hub. I would welcome the opportunity to discuss the points I have raised with the Department, the ministerial team and, of course, the new CEO once they come on board. With that, I very much congratulate everyone who has been involved in getting us to this point this evening.
Sarah Olney (Richmond Park) (LD) [V]
I promise not to detain the House much longer. On behalf of the Liberal Democrats, I welcome the Bill. We support all science and technology spending. We support what the Bill is trying to do, and we wish it safe passage through the other place.
I beg your indulgence, Madam Deputy Speaker, but I want to take just a couple of minutes to talk about my new clause on climate change and some of the other amendments on similar themes. I have listened to what those on the Government Benches had to say about why they did not want to support those amendments. Broadly speaking, that seems to be around not wanting the agency to be constrained in any way and wanting it to have full rein to take the science where it leads. Obviously, that is a laudable enterprise, but the point I wished to make in tabling that new clause was that nothing innovative can stand the test of time if it does not meet net zero targets or respond to the challenge of climate change.
If any of the new inventions or new research that come out of this new agency do not respond to that challenge, they cannot be a sustainable part of our future economy and society. That is why climate change has to be a baseline, and that is what I was trying to achieve. The need to tackle climate change is going to be a constraint anyway on the agency, so why not have that in the Bill?
During this debate, there has been a lot of reference to the vaccine roll-out, which has obviously been a great success. The research and how it has been carried out is obviously a fantastic example of science and technology really succeeding, but the key point is that the research and the vaccine were responding to a very clear and present challenge. The scientific community has responded amazingly, but the lesson to learn is that the science was responding to a challenge. We have no greater challenge ahead of us right now than tackling climate change. We will find, I believe, that even without the climate change amendments in the Bill, that is what the agency will be doing anyway. It will be responding to the challenge of climate change and it will need to take account of carbon emissions.
I briefly want to talk about scrutiny. I understand the reluctance to allow too much scrutiny and not allowing freedom of information requests. I know that scrutiny can sometimes be vexatious or opportunistic, but science answers questions. That is what science is for; that is the function of science, and it should never shy away from questions. At its best, scrutiny can be constructive and improving, and that can only be of benefit to the agency being set up by this legislation.
To sum up, we support the Bill. We absolutely want ARIA to succeed. We very much look forward to seeing what it can produce, and we support the Bill’s passage to the other place.
Question put and agreed to.
Bill accordingly read the Third time and passed.
Advanced Research and Invention Agency Bill
Tuesday 8th June 2021
(3 years, 6 months ago)
Lords ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Amendment Paper: Consideration of Bill Amendments as at 7 June 2021 - (7 Jun 2021)
Advanced Research and Invention Agency Bill
Tuesday 2nd November 2021
(3 years, 1 month ago)
Lords ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 7 June 2021 - (7 Jun 2021)
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, the Advanced Research and Invention Agency Bill creates a new funding agency, ARIA. ARIA will support ambitious programmes of research and innovation, seeking the scientific and technological breakthroughs that transform the lives of people across the UK and around the world. It will further diversify and strengthen our UK funding landscape, which is appropriate at a time when public investment in R&D is increasing to £20 billion in 2024-25 and concerted action is being taken across Government to reinforce the position of the UK as a science superpower.
Our science system already benefits from a variety of funding streams: government spending through UKRI programmes such as the Strategic Priorities Fund, investment from businesses small and large, and charitable sources such as the new Wellcome Leap. That plurality is a strength that we are seeking to build on with ARIA. I therefore emphasise at the start that the motivation for ARIA’s creation is to innovate how research is funded, rather than any specific topics or areas which need investment. It is about enabling a new programme-led approach to public R&D funding, optimised for high-risk research—new for the UK, that is, as we have learned from the tremendous successes of this funding model around the world, mostly from the United States, which many noble Lords will of course be familiar with.
I emphasise the two core features of this approach: first, the expectation that the full benefits will be felt only over the long term, which therefore requires patience; and secondly, that for every programme that produces transformational benefits many will not, which requires a fairly unique attitude towards failure. The research community has been clear, in providing evidence and through engagement, that it wants to see these realities of the research process reflected in the new funding body. I hope that these issues similarly resonate with many noble Lords who are concerned with research and its funding. These features are central to the approach that we are seeking to take with ARIA.
Before expanding further on the role that ARIA will play, I must emphasise the existing excellence of the UK’s R&D system. Although the Government have engaged with and sought to learn from similar agencies in other countries, ARIA must be designed sensitively to the UK’s unique context. That means not copying wholesale from elsewhere, or blindly replicating features that might in some places be successful, without carefully considering the fit with the UK system. It also means remaining conscious of the scale of this new agency. ARIA’s £800 million budget is significantly less than 2% of overall UK R&D spending.
Looking at that total spending, ARIA represents a small addition at the high-risk end of the spectrum and is equipped to take a unique approach to supporting that type of research and development. Viewed through that lens, one important point should be clear: ARIA will complement rather than compete with the system-wide responsibilities of UKRI—the steward of our overall research landscape. Indeed, those responsibilities remaining firmly outside of ARIA’s remit goes hand in hand with the autonomy and freedom that we expect it to have.
ARIA is not an institution for responding to the day-to-day priorities of government, whether specific strategic challenges, or the Government’s desired balance of research, development and commercialisation activities. ARIA’s clear remit will be to pursue programmes of research focused on realising specific objectives that have the potential to produce transformative, long-term benefits. These objectives must be set by programme managers with deep technical expertise and brilliant ideas, who are empowered to pursue those objectives with a variety of tools and a single-minded focus and to fund research and innovation projects through contracting and granting in businesses, universities and elsewhere, drawing those contributors and their outputs together to realise their objectives. They must be free to do so, in the expectation that a small proportion of projects will in time lead to things that are truly extraordinary.
Taking this approach requires trust in the good that comes from investment in this type of R&D—the high-risk, long-term and difficult to measure, which we have clearly and repeatedly heard could be better provided for. But it is not only a matter of trust; the evidence for this R&D investment and its spillover benefits is compelling. Research suggests that while the annual private rate of return from R&D and innovation averages 20% to 30%, the social returns are two to three times higher.
Although ARIA will be specialised and—by taking a new approach—something of an experiment in how we fund UK R&D, it should be one that the whole system learns from. Aspects of ARIA’s unique approach might successfully be applied to other UK R&D funders, and I expect the potential benefits of that to act as an incentive for close integration with the wider research system, which will be so advantageous both for ARIA and other actors.
This Bill—and the creation of ARIA—aligns us with many other countries using the funding model that I have outlined. From the US to Japan and Germany, this programmatic approach to supporting the most ambitious research goals has been deployed, in some cases with extraordinary success, and it is entirely appropriate that at this point we seek to apply it through ARIA to benefit UK science, research and innovation.
I will now move on to the specific provisions of the Bill and set out how the key clauses relate to the ambition and approach that I have just described. I will first address ARIA’s functions, as detailed in Clause 2. ARIA is expected to primarily operate as a funder of others, which is reflected in its functions to
“do, or commission or support others to do”.
It is not restricted to operate at a particular point on the technology readiness level spectrum; indeed, individual programmes may require a mixture of projects that seek to solve fundamental science challenges alongside work to develop and apply existing knowledge in new contexts. This is reflected in Clause 2(1), which places development and exploitation alongside the conducting of scientific research. The range of financial support that ARIA can provide is expressly broad. This equips programme managers to tailor the funding that they provide so that it is appropriate to the specific recipient and project. This is essential in supporting a broad—even unexpected—coalition of researchers and organisations, and ensuring the diverse input that is known to be so beneficial in solving difficult scientific problems. The unexpected collaborations and high degree of interdisciplinary work that we expect this to support is one of the most compelling features of the programme-led ARIA model.
Clause 3 gets to the very heart of ARIA’s approach. Implicit in pursuing high-risk research and ambitious programme goals must be recognition that many projects and programmes will not fulfil their stated aims. The risk of failure is high, and that must be accepted from the outset if ARIA is truly to be equipped to tackle the most difficult challenges, with ground-breaking implications. Clause 3 states that ARIA may give particular weight to those ground-breaking benefits when supporting R&D activities which, almost by definition, carry a high risk of failure.
This is a valuable approach for two reasons: first, because of the transformational benefits of success in this arena—the scale of impact of technologies such as the internet, GPS or mRNA vaccines, all supported by the US DARPA, is difficult to overstate; and secondly, because of the spillover benefits that can accrue even from unsuccessful projects, such as collaborations and approaches that would not otherwise have existed, or progress that later proves vital for fields or problems unrelated to the original programme.
I turn now to the role of the Secretary of State, which is addressed in Clauses 4 and 5 and in Schedule 1. It is also notable by the provisions that the Bill does not contain. I have already spoken about ARIA’s need for autonomy, and on that basis, the role for the Government in its ongoing affairs must be limited. The provisions in Clauses 4 and 5 of the Bill represent a baseline to ensure ARIA’s operation, allowing funding to be provided and issues of national security to be addressed. The public money provided to ARIA requires an appropriate level of oversight and, accordingly, there are provisions to ensure core tenets of good governance in Schedule 1. This includes the Secretary of State’s power to appoint non-executive directors and the reserve power to introduce conflict of interest procedures should it prove necessary in future. However, there is no power for the Secretary of State to require a strategy, no specific power of direction over ARIA’s allocation of expenditure, and the Secretary of State’s information rights are deliberately limited to the exercise of their functions with respect to ARIA.
In these matters we have sought to strike a balance between protecting ARIA’s strategic and operational autonomy, which is essential to its remit, and providing sufficient assurances for the important role with which it is to be entrusted. This difficult-to-strike balance has been a theme of much debate on the Bill so far, and I have no doubt that that will continue to be the case in our House.
Continuing this theme, I will speak briefly on the exemptions the Bill affords ARIA from standard public sector obligations around procurement and freedom of information. There are practical and operational reasons for both. Exempting ARIA from the Public Contracts Regulations’ contracting authority obligations is a result of its fundamentally different way of operating compared to our other core public R&D funders. We expect ARIA not only to give grants but to commission and contract others to carry out research. The exemption ensures that ARIA can procure services, goods and works related to its research goals at speed in a similar way to a private sector organisation. This mirrors the successful approach taken by DARPA, which benefits from other transactions authority, giving it the flexibility to operate outside US government contracting standards.
On FoI, the pertinent question to me is where we want ARIA’s staff to direct their focus. Earlier, I spoke about people with deep technical expertise and brilliant ideas who are empowered to pursue their objectives. I believe that of course that should apply to all ARIA staff and that this ambition is the last thing we should move away from if we want this organisation to succeed. In this unique case, I do not think those people should be employed to administrate FoI requests. This approach should be viewed in the light of ARIA’s other statutory commitments to transparency through its reporting and accounts, subject to scrutiny by the NAO, and with the natural incentives towards openness of having an identity to build and collaborators to attract.
Returning finally to the purpose of the Bill before us, it is right that we recognise the existing excellence of our R&D system and that we add to it only in a considered way. However, I believe we should also allow ourselves to consider the possibilities in doing so and challenge ourselves on whether we could do more, or better, in the ways we support UK science and innovation. The creation of ARIA, through this Bill, is an exciting addition to our research landscape, but it is also a judicious one, rooted in historic successes, drawing on international best practice and responding to the current needs of UK researchers. I beg to move.
Viscount Stansgate (Lab)
My Lords, it is a totally unexpected pleasure to follow the Minister as I am the first in the list. It is a great honour to take part in this debate, the first Second Reading in which I have taken part, when I consider the range of other speakers who we are going to hear from this evening, all of whom are so very distinguished. I am also mindful of the fact that the president of the Parliamentary and Scientific Committee is contributing to the debate. As his vice-president, I cannot remember a time when both officeholders were speaking together.
The relationship between the Government and science is subtle, complex and of critical importance to the future of the country. It goes without saying that we have a tremendous record on science in this country, to which I pay tribute, along with everybody else. Our record on Covid vaccine development and distribution is but the latest example. The UK is world class, but it is a competitive world out there and this Bill matters to our future if we are to be the science superpower we all want us to be.
The problem for successive Governments of all kinds is that they have to try to find a balance between giving researchers the freedom to follow their own instincts and curiosity, while at the same time guiding large sums of public money towards wider societal benefits, such as national prosperity and real improvements in the quality of life for their citizens. This balance is not easy to strike. ARIA represents an attempt to strike a new balance by introducing a new organisation with a relatively small staff and a relatively small amount of money with extreme freedom to decide what to do without the existing constraints that apply elsewhere. There is also a difficult and delicate balance to strike between parliamentary oversight and the intellectual freedom which will be necessary to enable ARIA to generate the creativity required to do things differently.
The Minister made it clear in his opening speech that what is being proposed is something very new because we are dealing with high risk and potentially high reward, as he acknowledged. Therefore, the heart of what the Bill is about is not so much an agency as an idea. We are discussing an experiment never before undertaken in the UK, and we are being invited to approve and establish a new participant in what is called the scientific landscape. If we were having a vote today, I would vote for the Bill because this is broadly a good idea and I support additional funding for science, but it raises lots of questions which is going to make the Committee stage very important, and I will return to that in a bit.
First, I hope the House will allow me a brief moment to consider the wider historical context of the proposals that the Government are inviting us to consider today. More than 100 years ago, I think in 1918, Lord Haldane chaired the committee that led to the establishment of the first research council. The Haldane principle that emerged was, in essence, that research should be decided by researchers and not the Government. This has stood the test of time not least because it is convenient for Ministers. It shields them from bearing the direct responsibility for making individual decisions on individual funding.
ARIA takes this a stage further. It will need to offer real scientific independence at programme level. With regard to peer review, standard processes may not always be appropriate for ARIA, as it aims to empower exceptional scientists to start and stop projects quickly. I do not particularly care for military analogies, but when I think about ARIA it makes me wonder whether in times past Barnes Wallis or Alan Turing might have been funded by ARIA. They were both individually brilliant.
Over the decades the structural organisation of science in government has been through endless changes. For about a quarter of a century science was put in with the Department for Education, to create the DES, and, frankly, that is where science languished. I regard the start of the modem era as being when the noble Lord, Lord Waldegrave, launched Realising our Potential in 1993, rearranged the research councils and set up the Office of Science and Technology. Even the current department, BEIS, has over the past 20 or more years been through many changes in emphasis and names from the DTI to the ungainly DIUS, if anybody remembers that, and there may be more name changes on the way. Then there are things such as the Technology Strategy Board, which became Innovate UK until its absorption into UKRI, and even UKRI itself, which was described at the time as the kind of reform that comes along only once in a generation, was formed only in 2018.
Some argue that there is no point in creating ARIA if it is going to be just another entity in the science landscape doing the same things as UKRI but with less money. There is no guaranteed method, and never has been, of successfully identifying commercially successful projects arising out of science research. Too often in this country, as noble Lords will know very well, we have suffered from what is called “the valley of death”—that is, we are good at discovering new things but bad at developing them and exploiting them for commercial success. However, it is hard to legislate for success.
The agency will not automatically succeed. On the contrary, one of its earliest proponents suggested that if ARIA is not failing then it is failing, which is an interesting point. Last weekend, I went to see the latest James Bond film—I recommend it—and it occurred to me that there is a link between those films and this Bill. If the Minister was promoting ARIA as a movie, I can see it now: “ARIA—Licence to Fail.” Whether it does or not is almost impossible to predict because we do not know when a transformational breakthrough will be made, so consistency of funding over the next 10 years will be crucial.
One thought that comes to mind at the start of the many questions I want to put is about the agency’s proposed name. We know that much of the inspiration for ARIA comes from America. When this idea was first mooted by the Government in March 2020, they called it ARPA. They have now chosen the letter “I” for “invention” rather than “P” for “projects”, and that is an interesting distinction worth exploring. “Invention” conveys more of an individual exercise, whereas “projects” suggests a more collaborative approach with many more people involved, so we may discuss in Committee whether we should reconsider the title.
I am grateful to all those organisations that have been in touch to offer advice on ARIA, and I am sure there will be a lot more as we go through Committee. They include the Royal Society of Biology, the Biochemical Society, the Physiological Society, the Campaign for Science and Engineering, the Royal Society of Chemistry and others.
My own list of questions is not exclusive; I am sure that other noble Lords tonight will have many more. But they include the following: what will the relationship be between ARIA and the existing parts of the research landscape, such as UKRI, in particular? What will it be with the new science and technology council, recently established by the Prime Minister, and the new Office for Science and Technology Strategy? What about its relationship with the Council for Science and Technology, currently co-chaired by the chief scientific adviser and the noble Lord, Lord Browne of Madingley?
Baroness Bloomfield of Hinton Waldrist (Con)
I gently remind the noble Viscount that there is an advisory speaking time limit of seven minutes. If we go on from the first speech, we get rapidly out of control.
Viscount Stansgate (Lab)
It is kind of the noble Baroness to mention it. If I had a pair of scissors, I should have to cut this speech in half, and noble Lords would no doubt be only too grateful. I will do so verbally.
One area where I think we will divide in Committee is that the Government are determined to exempt ARIA from freedom of information. Like other noble Lords, I received a briefing from the Information Commissioner’s Office, which strongly advocates that FoI requests should be allowed. The News Media Association has also taken the trouble to write to us on the same issue. I am sure that is something we will explore.
In drawing my remarks to a close, I will mention the famous questions that DARPA used to identify projects which were worth funding. First, what are you trying to do, and can you explain it in jargon-free language? Secondly, how is it done today, and what are the limits of current practice? Thirdly, what is new in your approach, and why do you think it will be successful? Fourthly, who cares? If you are successful, what difference will it make? Fifthly, what are the risks? Sixthly, how much will it cost? Seventhly, how long will it take?
Finally, the Bill proposes that the Government must wait 10 years before taking any action to close ARIA down, so I look forward to taking part in the Second Reading of the “ARIA (Continuation) (Amendment) (No. 2) Bill 2031”, when we will at least have the experience of 10 years to guide us in our debates.
Lord Clement-Jones (LD)
My Lords, clearly we need to discuss the R&D and innovation context in which ARIA is designed to sit. We now know the spending context; the UK has a long-term target for UK R&D to reach 2.4% of GDP by 2027. But the Chancellor has pushed back the target of £22 billion per annum on R&D, from 2024-25 to 2026-27, which may impact on private investment.
Beyond this, there is no shortage of road maps, reviews and strategies which lay out government policy in this landscape. In 2020, we had the well-intentioned R&D road map. Since then, we have had the UK Innovation Strategy with its “Vision 2035”, the AI strategy, the Life Sciences Vision, the fintech strategic review—all, it seems, informed by the integrated review’s determination that we will have
“secured our status as a Science and Tech Superpower by 2030”—
language repeated recently by the Chancellor. I see now that we are due a review of UKRI, on top of the Nurse review. I am sure that they are meant to give us a warm feeling, but it is very unclear how all the aspirations reflected in these documents fit together, let alone with ARIA—
“a brand in search of a product”,
to quote the Science and Technology Committee.
The noble Lord, Lord Hague, wrote a wise piece in the Times a couple of weeks ago. In concluding, he said:
“But the officials working on so many new strategies should be running down the corridors by now and told to come back only when they have some detailed plans that go far beyond expressing our ambitions.”
The problem is working out how and whether the creation of ARIA is any kind of priority, and practically how it will operate in terms of skills and resources. The key to understanding this seems to be the framework document which will outline the operational relationships for ARIA, but we are told this will not be published until after the Bill is through. That cannot be acceptable.
The budget for ARIA, at £800 million over four years, looks relatively modest when compared with the research councils’ budgets, especially when funding is actually only £500 million up to the end of this spending review period. From what one can see, ARIA will be entirely independent of UKRI, as the Minister stated, including Innovate UK. My concerns are the opposite of those of the Science and Technology Committee regarding ARIA’s potential dislocation from mainstream innovation strategy. Given that, what oversight over ARIA will the Treasury have? What will be the public accountability of ARIA, and how transparent its activities? Will it co-ordinate activities with UKRI at all? Will the National Science and Technology Council have any role in relation to ARIA?
It is surely completely unacceptable, as the ICO has pointed out, that it should be exempt from Freedom of Information Act requirements. As it said:
“Without this, there will be a lack of transparency, accountability, trust and confidence in ARIA.”
After all, the US equivalent of ARIA, DARPA, is covered by the US FOIA. As the ICO also says, the FOIA
“includes safeguards which allow a balance to be struck between the public interest in transparency and the protection of legitimate interests.”
As the Minister described, programme managers, it seems, will be appointed to commission work funded by ARIA. But what is the operating model—along the lines of the Crick or the Turing or that of the EPSRC? How will it commission research and collaborate with universities, the start-up community, catapults or research operations of larger companies? Where does ARIA fit with the levelling up regional aspirations for R&D? What is the likely interaction of ARIA with the UK’s technology clusters and with initiatives for regional and local innovation? Of course, as the Delegated Powers and Regulatory Reform Committee has pointed out, ARIA’s existence could be short-lived—abolished by the Secretary of State’s fiat.
The truth of the matter, however, is that we do already rank highly in the world of early-stage research, and some late-stage, not least in AI. It is in commercialisation —translational research and industrial R&D—where we continue to fall down. As the noble Lord, Lord Willetts, is quoted as saying in a recent excellent HEPI paper “Catching the wave: harnessing regional research and development to level up”:
“We all know the problem – we have great universities and win Nobel Prizes, but we don’t do so well at commercialisation.”
The functions for ARIA listed in the Bill include to
“encourage, facilitate and provide advice”
and to provide grants, loans and investments in companies, so what will be the long-term relationship with Innovate UK? Despite the creation of and support from the British Business Bank, our investment culture is more risk averse than Silicon Valley. Our innovators are having to sell out too early. The DARPA model has a powerful relationship with industry. Is that the intention here?
There are many other things that we could improve in our UK R&D and innovation universe, beyond the creation of ARIA. Our research sponsoring bodies could be less micromanaging. I welcome the Chancellor’s moves to extend R&D tax credits to investment in cloud computing infrastructure and datasets, but our patent box scheme is complex to apply for and not cost effective. There should be more support for catapults, which have crucial roles as technology and innovation centres, as the House of Lords Science and Technology Committee recommended. We could also emulate America’s Seed Fund, the SBIR and STTR programmes. On the regional front, we should be seeking to make universities regional powerhouses, tied in with the economic future of our city regions through university enterprise zones.
But finally, will the Minister give us a hint as to which technologies the Government consider will form the core of ARIA’s programmes? I am very enthusiastic about the future of UK research and development, innovation and their commercial translation in the UK, and want them to thrive for all our benefit. However, I remain to be convinced that ARIA is the answer to many of these questions. It is not enough to say, as the innovation strategy paper does:
“we do not know what ARIA will create. That is the point.”
We need a great deal more assurance about where it fits and whether it will be a useful addition to our R&D and innovation landscape.
Lord Patel (CB)
My Lords, I start on a positive note: I am supportive of the establishment of ARIA. I wish its budget was bigger than it is. ARIA is modelled on the US agency DARPA, which has its focus on research and technology related to the military. DARPA’s success has built confidence among venture capitalists and angel investors, leveraging more funds above its core funding.
The strength of the UK’s research sector is its diversity of funding. Despite the belief of some, research councils in the UK have been very successful at funding discovery science. A good example is the MRC Laboratory of Molecular Biology in Cambridge, which has conducted high-risk, high-reward discovery research from its beginnings. What has been lacking is the freedom that research councils need to explore new ideas and take some risks. The governance structure of government R&D funding, with strong BEIS involvement, ties the research councils, Innovate UK and UKRI in bureaucratic knots, stifling research and innovation.
Having got that off my chest, I think the introduction of a new funding stream presents new opportunities. In being able to support projects that are high risk, it could help broaden and strengthen the UK’s research capabilities, allowing new sectors to emerge. The “I” in ARIA—invention—is good, because it offers an interesting and original creative opportunity. Grants for invention of technologies tend to do very badly in peer review in comparison with grants that aim to discover something. ARIA money explicitly to fund invention of technologies could be very powerful.
I now come to some of my concerns, which I hope the Minister might help allay. The Government have done a good job of framing the structure of ARIA, presented just now by the Minister, taking the best of the learning from DARPA and other US ARP agencies while accepting that some aspects need to be different in the United Kingdom. However, there is a need to better define and articulate the scope and objectives of ARIA, knowing that the agency’s impact will depend on its ability to do things differently. I hope the Minister will comment on this, too.
ARIA will fail if it is not allowed to do things differently. To this end, there is a need for a strong, non-traditional CEO, empowered to shape the operating model of ARIA and given the freedom to do so. Further, the agency’s autonomy and speed to action will require a governance model that protects it from day-to-day politics, encourages and allows it to be driven by greed for learning and progress and not be judged by failure, and ensures an appropriate level of funding over a reasonable length of time. For this and more, the agency needs a strong, respected, politically powerful chair who strongly backs the CEO and is single-minded with an objective of making ARIA a success. ARIA also needs a strong senior political figure who is prepared to bat for it and defend its autonomy and is willing to take the flack when there is bad news. Without this, ARIA will fail. Much of DARPA’s and other ARPAs’ success in the USA is down to the strong backing they get from the Secretaries of State in the relevant government departments. I ask the Minister to comment on the model of governance and on who the senior Minister responsible for ARIA will be. Will it be the Secretary of State for BEIS?
Researchers in the UK are keen to embrace new models of support that allow them to explore high-risk ideas. The opportunity to unlock latent potential in translational research in the UK is enormous. Currently, this is biased towards big industry, while individual scientists are increasingly interested in entrepreneurial models of translation. Such a model could rival US innovation models. To achieve this, more is needed than what is already proposed in the Bill. ARIA grants should waive the 20% cost sharing, which will be a barrier to high-risk research and translation. Can the Minister confirm that it is the intention to do so?
Current requirements for spin-out companies in the UK compared to those in the US are cumbersome, bureaucratic and costly. They stifle innovation and need to change. ARIA should be able to explore funding private and hybrid institutions for research, a highly successful model that DARPA has followed. DARPA’s and other ARPAs’ success in the United States is related also to US Government procurement policies that favour innovations developed by agencies. It is hard to envision ARIA’s success without a comprehensive public procurement strategy alongside. I hope the Minister can comment on that.
I end by wishing that ARIA is a success. If it is, it could be a model for more UK R&D funding.
Lord Bethell (Con)
My Lords, like others in the innovation space, I have come strongly to support ARIA. I know from my experience as an Innovations Minister that UK research bodies—UKRI, NIHR and our research charities—are really productive. We mobilise rigorous, independent teams on research investment decisions; we administer research to a very high standard of accountability and efficiency, and we validate results through rigorous peer review—these are very commendable qualities. That research bureaucracy is why the payback from UK investment is very high.
However, I have had lived experience of big gaps in our national capability. Our research bureaucracy moves at its own pace, to its own beat, and is not always aligned with our national priorities. During the pandemic, I found time and again that the very reasons why we are so successful in peacetime are exactly the reasons why we were not good in an urgent situation. Investment decisions took too long, creating consensus around complex challenges was sometimes impossible, and validation processes were sub-scale, inconclusive and took an inordinate amount of time. That is why I strongly support ARIA. In the heat of battle, too often I was tearing my hair out with the committee-led, network-based, consensus-building, “I’ll get round to it in my spare time”, monthly-meeting approach. What I yearned for was a high-risk approach, which is what ARIA brings to the party.
RECOVERY, the Vaccine Taskforce, the Therapeutics Taskforce and the innovations and partnership team within Test and Trace were all unorthodox arrangements that delivered massive results for the country. That is why I agree with the Minister that there is a clear appetite for high-risk, high-reward research with strategic and cultural autonomy. This will usefully challenge the current orthodoxies, and the experiment will usefully inform reforms in how we do research.
I want to echo one concern raised by other noble Lords, about the strategic direction of ARIA. I am gravely concerned that the emphasis on autonomous objective-setting does not give the impetus and direction necessary for success. My experience is that the most impactful returns come when there is a clear outcome from the very beginning. By way of a metaphor, perhaps I may tell you this: I remember when the Prime Minister made generalised appeals for help during the pandemic. The response was often creative, exuberant and completely unfocused. I remember in one instance the NHSBSA having to stand up nearly 3,000 operators to triage and assess the various offers that had come in. When the final analysis was done, it found that only a handful had any value. But when we published our requirements, we frequently had our needs met within days. This principle applies to even the most brilliant research organisations run by the most brilliant research managers.
I appreciate that we are looking at enabling legislation. I have brought enabling legislation through the House myself, so I understand that many practical arrangements will be solved in secondary legislation, but I want to emphasise two higher-order matters that need to be clearly answered by the Minister at this stage. If they are not, I fear that the process of secondary legislation will be a difficult challenge.
First, I would really like the Minister to give a commitment that ARIA will be orientated around a small number of clear, societal challenges, and play a role in stimulating cross-disciplinary innovation. I would like the Minister to talk a little about where in the Bill that commitment could or should be articulated. If that commitment and orientation can be put into the Bill, what will the framework for agreeing those challenges be? I appreciate that this is not the place to make those decisions today, but the Bill needs clarity now from the Minister on how those decisions will be made, how success will be assessed and how they can be updated as ARIA continues its business.
Secondly, there is a question in my mind about what stage in the innovation cycle ARIA will be targeting. In the 21st century there are very few unclimbed mountains in the world and very few apple-drop moments, when a single inventor has a profound brainwave that transforms thinking. During the pandemic, it was my expectation that this global catastrophe would elicit a number of breakthroughs, particularly in the field of pathology. I spent a huge amount of time with Israelis, Singaporeans and South Africans looking at, for instance, spit tests, breath tests, the MIT cough tests, Covid dogs, a test that involved radar and a test from France involving testing wastewater.
In fact, the two biggest breakthroughs involved high-risk strategies and they were programme-led, but they were iterations of two very long-standing technologies. The first, the lateral flow test, was first used in 1956 and is commonplace for pregnancy, HIV and drug tests. It was incredibly tough to find one that worked to our satisfaction, but when we did, we could send out hundreds of millions to catch asymptomatic illness. The second was the good old PCR test, which benefited from an army of robots automating the process, meaning we could get from a few thousand a day to nearly a million a day. These were unromantic iterations, but they were hard-fought and delivered a huge amount of value.
The same could be said of vaccines. It took the Oxford team just three days to essentially retool a malaria vaccine, though it did take them 300 days to prove efficacy and safety. On therapeutics, dexamethasone was first synthesised in 1957, but, after 10,000 clinical trials, it proved to work around the world.
For that reason, I believe ARIA should be focused not on new scientific discoveries but on transformational applications.
Lord Davies of Brixton (Lab)
My Lords, first, I apologise to the Minister as I was two minutes late coming in, but I had been discussing the triple lock for three hours and I had somewhere to go—I will not go any further than that; I hope that is acceptable. Secondly, it is an honour to take part in this debate with so many distinguished Members.
There is no escape from the fact that we have here an orphan piece of legislation. We have the Minister here as its foster parent, and we must thank him for providing it with as much love and support as he can muster, but the natural parent—the person responsible for the orphan’s conception—is long gone. Perhaps this is why there is a certain lack of focus, as other Members have mentioned.
I will support the Bill at Second Reading, if only because it is a type of natural experiment; a single data point in finding out what is an effective method of funding worthwhile research. Let us see how it works out.
However, it needs to be looked at closely in Committee, as there are obvious shortcomings. Others have mentioned the exclusion from freedom of information. There is no convincing explanation advanced for that, though the “burden” is referred to. But a well-run organisation ought not to find it a burden, particularly as we were promised in the statement of policy intent that the agency
“will be an outward facing body which will proactively provide information about its activities”
—except when people ask.
Concerns were also mentioned by the Delegated Powers and Regulatory Reform Committee of the House. There is the power given to the Government to dissolve an agency that is established by Parliament; the argument is that, if it is established by Parliament, it should be dissolved by Parliament. There are also examples of wide-ranging Henry VIII powers.
The main concern I wish to raise—I have mentioned this before and was grateful to meet the Minister earlier in the week—is the lack of a clear story; a story to tell us, the taxpayers, what the agency is meant to be doing, what it is for and how it will work. The only words in the Bill itself that mark out the agency as doing anything special in the work it undertakes are in Clause 3, “Ambitious research, development and exploitation: tolerance to failure”:
“In exercising any of its functions under this Act, ARIA may give particular weight to the potential for significant benefits to be achieved or facilitated through scientific research, or the development and exploitation of scientific knowledge, that carries a high risk of failure”.
So all we really have is
“the development and exploitation of scientific knowledge, that carries a high risk of failure”.
One good thing, even if it is unfortunate that it needs to be said, is that the term science is defined in Clause 12 as including social sciences. Much of the discussion about the agency has assumed that it would undertake only what is often characterised—mistakenly, in my view—as hard science.
However, what is not defined in the Bill is risk. Risk is, unfortunately, a term that is misunderstood and frequently misused. While I think Clause 3 is right to include risk, the Government need to say more about what it means in this context. What do they mean by risk? There is not much enlightenment in the Explanatory Notes. Clause 2(6) says that the agency “must have regard to” economic growth or benefits, “scientific innovation and invention” and
“improving the quality of life”.
But that goes without saying.
We also have the statement of policy intent document. It is meant to describe the rationale and intended purpose of the agency. But the document is astonishingly vague, full of buzzwords, and depending in practice on decisions that are yet to be taken. Of paramount importance among those decisions is the appointment of both the first chief executive officer and the chair, who are presented as key to the success of the agency, as
“the first CEO will have a significant effect on the technological and strategic capabilities of the UK over the course of generations.”
The appointment of the CEO by the Secretary of State will therefore, in effect, determine the future of the agency. It is not just a matter of staffing or of finding someone with the skills to run an organisation; it is an appointment that will go to the heart of what the agency is supposed to do. We are still waiting, even though we were told last March that the recruitment process would “soon begin”.
Can the Minister tell us where we have got to? Can he also tell us perhaps what questions the Secretary of State is going to ask the candidates in the appointment process? The appointment process is key, and we need to know more about what the Secretary of State will be looking for when they come to make the appointment. It is also the CEO who will appoint the programme managers.
It is worth highlighting the words of the chair of the Commons Science and Technology Committee, the right honourable Greg Clark MP, who has said:
“The Government's financial commitment to supporting such an agency is welcome, but the budget will not be put to good use if ARPA’s purpose remains unfocused. UK ARPA is currently a brand in search of a product. The Government must make up its mind and say what ARPA’s mission is to be”.
It has been renamed ARIA, but we do not have any greater clarity on its purpose. In my dying seconds, I suggest that its purpose be climate change; ask it about climate change.
Lord Lansley (Con)
My Lords, I am grateful to my noble friend for his introduction to the Bill. Like the noble Lord, Lord Davies of Brixton, I had a feeling that we were being handed the Dominic Cummings vanity project. When I listened to my noble friend on the Front Bench, I thought otherwise. It survives beyond him and very much has a life of its own. I look forward to us helping to define that life.
I also look forward to further contributions from the noble Viscount, Lord Stansgate. There was much that I think he was planning to say which I look forward to hearing in Committee.
As my noble friend Lord Bethell said, we need to define the essence of what we are dealing with and what we need to get into focus. We certainly need to inject a greater sense of purpose into the legislation. Its purpose is to be different from the rest of the research landscape. There is much we can do in the legislation to make that a little clearer so that it does not duplicate the work of UKRI. There are great projects which are the subject of challenges and missions by UKRI and the research councils. We do not want to see those duplicated.
What is distinctive about ARIA? First, as the noble Viscount, Lord Stansgate, mentioned, it is letting go of the Haldane principle—it is not that politicians should be determining the objectives of ARIA, but it should not be bound and controlled by a process of peer review and evaluation. These are missions to be pursued. The project teams may well want to do this in ways that would not necessarily engage the support of their peers. This is why it carries a high risk of failure in the minds of others. In the course of our debates, we need to focus on the legislation and the minds of those who come to run ARIA.
We also need to think about what we do well and where the gaps are in our research landscape. The noble Lord, Lord Patel, referred to the Laboratory of Molecular Biology. I declare an interest—I was the MP who represented LMB. It has done a remarkable job and continues to do so. In the area of molecular biology, it has a focus. It did not always necessarily have a specific research objective in mind, but it was clear about its ability to bring together the very best people with the very best ideas to examine the issues. As a consequence, there were some fantastic discoveries —on DNA sequencing, monoclonal antibodies and X-ray crystallography of proteins. It was the recipient of 12 Nobel prizes—more than any other single research institute anywhere in the world.
We must not say that we cannot do this. The question is where and in respect of what should we do it in future? The LMB also gives us a sense of some of the ways in which ARIA could do its job, by bringing together the very best people into project teams and giving them a direct stake in the benefits—including the economic and commercial benefits—derived from their discoveries. The LMB has done this to the point where people have left the laboratory, set up businesses and then come back into LMB in order to undertake further original research with the objective of doing the same thing all over again with some new discovery.
We want to examine and make sure that ARIA as an agency can be an active investor and participant, perhaps even the originating promoter of these enterprises. I believe that this is the Government’s intention. Potentially, the best researchers in the world—in a different area from the LMB, perhaps in artificial intelligence or an information society—would come here to work with ARIA because they knew they would benefit, and we would benefit as a consequence. We really need to focus on this and make sure that this potential lies within ARIA’s remit.
When we come to examine the Bill, we need to look at it very carefully. Clause 3 is distinctive in mentioning what constitutes “particular weight”. What constitutes transformational research, although it is not called that? What do we mean by a high risk of failure? Clearly, we do not mean a 100% risk. I suspect we do not mean 99% either. The noble Lord, Lord Davies of Brixton, had it right. We have to understand the risk-reward relationship. We are looking for projects where, if the chances of failure are relatively high, the rewards for success are transparently potentially even greater. This is why we are prepared to take the risk and to go down this path.
As we think about this, I hope that we do not slavishly copy the DARPA US business model. We should bear in mind the models that have been found to be successful in this country, including LMB. We should look, for example, at where we have deficiencies—such as in engineering and IT, where there are not sufficient opportunities. We should also look at the way in which Germany has used research institutes like LMB more widely in order to give that sense of continuing focus and objectives in a number of different areas of research. I look forward to our debates on the Bill.
Lord Kakkar (CB)
My Lords, I join other noble Lords in thanking the Minister for the thoughtful way in which he introduced this Bill. I declare my own interest as chairman of the Office for Strategic Co-ordination of Health Research.
It is a pleasure to follow my noble friend Lord Patel and the noble Lord, Lord Lansley, with his very insightful observations. I echo my noble friend Lord Patel in strongly welcoming the proposition by Her Majesty’s Government to create this new agency. As we have heard, it represents a substantial opportunity to broaden the different streams of funding available to drive our broad national research and development effort.
Our nation is particularly successful at delivering research and development. There are many fine institutions. We can all draw attention to many discoveries that have had a profound impact during decades of state-directed research funding. Those research interventions have been built over time. They have been based on important principles, such as Haldane, and on the principle that Governments can define national priorities and that research effort can be directed to try to answer those priorities. It is right, therefore, that Her Majesty’s Government should decide to establish a new agency with a different and distinctive purpose.
By definition, research is attended by uncertainty. It is part of the scientific method. This is not so much a criticism as a recognition that many of the agencies and structures that we have developed, such as UKRI, the research councils and Innovate UK, are obliged to conduct their approach to making funds available for research to institutions and entities beyond the public sector in a way that is somewhat bureaucratic. There has not been the tolerance for failure. Indeed, if anything exists in our system, it is a deep dissatisfaction with a failure of research. Where projects have failed or where it has been considered that public funds have been used inappropriately, there has always been substantial criticism.
For ARIA to be different, it needs to be released from some of the bureaucratic constraints that attend other funding agencies, if it is to achieve its principal objective of being able to support proposals for research that will be truly transformational and have potentially the greatest impact. Therefore, some of them will be attended with the greatest risk of failure. I fully accept what the Minister said in his opening comments, that it would be completely wrong to create a new agency that is constrained exactly by the constraints that attend our current funding agencies.
In equal measure, however, in creating such an independent agency, predicated on the basis that failure must be accepted, the real challenge is the potential for risk. There are three important questions which I hope that the Minister will be able to answer, not necessarily in this debate, but while the Bill is in Committee
The first is to provide clarity about the relationship between ARIA and current existing agencies such as UKRI, the research councils and Innovate UK, but also more broadly in our research funding eco-systems—the charities and others which might have an interest in some of the areas of research that ARIA decides to support. I know that in the other place Her Majesty’s Government were unable to accept amendments to the Bill attending the question of a formally defined memorandum to describe these relationships, and that is acceptable. However, there needs to be absolute clarity about how these relationships will be defined, and how in practice ARIA will sit alongside these other agencies and ensure that there is not unnecessary duplication and waste in terms of its use of public funds, as we have heard, in comparison to what other agencies may be doing successfully at the moment.
The second is the question of accountability. Clearly, it is essential for any public body to have a form of accountability. The Minister spoke about this, and, indeed, in the Explanatory Notes, there is clarity about ARIA having to lay its accounts before Parliament and being subject to review by the National Audit Office. Indeed, as I understand it, the Secretary of State will have to answer for ARIA in the other place.
However, I have a concern in this regard, and it is slightly counterintuitive. Although we will all be very enthusiastic about the establishment of an agency that will tolerate failure, how confident can we be that our system will actually tolerate that failure? At some moment in time, will that failure become too much to accept? It might be that, in terms of the scientific approach—the project-led approach by those driving the agenda within ARIA—it was perfectly acceptable to take that approach. However, let us say that the broader political system, the commentators and others, will not accept it. There needs to be some protection for ARIA by way of appropriate accountability so that it can defend itself against the kinds of criticisms and attacks that might happen in the future when failure starts to occur. In that way it will not be undermined, and what is an important contribution to the research-funding landscape will not be inadvertently or too soon undermined and destroyed.
The final point is that we need to be clear about where this fundamental research, invention and discovery go in terms of the next stage. We should not, of course, replicate the model of DARPA in the United States; it has a completely different purpose. The purpose of ARIA, quite rightly, will be much more broadly defined. There needs to be some clarity about how government departments and other agencies might participate in taking advantage of the benefit of the product of ARIA to ensure that there is continued funding and support so that that translation and ultimate application is not lost.
Lord Borwick (Con)
My Lords, I welcome this Bill. I think it is a bold and exciting project. It takes pride in not being able to predict what it is that will come out of it and in truly giving the science a free hand to lead the way. As has been shown by the original ARIA—the American DARPA—really quite incredible technologies and products can be created in this sort of environment, not to mention in a very cost-effective way for the Government. As was evident in the DARPA challenges, much more money was spent by competitors investing in their individual offerings than the prize money offered by the Government to the winners. This saved the Government millions.
I have just a few comments to make. First, although I appreciate the advantages of accounting officers and responsibility being clearly laid down, the truth is that nobody knows what will come in the future. As I said a moment ago, an agency that can try things out to see if they will work is a very positive step for any R&D project. It is perfectly clear to me, however, from looking at the wording of this Bill, that this agency is more than usually dependent on the genius of the chairman and the chief executive. Because they are given such a free hand, they must be aware of their responsibility—as I am sure they will be—to achieve meaningful gains forward in R&D for UK plc.
There is a lot of money at stake in funding this programme. Taxpayers will rightly want bang for their buck, so it must not be allowed for the challenges set by ARIA to stray away from its serious scientific and technological funding roots. I am concerned that the Bill may not have futureproofed this concept securely. I somehow doubt that a chairman and a chief executive who are recruited after a successful career in the Civil Service will have the right abilities to make the most of this opportunity.
Secondly, the non-executives will be more than usually important in this agency and I therefore support what others will say, or have said, about making certain that they declare their conflicts of interests, if any; but whenever I have been a non-executive director of a business, I have learned many things. Will the non-executives be prohibited from co-investing in the bright ideas come across by ARIA? The sorts of people we want to see appointed as non-executives will be those who have successfully judged risks and are at ease with taking them. Many of these may be very wealthy individuals and they may be very much attracted to the opportunity of co-investing. Some funds that face this scenario run blind pools, where the non-executives may invest but not take any decisions to realise their investment or further invest. Others have a limit of up to, say, 15% of the investee company to be owned by the non-executives of the parent organisation.
All this would take careful thought, and I am sure that the Minister will consult with people who have run similar funds to ensure that robust structures on industry standards for this sort of safeguarding are explicitly set out in the framework for the relationship between ARIA and the department. Furthermore, although the Government chief scientist will be one of the non-executive directors—and that is wonderful—we do not yet know who the others will be. Can the Minister tell the House if he has any further information on this? How will the non-executive directors be chosen and screened? That is a point made by the noble Lord, Lord Davies.
Thirdly, Clause 2(4)(b), states that the conditions under which ARIA provides its support may include provisions under which property is to be restored. It is not clear to me as to whether that is real property, intellectual property, or both. Neither does it say what restored means, and to whom it is restored, or whether it is required to be physically restored or some other interpretation is permitted. Perhaps a government amendment to make this clear would be welcomed.
It will be important for ARIA not to duplicate projects that are perfectly well served by other agencies, just because they are fashionable. I can applaud the Earthshot Prize, but the range of subjects it covered should be enough to discourage ARIA from going for environmental matters, however important they are. Similarly, UKRI has great concentrations on various sectors, and I presume that those sectors are best covered as they are at present. This should not really restrict ARIA, because there are so many problems of a long-term nature. I would like to see prizes given out only for only scientific and physical inventions that are made in the UK. ARIA should not be the vehicle for rewarding individuals for thought or teaching, for example, however wonderful. Can the Minister give the House some clarity on this?
Finally, the Minister said that a framework will be provided for the relationship between ARIA and the department. As so often in legislation, the framework can actually be more important than anything else, but we are told that we are going to see it only after we have passed the legislation. Can we see the draft framework before the end of the passage of this Bill?
Overall, I am enthusiastic about this Bill, and look forward to the slight nips and tucks here and there that I believe are necessary to ensure that this agency has the best shot at being an effective catalyst to— hopefully—so many of the future’s brightest innovators and inventions.
Lord Rees of Ludlow (CB)
My Lords, there is surely general agreement of the worthwhileness of ARIA’s goals. What is less clear is whether the small, stand-alone administrative construct conceived in the Bill is optimal, or indeed necessary, for achieving these goals, especially given the multi-layered and complex structure for science governance that already exists.
Not long ago, we had the major reorganisation of science funding that led to UKRI, introducing a layer of administration above the established research councils, such as the MRC. We have also had Innovate UK, and this year two high-level advisory bodies have been set up to oversee all this, adding yet another layer to the hierarchy. Surely we should be cautious about establishing another entity before these changes are bedded in and prove their worth. As the Minister said, 50 times more funds are spent on existing institutions than are envisaged for ARIA. The priority should surely be to ensure the maximum efficiency and minimal bureaucratic problems in these other organisations.
Confidence and high morale drive creativity, innovation and risk-taking. This is true in blue-skies science and equally true in the often greater challenges of the development of new products or businesses. A motive for ARIA is the perception that existing institutions cannot offer this, but the best institutions still do—I am lucky to work in one. But even in these privileged environments, there are dark problems ahead. My younger colleagues seem even more preoccupied with grant cuts, proposal writing, job security and suchlike. Prospects of breakthroughs will plummet if such concerns prey unduly on the minds of even the best young researchers. Worse still, the profession will not then attract the most ambitious talent from the next generation, nor draw in foreign talents. Many of us worry that the UK’s traditional strengths are consequently in jeopardy.
However, these negative perceptions can be reversed. I will mention two specific gripes that can be addressed. The first is that bodies that allocate public funds focus on ever more detailed performance indicators to quantify the output. This has the best of intentions, but its actual consequences are often the reverse: to constrain long-term thinking and prevent even a minority from having the privilege of fully focusing on long-term problems. The second bugbear is the REF, which is not only burdensome for universities but offering perverse incentives to researchers that discourage risk-taking.
The difference in pay-off between the very best research and the merely good is, by any realistic measure, hundreds of per cent. What is crucial in giving taxpayers enhanced value for money is maximising the chance of the big breakthroughs by backing the judgment of those with the best credentials and supporting them appropriately. Research universities do this and should be cherished. They benefit the nation through direct knowledge transfer from their labs to industry and through the quality of the students they feed into all walks of life. Moreover, high-profile academics can seize on a promising idea from anywhere in the world and run with it. Let us not forget that, despite the UK’s strength, at least 90% of the best ideas come from the rest of the world.
Despite these strengths, our universities are not always the most propitious environments for projects that demand intense and sustained effort. Dedicated laboratories such as the LMB are, in some contexts, preferable. Indeed, our national strength in biomedical sciences stems from the existence of laboratories allowing full-time long-term research, which is getting ever harder in today’s universities. Moreover, UK government funding is massively supplemented by the Wellcome Trust, the cancer charities and a strong pharmaceutical industry. To ensure effective exploitation of new discoveries, research institutions must be complemented by organisations, whether in the public or private sector, that can offer adequate manufacturing capability when needed. This fortunate concatenation certainly proved its worth in the recent pandemic. Government and private laboratories are crucial in health, plant science and energy. We may need more of them, and also more innovative ways perhaps of ensuring that IP generated here is optimally exploited.
However, given this complex ecology, do we need an ARIA organisation to achieve ARIA’s aims? This does not seem clear. ARIA’s proponents think that UKRI’s bureaucratic features are chronic—that we must be fatalistic about this and offer a lucky few the chance to bypass it. Indeed, UKRI has a very broad mission and is working hard to reduce bureaucracy, but much of it is imposed by government regulations. Can the Minister tell us why there could not be within UKRI a separate fund for supporting some projects in the ARIA style via a ring-fenced part of its budget that was less constrained by Cabinet Office and Treasury controls, which slow things up and constrain experimentation in funding allocation mechanisms? Could the Industrial Strategy Challenge Fund, a pan-UKRI programme, also achieve some of ARIA’s goals if bureaucratic constraints on it were loosened?
Finally, retaining our scientific standing is crucial. The UK will decline economically unless it can ensure that some of the key creative ideas of the 21st century germinate here and, even more, are exploited here. Unless we get smarter, we will get poorer.
Baroness Neville-Rolfe (Con)
My Lords, it is a great honour to follow the noble Lord, Lord Rees of Ludlow, one of our most distinguished scientists. I agree with him about the modern excess of performance indicators and the valuable contribution the private sector can make. I am very grateful to my noble friend the Minister for his clear exposition of the purpose of the Bill, and I declare my interest as a director of Health Data Research UK—which is largely funded by the Medical Research Council—and of Capita plc.
I am not a scientist. Indeed, perhaps because I went to an all-girls school in less progressive times, I have never had a physics or chemistry lesson in my life. I have, however, always been a huge proponent of scientific innovation and invention and everything that encourages them, from academic excellence to fostering a culture of enterprise. As a former Minister for Intellectual Property, I also regard a sound framework for the protection of IP as a vital necessity.
The context of these proposals is important. I congratulate the Chancellor on an assured Budget performance in very difficult circumstances. There was a cheering ending for those like me—watching from the Gallery—who believe that high taxes hurt the economy, and enterprise and innovation. I would single out his welcome extension of R&D tax credits to cloud computing and data costs, the shift to focusing tax relief on domestic rather than overseas research, and the increase in the UK R&D budget to £22 billion by 2026-27, which is 2.4% of GDP and a cash increase of 50% by the end of the Parliament.
I did, however, find one moment chilling: the growth forecast of 6% in 2022, 2.1% in 2023 and a miserable 1.3% in 2024. This is, of course, not the Chancellor’s fault. It is an OBR forecast, and we need to do all we can to prove it wrong. I want to see growth overshooting substantially. That brings us to innovation and its companion, productivity. We need major change to bring about a new dynamism in our economy so that growth takes off and is sustained. We can build on the success of the Covid vaccine and the legacy of our multiple Nobel Prize winners.
The proposal for ARIA is the most radical I have seen in my time in this House. It sets aside all the most cherished Whitehall controls which envelop all other agencies. It would create a significant, truly blue-sky research base not subject to normal constraints other than, of course, the financial limit. My view—which I think is widely shared if the discussion in another place is to be believed—is that it is both welcome and timely, given the country’s needs.
Given the greater freedom that the new agency will have, the choice of the right people to lead it will be vital, as my noble friend Lord Borwick said. That poses two questions: who will these be, and who will decide on them? I will be interested to hear from the Minister how that vital but difficult task will be managed.
On one illustrative point, we should certainly not specify how the new body should go about its work, as some parliamentarians have already tried to do. That would be absurd. Neither this House nor the other one, nor indeed Her Majesty’s Government, is likely to be the best authority on the development of science over the coming years.
Perhaps not for the first time, I am in a different place from my noble friend Lord Bethell. Societal challenges and fashions move on, as we saw with the pandemic itself. I believe we need independent thinking and that the agency should decide its own programme.
Normally in our debates I press at this point for the provision of a cost-benefit analysis of the proposal. Today I will not do so—I cannot see how such an analysis could be done before the new body is established—but we will need checks and reporting by the agency. I suggest that we need annual reports, while recognising that judgments of success will not be possible for several years and that patience and tolerance of failure are needed, as the Minister has said. However, eventually it will be possible to assess both successes and missteps, and we should not hesitate to do that. As one example, we should have a requirement in the Bill for the agency to make a full assessment of its work ahead of the 10-year dissolution power in Clause 8 so that we can determine objectively whether the experiment should be continued.
In all this, I am influenced by what I have learned of success elsewhere—for example, about the Manhattan Project. I was lucky enough to visit New Mexico before Covid and to learn from its museums, and those who have spent careers in the nuclear industry, of the importance of the people you put in charge of such a project, and of giving them responsibility and space. Those are the two concerns that I have already alluded to. In New Mexico the team was literally hundreds of miles away from any stakeholders.
As some of you will know from my Zoom backdrop, I am an enthusiastic student of the 18th-century Staffordshire potters. Stoke was the Silicon Valley of its day and mushroomed in a way not unlike the pop music business 200 years later. The entrepreneurs pioneered brilliant new chemical techniques and competed in a vibrant and growing consumer market right around the globe. Focus, competition and the stealing of each other’s ideas and master craftsmen were everyday occurrences.
Look at the rise of Japanese, Korean and Taiwanese manufacturing in the 20th century. They copied a lot but that was a skill that drove growth, and there developed in Japan a vital intellectual attitude—“lean thinking”, pioneered by Toyota—which has been an inspiration to successful businesses right round the world. Unfortunately, it has yet to be fully established in the public service or the NHS—but I threaten to digress.
This is a worthwhile initiative. I support the Bill’s Second Reading and look forward to its progress through the House.
Baroness Noakes (Con)
My Lords, it is always a pleasure to follow my noble friend Lady Neville-Rolfe. Like her, I support the Bill. My interest in research and development is not in the science per se but in its link to productivity and growth. I see it as a driver of economic gains and wealth creation and, as my noble friend said, that is important in the context of the economic situation we are facing.
Noble Lords will know that I am not a big-state person. My instincts are to keep government and the public sector well out of the way of the business of wealth creation. However, I back the Bill because I know we cannot rely on private sector enterprise or the research programmes of universities or elsewhere to optimise outcomes for UK plc. Of course there are some fabulous examples of successful research leading to genuinely world-beating and commercially successful products and services, but I do not believe that the UK has maximised the potential in and for our nation. So I am prepared to try another way. We should be thankful that Dominic Cummings was determined to create a UK version of the US ARPA. I know it is not fashionable to say that Dominic Cummings did anything of value but I believe he deserves credit for driving this idea forward.
I see ARIA as a once-in-a-generation opportunity to break out of the old way of doing things. As has been said, this means not only accepting failure but welcoming it. Traditional ways of thinking about how public money should be spent do not accommodate failure, and successful careers in public sector organisations rarely have failure in their foundations. ARIA has to be able to take much bigger risks than any normal public sector body would dare to take.
A crucial part of this is to ensure that the new agency is headed by outstanding people with vision and intellectual boldness. These people do not exist in large numbers. As other noble Lords have referred to, I know that the Government have been pursuing the key appointments of the first chief executive and first chairman, but I understand that the recruitment process for the chairman has been deliberately paused. I hope that my noble friend the Minister, when he winds up, will say something about where the Government have got to with these appointments and the timescale to which they are now working.
The composition of the whole board will also be important if ARIA is to operate outside the risk-averse culture of the public sector. I hope that, when the non-executives are appointed, the Government will focus on genuine diversity rather than ticking Equality Act boxes. Genuine diversity means people with diverse mindsets and thinking patterns, and it means people who reject groupthink. The worst possible thing would be a board that squashed risk-taking and innovation. To that end, I believe that the Government should not appoint any civil servants to the board—with the possible exception of the Chief Scientific Adviser, who is mandated under the Bill. I propose to explore that further in Committee.
Another crucial element is that we should not tie the organisation up in bureaucracy. For that reason, I fully support the exemption from the Freedom of Information Act. If noble Lords wish to pursue this in Committee, as I expect they will, I hope they will remember that Tony Blair, the architect of the freedom of information legislation, said that it was
“utterly undermining of sensible government”.
If it undermines sensible government, what would it do to a groundbreaking organisation such as ARIA? It does not bear thinking about.
I also reject the notion that the Government should be setting an overarching strategy for ARIA. What ARIA focuses on should be the product of the big brains that I hope the Government will be appointing to the organisation. It should not be forced into following the political thinking of the day. The Government have plenty of other opportunities to promote things on their own agenda. We have to set ARIA free in this important respect.
I shall want to explore in Committee whether ARIA should have the power to borrow money. An unconstrained borrowing power, as found in Schedule 1, is dangerous. I support the initial commitment of £800 million because it is limited. We can draw a circle around it and, at some stage—not too early—we can see whether the nation is getting value for money. A power to borrow money could allow it to increase its scale very significantly and, under the well-established doctrine of standing behind, that could leave taxpayers picking up a much bigger bill than £800 million. There is a big difference between placing an £800 million bet, which might produce nothing in return, and underwriting someone’s credit card.
I look forward to the Bill becoming law and to starting a new chapter in the UK’s exploitation of its talent and resources.
Lord Broers (CB)
My Lords, I agree with this proposal. We need an advanced project agency similar to ARPA. However, in setting up this agency, it is important that we understand what makes these agencies successful, and I think we are on the way.
To declare my interests, I worked for IBM in the USA for about 30 years, in its research and development laboratories and as a member of its corporate technical committee and science advisory committee. Additionally, and related to the US agencies, this year I chaired a sub-committee of the Draper prize committee of the US National Academy of Engineering. The Draper prize is the academy’s top prize. It has been awarded to those responsible for ARPANET, GPS and several other outstanding achievements of ARPA and DARPA over the years. The Queen Elizabeth prize for engineering has also been awarded to those responsible for the internet and GPS. I also declare that I drew together and chaired the first committee of judges for that prize.
Therefore, I have spent a lot of time studying how these remarkable accomplishments were realised and the characteristics of those responsible for their successes. As has been extensively discussed over the last year, ARPA and DARPA have contributed significantly to the dominance of the US in many high-technology industries, but of course they have not done these things on their own. They have drawn on industrial companies, other government agencies and universities, weaving together diverse capabilities to provide solutions to perceived needs. They did not invent these solutions, although many inventions emerged in developing them. Their genius was in pulling together the ingredients from the vast worldwide reservoir of science and technology. Their project leaders were noted for their breadth of expertise. They are a select group of highly talented individuals with exceptionally broad knowledge of science and engineering, and of the interfaces between the scientific disciplines—people who, for example, can tell whether a problem encountered in a highly complex computer-controlled system is a software or a hardware problem, or a matter of the science.
These exceptional people are paid a lot of money by UK standards. They are also obsessively focused on attaining the goals of the system that they are building and are not easily tempted to explore the new discoveries that invariably emerge when one builds new equipment. That is the regime of science, where the aim is to explore and extend human understanding. It is not the stuff of a project agency. In the USA, it is handled by the National Science Foundation. I have asked my friends in the US whether it would be a good idea to put their ARPA inside the National Science Foundation. They just laughed. To quote Dr Highnam, the ARPA project manager and office director who spoke to the Commons Select Committee on Science and Technology:
“DARPA is not a blue-sky research place; we do not do that. Even with our fundamental research we know where it will be applied if we can make the science possible, all the way through to the higher technology systems programmes.”
They are not LMBs, which are temples or palaces of scientific genius, not project agencies. ARIA must select leaders who think like project agency managers and have this vast reservoir of knowledge. It is about project management and combining the knowledge and expertise that already exist, more than it is about invention, despite the name that has been given to this agency. I crossed out “inappropriate” but the noble Viscount, Lord Stansgate, sounded as though he would like to put it back in.
Successful high-technology projects need, as far as possible, to be free from time and money constraints. Therefore, the US agencies have been granted a lot of independence and freedom from continuous assessment —something that has rarely, if ever, been granted by the Treasury here. It is reassuring to see that ARIA is to have a minimum life of 10 years. This does not mean that it must be isolated. It will need to have close relations with Innovate UK, drawing from it the raw material of technological advancement and knowledge of where the skills to effectively apply what innovators have already extracted from the science reside. It must also have intimate knowledge of what is happening in industrial R&D laboratories and in universities. It will not be easy to be clear about the interface with Innovate UK, because Innovate UK was itself given many of the aims that have now also been given to ARIA.
The major advantage of forming this new agency is that it will not have to compete directly with the research councils for its funding, nor live within the regulatory structure of UKRI. Fortunately, there have been some very helpful recent changes in the management of Innovate UK, especially the appointment of Indro Mukerjee as its CEO, who understands project management. These changes should enable Innovate UK to play an effective role, working with ARIA, finally to provide competitive technology transfer in the UK.
However, I am still worried that we are at risk and will not learn from the past. After all, if Innovate UK had achieved what it was meant to—to drive technology transfer—we would not need ARIA. I was amazed to read that it was proposed by some that ARIA should be placed within UKRI, ensuring that history would repeat itself and ARIA would also fail by having to compete for funding using metrics designed for science rather than technology transfer. That is not to mention the regulatory structure of UKRI, which, while excellent for pure science, has not been optimum for Innovate UK.
Finally, how will the catapults, which were also meant to solve our technology transfer problem, fit into this confused cluster of councils and agencies? If there was more time—which there clearly is not—I would ask how it all fits with the grand challenges and the industrial strategy, but others have done that.
Lord Patten (Con)
My Lords, the general tone of this debate—one of overall welcome and support for the Bill, in reaction to what my noble friend said in his excellent introduction—was set, if I may say so, by the noble Viscount, Lord Stansgate. I listened most carefully to what he had to say in his entertaining, as well as perceptive, words. I enjoyed it very much, as I enjoyed what his father said a long time back when I was a new Tory MP on the green Benches in the other place, making my maiden speech back in 1979. When I sat down, the then right honourable Tony Benn MP stood up as the next speaker and said all those nice things that you say to a new boy or girl. Very welcome they were, and I thought, “That was very kind”, sat down and thought no more about it until, on the way to the station to go down to the constituency for the weekend, I got a slightly panicky message from my constituency party saying that there was trouble in the party about my maiden speech. I had been a Member of Parliament for only a moment or two and had no idea what I could have said that would have caused any trouble at all until I got off the platform at Oxford station and saw the billboards for the Oxford Times saying, “New Tory Member Makes Maiden Speech Praised by Tony Benn”.
That said, I have four quick points to make. First, I strongly support the Bill, all the more so because it is a manifesto commitment that has been carefully crafted and kept, which does not happen with all government legislation. Long may it become a habit, I say to my noble friend, that we keep our manifesto commitments.
My second remark is that we are setting up for the UK a novel blue-skies body. Everyone else has said this; they are quite right and I will not labour the point. It is right, however, that throughout, our national security, about which we all feel strongly, is protected. Hence the need, contained in the Bill, for ARIA to accept directions from the Secretary of State. I know that my noble friend the Minister said, in his introductory remarks to which I listened carefully and will hold him to, that that is where it would all stop, but the powers must stop sharp there. Ministers must never be allowed to seek to nudge, let alone give direction, to promote other parts of their political agenda. To make up a random example, they must not help the levelling-up agenda by putting something in some part of the country, totally randomly chosen, which might need a leg up.
My general message is “Hands off”, and I look forward to reaffirmation by my noble friend that that will indeed happen. “Hands off” was what got DARPA off to such a cracking start back in 1958. The US is very lucky to have been a leader here, and to have spawned from DARPA a good number of similarly great private sector companies, such as IBM and others.
I have known some of these pretty well, and there has been a bit of copycatting to a very successful degree. Take Boeing, the aerospace company: it has an outfit called Phantom Works, which no one dares, or is allowed, to get near. Or there is Lockheed Martin’s endearingly—indeed trademark—named Skunk Works, which is more difficult to get into than Fort Knox. I must declare my interest as, for some 12 years, I was an adviser and a non-executive director for Lockheed Martin Corporation and my shareholding continues to be declared because it is current in the Register of Members’ Interests. So I know this world a little bit, and I just wish that more UK companies had set up such DARPA-like bodies years ago.
Thirdly, the quality and imagination of the leadership of this new body will be absolutely critical. The noble Lord, Lord Davies of Brixton, was thinking about who might be served up to the Secretary of State and what might be in the Secretary of State’s mind. The noble Lord, Lord Patel, said in his admirable remarks that one of the most important things of all is getting the leadership right. We do not want to have a head hunt as they will be queuing up to earn an honest pound by producing lists of the same old—with respect—FRSs and Nobel Prize winners and the great and the good of the scientific world. We need them to find someone daring, free thinking and original, but of course, responsible, committed and scientifically knowledgeable.
Here I have no interest at all; I have never met, communicated or worked with her, but I think the now—happily—Dame Kate Bingham has just those qualities that some man or woman could well replicate. Some noble Lords will remember her transformation from zero to hero. When she was first given the job by HMG she was excoriated by the worst sort of commentariat and media people, and suddenly, six months later, she was a national hero. So I would like my noble friend the Minister to undertake to pass on my remarks to the Secretary of State in these terms: appoint sensible risk-takers, not referees.
Lastly, I strongly support the determination of the Government to keep the endless FOI regime from getting further and further into it, opening the door of a small, highly staffed and not hugely financially endowed body with the specific mission to risk failure to those tendentious inquiries and time-wasting journalistic fishing expeditions to get a story in which they can say that something has failed. We can all see that coming.
I greatly hope that the Bill is a success and I look forward to it passing. Who is to say, the work of ARIA might even help to solve one of the great mysteries of the day: why the UK continues to have such low levels of productivity.
Lord Ravensdale (CB)
My Lords, I very much welcome the Bill, and it comes at an extraordinary time for scientific progress in the UK and around the world. I first declare my interests as an engineer and project director working for Atkins, and as a director of Peers for the Planet.
As we look to accelerate R&D spend in the UK, it is right that the Government look at the means of delivering that spend, learning from the most successful similar institutions around the world, notably DARPA, from which ARIA takes its inspiration, as many noble Lords have said. ARIA certainly takes one lesson of DARPA to heart: getting bureaucracy out of the way and letting a high-calibre team deliver high-risk, high-reward research. But there are two other lessons of DARPA that are important: first, a clear purpose for the organisation—in DARPA’s case, national security; and, secondly, a client to take on and translate the innovations produced by that organisation—in DARPA’s case, the DoD. This perhaps becomes more important for ARIA. The £800 million is a generous amount of funding, but relatively small in the overall R&D landscape. To maximise the impact of this funding, the Government must carefully consider what the organisation is driving at, as the noble Lords, Lord Patel and Lord Bethell, and others, have said.
The question then becomes: what should the purpose of ARIA be? It should be aligned with the strategic priorities of the nation, and foremost among these are the UK’s net-zero targets and environmental goals, as the noble Lord, Lord Davies, said at the end of his speech. Giving ARIA a sustainable purpose will still allow a flexible approach to research, while at the same time aligning with the innovation strategy, which highlights the need to direct innovation towards
“our top priority societal missions … like the climate and biodiversity crises”.
The recently published UK Net Zero Research and Innovation Framework does not mention ARIA, but stresses the importance of a whole-system approach to address the challenge of net zero. I would be grateful if the Minister would confirm how, without mention of our net-zero or environmental goals, ARIA will align with the Government’s broader objectives of net zero and, in addition, the mission suggested by the new Council for Science and Technology.
I have recently spoken with Professor Richard Jones, who has been involved in much of the thinking on the formation of ARIA, and a number of other academics who agreed with alignments with net zero and environmental goals being a suitable focus for the organisation. This represents an excellent opportunity for the Government to maximise the benefit from the £800 million funding; to demonstrate to international partners post-COP a new model for climate and net-zero R&D; and to develop the new technologies which we will need to help the UK and the rest of the world achieve our targets.
A final point is about how this organisation fits into the levelling-up agenda. The Government must carefully consider the location of the headquarters of ARIA. Another lesson learned from DARPA was that its headquarters location was fortuitously away from some of the main research centres of the United States, thus avoiding inevitable capture of research funding from institutions in a particular area and encouraging take-up of ideas from all parts of the country. I would be grateful if the Minister can add something in his summing up on how the Government intend to select a location for ARIA HQ.
As we all know, DARPA was formed in response to the panic following the launch of Sputnik in 1957. I believe that the response to the climate and nature crises should mirror the response so long ago to a very different threat in rethinking our innovation systems, and I hope that ARIA has a key part to play in that response. I look forward to putting forward amendments in these areas as we move forward to Committee.
Lord Fox (LD)
My Lords, this debate has benefited from all the speakers knowing what they are talking about—I think this is the point at which that ends. It is a difficult debate to seek to summate, but before I try, I shall make a couple of general points. The first is about funding. As my noble friend Lord Clement-Jones said, the Government have pushed their science spending back by two years and down by a couple of billion. That puts us in the position of spending 1.1% of GDP of government money. The Government’s target is 2.4%, so how will the Government raise the rest of that money? It just got harder: analysis by the Campaign for Science and Engineering indicates that, because the Government have pushed that deadline two years further into the future, it will result in a loss of around £11 billion of private R&D funding, so some words on that would be appreciated.
Secondly, the noble Lord, Lord Bethell, spoke about orientating the future ARIA around clear societal challenges, and a number of your Lordships set out lists, not least the previous speaker. I join him in suggesting that this country’s response to the biggest challenge that we face—climate change—is a real rallying point that this agency could pull around.
I shall now move to the specifics of the Bill. The noble Lord, Lord Davies, was a little disparaging about the Minister’s enthusiasm in delivering his speech. I beg to differ. I have sat through many speeches of the noble Lord, Lord Callanan, and I thought this one showed traces of bravura to match the ARIA that he is proposing.
We have heard from almost every speaker that there are many questions about what this agency is for: how decisions will be made, how the organisation will go about delivering funding and how it will do its job, never mind what its job actually is. When the Minister kindly met us, he said that most of these questions would be answered when the CEO and the chair were appointed and the framework agreement was written—but the problem is that all of these appear after the Bill reaches Royal Assent.
This is a crucial point. The framework document is instrumental in how this agency will interact with existing funding organisations. Perhaps it may even set out the risk and reward balance; a number of noble Lords brought up this important point. It should indicate how ARIA operates with the Government and the relationships it will create with its clients. It will be the essential operational blueprint between the Government and the agency but, of course, we will not know all of this. We are not allowed to know all of this. In other words, the Bill is an £800 million blank cheque. We effectively know nothing about it. There are some broad, impressionistic brush strokes but, like many such paintings, those are open to interpretation. One of the reasons we are all able to welcome this agency is because none of us know what it is.
The Government say that ARIA will diversify UK R&D funding streams by having the autonomy to choose and fund high-risk programmes across different research areas—which sounds quite good—and that the creation of ARIA does not impact the UK Research and Innovation’s system-wide responsibilities for R&D. This is the big elephant in the room, because however you look at it, the setting up and positioning of ARIA is an implicit, if not explicit, criticism of UKRI. For example, there have been a number of comments about the level of bureaucracy within UKRI. I would remind your Lordships that UKRI is only three years old and a Conservative Party invention. The research bureaucracy we are talking about is the creation of the Benches opposite. When it was being established, there was a lot of questioning about whether Innovate UK should be incorporated within UKRI; I was one of the people who questioned this. We were assured at the time that UKRI would have no problems funding and managing such diverse streams of research and post-research activity.
So, there are issues, but we need to be careful. The way in which ARIA was invented and set out is, of course, to deliver a different sort of agency, but it was also a deliberate attempt to create an anti-UKRI. It is there to counterpoint the issues that were perceived within UKRI, and in our enthusiasm to embrace the unknown and the new we have to be very careful not to throw out the great things that are being delivered by UK science and by the funding that is going through.
I am very interested by today’s announcement that the Government have decided to have a review of UKRI taken through by BEIS. It would be good if the Minister could tell us a little bit more about the objectives of that review. Those who will carry it out could do no better than to heed the words of the noble Lords, Lord Rees and Lord Broers, who had some very wise things to say.
My noble friend Lord Clement-Jones described the string of publications and activities addressing the whole research, development and technology sector. Like me, he can discern no guiding light, no golden thread and no actual delivery plan in many cases. The day before recess, one more of these documents landed on our metaphorical doormats: the UK Innovation Strategy, which has yet to be discussed in your Lordships’ House. It is a very long and detailed document. While neglecting to include what may be called a solid plan, it is very strong on analysis. Within that analysis is a quite powerful description of the need to move ideas and inventions more effectively up the innovation pipeline and into the market.
This analysis of the real challenge facing the UK, which I assume to be the Government’s settled view, chimes with things we have heard today and for many years about the UK’s shortcomings. That goes something like: “We are good at inventing things but poor at turning those inventions into thriving businesses that deliver future prosperity.” Yet one of the few things we do know about ARIA is that the “I” stands for invention, the very thing that we think is a national strength. Unlike the noble Lord, Lord Patel, who likes the word, a number of other Peers do not—my noble friend Lord Clement-Jones and the noble Lords, Lord Bethell and Lord Broers, are among them. I question whether it points the research organisation in the wrong direction. I know that it was the subject of an unsuccessful amendment in the Commons, and the Minister will shrug and say, “What’s in a name?” He will pledge that the organisation could operate throughout the technology readiness continuum. It could, but will it? If there was a mission statement, a purpose, and goals and measures, to some extent we would have a better idea, but what we actually have is a name that includes the word “invention”.
Along with the name, the budget is the other thing we know, but that is not what it seems either, because £300 million of the promised £800 million falls outside this spending review period and it falls in the next Parliament, over which this Government can claim no dominion. So, in reality, the budget is for a £500 million commitment for three years, yet the Bill emphasises the need for a long-term process and sets the 10-year minimum that we have heard about which the Secretary of State currently can kill using a statutory instrument. As one of your Lordships stated, the DPRRC is uncomfortable with this, and I am sure we shall discuss it in Committee.
Of course, there is more than one way to kill a research organisation. The Secretary of State of the day has the power to starve ARIA of funds. To create a long-term future, it requires multi-Parliament funding, and the best way to create long-term commitment to ARIA is to gain consensus across the political spectrum. If we all bought into this idea, its future would be much more easily assured. The issue around failure, which I think the noble Lord, Lord Kakkar, was wise to suggest, would also be easier to manage if there was a widespread political consensus.
But far from using this process to bring us into a big tent, the Government are erecting a “No entry” sign. Of course, I refer to the exempting of ARIA from the freedom of information obligations. That is wrong. We think that at least £800 million of public funds will be spent, and there needs to be some accountability. As my noble friend pointed out, DARPA submits itself to the US equivalent of FoI and it seems to have nothing to fear. Of course, in this country, the Information Commissioner’s Office is clear in its opposition. If the Minister wanted to engender mistrust and to sow seeds of suspicion about ARIA, I suggest this is one way he could go about doing it.
To enjoy a long-term future, ARIA needs the whole political spectrum to support it, but how can we support something when we do not know what it is and how it is going to do what it does? Why should we support something when the people proposing it seem determined to hide from us what it is actually doing?
This legislation could have been a chance to gain that necessary consensus, a chance for the Government to set out their stall and explain the role of ARIA, but the problem is that the Government do not know what ARIA is for. They have not made up their mind; they are waiting for someone else—the chief executive and the chair—to tell them what it is for. This was a chance to help put some of those pieces together.
I had the same word written down as the noble Viscount, Lord Stansgate: ARIA is an idea—an idea waiting for someone to decide what it is for. All the decisions taken to establish its role will happen after the debate on this Bill is finished. I would describe that as unacceptable; I look forward to Committee.
Baroness Chapman of Darlington (Lab)
My Lords, it is a pleasure to follow the noble Lord, Lord Fox, and encouraging that there is broad support for this initiative, albeit with some concerns raised by noble Lords on all sides of the Chamber.
As the noble Viscount, Lord Stansgate, said, in his informative and well-informed speech, ARIA needs a licence to fail. I need look no further than some relatives of mine to learn the lesson that repeated failure is often a necessary part of the process. I am distantly related to Orville and Wilbur Wright. They would not have succeeded without years of crushing failure. These self-taught engineers took years and countless attempts to get anywhere close to powered flight, but get there they did. At times, they thought it would never happen, and yet here we are, in 2021, discussing whether there is now too much air travel.
The Wright brothers were, of course, American, but the UK is also a nation with a proud scientific tradition. Alexander Fleming, Dorothy Crowfoot Hodgkin, Francis Crick and Tim Berners-Lee are just some of the names we can look to for inspiration. For a nation with such a proud tradition as ours, it has been disappointing that, for the past decade, the Government have neglected investment in education and our future scientists. Also missing has been sufficient long-term, high-ambition research and development, so it could be that this Bill marks a turning point.
These Benches support the creation of the Advanced Research and Invention Agency, and for that reason we do not intend to oppose the Bill. We will, however, seek to amend it because, in its present form, we do not believe that it properly prepares the agency to succeed in the way that we all want it to do. It is disappointing that the Bill does not offer direction, purpose or mission—as we have been calling it today—for the agency, despite the expectation that it would do so. Various schedules and accompanying framework documents have been referred to but have not yet been made available to noble Lords to assist us in our consideration of the Bill. Without any real accountability or defined strategy, there are obvious concerns that ARIA could end up pursuing vanity or pet projects, rather than the public interest.
We want the agency to work for and invest in all regions and nations, to unlock potential across the UK. We view this somewhat differently from the noble Lord, Lord Patten. Science and innovation have enormous capacity to help address regional inequality and bring opportunities to towns and cities across the four nations of the UK. After all, investment in research means investment in jobs. This will happen if ARIA is given a duty to make it happen. We make no apologies for asking the Government to explain how every region benefits from the £800 million spend, because, as things stand, they are leaving too much of this to chance.
On climate, we meet today as COP takes place in Glasgow, as the noble Lord, Lord Ravensdale, said. ARIA presents an opportunity to enable scientists to do more to find solutions to the threat of climate change. The agency must contribute to action on climate and help in the mission to net zero. That is why the Opposition Front Bench in the other place called for the environmental emergency to be the driving mission of ARIA’s first decade. At that stage, the Government did not want to make climate the priority—and did not want to make anything else the priority either. The danger is that, if we do not prioritise, everything becomes important and less is achieved.
Many noble Lords have made the point that letting a thousand flowers bloom is a lovely idea but if we want to make impact we need to make choices. Labour believes that the prioritisation of climate research is essential. We will continue to put this case to the Government, who may be more receptive to the idea, given the benefits of investment in technology they will have seen at COP. Only through well-defined ambitions such as these can the agency fulfil its potential.
On the issue of governance, as we have heard, ARIA has, in principle, cross-party support, but to stand the test of time the agency does not need a clause in a Bill guaranteeing its survival—as it currently has—as my noble friend Lord Davies explained. I refer noble Lords to the Fixed-term Parliaments Act 2011 as evidence of how to get around attempts of predecessor Governments to bind the hands of their successors. As the noble Lord, Lord Patel, said, the key to ARIA’s survival is that it must act, and be seen to act, in a way that is solely for the benefit of scientific discovery—not following the passions of the chief executive, not benefitting the business associates of any of the board, and with a clear idea of what success looks like, especially given that ultimate success may take years to realise.
Helpfully, in July 2020 the NAO published a paper for the Science and Technology Committee designed to assist the Government in establishing what was then known as the Advanced Research Projects Agency. The report looked carefully at how to balance the independence of what is now ARIA with the assurance that is needed for it to be secure politically. Without this assurance, ARIA will always be vulnerable to attack on the basis of value for money, cronyism or whatever else. I invite noble Lords to imagine the pressure upon Ministers to intervene should it emerge that grants had been given to a company in which a board member, say, or a member of their family, has an interest. We must ensure, therefore, that the public have absolute confidence, not that every venture will result in a scientific breakthrough but that decisions are made in the interests of science alone. It is in ARIA’s own interests to get this right.
The NAO report refers to what it calls the six principles of effective oversight of new bodies that it would like to see ARIA adopt. These are: clarity of purpose; clear alignment of objectives between departmental plans and the new body; a balanced approach to financial risk; a proportionate and transparent approach to oversight; streamlined processes that avoid overlap with other bodies, which was a point raised by the noble Lord, Lord Rees; and taking opportunities to provide greater value by involving the body in policy development. So far, the information available from the Government is insufficient to enable us to assess whether ARIA will meet any of these principles; indeed, some of it has made clear that it will not meet some of these principles. For instance, it has to stop large sums of money being spent on operating costs as opposed to research. What is to prevent ARIA spending large sums of money on projects that benefit close friends or associates?
When I raised this concern with the Minister at the meeting he helpfully organised for us last week, I was advised by officials that, in essence, I did not need to worry about these issues, as Schedule 3 to the Bill would answer my concerns. Following the briefing, I read Schedule 3 and, from my reading, it seems that paragraph 11 amends the definition of “contracting authority” in the Public Contracts Regulations 2015 to exclude ARIA. This means that the obligations in these regulations that apply to a “contracting authority” will not apply to ARIA. It will not be subject to FOI, as we have heard, and it will not be subject to public contracts regulations. This is an issue that we need to return to as the Bill proceeds.
What about ethical issues? What about animal experimentation, publication obligations, intellectual property and conflicts of interest? We will be asking the Government to come up with answers to these questions too.
Often, failure is all part of the long process of discovery. As the Wright brothers show us, it is perseverance, not a quick win, that changes the world. Inventors and scientists need to be allowed to fail, but ARIA does not need to fail. We will challenge the Government on the Bill, not because we want it to fail but because we want it to succeed.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
I thank all noble Lords who contributed for their engaging and, I thought, in general, very constructive contributions to the debate today. Many noble Lords made excellent points, and I will attempt to answer as many of their questions as possible.
Today’s debate, on a tripartite basis, demonstrates a shared passion to foster the UK’s world-class research base. Ensuring that the UK is the best place in the world for scientists, researchers and entrepreneurs to live and work is at the heart of the R&D road map. Despite the small criticisms raised by the Opposition Front Bench, there was generally commitment from all three main parties and from the Cross Benches to those objectives. It is central to the Government’s plan to build back better, and an integral commitment which last week’s spending review and Budget showed.
It is thanks to our dynamic research landscape that we have responded so robustly to the Covid pandemic, as my noble friend Lord Bethell so helpfully reminded us. The challenges that we have faced show just how important it is that we always remain on the front foot of research and development. And, as set out in the UK Innovation Strategy this summer, this can only be achieved through a rich and diverse research and innovation ecosystem.
I now turn to the specific points raised by noble Lords in some of their very good speeches. My noble friend Lord Bethell, and the noble Lord, Lord Ravensdale, asked good questions about why the Government will not be setting a research focus for ARIA’s activities. At her appearance during this Bill’s Committee stage in the other place, the chief executive officer of UKRI, Professor Dame Ottoline Leyser, spoke about how
“the priorities that the Government and Ministers set to solve particular challenges for the nation … fall very much within the UKRI remit”.—[Official Report, Commons, Advanced Research and Invention Agency Bill, 14/4/21; col. 8]
The Government’s innovation strategy also set out our commitment to establish a new missions programme to tackle some of the most pressing challenges confronting the UK in the coming years. These will be decided by the National Science and Technology Council, chaired by the Prime Minister, in due course. Through these new mechanisms, this Government are taking a revised, strategic approach to assessing and funding our national scientific priorities. It would clearly be inappropriate to create another new body to do essentially the same thing. To reach new, brilliant people and ideas, we must diversify our ways of funding research, and I welcome the support of my noble friend Lady Neville-Rolfe on this point. Clause 2 sets out how ARIA could achieve this, offering a broad range of support to R&D and—in response to my noble friend Lord Borwick—we do not expect it to offer prizes as understood in a common sense. What “prizes” refers to in this context is better termed as research competition, where multiple teams of scientists attempt to solve essentially the same problem.
The noble Lords, Lord Patel and Lord Davies of Brixton, asked about ARIA’s scope and objective. The noble Lords, Lord Clement-Jones and Lord Ravensdale, also asked about the technologies which ARIA would fund. The Bill sets out ARIA’s functions, and in the policy statement we have also set out its design principles. But to uphold the autonomy which is at the heart of this new agency, only ARIA’s leadership itself can be responsible for specifically setting out its strategy and its funding priorities. It is not a blank cheque, as the noble Lord, Lord Fox, has suggested.
The noble Lord, Lord Rees of Ludlow, in his contribution asked whether what we are trying to achieve through ARIA could be delivered through UKRI. I reassure the noble Lord that, in designing ARIA, we carefully considered all delivery options to optimise its chances of success. The noble Lords, Lord Clement-Jones, Lord Kakkar and Lord Broers, also asked about how we make sure that ARIA will work hand in hand with UKRI and the wider research landscape. Of course, while we are diversifying our system, it will only work if it is cohesive. It is not always necessary to legislate for these sorts of relationships. Communication, openness and trust are things which ARIA’s leaders will need to have not just with UKRI but with other stakeholders across the entire ecosystem. We have been looking for exactly these qualities in our recruitment of ARIA’s CEO. I pay tribute to the creation of UKRI and the bringing together of the research councils and Innovate UK under one umbrella, a point that was noted by the noble Viscount, Lord Stansgate. His was an excellent contribution, and I hope we can look forward to further from him on this subject.
Viscount Stansgate (Lab)
My Lords, I thank the Minister, and would like to invite him and the Government Whips to approach Hansard and ask them to publish in italics the half of my speech which had to be cut.
Lord Callanan (Con)
I am sure it was equally as good as the first half of his speech and that the Whip has taken careful note. It is a principle of our Committees that we try not to have the same speeches we got at Second Reading made again—a point most Members tend to ignore—so the noble Lord is well positioned to make a new contribution in Committee. Most other Members could perhaps take note of the excellent example that he will be setting them.
I also recognise the sentiment of the noble Lord, Lord Rees of Ludlow, that the setting up of UKRI was not that long ago in the grand scheme of things. With an £8 billion budget, UKRI has system-wide responsibilities and with this comes a certain operating model. I refer the noble Lord, Lord Fox, to Professor Leyser’s other comments, where she said at her select committee appearance that UKRI’s responsibility to make the whole system work sometimes makes it harder to do the wild experimental things.
In contrast, as enabled by Clause 3 of the Bill, which has been the focus of a number of contributions from noble Lords, it is ARIA’s mandate to do the experimental things and push the frontiers of science. To achieve this, it must have a streamlined structure and minimal bureaucracy. In response to the noble Lord, Lord Rees, this goes beyond what is possible or desirable under the legislative framework and governance arrangements in place for UKRI as the system’s core funding agency.
In reply to the question put by the noble Lord, Lord Fox, as part of any Parliament it is usual to review our partner organisations to ensure that they are successfully fulfilling objectives on the Government’s behalf. The independent review of UKRI to which the noble Lord referred began yesterday under the leadership of Sir David Grant, and it will be reporting to Ministers in due course.
The noble Lord, Lord Rees, also mentioned a very important point about how ARIA’s success will be measured without constraining creativity. There are is a key point I would like to put to the noble Lord here. One of the key features of the ARIA model is its hands-on approach to project management, with projects constantly being re-evaluated and reassessed. ARIA’s agility means that programmes can not only start quickly, but they can also be halted quickly too. ARIA should not be judged on projects that fail in the short term because that is the nature of high-risk research.
The noble Lord, Lord Kakkar, in one of his typically excellent contributions, asked about how ARIA can truly be risk taking as a government arm’s-length body. We will have both legislative and non-legislative mechanisms to enable ARIA to operate boldly and autonomously. Clause 3 in the Bill equips ARIA to give particular weight to the potential benefits of high-risk research in carrying out its functions—not just what research it funds, but how it funds it. We will also set out in a future framework document and other agreements, a unique and specific set of financial and non-financial arrangements to cut unnecessary bureaucracy and ministerial control from ARIA’s operations. I hope that will also allay the concerns raised by the noble Lords, Lord Patel and Lord Broers, on protecting ARIA from day-to-day political pressure. The independent review of research bureaucracy being led by Professor Adam Tickell will also consider bureaucracy from a system-wide perspective. Interim findings will be produced this autumn, and we are expecting a final report to follow in early 2022.
In terms of governance, the noble Lord, Lord Patel, asked who the senior Minister with responsibility for ARIA will be. As my noble friend Lord Patten helpfully reminded us, as a manifesto commitment ARIA is a priority for the Prime Minister and the Cabinet. The Bill provides a specific role for the Secretary of State and any delegation of ministerial responsibility would be at the Secretary of State’s discretion.
I move on to the decision to exempt ARIA from freedom of information requests, which was raised by a number of noble Lords: the noble Lords, Lord Clement-Jones, Lord Davies of Brixton and Lord Fox, and the noble Viscount, Lord Stansgate. I reassure the House that the decision to omit ARIA from the FoI Act has not been taken lightly. To create the extraordinarily lean operating system that I have spoken about, we have had to consider what the most appropriate mechanisms to assure transparency and accountability are within ARIA. I thank my noble friend Lady Noakes for her support on this. Together, robust arrangements are in place that will provide a clear picture to Parliament and taxpayers about how ARIA’s activities are funded and where it spends its money. So I politely refute the views of the noble Lord, Lord Fox, on this.
First, the Bill requires ARIA to submit an annual report and a statement of accounts, which will be laid before Parliament. Secondly, ARIA will be audited by the National Audit Office and will be the subject of value-for-money assessments. Thirdly, ARIA will interact with Select Committees of this House and the other place in the normal way. Finally, we will draw up a framework document, detailing ARIA’s relationship with BEIS and further reporting requirements, such as details of what is published in the annual report. It is also an important fact that other bodies subject to the FoI Act, such as universities and government departments —including my own, BEIS—will still process requests about their activities with ARIA in the usual way.
The noble Lord, Lord Clement-Jones, made a comparison to the number of FoI requests in DARPA. It is an interesting fact that, when making an FoI request in the US, requesters are required to consider paying applicable fees of up to $25—I think that that is an excellent idea. If requests are expected to exceed this cost, the requester is notified to agree additional payment. While fee waivers or reductions can be granted in certain circumstances, there is not a like-for-like comparison to the FoI process in the UK, where, as I am sure the noble Lord will be aware, we get hundreds of what I call “sweeping requests” from people fishing for information when they are not really sure what they want but think that there might be something there, so they pour in FoI requests. Therefore, it is not right to assume that ARIA will receive a similar amount of FoI requests to DARPA.
The noble Lords, Lord Clement-Jones and Lord Fox, and my noble friend Lord Borwick asked about whether the Government will publish the framework document during the passage of the Bill. I should be clear that the framework document will not set a vision or strategy for ARIA—as I have said, that is for the organisation itself. It is a governance document that will follow the Treasury’s standard template and set out the role of BEIS as ARIA’s sponsoring department, its accountability, decision-making and financial management. Given the nature of its content, the framework document must be agreed with ARIA’s senior leadership, for which we are still recruiting. We are therefore not able to publish a draft framework document at this stage, but I would like to reassure the House that I will do so as soon as I am able to.
I thank the noble Baroness, Lady Chapman, for her general support, from the Opposition’s point of view, for the Bill. She rightly asked about the provisions in the Bill to exempt ARIA from public contract regulations and how we assure the appropriate propriety. We have provided a non-legislative commitment for an independent internal auditor to report on ARIA’s procurement activities, demonstrating transparency and good governance. ARIA’s framework document, which I just referred to, will also set out the expectations for conflict-of-interest procedures, in line with practice across government. I thank my noble friend Lord Borwick for his thoughtful comments on this. However, as a further safeguard, Schedule 1 provides the Secretary of State with the power to set out a procedure in legislation should it be required in the future. We will bring forward draft regulations for this power, for illustrative purposes, as the Bill goes through the House.
The noble Lord, Lord Davies of Brixton, and my noble friends Lady Noakes and Lord Patten asked about how we attract these high-risk ideas and the exceptional people who will pursue them, or, as the noble Viscount, Lord Stansgate, eloquently put it: today’s Alan Turing or Barnes Wallis. The recruitment campaign for the CEO launched on 1 June and will aim to conclude in the coming weeks. We are looking for the ability to provide inspiring leadership to high-performing teams.
In response to my noble friend Lord Borwick, we will soon be launching campaigns for the chairman and other non-executive members through an open and fair ministerial appointments process so that we are able to recruit the right talent to work alongside the CEO as a complementary leadership team. We recognise the need to ensure a competitive salary for this position and are in discussions with the Treasury. I will update the House as appropriate.
I welcome the considered contributions from my noble friend Lord Lansley, the noble Lord, Lord Kakkar, and the noble Viscount, Lord Stansgate, on the Haldane principle and ARIA’s use of peer review. It is right that at its core this is about scientists judging ideas on their merits, and that is at the heart of ARIA’s approach. However, the concept that funding proposals should be assessed by peer review is embedded within the Haldane principle, and I agree that that will not always be appropriate for ARIA, which will have an innovative approach to funding and will seek to empower exceptional scientists to start—and stop—projects quickly.
The noble Lord, Lord Patel, asked about research cost sharing, by which I assume he means with universities. We are considering the appropriate arrangements for funding research projects in universities to ensure both that they are properly costed and that those costs are met to enable transformative scientific research. Details on expectations for ARIA in that regard will be set out at a later date.
My noble friend Lord Borwick queried the definition of “property” in Clause 2. The Bill uses the definition “that which a person owns”. In exercising its functions, ARIA may acquire and own both physical property and intangible property, such as intellectual property. “Restoration” means “to return”, so ARIA can own a piece of research equipment that it can loan out on the condition that it is returned to ARIA within a specific timeframe. I hope this clarifies the issue for my noble friend and that he agrees that an amendment is therefore unnecessary.
Lord Fox (LD)
I do not wish to labour the property point, but if ARIA is not doing research then I do not understand why it would own research equipment. Sorry, I am confused.
Lord Callanan (Con)
It can fund the purchase of a piece of research equipment, which ARIA then owns, and it can loan it out on the condition that it is then returned within a specific timeframe. I am not quite sure why the noble Lord is confused but perhaps we can return to this issue in Committee.
I have tried my best to address most if not all of the points that have been made today. I am sorry to detain the House at such a late hour but I am deeply encouraged by its general support, albeit with some reservations, for the dedicated funding of high-risk research. I look forward to continued engagement with all sides as we progress the Bill through the House. I therefore commend the Bill to the House and beg to move.
Advanced Research and Invention Agency Bill
Wednesday 17th November 2021
(3 years, 1 month ago)
Grand CommitteeRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 24-I Marshalled list for Grand Committee - (15 Nov 2021)
Lord Ravensdale
“ARIA’s purpose
ARIA’s purpose is to fund projects with high transformational potential in pursuit of a sustainable and resilient society, planet and economy.”Member’s explanatory statement
The purpose of this amendment is to provide a broad sustainability purpose for ARIA which will ensure that it funds projects which align with core strategic challenges such as decarbonisation and which are sustainable.
Lord Ravensdale (CB)
My Lords, I shall also speak to Amendment 26 in my name. I thank the noble Lords, Lord Fox and Lord Browne, for their support for these amendments. I declare my interest as a director of Peers for the Planet and as an engineer and project director for Atkins.
There was much discussion at Second Reading of DARPA, the agency that has inspired ARIA. DARPA succeeded in changing the world because it took enormous gambles, failing often but with a few projects that succeeded, more than justifying the payouts and creating trillions of dollars in value. This freedom to take risks and to fail is its most important characteristic. That is exemplified by the second project that DARPA funded, Project Orion: a proposal for a manned spacecraft propelled by nuclear explosions. The head of DARPA at the time astutely stated that one of the main challenges was doing that in such a way that the occupants were not killed. While that particular high-risk project did not succeed, for obvious reasons, many others did: the internet, stealth technology and Moderna’s Covid-19 vaccine, to name but a few.
ARIA certainly takes that lesson from DARPA to heart, as described in the Bill: getting bureaucracy out of the way and giving a high-calibre team based on programme managers the freedom to deliver high-risk, high-reward research. But there is another vital lesson to take from DARPA which I referred to on Second Reading: a clear purpose for the organisation. Everything that DARPA does is defined by its aim of ensuring the technological supremacy of the United States armed forces. In 1958, the USA fortuitously hit upon a combination of factors for a research organisation—a clear purpose, freedom to fail, programme-manager-led—that literally changed the world. The US has taken this purpose-oriented approach in all its DARPA derivatives since, including ARPA-E and HSARPA.
To have the longevity and political staying power that DARPA has demonstrated, ARIA needs to have a purpose, and that purpose needs to be closely coupled to the strategic goals of the nation. Foremost among those strategic goals are the UK’s net-zero and environmental goals. Giving ARIA a broad sustainable purpose will allow a flexible approach to research, while at the same time being aligned with the innovation strategy that highlights the need to direct innovation towards
“our top priority societal missions … like the climate and biodiversity crises”.
It will also ensure that projects and proposals that would be contrary to those strategic goals do not progress.
Attempting to reverse engineer DARPA is not a guaranteed route to success, but we need to take the benefit of real-world experience in learning the lessons of why DARPA succeeded and giving ARIA the best chance of success, which is what we all want.
We know how vital R&D is to achieving our net-zero and environmental targets. For example, the International Energy Agency has stated that almost half the emissions reductions required by 2050 are expected to rely on technologies that have not yet reached the market. In this area, what must be done—the key enabler to make net zero politically possible across the world—is to create green energy at a price point that is cheaper than fossil fuels. So, we need nothing less than revolution in net zero and environmental R&D to make our goals possible.
That brings me to the specifics of my Amendments 1 and 26. Amendment 1 is very simple. It states:
“ARIA’s purpose is to fund projects with high transformational potential in pursuit of a sustainable and resilient society, planet and economy.”
This amendment would give ARIA a broad sustainability purpose in line with the points I have made, and in that sense, I believe, would fulfil the need to orient ARIA towards alignment with the most important strategic goal of the nation, and indeed the world.
In crafting the amendment, I have listened carefully to feedback from the Minister during the progress of the Bill in the other place, in that the Government do not wish to unduly constrain ARIA. That is why the amendment is written around a broad sustainability purpose, not a specific net-zero objective or mission. My amendment is not about saying that other streams of research not specifically related to net zero or the environment cannot progress; just that any such streams must not be contrary to, and preferably support, the core strategic challenges. Having a broad purpose and key priorities in setting the direction of the organisation is what the amendment seeks to achieve, while still retaining the flexibility the Government want for ARIA.
My Amendment 26 would ensure that consideration for our climate and environmental goals is embedded within ARIA’s functions. It is modelled on similar government provisions in other legislation, including most recently in the Skills and Post-16 Education Bill. As noble Lords will be aware, the Committee on Climate Change, given the advice that there is a need for a coherent approach to achieving net zero, has made it a priority recommendation for 2021 to ensure that all government policy decisions are compatible with the Government’s climate commitments.
In this sense, the amendment would align this Bill with other amendments the Government have put forward across a range of recent legislation, such as the skills Bill, the Financial Services Act and the Pension Schemes Act. To meet our goals, we need carefully to consider the systems aspects of net zero and ensure that consideration of these goals is embedded into all government policy and legislation where it is practical to do so.
Given how critical R&D is to achieving our goals, I hope the Government will agree that such considerations really need to be present in this Bill in order to align it with their broader strategy. It is not about stopping projects that are not directly related net zero; rather, it is about ensuring that the impacts in the context of compatibility with our climate commitments have been properly considered and factored into decision-making. It is a question of consistency with other legislation.
In summary, consideration of sustainability goals and functions in the Bill has wide support across the academic community, including from Professor Richard Jones, the science policy expert who has been involved in much of the thinking around the formation of ARIA. The amendment provides an excellent opportunity for the Government to maximise the benefit from the £800 million of funding, to demonstrate to international partners at this critical point post COP a new model for climate and net-zero aligned R&D, and to develop the new technologies that we will need to help the UK and the rest of the world achieve our targets. Finally, it would ensure longevity and long-term political support for the organisation, irrespective of the Government of the day, something the whole of Parliament can get behind. I beg to move.
Lord Lansley (Con)
My Lords, I am very pleased to follow the noble Lord, Lord Ravensdale. Two of the amendments in this first group are in my name, Amendments 25 and 27, and I want to speak to Amendment 27 first. It is grouped with Amendment 1 because we start by debating, quite properly, the purposes of ARIA as an agency. What is it here to achieve?
As the noble Lord, Lord Ravensdale, said, we are not seeking to replicate DARPA but to learn from it. DARPA said that its sense of mission was part of the reason for its success. However, that mission in this context was originally
“to prevent and create technological surprise”.
That is an interesting concept—to prevent technological surprise happening to the American Government and, at the same time, to create technological surprise on its own part. One might say that you could substitute “create technological advantage” in the latter case. Interestingly, in more recent years, when DARPA staff were asked what they regarded as their mission, they said it was to be part of “shaping the future”. Indeed, I think that is where our starting point should be. We want ARIA as an agency to be part of shaping the future.
My problem with Amendment 1—actually, I do not have a problem with Amendment 1, because you could stretch the language of sustainability anywhere; that is its advantage but also its problem. I am not sure I understand what the board of ARIA, or its leading members, would interpret as being outside the scope of the sustainability criterion. Does it actually help them? I am not sure that it does. If anything, they might feel that it constrains them towards certain missions. The DARPA example we ought to learn from is that, in practice, it set out to define for itself a range of missions within the organisation.
I note that sitting next to the noble Lord, Lord Ravensdale, is the noble Lord, Lord Broers. I take from his Second Reading speech the thought that the programme managers are at the heart of this system, and the programme managers are chosen in relation to the programmes that DARPA is pursuing. I suspect the same will have to be true for ARIA—that it has to decide, “What are our programmes?” The programmes, in my view, might be mission-led—for example, related to adaptation to climate change—but at the same time they might be technology-led. For example, they might be to pursue AI and the data economy or to look at cell or gene therapy. There is a range of those possibilities. We need to give ARIA, as an organisation, the flexibility to decide the missions that it thinks fulfils its purposes. The missions will develop over time, but the legislation cannot change repeatedly over time, so the legislation should be sufficient to enable ARIA to select the missions it wants for the future.
My Amendment 27 is in this group. A report of July 2016 produced for DARPA about innovation in DARPA isolated four “sources of success”, as it put it, the first of which was the “limited tenure” of the leading executive members
“and the urgency it promotes”—
nobody was appointed for a period exceeding five years. The second was a “sense of mission”, which I was just talking about. The third was “Trust and autonomy”—both giving DARPA autonomy but also within the organisation trusting and giving autonomy to the programme managers in particular. The fourth was:
“Risk-taking and tolerance of failure”,
which of course we are setting out to incorporate into this legislation for ARIA. I add that DARPA interpreted this as meaning “Move fast and take risks”—do not spend a great deal of time trying to assess all the risks, because you could lose the opportunities in the process.
Amendment 27 seeks to replace the language of Clause 3, not because I have any objection to the purposes set out in Clause 3; my objection is to the drafting. It says:
“ARIA may give particular weight”—
I am afraid I do not understand what is meant by “particular weight” or how people who read it subsequently will know what that means in this context—
“to the potential for significant benefits”.
We are all agreed about “significant benefits” and we know what they are because they are in Clause 2(6) above. It then refers to
“research … that carries a high risk of failure.”
It is awfully close to being a piece of legislation that says that ARIA should look for projects that are quite likely to fail because those are likely to give the most significant benefits.
This is not the approach that legislation should take. Legislation should be more deliberate. I thought: what are Ministers actually looking to do in this clause? I agree with the noble Lord, Lord Ravensdale, in his Amendment 1. Ministers—and we—are looking for ARIA to seek to have transformational effects. I think we are agreed about that. That is why Amendment 27 refers to “transformational effects”. I have also included a reference to the possibility of technological advance through
“the development and exploitation of … research”.
I do not think that is mentioned elsewhere but I think it is helpful because, actually, many of the advances that have occurred, including in DARPA’s programmes, were not themselves the object of the mission but were the result of the process of discovery and curiosity and the exploitation of research.
Baroness Brown of Cambridge (CB)
My Lords, I rise to support Amendment 1 and the amendments in this group that are about giving a purpose to ARIA associated with climate change and the environment. I declare my interests as a non-executive director of Frontier IP and the chair of BGF’s Clean Growth Advisory Board.
As the noble Lord, Lord Lansley, has indicated, ARIA’s success or failure will depend, crucially, on recruiting outstanding programme managers. These people will need to be interpreters and matchmakers well networked in industry and academia, with an excellent understanding of science and technology, strong lateral thinking skills—many of the things the noble Lord has already mentioned. They will also need to be tough risk-takers, but not gamblers. They will be hard to find, yet finding the right people is going to be critical to this success. Finding them will be the first constraint. Inevitably, they will have specific areas of expertise.
With a limited initial budget, focusing ARIA, at least initially, on the critical challenge of climate change and the environment will be a great way both to help address our greatest challenge and to support the UK economy. But it will also provide a valuable focus for the recruitment of these key individuals—the people who initially occupy these absolutely fundamental posts.
Lord Willetts (Con)
I would like briefly to intervene on this important group of amendments and should declare an interest as a member of the board of UKRI, which is very relevant to the issues we are currently considering. I am not acting as a spokesman on behalf of UKRI, but drawing on the experience that we have had there.
I welcome any attempt to bring greater diversity and innovation to our funding landscape. We do not want a monolith; we want lots of different ways of getting funding and lots of different requirements. Anything that adds to the diversity of the funding landscape I welcome as a good thing. However, I have two or three questions on which I hope that the Minister will be able to give some assurance.
First, the task of ARIA is often described as high-risk, high-reward research. In a way, Clause 3, to which my noble friend Lord Lansley, has referred, is an attempt at setting out in legal prose “high risk, high return”. It is great that ARIA will have that as its objective, but my one concern when I hear this language is the implication that all other public funding for R&D could not be high risk and high return and that it is in some sort of boring bureaucratic pot where everything is safety first and low return. I would be grateful for the Minister’s assurance that it is also perfectly possible for the agencies of UKRI and indeed other sources of public funding for R&D also to engage in high-risk, high-return research. It would place too much weight on ARIA’s shoulders and eliminate diversity if we said that it is the only agency that can act in that way. Having that authoritative assurance from the Government would be of great value in ensuring that our whole research ecosystem carries on performing in an innovative way.
Secondly, I want to reflect on the lessons that can be learned from the Industrial Strategy Challenge Fund, to which my noble friend has also referred, and seek another assurance from the Minister. When Theresa May’s Government put substantial funding—over £2 billion—into the Industrial Strategy Challenge Fund, Innovate UK, the main agency for delivering that programme, travelled to America to look at what ARPA did. It said, “These programme directors at ARPA are fantastic—we should have the ARPA model of programme directors in order to deliver the Government’s Industrial Strategy Challenge Fund”.
I can remember the debate that took place. The Treasury said “Hang on, how much are these programme directors going to be paid? They can’t possibly be paid more than is set by our pay rules”—the pay limit was, I think, £100,000. The Treasury then also said, “We need a committee to scrutinise that the money is being well spent and, to ensure it is making progress, a monthly report would be about right”. Then BEIS, which I do not think completely trusted the Treasury and saw this as a BEIS operation, said, “BEIS also needs to have a committee that meets to scrutinise the success of this programme director; we have slightly different criteria from the Treasury, so our committee should meet once a month”. It averaged out—at the start; it may have got better—that every fortnight there was some supervisory committee or other checking that this programme director was delivering the objectives.
That is the slow, painful process of bureaucratic accretion. It is marvellous that ARIA is, we are assured, going to be free of all that. It would be quite good, however, if other parts of research funding could also be free of those constraints. Indeed, the Government have several reviews on at the moment that are relevant to this, including the Tickell review of bureaucracy and a new grant review of UKRI.
I also hope that the Minister can assure us that, wherever possible, especially if these proposals emerge from two reviews set up by the Government, freedoms being extended to ARIA will also be enjoyed by agencies working under UKRI or other departmental bodies. The problem of bureaucracy must be solved across the whole swathe of R&D funding, not just by creating one institution outside the constraints that everyone else has to work under. I would like an assurance that lessons are being learned, both for the functioning of ARIA and from these two reviews now under way.
Thirdly and finally, we can already sense—not least from the opening presentation from the noble Lord, Lord Ravensdale, on the purpose of ARIA—a fascinating debate about missions versus technologies. I have frequently had that debate with my friend Professor Mariana Mazzucato, who has brought the language of missions into public policy, which is excellent. However, I always say to her that the Kennedy moonshot did not arise because a bunch of PPE-ists—speaking as one myself—sat around saying, “Wouldn’t it be wonderful if we sent someone to the moon? That would really get the media’s attention; let’s do that, Mr President”, but because of prior investment in general-purpose technologies, including rockets. It was a deep understanding of what the technologies might be capable of that led to the formulation of the mission.
One can resolve this by wordplay, by making “backing technologies” one of the missions, but the point made earlier about preventing and creating technological surprise tells us that, really, DARPA was always envisaged as driving American leadership in technology. We have the opportunity to choose missions only because of prior investment in underlying science and technology, which turns those missions from empty fantasies into deliverable objectives.
I very much hope we will have an assurance from the Minister during the course of our scrutiny today that ARIA will strike a happy balance. It should be able to fund general-purpose technologies without knowing exactly how they will prove useful, while suspecting that something of that power and significance will have use. It may also wish to fund specific missions or challenges, but it would be a strategic mistake to put all its eggs in one basket. It is the interaction of technological investment capabilities with missions and challenges that really drives innovation. I very much hope that ARIA will pursue both approaches.
Baroness Bennett of Manor Castle (GP)
My Lords, I apologise for not taking part at Second Reading; I was at the COP 26 climate talks, which are of obvious relevance to this group in particular.
I begin by reflecting on the model for ARIA—DARPA, which was of course military. We have talked a lot about risk-taking, which is usually interpreted as the risk of failure to achieve your objectives. When we think about the origins of this—the child very often showing some characteristics of its parent—we can also think about the risks attached to achieving your outcomes but causing unintended effects. With DARPA, there was Agent Orange in the Vietnam War and the drone warfare of the Gulf War, and it is now working on killer drones and robot warriors.
Looking at the model of DARPA, researcher Annie Jacobsen, author of The Pentagon’s Brain: An Uncensored History of DARPA, talked about how it very much became embedded in what has been described, including by US Presidents, as the military-industrial complex. Giving a mission is very important, in order to avoid institutional capture. That is one of the reasons why I speak in favour of Amendments 1, 21 and 26. We have not yet had the chance to hear from the noble Baroness, Lady Chapman, but I think her Amendment 21 is in a sense similar to Amendments 1 and 26, except that it provides a more regular review mechanism.
If we think about what ARIA is for and look at some of the proposals put forward, we see that the CBI described it as
“an international lynchpin for business investment”
that is to “ultimately deliver new products”. McKernan said that it was
“a public sector, new technology seed fund”
whereas, by contrast, the Russell Group described it as
“multidisciplinary research teams with the capacity to take a holistic approach”.
That brings us to the debate that the noble Lord, Lord Willetts, was just addressing, which was also raised by the noble Lord, Lord Lansley—and why I would express opposition to his Amendment 25. There is a danger in focusing on technology rather than on mission. We want to focus on mission and on the problems that we need to solve—and Amendment 1 very much focuses on the great problem that we need to solve. Discussion thus far has focused very much on the climate emergency, but it also talks about a “sustainable … society”.
Lord Oates (LD)
My Lords, I will speak to Amendments 1, 21 and 26. While the noble Lord, Lord Lansley, made a compelling case for his Amendment 27, I would probably part from him on the wider issue of mission. I was grateful to the noble Lord, Lord Willetts, who set out quite a few of the issues, and particularly for his underlining once again that the Treasury is at the heart of undermining almost every single good idea that ever occurs to government.
I regret that I was not present for the Second Reading of this Bill as I was on a train en route to the COP conference, but I had a chance to read the record of the debate. Much of it has been reflected in today’s debate, particularly the point, made by a number of noble Lords, that ARIA lacks the clear purpose which they feel will be necessary if it is be successful. Noble Lords, including the noble Lord, Lord Ravensdale, pointed out again today that that purpose was at the heart of the success of the US Defense Advanced Research Projects Agency. The noble Lords, Lord Ravensdale and Lord Davies of Brixton, and my noble friend Lord Fox, all gave some guide as to what such a purpose might be in playing a key role in addressing issues of sustainability and climate change.
Amendment 1, as we have heard, would establish a broad sustainability purpose for ARIA. Amendment 21 would set the core mission in a slightly different way, very much focused on net-zero emissions, and Amendment 26 is again different, focusing on ARIA having to give due consideration to the net-zero target and other environmental goals. As this debate has indicated, there are essentially two questions to be determined. The first is whether there should be a specific purpose or mission for this body, and whether such a purpose or mission would help or hinder it in delivering the sort of transformative success that we all hope it will deliver. The second question is, of course, that if we conclude that a sense of mission would assist, what that mission should be.
On the first question, although the Secretary of State and others in the other place were happy to cite DARPA and its successes as the model when extolling the virtues of this proposal, the reluctance to give it the clear focus that DARPA had seems a mistake. DARPA had a clear mission, a purpose: not to be surprised by technology and, hopefully, to surprise others with it. It had a clear focus, which was the threat posed by the Soviet Union and the need to maintain the competitive scientific and research advantage over it that Sputnik and other programmes had caused the US to worry it was losing. That sense of purpose was critical in driving that early success. I fear that without a clear focus for our advanced research agency, it will lack the direction and urgency that DARPA had, and which is required to achieve transformational change.
It is clear to me that a purpose, a mission, will be very important to ARIA’s success. If so, surely there is no more compelling case than to focus the work and energy on the climate and ecological emergency that we face. That is a long-term issue, as the noble Lord, Lord Ravensdale, pointed out. Tackling those challenges will require massive innovation and ingenuity, and the development of practical applications from that.
If the purpose of DARPA was to protect the national security of the United States by retaining its scientific edge against the threat of the Soviet Union, today, the threat from climate change, although very different, is some orders of magnitude greater. It is an existential threat to all humanity, and to bring a halt to climate change or stop it running completely out of control will test us to our utmost—it will test our ingenuity, our practical application and our ability to deploy all our resources. If we do not harness our advanced research agency to that task, future generations will surely look back on such a decision with a real sense of astonishment.
The noble Lord, Lord Lansley, said that DARPA was really about shaping the future. This agency should be about shaping the future, but we must ensure that there is a future to shape. Unless we tackle the climate and ecological emergency, there will not be.
Lord Broers (CB)
My Lords, I shall make just a few comments. I declare my interests, as I did on Second Reading. I spent most of my active life, 40 or 50 years, doing things that ARPA was doing—that we were doing in IBM in the United States—and I have spent more recent years working with the Queen Elizabeth prize and now with the Draper Prize of the National Academy of Engineering of the United States. I declare my membership of that academy, the Chinese academy and the Australian academy, as well as the royal academy here.
The noble Lord, Lord Willetts, raised a lot of cogent points, but the mission of ARIA—I wish “Invention” was replaced by “Innovation”, but that is a small point —must be, to distinguish it from UKRI, to take projects all the way through until they are fully implemented, fully available for people to use, commercially sensible and affordable, and to solve an important problem. A lot of what UKRI does is the essential discovery and understanding of how the world works, and these things should be different.
One thing is very much in common: you need creative people. In ARIA you probably need creative engineers—there will be scientists as well; most of these things are mixed—and creative engineers are no different to creative musicians or creative artists. They do not like being told what to paint, what to compose, how to compose or how to paint. That would turn them all away.
I test my credibility by quoting Donald Rumsfeld. ARIA is all about “unknown unknowns”. I have been sitting down for the last two hours reading all these amendments; we are trying to tie down ARIA so that we understand what it will do, when it will do it, how often it will report on doing it and everything else. That is not what we are trying to create. We will destroy the thing before we ever give birth to it.
I support these amendments, because the challenge that the noble Lord, Lord Ravensdale, has come up with, and others have supported, is the climate problem. That is huge and wide. I do not think it is a constraint that will really trouble creative people at the moment. In fact, I have met a lot of people who are very successful in one field of research and have abandoned that and moved into the field of climate and what they can do about it, because they feel that is the best place to apply their creativity and intellect. I urge the Minister and everybody who will take this through: let us not strangle the poor thing before it begins.
Baroness Chapman of Darlington (Lab)
My Lords, it is a pleasure to follow the noble Lord. He is completely right when he says that climate is a broad enough canvas on which people can paint. Broadly speaking, I do not mind painters and artists painting whatever they like, whenever they like, on whatever they like—if I am not paying for it. But we are paying for this, and it is not unreasonable for us to say that we would like ARIA to turn its attention primarily to the climate emergency, the very thing that is threatening our existence on this planet. That is a sufficiently exciting challenge to set ARIA.
The noble Lord, Lord Lansley, was very persuasive and I understand the attraction of allowing maximum freedom, but the risk is that it becomes directionless. For a quite small organisation, as ARIA is, that is a risk, so my view is that ARIA needs a core mission.
The Government want ARIA to have maximum flexibility and be able to back projects as it sees fit, free of any political interference or unnecessary bureaucracy. The noble Lord, Lord Willetts, explained very well how deadening that could be. We certainly have no wish to enter into the kind of situation he described, but a research focus or a mission could be achieved without that risk. He said that no one could have set out to achieve the moon landings without being able to look back and build on existing technology. That is completely right, but we do not have the luxury of that at this moment. We have a very real, immediate risk that we need to address, which is why we favour making the mission one of climate.
We all want ARIA to succeed. This is quite a good Bill from a cross-party working point of view because we all want it to work, but asking the board to come up with its own mission—or, even worse, not having a mission at all—would not assist ARIA and could set it up with a weakness, or even to fail. We all need direction, purpose and a sense that what we are doing is contributing to a greater good, so telling ARIA to back any scientific research and to do what it sees fit would be a mistake. The board will anyway spend its first few months deciding how it is going to make decisions. We are not attempting to tell it how to do that, but it would have no framework or sense of the UK’s priorities, and I just do not think that is necessary. It would be a mistake and, if we corrected it, that would not diminish ARIA in any way; in fact, it would be strengthened.
Lord Browne of Ladyton (Lab)
My Lords, I will speak in support of Amendments 1 and 26—to which I have added my name—and Amendment 21. Like the noble Baroness, Lady Brown, and the noble Lord, Lord Oates, I have to tender my apologies for not contributing to the Second Reading debate. I was not at COP 26 or on my way there, I was actually in this Room in the Committee on the Armed Forces Bill and speaking to amendments in my name and which I had supported. I regret that I was unable to be there.
I agree with the arguments put forward by a number of noble Lords and I do not intend to rehearse them. Because I was not at Second Reading, I read the debate very carefully and a number of Peers raised the issue of lack of purpose of ARIA and suggested a climate change purpose, which I support. The Minister pushed back on this. He said that solving particular national challenges falls
“very much within the UKRI remit”
and a programme to develop these challenges would be decided by the national science and technology council in due course. He may be in a position to tell us how long that “due course” will be today. It would be interesting if he was.
Finally, he commented that:
“It would clearly be inappropriate to create another new body to do essentially the same thing.”
He said that ARIA’s leadership would be responsible for setting its strategy and—here I quote the issue I am really interested in—upholding
“the autonomy which is at the heart of this new agency”.—[Official Report, 2/11/21; col. 1200.]
That is what I want to explore. I hope I have not misrepresented the noble Lord’s response but if I have, he will have the opportunity to correct me.
It is clear that ARIA enjoys some autonomy but it is not unlimited. In fact, in exercising its functions as set out in Clause 2(6), it “must have regard to” a number of things and they are very broad. I will read them in short:
“contributing to economic growth, or an economic benefit, in the United Kingdom … promoting scientific innovation and invention in the United Kingdom”—
there is the word “innovation”—and
“improving the quality of life in the United Kingdom”.
That is pretty broad. So, it is constrained to do that.
Clause 5 states:
“The Secretary of State may give ARIA directions … in the interests of national security.”
These directions must be complied with and I fully appreciate why that is there. I understand it and I think it is necessary, and I do not expect the Minister to expand on that.
However, I do expect him to expand on the potential significant restriction that is in Clause 4. Clause 4 grants the power by which the Secretary of State may make grants to ARIA. Clause 4(2) states:
“Grants under subsection (1) may be subject to conditions.”
Clause 4(3) refers to one particular condition, for some reason, in the absence of any others: that the grant may need
“to be repaid (with or without payment of interest).”
I was intrigued by that and thought there was bound to be an explanation of what the Government have in mind. What limitations on the autonomy of ARIA are going be put in these conditions? Why do the Government think they need this restriction?
As always, I reached for the Explanatory Notes. I will quote them because they make very clear the purpose of this:
“This Clause provides the Secretary of State with a grant funding power in relation to ARIA.”
I had worked that out. They then state:
“The Secretary of State can make grants subject to conditions. In particular, the conditions may require the repayment of financial support with or without payment of interest.”
They simply restate the clause.
I am still at a loss to understand. I hope that if the Minister chooses to reject any of these amendments on the basis of the restriction of autonomy, he will give the Grand Committee the opportunity to understand what restrictions the Government intend to put on the autonomy of ARIA. That will help us, at the appropriate time, to decide whether these restrictions—I do not believe they are restrictions; I will come to that in a moment—are actually restricting any autonomy which it is likely to have. If that is the issue on which these amendments stumble, it needs to be described in a wee bit more detail.
However, my argument is that these provisions do not seek to create a new body to do essentially the same thing as the national science and technology council, but of course we will not know what that is until we see what the national science and technology council does under the leadership of the Prime Minister. In the context of a world in which we have clear national priorities, we are told that we cannot allow an autonomy for this institution that we would not allow for any other institution; that is, to act against the national interest. I remind the Minister that the pursuit of a sustainable and resilient society is one of the four overarching objectives set by the strategic framework set out in the integrated review. That framework, in the Government’s own words,
“establishes the Government’s overarching national security and international policy objectives … to 2025.”
The provision to constrain ARIA from acting against that is clearly in the stated agreed national interest.
In relation to the Climate Change Act, that is a national obligation. Surely, we cannot anticipate that ARIA would act against that national obligation of net zero by 2050, or the imperative of adaptation to climate change, or the environmental goals which have been, and are being, developed in this Parliament. In a sense, red lines are being put around ARIA but they are about national imperatives, which are shared by everyone, including the Government. They are desirable for all the reasons that noble Lords have set out but, I have one question for the Minister, which I would like him to answer either now or at some point before Report: what do the Government expect the CEO and the board of ARIA to want to do which would be inconsistent with these provisions? I guarantee noble Lords that should it wish to do any such things, the Government would seek to restrict its autonomy because it would be acting in an undesirable way.
Lord Fox (LD)
My Lords, this has been a fascinating debate. I thank all noble Lords for their contributions. I was delighted to hear the defence of basic research made by the noble Lord, Lord Willetts, and the point he made about bureaucracy in the rest—it should be said, the larger part—of research funding was well made and echoed many of the Second Reading comments.
However, there is a danger that we are taking the DARPA bait a little too seriously. The Government have played this into all their communications. Let us look at what we are comparing. DARPA has a huge budget, many times bigger than even the best budget we could expect for ARIA. It has been there for decades. The noble Lord, Lord Willetts, mentioned Mariana Mazzucato. What she is very good at is pointing out how the technologies developed in DARPA have then been picked up by technology businesses within the United States, some of them part of the “military-industrial complex”, as the noble Baroness, Lady Bennett, put it, but of course Apple is one of her best examples and even the noble Baroness, Lady Bennett, might have one of those to hand. The mobilisation of this technology is absolutely key, which is why what the noble Lord, Lord Broers, had to say was so important and why the project management part is such a central point.
I refer back to the points that started to be made through Amendment 25, proposed by the noble Lord, Lord Lansley. At Second Reading, the Minister deployed the words of Professor Dame Ottoline Leyser, the chief executive of UKRI. He quoted her telling the Public Bill Committee in the other place that
“the priorities that the Government and Ministers set to solve particular challenges for the nation … fall very much within the UKRI remit”.—[Official Report, Commons, Advanced Research and Invention Agency Bill Committee, 14/4/21; col. 8]
The implication—and almost the stated point—was that because UKRI is covering this, there is no need for ARIA to cover it.
Viscount Stansgate (Lab)
My Lords—ah. I caught the expression on the Minister’s face, and I apologise for delaying his remarks. This is my first Bill Committee and I would like to say a few brief words in support of Amendments 1 and 21 and a word about the amendment in the name of the noble Lord, Lord Lansley.
We are, after all, discussing something new. I spoke at Second Reading—those who missed it were spared that experience—and said:
“We are discussing an experiment”.—[Official Report, 2/11/21; col. 1169.]
In some ways, it is an interesting occasion. I presume that we will find out from the Minister that even the Government themselves do not know what it will be like, because it is in the nature of the thing that we do not.
The Committee and the Bill team have been spared the amendments I tabled, because as a new Member I submitted them too late. Nevertheless, some of the amendments I drafted relate to some of those on the Marshalled List, in particular relating to climate change as an objective that should in some way be associated with ARIA’s work. It is quite a timely moment to be discussing this in Committee. COP has just finished, there will be a debate in the House tomorrow on its aftermath, and, as it is the most existential crisis facing planet earth, as one noble Lord said, I do not see any reason why ARIA cannot play a part in trying to deal with the issues we face.
When I was very young, we had a model of Sputnik in our living room; I do not know how it arrived. I look back now and realise that that was what triggered ARPA and DARPA, which to some extent we are basing our discussion on now. As the noble Lord, Lord Lansley, said, it was to prevent surprises. The United States Government did not like that surprise, for sure.
As the noble Lord, Lord Lansley, also says in his Amendment 25, we are not here to create a body that duplicates UKRI. I listened with great interest to the noble Lord, Lord Willetts, who has an enormous amount of experience in this field. When you talk about the bureaucracy involved, that strikes a chord with everybody, maybe on this Bench as well, including—if I may use this phrase—my noble friend Lord Broers, who referred to his wish to change the Bill’s Title.
My first amendment was to change the Bill’s Title. I know you normally do not spend time thinking about it, but perhaps when the Minister replies he could at least explain why the Government themselves, who introduced the concept of ARPA, subsequently changed its name. It would be helpful to know some of the thinking that led to the change of name to ARIA, whatever the “I” stands for.
As we know that this is based to some extent on the experience of DARPA, I can report that I spoke recently to two Americans who are very interested in what we are doing here. The American Chemical Society and someone in the State Department expressed great interest in what we are discussing. They are looking to see how we develop this idea and put it into practice.
My last point to make at the outset is that the relationships between ARIA and the other bodies in the scientific landscape will be very important. Someone already quoted Dame Ottoline Leyser of UKRI, and I know that she said, I think before the Select Committee, that it will be vital to maintain relationships with key players right across the system. There is a range of other bodies. My noble friend referred to the new council for science and technology, chaired by the Prime Minister, and we also have a new set of relationships with the Chief Scientific Adviser, both in his existing capacity and in his new capacity as Chief Technology Adviser. I hope that we can explore some of those in Committee. Forgive me for saying this, but it would have helped if we had had some idea of what the framework document is due to say because, as I understand it, it will describe some of the relationships that the Government have in mind that ARIA should have with other major bodies in the rest of the scientific world.
I shall leave it there and try to cheer the Minister up by saying that I will sit down and, as far as I know, no one else is following me, so the floor is his.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
I thank the noble Viscount, Lord Stansgate, for his intervention. When he was unable to complete his remarks at Second Reading, he said that he would come back in Committee and add to what he had said—which makes a change from what normally happens, with people coming back to repeat their Second Reading speeches. It is good to hear from the noble Viscount.
I am also delighted to hear the unequivocal support from the Opposition Benches for that great neo-conservative, Donald Rumsfeld—quoted by both Cross-Benchers and the Liberal Democrats. A great man indeed.
Amendments 1, 21, 25 and 26 create requirements that seek to narrow, or to have the Government direct, ARIA’s funding. Amendment 1 would require ARIA to pursue projects that contribute to a sustainable and resilient society, planet and economy. Amendment 25 seeks to specify a relationship with UKRI. Amendments 21 and 26 would set ARIA’s core mission as to support achieving the target established in Section 1 of the Climate Change Act. Once achieved, ARIA’s mission would then be set every five years by government by an affirmative SI. Of course, I thank noble Lords for tabling these timely and topical amendments, particularly given the partial success at COP 26 last week.
Starting with Amendment 1 from the noble Lord, Lord Ravensdale, let me point him to Clause 2(6), where, in exercising its functions, ARIA must have regard to contributing to economic growth, promoting scientific innovation and invention, or improving the quality of life. These considerations ensure that ARIA’s activities are geared towards beneficial outcomes, which will of course include sustainability and resilience. Of course, this broad characterisation of the benefits of ARIA’s activities does not represent the limits of ambition for individual ARIA programmes, or substitute for ARIA’s unique tolerance to failure as set out in Clause 3.
That brings me on to Amendment 27 from my noble friend Lord Lansley. I have heard consistently from the scientific community that ARIA must have high risk tolerance to succeed, and indeed that gets to the heart of what ARIA is all about. It is therefore important, in my view, that we express that idea precisely. My noble friend’s alternative articulation of risk tolerance, for which I thank him, does not specify the particular weight that ARIA may give to this type of activity, and I think that is crucial, particularly for the NAO’s assessment of whether ARIA’s activities are in line with its stated functions.
Lord Ravensdale (CB)
I thank all noble Lords who have taken part in this excellent and illuminating debate. I think it has demonstrated a clear feeling that there is a problem to be addressed in terms of what ARIA is to do—
“a brand in search of a product”,
as was said in the report of the House of Commons Science and Technology Committee. The real advantages for the Government in considering the purpose of the organisation are that it is all about maximising the chances of ARIA’s success as we take it forward.
I will draw out a few key points. The noble Lord, Lord Lansley, got to the heart of the matter in asking whether the organisation should be technology-led or mission or purpose-led. He made some very strong arguments, but I come back to what the deputy director of DARPA said in his evidence to the House of Commons Science and Technology Committee:
“having national security as the mission frames everything”
that DARPA does, having that high-level purpose within which the technology is developed.
I also emphasise some of the points made by the noble Baroness, Lady Brown, and the noble Lord, Lord Broers, about the value of setting that goal and creating some inspiration behind the organisation—using it to inspire and bring in the right people—and the importance to its success of the programme directors.
The noble Lord, Lord Oates, emphasised the importance of that sense of purpose, and the competition with the Soviet Union, for DARPA when it was set up in 1958 in response to the launch of Sputnik. It is easy to forget the panic at that time; it was Lyndon Johnson who envisioned a day when the Soviets would be
“dropping bombs on us from space like kids dropping rocks onto cars from freeway overpasses.”
For very different threats, we need to take the same approach that the US did in 1958, rethinking our innovation systems to meet our climate goals. The noble Baroness, Lady Chapman, emphasised the importance of bringing the whole of Parliament along with this organisation, and building support across Parliament for it in the long term. Taking that long-term view is another key point.
We will come back to this, and I look forward to further discussions with the Minister. On that basis, I beg leave to withdraw my amendment.
Baroness Noakes
Baroness Noakes (Con)
My Lords, in moving Amendment 2 I will speak also to Amendments 6, 8 and 10 in my name. These are all probing amendments that concern the governance of ARIA and its board, so I am dealing with much more mundane matters than we covered in the first group. There are a lot of different aspects in this group so I apologise in advance for taking a little time in my opening remarks.
Amendment 2 is about the size of the ARIA board. It deletes paragraph 2(2)(c), which allows between two and five executive members to be appointed to the board in addition to the chief executive and the chief financial officer. As with the governance arrangements relating to commercial boards, paragraph 2(4) requires there to be a majority of non-executive members. Therefore, the minimum size of the ARIA board will be twice the number of the executive members, plus one. If there are two additional executive members, the total number of executives would be four, the minimum number of non-executive members would be five, with a minimum board size of nine. If, however, the full complement of five additional executive members was appointed, the board would comprise seven executive members, with a minimum of eight non-executive members, making 15 in total. There is, however, no limit to the number of non-executive members and hence no upper limit on the size of the board.
I believe that this design is flawed and could result in an unwieldy and ineffective board. Some years ago, in the wake of the financial crisis, Sir David Walker produced a review of corporate governance in banks and other financial services entities. His report included an annexe, which dealt with optimum board and committee size, based on evidence from a number of sources. Sir David said that the optimum board size was between eight and 12, and that beyond 12 a board was prone to
“passive free riding, dislocation and ‘groupthink’”;
in particular, the likelihood of groupthink increased “exponentially” above 12.
I will quote some of the rationale for this:
“This importance of size is due to the cognitive limit to the number of individuals with whom any one person can maintain stable relationships, this limit is a direct function of relative neocortex size, and this in turn limits group size.”
My own direct experience of a number of boards in different sectors over the years is pretty much in line with the Walker report.
At Second Reading I emphasised the need to avoid groupthink in ARIA, and I hope the Government will look again at their design for ARIA’s board. Many listed companies have only the chief executive and the CFO as board members, which helps limit overall size and keep the board effective. Is it really necessary to have a minimum of any extra executive members? Why not just set an upper limit on the size of the board—at, say, 12—and let the rule on the majority of non-executives drive the remaining appointments?
Amendment 6 is designed to ensure that the culture of ARIA is kept away from the Civil Service and government, about which I also spoke at Second Reading. It states that non-executives cannot be either Ministers of the Crown or employed by a government department and paid out of public expenditure. There is a precedent for a prohibition on Ministers and civil servants in the Bank of England legislation which governs appointments to the Court of the Bank of England. It is now in the Bank of England Act 1998, and I have largely copied that drafting, although I have added a prohibition regarding positions held within the five years preceding the appointment. It is clearly important that the central bank is formally independent of government. In the case of ARIA, formal independence is not the issue; rather, it is very important to be independent of the prevailing mindset in Whitehall. I hope that the Minister will agree with me on that.
Lord Lansley (Con)
My Lords, I am very glad to follow my noble friend Lady Noakes, who has typically managed to make some penetrating remarks about the prospective corporate governance of ARIA. All the amendments in this group, including mine, are probing amendments; that is the nature of debate at this stage. I hope the Government will take on board some of the things my noble friend has said, think about them carefully and perhaps bring forward their own amendments. What she had to say about the size of the board and the desirability of setting a limit on the number of executive members in order to keep the size of the board as whole under control makes perfect sense, as does the point about committees of the board.
My three amendments in this group also to try to establish how the Government are going to address the membership of ARIA. The first, as my noble friend said, is Amendment 3, which would remove the Chief Scientific Adviser from the board. By the way, this is no reflection on the Chief Scientific Adviser now, in the past or in the future. The point is that if we want ARIA to be independent and autonomy is an essential part of its role, does it make sense for the Chief Scientific Adviser, whoever she or he may be, to be sitting on that board trying to make decisions that are, almost by definition, different from the decisions being made by the rest of the research and innovation landscape? Indeed, the Chief Scientific Adviser is now the head of the new office for science and technology strategy.
If the CSA is leading the strategy for science and technology across the landscape, you might say that surely, they should be there, so that ARIA fits into that strategy. That is precisely the problem: ARIA should not be led in the same strategy as the other parts of the research and innovation landscape. Does it not create an inherent conflict of interest for the Chief Scientific Adviser to be setting the strategy on the one hand and departing from it on another, which is potentially what ARIA will be doing?
Amendments 5 and 7 in my name ask whether the appointment of a chair by the Secretary of State for Business, Energy and Industrial Strategy should be subject to some scrutiny. I have not gone to the step on this because I do not think the criteria are met for this to be an appointment that is subject to an agreement of or a recommendation from a committee of the House of Commons. However, given the existence of the Science and Technology Select Committee and the work it does in the Commons, it would be extremely helpful for it at least to have a hearing and to make some of its own remarks. That would help in the process of giving some democratic accountability to the initiation of the board itself. ARIA is going to autonomous, relatively independent and determined in large measure by its board. The appointments of the chair and the chief executive in the first instance are very significant in this regard.
Amendment 7 is precisely about the appointment of the first chief executive officer. I think the Government are currently searching for both chair and chief executive. The first chief executive officer appointment is not going to be made by the chair, so it is particularly important that there be a degree of objective scrutiny of that appointment. Subsequent appointments will be a matter for the chair and the non-executive members of the board.
I hope that the Government will at least recognise the potential merit of the Science and Technology Committee having a hearing in each case and offering its views.
Viscount Stansgate (Lab)
My Lords, I strongly support what the noble Lord, Lord Lansley, has said regarding his Amendments 5 and 7. One of the amendments lost to the Committee was drafted very much along the same lines, although mine made it. This is a very important issue. The work of the Select Committee in the House of Commons is superb. The former Minister, the noble Lord, Lord Willetts, knows all about it.
This is a very important principle, especially as we are discussing something so new and there is so much about it that we do not yet know. It is essential for the Select Committee to explore these matters with the chair and chief executive designate. I would go further than the noble Lord and make the appointments subject to the agreement of the Select Committee. Indeed, I regard this as an important principle to apply in general across many appointments made by government, many of which could be made subject to the agreement of the appropriate Select Committee.
As to the amendment from the noble Baroness, Lady Noakes, I found myself wondering, especially in regard to Amendment 2, whether her remarks about the ideal size of a board apply to the membership of a Committee stage of a Bill. Are we too large a group of people around this table effectively to conduct our business? I have an open mind on that, and I look forward to hearing what the Minister says in reply.
Lord Morse (CB)
My Lords, I will speak only briefly, primarily about the amendments from the noble Baroness, Lady Noakes. They all reflect best practice in corporate behaviour and should be taken very seriously. The one that goes even deeper than that is Amendment 6, which looks at the prohibition of civil servants and former Ministers from being on the board for five years. That is really important and thoughtful—that we do not import Civil Service groupthink, which is well protected in other venues and continues for long periods of time. Not to have that on the board is a major protection for the qualities that you want ARIA to have.
Lord Fox (LD)
My Lords, I am now going to indulge in some groupthink by agreeing with the last speaker and the noble Baroness, Lady Noakes. The Government fail to take her advice on corporate governance at their peril. All her amendments are sensible and ones that I hope the Minister, who clearly will not endorse them today, will be able to take away, think about and maybe amend a little to put the Government’s thumbprint on them. I suggest that it would be helpful to look at them seriously.
Amendments 5 and 7, as we have heard from the noble Lord, Lord Lansley, seek to inculcate the House of Commons Select Committee into the appointments process, at least at some point within it. Noble Lords will see, later on in the Bill, that Amendment 32 also seeks to carve out an ongoing role for that Select Committee. Clearly, if I were to stand by Amendment 32, Amendments 5 and 7 would also make a lot of sense, in that they will be there at the beginning.
It may be out of kilter or otherwise, but this set of amendments really looks at the membership and members of the board. I have a quick query, which may just be me getting things confused. The Minister kindly sent around the draft of the SI on conflicts of interests. Of course, this may come in when we come to talk about the fourth group of amendments. It refers to “members” throughout, and I am not clear what a member of this organisation is, which made me think that I am not actually clear what the legal structure of this organisation is. I think there is some work to do to help me—if no one else—through. Is this an incorporated association? Is it a company limited by guarantee? What is it? Until we know that, some of the other things that we need to discuss will become very difficult.
Baroness Chapman of Darlington (Lab)
My Lords, I will quickly put on record our position on this. I am also fascinated to find out why this issue of the Chief Scientific Adviser is there. I can imagine why, and I am speculating as to why, but I would like to know what the Minister had in his head in proposing that.
I put on record our support for Amendments 5 and 7 in particular. One of the themes from us on this Bill is about trying to enhance democratic engagement with ARIA—not control or oversight, but we think that there is space for some engagement there.
Lord Davies of Brixton (Lab)
At Second Reading I raised the appointment of the chair and the chief executive by the Government. Can the Minister make clear that these appointments will be subject to the normal code of practice, or whatever exactly it is called, for public appointments? Will it be subject to the same process as the majority of public appointments?
Lord Callanan (Con)
This group of amendments relates to the balance that we need to strike between ARIA’s independence from and accountability to government, which is a difficult balance to draw. I shall begin with the amendments relating to the composition of ARIA’s board.
Amendment 2 from my noble friend Lady Noakes would limit the executives on ARIA’s board to just the CEO and the CFO. I appreciate the spirit of her amendments, trying to ensure that ARIA is an agile body with a streamlined board, but we have decided that the number of executives should be at least four. We have said that in the interests of representing the different executive functions within the organisations. Similarly, we have imposed a maximum number to try to keep it as efficient as possible.
As the majority of the board members need to be non-executives, in our view, that means that the minimum total number of board members will be nine, to ensure a majority of non-executives, and our expected maximum is 15. We believe that this is very much in line with standard practice. It is not usual for legislation to specify quoracy arrangements, and the Bill’s current provisions mirror some of the procedural arrangements that are in the Higher Education and Research Act. I am also happy to confirm that it is not our intention to offer non-executive members pensions or gratuities—I do not want to get into a definition of gratuities—but it is commonplace to ensure that the provision is available.
The drafting that we have used is also found in the Higher Education and Research Act 2017 for UKRI non-executives under paragraph 7(2) of Schedule 9, and indeed in the Energy Act 2013 for the Office for Nuclear Regulation’s non-executives under paragraph 11(3) of Schedule 7. I therefore do not see that Amendment 8 in the name of my noble friend Lady Noakes is necessary.
I turn to Amendment 3. In our view, the Government’s Chief Scientific Adviser will bring a somewhat unique perspective to the ARIA board in their independent advisory capacity, with awareness of science and technology across government. It is important to emphasise that he or she will be on the board in their capacity as an independent adviser, not in their science and technology strategy capacity. Indeed, it is perfectly possible for there to be two different people in those roles. It is also important to emphasise that they will not do so on a privileged basis. Other non-executives will have been appointed for their expertise, their wide experience and their special knowledge of different facets of the research and development system, and they will equally provide ARIA with independent advice in the best interests of the organisation and its objectives, as the Chief Scientific Adviser will.
Lord Lansley (Con)
Before my noble friend moves off this particular point, he will know, and the Committee will have observed, that in paragraph 18 of Schedule 1 the Government are proposing to take a power to substitute somebody else or some other office for the Chief Scientific Adviser. What my noble friend was just saying gave me the impression that this is something that might be contemplated in circumstances where the two roles that he refers to are held separately.
Lord Callanan (Con)
That is the exact point. At the moment they are occupied by the same person, but at some point in the future there might be other arrangements. It is just to ensure that the Secretary of State has the maximum flexibility.
I turn to the recruitment and appointment of ARIA’s board members. I am happy to confirm to the noble Lord, Lord Davies, that we will of course follow the normal and usual procedures for the appointment of directors and non-executive directors of public bodies. Amendment 6 seeks to disqualify a non-executive member if the individual has been a Minister of the Crown or a person employed by a government department. While I understand that the likely intention of this amendment—which will perhaps make my noble friend Lady Noakes and some of the contributors on this grouping unpopular—is to ensure that we have the highest calibre of individuals represented on ARIA’s board, I believe it could have the opposite effect. It would undermine the Secretary of State’s ability to run an open and fair recruitment process, as it would narrow the search field on a somewhat arbitrary basis. It could also prevent the appointment of an individual with demonstrable scientific or technical experience—some of whom may well be in this Room today—just because that individual had served in public office or as a civil servant. That seems very unfair to me, and I see no obvious logical reason for depriving ARIA of such expertise.
Amendments 5 and 7 would require the Secretary of State to inform the Commons Science and Technology Committee before appointing ARIA’s first CEO and chair, and to make arrangements should the committee wish to call them for evidence. As noble Lords are aware, we are currently recruiting for the CEO role. We will launch the chairman recruitment following the conclusion of that process, so that we are able to recruit the right person to work alongside the CEO as a complementary leadership team. I can confirm that we will of course write to the committee on the announcement of both positions; it may then choose to invite the appointee to give evidence to it on their vision and functions in ARIA. I strongly submit that it is not for the Government or Parliament to specify in legislation what a Select Committee should or should not do. It is perfectly capable of deciding for itself whether it wishes to summon individuals to give evidence—or not, as the case may be. Given the robust appointment process and the committee’s standing powers to invite witnesses to give evidence, I really believe that a special provision in legislation for a pre-appointment hearing is not necessary.
I acknowledge that the balance between giving ARIA the autonomy that I think everybody here is agreed it should have and ensuring a certain amount of accountability to government, the National Audit Office, et cetera, is an issue on which noble Lords will hold different views. It is a difficult balance to strike, but I hope that I have been able to convey to the Committee why we believe we have the correct balance as it stands. On that basis, I hope noble Lords will not press their amendments.
Lord Fox (LD)
I asked some specific questions about the future legal structure of ARIA and the nature of who its members are. I do not think the Minister had time to answer.
Lord Callanan (Con)
I will write to the noble Lord with the legal details he requires.
Baroness Noakes (Con)
My Lords, I can probably help the noble Lord, Lord Fox. In the case of public corporations created by statute, it is quite common that they are the members. It is not usually drafted as if the board is a separate legal entity.
Baroness Noakes (Con)
No, the members. The members are executive and non-executive, as defined. They comprise the body. That is quite normal in public sector formulations. While I referred to the board when I introduced my amendments, that is not set out in legislation because they are the members. In common parlance, I was talking about the creation of the board of the agency.
I thank noble Lords for their support and their contributions to this short debate, and I welcome the noble Lord, Lord Morse, to our deliberations. I heard what the Minister had to say. He has decided that there will be four executives and therefore a minimum board size of nine, but I do not think he really engaged with the substance of my arguments on why the potential for 15—or, indeed, more because the Bill does not limit the size of the board to 15—which was a little disappointing.
When the Minister dealt with whether or not there could be payments for pensions or gratuities to non-executives, he said that the Government do not intend to do that but are going to put it in anyway. Actually, this is really old drafting, which I can point to in many old statutes, which have not been used for many years, for very good reason, and there really is no need to carry on drafting in this way.
I could go on but I am not going to answer the individual points made by the Minister in response to my speech. I hope he will go away and read more carefully the content of the debate because I think there are some issues that he did not deal with in his reply, and I will certainly read his remarks more carefully when I see them in Hansard. I anticipate returning to some of these issues on Report. In the meantime, I beg leave to withdraw my amendment.
Baroness Randerson
“(ba) a representative of the Welsh Government,(bb) a representative of the Scottish Government,(bc) a representative of the Northern Ireland Executive, and”Member’s explanatory statement
This amendment would require representation from the devolved administrations on ARIA.
Baroness Randerson (LD)
My Lords, I start by declaring an interest as chancellor of Cardiff University. Given the current climate, I think I need to make it clear that it is an unremunerated role.
The amendments in this group deal, in one way or another, with the representation within ARIA of the interests of the nations and regions of the UK. My Amendment 4 seeks to gain some clarification from the Government—it is, of course, a probing amendment —as to the purposes and modus operandi of ARIA, and to make the point that because it will operate within areas of devolved competence, it must listen to the voices of the devolved nations.
As it stands, it is difficult to get a handle on exactly how ARIA will operate. The list of things it is able to do is comprehensive. It can take an equity stake, carry out its own lab work, contract with an academic or industry team, create prototypes, market products, convene conferences, operate outside the UK—and a whole lot more. It is to be granted great freedom and there is, as noble Lords have said, an emphasis on lack of bureaucracy. It is to be ambitious and tolerant of failure.
In the debate in the other place, Greg Clark MP, chair of the Science and Technology Committee, complained that it was not clear whether the emphasis would be on “blue-sky research” or whether it would turn existing ideas into “practical applications”. Clause 2(6) says:
“ARIA must have regard to the desirability of … contributing to economic growth, or an economic benefit, in the United Kingdom”
and
“improving the quality of life in the United Kingdom (or in the United Kingdom and elsewhere)”.
These are worthy thoughts but there is no obligation to take account of the nations and regions of the UK.
The funding of ARIA directly by the UK Government impacts on devolved powers in relation to higher education and economic development. The Bill creates a new reservation in respect of research and innovation. I accept that this is not altogether new, because there is already a reservation for UKRI, and there is indeed great strength in not having research silos. Partnership is vital, both within and across the UK and internationally: partnership between universities—where most blue-sky research originates—and between universities and commercial companies, which exploit that research. To amend the Bill to spell out that there must also be partnership between the UK Government and the devolved Governments will simply strengthen ARIA.
Baroness Chapman of Darlington (Lab)
It is a pleasure to follow the noble Baroness. I have a lot of sympathy for what she says and would be very happy to support her proposal. I will speak briefly to Amendments 9, 23, 29, 33 and 34 in my name. Trying to make sure that efforts to address regional inequality run through everything the Government do is a bit of an obsession for us. We know that investment in science brings prestige to local areas and supports quality jobs when projects succeed. It is a source of immense local pride.
Amendment 4, moved by the noble Baroness, Lady Randerson, requires representation from the devolved Administrations of Wales, Scotland and Northern Ireland. I completely understand where she is coming from. We are very keen to nail down in some way through the Bill a commitment to ensure that there is representation and fairness across regions. ARIA should be mindful of regional inequality when making its decisions, including, importantly—the Minister might comment on this—where it chooses to base itself. When she sums up at the end, can the noble Baroness indicate whether she has had any discussions with the Welsh Government or in Scotland about how they feel about taking part in the way she proposes? Are they seeking to do that? Has she thought about including some of the English regional mayors, who might also have a role to play?
I can sense the Minister thinking, “Oh my goodness, what are you trying to do to my new agency?”, in involving all these people, but the point we are trying to make is that this cannot have an ivory tower attitude. It needs to take its responsibility to the prosperity of the entire UK, as all government agencies should, very seriously. One way or another, we need to do everything we can to make sure that what the Government would call levelling up runs through everything they do, including ARIA. This is not just about special projects which can be promised and then quite easily taken away; this needs to be a golden thread that runs through this agency and others.
This is not just about the north-east, although it is certainly very important for the north-east. Every region ought to expect that it will benefit from the creation of ARIA. Where I come from, in the Tees Valley, we have a particular talent for oil, gas and energy, and we are starting to specialise in renewables. The benefits of ARIA’s activity could support not just existing ventures but the development of skills in those fields.
My Amendment 9 would allow ARIA to establish committees in specific regions of the UK. I have tabled it to reflect the importance of considering the benefits to regions of ARIA’s activities. Amendment 23 adds to the list of ARIA’s functions so that, as well as
“contributing to economic growth, or an economic benefit, in the United Kingdom,”
as it says in Clause 2(6)(a), it should
“have regard to the desirability of … increasing prosperity across each region of England, Scotland, Wales and Northern Ireland”.
I do not really understand why the Minister would not want to include that.
Amendment 29 would allow the Secretary of State to stipulate that certain grants must be used to support activity in particular regions. I am aware that that would definitely fall into the category of interference from politicians but sometimes, unless we tease this out and put on the record how important these issues are to us, they can become less important and be missed.
Amendment 33 would establish an advisory board to ensure that ARIA supports the reduction of inequalities between each region and nation of the UK. The point I really to make through Amendment 34 is that ARIA should measure and report on what it is spending by region, which is not an unusual request. I accept that this does not have to be in the Bill, but I would like to know what the Minister thinks about it and whether he would be prepared to agree that ARIA should share information in this format. When the annual report is published, readers could obviously do their own analysis and work out what has been spent in which region. However, I think we have learned from reporting on gender and other issues that if something is measured and required to be reported on, it is seen as important and as a priority, and that then flows through into decision-making. I just want to test what the Minister thinks about these proposals in general, if not any of the specific amendments. This is an issue that we will want to return to on this Bill and others as well.
Viscount Stansgate (Lab)
My Lords, I rise briefly to support the noble Baroness, Lady Randerson, in her Amendment 4 and to speak to the sentiments behind my noble friend’s Amendment 23. I have discovered that, in this Committee this afternoon, there are really two ways of dealing with amendments. One is by tabling them in time and having them printed, and the other is by speaking to them having written but not tabled them. So it is my pleasure to say to the noble Baroness that I drafted several amendments about the very point that is made in Amendment 4. I drafted a range, one of which went further than that of the noble Baroness by saying that the appointments should be made by the Welsh Government, the Scottish Government and the Northern Ireland Assembly, not on their behalf.
When the Minister comes to reply, I gently suggest that the Government must not allow ARIA to be seen as some golden triangle element. It would be fatal to its prospects of success if it is seen in that way, especially if its headquarters happen to be anywhere within a line surrounding Oxford, Cambridge and London; that would be a tactical mistake. I genuinely put it to the Government that, whatever the language of the Bill, they must have some regard to the United Kingdom as a whole and allow the four nations to feel that they are fully represented and involved in its work.
Lord Broers (CB)
My Lords, I support our using our full capabilities across the regions; however, while they should all be represented, we have to be careful in trying to spread everything all over the place. I cite a specific example that has been important to British industry. In the 1960s, several people, including myself and Sir Eric Ash, who was then head of electrical engineering at UCL and went on to be rector of Imperial College, tried to co-ordinate the semiconductor industries in this country. At that time, America also had a problem as it looked like Japan was going to take the semiconductor business, run away with it and leave everybody else behind. In America, Ronald Reagan got together with industry and formed Sematech, in Texas, which sort of saved them. The industries all got together and worked.
When we tried to do it, it was too difficult, because there were efforts in Edinburgh, Southampton, London, Cambridge, Newport and Manchester. Nobody realised that we had to co-ordinate those efforts in a rather tight way that also perhaps meant putting things in one location.
At that time the Belgian Government saw the possibility and a few leaders there, Roger van Overstraeten chief among them, decided that they would have a shot at doing this in Belgium. That institute now has 4,000 people and an annual budget roughly equal to ARIA’s: €600 million. We could have done it. We had more talent at the beginning but we could not get around to facing the fact that in certain instances, proximity is very important if you want to pull off really high-technology advances. Again, this is a world issue. America has had to wake up its industry again and realise that it is not necessarily good for the world for Taiwan and South Korea to dominate; it would be a rather dangerous thing. So I think American industry is going to be reawakened.
I say a word of caution: while we want to draw from all of the regions, we may not be able to do some of the big projects spread out over the regions.
Baroness Noakes (Con)
My Lords, I will comment on Amendment 4 in the name of the noble Baroness, Lady Randerson. We must not lose sight of the fact that the board is there to contribute to the total purpose or mission of the organisation, and we need to be very clear, when looking at getting those with some relationship to the devolved Administrations, precisely why they are there. I question whether there is a devolved dimension to, for example, the focus of ARIA or determinations about particular projects. These should transcend any issues that arise at the national level.
In addition, the amendment says that there should be
“a representative of the Welsh Government”.
I believe very strongly that boards should not have representatives of anybody on them. Board members should be selected because of their contribution to the totality. Indeed, if we look at examples of boards that do have individuals nominated either by or with the consent of the devolved Administrations, those people are never ever drafted as representatives. They are usually drafted as members who are appointed in a particular way. It is really important that we do not lose sight of the fact that we are trying to create a unitary board dedicated to the mission of the organisation. I query whether there needs to be input from the devolved nations to that process because of the nature of ARIA, but even if there were, I am absolutely clear that they should not be “representatives”.
Furthermore, if we look at the size of the board, which I addressed in the previous group of amendments, if there are four executives there are likely to be five non-executives, and that includes the chairman. So there would be a chairman, four executives and three people appointed who are in some ways related to the devolved Administrations—although none, under this formulation, representing England—but none, or perhaps one, appointed for the general skills and abilities they bring to the party. I hope that noble Lords will think carefully about whether it is appropriate in this instance to act in accordance with the way the noble Baroness’s amendment is drafted.
Lord Ravensdale (CB)
My Lords, as co-chair of the Midlands Engine APPG, I am very supportive of the levelling-up agenda and have a lot of sympathy with the amendments in the name of the noble Baroness, Lady Chapman. My only concern is the additional bureaucracy inherent in looking at the regional distribution of investment.
Building on the point made by the noble Viscount, Lord Stansgate, another lesson learned from DARPA was that the headquarters of DARPA was located away from many of the main research centres of the United States, which avoided the inevitable capture of research funding by institutions in a particular area and really encouraged the take-up of ideas from all parts of the country. I thank the Minister for writing to me on this but I hope that the Government will look further at how the location of the ARIA headquarters fits into the levelling-up agenda.
Baroness Bennett of Manor Castle (GP)
My Lords, I offer Green support for the intention of all these amendments, although I agree with the noble Baroness, Lady Noakes, that “representative” is not quite the right approach. Ideally, we would see the devolved Administrations and Westminster getting together to ensure that there was representation from the nations that fitted together in terms of making a cohesive board with the right set and range of skills, and it would be a co-operative process that ensured that we had those nations involved.
I was very taken with the comment by the noble Baroness, Lady Randerson, about the “magic inner circle”. That is something that we absolutely have to break up when it comes to innovation and new thinking in the UK. Just because it seems to fit here, we need to make sure that we are drawing on not just a handful of the most well-funded and well-resourced higher education institutions but on all our higher education institutions. We also need to think about what further education institutions, of which there are many around the country, may be able to offer.
On that issue, I want to reinforce the points made by the noble Baroness, Lady Chapman, and the noble Viscount, Lord Stansgate, about where this will be based. I do not know whether the Minister will be able to do this now or possibly at some point in future, but I think the Committee would be greatly reassured if she could tell us that it will not be in the Oxford-Cambridge-London triangle but somewhere else.
Lord Browne of Ladyton (Lab)
My Lords, I want to express the hope that the Minister is going to tell the Committee that consultations have taken place with the Scottish Government, the Welsh Government and whoever the appropriate people are presently to represent the people of Northern Ireland about the issues raised by Amendment 4, and that she can satisfy the Committee that this has all been agreed. If not, I can tell her that it has the potential to be quite a serious issue in Scotland.
Lord Fox (LD)
My Lords, this has been an interesting debate. I fully associate myself with the words of my noble friend Lady Randerson. To put it plainly, we have heard around the Committee a strong feeling that the nations of the United Kingdom have to be fully engaged in this agency in some way, although, to echo the last speaker, the way in which that can be worked through is something we can all be flexible about. I think we all look forward to the debate on Amendments 37 and 40 to hear what the Government's thinking is about those.
On Amendment 9, having some eyes and ears around the regions as well as the nations is essential. Regarding most of the amendments from the noble Baroness, Lady Chapman, she is right to stress that inequality is a central issue and it should be a focus of what we do. However, I would point out that while a lot of people have mentioned London in the context of being rich and well funded, it is not just a matter of region because within a region there can be huge variation. I shall use the example of the London Borough of Tower Hamlets, which I declare I have a home in. There we have some of the richest people and some of the most deprived living a few yards apart.
The noble Lord, Lord Ravensdale, raised the issue of HQ locations. Some noble Lords may know that the European Medicines Agency was due to go into Tower Hamlets but now, for reasons they will all know, it is not. So I will mention that I am supporting the campaign by my colleague in Tower Hamlets, councillor Rabina Khan, to locate ARIA in Tower Hamlets and take the place of the European Medicines Agency. It would be a good development around there and something that I think would be very constructive.
Although I do not fully agree with the wording of the amendments from the noble Baroness, Lady Chapman, I think there is a sense in there that we need to get a hold of. How does this agency engage? How does it not become isolated in the golden triangle or somewhere else? That is the question to which we seek some response from the Minister. That is the issue we will take to Report, whether in amendments such as this or in a new version that seeks to make sure we have engagement across the whole country, national or regional.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I thank the noble Baroness, Lady Randerson, for her remarks on these amendments. Many points were raised that I agree with, including a number from the noble Baroness, Lady Chapman. I will address the different elements of this group in turn.
First, I should be clear that it is absolutely the Government’s intention that ARIA increases prosperity across England, Wales, Scotland and Northern Ireland. This is reflected in ARIA’s existing functions, which require it to have regard to contributing to economic growth or economic benefit in the UK or, for example, improving the quality of life. There is no need for specific additional powers to allow ARIA to operate regionally; the Bill as it stands already allows ARIA to do so. Addressing regional inequality is at the heart of our levelling-up agenda and innovation strategy, driving greater benefits from our R&D system to more places across the UK.
I will now address head-on the proposed location of ARIA, because there is none. No decision on the location of these offices has been taken. As a funder, the contribution the new agency makes will result from its project portfolio and funding decisions; it is not an infrastructure project. ARIA will have only a small physical presence at its headquarters, the location of which will probably not be agreed until the appointment of the chief executive officer. That may have some bearing on where it is to be located. I cannot make the commitment that it will not be based in the London-Cambridge-Oxford arc, but that is not our intention at this stage. We have a completely open mind as to its location.
Amendment 23 would impose a new duty and reporting obligations on ARIA in this regard. It is my view that these system-wide ambitions should not be the statutory responsibility of a small new agency that represents about 1% of UK R&D spending. As we have stated previously, UKRI is the public R&D funder with system-wide responsibilities. Tackling systemic issues, such as the overall regional distribution of R&D funding, falls firmly within the UKRI remit.
ARIA’s purpose is to pursue the most ambitious research and innovation projects, where the benefits are long-term and uncertain, wherever in the country they are located. ARIA should not be subject to the political priorities of the Government of the day, no matter how long-standing or important those priorities might be. I believe that seeking to quantify its economic impact in every region of the UK and submitting that for outside assessment, under the shadow of this statutory obligation, would incentivise exactly the same risk-intolerant approach that we are seeking to liberate ARIA from.
We are in danger of expecting ARIA to spread itself too thinly, against the recommendation of the Royal Society and the House of Commons Science and Technology Committee that it focus on a very limited number of programmes. ARIA cannot be expected to be active in all regions of the UK at once, so I suggest that Amendment 34 is not an appropriate obligation to place on the organisation.
We have spoken at length about the importance of providing ARIA with independence and equipping it to take risks and tolerate failure. A board appointed by the Secretary of State advising ARIA where to direct its funding represents an extraordinary level of political control over ARIA’s activities. It is completely inconsistent with the decisions on project-level spending being taken by technical experts based on a deep understanding of the relevant field and the scientific merits of the proposals.
In a similar vein, Amendment 4 looks to add a representative from each of the devolved Administrations to ARIA’s board. Ministers in Scotland, Wales and Northern Ireland are unanimous in their support for the important principle of ARIA’s independence. We have had close discussions with Ministers and officials at all levels in all three devolved Governments throughout the passage of the Bill.
We have agreed a mechanism for input with the devolved Governments which will be set out in an agreement between the four Administrations of the UK. The agreed text of this MoU will be shared before Report, but it is contingent on the government amendments we will come to discuss later. The final version signed by all parties will be published before Royal Assent. All four Administrations of the UK are committed to upholding the important principles of ARIA’s strategic autonomy, operational autonomy and minimal bureaucracy. Similarly, all are committed to facilitating ARIA’s seamless operation throughout the UK.
Baroness Randerson (LD)
I very much thank all noble Lords who have taken part in this discussion. I would say to the noble Baroness, Lady Chapman, that the Welsh Government indicated their concern at the current proposed structures—before the Government tabled their amendments—at the creation of a new reservation without mandated representation on ARIA’s governance. The Scottish Government also indicated that they are unlikely to grant a legislative consent Motion unless they have representation. Clearly, the Government have done a lot of work since these amendments were tabled. There are amendments to which I assume we will come next week, unless we work very fast this evening, and the current view of the Scottish and Welsh Governments will become clearer then.
I thank the Minister for the details she supplied. We will obviously know more about the MoU before Report. The amendments in this group have, however, enabled us to discuss an important set of issues. It is important that we do not confuse having a concern across the regions and nations with the idea that one would expect there to be growth everywhere. However, that highlights the need for this body, especially if it is a small body, not to be placed in the usual place with the usual suspects. It has a relatively modest amount of money to spend in the big scheme of things—it sounds like an awful lot of money, but in the big scheme of things, it will not transform things unless it is very well spent.
If the body is well placed and carefully placed, its location alone will bring kudos to that area. However, it is not precisely about where it is placed. It is about how it spends its money—which universities it invests its money in and which companies it establishes or invests in and where they are placed. That is very important indeed if the Government are going to fulfil their promises.
I will, of course, withdraw the amendment. I very much hope that the discussion we have had means that I will not have to bring back a version of it on Report. I agree with the noble Baroness, Lady Noakes, that “representative” is not the best term but it means that it represents an input for the devolved Administrations. That is what I was trying to indicate rather than that anyone on that body would behave as a delegated representative. With that, I will withdraw the amendment.
“(aa) produce a value for money study, and”Member’s explanatory statement
This amendment would ensure that the National Audit Office produces a value for money study of ARIA.
Baroness Chapman of Darlington (Lab)
I think this set of amendments really gets to the meat of our concerns. These amendments are all about transparency and the ability to scrutinise what ARIA does. I am pretty confident that we will return to this as the Bill progresses.
I will quickly run through the six amendments in my name in this group. Amendment 11 requires the NAO to produce
“a value for money study of ARIA.”
Since tabling this, I have spoken to the noble Lord, Lord Morse, who unfortunately has had to leave us. He says that this can be incorporated into the usual audit. Can the Minister confirm this? In that case, I would be very happy to agree that this amendment would not be necessary.
Amendment 12 would ensure that the annual report includes
“a list of all projects supported in the financial year.”
This is the least we should be asking for. I thank the Minister for providing a draft SI that would require members of ARIA to disclose any relevant interests. That is helpful and welcome, but I am not quite sure what his sending it means. I note that he said in the email accompanying it that it is for illustrative purposes, so I do not quite understand what he is saying. Will members of ARIA be required to register their interests or not? Either way, without a published list of supported projects it is not possible to tell whether any published interest—if that is what the Minister is proposing; I am not sure that is what he is saying—conflicts with a decision of ARIA. We need to be able to make sure that it does not.
Amendment 13
“would ensure that the annual report includes whether any funds have been given by ARIA to companies which list members of Parliament in their company registers.”
Given recent events, it is probably obvious to noble Lords why this amendment has been tabled. We are keen to ensure that parliamentarians do not lobby for companies in which they have an interest and which then become beneficiaries of grants from ARIA. It is very obvious why we want to do that at this point. I accept that the register could be cross-checked with the list of grants awarded but it is far more transparent and straightforward if the existence of any recorded interest could be highlighted in the report that ARIA makes itself. I assume it would be helpful to the board of ARIA too to be aware of any such interests so that it can take them into account and assure itself that the proper processes are being followed.
Amendment 14 would ensure that the annual report includes whether any funds have been given by ARIA to companies listed in the Electoral Commission’s register of donations and loans to political parties. Similarly to the last amendment, this one would help ARIA to assure itself that no lobbying or purchasing of influence could possibly have taken place.
Amendment 15 would ensure that a Minister of the Crown must make a Statement to both Houses of Parliament on its annual report. This is important because, as we said on the first group of amendments, MPs and Peers would be interested in a project supported by the public purse. Ministers should see this as an opportunity to promote the work of ARIA and to celebrate the inventions and research projects made possible by the agency. Of course, there are bound to be awkward questions—when are there not?—arising from projects that have not worked. But Ministers should not worry about that, as they can argue that the risk is built in, that Parliament has agreed and understood, that many ideas will fail, at least initially, and that we have supported that approach. We want adventurous research, but many of us want to know what is being done. That is because we are curious, supportive and interested in this area of activity, and we want a chance to discuss it.
I shall leave the noble Lord, Lord Ravensdale, to speak on his Amendment 16, but I indicate our support for that as well. Developing an environmental and social governance strategy is a really good idea and may address many of the concerns that I have had previously about regional inequality. ARIA is in any case going to have to devise a decision-making process and criteria to help it make its decisions, so an environmental and social governance strategy could be very helpful, I imagine, in teasing out a means by which ARIA can ensure maximum benefits in relation to our desire to combat climate change and reduce regional inequality. We would be very happy to support that.
Lord Ravensdale (CB)
My Lords, I shall speak to Amendment 16 in my name. I thank the noble Lord, Lord Browne, for his support with this amendment and the noble Baroness, Lady Chapman, for the support she indicated.
This amendment is closely related to the sustainability amendments that I discussed in the first group. The arguments made there on alignment of ARIA with these objectives apply, so I shall not repeat them here. It simply calls for ARIA to develop its own environmental, social and governance strategy to consider the impacts of the exercise of its functions and the projects that it funds. It is another means of embedding climate and sustainability considerations in the organisation, alongside my Amendments 1 and 26 and Amendment 21. It would allow the board of ARIA to consider its own strategy for alignment with environmental and climate goals, so it is consistent with the other amendments.
Embedding sustainability goals in the governance structures of organisations is increasingly important to ensure that organisations consider the impact of their operations and set clear and measurable goals. That ties into a point that I made earlier about considering environment and net zero as a system: there is a need to embed climate considerations across all companies and all public bodies to ensure that our overall goals are met.
ESG strategies are increasingly common across public and private companies, as noble Lords will be aware. I note that other government-created bodies are developing ESG strategies. For example, the Financial Conduct Authority has recently published an ESG strategy, and the national infrastructure bank has a requirement to develop an ESG strategy in its framework documents. Bringing ARIA in line with other government organisations would again ensure consistency and its playing its part in the principal strategic goal of the nation.
Lord Browne of Ladyton (Lab)
My Lords, I shall talk to Amendment 16, which I am hopeful that the Minister will tell us is unnecessary. I also strongly support my noble friend Lady Chapman in the amendments she has tabled, and I shall speak to that shortly.
I support Amendment 16 simply because, in today’s global arena, setting an environmental, social and governance strategy is seen as an important benchmark for how responsible organisations operate. This will be a responsible organisation and should comply with the norm that is increasingly being imposed on all organisations that operate in the economic environment.
Lord Lansley (Con)
The noble Lord was chastising the Explanatory Notes earlier for not explaining. On this occasion, I think the Explanatory Notes explain that the purpose of paragraph 11 of Schedule 3 is to exclude ARIA from the application of the Public Contracts Regulations. It does not include them.
Lord Browne of Ladyton (Lab)
I apologise for wasting the Grand Committee’s time. I go back to the simple argument I made in relation to Amendment 16; in today’s global arena, setting an environmental, social and governance strategy is seen as an important benchmark of how a responsible organisation operates. This will be a responsible organisation, so it should therefore have that obligation. I do not understand why it should be excluded from passing that obligation on to people to whom it gives public money.
Viscount Stansgate (Lab)
My Lords, I support my noble friend Lady Chapman’s Amendment 11 in particular, as well as others such as Amendment 15.
On value for money, I would like the Grand Committee to imagine the circumstances in 2026 when there is a massive row about something that ARIA has done, the chair of the Public Accounts Committee holds an evidence session and the National Audit Office is brought in, as it would be, to look at what went wrong. I am drawn to refer to this potential future situation because of advice that the NAO itself gave to the Select Committee in the House of Commons when it was first considering what, by the way, the Government then called ARPA.
I shall refer briefly to some of the areas that the National Audit Office says it would consider when it comes to considering the value for money in an organisation like ARIA. Its briefing says:
“Based on our experience, we would normally look for … a clear statement of the ultimate policy objectives – readily understandable to those charged with running the organisation and to those holding the organisation to account … a statement of what success will look like into the future – short, medium and longer term – which is particularly important for programmes where ultimate success may take years to realise … a roadmap which sets out the steps to deliver success along with a realistic assessment of the resources required and their timing – our work frequently points to a risk of optimism bias at the start of new programmes … a clear agreed sense of how risk should be managed, including the organisation’s and sponsoring department’s appetite to tolerate failure in pursuit of the objectives; and … an agreed approach to considering progress towards meeting the objectives.”
My point in raising this is to ask the Minister whether he will make some comment in his reply on the role of the National Audit Office in the running of ARIA and whether indeed it is expected to produce a value-for-money report.
Baroness Noakes (Con)
My Lords, I can probably help the noble Viscount. It is a shame that the noble Lord, Lord Morse, has not stayed with us. I think what I am about to say was referred to in the opening remarks of the noble Baroness, Lady Chapman.
Because the Comptroller and Auditor-General is specified as the person to examine, certify and report on the statement of accounts, the National Audit Act 1983 gives the Comptroller and Auditor-General the power to do value-for-money audits in the way that the National Audit Office does for all government and public departments. The power therefore already exists and there is no need for Amendment 11, as I think the noble Baroness herself conceded; it is simply not an issue. A power for the Comptroller and Auditor-General to carry out a value-for-money audit will exist and the audit will be carried out in the normal way that the National Audit Office undertakes its value-for-money audits.
Lord Fox (LD)
Again, this is an interesting group of amendments, and the noble Baroness, Lady Chapman, and the noble Lord, Lord Ravensdale, should be congratulated on tabling them. Bearing in mind what the noble Baroness, Lady Noakes, has just said, I was already planning to focus on Amendments 12, 13 and 14 and not to talk to Amendment 11, and that is probably a good idea.
However, I say to the noble Lord, Lord Browne, that I do not think his work was wasted because one way or another he has managed to uncover the fact that the Government have decided deliberately to exclude this requirement that they expect every other central government purchase to meet. The Minister has a serious question to answer as to why that is being left out.
Amendments 12, 13 and 14 cover an important issue. I do not think we need to underline, after the week or 10 days that we have just had, why it is in the interests of ARIA itself for it to be seen that there is no conflict and there are no issues around where the money is being spent. In a sense, these amendments or versions of them, will help ARIA in its own housekeeping. Of course, the Electoral Commission will register donors. As the noble Baroness, Lady Chapman says, we then need a list of all the companies and then to go to Companies House to find out who is registered as being in control of those companies. Making it easier also makes it clearer to the ARIA administration what it is dealing with.
I go back to the statutory instrument that we are not debating today, which talks about conflict of interest—so it is clearly relevant. It says that a member of ARIA must disclose any “relevant interests” promptly on appointment. The trouble with that is that I do not think that many people can consider their donations to be a relevant interest, but they are relevant with respect to an organisation of this nature. So something clearer needs to be spelled out, either in the statutory instrument or in the primary legislation. I would prefer it to be in the primary legislation.
When that is done, in listing the companies that are being supported, I suspect that the Minister is going to stand up, in the same way as he is going to stand up when we debate the freedom of information stuff, and say, “This work needs to be kept under wraps and kept secret”. There is a balance to run on this, and if there is an issue we need to find a third-party agency to scrutinise it on behalf of Parliament. But to hide specifically through national security or proprietorial security is wrong, because in that darkness—even if abuses are not happening—the perception of abuse will happen, which will harm ARIA before it even starts.
Lord Broers (CB)
I have just a word of disagreement on some of this. Short-termism has been our problem; we must keep the timescales long enough. If you keep pulling the plant up and looking at the roots, it will not grow. On the other hand, one thing that we should practise from the beginning is what is in Amendment 16 from the noble Lord, Lord Ravensdale. The one thing that technologists have made a mistake on in the last decade or two is not to bring social scientists in early, to really look at the implications of what their technology will do. I strongly support that amendment, but I have severe reservations about the others.
Lord Callanan (Con)
I thank noble Lords who have contributed. These amendments relate to ARIA’s annual report and to other information to be provided to Parliament. As set out in Schedule 1, ARIA’s accounts must be prepared annually, alongside an annual report, which it will send to the Secretary of State, who must lay the report in Parliament.
Addressing Amendment 11 first, I am happy to assure the noble Baroness that ARIA will be audited by the National Audit Office—and I reassure the noble Viscount, Lord Stansgate, on that as well. The point was also well made by my noble friend Lady Noakes that the National Audit Office will be able to conduct value-for-money examinations of ARIA; the National Audit Office never shows any reticence to do precisely that. Indeed, it is able to do that as per the National Audit Act 1983 in the usual way, and the same controls apply to many other public organisations. As some of my spending schemes, within my responsibility, have been subject to National Audit Office examinations, I can assure noble Lords that it is extremely rigorous, as indeed it should be.
Other amendments relate to the specific contents of ARIA’s annual report. I agree on the importance of robust transparency and reporting arrangements in this regard. That is why ARIA’s annual report will align with the Government Financial Reporting Manual, which, for example, could require ARIA to publish information on its aims and achievements, performance, organisational structure, corporate governance and accountability.
On the list of projects that was asked for in Amendment 12 by the noble Baroness, Lady Chapman, publishing a list of delivery partners is not one, in my view, for primary legislation. The details of the annual report will be part of the framework document and, of course, the annual accounts will provide details of exactly where ARIA spends its money.
Baroness Chapman of Darlington (Lab)
I thank the Minister for what he said, but if he thinks that this is some short-lived political campaign on my part, he is mistaken. The issues of the potential for conflict of interest and the need to protect ARIA from accusations of cronyism were raised in the other place before the Summer Recess and they are certainly not a reaction to the current crisis in which the Government find themselves, but we cannot pretend that that is not happening. I fear that the Government have not shown themselves in the best light this in recent days or weeks, and we feel that these protections are needed for the benefit of ARIA. This is not about making a political point or having a go at the Minister or the Government at all; it is about protecting something that we all sincerely hope works and changes lives in this country. That is what we are about here. If I thought that the assurances that the Minister just gave were sufficient, I would certainly be happy not to return to this. Of course, I withdraw the amendment for today, but we will be coming back to this.
Baroness Noakes
Baroness Noakes (Con)
My Lords, I beg to move Amendment 17 and shall speak also to Amendment 20 in this group. These are probing amendments designed to explore the extent of the powers given to ARIA by virtue of paragraph 17 of Schedule 1. Sub-paragraph (1) of paragraph 17 says that ARIA can pretty well do what it likes, and this is expanded by some particular powers in sub-paragraph (2). The two I have focused on in my amendment are sub-paragraph (2)(a), which says that ARIA may borrow money, and sub-paragraph (2)(d), which allows ARIA to form and participate in partnerships and joint ventures.
My concern is that these powers will be used to create liabilities for the state and hence, ultimately, for taxpayers, beyond the resources that we were led to believe would be devoted to ARIA. As I remarked on Second Reading, there is a world of difference between placing a bet of £500 million or £800 million and underwriting someone else’s credit card. In the former case, there is the hope of winning very much more than the initial £500 million or £800 million, although, obviously, the possibility of losing the lot. In the latter case, there is the possibility of an unlimited amount of additional money being needed if the funds raised by the borrower failed to produce any return.
ARIA will be a public sector body in every sense of the term. It gets its money from the Treasury, it is subject to public sector audit and accountability arrangements and its key personnel are appointed by and paid in accordance with the directions of the Secretary of State. It is always accepted that the state stands behind public sector bodies. That has been the case for as long as I can remember. If they fail, their liabilities are underwritten by the state. That is why there is usually a raft of controls placed on those bodies, including restrictions on the power to borrow money. The Treasury has an obvious interest in ensuring that public sector bodies do not create uncontrolled demands on public finances and, as a public sector body, ARIA’s borrowing will, I believe, automatically score as public sector borrowing. Will the Treasury really allow that to happen without controls?
I have focused on the borrowing power in sub-paragraph (2)(a), but my comments apply also to the ability to participate in partnerships and joint ventures, which are often structured in a way that means liabilities can be left with one of the parties to the venture. Private-sector counterparties would be queueing up to enter into arrangements which could possibly leave the state with the requirement to pick up the bill for failure. Similar dangers also apply in relation to companies which are allowed to be formed under sub-paragraph (2)(e), but I failed to table its deletion for today’s debate. I am not against partnerships, companies or joint ventures; they all have a part to play in working with private sector organisations. What I am against is the ability of ARIA to enter into arrangements that impose potential financial burdens on government finances without any controls or consents being required.
As it stands, Schedule 1 might allow some ex post interventions once the Secretary of State became aware of things that cause financial concerns beyond the initial amounts of money committed to ARIA—£500 million by the end of this Parliament—but the main tool he has is an extremely blunt instrument because it is related to replacing the members of the board. Even here he is restricted, as under paragraph 6(3) he can sack non-executive members of the board on any grounds he “considers appropriate” but, to get rid of an executive member, his power under paragraph 5(2) is restricted to grounds of “national security”. The real villains are more likely to be the executives than the non-executives, but the Secretary of State’s powers to deal with those individuals are, perversely, concentrated on the non-executives.
The notes given to noble Lords on this side of the Committee for today’s groupings said that my amendments would limit ARIA’s novel funding mechanisms. That gives an insight into what these powers are about. They are positively designed to allow ARIA to go beyond the resource envelope that has been announced for it. Calling funding “novel” might sound progressive, innovative and all those good things that ARIA is said to be focused on, but to those of us who have been around financing for rather a long time, it just sounds like another way of doing things to get around rules and restrictions. That would be okay if there were not ultimately recourse to public funds, but the Bill does not require borrowing to be on a non-recourse basis. It leaves public finances at risk to an unspecified degree.
I look forward to hearing from my noble friend how she thinks this very real risk will be managed in practice and how the Government have concluded that ARIA’s powers are compatible with sound public finances. I beg to move.
Baroness Chapman of Darlington (Lab)
My Lords, I support the noble Baroness, Lady Noakes. I had not had the pleasure of hearing from her at such length as we have today, and I am very impressed by her contributions. The issue of borrowing money is a concern. There is clearly the potential for financial risk but also significant reputational risk when a level of borrowing might emerge that may seem unduly risky. I am concerned about that and interested in what the Minister will say to prevent that concern doing any damage to ARIA.
Lord Fox (LD)
My Lords, rarely have I got to the end of a speech by the noble Baroness, Lady Noakes, and been crying out for more. On her second amendment, I wanted to know what she had against partnerships and joint ventures. I do not think there was a clear under -standing as to why that is a particular concern, given that many research processes go ahead collaboratively as joint ventures, partnerships or co-projects. I am interested to know, because I am sure there is a good reason; I just do not know what it is. While we are talking about that amendment, I would be pleased if the Minister could confirm that, whatever relationship ARIA is putting together, the National Security and Investment Act applies. I assume that to be the case.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, these amendments relate to ARIA’s supplementary funding powers—its ability to borrow and form and participate in partnerships and joint ventures. I will begin by clarifying some of the controls and rules that would govern ARIA exercising these powers and I hope I can find enough reassurance for my noble friend Lady Noakes here. She always starts a debate with a great deal of knowledge, so we always pay attention.
ARIA could only ever make use of a financial mechanism, such as borrowing, for the purpose of exercising its functions—to conduct scientific research and exploit and advance scientific knowledge. Any such activity would also be subject to conditions attached to grant funding provided by the Secretary of State under Clause 4. Any borrowing would also meet the stringent requirements and controls of HMT’s Managing Public Money, which sets conditions to ensure value for money. It would be agreed with Her Majesty’s Treasury in advance. This is part of a suite of non-legislative controls that exist on borrowing.
I also highlight that UKRI has the power to borrow. Mirroring that approach, it is reasonable for ARIA to have this full financial toolkit, as it may be appropriate for it to use in certain future circumstances. For example, one possible scenario in which borrowing may be useful would be if ARIA were to own a controlling stake in a subsidiary, which while partially government owned, aims to act with autonomy. Such an entity may want to borrow if purchasing a large capital asset, in order to resolve cash flow issues if an upfront payment were required.
On ARIA’s power to participate in partnerships and joint ventures, using this power ARIA could take an equity stake in a company forming around a new technology. This could provide a clear benefit in cases where the company is creating assets of strategic importance to the UK. On this point, I reassure the noble Lord, Lord Fox, that the National Security and Investment Act does indeed apply to all ARIA’s activities.
In another scenario, ARIA’s taking an equity stake in a company may help to crowd-in private sector interest, bringing in greater funding totals, lowering financial exposure and creating a clear pathway for the commercialisation of a technology. It is fundamental to the design of ARIA that it is able to innovate with different methods of funding high-risk research.
As I have made clear, appropriate checks are in place to ensure the Government can agree the details of any future borrowing activity, and the ability to engage in joint ventures will be an integral feature of ARIA’s full financial toolkit. I therefore see no reason the mechanisms available to ARIA should be limited through the Bill and I ask the noble Baroness to withdraw her amendment.
Baroness Noakes (Con)
My Lords, I thank all noble Lords who have taken part in the debate. I particularly thank the noble Baroness, Lady Chapman, not only for her kind words but for pointing out the reputational risk in addition to the financial risk. As an accountant, I tend to think of financial risk before anything else.
I should say to the noble Lord, Lord Fox, that I did not say that I was against joint ventures and partnerships; I said that they were fine and that it was just a question of the degree to which, through those mechanisms, additional liabilities could be taken on that would then end up on the public sector balance sheet. Often joint ventures and partnerships are structured in such a way that, through those vehicles, access to additional borrowing of various kinds, or quasi-borrowing, can then end up coming back. Those are the reasons why I was probing in relation to joint ventures and partnerships. I accept that in many types of arrangement they are a natural way to do business in this area.
I thank my noble friend the Minister for what she said. I think she said that conditions could be attached to grant funding—indeed, there is a sentence on that in the Explanatory Notes for whatever clause relates to grant funding, which I cannot remember at the moment—but no other details were provided on how that works. Is that prospective? Is it done every time that money is paid over? I do not understand how it will work. Once ARIA has got hold of the money and does not need any more grant funding at that point in time, what powers do the Government have over its further borrowing after that?
My noble friend also talked about managing public money. I do not have an encyclopaedic knowledge of that, but from memory I could not see how that related to the issue I was really raising—whether you can borrow money without Treasury consent, which is what is implied by the statute, with it ending up on the public balance sheet.
Baroness Bloomfield of Hinton Waldrist (Con)
Perhaps I could come back on that point. Any borrowing will be agreed with HMT in advance and will comply with the terms of managing public money, which requires that public sector organisations may borrow from the private sector only if the transaction delivers better value for money for the Exchequer as a whole.
Baroness Noakes (Con)
I think I understand what my noble friend is saying. It is then about seeing how managing public money bites on ARIA, which has an unconstrained power to borrow. I would like to think about that further, and perhaps my noble friend could explain alongside that how conditions attaching to grant funding work in practice. Who says what to whom, and when? Perhaps then I can understand the mechanics of that. I am sure that, if the Government have thought this through, she will be able to give me a comprehensive answer on how we are not letting ARIA go out into the world and bust the public sector borrowing requirement—even more than it is already bust. I beg leave to withdraw the amendment.
Lord Lansley
Lord Lansley (Con)
This group consists entirely of amendments in my name. Very helpfully, they have been grouped together so you do not have to hear from me too often. Helpfully, it also groups together amendments which, from my point of view, are about the way in which ARIA acquires, creates, disposes of, retains and shares intellectual property. That is what we are really on about in this group.
Amendment 18 is the simplest and least interesting of them. It bears on this same area of the Bill and the question of the supplementary powers. In Paragraph 17(2)(b), where the power is given to
“acquire and dispose of land”,
the amendment would add the words “and other property”. I may be told that it is unnecessary, but I am not quite sure that I understand why, and why land is referred to while other property is not. Very often in legislation, “land and other property” is referred to.
Amendment 19 is in the same part of the Bill. It adds a further provision, concerning the powers that ARIA would have in connection with the exercise of its functions, for it to be able to
“acquire and license intellectual property”.
Maybe it has the power to do that, but I am not quite sure why other things are referred to as being supplementary powers and why the acquisition and licensing of intellectual property should not be referenced here. The purpose of my amendments generally is to try to give ARIA as much flexibility as possible in the way in which it acquires and uses its intellectual property. This amendment would say that it has the power to acquire and license, so licensing would be a specific power that it was able to exercise.
Amendment 22 gets us back out of the schedule and on to page 2. This is the point at which, under Clause 2, ARIA may attach conditions to the financial support that it gives—so imagine the relationship between ARIA and researchers, institutes, bodies, companies or whoever. Some conditions are referenced in Clause 2(4) about financial support being repaid, property being restored or information being provided. In Amendment 22 I propose that we want to make it clear that intellectual property forms part of those conditions and that it may be held by ARIA itself under those conditions or shared with the beneficiaries of support, obviously in ways that it chooses. From my point of view, ARIA wants to be able to hold on to intellectual property in some circumstances; it definitely wants to be able to share it with the beneficiaries of support in others.
In this context, the beneficiaries of support could include researchers who themselves become part of ARIA for a time. As I mentioned at Second Reading, one of the most notable characteristics of the Laboratory of Molecular Biology, which used to be in my constituency, was that its researchers were able to generate, from very basic research, some applications that had substantial intellectual property value. For example, Greg Winter was at the Laboratory of Molecular Biology and made discoveries that led to monoclonal antibodies. If I remember correctly, he left LMB to form companies and exploit that, and then subsequently came back to LMB to do more research.
This is the kind of interchange that I suspect we want ARIA to be able to undertake. We want it to be able to bring people in and say, “We are going to share intellectual property with you. You will be able to exploit it and we will be able to exploit it. We can set up whatever arrangements are necessary in order to do this.” Amendment 22 would explicitly allow ARIA to enter into those sorts of arrangements with those who are the beneficiaries of its financial support and indeed those who are working directly for it as short-term researchers. The nature of the programme managers and researchers will generally be fixed term and quite short term.
Amendment 28 is in a slightly different part of the Bill—the part that the noble Lord, Lord Browne, was talking about earlier, concerning grants made by the Secretary of State to ARIA itself and the conditions that may be applied. I am suggesting that there should be conditions, but conditions that in this case allow the Secretary of State, having made grants to ARIA, to allow the agency, having acquired intellectual property and value out of that research, to retain and reinvest it. That is a potentially not insignificant provision. On some occasions, for example, the LMB was generating more by way of revenue back to the Medical Research Council than the Medical Research Council was giving it in grants. DARPA in America, if I understand correctly, was investing in messenger RNA for vaccine production from 2013 and that has led to Moderna, which has valuations in the tens of billions of dollars.
Lord Broers (CB)
My Lords, I compliment the noble Lord, Lord Lansley, on a lot of penetrating understanding of how ARIA will work. It will all be a matter of working with others and IP from others. Far more will come into ARIA than it will generate itself. It is all a matter of doing these deals. When DARPA was working on GPS, it needed technologies from everywhere; its genius was in pulling them all in, doing the deals and getting the whole thing co-ordinated and working. It was exactly the same with the internet and the vaccine. It is all to do with interacting with intellectual property. In the generation of intellectual property, leaving the benefits of it with the creators is what drives and motivates them to do it. I agree on the need to really think through the intellectual property relationships that ARIA will have with others.
Viscount Stansgate (Lab)
My Lords, may I ask the noble Lord a question, to be absolutely clear about his Amendment 22? Let us say that ARIA comes up with a fantastic invention. Would his amendment enable ARIA to vest the intellectual property of that invention, which might be worth millions, both in itself and in the researcher or researchers who were personally involved in discovering it?
Lord Lansley (Con)
The purpose of Amendment 22 —this is in the part of the Bill about what conditions ARIA might attach to its financial support—is to give ARIA the flexibility to attach whatever conditions it wishes. In some cases, it might give financial support and not seek to retain intellectual property, or it may enter into an arrangement which says that it retains all the intellectual property, or somewhere in between. However, that is for the circumstances of the individual project rather than something mandated in legislation.
Lord Fox (LD)
My Lords, the more I look at this and listen to the wisdom of the noble Lord, Lord Lansley, and, previously, the noble Baroness, Lady Noakes, the more curious paragraph 17(2) of Schedule 1 becomes, because of both what is in it and what is not. I am prepared to accept the thesis of the noble Lord, Lord Lansley, that “and other property” would add some copper plating to it.
I hark back to the end of the response of the noble Lord, Lord Callanan, at Second Reading, where I popped up and asked a question about property. The Minister was clear that this would include ARIA purchasing pieces of research equipment. Research equipment can run to many tens, if not hundreds, of thousands of pounds—at least as much as property—yet, somehow, that does not appear to be on this list either. There is perhaps work to be done to understand the objective of this list. I am sure that the Minister will say that it is to afford ARIA the amount of freedom that it needs, but it seems to be quite a selective list, and I wonder what it was based on in the first place.
I turn to the other amendments before us and suggest that perhaps the most important is Amendment 28. It is a great shame that, because of a prior appointment, my noble friend Lord Clement-Jones was not able to be here for this section at least because, when it comes to intellectual property, most of us know that he has a strong expertise. I know that he will read very closely the Hansard report of this and, far from marking the homework of the noble Lord, Lord Lansley, I am sure that it will be the Minister’s homework that he will be marking. I hope that we can return to it.
Looking at Amendment 28, it seems eminently sensible to legislate for success, because we want this to succeed. If this succeeds, there should be a flow of revenue coming back into ARIA. We need to understand that this will not then become a cash cow for other parts of BEIS or indeed the Treasury. What this amendment therefore seeks to do—and, I think, would achieve—is to put that ring-fence in place; for that, the noble Lord, Lord Lansley, should be congratulated.
Lord Browne of Ladyton (Lab)
My Lords, for the second time today I am grateful to the noble Lord, Lord Lansley—the first was for saving me before the Minister had to expose my misunderstanding of a part of the Bill. He revealed, as the noble Lord, Lord Fox, pointed out, an even more fruitful argument for later in the consideration of this Bill, which I will look at more carefully.
I am grateful to the noble Lord for drawing my attention to the specific provisions of paragraph 17 of Schedule 1. When I read it, I honestly do not understand the purpose of paragraph 17(2) at all, unless these powers are not included in what is I think the most expansive and limitless description of powers that I have ever seen anywhere. In paragraph 17(1), ARIA is given powers to do
“anything which appears to it to be necessary or expedient for the purpose of, or in connection with, the exercise of its functions.”
There does not seem to be any point in trying to list anything. I tried to see if there was anything in common with these particular powers that required them to be expressly described, and I may find out that that is right when the Minister responds.
I am also grateful to the noble Lord for opening up this issue of intellectual property, because it was my concerns about where the intellectual property may end up that caused me to table Amendment 30. It is against the recent experience of practice that has developed in this country of businesses with intellectual property that has been developed by public funds disappearing off, principally into the United States; this is sometimes because a business is stripped apart and the prize piece is taken out because it is of greater value in another marketplace than it is in ours.
This is an issue on which I hope to have an opportunity to expand when we get to Amendment 30, which is causing great concern to the Bank of England about its effect on the economy of the United Kingdom. I am sure we will get an opportunity to debate that next time we meet in Committee. I have nothing further to add, but I am grateful to the noble Lord, Lord Lansley, including for encouraging the noble Lord, Lord Broers, to explain why the freedom of intellectual property management is crucial to getting the best of ARIA.
Baroness Bloomfield of Hinton Waldrist (Con)
I turn to a series of amendments that relate to ARIA’s intellectual property arrangements. I am particularly grateful for the contribution of the noble Lord, Lord Broers. With all his wealth of experience, he has added much to the debate.
Turning first to Amendments 18 and 19 from my noble friend, I point out that in exercising its functions, there is already provision for ARIA to acquire and own physical property and intangible property, such as intellectual property. In compliance with its functions, ARIA can own property as it is a statutory corporation with its own legal personality. Paragraph 17(2) of Schedule 1 is not exhaustive, and therefore covers property and intellectual property as a subcategory of property. I hope that my noble friend will understand that I cannot accept this amendment, as it duplicates what is already provided in Clause 2.
Moving on to Amendment 22, I recognise the sentiment of this amendment, and I reassure my noble friend that ARIA will have the freedom to choose whether to retain or share its intellectual property rights. We recognise that ARIA’s intellectual property arrangements will need to be flexible, as they will vary depending on the research area, the amount of involvement of partnering institutions, such as business and academia, and the stage of technological development. ARIA will also have to agree bespoke intellectual property clauses tailored to the specifics of individual programmes and projects, given that commercial value is also likely to vary across ARIA’s portfolio. An amendment here is not necessary, as Clause 2(2)(c) already makes provision for ARIA to make available rights to, or license, its property, including intellectual property. I hope that I have managed to assuage my noble friend’s interest in the flexibility of ARIA’s intellectual property arrangements.
The noble Lord, Lord Fox, asked about the acquisition of pieces of research equipment. ARIA will have the ability to do its own research if needed, it will have scientists and experts working for it and it might sometimes be simpler for ARIA to conduct research directly if needed.
The noble Lord, Lord Browne, also expressed reservations about what ARIA could do. I should point out that ARIA is a statutory corporation. It will only ever act in compliance with its functions and powers and, as a consequence, the powers must, in general, be available.
Turning finally to Amendment 28, which relates to ARIA’s ability to retain income generated through the exploitation of intellectual property, I can assure my noble friend that I firmly agree on the intention behind this amendment. The ability for ARIA to retain income from its activities is subject to ongoing discussions with HM Treasury, and will be agreed to in compliance with the Government’s consolidated budgeting guidance. The detail of arrangements will be finalised as part of the funding delegation letter between BEIS and ARIA. It is therefore not appropriate for this to be placed in legislation. I hope that I have managed to assuage his concerns on those two important amendments, and ask him not to press them.
Lord Fox (LD)
On Second Reading, the noble Lord, Lord Callanan, said that “It”—ie ARIA—
“can fund the purchase of a piece of research equipment, which ARIA then owns, and it can loan it out on the condition that it is then returned within a specific timeframe.”—[Official Report, 2/11/21; col.1204.]
So essentially, it becomes an equipment lending library. That is not exactly what the Minister has just said. Are the two things both true, is only one of them true, or what?
Lord Lansley (Con)
I am grateful to my noble friend, particularly because, as far as I can tell, we are all agreed that ARIA should have the flexibility to do these things. Where we not quite all in the same place yet is that it seems to me that the legislation can make that clear and it would be helpful if it did. Maybe we will come back to it and my noble friend will enlighten me. She seemed to say that in paragraph 17 of Schedule 1 the reference to property encompasses intangible and intellectual property but the word “property” is not there. That is my point. The word “property” needs to be there in order for intangible and intellectual property to be encompassed within it.
There are circumstances—for example, where the Secretary of State makes grants to ARIA and where ARIA provides financial support—where my noble friend seems to be saying that it will have the flexibility to enter into all these agreements, to share its intellectual property, to secure the benefits and retain them and reinvest them but that does not need to be in the Bill. Yet, we have these places where there are little lists of what the conditions might be like or what the provision might include. They may be non-exhaustive lists but the only things that seem to be listed are things that constrain ARIA, rather than making it clear that intellectual property, which is at the heart of its activity, is something where it should absolutely have this kind of flexibility.
I know the Treasury would hate to have it in the Bill that ARIA can retain intellectual property revenues and reinvest them for its purposes but that is exactly why we should put it in the Bill. I think we will return to this issue. I gladly give way to my noble friend.
Baroness Bloomfield of Hinton Waldrist (Con)
I reassure my noble friend that paragraph 17 is not an exhaustive list. ARIA can develop and exploit scientific knowledge and this covers it getting a patent, under Clause 2(1)(b). The supplementary powers in paragraph 17(1) of Schedule 1 allow acquisition and disposal of property including intellectual property—
Baroness Bloomfield of Hinton Waldrist (Con)
We will take this point away and clarify it.
Lord Browne of Ladyton (Lab)
I may have misinterpreted something earlier, but I do not think I have misinterpreted this. Paragraph 17(1) allows ARIA to do anything as long as it meets the test. It is judge and jury of its own testing. It allows it to do anything. What I do not understand is why there is a list below it because the list is just confusing. It misleads people into thinking that unless it is on the list ARIA cannot do it. It can do anything, almost, as long as it meets the test.
Baroness Bloomfield of Hinton Waldrist (Con)
I think, given the concerns raised, we will take it back and discuss this in the department.
Baroness Noakes (Con)
Can I ask my noble friend the Minister to ensure that when she comes back she explains the relationship between paragraph 17 in Schedule 1 and Clause 2, which sets up ARIA’s functions but seems to go beyond functions into things it can do? Paragraph 17 then comes and says again the things it can do. I find that confusing and that confusion may be shared by other noble Lords.
Lord Lansley (Con)
I am grateful to my noble friend. We are going to return to some of these issues and I beg leave to withdraw the amendment.
Advanced Research and Invention Agency Bill
Monday 22nd November 2021
(3 years ago)
Grand CommitteeRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 24-II Marshalled list for Grand Committee - (18 Nov 2021)
“(d) support the UK Government’s obligations under the Climate Change Act 2008.”Member’s explanatory statement
This amendment would require ARIA to have regard to climate change by ensuring that ARIA had an obligation to support the Climate Change Act 2008 and the obligations flowing from that Act.
Lord Clement-Jones (LD)
My Lords, since nobody else is speaking and I had prepared a response to the noble Viscount, Lord Stansgate, I might as well briefly respond. I was going to say—indeed, I am saying—that this is a slightly random collection of amendments to say the least. As the noble Lord is not here, I can perhaps adopt a slightly more doubtful tone. As my noble friend Lord Oates made plain in the very good debate on Amendment 1:
“If the purpose of DARPA was to protect the national security of the United States by retaining its scientific edge against the threat of the Soviet Union, today, the threat from climate change, although very different, is some orders of magnitude greater.”—[Official Report, 17/11/21; col. GC 86.]
He went on to say that he agreed that it should be part of ARIA’s objectives. I very much agree with him.
On Amendment 26A, many of us asked this question at Second Reading; indeed, that is why we have tabled, and will be discussing, Amendment 47 regarding the framework for ARIA. It is extraordinary that we do not yet know what the arrangements will be with UKRI, research bodies and so forth, particularly in view of what the Minister said last week in Committee:
“UKRI has a broad portfolio of projects that it funds to tackle climate change across 12 different areas”.—[Official Report, 17/11/21; col. GC 96.]
He set out what all those areas are, but the risk of overlap seems considerable. Therefore, it seems important that we get to know what the relationships are between ARIA and other research bodies.
I am rather lukewarm about the renaming of ARIA. The noble Lord, Lord Ravensdale, quoted the Science and Technology Committee saying that ARIA was a
“brand in search of a product”.
The problem is not the brand; we want to look under the bonnet and see what it is actually going to do. The name is not what many of us are concerned about.
Baroness Chapman of Darlington (Lab)
My Lords, in the absence of my noble friend Lord Stansgate, I should say a couple of words about his amendments. We tackled the issue of climate in some depth when we met last week; I thought that it was a useful discussion. On the name, I think that he was trying to get at why the change had been proposed. Perhaps the Minister, when he responds, can talk us through the Government’s thinking. I do not think that it amounts to a hill of beans, but it was something that my noble friend wanted to explore, to find out what was behind the change of thinking.
Lord Willetts (Con)
My Lords, I will be brief and will refer particularly to Amendment 26A. I repeat that I am a member of the board of UKRI and so have a particular interest in this. The more the Minister can say about ARIA alongside UKRI, the better—it would be very helpful. I do not mind if there is overlap; I am not a purist on this. Indeed, some overlap may be an inevitable result of having ARIA and UKRI. In fact, I would prefer overlap to the alternatives, which are either that UKRI is seen to be unable to do high-risk, high-reward research or that it is somehow seen as second best to ARIA. I hope that the Minister will assure us that UKRI will be able to carry on doing the wide range of activities that it does—including through Innovate UK, in particular—with the application and successful commercialisation of technologies. I see ARIA as supplementing that rather than displacing it, so anything that the Minister can say about that relationship here or in answer to subsequent amendments would be very helpful.
Lord Broers (CB)
My Lords, my hope for ARIA was that it would look a bit like ARPA. ARPA is not a blue-sky, high-risk research operation; it is a project agency that takes challenges and builds systems to meet them. I think that this is essentially very different. It is not an invention agency and that is the reason behind this consideration. Whether it matters what the name is, I am not sure. ARIA has a nice sort of ring to it. After all, to call it ARPA would mean that we are copying the Americans, which is probably insufferable.
Lord Vaizey of Didcot (Con)
My Lords, I speak as an American citizen, although luckily I do not earn enough money for it to be a problem in terms of the dual-tax system, but I digress. I like the acronym ARIA. I think that it suits the operatic nature of this project. I apologise for not being present at the Second Reading of this important Bill and thank noble Lords for indulging me in allowing me to speak to this amendment, which I think goes to the heart of what the Government are thinking about how the ARIA experiment—if I can put it that way—will work.
ARIA is clearly modelled on ARPA and it is worth reminding ourselves that the ARPA model, which was created in 1958, has taken on a mythical status in terms of its success. It is a mistake to think that it is there simply to fund novel missiles or defence projects; it has a huge civilian impact. For example, it supervises a contest every year to take forward the ability of self-driving cars and, as I am sure many noble Lords are aware, it was a Marine colonel challenging pharmaceutical companies to take forward mRNA research into a practical project before Covid that meant that the world was better prepared when Covid struck. It is important to see what ARIA is capable of doing and I echo what the noble Lord said earlier: it is a project agency engaged, in theory—without wishing to sound contradictory—with projects that will have an impact in the real world, rather than basic research.
The reason I want to speak to this amendment is that I share what I think is an undercurrent of concern about how the ARIA model will fit in with the wider research landscape of the UK. I have to say that, when I was a Minister with my noble friend Lord Willetts, there was—it was certainly not our fault—a proliferation of different agencies that sprang up during our time in government. Many of them had extremely good intentions, such as the Turing Institute and so on. But I have lost count of how many organisations were created in the 2010s and, as I have said to the Minister before, I think that the time has come for the Government to have a proper review of all the agencies that they currently fund. For example, we still have the catapults merrily going about their business, but what is the role of the Satellite Applications Catapult as regards other organisations within the Government’s purview? As ARIA comes on stream, it would behove the Government to have a review of these agencies to see whether we can simplify the landscape and indeed perhaps even free up some budget that could effectively be used for ARIA purposes.
In speaking to the first amendment, I would point out that, while we love to talk about DARPA, in fact IARPA exists as well, and indeed ARPA-E. In the last five or six years, the Americans have created two new ARPAs. One is focused specifically on energy and one is involved with helping the intelligence services—so it is clear that the US Government believe that the ARPA model works. But the crucial point is this: they believe, clearly, that it works only when it has a specific sector as its focus. It is not for DARPA to start straying into climate change or intelligence capabilities: a new ARPA model has to be created.
I would meet the Government half way on this point by saying that the ARIA model is clearly an attempt —a welcome and interesting attempt—to break the mould, free up an institution and go wherever the science takes it, to coin a phrase. But, without a specific sector to focus on, I worry that ARIA may be distracted when trying to find its purpose.
Viscount Stansgate (Lab)
My Lords, first, I apologise for being late. I do not know whether amendments can be moved by Thameslink.
Baroness Noakes (Con)
Perhaps I might say to the noble Viscount that it is customary, if a noble Lord is not here for the commencement of a debate, for them to take no part in it at all. In the noble Viscount’s absence, the noble Baroness on his Front Bench formally moved his amendment so that a debate could take place—but that does not mean that he can take part in the debate.
Viscount Stansgate (Lab)
I found the noble Baroness’s comments in our last session very helpful and I learned a great deal—and now I have learned some more.
Baroness Bloomfield of Hinton Waldrist (Con)
We discussed this with the Table and it was agreed that, because they are the noble Viscount’s amendments, we would allow him to speak. That is acceptable, according to our clerk—but perhaps briefly, if he would not mind.
Viscount Stansgate (Lab)
I will be very brief. I take it that we are talking about the climate-change provision, on which I will say only this: on Thursday the House debated the impact of COP 26. The whole House knows that the future of planet earth is not unimportant, and I would have thought that, for a body such as ARIA, there is every reason to suggest, possibly in the Bill, that it should bear some serious regard to the Climate Change Act 2008, under which the Government of the time and succeeding Governments have been operating.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, I thank the noble Viscount, Lord Stansgate, for tabling these amendments and for the discussions so far. I will not comment at length, given the discussions that we had last week about ARIA’s research focus and relationship with other research organisations, but I will respond to noble Lords who have spoken today.
To take up the point of my noble friend Lord Willetts, ARIA needs to be as complementary as possible in its functions to other research and innovation organisations. This of course includes UKRI, which retains its system-wide responsibilities and also funds high-risk research. However, ARIA’s fit within this system goes beyond just having regard to the work of other players; it is about actively engaging and making the most of the system. We are currently looking to recruit a brilliant CEO who will form a collaborative and open network of partners right across the UK’s R&D landscape as part of embedding ARIA as a high-functioning organisation for years to come.
Amendment 49 is on a new subject, ARIA’s title. I agree that the focus should be on what the agency does, but let me say a few words about why we decided to call it the Advanced Research and Invention Agency. The noble Viscount, Lord Stansgate, will be aware that ARPA was the title of the US agency originally established in 1958; ARPA subsequently evolved into DARPA and the model was then developed, as my noble friend Lord Vaizey reminded us, in forming ARPA-E, IARPA and ARPA-H—somebody has been having great fun with the acronyms. It is also the inspiration for the agency that we are discussing today.
However, I stress that ARPA is only the inspiration. ARIA will learn many lessons from the original ARPA, but it is not a carbon copy. It takes into account what we think to be the distinct UK R&D landscape. As we have discussed, given the levers that the Government already have to gear R&D funding to national and strategic priorities, one key departure is that we are not mandating a specific area, such as defence, that ARIA must focus on. There may be other areas and ways in which ARIA’s incoming leadership wish to adapt the original ARPA model, given what we think is a fairly unique context. Calling this new agency ARPA could give a somewhat confusing message about its functions and easily result in it being mistaken for a purely defence-focused research funding agency. I strongly believe that ARIA must have its own brand and identity; that will be integral and crucial to its success.
I also believe that “invention” is a useful element of the agency’s title, which has been well received during the passage of the Bill in the other place and, so far, in our House, as well as by many in the research community. Together, “advanced”, “research” and “invention” signify that ARIA will be focused on high-risk research and clear, soluble challenges in the development and deployment of what we hope will be breakthrough technology. I completely recognise that the agency could be called many things—we could probably get 20 or 30 different examples in this Room alone—but I assure noble Lords that we have thought carefully about all the many options and come to the position, across government and with contributions from all departments, that the Advanced Research and Invention Agency is a clear, bold title, which clearly signifies what we want the agency to do and how we want its functions to evolve. With that explanation, I hope that the noble Viscount, Lord Stansgate, will not feel the need to press his amendments.
Baroness Chapman of Darlington (Lab)
I beg leave to withdraw the amendment.
“(7) ARIA is— (a) a public authority within the meaning of section 3 of the Freedom of Information Act 2000, and Schedule 1 to that Act is amended accordingly, and (b) a central government authority within the meaning of regulation 2(1) of the Public Contracts Regulations 2015, and Schedule 1 of those Regulations is amended accordingly.”Member’s explanatory statement
This amendment would subject ARIA to Freedom of Information requests.
Baroness Chapman of Darlington (Lab)
I want to talk about the issue of FoI. We all knew that this was coming in our discussions; it came up at Second Reading, and it has come up in much of the commentary about this Bill. As the Minister will know, there is serious concern about the Government’s decision not to include ARIA in the freedom of information legislation.
To put it bluntly, we think that ARIA should be subject to freedom of information, and we do not think that the Government have given any good reason or argument to justify the exemption. We think it is unlikely that ARIA would be overwhelmed with requests, as the Government seemed to indicate at Second Reading. As the Minister knows, that is not the situation with the equivalent agency in the United States. There is no reason that we can see why ARIA would be incapable of dealing with FoI requests that came its way.
At this stage, I know that we are all very familiar with the arguments about FoI, and I expect that we have all been in many debates not dissimilar to this, but it is helpful to remind ourselves why freedom of information was introduced 21 years ago. It gives us the right to know about the activities of public authorities, unless there is a good reason for them not to disclose them. This is called a presumption in favour of disclosure, and it is something that we very much support. It means that everybody has the right to access official information, and that disclosure of information should be the default—so information should be kept private only when there is a very good reason. As I say, the Government have not given a good reason to exempt ARIA.
At Second Reading, the Minister said that he was concerned about ARIA being overwhelmed. I do not know why that would be the case. Even if there were sufficient interest to make the burden of FoI substantial, I do not imagine that that will happen. The Minister has not given a reason why that would be a particular problem for ARIA and not for other agencies. It is just not a good enough reason to exempt ARIA from the scheme—the fact that you might get asked a lot of things is no reason to allow yourself not to answer them. If FoI was a burden for ARIA, I am sure that every local authority up and down the country would like to make the same argument for exempting itself. Why should ARIA be treated differently? That is something that the Minister so far has not explained.
I cannot remember who said this at Second Reading; it may have been the Minister who prayed in aid Tony Blair, which is usually not a bad thing to do. But I part company with Tony on this particular issue. As we all know, Tony Blair decided after leaving office that he regretted introducing FoI because, I think he said, it was a nuisance and it disrupts ease of communication between officials. I do not think there is a Prime Minister now or in the past who would not agree with him. I am sure it is a complete nuisance, but it is important; it is about the balance of power between Governments and their citizens. Tony Blair might feel that way, but that does not mean that the Government are right to keep agencies away from scrutiny. If the Government want to get rid of FoI or change the way in which it works, they should make the case, they should win the argument, and then they should change the law. They should not be attempting to undermine FoI slowly over time by excluding new agencies, which is what I think is happening here. They do not want to have the argument, so they are just leaving out new entities as they emerge.
I should have thought, after everything the Government have experienced in recent weeks, that they would be falling over themselves to show the country that they welcome scrutiny and want to be transparent. Last week, the Minister accused me of being opportunistic in making that argument. I stand by my assurance to him that that is not the case. This is done out of a will to see ARIA succeed. I could stand here and make a very long speech about all the problems the Government have had through lack of transparency, but I will not do that. I want ARIA to succeed, but I think that without some measure—whether it is FoI or some of the other measures that the Minister dismissed last week—there needs to be some measure by which that transparency, scrutiny, oversight or whatever you want to call it can take place, either via Parliament or via FoI.
I am sure that we will come back to this at Report. The Government have declined every suggestion that we have made on this issue so far. That is a shame, and I just hope that they reconsider their stance on this.
Viscount Stansgate (Lab)
My Lords, I support my noble friend Lady Chapman and shall speak also to Amendment 32A, which, ironically, was the first amendment that I drafted. If there is any benefit to a signal failure on Thameslink, it is that by accident I turn out to be speaking to the very first amendment that I drafted. I pay tribute to the noble Baroness, Lady Noakes, because it was her who pointed out last week that the former Prime Minister had said that he regretted the Freedom of Information Act. Next time I see him, I shall gladly discuss that subject, but I think it tells you more about Prime Ministers than it does about the principle of freedom of information.
There are two and a half arguments in favour of this amendment. The first is the principle. We live in a parliamentary democracy—we live, incidentally, in a world in which we learn less and less about the Government, who can know more and more about us—and it is a good principle of public life that any new body should be subject to freedom of information. The half argument is that, if it is suggested by the Government that this will cause practical difficulties for ARIA, I am perfectly happy for them to bring forward their own amendment saying that at a later stage they can review the operation of the Freedom of Information Act to see whether it has turned out to be very difficult.
The other argument in favour of making it subject to freedom of information is this. This is a new body. It will be given a not insubstantial sum of public money. It will be doing things the nature of which none of us around this Committee Room knows. If it is thought to be too secretive about what it is doing and in no shape or form accountable to Parliament, apart from the odd appearance by the chair or chief executive in front of the Select Committee in another place, there is a risk that ARIA’s work and reputation could be damaged. Freedom of information would protect ARIA against that risk. That is the other argument I put to the Committee in favour of the amendment.
Baroness Noakes (Con)
My Lords, I spoke on this at Second Reading and quoted Tony Blair. Just to remind the Committee, he said that the Freedom of Information Act was
“utterly undermining of sensible government.”
I do not think it is, but I think anybody in the public sector will attest that it is often very burdensome and extremely costly to operate. It was looked at relatively recently by a group, led I think by the noble Lord, Lord Burns, and the conclusion was that on balance the law should remain as it is. But that does not mean that for every new body we should automatically apply the Freedom of Information Act requirements. The noble Baroness, Lady Chapman, was clear that if there was a case, the Opposition would support it.
It is worth looking at why an organisation such as ARIA might well be worthy of special consideration. Let us look further at what Tony Blair said:
“If you are trying to take a difficult decision and you’re weighing up the pros and cons, you have frank conversations … And if those conversations then are put out in a published form that afterwards are liable to be highlighted in particular ways, you are going to be very cautious.”
We do not want an organisation that is dragged into caution and risk aversion. We want one that is fully open internally to grappling with some very difficult issues.
Lord Fox (LD)
My Lords, I speak to Amendment 39 in my name and that of my noble friend Lord Clement-Jones. It is on something also asserted in Amendment 24 by the noble Baroness, Lady Chapman, and, in the late runner, Amendment 32A, by the noble Viscount, Lord Stansgate. We all seek essentially the same outcome, targeting different parts of the Bill to avoid the avoidance of freedom of information.
It is always good to speak after the noble Baroness, Lady Noakes, and strangely my opening assertion very much follows on from hers. Without our amendments, ARIA would follow in the footsteps of a very small number of institutions that currently do not have Freedom of Information Act obligations: the Royal Family; security and intelligence bodies such as MI5, MI6 and GCHQ; Special Forces; and the National Crime Agency. I think that is the list. There may be others, but I am pretty sure that is it. It gives noble Lords an idea of the sort of organisations. They do not seem to be natural paradigms to ARIA.
The noble Lord, Lord Willetts, will correct me, but the obstacles to innovation for funding bodies are many and various. Nowhere have I seen obligations to freedom of information as one of the things listed by those bodies as a barrier to innovation, or indeed invention. Indeed, as far as I can see, most if not all of ARIA’s client organisations—those it will fund—will be subject to the Freedom of Information Act, so where is the point in excluding ARIA itself?
In refuting me and others on this at Second Reading, the Minister said that
“robust arrangements are in place that will provide a clear picture to Parliament and taxpayers about how ARIA’s activities are funded and where it spends its money.”—[Official Report, 2/11/21; col. 1202.]
That is indeed the point, because ARIA will be holding the brush painting that picture. We will get to see what ARIA chooses to tell and show us about what it is doing. FoIs look at things from the opposite direction.
The Minister also points to the need for ARIA to be lean, and I absolutely agree with him on that, but I remind him and those who speak against these amendments why we are seeing growing evidence of huge levels of very worrying financial mismanagement across government contracting. It is because of the crony-type issues which the noble Baroness, Lady Chapman, raised in her speech, which have a corrosive effect on institutions that need to be protected from any stain of impropriety. Transparency is very much that protection. By maintaining proper scrutiny, everybody can see that there are no problems and there is no favouritism going on. This will absolutely protect ARIA’s reputation.
ARIA will be substantially larger that many bodies already subject to freedom of information legislation. ARIA has no greater claim to avoiding complying with FoI legislation than any other public authority. Indeed, given its budget, there are compelling grounds for its inclusion. It is clear, through these three amendments, that we on this side find the current plan to exclude ARIA from the Freedom of Information Act’s provisions unacceptable. I feel sure that, between us, we can coalesce around a single amendment for Report. In the meantime, I look forward to the Minister’s response.
Lord Browne of Ladyton (Lab)
My Lords, I will make two points. The first is in response to a point made by the noble Baroness, Lady Noakes, and the other is in anticipation of a point that I think the Minister will make in his response to the debate.
The noble Baroness argued that the unique nature of this organisation should make it free from this burden. It will be unique here in the United Kingdom, but it is not a unique organisation. In fact, it is modelled on an organisation that has a history, and that is ARPA, which is now DARPA.
I will come shortly to the Minister’s rejection of that comparison at Second Reading, but I am moved to intervene because of data I have been given by the Campaign for Freedom of Information about the burden that freedom of information has been on ARPA and DARPA in the United States. Granted, the United States is a much more open society than ours, but ARPA and DARPA have been subject to the US Freedom of Information Act. It is incontrovertible that the need to answer FoI requests has not prevented them achieving successes that the Government here now wish to emulate. In fact, in the 11 years from 2009 to 2019, an average of 47 requests a year referring to DARPA were made to the US Department of Defense. It lived with that burden and has been the success that we all know and are seeking to emulate.
The Minister rejected this comparison, saying that there is a different freedom of information system in the United States of America. He referred to fees, and suggested that somehow the experience we have had of freedom of information thus far made it probable that ARIA would be prevented from being the lean machine focused on innovation that we all want to see if it was subjected to the burden of freedom of information.
Interestingly, 47 FoI requests per year is almost exactly the number of requests received by individual UK research councils before they were incorporated into UKRI. In 2017-18, the six research councils for which data was available to those who provided it to me received an average of 48 requests each. By comparison, in 2019 the Home Office and the Ministry of Justice each received nearly 5,000 requests. Maybe that is why the Government have this impression that everything they do is overburdened by FoI. It is not. Some things are, and there is a different politics about them than there will be about this.
I think that it is perfectly legitimate to make the comparison with the success of DARPA and ARPA, which have lived in an environment of openness and freedom of information. That is much more likely, on the data, to be the experience of ARIA, were it to be subject to the Freedom of Information Act, than the perception of any burden that a Minister may have from their own experience of FoI in another department.
Lord Broers (CB)
I would like to respond to that, which I find very interesting. I would like to know whether ARPA and DARPA have restraints on certain types of information. Having operated in industry in an R&D environment, I am familiar with the problems of what you have to keep secret and what you do not. In the American economy, by far the largest fraction of the vast amount of progress that is made is made in industry with private funds—and industry invests those private funds in R&D only if it can be assured that the products of that R&D will remain exclusive to it. I have been in situations where there has been industrial espionage and design manuals have been stolen for products that took billions to develop. Those thefts in the United States were of course prosecuted and those who obtained the information were fined large sums of money.
ARPA is going to be in that situation. It has to work with industry, using the results of its most advanced R&D, perhaps in new ways, to come up with new systems. It must be able to sign some memorandum of understanding, or in some way say to industry that it will protect from public knowledge that information. In an industry where you are relying primarily on novel processes, you do not tend to patent things, because patenting them puts them in the public domain. You rely on trade secrets and, to have a trade secret validated as a trade secret, you have to show that you have done enough due diligence to make sure that the information is not generally available to your competitors.
It has been a problem internationally for the past several decades that there has been international espionage on a large scale to obtain information from inside industries in the West. I ask the Minister whether that is being taken into account. Clearly, what the noble Lord, Lord Fox, and others have been saying is incontrovertible: we do not want the agency at risk because people are wasting vast sums of public money. On the other hand, you have to take into account that, if ARIA is to be successful and produce new capabilities that can be commercially exploited for the benefit of the UK, there must be adequate protection of what in industry is normally commercially sensitive and secret.
Lord Clement-Jones (LD)
My Lords, my noble friend Lord Fox, in his amendment, and other noble Lords in theirs have pointed to the anomaly of ARIA not being subject to the Freedom of Information Act, and it has been a great pleasure listening to the noble Baroness, Lady Noakes, quoting Tony Blair with approval—a rare delight.
The Government have put forward a number of weak reasons to justify ARIA not being subject to the FoIA, and the noble Baroness, Lady Chapman, raised the first of them, the burden of responding to FoI requests—an extraordinary argument for a body that is going to have a budget of £500 million over the first three years. Many bodies subject to the FoIA have tiny budgets and staff numbers compared with those that ARIA will enjoy.
The noble Baroness, Lady Noakes, called it costly, but will it be for ARIA? Interestingly, the noble Lord, Lord Browne, raised a number of questions prompted by the comparison or assertion that the Minister made at Second Reading that, because we do not have to pay for access to freedom of information requests, they will be pouring into ARIA, unlike in the United States. As the noble Lord, Lord Browne, pointed out, actually the requests to each of the research councils is pretty much on a par with those that are put to DARPA. I do not think that that argument is there either.
Lord Callanan (Con)
I start with Amendment 24 from the noble Baroness, Lady Chapman, Amendment 32A from the noble Viscount, Lord Stansgate, and Amendment 39 from the noble Lord, Lord Clement-Jones, which all deal with the Freedom of Information Act. As I said at Second Reading, our decision not to subject ARIA to FoI was made after much consideration. As on so many of these things, I find myself in full agreement with my noble friend Lady Noakes and I thank my noble friend Lord Patten for his support during the Second Reading debate.
I was hoping that some of my noble friends who have been in government would comment on how they found the Freedom of Information Act in government. From my point of view, it is a truly malign piece of legislation. At the risk of trashing his reputation even further in the Labour Party, I agree with Tony Blair on this matter. I agree with the noble Lord, Lord Fox, that all information on government contracts et cetera should be published, even if it is embarrassing for the Government. However, I think he will find that all the contracts to which he refers were not released under freedom of information but under normal government contract transparency.
In my experience, not much is ever released under freedom of information that causes any problems for government; it is normally stuff that is released in the normal transparency of contract negotiations and government transparency returns. I am fully in favour of decisions, and information about them, being released, but I fail to see how the processology of government benefits at all from FoI disclosures. I find that people just modify their behaviour and communication to take account of the fact that private conversations may be released in the future. I genuinely do not think that it achieves anything at all, but that is my personal perspective and not necessarily a matter for this debate. It was also new to me to discover at Second Reading that the US charges a fee for freedom of information disclosures. I think that is an excellent idea, even if it is only a nominal amount to get rid of some of the somewhat spurious fishing expeditions that many go people in for. Anyway, that is a separate matter for different discussions.
In contrast to UKRI, which comprises the seven research councils, ARIA is a new, unique organisation that we anticipate will attract a disproportionate number of FoI requests for its size. On the point made by the noble Lord, Lord Browne, I would reiterate, as I did at Second Reading, that comparisons between ARIA and DARPA do not hold, precisely because, as I said, DARPA adds a standard fee to the requester, which is not comparable to the situation in the UK, although we should certainly consider it.
Lord Clement-Jones (LD)
My Lords, if I may have the privilege of intervening—a wonderful feeling, having been under different rules for a period of time—does the Minister not accept what the noble Lord, Lord Browne, said: that the individual research councils receive no more than the number of requests that DARPA receive, something of the order of 47? It is quite coincidental that the average is 47. Why does the Minister think that ARIA will be inundated with freedom of information requests?
Lord Callanan (Con)
Because it is a fairly new and exciting agency doing new things. I suppose we will have to disagree on that. There is no point and nothing to be gained by doing otherwise. In designing ARIA, we are envisaging a lean agency that will employ people in the tens. I do not know how many people across government are currently employed to respond to the hundreds if not thousands of FoI requests that we get, but given the bundles of documentation that sometimes pass my desk, there must be many hundreds of civil servants engaged in doing nothing other than responding to these fishing expeditions. As I said, ARIA will be an agency employing people in the tens, with around 1% of the R&D budget.
Lord Browne of Ladyton (Lab)
My Lords, I am grateful to the Minister for giving way. I invite him to reread what he said at Second Reading. He virtually invited people who are being refused the opportunity to ask ARIA questions to ask them of his department. Then it will be a true comparison. I invited him to compare an organisation of the nature of a research council with one such as DARPA, not to compare DARPA with a government department. At Second Reading, he himself listed a whole number of organisations, including government departments, that are subject to FoI. It is an invitation to people who are refused the discipline of talking to a smaller organisation in a proportionate way to flood a department with requests and take up even more time. With respect to the Minister, I think this is verging on an irresponsible attitude towards this argument, even in his own interests.
Lord Callanan (Con)
I can assure the noble Lord that people need no invitation from me to table FoI requests to my department. They are well capable of doing it. I think some people already have forms set up on their word processors to submit some of these things with gay abandon.
Anyway, in designing ARIA we are envisaging an agency that will be lean and streamlined. It will employ people in the tens, and we strongly believe that it needs to be agile and efficient. “Lean”, “streamlined” and “efficient” are not always words that are used to describe nominal usual public bodies. However, as my noble friend Lady Noakes has attested to, this context has always been at the forefront of our minds in bringing forward this Bill.
We have carefully considered which procedures are conducive to ARIA’s success. I recognise here that part of ARIA’s success depends on it gaining public trust and being transparent and accountable for its activities, as the noble Lord, Lord Fox, called for. I believe that we have found the right balance in freeing this small agency to fund high-risk, critical research but to do it differently, with appropriate visibility to Parliament and taxpayers.
The noble Lord, Lord Broers, raised some concerns about the protection of technological gains in sensitive projects. I note at this point that there are, of course, existing commercial confidentiality exemptions to the FoI Act, as referenced by the noble Lord, Lord Clement-Jones. All requests still require processing and we are conscious of this in making the decisions to exclude ARIA.
Much has also been said on transparency today in the contributions from the noble Baroness, Lady Chapman, and the noble Viscount, Lord Stansgate. I maintain that the right provisions to hold ARIA to account are the ones that I outlined at Second Reading. They are the publishing of an annual report and statement of accounts, which will be laid before Parliament, as set out in the Bill; being subject to annual audits by the National Audit Office; and being accountable to Parliament through the CEO, who will be the agency’s accounting officer.
In addition, as the noble Lord, Lord Browne, has pointed out, ARIA will remain a BEIS arm’s-length body, and my department will work with ARIA’s leadership to agree the appropriate arrangements for its scrutiny and oversight in the interests of good governance.
We expect ARIA, as far as possible, to have a culture of transparency, and we hope that will be championed by its incoming leadership. Working across the R&D community, and indeed with Parliament and the public, to communicate ARIA’s activities will be critical to ARIA’s commercial and research success. Given that, I hope the Committee will understand that I cannot accept or agree with this amendment. I am sure the noble Lord, Lord Clement-Jones, has a different opinion.
I turn now to the exemption the Bill affords ARIA from the Public Contracts Regulations 2015, and to Amendments 24 and 42 in the name of the noble Baroness, Lady Chapman. I think she omitted to speak in favour of her amendment, but I will respond to it anyway.
Our decision to exempt ARIA from the contracting authority obligations in the Public Contracts Regulations hinges on two critical expectations: first, that ARIA will be commissioning and contracting others to do research for it; and, secondly, that ARIA’s programme managers should be acting and investing with agility and speed. When ARIA is commissioning and contracting others to do research for it, it will be operating in a fundamentally different way from traditional R&D grant-making where procurement rules do not apply.
In my view, it is therefore appropriate for ARIA to be given freedom from procurement rules to ensure that the agency has greater flexibility in its contractual arrangements. However, to counterbalance that and to provide the assurance that this freedom will be used properly, we have provided a non-legislative commitment for an independent auditor to report annually on ARIA’s procurement activity. This measure, alongside ARIA’s robust conflict of interest procedures, the wider accountability I just talked about, and governance provisions, are an appropriate set of arrangements. I hope that reassures the Committee that we have taken all these matters into consideration and that this exemption is both essential to ARIA’s effective function and proportionate to the tasks it faces. Therefore, I invite noble Lords not to press their amendments.
Baroness Chapman of Darlington (Lab)
I thank the Minister for responding to my amendment and speaking to Amendment 42, which I did not move; I am grateful to him for responding to something I did not say.
As he explained, the point of Amendment 42 was to include ARIA as subject to public contract regulations. I do not understand why it is not. These debates are all connected. We are constantly trying to push the Government to give us a bit more transparency and give ARIA more accountability, but they keep pushing us back. The Minister says that he wants a culture of transparency, but I do not see how that will come about as we are currently progressing.
As my noble friend Lord Browne said, ARIA is not unique and, as several noble Lords have said, it needs protecting from reputational damage. I make a plea to the Government not to allow ARIA to end up being called some sort of secret research agency, which is a real danger. When that kind of pressure starts, this agency will not stand a chance. Never mind the measures in the Bill about protecting it from being disbanded for 10 years; they will count for nothing. It would be very easy for a Secretary of State to get rid of this agency should the political pressure mount. That is what we are trying to avoid here.
The noble Lord, Lord Clement-Jones, talked about the exemptions from FoI, which I hope reassures other noble Lords who talked about commercial interests and national security. Of course we would not want FoI to be used in a way that would harm ARIA, but that is already taken care of by the exemptions from FoI that already exist.
The Minister tried to say, “I don’t know why you’re so fussy about FoI. It never really tells us anything we wouldn’t already know.” I just had a quick look at what has been out in the past few weeks thanks to FoI. FoI revealed that 52% of councils spent nothing on electric vehicle charging, and the scale of data breaches at local authorities. FoI told us about the funding drop in early years in different regions of the country over the past quarter and about the number of operations cancelled by trusts. These are all things that we would not have been able to discover, except perhaps by a Parliamentary Question, if FoI were not available. It is important. It provides something that is unavailable by any other mechanism. Given the failure of the Government to take us up on any of our other suggestions for transparency, I am pretty confident that, as the noble Lord, Lord Fox, said, we will return to this and push the Government hard on this issue at Report. I beg leave to withdraw the amendment.
Lord Browne of Ladyton
“(4) If ARIA gives a grant, or part of grant, made to it under this section to another entity, the giving of the grant must be subject to the condition that a person or entity may not gain control of that entity for 5 years after the date on which the grant is given.(5) If ARIA gives a grant, or part of grant, made to it under this section for the purposes of supporting a specific asset, the giving of the grant must be subject to the condition that a person or entity may not gain control of that asset for 5 years after the date on which the grant is given.(6) In this section, “entity” means any entity, whether or not a legal person, that is not an individual, and includes a company, a limited liability partnership, any other body corporate, a partnership, an unincorporated association and a trust.”Member’s explanatory statement
This amendment would ensure that any grant made by ARIA is subject to the condition that the entity or asset supported may not be subject to a takeover for 5 years.
Lord Browne of Ladyton (Lab)
My Lords, Amendment 30 seeks to ensure that any grant made by ARIA is subject to the condition that the entity or asset supported may not be subject to a takeover for five years. I confess that, on reflection, this may more felicitously have been an amendment to Clause 2, which deals with the conditions of grants made by ARIA. As its tabling is for exploratory purposes, at least today, I do not think that matters, but if it comes back it will probably come back in a different form and as an amendment to a different clause.
On the first day of Grand Committee, the debate on the group of amendments led by Amendment 18 in the name of and moved by the noble Lord, Lord Lansley, took about 20 minutes, and the phrase “intellectual property” was used 37 times. Introducing the debate, the noble Lord described the group as being
“about the way in which ARIA acquires, creates, disposes of, retains and shares intellectual property”,—[Official Report, 17/11/21; col. GC 127.]
so it is not really a surprise that the phrase was picked up.
In some senses, it is a pity that this amendment was not grouped with the noble Lord’s amendments, because the concerns that have given rise to the need for this amendment were to some extent aired in that debate. The noble Lord, Lord Lansley, shared with us the extent to which there was concern in the United States that
“some of the public funding which has led to”
DARPA
“research has led to private as opposed to public gain.”—[Official Report, 17/11/21; col. GC 128.]
I share his concern about the extent to which we are creating such an opportunity, but more so about the extent to which such publicly funded research may lead to foreign, mainly US, private as opposed to British private or public gain.
Refinitiv data shows that, in the first half of 2021, buyout groups spent $45 billion snapping up companies in Britain—more than double the next-best first six months on record and almost 10% of the total $547 billion spent across the world. Am I to understand that British stocks’ discount to global peers is the deepest in more than three decades and that Brexit is one reason? I do not want to divert us into another debate, but Brexit is for good, not just for Christmas, so that situation may persist for a period.
On 17 November, reporting the Culture Secretary’s decision to announce a competition and national security investigation into the planned takeover of the British chip business Arm Holdings by the American multinational tech giant Nvidia, and coupling this with the recent news that Kwasi Kwarteng is investigating the proposed sales of defence suppliers Ultra Electronics and Meggitt to American suppliers on similar grounds, Ben Marlow, the chief City commentator of the Telegraph, wrote:
“For too long Britain has adopted a naive and unquestioning ‘help yourself’ approach to foreign takeovers. For a while it looked as though the … government would take an even more extreme laissez-faire approach as it sought to live up to its ‘Global Britain’ credentials but perhaps the penny has dropped in Westminster … It is a welcome shift in tone. Ministers routinely greet the sale of British companies to overseas buyers as a vote of confidence in this country’s prospects when it is nothing of the sort. It simply means foreign firms see the UK as easy pickings and an opportunity to make a quick buck. Hoisting a giant ‘for sale’ sign over your best and brightest companies is not sound industrial policy, it is an act of … self-harm.”
It will not be a surprise to anybody in your Lordships’ Committee that I am not used to quoting the Telegraph in debates or in support of my arguments. I do so because, in a sense, it may be a bit of an instruction to the Minister as to the attitude he ought to adopt to this issue. I do it because it may have more impact on the Minister.
I have tried twice now, in supplementaries to Questions in your Lordships’ House on these issues, to engage the Minister on what is actually happening in the United Kingdom to some of our best and brightest businesses and the effect it is having. I even quoted on one occasion the concerns of the Bank of England about the way these businesses are funded and the damage that this leveraged debt potentially poses to the economy of the United Kingdom in the long term, but he did not respond.
On another occasion, in relation to both the companies referred to in addition to Arm—Ultra Electronics and Meggitt—I pointed out that 85% of R&D in the defence industries in the United Kingdom is public money, and that the intellectual property of these businesses was in danger of leaving the United Kingdom, having been paid for by public money. That is exactly the issue that the noble Lord, Lord Lansley, raised, although he did so in a slightly different context, and exactly the concern I have.
On none of these previous occasions did the Minister bite. With respect to him, he deployed a slightly less complacent version of the words the Telegraph’s city correspondent pointed out, but he deployed them nevertheless.
I close my remarks in support of this amendment by thanking the Minister for his gracious invitation to me over the last few days to indicate to him what lay behind it so that he could, if possible, give me the reassurance I sought. I responded with an even shorter version of what I have said to your Lordships’ Committee today. I hope he has the reassurance that I and others seek about how we will protect the product of this new initiative from being raided by the predators of venture capital funds in particular. I conclude with the words the Telegraph uses, that
“the Americans wouldn’t allow it to happen so why should we?”
Baroness Noakes (Con)
My Lords, I am not as opposed to foreign takeovers as the noble Lord, Lord Browne, but I accept that there are some instances where this country is not well served by the ability of organisations outside the UK to cherry pick some of our best assets. The broad thrust is that foreign investment in the UK has been good for our economy—indeed, large amounts of our productive economy are owned by foreign businesses and they are an important part of the success of the UK economy—but I concede that there is a potential issue, especially when we deal with the kind of things we expect ARIA to fund.
However, I do not think the amendment works. It says that if ARIA gives a grant to an entity, it has to be subject to the condition that that entity cannot be taken over. That entity cannot give an undertaking that it cannot be taken over, because the people who will control who takes over an entity are the people who own the entity, which is not the same as the entity itself. While in some cases it might be a private company with two or three shareholders, which would probably be quite easy to deal with, if the shareholdings were much more dispersed it would probably be impossible to operationalise that sort of requirement. If there is a case, it needs another solution.
I also note that this is a bit of a sledgehammer. There could be very good reasons for an entity having the control over it changed. It could need greater access to capital to scale up whatever it has been looking at; it could have liquidity issues in taking its research and development to the next stage, before it even gets to scale up, and need the involvement of other partners; or it could just be that it makes sense to continue with whatever it has been looking at only if it is part of a larger organisation and subject to a merger or joint venture, where control would be ceded. If there is a problem, I do not think it can be met by this amendment.
Lord Fox (LD)
My Lords, I thank the noble Lord, Lord Browne, for raising this very interesting issue. Without repeating verbatim what I said at Second Reading, one of the highlighted issues in delivering technology into the market in this country is not the invention phase but the scale-up—getting it beyond technology readiness level 7 and then getting it into the market and scaling up.
I discourage the noble Lord from using the phrase “predator” for venture capital. The money has to come from somewhere to deliver that scale-up, and I doubt that the Government will be the provider. The issue and challenge is that the VC industry in the United States is massive compared with what is available in UK-based funds, and thereby comes the lack of centricity about which the noble Baroness, Lady Noakes, spoke. We should very much consider looking for a way for businesses that have an invention to take it to market. To some extent, this amendment is looking at the other end of the problem; it stops stuff happening rather than allowing it to happen in a different way. I am not sure that it is the answer, but its spirit is very important.
There is another unintended consequence I would be concerned about. In the event that an entity could avoid a takeover, by taking money from ARIA it would in essence lock itself away from any commercial activity that could be beneficial to it as a company, the country and ARIA’s intentions. A one-size-fits-all approach—“We give you the money and you can’t do any commercial activity”—is not in the spirit of what this seeks to achieve. Looking at this again, we need to find a way to deliver that scale-up story. That is really the issue facing this country, not the invention bit that somehow this agency is focused on.
Lord Lansley (Con)
My Lords, I very much appreciate that the noble Lord, Lord Browne, has brought forward his Amendment 30 in particular. It is very helpful to our debate and rather complements the discussion we had about ARIA’s ability to exploit the intellectual property it gives rise to and to place the right kind of conditions. We will come back to that on Report; it is important that we do.
I hope the Government can, if not necessarily amend the Bill extensively, certainly make it clear that ARIA, in exercising its functions, should seek not only to promote economic growth and benefit in the United Kingdom but to make sure that—in so far as the public have subscribed through ARIA to the creation of intellectual property—the benefits of that will accrue to ARIA and, potentially, the Government. I would say that they should accrue to ARIA, with the ability to promote follow-on research activity as a result. I am sure the noble Lord is not planning to press his amendment and recognises the risk associated with its structure and the chilling effect it might have on the entities that might otherwise apply for grants, assets or activity.
I will just inject this thought. A number of noble Lords here in Grand Committee were contributors to our discussions on the National Security and Investment Act, and I hope my noble friend the Minister will be able to give us some specific assurances about how Ministers can use National Security and Investment Act powers to secure the protections that the noble Lord, Lord Browne of Ladyton, is looking for.
I worry that there may be gaps, because the National Security and Investment Act has its own criteria and thresholds, and this may relate to activities, projects and assets that do not fit within those criteria—but we none the less want the intellectual property created by ARIA to be protected in some way. So there may be a gap and we need to explore whether there is one and, if there is, how it might be secured: how ARIA, and Ministers through ARIA, can protect the value that might be derived from the intellectual property to which its projects give rise.
Lord Broers (CB)
My Lords, I rise to give the amendment moved by the noble Lord, Lord Browne, the very strongest support. We have talked around the issue of how we can solve the problem of losing our brilliant companies, because it is stunningly serious—and it is not just Arm and Nvidia. I am very pleased because I wrote to the Government about six months to a year ago to plead that the competitive agency should look at that, and it is at least looking at it now. The company Solexa was taken over by Illumina, having pioneered the successful way to decode DNA, and Illumina’s revenue flowed into the many billions—after the key technology had come entirely from the UK. These things should not have happened.
I ask whether we can add to the requirements on ARIA that incentives should somehow be given to our City, which has an appalling record of missing opportunities to invest in UK industries—creative industries in particular. It is all very well to talk about the scale of American venture capital: that is a very good point, but we can be very selective. Then perhaps we would not need a very big scale to look after companies such as Arm and Solexa—there was Verata before them, and several others that have left here almost with the certainty of being successful, and yet somehow we could not find our own funds to support them.
Baroness Chapman of Darlington (Lab)
My Lords, I will speak briefly to Amendment 31 in my name. It is a probing amendment to find whether the Minister would say a few words about how ARIA grants will interact with national security and our established defence industry. We have a very well-developed defence research capability in the UK. It is successful and world leading. I would like to understand how ARIA will relate to it.
I also fully support the amendment from my noble friend Lord Browne. I do not know anywhere near as much as he or many other noble Lords in this Committee do about the topic, but I was familiar with Cobham, which was based very close to Darlington: most people who worked there seemed to live in Darlington. Its substantial contribution in this field stretched over decades. I agree that we need to do whatever the Government think would work to deal with this problem. It seems to be a concern on all sides. If the amendment from my noble friend Lord Browne, is not the right one, or it this not the right clause, or perhaps not even the right Bill, there remains a concern that has been expressed that the Government would do well to respond to and let us know, if this is not the way they will deal with it, how they intend to tackle something that is clearly a concern of many noble Lords.
Viscount Stansgate (Lab)
My Lords, I rise briefly to support my noble friends Lady Chapman and Lord Browne. Amendment 31A is in my name. The Government saw fit to put Clause 5 in the Bill for a reason and I am sure the Minister, when he comes to reply, will refer to the reason why it is so important. Similarly, some of us on this side of the Committee feel that it is particularly important that, when those powers are exercised by the Secretary of State, Parliament knows about it at the time—not just in an annual report produced later. Also, with others, I think that there may be further scope to consider whether in this legislation or the National Security and Investment Act, which has already been referred to, there could be ways of furthering the arguments of my noble friend Lord Browne, if the Government are prepared to consider constructive ways forward.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I thank the noble Lord, Lord Browne, for his comments on Amendment 30. I recognise that this is an issue that he cares deeply about, as do other noble Lords, including the noble Lord, Lord Broers. As we heard, the amendment relates to ARIA’s ability to attach conditions to grants to prevent the takeover of an asset or entity, but this Bill is not about the general conditions or, indeed, climate for takeovers of UK private business by US entities; rather, in tabling this amendment, the noble Lord has raised important questions about the benefits derived from public investment in R&D. I appreciate his sentiments about the UK retaining the benefits of ARIA’s funding and, as we discussed on Wednesday, Clause 2(6) gears ARIA towards considering the UK benefits of its activities.
The UK is a world-renowned destination for foreign investment and the UK economy has thrived as a result. We are open to foreign investment; the Government would be very concerned that placing further restrictions in the Bill could deter foreign investment in instances where it would be beneficial and, in some cases, might sit at odds with the wider principles held by the scientific community about the free exchange of ideas and the benefits of international collaboration in research and innovation. Although many noble Lords will share the concerns of the noble Lords, Lord Broers and Lord Fox, that we seek to incentivise the City to invest more funds in fledgling British businesses, as there is indeed considerably more private equity available in the US, that is not an issue that this Bill can solve.
However, I reassure the noble Lord, Lord Browne, that, as set out in the R&D road map published last year, and the innovation strategy published this year, one of the Government’s key ambitions is to become world class at securing the economic and social benefits from research and to safeguard intellectual property. We are pursuing a range of activity to achieve this, and the Government are concerned that adding legislative constraints will impact our position as a free trade champion. ARIA will be expected to collaborate closely within the UK R&D landscape—with Innovate UK, the Catapult Network or private equity partners—to find clear onward paths to take the benefits of its programmes to the next level. This is indeed the challenge rightly identified by the noble Lord, Lord Fox.
Furthermore, the patent box tax incentive will support the retention of intellectual property in the UK by allowing businesses to pay a reduced rate of tax on profits arising from exploiting patents and other qualifying products. Its aim is to encourage the commercialisation of inventions by companies in the UK. I hope that the noble Lord will recognise that we are taking action on this issue outside of legislation. It might just come down to the ideological difference between protectionism and free trade.
On occasions where it is necessary, the National Security and Investment Act 2021 will give the UK Government robust powers to scrutinise and intervene in relevant acquisitions, such as takeovers, to protect national security. This Act will sit alongside the Secretary of State’s power in Clause 5 to give directions where it is necessary or expedient in the interests of national security. I hope that this will answer some of my noble friend Lord Lansley’s remarks.
Regarding Amendment 31 in the name of the noble Baroness, Lady Chapman, the Government’s position is that ARIA must be able to operate with strategic autonomy. This includes making its own decisions on funding research, without influence from government. Clause 5 was designed to ensure that ARIA’s activities could be limited only if they posed a threat to the UK’s national security; for example, ceasing a particular contract or activities with parties from a particular jurisdiction, or ceasing activities on a specific technology. These powers are necessary to ensure that the Government can intervene to protect national security.
I assure the noble Baroness that it is not our intention to use these powers to require ARIA to spend any grants in the interests of national security concerns. Given the autonomy that ARIA will have from Ministers, it would be more appropriate to expect the Government to use other structures if any such need arose. I therefore hope that the noble Baroness will understand the intention behind this clause and that there is no need for this amendment.
Finally, regarding Amendment 31A specifically, given the nature and sensitivity of national security directions, the Secretary of State may be required to respond urgently and privately and it would not be appropriate to publish all directions made under this section. ARIA’s annual report, which this amendment seeks to add to, will align with HMT’s financial reporting manual and the normal standards of reporting. I believe this will ensure the right level of information is provided to allow appropriate parliamentary and public scrutiny of ARIA’s activities, and I am therefore unable to accept this amendment.
Lord Browne of Ladyton (Lab)
My Lords, I thank the Minister for her response and particularly for engaging with the reasons behind the amendment more than its technical perfection, which I accept it lacks. However, I will have to read carefully what she has actually said to see whether it is the reassurance that a number of noble Lords are seeking—from listening carefully to their contributions—about protecting the jewel in the crown, as it were, which is at the heart of what the Government and everybody are trying to achieve in the current environment. I will come back to that in a moment.
I also correct the omission of not thanking the noble Lord, Lord Morse—who is a good supporter to have in these sorts of issues—for adding his name to my amendment. I also tender on his behalf his apologies that because of timing he could not be here to speak to the amendment. He may get another opportunity to speak to the issues that lie behind it at some other point in the consideration of this legislation.
I thank all noble Lords for their contributions. They all added something to my knowledge and understanding of the issues I am trying to raise before the Committee in the context of this Bill. I hope there will be a collective, maybe holistic, solution to the different elements of this problem that have been identified.
I thank the noble Baroness, Lady Noakes, for pointing out to me the complexity of the area that I am in because of the different forms of organisations that will be involved. I am familiar with some of this, but clearly not as familiar as she is. However, I encourage her not just to assume that every takeover is a foreign investment. It appears to me that the more I go into this, the more that I discover that it is a not a foreign investment. I go back to the article in the Telegraph, which I quoted liberally. Ben Marlow, the chief City commentator of the Telegraph—to whom I am deeply indebted—says:
“Moreover, ministers repeatedly conflate real investment with opportunistic takeovers when they couldn’t be more different.”
He then goes on to give examples of what he thinks are real investment, and Nissan is right up there, as you would imagine.
I am impressed by that and think I understand it. However, I understand it even better when I read the Financial Stability Report of the Bank of England in October 2021, when it points out that there is a developing danger to our economy in the leveraged loan markets with:
“the trend of increased prevalence of looser underwriting standards has continued, which increases risks to end-investors.”
It goes on to say:
“Recent UK leveraged lending flows have in part been driven by a surge in private equity investment in UK businesses: 2021 private equity investment is on track to exceed its 2019 level, which itself was a strong year.”
In a broader discussion of the indebtedness of this country, it highlights this in particular, which suggests to me that these takeovers have been funded by leveraged loans.
Because I have an interest in sport, I have followed carefully certain takeovers that got a lot of coverage in the sporting media, and I can see how that could work. I am not totally convinced that these are all properly foreign investment. I agree that they have to be looked at on a case-by-case basis, but if the Bank of England is worried, I am worried.
I thank the noble Lords, Lord Fox, Lord Lansley and Lord Broers, for their helpful and supportive contributions, and my noble friends Lord Stansgate and Lady Chapman for their support. All speakers came at this issue from a different perspective, as did the Minister. This issue is worth taking away to see whether there is a holistic way to deal with it in this complex context.
Before I withdraw my amendment, I conclude by apologising to the noble Baroness, Lady Bloomfield, for anticipating that her male colleague would answer. That is not because I am inclined to look for men before I look for women in any context; it was simply because he was the Minister who wrote to me about this and the one to whom I responded. I beg leave to withdraw the amendment.
Viscount Stansgate
“(4) If the Secretary of State issues directions under this section then those directions must be reported to each House of Parliament and subsequently listed in the annual report made by ARIA to the Secretary of State.”Member’s explanatory statement
This amendment would require the House to be notified if the Secretary of State issued directions to ARIA on national security grounds.
Viscount Stansgate (Lab)
I will move the amendment, but I am about to withdraw it. In withdrawing it, could I say to the Minister—
The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)
I think the noble Viscount is trying to say that he is not moving Amendment 31A. Am I correct?
“(2A) ARIA must provide the House of Commons Select Committee on Science and Technology with such information, in such form, as the Chair of that committee may request, including by sending representatives of ARIA to appear before the committee.This is subject to subsections (4) and (5).”Member’s explanatory statement
This amendment would allow the Chair of the House of Commons Science and Technology Committee to request information from ARIA on its operation.
Lord Fox (LD)
My Lords, this amendment is in my name and that of my noble friend Lord Clement-Jones. I will try to change gear and be very brief. The amendment would allow the chair of the House of Commons Science and Technology Committee to request information from ARIA on its operation. It would place a role for the committee in the Bill. In our view, it is another way to protect ARIA’s reputation.
I am sure the Minister will say that this is unnecessary, as the Science and Technology Committee can always have an inquiry, so we need not bother. This is true, and I agree that ARIA representatives can be questioned, but we should remember the culture of secrecy that the Government are unnecessarily cloaking this organisation with. There is no guarantee that ARIA will feel compelled to respond in full, and it might use this narrative that the Bill is creating around its specialness.
I recall the debate that many of us had when we discussed the National Security and Investment Bill. Several of us were there. There, too, we discussed the need for oversight of issues that might need to remain secret. At the time, the Minister—this Minister, the noble Lord, Lord Callanan—was adamant that the appropriate Select Committee, the BEIS Select Committee, could be empowered to receive secret and confidential information. There was much debate and the Minister was strident in his view that this committee could do that job. The National Security and Investment Bill envisaged the handling of vastly more secret secrets than we are talking about here.
So the idea of trusting the Science and Technology Select Committee to scrutinise ARIA and maintain genuine secrets is consistent with how the Government have already said they want to work elsewhere. For that reason, I expect the Minister to welcome this tidying amendment, which would bring the Bill into line with his thinking on other legislation. I beg to move.
Baroness Chapman of Darlington (Lab)
My Lords, I rise briefly to support the amendment from the noble Lord, Lord Fox. It seems entirely appropriate that this committee should involve itself in asking for information from ARIA. I am fairly confident, given the Minister’s responses so far, that he would not share that view. This is the same theme that we have been on throughout all our deliberations. Whether it is this specific proposal, or one of the others that we have been trying to tempt the Government with, I am sure that we will be back at this in a couple of weeks’ time.
Lord Clement-Jones (LD)
This has been such a short debate that it is barely worth winding up. I will just reinforce the point that this is a cultural issue, in the sense that we are trying to get over here. It was interesting that the Minister made the rather runic comment that ARIA will interact with Select Committees of this House and the other place in the normal way. I think what we are trying to do is underline the fact that we need rather more than that; we need disclosure as well—otherwise, we are worried that we will not get that. Good heavens, the committee might even look at the framework document when it eventually sees the light of day. How about that? That would be quite novel.
One has seen the benefit of committee reports. The Science and Technology Committee has made extremely constructive comments around ARIA and UKRI. It has demonstrated the benefit of parliamentary scrutiny. Why do the Government think that parliamentary oversight is such a bad thing?
Viscount Stansgate (Lab)
I rise briefly to emphasise the points made by both Front Benches and to say that the Government should welcome an amendment that enables ARIA to be subject to investigation by both Select Committees in both Houses. One of the strengths of Parliament is its Select Committee system, and the reputation of the Science and Technology Committee in another place is very high. I think that, when the Government look back on ARIA in 2031, they will rather wish to have put on record their support for amendments such as this, for the reasons given.
Lord Callanan (Con)
Well, it may surprise the noble Baroness, Lady Chapman, to know that I largely agree with what she had to say on this. I agree with the sentiments that Select Committees should continue to scrutinise the work of arm’s-length bodies. However, as the noble Lord, Lord Fox, said, interactions with Select Committees are governed by a different set of rules. They are governed by a long-standing convention set out in the Osmotherly rules, which indicate that members of arm’s-length bodies
“should be as helpful as possible in providing accurate, truthful and full information when giving evidence”
to Select Committees. Furthermore, under the House’s Standing Orders, Select Committees have the power to
“send for persons, papers and records”
relevant to their terms of reference, and for anyone to refuse such a request would be considered contempt of the House.
Finally, as I have said separately, ARIA’s CEO will be personally responsible to the Public Accounts Committee, as the accounting officer. So I do really believe that Select Committees do not need our help in legislation, and probably would not want it, to be able to do their job properly and efficiently. Such guidance is sufficient for ensuring a co-operative relationship between other public bodies and the relevant committees across both Houses. We have not set these things out in legislation before, and I do not believe it should be any different for ARIA.
I hope, therefore, that, with the assurances I have been able to set out—that ARIA will work with Select Committees in the normal way, as other arm’s-length bodies do—it will not be necessary to include any specific provisions in the Bill to enable it to happen.
Lord Fox (LD)
I thank the Minister for his response and noble Lords for their contributions. I shall read closely the exact words in Hansard but, once again, the Minister seems unaware of the culture of suspicion that the Bill will create around this organisation. That did not need to happen and, in the end, the organisation does not deserve to have that as it sets off on its already difficult task. That said, I beg leave to withdraw the amendment.
Lord Callanan
Member’s explanatory statement
This amendment removes the power to treat legislative references to the Advanced Research and Invention Agency as references to another body which will be unnecessary as a result of the power to modify, amend, repeal or revoke those references under the power introduced by the Minister’s amendment at page 4, line 4.
Lord Callanan (Con)
My Lords, the Government have brought forward Amendments 35, 36, 44, 45, 46 and 48 in response to your Lordships’ Delegated Powers and Regulatory Reform Committee’s report on the Bill. I take this opportunity to thank the committee very much for its careful consideration of the Bill and the important scrutiny it has provided. One of its recommendations was that the power to make consequential provision currently contained in Clause 10 is too broad and should be omitted. I have reflected on the committee’s position and consequently given notice of my intention to oppose the Question that Clause 10 stand part of the Bill. Amendment 36 would introduce a much narrower and more specific power to make consequential amendments into Clause 8—the only remaining place it would be required.
So I will start by saying that the power to dissolve ARIA through draft affirmative regulations made under Clause 8 is, I believe, an important part of the Bill. Although the DPRRC also raised concerns about this power, there is a strong policy rationale and a clear precedent for this particular delegation of power. As the power can be exercised only 10 years after the Bill receives Royal Assent, I hope that that will give your Lordships sufficient indication of our long-term commitment to ARIA. We have clearly heard that patience will be essential if ARIA is to successfully pursue its most ambitious research and innovation. It must therefore have the opportunity to prove itself before it is judged. I therefore welcome the Commons Science and Technology Committee’s recognition in its report into ARIA that
“these projects will take a long time, potentially 10-15 years, to ‘bear fruit’”.
In terms of precedent, under powers set out in the Public Bodies Act 2011, several bodies established by primary legislation have been dissolved using secondary legislation. The Administrative Justice and Tribunals Council, for example, was created by the Tribunals, Courts and Enforcement Act 2007 and abolished using powers in the Public Bodies Act in 2013. I of course recognise that the super-affirmative procedure was applied in such instances, but in that particular case this was appropriate in the context of much broader powers. The Public Bodies Act gave Ministers delegated powers not just to abolish bodies but to merge them or change their governance structure and functions. This was also in the context of widespread public body reform, and it was therefore appropriate that the use of the powers was subject to a higher level of scrutiny.
In contrast, the power in Clause 8 is narrow, such that ARIA can only be dissolved. It cannot be merged or have its functions or governance changed in any way, as set out in my response to the DPRRC last week. I hope I have therefore provided sufficient reassurances that this power is justified.
I turn to the revised power to make consequential provision that Amendment 36 introduces. The first thing to say is that consequential provision could now be made in consequence of regulations made only under Clause 8, rather than any provision of the Bill, which represents a substantial narrowing of the previous power contained in Clause 10, which I will oppose.
The second point to emphasise is that, as a result, the power could be exercised only on one occasion, obviously. ARIA can be dissolved only once, and there would be a single opportunity to make consequential amendments in this way. However, ARIA could not be dissolved for at least 10 years, so at least 10 years’ worth of legislation will be passed or made before the power to make consequential amendments could be exercised. It is likely that there will be references to ARIA in those 10 years of future legislation. This amendment extends the power to make consequential amendments to legislation whenever passed or made, so references to ARIA that might appear in future can be removed, leaving a tidy and orderly statute book. I hope that all noble Lords agree that this is a sensible approach.
The final point to make here is that, as a result of this change to the power to make consequential provision, minor and technical changes to other parts of the Bill are required. Amendments 35, 44, 45, 46 and 48 to Clauses 8(4)(e), 11, 12 and 14 fall into that category. These correct the Clause 8 provisions and those on regulations, interpretation and commencement to reflect the replacement of Clause 10. They are consequential on that substantive change and are therefore necessary.
I hope that noble Lords will take a similar view and recognise that, in bringing forward these amendments, we are both taking the right approach and demonstrating the Government’s commitment to engage with and act on the DPRRC’s recommendations. I therefore beg to move.
The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)
I draw your Lordships’ attention to the fact that, in this group, government Amendments 44, 45, 46 and 48 do not appear as government amendments on the printed list.
Lord Fox (LD)
My Lords, I am grateful for the Minister’s comments. Without sounding whiny, this would have benefited from a “Dear colleagues” letter in advance. It caused me a little head scratching over the weekend when I was trying to fathom the purpose of these amendments, which the Minister has now told us. I guess it kept me busy.
We are delighted that the Government have accepted one of the two recommendations of the Delegated Powers and Regulatory Reform Committee. I am speaking to oppose the Question that Clause 8 stand part of the Bill. As the Minister referred to, this is the other recommendation of the DPRRC. That committee was clear in its assessment of the Bill:
“Although ARIA is to be created by Act of Parliament, clause 8 allows Ministers to dissolve it by an affirmative statutory instrument. They cannot do so for another ten years and they must consult ARIA before doing so. They do not have to offer any reasons.”
The DPRRC continues:
“We object to this on principle. If Parliament creates a body, it should be for Parliament to dissolve the body. It should not be for Ministers to dissolve it by statutory instrument, even an affirmative instrument.”
The DPRRC could not be clearer. The Minister’s response to that was simply that he did not agree. We knew he would not agree, but this is a very influential committee and what it says matters.
Although I am calling for Clause 8 not to stand part of the Bill, there are parts of that clause that the Government might want to salvage. This gives the Government an opportunity to come back, perhaps with another lengthy set of amendments on Report. It is a chance for the Minister to accept the view of this influential committee, just as he has on Clause 10.
The Minister will point to the fact that this statutory instrument is affirmative, but he will do so knowing that this is a poor alternative. The dissolution of ARIA will throw up issues—not the sort of issues faced by the organisation that the Minister chose to use as an example of one which a statutory instrument has been used to dissolve in the past. For example, when and if ARIA comes to be dissolved, the fate of assets will be crucial. By then, the taxpayer will probably have poured billions of pounds into creating those assets. Parliament needs a say on how they will be allocated in future yet, as we know, statutory instruments are unamendable—take it or leave it. As I have often rehearsed on other Bills, your Lordships’ House virtually always takes them, sometimes with a touch of regret, but takes them none the less. Primary legislation, however, is amendable. It gives Parliament a role in deciding the fate of the organisation and these assets, which, I remind the Government, the taxpayers have created through their investment. That is just one of the recommendations of the DPRRC. It should be honoured. I beg to move.
Baroness Chapman of Darlington (Lab)
It is a pleasure to follow the noble Lord, Lord Fox. I have a lot of sympathy with what he has to say. We welcome the government amendments, which act on the concerns of the Delegated Powers and Regulatory Reform Committee and remove Clause 10 from the Bill. We can only hope that this is something of a sign of good habits to come and that the Government will prove attentive to the committee’s concerns about other legislation.
On Clause 8, where the Government have chosen not to act on the committee’s objection, rather than repeat everything that the noble Lord, Lord Fox, just said, I look forward to the Minister’s reply. I think the best way to sum up the DPRRC’s concern over the clause is that the Government were designing the law for convenience rather than necessity. It also made the point that, after 10 years or longer of ARIA’s operation, the agency would be well established and dissolving it might be a bit more complicated than Clause 8 suggests. Let us hope that ARIA makes it to 10 years.
We are content with the changes made by this group, but it would be helpful to the Committee for the Minister to respond in a bit more detail to some of the concerns. Can he outline how the Government envisage the winding down of ARIA would be managed? In particular, how would parliamentarians be kept informed and, aside from ARIA, who does he think it might be a good idea to consult before bringing forward regulations under Clause 8?
Lord Callanan (Con)
I can be very brief, because I do not have a lot to add to what I said earlier, beyond acknowledging to the noble Lord, Lord Fox, that it might have been helpful for me to write a “Dear colleagues” letter informing him and other Members that we had tabled these amendments. They did have the information in advance, but it may have been more helpful specifically to draw noble Lords’ attention to it.
In response to the noble Baroness, Lady Chapman, I have set out why we think the power is justified. In terms of asking us to set out further thoughts on how we might wind it down, we have not even established it yet. Beyond taking the power potentially to do this in 10 years’ time, on the specific circumstances in which this might arise and what might happen in consequence, Parliament will clearly be kept informed through the normal statutory instrument process—
Baroness Chapman of Darlington (Lab)
I have to respond because of the mocking tone of the Minister. He said I should not be asking how he would be winding this up—but it was he who put in the clause about winding up the agency that he is trying to create, so I do not think it is unreasonable to press him on exactly how that might be implemented.
Lord Callanan (Con)
Certainly I apologise to the noble Baroness if she interpreted my remarks as mocking: I was not at all implying that. I was just pointing out that we are still in the process of setting up the agency and recruiting the senior leadership team. I am justifying why the power is in the Bill. The noble Baroness asked me to set out further thoughts on how we might write down something that might happen in 10 years’ time. I will write to her if there is any further information, but I think I am correct in saying that not a great deal of thought has been given to how we might abolish something that we have not yet set up. I did not intend a mocking tone: it was just a point of fact.
I do not have anything to add to what I said earlier. We think the power is justified and there is a precedent for this—but I totally accept that this might be a point of difference between us.
Baroness Noakes
“Protection of ARIA’s independence
In exercising functions in respect of ARIA, the Secretary of State must have regard to the need to protect its independence.”Member’s explanatory statement
This new Clause would require the Secretary of State to have regard for the need to protect ARIA’s autonomy.
Baroness Noakes (Con)
My Lords, at the request of my noble friend Lady Neville-Rolfe and with the agreement of the Committee, I will move her amendment. My noble friend had hoped we would have a third Committee day and would go slowly today so that she could move it herself on Wednesday. However, she realised earlier this afternoon that that was not going to be the case, so I agreed to move it. I will be as brief as possible, because this is a relatively small point. The intention of the amendment is to underline the Government’s commitment to the independence of ARIA, and it requires the Secretary of State to protect the independence of ARIA.
My noble friend tabled the amendment because she heard the discussions on our first day in Committee about the purpose of ARIA and its mission, including whether it should be directed to act only in certain areas, particularly in relation to climate change. She was very concerned to ensure that the spirit of ARIA—that it should be unencumbered and able to think the unthinkable wherever it wants to pursue its issues—should be preserved.
Obviously, huge amounts of money are spent on research and development overall by the Government and by other organisations in the economy, all of which are subject to lots of different kinds of checks and balances, and controls and directions. But ARIA is supposed to be very different, and it would be easy to start altering the way in which it worked: for example, by attaching conditions to grants that are made to it, and by constraining or confining what it did, using the powers in the Bill. But ARIA is going to be a success only if it is genuinely independent of government, if it is not dancing to the Government’s tune in any sense, and if it is allowed to go wherever it wants in seeking new areas for research and innovation. I think the Committee understands that ARIA’s independence from government should be preserved.
So this very small amendment underlines the concepts that we believe underlie the creation of ARIA, and I hope that it will be helpful to the Government in enshrining its independence from government. I beg to move.
Baroness Chapman of Darlington (Lab)
I just want to make a quick observation about this. Obviously, we have argued to have climate as ARIA’s overriding priority, and we stand by that—but should that not be the case, this amendment would not cause any problems were it not for the fact that the Government were declining amendments on oversight and scrutiny. I do not think that the two are incompatible. You can have an independent agency, and we would not wish to have government interference, but there is no compromising of independence by allowing for freedom of information or some of the other measures that we have suggested.
Lord Fox (LD)
My Lords, I took the time to discuss this amendment with the noble Baroness, Lady Neville-Rolfe, and I congratulate the noble Baroness, Lady Noakes, on completely representing her views on it—but, strangely, we approach this from opposite directions and land in the same place, similarly to the noble Baroness, Lady Chapman. There is a false dichotomy here. Just because an organisation has a purpose does not mean to say that it cannot be independent. On that basis, it is important for it to be independent, and it is equally important for it to have a purpose—and that purpose should be climate change.
Lord Callanan (Con)
I thank the noble Baroness, Lady Noakes, for her comments and for stepping so ably into the breach to represent my noble friend Lady Neville-Rolfe in her amendment. It is perfectly right that we have returned once again to the central issue of ARIA’s independence, because it is a core part of equipping it for its unique funding approach and for the distinct contribution that we expect it to make to the UK’s R&D landscape.
I support the ambition for the Secretary of State to be mindful of protecting ARIA’s independence in all its interactions with the organisations, where such interactions are required by the Secretary of State’s very limited functions. However, I differ with my noble friend on how we protect its independence in a practical way. I submit that it would be the accumulation of many small things—perhaps creeping influence over strategy, new mechanisms of oversight, or ever-increasing reporting demands on issues of political priority—that would be the arena in which ARIA’s independence would be compromised or lost.
My noble friend Lord Willetts, who is not in his place, spoke eloquently on Wednesday about the challenges he has experienced in trying to carve out space for new approaches in the current R&D system. At that stage, we also had a fairly extensive debate on the accumulated obligations placed on ARIA. We considered how those obligations might be balanced with this vital principle of independence, in the context of amendments which, I believe, would have diminished ARIA’s autonomy in a way that would have been entirely counterproductive. If we truly wish to safeguard ARIA’s independence, it is on those issues that we must look to do it, and there is no easy alternative.
I do not suggest that this is a moment to reopen that debate, but I submit that we cannot have this conversation on independence in an abstract way, divorced from consideration of the practical and operational ways in which it will or will not be given to ARIA. I am sure that there will be plentiful opportunities to discuss this important issue in future. I hope, on the basis of the reassurances I have been able to provide, that my noble friend will, on behalf of my noble friend Lady Neville-Rolfe, feel able to withdraw the amendment today.
Baroness Noakes (Con)
My Lords, let me thank all noble Lords who have spoken. I agree with the noble Baroness, Lady Chapman, that independence is not incompatible with the Freedom of Information Act and other aspects that are included in the proposition for ARIA in this Bill. However, I do not think that independence is compatible with prescribing that it should focus only on climate change. We will have to agree to differ on that point.
The point of this amendment was that the Secretary of State had to respect the independence of ARIA, not that everybody else had to respect that independence, and I am not sure that I got the ringing endorsement of the Secretary of State not interfering in ARIA. However, we have had a good debate, and I am sure that my noble friend Lady Neville-Rolfe will enjoy reading it in Hansard. With that, I beg leave to withdraw the amendment.
Lord Callanan
Member’s explanatory statement
This amendment removes the amendments that would have treated the Advanced Research and Invention Agency as a reserved matter in relation to Scotland and Northern Ireland and funding provided to it through the Science and Technology Act 1965 as a reserved matter in Scotland.
Lord Callanan (Con)
My Lords, the Bill as introduced to the House added ARIA to the lists of reserved bodies within the three devolution Acts. That approach would have conferred on ARIA the same constitutional status as UKRI, which is the UK’s primary public R&D funder. More importantly, it would also have ensured ARIA’s independence by placing it outside the competence of the devolved legislatures.
Since then, my ministerial colleagues and officials have been in close discussions with all three devolved Administrations throughout the passage of the Bill, on the need for legislative consent Motions to be passed in the Scottish Parliament, the Senedd and the Northern Ireland Assembly. During those discussions, principled objections were raised to the creation of ARIA as a reserved body. As a result, we have worked—as I am sure the Committee would expect us to do—to develop an alternative way of guaranteeing ARIA’s independence, through something called the “agreement on the independence of ARIA”, which all four Administrations of the UK have said that they will abide by, and which will sit beneath the overarching memorandum of understanding on devolution.
I am delighted that the text of this document has now been agreed by all four Administrations of the UK and that we have been able to share it with noble Lords in advance of this discussion. I apologise for the fact that we were not able to provide the opportunity for noble Lords to consider this document at greater length before the Committee. However, I wanted to share it as soon as possible, albeit fairly shortly in advance, rather than not sharing it at all. I am confident that this agreement will allow ARIA’s important characteristics to be protected. On that basis, I am content to remove, through Amendments 37 and 40, the reservations that we originally placed in the Bill.
ARIA will remain a single UK-wide organisation able to find and fund the most exciting projects in all regions and nations of the UK. Through the agreement, all four Administrations of the UK have committed to upholding the important principles of ARIA’s strategic autonomy, operational autonomy and minimal bureaucracy.
Lord Lansley (Con)
My noble friend referred to the agreement having been shared with us, but I am not aware of having seen it or where it was shared with me.
Baroness Noakes (Con)
My noble friend also sent a letter to me following last week’s Committee; that was shared only with the noble Lord, Lord Browne of Ladyton. My noble friend’s department has form on not sharing widely with those in Committee when things are circulated. Can he go back to his department to ensure that all active members of the Committee get access to all the information circulated in response to its deliberations?
Lord Callanan (Con)
My apologies—we shared it with those who had contributed to the debate on the subject previously. In retrospect, we should perhaps have shared it more widely; we will now do so.
As my noble friend Lady Bloomfield set out last week, all four Administrations are equally committed to facilitating ARIA’s seamless operation throughout the UK. I hope that this will provide some comfort, in particular to the noble Baroness, Lady Randerson, who raised some important points on this issue at the time. My department will remain as ARIA’s sponsoring department to reflect the power of the UK Secretary of State, who alone has the power to fund ARIA through Clause 4 of the Bill. In our view, the accountability for that use of public money must therefore flow through the UK Government.
In addition to these protections for ARIA’s autonomy, the agreement provides an input mechanism from a new forum of science advisers to the four Administrations of the UK, directly to ARIA’s executive leadership. While there will be no obligation for ARIA specifically to respond to this input, the scientific challenges relevant to the policy priorities of all four Governments will be jointly communicated.
I appreciate that noble Lords have raised questions on how this will work in detail. At the moment this is necessarily a high-level document and clearly there is more work to do, at a working level, to flesh out this agreement between the UK Government and the devolved Administrations. This work is ongoing and will be the subject of further work in the months to come. However, as a result of it, Ministers in Scotland, Wales and Northern Ireland have all now given in-principle consent for the Bill on the basis of this approach. On that basis, I hope that noble Lords will similarly be able to support it. I beg to move.
Lord Lansley (Con)
It was my intention to contribute to this debate briefly. Since the Minister has referred to the agreement, I probably ought to read it and digest it before venturing any additional comments.
I just point out to the Minister that the timing of all this is very odd. As far as I could have seen, and as I understood it in preparing for this debate, as of 9 November the Scottish Minister was not in the position of thinking that there was any agreement with the Government. He wrote to the convener of the Scottish Parliament on 9 November, set out the sequence of events stretching back to March, said that the Scottish Government, like the Welsh Government, were not in a position to agree legislative consent and gave the reasons he would not do so.
These amendments went down on 12 November, I think, so somewhere between 9 and 12 November the Government decided to do this thing. During the course of last week, they must have immediately entered into discussions with the devolved Administrations on the basis that they would give legislative consent. They have made clear all the way through that if it was not reserved, they supported the principle of the Bill and would give legislative consent to it. Now we are presented with this agreement and the consequences.
My noble friend is absolutely right; there are consequences. We had a debate last Wednesday about the role of the Chief Scientific Adviser in relation to the board, and the devolved Administrations have been looking for their chief scientific advisers to have the same status as the United Kingdom Government’s Chief Scientific Adviser. I think that is not what they are looking for now; it clearly would be unhelpful were that to be the case. It would have been helpful to have told us about that in the course of that debate last Wednesday and to have prefigured the fact that we come on to this at a later stage.
At the end of the day, they get money. Unless I am missing something, if you shift something from a reserved matter to a devolved competence, Barnett consequentials flow from that. What are they? How is the budget to be divided? Is it to be divided or is it going to be added to by way of the Barnett consequentials? I think we should be told that. Will that therefore mean that we anticipate that the other devolved Administrations will make grants to ARIA? Does this agreement suggest that there will be a pooled budget with grants made by the Secretary of State but that because of the nature of ARIA’s independence the grants will be in a global sum with few, if any, conditions attached to them and the devolved Administrations are agreeing to that? It begs questions. At the moment, I for one cannot debate the consequences of this set of changes because we do not have the information on which to do it. Even if we maybe let it through on the grounds that it helps to get the legislative consents through, I think we may have to return to some of the consequentials on Report.
Baroness Randerson (LD)
My Lords, I am pleased to follow the noble Lord, because he shares some of my concerns. I thank the Minister for communicating the information earlier today. Obviously I will read the actual agreement with great interest, but of course one accepts the noble Lord’s assurance that this agreement stands and will operate effectively.
The noble Lord, Lord Lansley, raises a good point about the previous objections of the devolved Administrations, which now appear to have been withdrawn. At what date can we expect legislative consent Motions to come forward from the devolved Administrations?
I also have a detailed question. In an earlier debate, my noble friend Lord Fox made the point that having a purpose is not at war with the concept of independence for an organisation. I was thinking of that point as I read the paragraph in the Minister’s communication that says the agreement
“allows for the UK Government Chief Scientific Advisor, and scientific advisors or equivalent representatives on behalf of Scotland, Wales and Northern Ireland to jointly communicate to ARIA the scientific challenges relevant to the policy priorities of their respective administrations. In keeping with ARIA’S autonomy, there will be no obligation for it to direct funding towards these issues.”
That worries me slightly. I am not arguing that ARIA should follow the separate views of the four nations, but if all four nations, via their scientific advisers, were to say to ARIA that one of the most important government priorities should be the road to zero carbon—I very much hope they would say that—would the Government really be happy for ARIA to invest in and champion a technology that increases CO2 emissions? There are serious, fundamental points, rather than points of detail, that we still need to take into account on ARIA’s purpose and it working with the grain of government policy—not dotting every “i” and crossing every “t” but working with the grain of public policy.
Finally, I underline the concerns and questions about Barnett consequentials. I will not repeat the point; it is absolutely clear that this will have implications. I look forward to the expressed views of the devolved Administrations and the detail of the agreement when it becomes public. Given the information we have been given today, I am sure it will be possible for us to scrutinise it before Report.
Baroness Chapman of Darlington (Lab)
It was slightly surprising to get this agreement so late in the day. Although I have seen that it exists, I cannot pretend that I have properly digested it or discussed it with colleagues in, for example, the Welsh Assembly. I would have been very keen to do that. It is very clear that a legislative consent Motion was not going to be forthcoming as things stood and that if the Government wanted ARIA to embark with support from the devolved Administrations they had to do something. There is now this agreement.
I would accept the Minister’s assurance, but can he clearly confirm that this agreement is not just his but has been reached with the devolved Administrations and that they are all fully signed up to it, before we allow this to go through? My life will not be worth living if I go back to my office and find that we have agreed to something that has not secured the full support of—to pick one at random—the Welsh Assembly. I would really appreciate it if the Minister could confirm that. Can he also speak to this issue of Barnett consequentials, which I had not considered would be part of the debate? How do the Government think this would or would not have any consequentials for funding for the devolved Administrations?
Lord Browne of Ladyton (Lab)
My Lords, I rise to be genuinely helpful to the Minister. It appears that I am the most privileged Member of this Committee; everyone’s correspondence seems to be copied to me, although I am not sure if in this case it was a privilege, as I got it exactly one hour and five minutes before the Committee was due to sit. It has a draft agreement of 19 clauses, one of which refers to other agreements—too many for me to count in the small print I have on my phone—so I have not given it any serious consideration.
I think it was copied to me because I raised a question in an intervention to seek assurance that all aspects of this legislation that engaged with devolution issues had been agreed with the devolved Administrations. It turns out that there were at least aspects still under discussion. I understand that that can happen. I suggest that, because of the complexity of this, the Government arrange a meeting, between now and the next time most of us meet again at the next stage of this Bill, with interested parties to explain the situation with devolution. If the Government agree that there are Barnett consequentials—even if they do not, but can be persuaded that, in not agreeing, they are wrong—they can then say how they will deal with that significant complexity.
We must thank the noble Baroness, Lady Randerson, and the noble Lord, Lord Fox, for raising in some detail last time we met where we stand on all these issues. None of us was comfortable with any of this and none of us was as sited as the Government were of everything that is going on. At the very least, there should be the offer of some engagement with Members of this Committee who are interested in these issues and would raise them in some context on Report. This should happen in sufficient time before Report for it to be meaningful, so that some of these matters, which may lend themselves to simple enough explanations, can be put to bed.
Lord Fox (LD)
My Lords, this has obviously been an unsatisfactory semi-debate. That dissatisfaction has rung out in various corners of the Room. The advice of the noble Lord, Lord Browne, seems good; if we continue on our current trajectory, Wednesday afternoon will have some time in it. I will not repeat the questions which have been raised, but I add another which we would like to address on Wednesday afternoon when the Minister calls us together to explain. Is this outwith the framework agreement process? Is there a separate process going on? I add that to the list of unanswered questions.
Lord Callanan (Con)
I thank noble Lords for their comments. First, on the agreement, the text has been agreed by Ministers in Scotland, Wales and Northern Ireland. I thought it best to share it as soon as possible; I wanted to share it in advance—it was not far in advance but it was slightly in advance—rather than not share it at all. We originally committed to sharing it ahead of Report; I will ensure that all noble Lords have the opportunity properly to scrutinise it ahead of that and we can return to the issue then. Once noble Lords have had an opportunity to discuss it, I would be very happy to arrange a further briefing with officials for anyone interested in this subject.
Lord Callanan
“Income Tax (Earnings and Pensions) Act 2003
6A_ In section 61L(1) of the Income Tax (Earnings and Pensions) Act 2003 (meaning of “public authority”), after paragraph (b) insert—“(ba) the Advanced Research and Invention Agency,”.”Member’s explanatory statement
This amendment provides for the Advanced Research and Invention Agency to be a public authority for the purposes of Chapter 10 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (workers’ services provided through intermediaries to public authorities or medium or large clients).
Lord Callanan (Con)
Amendments 38, 41 and 43 are consequential on the omission of Clause 10 from the Bill and the narrowing of the power we talked about earlier to make consequential amendments through regulations. The Delegated Powers and Regulatory Reform Committee suggested that any necessary consequential amendments should be added to Schedule 3, so we are responding to that recommendation here. The amendments apply to ARIA a set of relevant obligations that would usually apply to “public authorities”, which are sometimes defined in reference to Schedule 1 to the Freedom of Information Act 2000, which, of course, ARIA is not listed in. Bespoke provisions therefore are required.
I will briefly summarise the obligations that will apply to ARIA as a result of these amendments. The first relate to the Income Tax (Earnings and Pensions) Act 2003 and the Social Security Contributions (Intermediaries) Regulations 2000, with which I am sure all noble Lords are intimately familiar. This legislation includes the off-payroll working rules, which are designed to ensure that individuals working like employees but through their own company—usually a personal service company—pay broadly the same income tax and national insurance contributions as those who are directly employed. These rules have been reformed over the past five years to improve compliance by moving the responsibility for determining whether the off-payroll working rules apply from the individual’s personal service company to the client engaging them. That reform came into effect in the public sector in April 2017, and in the private and voluntary sectors on 6 April this year. I do not believe that there is a justification for ARIA to be treated differently from any other public bodies here.
The second element is the Data Protection Act 2018, which gives the GDPR effect in UK law. Through the Bill as it was introduced, ARIA would already be subject to the normal requirements of the GDPR, but the obligations on public authorities are different, in terms of the bases for data processing and governance and oversight arrangements. Similarly, in this case, I do not believe that there is a justification for ARIA to be treated differently from other comparable bodies in this important area.
Finally, the amendments to the Enterprise Act 2016 and Small Business, Enterprise and Employment Act 2015 allow us to avoid a situation where ARIA is considered part of the private sector for the purposes of business impact assessments of regulatory activities. Again, I do not believe that it is appropriate for impacts to ARIA, as a public sector body, to be included in any such considerations. I also do not believe that it would be appropriate for ARIA to avail itself of the support available through the office of the Small Business Commissioner, which is intended for private sector entities. So, while public authority obligations in other legislation have been considered, they were not assessed to be sufficiently relevant to ARIA to make further amendments here. I beg to move.
Lord Clement-Jones (LD)
My Lords, there is a splendid irony in what the Minister has just said as he trotted through the contortions of these amendments. I think he had a former life as a contortionist: it was quite extraordinary, really.
I do not think that these amendments are consequential; I think they are “Oops, we forgot something, actually”, as far as the Bill is concerned. Because of the way they treated the FoIA, suddenly everybody woke up to the fact that, for the purposes of that, ARIA was not a public body, because the Government had been so keen not to define it as a public body and therefore it had to be defined as a public body for the purposes of other legislation in a rather different way. So I do not think that this is consequential—except that it is something that probably should have been thought about when the original FoIA omission decision was made. No doubt everything will be clear after Report: the Minister will have his definition of a public body, everything will be logical and clear, and we will not have to have contortions such as this.
Baroness Chapman of Darlington (Lab)
I thank the noble Lord for his explanation, which I find rather more digestible than the Minister’s. It would be very inconsistent of me not to make this one point: we would not need to be going through all of this had the Government done what they ought and subjected ARIA to FoI. It shows what a strange decision it was that the Government have had to do all this. I just wanted to make that point, really. I do not think there is much more to say about all of this except that, should the Government change their mind, or have their mind changed, on Report, we might have to have this kind of carry-on again as a consequence. Let us hope that we do.
Lord Callanan
Member’s explanatory statement
This amendment removes the amendments that would have treated the Advanced Research and Invention Agency as a reserved matter in relation to Wales and funding provided to it through the Science and Technology Act 1965 as outside the functions of the Welsh Ministers.
“Small Business, Enterprise and Employment Act 2015
10A_ The Small Business, Enterprise and Employment Act 2015 is amended as follows.10B_ In section 7 (sections 4 to 6: interpretation), in subsection (2), for the definition of “public authority” substitute—““public authority” means—(a) a public authority within the meaning of the Freedom of Information Act 2000 (see section 3 of that Act), or(b) the Advanced Research and Invention Agency;”.10C_ In section 22 (sections 21 and 23 to 25: “qualifying regulatory provisions” etc), in subsection (8), for the definition of “public authority” (but not the “and” immediately after it) substitute—““public authority” means—(a) a public authority within the meaning of the Freedom of Information Act 2000 (see section 3 of that Act), or(b) the Advanced Research and Invention Agency;”.10D_ In section 27 (sections 21 to 25 etc: interpretation), in subsection (6), for the definition of “public authority” (but not the “and” immediately after it) substitute—““public authority” means— (a) a public authority within the meaning of the Freedom of Information Act 2000 (see section 3 of that Act), or(b) the Advanced Research and Invention Agency;”.10E_ In section 28 (duty to review regulatory provisions in secondary legislation), in subsection (4), for the words following ““public authority”” substitute “means—(a) a public authority within the meaning of the Freedom of Information Act 2000 (see section 3 of that Act), or(b) the Advanced Research and Invention Agency.”Enterprise Act 2016
10F_ In section 13 of the Enterprise Act 2016 (definitions used in Part 1), in the definition of “public authority”—(a) omit “or” at the end of paragraph (a);(b) after paragraph (b) insert “, or(c) the Advanced Research and Invention Agency.”Data Protection Act 2018
10G_ The Data Protection Act 2018 is amended as follows.10H_ In section 7 (meaning of “public authority” and “public body”)—(a) in subsection (1), after paragraph (b) (but before the “and” at the end of that paragraph) insert—“(ba) the Advanced Research and Invention Agency,”;(b) in subsection (4), for “described in subsection (1)(a) or (b)” substitute “described or mentioned in subsection (1)(a), (b) or (ba)”.10I_(1) Section 21 (definitions for purposes of Chapter 3 of Part 2) is amended as follows. (2) In subsection (5), in the definition of “FOI public authority”—(a) omit “or” at the end of paragraph (a);(b) after paragraph (b) insert “, or(c) the Advanced Research and Invention Agency.”(3) At the end insert—“(8) In relation to the Advanced Research and Invention Agency—(a) for the purposes of subsection (6)(a)—(i) section 3(2) of the Freedom of Information Act 2000 is to be read as if “public authority” included that Agency, and(ii) section 3(2) of the Freedom of Information (Scotland) Act 2002 (asp 13) is to be read as if “authority” included that Agency, and(b) subsection (7) does not apply.”Social Security Contributions (Intermediaries) Regulations
10J_(1) In regulation 3A of the Social Security Contributions (Intermediaries) Regulations 2000 (S.I. 2000/727) (meaning of “public authority”), after paragraph (b) insert—“(ba) the Advanced Research and Invention Agency,”.(2) In regulation 3A of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000 (S.I. 2000/728) (meaning of “public authority”), after paragraph (b) insert—“(ba) the Advanced Research and Invention Agency,”.”Member’s explanatory statement
This amendment inserts amendments of the Small Business, Enterprise and Employment Act 2015, the Enterprise Act 2016, the Data Protection Act 2018 and certain regulations to treat the Advanced Research and Invention Agency in the same way as a body that is a public authority for the purposes of the Freedom of Information Act 2000.
Lord Callanan
“UK GDPR
12_(1) In Article 2 of the UK GDPR (material scope), in paragraph (5)(d), for “and (7)” substitute “to (8)”.(2) In sub-paragraph (1), “UK GDPR” has the same meaning as in the Data Protection Act 2018 (see sections 3(10) and 205(4) of that Act).”Member’s explanatory statement
This amendment is consequential on the Minister’s amendment at page 13, line 35, so far as it inserts section 21(8) of the Data Protection Act 2018.
Lord Callanan
Member’s explanatory statement
This amendment is consequential on leaving out Clause 10.
Member’s explanatory statement
This amendment is consequential on the Minister’s amendment at page 4, line 29.
Lord Callanan
Member’s explanatory statement
This amendment is consequential on the Minister’s amendment at Clause 8, page 4, line 4.
“(1A) Before regulations may be made under this section, the Secretary of State must lay before Parliament a copy of the framework agreement outlining—(a) the relationship between ARIA and the Department for Business, Energy and Industrial Strategy,(b) the relationship between ARIA and any other relevant government departments, (c) the interaction between ARIA and existing research and development, innovation, translation and funding institutions; and(d) any further relevant reporting requirements of ARIA.”Member’s explanatory statement
This amendment would require the Secretary of State to publish a copy of ARIA’s framework agreement before regulations can be made to commence the substantive parts of the bill.
Lord Fox (LD)
My Lords, this is the last group of amendments in Committee, and it is probably just as well, because if the Minister has any more jelly babies I suspect he will go into a coma. We have established through both our useful meetings with him and Second Reading that the framework agreement is a crucial document to point the way to how ARIA will operate and its future relationships. Without knowledge of that document, we are being asked to approve all manner of clauses, as we just have, that set ARIA in motion before we know how it will operate—actually, before we know what it is.
With Amendment 47, my noble friend Lord Clement-Jones and I are offering the Minister an alternative to the Government’s magical mystery tour approach. Remember that this tour comes with a ticket price of £800 million of taxpayers’ money—and that is just the start. The Minister is loading us on to his metaphorical charabanc, ready to go who knows where, flat cap in place. The amendment is intended to remove some of that mystery. Thanks to it, before the vehicle can be put in gear, we must at least be told where we are going.
I have perhaps laboured that image a little much but, as I said, it is the last group. More prosaically, the amendment would require the Secretary of State to publish a copy of ARIA’s framework agreement before regulations can be made to commence the substantive parts of the Bill. It continues our theme of ensuring that Parliament has sight of, and an appropriate say in, the progress of this important institute, and it would do so without impeding ARIA’s progress or meddling with its future. In this way, the Minister can remove the mystery without harming the magic, so I beg to move.
Baroness Noakes (Con)
If ARIA does not exist until the Act is commenced, how can there be a framework agreement that involves ARIA being a party to the agreement to be tabled before the commencement of the Act?
Lord Clement-Jones (LD)
My Lords, I do not need to do very much more. My noble friend is finishing this symphony of a Bill Committee con brio, with metaphorical charabancs, mystery and magic. What more do we need at the end of a Bill stage?
I point out that the equivalent UKRI document of 2018 runs to 60 pages and 16 chapters. It covers a huge range of information: the purpose of UK research and innovation, its powers and duties, its aims, the partnership principles, and the responsibilities of the CEO. It then goes on to deal with devolution and relationships with other bodies, public appointments to UKRI, reviews of boards and committees, and so on. There is some really important content in the UKRI framework document, and I am sure that the ARIA document will not be very different. I very much hope that the Minister will reconsider the decision. On the arrival of the CEO, the Minister said that it followed the Treasury’s standard template. Even something in draft, which does not have to be agreed by the CEO, would seem fundamental to our understanding of what ARIA is going to do.
Viscount Stansgate (Lab)
My Lords, I support Amendment 47, tabled by the noble Lords, Lord Fox and Lord Clement-Jones. I feel at a bit of a disadvantage, if I can say to my noble friend Lord Browne, that I have no Daily Telegraph article that I can quote in support of what I am about to say. Perhaps he has one in his pocket and he can pass it along.
The relationships between different parts of the scientific landscape do matter. One interesting thing about the period that we have lived through in the past year and a half has been the changing nature of the role and influence of the Government’s Chief Scientific Adviser. We had a brief mention of that in Committee last week. Amendment 47 refers to the types of relationships that ARIA might have with UKRI, but in particular I would be interested in anything that the Minister might have to say about the relationships between ARIA and the new science and technology council established by the Prime Minister, in which the Chief Scientific Adviser is of course a major figure. Then there is the existing Council for Science and Technology, in which the Chief Scientific Adviser is also involved, and the new Office for Science and Technology Strategy, which has been set up only recently, in which again the Chief Scientific Adviser is involved. Indeed, he is not only the Government’s Chief Scientific Adviser—he is now the Government’s Chief Technology Adviser.
We discussed last week why it had been put in the Bill that the Chief Scientific Adviser should be a member of the board of ARIA. I shall not rehash an old debate, but it is an important role. Undoubtedly, any Member of this Committee or anyone who chairs a Select Committee in this House or another place will want to examine the framework document in detail at a hearing, and I would welcome what the Minister has to say about how that document and how relationships between ARIA and others will focus on the Chief Scientific Adviser.
Baroness Chapman of Darlington (Lab)
Committees go in cycles: they can get very serious, but we are now getting towards the end, where consideration can descend into banter, if we are not careful. That is not something that I thought I would experience at this end of the building, but it is quite welcome.
I understand exactly where the noble Lords, Lord Fox and Lord Clement-Jones, are coming from with this, taking into account what the noble Baroness said. The framework document has been referred to so many times during our consideration; it has done a lot of heavy lifting, yet we have not been able to see a draft of it. That is something that I regret, because it would have been useful to know about it. We got lots of assurances about what it will and will not do, but we have not seen a draft that will enable us to test that or tease it out. That is a shame, and I think that is what is behind the amendment.
It is not great when the Government do this and ask a Committee to take these things on trust, or to take the intention. It is not how it is best for us to work. We take these things and our role in this process seriously, and we want to know how ARIA will operate in relation to the departments and bodies outlined in the amendment.
Lord Browne of Ladyton (Lab)
I remind the Minister that, not so long ago, he secured Amendments 37 and 40 on the basis of the sight, by a limited number of us, of a draft agreement. It is not unreasonable to ask him to at least consider reciprocating.
Lord Callanan (Con)
I thank Members who have contributed to this brief debate. I am disappointed that the noble Lord, Lord Browne, did not exercise us again with his Daily Telegraph subscription, which I was very impressed by. I congratulate the noble Lord, Lord Fox, on saving the best to last with his bravura amendment. He has obviously been searching his thesaurus over the weekend for appropriate analogies. It was well moved and I do understand the seriousness of the issue and the noble Lord’s intention, which relates to the desire, as we have heard, to understand more details of how ARIA will work in practice.
As I mentioned at Second Reading, ARIA’s framework document is a governance document. It is a standard requirement for public bodies—which, of course, ARIA will be. As suggested in the noble Lord’s amendment, it will set the parameters for ARIA’s relationship with BEIS, as its sponsoring department. That is indeed its very purpose.
The noble Lord, Lord Clement-Jones, referred to the guidance published by Her Majesty’s Treasury, and I reassure him that, by drawing on the Treasury’s guidance, ARIA’s framework document will ensure that the agency and BEIS work effectively together. It will outline ARIA’s accountability, its decision-making and its financial management structures, along with some broader reporting requirements. However, it is not the appropriate place to codify ARIA’s relationship with other government departments. Other departments have no accountability relationship with ARIA, so its terms of engagement with them are a question of strategy rather than governance. The framework document will not contain any information relating to ARIA’s strategy in terms of collaboration, its project portfolio or indeed, its areas of research interest, all of which, I know, are of great interest to noble Lords.
On the sequencing of publication and commencement, given that both ARIA and the department need to be in agreement on the framework document, I reiterate, as I said at Second Reading, that it is therefore not possible to finalise it before ARIA’s senior leadership is in place, as my noble friend Lady Noakes, pointed out. It is not possible for the framework document to be published in advance of ARIA coming into legal existence. Similarly, the framework document for UKRI, for example, was finalised and published after that body came into legal existence.
Finally, it is worth noting that framework documents are live publications and are amended regularly to reflect any changes in the sponsor department or indeed the arm’s-length body itself, and they are all thoroughly reviewed every three years.
On the point raised by the noble Viscount, Lord Stansgate, on whether the framework document will outline the role of the Government’s Chief Scientific Adviser on ARIA, it is likely to. I will be happy to write to the noble Viscount with any more detail that I can on that.
I hope therefore that noble Lords understand that, in our view, there is a logical process to follow in the establishment of a public body and therefore that they will accept my assurance that we will publish the finalised framework document as soon as practicably possible.
Lord Fox (LD)
I have a couple of questions before the Minister sits down—or rather, I will now respond. The Minister seeks to downplay why we should be interested in the framework agreement, but the noble Lord, Lord Willetts, when he was in his seat, specifically asked about the relationship between UKRI and ARIA. That is just one question; there is a lot of interest in this and a lot of need to know. So the Minister should acknowledge that this is important to people and to organisations that are, in turn, important to this country.
I have a second point on which I would like an answer. I assume from what the Minister said that the sequence is: first, appoint a chief executive and then appoint the person to whom the chief executive reports. I still find that an interesting sequence, but certainly both those people will be asking what our relationship is with, for example, UKRI—or with others, as set out by the noble Viscount, Lord Stansgate.
It seems to me that either the Government will have an answer to that question during the recruitment process, or they will say, “Well, please yourself”. I suspect they have an answer and, just as the noble Lord, Lord Browne, said, trusting us with the draft of how that question will be answered would be completely reasonable and something that we would appreciate. With that said, I beg leave to withdraw the amendment.
Lord Callanan
Member’s explanatory statement
This amendment is consequential on the Minister’s amendment to leave out Clause 10.
Advanced Research and Invention Agency Bill
Tuesday 14th December 2021
(3 years ago)
Lords ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 69-I Marshalled list for Report - (10 Dec 2021)
18:48 - Division on Amendment 1 - Ayes: 166 / Noes: 153 - Amendment 1 agreed.
19:59 - Division on Amendment 6 - Ayes: 126 / Noes: 134 - Amendment 6 disagreed.
Lord Browne of Ladyton
“(ba) financial support provided by ARIA may be treated as convertible to equity interest in the business entity which has received such support; (bb) for a period of ten years after ARIA has provided financial support, or made property available, the business entity which has received such support must obtain the consent of ARIA before—(i) transferring specified intellectual property rights from the United Kingdom to any territory outside the United Kingdom, or(ii) selling or otherwise transferring a controlling interest in that entity to another entity not resident in the United Kingdom;”Member’s explanatory statement
This amendment would enable ARIA to make it a condition of the provision of financial support to a business that it is convertible into an equity interest in the business and that, for 10 years after ARIA has provided financial support, or made property available, the business requires the consent of ARIA either to transfer abroad intellectual property rights or to sell or transfer a controlling interest in that business to another business not resident in the United Kingdom.
Lord Browne of Ladyton (Lab)
My Lords, Amendment 1 would enable ARIA to make it a condition of the provision of financial support to a business that it is convertible to an equity interest in the business and that for 10 years after ARIA has provided that financial support, or made property available, the business requires the consent of ARIA either to transfer abroad intellectual property rights or to sell or transfer a controlling interest in that business to another business not resident in the United Kingdom. I am grateful for the support from my noble friend Lady Chapman of Darlington and the noble Lords, Lord Morse and Lord Clement-Jones, who have added their names as supporters of the amendment. I am especially grateful to the noble Lord, Lord Morse, who prepared the first draft of the amendment—although, anticipating that its drafting may be criticised, I make it clear that I take full responsibility for its revised form.
In moving Amendment 1, I support the other five amendments in the group in the name of the noble Lord, Lord Lansley, and have added my name to Amendments 2 and 8. I am pleased that these amendments have been grouped, as they are a response to the same concern. The House will be pleased to hear that I do not intend to rehearse the arguments that I advanced in Committee. I am grateful for the support that I received then from the noble Lords, Lord Fox, Lord Lansley and Lord Broers, and my noble friends Lady Chapman and Lord Stansgate.
Yesterday, I and other noble Lords received a letter from the Minister, which I will come back to later. First, I will explain exactly what the amendment would do, because it is relevant to the letter, which was extremely welcome; it covers the issues that have been raised and shows that those who have amendments in this group have common concerns with the Government —we are broadly on the same page. The degree to which we differ is marginal now, and much less than it was at the beginning of these issues being raised in Committee. So that is progress, but I do not think we are yet where we want to be.
This amendment is to Clause 2, headed “ARIA’s functions”. It would amend Clause 2(4) to add to the conditions that in particular, in exercising its functions, ARIA may attach to financial support or making property available to other parties. It would do this in the context of a clause which has six subsections, five of which are permissive, including that being amended. They are permissive to the extent that they set out what ARIA may do and are designed to give ARIA the flexibility needed for it to carry out the challenging function it is charged with.
However, Clause 2(6) is instructive. It requires ARIA to have regard in exercising its functions to the desirability of doing so in a way which, as the Minister summarises it in his letter, ensures that
“public investment in research and innovation should drive long-term socioeconomic benefit and deliver overall value to UK taxpayers”.
That is a very good summary of what is required, and it is demanded of ARIA by this section of the Bill.
By going to the permissive elements of ARIA’s function, these amendments go beyond willing the end; they help ARIA by willing the means, specifically in relation to intellectual property. This amendment would do so by ensuring that the successes of ARIA stay for a sufficiently long time in the hands of those who have the UK’s best interests at heart.
I thank the Minister for his letter, and I welcome the invitation to a meeting with the Minister for Science, Research and Innovation, George Freeman, and himself to discuss further the concerns that underlie these amendments. I accept, as the letter says, that these concerns are broader than just this Bill, but we only have this Bill to deal with today and they are very significant in the context of what we are asking ARIA to do.
I thank the Minister not only for that invitation but for the all-Peers session that he arranged on 1 December to brief noble Lords on the devolved Administration agreement and ARIA’s governance. Those who attended were delighted that George Freeman turned up unexpectedly and generously shared with us, candidly, his views about several matters relevant to the establishment of ARIA and the policy implications of setting it up.
I was very pleased that, in response to a question about ownership of intellectual property posed by the noble Lord, Lord Lansley, the Science Minister shared his concern about the risk that publicly funded research and innovation may lead to foreign, as opposed to British, private or public gain—the issue at the heart of these amendments and mine in particular. We all now know that the Science Minister shares the concern that lies behind this problem. In fact, he shares it so much that he deflected the specific question about intellectual property and said, “I am much more worried about a very successful ARIA development falling into the hands of foreigners”.
In Committee, I pointed out that twice before the Committee stage I had tried to engage the Minister on this very issue—what is happening in the United Kingdom and has been happening for some time to some of our best and brightest businesses, and the effect it is having on our ability to apply these developments to the benefit of the United Kingdom. I even quoted on one occasion the concerns of the Bank of England about the way in which those businesses are funded and the damage this leveraged debt might do to the UK economy in the long term, but I could not engage the Minister on these issues. I was repeatedly told that we are an open economy that welcomes this investment, when in fact, in most cases, it is not investment at all
Lord Lansley (Con)
My Lords, as the noble Lord, Lord Browne of Ladyton, said, there are six amendments in this group, five of which have my name. I am grateful to noble Lords who have also put their names to those amendments, including the noble Lords, Lord Browne, Lord Ravensdale and Lord Broers, and the noble Viscount, Lord Stansgate. I am particularly grateful to the noble Lord, Lord Broers, not least because of the impetus I derive from his contributions in our Committee debates—about the centrality of the acquisition, use and deployment of intellectual property to ARIA’s activities being central to its task. If I may be so presumptuous, I am looking forward to hearing some of the noble Lord’s arguments again, if he has the opportunity, because I am sure he will convey the arguments behind a number of my amendments better than I could. If it is not impertinent on my part, let me say that we will miss his counsel and advice when he retires from the House at the end of this week, and I am glad that we have the opportunity of hearing his advice today before that happens.
I draw noble Lords’ attention to one simple fact: at present, nothing at any place in the Bill refers to intellectual property. It refers to property and rights, and I suppose Ministers might say, entirely correctly, that they are within that thought. But intellectual property is the essence of what ARIA will be doing. As the noble Lord, Lord Browne of Ladyton, said, the Minister most helpfully sent us a letter explaining the centrality of intellectual property activities. Ministers wish for ARIA to devise its own strategy for the intellectual property it creates. For that to happen, as the noble Lord, Lord Browne, said, we want the Bill to make it clear to ARIA, in law, what its powers and responsibilities are. The powers it needs in relation to intellectual property need to be specified.
There are other ways in which Ministers have decided to say that ARIA can set conditions for its financial support, but it does not refer to the conditions relating to intellectual property. Ministers can attach conditions to the grants and funding they give to ARIA, but those do not refer to intellectual property; listed in the schedule are the supplementary powers that will be available to ARIA to do various things, including create partnerships and join ventures and companies, but they do not refer to intellectual property.
The purpose of five amendments in this group is to fill those gaps; Amendments 2 and 3 propose that when ARIA is providing financial support to its research projects, among the conditions it can apply are those relating to the acquisition, disposal, retention and assignment of intellectual property. It clearly ought to be able to do those things. Ministers may say that of course it can because it has the necessary powers. So why are other things specified but not this, since it is central to its activity?
When we look, for example, at the supplementary powers in the schedule given to ARIA, various things are mentioned. It can
“borrow money … acquire and dispose of land … accept gifts … form and participate in partnerships … and … form companies;”
but the schedule does not refer to the ability to acquire, retain, assign, license or dispose of intellectual property and related rights. Indeed, even where it refers to acquisition and disposal of land, as we discussed in Committee, it does not refer to land or other property. These, it seems to me, are all the ways we should better define, in legislation, what ARIA’s powers are.
I have left out one amendment. Amendment 8 relates to the Secretary of State providing grant funding to ARIA. Clause 4 says that this may be subject to conditions, and the only condition which is then referenced is the provision under which sums paid by the Secretary of State to ARIA may be repaid with or without payment of interest.
We have not been provided with, is the framework document that will establish the relationship between the Treasury and ARIA as a publicly funded body. That being the case, if we regard something as important enough, should we put it in the legislation so that it has to be addressed in the framework document? When ARIA, as a result of its funding, has rights relating to intellectual property, can it retain the revenue derived from that investment, or does it have to give that revenue back to the Secretary of State? The frame- work document will, I suspect, provide a reference to this; we know this is important.
In my former constituency, the Laboratory of Molecular Biology, which the Medical Research Council provided funding to, had major research projects, including with highly talented individuals who created immense value. They were enabled to participate in those projects and retain some rights in that intellectual property, and the LMB itself retained revenues which then, by way of negotiation, served to enhance and sometimes substitute for the grant funding received from the Government. If ARIA is to have a strategy for the funding it receives from the Government, it needs to know in advance whether it can retain revenue derived from investment. Can it retain it, or does it have to give it back to the Government? All Amendment 8 does, essentially, is require the Government, when they provide such grants, to set out under what circumstances that revenue can be retained by ARIA for further investment in additional projects to meet its functions or whether it has to pay it back to the Government.
That is where I want the most specific assurances from my noble friend that the Government will provide that opportunity to ARIA. In the absence of that, at a later stage, when we reach Clause 4, depending on the nature of the assurances I receive from my noble friend, I may wish to test the opinion of the House. But we will leave that for a later moment.
For the moment, I am very glad to express my support for what the noble Lord, Lord Browne, said. There is a wider issue, of course there is, but we do not really know the extent, for example, to which the National Security and Investment Act is enabling Ministers to intervene and to protect intellectual property in this country. In any case, that is in relation only to national security issues, and the intellectual property that we are concerned about here will inevitably go much wider.
Lord Broers (CB)
My Lords, I thank the noble Lord, Lord Lansley, for his kind remarks. I have spent most of my life in this environment working on very complicated projects, and I feel very strongly about this issue. I therefore support Amendments 2, 3, 21 and 22, which would secure ARIA’s rights to retain and exploit the intellectual property generated by its research and to obtain intellectual property from elsewhere in order to advance its projects. As I have mentioned before, the projects that ARIA will be working on will draw upon knowledge from all over the world. It is unlikely—almost impossible—that it can generate all its own intellectual property. The world has changed; that is not the way high technology develops today.
It is also of prime importance to the creative engineers and scientists working on ARIA projects that they feel that their creativity is recognised. There are various ways in which this recognition can be granted, but the most straightforward is for them to receive financial benefit, usually through shared ownership of the intellectual property. High-technology companies and universities have found it effective to have a fraction of the income from patents and other intellectual property go to those who create the intellectual property. This creates a sense of fairness and generates loyalty. The result is highly motivated employees who are not tempted to keep their ideas to themselves and go elsewhere where they can be more fairly treated. This is essential. There is massive competition for the top technological brains in this country. We will not get them into ARIA if they think that they will be entangled in a whole lot of bureaucratic government regulations that prevent them from getting the benefits of being entrepreneurs who are free in the world.
I notice that Amendment 17 seems designed to deal with such errant behaviour—how dare they consider doing such things?—but this sort of thing has its dangers, in that its very existence shows that the organisation does not trust its employees, even encouraging them to take their talents elsewhere. It happens with everybody. When you are working on a project, you suddenly have a brilliant idea. You know that you have cracked the nut and really opened up a way for progress, and your first thought is, “My God, I could be rich if I took this off and formed my own company”.
This happens with big companies. I spent a lot of time in IBM, which had to be terribly careful because it provided huge resources for people to make immense progress, but at the same time we did not want people, when they made that progress, to be immediately motivated to leave and exercise that somewhere else, and make more money; I am afraid that money is a motivation. In IBM, in essence you got points towards quite a lot of money when you invented something. You also got a very large award if you did something that opened new pathways in a technology, over and above your salary.
That is the way a company such as IBM in the great days, and Bell Labs subsequently, kept their brilliant people working there. ARPA has that reputation. You will be treated fairly, do well and get paid a lot if you work in ARPA or DARPA; they are prestigious places to work. I imagine that ARIA will be just like that; it will be a prestigious place to work and there will be lots of reasons for that. At times, there has been concern in the UK about the brain drain out of the country. Of course, this has been largely because the incomes offered to creative engineers and scientists have been higher elsewhere, but it is also because it has been perceived that their creativity will receive more recognition.
Those are my remarks on intellectual property for the noble Lord, Lord Lansley. That is the core of what we are doing; it is the intellectual output. It is a very familiar feeling among academics.
I also support Amendment 1, because I believe that it should help to arrest the flow of technology businesses that originate in ARIA being acquired by overseas businesses, which is a concern that everybody has. I just wonder whether 10 years is sufficient time for this to be effective. There are two very important examples of our losing, or potentially losing, outstandingly successful companies originating entirely in the UK.
The first is Arm, which designs the microelectronic chips for the majority of the world’s portable information and communications equipment. Founded in 1990, it went public in 1998, and was then acquired financially by Japan’s SoftBank for about $32 billion in 2016, 26 years after it was founded. If conditions similar to those in this amendment had been in place in the UK, it would have had little or no effect, and its effect would have been even smaller today in preventing the threatened takeover by the US company Nvidia, which began in 2020. Fortunately—as an aside—the American Federal Trade Commission looks as though it may prevent that takeover anyway because of the threat it presents to world competition in the semiconductor business.
The second company is Solexa, which was based on the fundamental research of Balasubramanian and Klenerman in Cambridge that enables the high-speed decoding of DNA. They obtained their initial seed funding to form Solexa in 1998, and in 2000 Solexa’s corporate facilities were established. Solexa was then acquired by Illumina in early 2007, and now generates billions of dollars of revenue. The conditions of this amendment might have slowed if not stopped this takeover. The amendment would help to retain businesses emerging from ARIA in the UK, but it is also important to enhance the activities of the Competition and Markets Authority, which is looking at that, to solve this problem much more widely in the UK. The loss of Solexa was a laughable mistake— one of the most exciting companies in the most exciting scientific field being pursued, and we just wave it goodbye.
We have to fix these problems. I will vote for these amendments if they are put to a Division.
Viscount Stansgate (Lab)
My Lords, I rise to speak in support of Amendment 2, to which I have added my name, and the other amendments in this initial grouping. I begin by paying tribute to my noble friend Lord Broers, who, as the House now knows, will leave this House at the end of this week. He is president of the Parliamentary and Scientific Committee and, as noble Lords can see for themselves, he has carried on, to the very end, making excellent arguments for science. I thank the Minister very much for the letter and the offer of further discussions and a meeting with the Minister for Science, which I welcome.
In view of the points that others have made, I will be very brief. As has been said more than once in its passage through your Lordships’ House, the Bill is more about an idea or experiment than it is about anything concrete—at least at this stage. No one, including the Government, can be entirely sure what will happen after we establish ARIA and it sets out to fulfil its mission. We can probably all agree that this is what makes it an exciting venture. But one thing that we can be sure of is that, if it all goes well, ARIA will amass a great deal of intellectual property over the next 10 years, and it will certainly be dealing with successful ideas about which we know nothing as yet.
So these amendments—Amendment 2 in particular—are essential to enable ARIA to benefit from the intellectual property that it creates, and we must ensure that, whatever it comes up with, its intellectual property cannot be sold off or acquired by others without its agreement. Not to agree this amendment would run a risk that I do not think we should run.
Lord Morse (CB)
I too will speak to support the amendment advanced by the noble Lord, Lord Browne, who has explained it very clearly. It is worth getting back to basics on it—if I may use that expression—for a second. The ARIA scheme is about driving our national research frontiers forward by publicly funded risk taking, if I can summarise it as simply as that. It is a good idea that is widely supported.
But this is the reverse of what will happen if foreign-owned companies are allowed to acquire companies that own intellectual property derived from ARIA or to take that intellectual property offshore. If this happens, the reverse of the objective of the scheme will be achieved. This possibility is not far-fetched. I spent 10 years as Comptroller and Auditor-General at the National Audit Office, and, during that time, I saw cases relating to a series of companies where exchange of control provisions in the hands of government were not exercised properly or the scheme was administered rather feebly. As a result, these things became faits accomplis and the property went offshore. Sometimes, you would be told, “Well, we believe in the market operations, so we really don’t like to interfere with this sort of thing”.
Actually, we need strong, clear decision-making about this now. We need to make it clear in this amendment that we are not prepared to see intellectual property that has been paid for by British taxpayers go offshore. It makes mugs of British taxpayers.
Baroness Neville-Rolfe (Con)
My Lords, I rise to cast some doubt on Amendment 1. It is very well intentioned, but I fear that it may be mistaken. The background to my concern is my regret that ARIA is modest: some £200 million a year is being provided, which is a pinprick compared with the vast sums spent on other things, such as Covid and bailing out the banks.
The Bill is meant to set up an agency that can take risks free from bureaucracy and the day-to-day constraint of politics—a latter-day Manhattan Project, if you like. Bureaucratic and other constraints are being applied to the R&D budgets of many billions in the hands of UKRI. That is fine, but I do not think that they have a place in ARIA, which should be run leanly and efficiently and not encumbered by expensive experts—on IP, for example—and large legal departments. It should be able to think and act outside the box.
So I object to the provision in paragraph (bb)(ii) in Amendment 1, and I am slightly surprised that the noble Lord, Lord Clement-Jones, has signed the amendment, because we generally agree on these IP issues. However, I agree with my noble friend Lord Lansley that we need to know whether ARIA can keep the income that it receives from IP and rights. To answer his question, I see IP and rights as being in the same box—but no doubt the Minister will clarify that when he speaks.
Lord Bethell (Con)
My Lords, I will speak to the centrality of intellectual property to the Bill and, in particular, on two themes, very briefly. First, on the protection of intellectual property, the noble Lord, Lord Browne, spoke very movingly and interestingly about the concerns that were brought up by George Freeman in the meeting that we had. It was reassuring to hear George Freeman speak so clearly and emphatically. That is why Amendment 2 is very interesting and worth a really good look.
I am very concerned that, in our efforts to build Britain into a science and research superpower, all that we will be is a laboratory for others to borrow from and that we will simply supply the unicorns of the future from overseas. Somehow, we have to capture that value here in the UK.
The second point, which the noble Lord, Lord Broers, spoke so movingly about and selected such a good example of, is about how we encourage the breed of entrepreneurs that I hope will come out of ARIA. We must encourage this. We should not have something like Amendment 17, which somehow suppresses the entrepreneurialism of our researchers and scientists. I have been to Kendall Square on the MIT campus, next to the Harvard campus, which is buzzing with excitement, with start-ups and major new enterprises feeding off the intellectual energy of those great universities. That is what we need to have here in the UK.
On Clause 1, I am torn between my noble friends Lord Lansley and Lady Neville-Rolfe, who both put their arguments so well. I would like to split the difference and agree with the noble Lord, Lord Browne, that these are things that I would like to hear about from George Freeman from the Dispatch Box. That argument has merit.
Lord Clement-Jones (LD)
My Lords, I am largely going to speak to and support Amendment 1. I commend the noble Lord, Lord Browne, for raising these important issues on the question of ARIA’s ability to impose investment conditions. Unlike the noble Baroness, Lady Neville-Rolfe, I do not see those as bureaucratic constraints.
One key issue in delivering technology into the market in this country is the commercialisation and translation of that technology. We have seen report after report telling us about that. The UK is a top nation for the global impact of its R&D but not so effective at innovation, where it ranks 11th in the world for knowledge diffusion and 27th for knowledge absorption, according to an October 2021 report by our own BEIS department. The greater risk averseness of the VC and private equity market for technology start-ups in the UK compared to that of the US is common ground in the investment community itself; we need to hang on to our unicorns. As a result, outside fintech, we have seen too many high-technology companies sold to overseas companies at too early a stage. We have heard examples from the noble Lords, Lord Broers and Lord Morse—and, in Committee, the noble Lord, Lord Browne, took the risk of quoting the Daily Telegraph.
The National Security and Investment Act will impact on that to some extent, but in a limited number of sectors involving national security. Without this kind of scale-up support we cannot become—to coin the phrase so often used by this Government—a science and tech superpower by 2030. This excellent amendment will, I hope, ensure that those making decisions about future financing at least have some friction in the system to ensure that they have to think twice about where and how to raise capital for the future; at the same time, it gives ARIA skin in the game to help it do so. The Minister has said in correspondence that he shares the objectives of this amendment, so I hope that he will agree at the last stage to accept it.
As regards the other amendments by the noble Lord, Lord Lansley, in this group, I agree in principle with many of the issues that he has raised and the support for intellectual property rights that should be retained by ARIA in certain circumstances. He had powerful support from the noble Lord, Lord Broers, whose expertise we are certainly going to miss when he retires from the House.
As the noble Lord, Lord Browne, says, we have only this Bill today. We cannot solve all the problems relating to the taking of stakes by companies or our research institutions, but we can put this into ARIA’s terms; I very much hope that we will do so today.
Baroness Chapman of Darlington (Lab)
My Lords, I find myself listening to some excellent speeches and frantically scratching sections from my own contribution as I do not see the point in repeating the points that have already been made. I put on record my thanks to my noble friend Lord Browne, in particular, for his generosity with his expertise and time in working so collaboratively on this issue, which has support on all sides. The principle is very simple: the state is taking a big risk by granting funds to speculative research projects. In cases where that risk pays off—we hope that is not an infrequent event, but we understand that this is about high-risk ventures—ARIA should have the ability to protect the potentially significant benefits that will arise from initial taxpayer support. It seems equally appropriate that ARIA has a say in potential takeovers or transfers of intellectual property. We know that there is a big market for speculative purchases of new technology. While ARIA may decide that there is no public interest in preventing certain events from taking place, there might be other investments that should be safeguarded.
It is clear from the debates that we have had in Committee and this evening that there is a shared desire on all sides—including, to be fair, from the Minister—to deal with this issue. He has correctly observed previously that the problem we are trying to fix is not limited to ARIA; that is understood and agreed with. However, while the amendment by the noble Lord, Lord Browne, does not fix everything, that does not mean we should not try to fix the thing that is in front of us now. It moves us in the right direction and is appropriate given the specific activity of ARIA; the Opposition are solidly in support of Amendment 1.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
I thank noble Lords for what has been an excellent and very well thought-through debate. While the noble Baroness, Lady Chapman, was lucky enough to be scratching bits from her contribution, I found that I was adding lots more to mine to take account of some of the excellent contributions. The debate showed the House at its finest, even if I do not necessarily agree with all the points raised, as I will outline.
Amendment 1, introduced by the noble Lord, Lord Browne, imposes a number of conditions on ARIA’s financial support. He made his case well, raising a number of important issues regarding the UK’s approach to capturing value from public investment in R&D, the role of public IP retention within that, the Government’s powers to intervene in acquisitions and our approach in so doing. I have listened carefully to all the contributions made by noble Lords on this matter, and I think that there is some measure of common agreement. We are all agreed that public investment in R&D should indeed drive long-term socioeconomic benefit and ultimately drive value to UK taxpayers who are funding it. We are clear across this House that exploitation of IP will play an integral role in creating these benefits, and that our paramount concern should therefore be generating the maximum public value from that exploitation; I will return to that specific issue shortly.
The debate that we have had today on the benefits derived from public investment in R&D speaks to a much wider issue, which extends beyond intellectual property, ARIA and this piece of legislation. I respectfully say that I do not think that Report on the Bill is the most effective forum for setting precedents to this very expansive and wide-ranging area of government policy. While I will do my best to address the range of points raised this evening, the Government’s approach to foreign investment and how IP rights are treated within the public funding disbursed across the entirety of our considerable R&D system are indeed extensive areas of policy.
I recognise that there is some common ground, as the noble Lord, Lord Browne, has set out—although perhaps not as much as he might have indicated. As he said, I offered to facilitate a meeting with the Minister for Science, Research and Innovation, who came along to our all-Peers meetings to discuss these issues in the round. I still believe that this is the correct forum to discuss this issue in sufficient breadth—something that I do not think could be provided through this amendment to the proposed arrangements for ARIA alone. I suspect that the noble Lord will not be satisfied with my offer but nevertheless I repeat it here.
I have welcomed the insightful contributions of noble Lords in the scrutiny of the Bill so far, and I recognise the importance of Amendment 1 in providing a vehicle for this debate, but I hope that the noble Lord, Lord Browne, will recognise that this represents an unusual and strong restriction and we would have serious concerns as to its proposed workability.
To respond directly to the noble Lord’s amendment, let me set out the Government’s current position. The UK is a premier destination for foreign direct investment. I recognise the concerns the noble Lord has expressed about the current context and the issue of leveraged loans highlighted by the Bank of England, but, in general, I think we all have to recognise that this investment brings tangible economic benefits and the Government are rightly cautious about introducing wider powers to act on the grounds of public or economic interest, as such an approach could destabilise investment into the UK, reduce economic growth and ultimately, therefore, risk jobs and prosperity.
Lord Browne of Ladyton (Lab)
My Lords, I thank the Minister for the care he has taken in responding to this debate and I thank all noble Lords who have contributed to it. I find myself in the position—other than in the Minister’s case—of saying that I agree with everything everyone else said, and I include in that the noble Baroness, Lady Neville-Rolfe. I agree with everything that she said, other than that she has, with respect to both her and the Minister, made the same mistake in that they characterise this amendment as imposing or mandating behaviour on the part of ARIA. With respect to both of them—I pointed this out in my opening remarks to the Minister—this is a misreading of the Bill.
The amendment is placed in a position which does not mandate or impose anything. It enables ARIA to choose what it wants to do but directs its attention to what all contributors to this debate have made clear is an issue of necessity as far as they are concerned if we are to achieve what this letter I have received from the Minister expresses as our common objective—that is, to generate the greatest public value from ARIA’s exploitation activities which will be publicly funded. There is a common understanding that if these exploitation activities fall into the hands of businesses that are based abroad, large amounts of money and great improvements in our society and our socioeconomic affairs will be denied to the people of the United Kingdom. There is no doubt about that.
Lord Ravensdale
“(7) In exercising its functions ARIA must give due consideration to the following—(a) compliance with the duty imposed by section 1 of the Climate Change Act 2008 (UK net zero emissions target),(b) adaptation to climate change, or(c) meeting other environmental goals (such as restoration or enhancement of the natural environment).”Member’s explanatory statement
This amendment seeks to include the UK’s net zero target and environmental goals as matters which ARIA must give due consideration to when exercising its functions.
Lord Ravensdale (CB)
My Lords, in moving Amendment 4 I will speak to Amendment 19, in my name. I declare my interest as a director of Peers for the Planet and as an engineer and project director with Atkins.
I thank my supporters who have signed these amendments, the noble Baroness, Lady Chapman, and the noble Lords, Lord Browne and Lord Oates. Alongside them, I thank the noble Baroness, Lady Brown, and the noble Lords, Lord Lansley and Lord Broers, for their invaluable support and advice throughout this process. Like others, I pay tribute to the noble Lord, Lord Broers. His will be a huge loss to the House; we will much miss his expertise. I particularly pay tribute to his work leading the All-Party Parliamentary Engineering Group, which is all about getting schoolchildren excited about engineering and exposing them to the latest ideas. It has made a huge difference, as I know from the involvement of a school that is local to me. Maybe one day we will see some of those children pushing new frontiers with ARIA—who knows?
I spoke at Second Reading and in Committee on the progenitor organisation for ARIA, DARPA. In 2013, DARPA took the gamble of awarding a small firm called Moderna $25 million to develop the idea of using messenger RNA to make vaccines. So I had reason to be personally thankful for the work of DARPA at the weekend, having received my Moderna booster on Saturday. I could also mention the GPS technology that guided me to the vaccination clinic, and the internet that I used to book the appointment—innovations that were both seeded by DARPA. DARPA has literally changed the world in so many ways, creating trillions of dollars of value. We all look forward to ARIA doing the same within the UK.
Starting with Amendment 4, I thank the Minister for taking the time to meet me to discuss the amendment, and for all the work that he and his team have done to investigate its implementation. As I stated at that meeting, I want to clarify a potential misconception about my amendments. I am not seeking to implement a mission or purpose for ARIA. I listened carefully to what the Minister said in Committee. It is clear that the Government want to maintain flexibility for ARIA, and so I have withdrawn my original Committee amendment, which attempted to implement one. Instead, I am looking to put a “have regard to” statement in the UK’s primary strategic goal of climate and the environment, similar to the other statements in Clause 2(6) of the Bill on ARIA’s functions, which talk about economic growth, promoting scientific innovation and improving quality of life. ARIA would still be free to choose whatever missions it likes within the constraints of Clause 2(6) and this proposed new subsection, as the Government intend.
Part of the argument for this amendment is consistency. The Government have sought to implement similar climate and environmental amendments across a whole range of recent legislation—the Skills and Post-16 Education Bill, the Pension Schemes Act and the Financial Services Act—and these are all “have regard to” amendments. My amendment uses the same wording as these amendments, specifically using wording from government amendments to the skills Bill.
I know that the Government want to ensure that they are taking a systems view of net zero, with climate as a golden thread through all relevant legislation. This certainly is relevant, given that we know how important R&D is to our net-zero and environmental targets and how important ARIA could be to those. As we know, the International Energy Agency stated that almost half of the needed emissions reductions for 2050 are expected to rely on technologies that have not yet reached the market. This is a great opportunity for the Government, given the focus on delivery post COP. It is a minor but beneficial amendment which would ensure that the organisation has regard to the primary strategic goal of the UK, but which does not detract from what the Government want from ARIA overall.
Amendment 19 simply calls for ARIA to develop its own environmental and social governance, or ESG, strategy, to consider the impacts of the exercise of its functions and the projects which it funds. It would allow the board of ARIA to consider their own strategy for alignment with the environmental and climate goals, and so is consistent with the other amendment. I note that other government-created bodies are also developing ESG strategies. For example, the FCA recently published an ESG strategy, and the national infrastructure bank has a requirement to develop an ESG strategy in its framework document. Bringing ARIA in line with other government organisations would again ensure consistency and that it is playing its part in the principal strategic goal of the nation.
Finally, these points relate to a substantive proposal that the Minister has offered relating to both amendments, so I look forward to hearing his proposal in detail when he sums up. I beg to move.
Amendment 5 (to Amendment 4)
“(d) meeting Sustainable Development Goals 1 (no poverty), 2 (zero hunger) and 3 (good health and wellbeing).”
Baroness Bennett of Manor Castle (GP)
In moving Amendment 5 in my name, I will briefly comment on Amendments 4 and 19. Had there been space in our procedures, I would have attached my name to Amendment 4; I note that it has broad cross-party support. It addresses the Climate Change Act and imposes a legal requirement to comply with the duty of Section 1 of that Act, which concerns net-zero emissions. That is an important and good way of expressing it, and I hope that we will see that eventual outcome.
Amendment 19 talks about ARIA having an ESG strategy. This would not be my preferred way forward. In a way, it is better than nothing, and I see the point that was made by the noble Lord, Lord Ravensdale, about lining up with other vaguely similar institutions. However, we have seen a great deal of criticism of ESG as not always being a very strong or effective tool.
My Amendment 5 calls for ARIA to include sustainable development goals 1, on poverty, 2, on zero hunger, and 3, on health and well-being. These are internationally recognised and accepted goals, with targets within them to which the UK, like every country on this earth, is signed up. Surely these should be the goals of every element of the Government, both direct and arm’s-length parts.
I thank the Minister and his staff for engaging with me in discussions on this, but before I get to that I want to address why it is so important to talk about poverty, health and hunger in this ARIA Bill. When people talk about what ARIA will achieve, very often it sounds as if we are talking about Silicon Fen, often known as the “Cambridge cluster”—the region around Cambridge which has so many high-tech business, including software, electronics and biotechnology. But if you look at the reality of life in Cambridge, the top 6% of earners take home 19% of the wealth generated in the city, and the bottom 20% of earners get 2% of the wealth generated in the city.
I encourage noble Lords, if they have not yet seen it, to have a look at an article in the Guardian by Aditya Chakrabarti, who visited a foodbank in Cambridge recently. In his reflections there, he noted that this is a tiny city with a population half the size of a single London borough, yet in one postcode in Cambridge you can expect to live until 87. In a postcode just down the road, it is 78. This is the kind of development that has delivered a miserable life for many, many people. This is why I tabled this amendment.
In the discussions that I mentioned with the Minister and his staff, which raised some very interesting issues, they pointed me to Clause 2(6) of the Bill, which states that, in exercising its functions,
“ARIA must have regard to the desirability”
of various things. Clause 2(6)(c) states that one of those is
“improving the quality of life in the United Kingdom”.
I would be very interested to hear from any noble and learned Lords who might be able to assist me. I am not a lawyer and I am not quite sure what the legal definition is of “quality of life”. I suggest that it is open to political contention and discussion. More than that, in the context of what I was saying about Cambridge, whose quality of life are we talking about? That is a very important question to ask. In your Lordships’ House, I often comment on the Government’s pursuit of GDP as a goal in itself, but here we are talking about quality of life, which surely has to include a distributional element.
That was my purpose in tabling this amendment. I was asked whether I intended to put it to a vote. Given that I called a Division yesterday, and given that I have not had as much time as I would have liked to devote to thinking it through and finding a form of words that really works, it is not my intention to put it to a vote. However, I would be very interested to hear from the Minister what the Government mean by “quality of life” in Clause 2(6)(c). Do the Government acknowledge that that has to address distribution as well as GDP growth? I cannot see any way that it could not. If the Minister is looking for a way of measuring this, I point him to the Living Standards Framework used in New Zealand, which directs the New Zealand Treasury and the actions of the New Zealand Government. That is a good measure of the quality of life. I beg to move.
Lord Oates (LD)
My Lords, I rise to support Amendments 4 and 19 in the names of the noble Lords, Lord Ravensdale and Lord Browne of Ladyton, the noble Baroness, Lady Chapman of Darlington, and myself. I commend the noble Lord, Lord Ravensdale, in particular for his tireless work on this issue. I too join in the tributes to the noble Lord, Lord Broers, and wish him well in his retirement. I also have some sympathy with the intention behind the amendment of the noble Baroness, Lady Bennett, which raises very important and wider questions, but I am going to focus on Amendment 4.
As the noble Lord, Lord Ravensdale, has said, a number of Acts of Parliament that have gone through this House have had “have regard” amendments relating to climate change made to them. I was pleased to be a signatory to the cross-party amendment to the Financial Services Bill, which the Government substantially accepted in this regard. This point of consistency is extremely important. However, I would have preferred it if the Government had been willing to accept a stronger amendment on the purpose of the organisation, but I recognise that political pragmatism is wise on occasion.
In Committee, we had a very useful discussion about whether the agency would benefit from the sort of mission and focus that helped the Defence Advanced Research Projects Agency in the United States—mentioned by the noble Lord, Lord Ravensdale—achieve its success. The noble Lord, Lord Lansley, told us that DARPA’s mission had been to not be taken by surprise by new technology and, perhaps by implication, to surprise others with the advanced technology of the United States. That may well have been the mission, but the purpose of the mission was surely what drove DARPA’s success: to maintain the national security of the United States against the threat of Soviet communism. It is that purpose which provided DARPA with its edge, its sense of urgency and an understanding of the stakes of the mission on which it was engaged.
While Soviet communism posed an existential threat to our freedom then, today the threat we face from climate change and ecological destruction is even more acute: an existential threat to life itself. Surely, there can be no more profound purpose to drive our new advanced research agency, no greater focus to inspire research, innovation and the practical application of science, than that of tackling a threat to humanity itself.
Baroness Neville-Rolfe (Con)
My Lords, it is a great delight to hear from the noble Lord, Lord Ravensdale, who brings his business acumen and passion for both innovation and climate change to the feast. We have discussed these together often in Peers for the Planet.
We have the climate change Acts, and a huge amount of attention is paid to climate change in every part of government life and in their multi-billion-pound R&D budget. ARIA is a small, independent body and should be left to decide what is most important to our future and to the inventive opportunities that it is set up to create. That might include climate change, health, poverty or the quality of life. Technology, for example, improves our lives, but it also brings risks. ARIA should be left to decide what is most important. It should be able to think completely outside the box and make its own choices, and not be bound by precedent. I am afraid that I am therefore sceptical about these amendments.
Lord Clement-Jones (LD)
My Lords, the noble Lord, Lord Ravensdale, the noble Baroness, Lady Bennett, and my noble friend have made a compelling case for supporting this amendment, based on the climate and ecological emergency that we face. Tackling those challenges will require massive innovation and ingenuity and the development of practical applications from that. If ARIA has the bold, independent, innovative culture that the Minister emphasised throughout Committee, then it must be the ideal vehicle for this research, and we should spell it out. We should make ARIA an essential component of the net-zero strategy.
Baroness Chapman of Darlington (Lab)
My Lords, I am grateful to the noble Lord, Lord Ravensdale, for bringing back his amendment on these important issues. It has been a real pleasure working with him and hearing from him throughout the debates on this Bill. In Grand Committee, Labour proposed making addressing climate change a core purpose for the first two years of ARIA’s existence. It is, after all, one of the greatest challenges, if not the greatest, that we face, and it is science and technology that we look to for new tools and solutions. We were disappointed by the Minister’s response to that suggestion and to the proposals put forward by other noble Lords. We feel this is of critical importance, so we would be prepared to support Amendment 4—depending, of course, on what the Minister has to say.
The noble Baroness, Lady Bennett of Manor Castle, has tabled Amendment 5, which seeks to promote three of the UN sustainable development goals, which Labour supports. My noble friend Lord Collins of Highbury looks for any opportunity to press the Government to secure progress on them, domestically and overseas. Without wanting to soften the Minister’s cough—as I think we say where we are both from—I am sure he will say that the Bill is not the correct vehicle. However, whether or not there is a vote, the Government should understand that amendments such as this, which embed climate as a golden thread in legislation, will be put forward by noble Lords and Members in the other place at every opportunity.
Lord Callanan (Con)
My Lords, I thank the noble Lord, Lord Ravensdale, for his productive engagement on the amendments in his name, as well as others for contributing to this important debate. Clearly, this issue matters to us all. I will start by exploring the intention behind the amendment. If it is to signal the importance of climate action, of course there is no disagreement between us on that. It is clearly an issue of the utmost strategic importance to this country, and that is reflected in the Climate Change Act, which marks the UK as the first major economy to pass laws to end our contribution to global warming by 2050. Our statutory obligations and ambition on this issue could not be clearer, and they do not need to be marked elsewhere. I do not believe that we should add to this legislation to signal our general intent. It is not appropriate for any provision to be added to a Bill unless it has an actual effect.
The alternative is a statutory duty that seeks to influence—and therefore constrain—ARIA’s activity in some way and, as drafted, the amendment would do so in a very sharp sense. I am grateful to the noble Lord, Lord Ravensdale, for his willingness to engage with the concerns that I put to him and explore alternative ways to achieve his objectives. I have raised these points with him directly, so for the benefit of others I will outline my position—with apologies to the noble Lord, who has heard all this before.
There are well-rehearsed arguments that I have put forward against a defined climate mission. I remind noble Lords that UKRI, through which the overwhelming majority of our public R&D funding is delivered, funds a full portfolio of projects focused on tackling climate change. Where there are specific research and innovation needs to support the Government’s strategic priorities in this area, UKRI delivers across: adaptation and resilience; clean energy; and sustainable industry, agriculture and transport. I think we are all aligned behind the idea that ARIA should complement, not duplicate, our existing capabilities. That is why this amendment is rightly presented now as a more general obligation. The excitement and support that ARIA has generated within the research community has been based on its different model of funding, with agility and risk appetite absolutely central to all the recommendations of how and why ARIA should be created.
ARIA should not be focusing on the scale-up and exploitation of known technologies, for climate change or indeed any other government priorities; noble Lords with expertise in this area will know well that the extent of its funding, at £800 million over five years, makes it completely unsuitable to play such a role. ARIA will contribute by focusing its programmes on the most ambitious objectives, and funding high-risk research and innovation to achieve them. When ARIA finds solutions to these hard problems or gathers learnings along the way, they will be adapted and applied to other fields in different contexts: that is where the benefits to our climate ambitions are likely to be felt.
Breakthroughs in materials science led to huge progress in what is possible in terms of battery storage or fusion. Those technologies are now critical to the energy transition, but much of the original research was not done with that goal in mind. Being prescriptive limits the scope to take completely novel approaches, as we hope and expect ARIA will do. Placing this obligation on ARIA requires us to answer the question: who will assess whether the radical breakthrough targeted by an ARIA programme might—in future, in some way—contribute to our climate goals?
The National Audit Office will assess the regularity of ARIA’s spending each year, which would include this addition to its funding. Is it well placed to make this assessment? That is not intended as any slight at all on the NAO—I am sure the noble Lord, Lord Morse, will be glad to hear that. However, I submit that even the researchers and innovators steeped in a technology cannot predict how it might evolve or be applied in the years to come. That is the nature of innovation and high-risk research. Essentially, it is unknowable. Adding this provision to the Bill asks us to make that essential assessment not only knowable but justiciable. Whoever performed the assessment of whether ARIA’s activities fell within the scope of this obligation would have their judgment subject to judicial review.
I strongly suggest that the actual effect of this amendment would be to push ARIA towards objectives where the assessment would be clear cut. It would disincentivise risk-taking, new approaches or exploring the application of technologies in unusual or unprecedented contexts. I submit that it would work against the grain of everything we are seeking to achieve with this organisation—
Lord Lea of Crondall (Non-Afl)
Is it not a fact that, although the Minister believes that we cannot make concrete commitments on method, we now have some very concrete commitments on outcomes? Glasgow is the best example of medium-term commitments. Unless we monitor those against the metric—the Minister will know that he used that word some months ago—how do we get around the following dilemma? We have concrete commitments on outcomes in a lot of areas but are now putting quite serious dilemmas—I am not saying it is nit-picking—before ourselves as to how we can make sure that we are on track to go where we are trying to get to.
Lord Callanan (Con)
I thank the noble Lord for his contribution. I am not 100% sure of the point that he is making. I agree with him that we have concrete commitments, but we have a well-defined track of a number of strategies heading towards those commitments. In the Bill we are talking about funnelling one small part of our R&D funding into a separate agency, while seeking to take novel, innovative approaches to research and development.
I have cautioned against placing this obligation in the Bill but that does not mean that it is unimportant for ARIA to have an awareness of these issues, as the noble Lord, Lord Ravensdale, articulated so forcefully. I am pleased that many noble Lords attended the briefing we held where my colleague George Freeman, the Minister for Science, Research and Innovation, discussed this. It is not plausible that any appropriate CEO candidate for ARIA would be ignorant of the opportunities connected to net zero within research and innovation. There is a similar situation with regard to Amendment 5 and the sustainable development goals, raised by the noble Baroness, Lady Bennett of Manor Castle.
As a result of the ongoing discussions that we have had on this issue during the passage of the Bill, I am able to commit now that, as an alternative, ARIA will evaluate itself against the pillar of the 2021-25 greening government commitments most relevant to this amendment on mitigating climate change by working towards achieving our net-zero environmental goal. This would be included within the framework document; ARIA would therefore be required to consider this objective from its very first cycle of reporting and evaluation.
I also agree that it is through its projects, and its funding, that ARIA’s greatest contribution to our net-zero objectives will be made. I can therefore also commit that ARIA would have regard to its projects contributing to our climate change targets and environmental goals. This is distinct from the sustainability reporting framework and should sit alongside it as a broader obligation, rather than being part of that evaluation process. That consideration would again be included in ARIA’s framework document. In my view, that is the appropriate place for such requirements, which relate to the effective governance of the organisation and its alignment to wider public sector objectives, as it can be more readily updated to reflect changing circumstances or priorities.
Baroness Bennett of Manor Castle (GP)
I apologise; the procedure is a little different and more complicated because I put down an amendment to an amendment. It is not my intention to respond substantively to the Minister’s response to Amendment 4. The noble Lord, Lord Ravensdale, has consistently championed Amendment 4 and variations of it, so it is most appropriate that he responds on that one. I should just say that I failed to declare earlier that I am a member of the committee for Peers for the Planet. On Amendment 5 and my side of this, I do not think the Minister responded to my question about defining quality of life. I realise this may be a legally complicated matter, so will he commit to write to me about this and lay a copy of the correspondence in the Library?
Lord Callanan (Con)
Regarding the noble Baroness’s question on the definition of the quality of life—we are getting into a very esoteric debate for this time of night—I do not think there is a technical definition specific to her suggestions that I can point towards. It is not in such common usage but, if I can find an appropriate definition, I will of course send it to her.
Baroness Bennett of Manor Castle (GP)
I thank the Minister for his answer. I want to make one other point very quickly. He talked a lot about the hard sciences. It is interesting that, when we had a private discussion with a number of his colleagues, there was also a lot of focus on what might be described as the softer biological sciences and issues such as plant health and the human microbiome. I hope those will be considered within ARIA’s remit. I beg leave to withdraw my amendment.
Lord Ravensdale (CB)
My Lords, I am most grateful to the Minister for his proposal and for ensuring that ARIA will be asked to demonstrate through integrated reporting how sustainability is an essential characteristic within its strategic objectives, operations and policy-making. I believe that this proposal meets the intent of my original amendments through implementation in the framework document. It will ensure that ARIA has regard to the areas set out in my original amendment; it will be asked to consider and demonstrate how it has met them. In particular, as he said, it will ensure that ARIA has regard to its projects contributing to our climate change targets and environmental goals. Through working together with the Government, we have reached a good compromise on this issue. I again thank the Minister, his team and my supporters and beg leave to withdraw my amendment.
Lord Clement-Jones
“(7) ARIA is a public authority within the meaning of section 3 of the Freedom of Information Act 2000, and Schedule 1 to that Act is amended accordingly.”Member’s explanatory statement
This amendment would subject ARIA to Freedom of Information requests.
Lord Clement-Jones (LD)
My Lords, Amendment 6 is in my name and that of my noble friend Lord Fox, the noble Baroness, Lady Chapman, and the noble Viscount, Lord Stansgate. As my noble friend said in Committee, without the FOI amendments, ARIA would follow in the footsteps of a very small number of institutions that currently do not have Freedom of Information Act obligations. I will not extensively rehearse all the arguments, but suggest that the organisations involved, which include the Royal Family and security and intelligence bodies, are not natural bedfellows to ARIA. The Minister complained about the burdens for ARIA of responding to FOI requests but nowhere, not even in Dominic Cummings’s evidence to the Commons Science and Technology Committee last February, was the FoIA identified as an obstacle to ARIA’s success.
The Minister has continually highlighted that ARIA is modelled on DARPA. ARPA was subject to the US Freedom of Information Act and DARPA is subject to it as well. This has not prevented them achieving the successes which the Government wish ARIA to emulate. We talked in Committee about the equivalent number of requests received before the restructuring of the research bodies, which were exactly equivalent to those of DARPA. The argument that DARPA charges fees falls away too. The main classes of requester—the news media and educational staff—and requests in the public interest are not charged. In practice, only commercial requesters have to pay.
As I said in Committee, there is no question that, under the FoIA, ARIA’s research programme could be prejudiced, given the clear exemptions under the Act for research interests. In Committee, the Minister gave away the real reason for the Government’s refusal to include ARIA under the FoIA. He illustrated his general contempt for freedom of information legislation, saying:
“From my point of view, it is a truly malign piece of legislation”,
and that
“there must be many hundreds of civil servants engaged in doing nothing other than responding to these fishing expeditions”.
It looks like this is personal—or is the truth that the Government find the daylight shed on them by the FoIA truly inconvenient, and ARIA is just the start of an erosion of FoIA rights?
Transparency is crucial for all our public institutions. ARIA will be in receipt of a substantial amount of public funding—£500 million over the next three years—so there are compelling grounds for its inclusion. Coming under the FoIA is an essential part of retaining public trust.
As regards Amendment 7, which relates to procurement, the Minister said in Committee that:
“When ARIA is commissioning and contracting others to do research for it, it will be operating in a fundamentally different way from traditional R&D grant-making where procurement rules do not apply.
In my view, it is therefore appropriate for ARIA to be given freedom from procurement rules to ensure that the agency has greater flexibility in its contractual arrangements.”—[Official Report, 22/11/21; cols. GC 147-49.]
If ever I heard a circular argument, that was it.
Why are the Government having to perform drafting contortions to exclude ARIA from these procurement requirements in the Bill? Why on earth should ARIA not be subject to exactly the same procurement regime as other public bodies? UKRI is subject to rules and procures and commissions services, including research services. What makes ARIA so different? I beg to move.
Viscount Stansgate (Lab)
My Lords, I rise to speak to Amendment 6, to which I added my name. This is a subject I raised at Second Reading, but I reassure the noble Baroness acting as the Whip that, on this occasion, she can relax; there is unlikely to be any need to interrupt me on the grounds that I have gone on too long, because I want to be very brief.
There are two reasons why ARIA should be subject to the Freedom of Information Act. The first is one of principle. Public bodies set up in statute should be subjected to the same FOI requirements as apply elsewhere. In this country, I submit that FOI legislation is an essential safeguard in the political world in which we now live. To reject this amendment will send a bad signal and set a bad precedent. I even suggest to the Minister that he may reconsider his view as and when he sits on these Benches in the future.
The second reason is practical. We do not want to allow ARIA to come to be viewed with public suspicion and distrust, especially as it has the right to fail, so being open about its work will be beneficial. If it turns out that it is not easy to discover what it is doing, public support for ARIA might be damaged, to the detriment of its wider role. It is not difficult to imagine circumstances in which a campaign is waged against ARIA for excessive secrecy, possibly utilising inaccurate information about it, and for public support to be damaged; nor, in my judgment, would making ARIA subject to freedom of information turn out to be an excessive practical burden. Moreover, if there are aspects of ARIA’s future work that turn out to be sensitive, the Government already have powers elsewhere in the Bill for the Secretary of State to intervene on grounds of national security.
I will leave my remarks there, but I strongly urge the acceptance of Amendment 6.
Baroness Noakes (Con)
My Lords, I spoke about the freedom of information aspects of these two amendments in Committee, and I repeat that I think it is reasonable to exclude ARIA from the freedom of information requirements.
I do not regard the Freedom of Information Act as malign, and I am sure my noble friend does not either. It is appropriate in many cases that our public bodies are opened up, but it is true that it is burdensome. That has been a constant complaint, and certain kinds of organisations attract lots of fishing expeditions which increase the burden, and this goes beyond what would be regarded as being reasonable.
In Committee, I quoted both Tony Blair—who, having introduced the Freedom of Information Act, had a Damascene conversion and did not regard it as a helpful thing in the end—and Professor Philip Bond, the Professor of Creativity and Innovation at the University of Manchester. Both of them highlighted the fundamental reason why ARIA should be free from the Freedom of Information Act: because the last thing our scientists need when looking at the next internet, or whatever it is, is to be overcome with excessive caution because they are worried about what would happen if their conversations had to be revealed through Freedom of Information Act requests. Creativity thrives in an environment where it is not subject to ex-post analysis.
The other reason why I wanted to speak this evening is that I do not understand why Amendments 6 and 7 have been positioned as they are in Clause 2. They seem to set up a conflict with the provisions of Schedule 3, which is introduced by Clause 9. I have not followed through the detailed drafting in respect of freedom of information, but I have followed it through in respect of the Public Contracts Regulations. Basically, Amendment 7 says that the regulations will apply to ARIA, while paragraph 17 of Schedule 3 says that the requirements do not apply to ARIA.
So, the effect of these amendments—and I believe the same is true of the freedom of information amendment, but I have not completely followed that through—is that one part of the Bill would say that the requirements do not apply, but the next part would say that they do apply. That does not seem to me a very clever way to write amendments or legislation, so I suggest that the amendments themselves are defective. Also, I think they are defective in drafting terms—in particular, the public contracts amendment does not mention the separate Scottish regulations, which are included in paragraph 17 of Schedule 3. Paragraphs 13 to 15 are much more complex than Amendment 6, so that may well not be as effective as noble Lords seem to suggest.
Baroness Chapman of Darlington (Lab)
My Lords, Labour tabled a combined version of Amendments 6 and 7 in Committee, and we welcome the re-tabling of the text by the noble Lord, Lord Clement-Jones. We debated FoI extensively at Second Reading, in Grand Committee and in private meetings with the Minister and his officials. Despite the strong feelings expressed, the Government have offered us absolutely nothing—not just on FoI but on transparency more generally.
The Government’s determination to keep ARIA’s projects and decision-making secret is worrying. This is a matter of principle: do they believe in transparency, or not? If they do, such a measure should be put in the Bill. If they do not, they have not really given us a sufficiently good explanation for their reluctance to do this. We believe that it is in ARIA’s best interests to have the benefit of engagement of the public through the use of FoI. Failing to do that is not going to stop ARIA’s activities becoming known; it will just happen in a less controlled manner and create more suspicion.
Lord Callanan (Con)
I thank noble Lords who have contributed on this group of amendments. Turning to Amendment 6 in the names of the noble Lords, Lord Clement-Jones and Lord Fox, the noble Baroness, Lady Chapman, and the noble Viscount, Lord Stansgate, I start by thanking my noble friends Lady Noakes and Lord Patten for their supportive statements in general as the Bill has progressed through this House.
ARIA will be a lean, streamlined agency which we expect to employ people in the tens. It will recruit a small team of exceptional individuals with both technical expertise and scientific vision. I contend that it is appropriate that we consider how their time, focus and energy is best applied.
We have designed this new, unique agency to operate and behave in a way we do not usually see in the public sector—with leanness, agility and efficiency being core to its function. We have also tasked it with embracing risk and failure. As noted by my noble friend Lady Noakes during consideration in Grand Committee and again this evening, these exceptional scientists should not be fearful of or driven to risk-aversion by the prospect of FoI disclosures, nor should they be distracted or bogged down by the bureaucracy of fulfilling such requests.
The issue of the volume of FoI requests we expect ARIA to be subject to has been raised throughout the passage of this Bill, and comparisons have been drawn between the number of requests received by smaller public bodies such as parish councils, and other research organisations such as UKRI. Pursuing this exemption reflects our expectation that, given ARIA’s profile, its focus on high-risk research and the speculation on its activity so far, it would indeed be subject to a disproportionately high number of FoI requests. It is not accurate to suggest that ARIA would get the same number as a single UKRI research council or other small organisations. It is already clear that its activities will generate a much higher degree of interest and, therefore, corresponding requests.
The noble Lord, Lord Clement-Jones, made a comparison to the number of FoI requests to DARPA. Let me remind the noble Lord that when making an FoI request in the US, requesters are required to consider paying applicable fees up to $25. If requests are expected to exceed this cost, the requester is notified to agree additional payment. While fee waivers or reductions can be granted in certain circumstances, it is not a like-for-like comparison to the FoI process in the UK. Therefore, in my view it is not right to assume that ARIA will receive a similar number of FoI requests to DARPA.
I also reassure noble Lords that our reasons for placing ARIA outside FoI legislation are specific and do not extend to other new public bodies, which will not have the same requirement for flexibility and agility and therefore will not require the same exemption.
However, to suggest that the agency will therefore be operating under a veil of secrecy is, in my view, not accurate. We expect ARIA to be an outward-facing and transparent body, which will proactively provide information about its activities to encourage collaboration around its programme goals, increase public understanding of its work and build public trust. Alongside this, it will be held to account by robust transparency arrangements. Let me remind noble Lords about them. It will publish its annual report and a statement of accounts, which will be laid before Parliament. It will be subject to annual audits by the National Audit Office. It will appear before and be accountable to Parliament through its chief executive officer and it will remain, of course, an arm’s-length body of my department in BEIS.
That said, I have also taken into account the opinions of noble Lords on this matter. To reflect the considered debate in Grand Committee on the balance of ARIA’s transparency and accountability arrangements with this unique freedom, I am happy to provide further assurances to noble Lords on ARIA’s reporting requirements. Annually, ARIA will proactively publish information on its regional funding and will make information publicly available on all delivery partners supported through the full range of its funding mechanisms. Taken alongside and together with ARIA’s annual report and accounts, these are significant and robust transparency arrangements which will ensure Parliament and the general public are informed of ARIA’s activities, the projects it funds and where it funds them.
I hope that, given these reassurances, noble Lords are satisfied that the FoI exemption serves an important function for ARIA and that we have struck the right balance here. I thank them for their input.
Lord Browne of Ladyton (Lab)
Before the Minister moves on to the next amendment and off the FoI amendment, has he read the Department of Defense information handout? That makes it clear that the vast majority of those who request information from DARPA would not have to pay any fee at all. Can the Minister share—either now or at some point—with noble Lords the genesis of his belief, which he has now repeated a number of times, that everyone who asks for information from DARPA has to pay a fee in the United States? If that is not true, then the comparison that we all make is a relevant comparison and is the only data; the only other thing we have is the Minister’s animus against freedom of information requests. And is he aware of the provisions of Section 19 of the Freedom of Information Act?
Lord Callanan (Con)
I think the noble Lord will find, if he looks at my remarks, that I did not say that every applicant will pay fees but that there is a general expectation that a fee of $25 will be charged, or even more in some cases if more information is required. However, there are exemptions to that, which can be exercised. If the noble Lord looks back at Hansard, he will see that I did not say that everyone would be charged a fee. In most cases, a fee would be applicable, but there are certain exemptions.
I turn to Amendment 7, in the names of the noble Lords, Lord Clement-Jones and Lord Fox, and the noble Baroness, Lady Chapman, which relates to procurement regulations. I note that the noble Lords did not address this, but it is worth while setting out the Government’s position on that amendment. I believe there are clear reasons why this exemption is beneficial to ARIA and why it will be integral to the agency’s effective operation. First, unlike other R&D funders, ARIA will be commissioning and contracting others to do research for it in pursuit of its own technological visions or research goals. The process of contracting and commissioning means ARIA will be operating in fundamentally different ways from traditional R&D grant making, where procurement rules already do not apply. Placing ARIA outside the existing public procurement rules will mean that the agency can freely procure expert investment and consultancy advice, which will be important given the highly varied and technical nature of the agency’s work.
While we imagine that the bulk of ARIA’s research activities will be carried out by its partners and funders, it remains possible that ARIA may wish to procure and own a piece of research equipment to crowd-in interest from other research partners, or to accelerate the progress of a project. Freedom from traditional procurement rules will facilitate ARIA making those investments quickly and with ease. In my view, it is appropriate for ARIA to have greater flexibility than the R&D exemption would afford it so that it can design and tailor its contractual arrangements to precisely suit its research endeavour.
Secondly, in designing ARIA, we have put a premium on the agency investing and acting quickly. In our view, this agility would be incompatible with the public tendering process mandated in the Public Contracts Regulations 2015, which can require contracting authorities to put contracts out to open tender for up to two to three months. Such a delay could prevent critical investments being made with sufficient speed or, indeed, at all. In choosing to exempt ARIA from standard procurement rules, we have learnt from the successful approach taken by DARPA, which benefits from “other transactions” authority, giving the agency the flexibility to operate outside traditional US government contracting standards. It is our belief that ARIA should benefit from similar flexibilities.
I also dispute the notion that taking ARIA outside traditional procurement rules will leave the agency vulnerable to cronyism. I think this was a point made by the noble Baroness, Lady Chapman, in Committee. This exemption will ensure ARIA’s leadership and programme managers—who have been recruited for their technical expertise and scientific vision—can take decisions on ARIA’s procurement with autonomy, as they will have the freedom to procure at arm’s length from government and Ministers.
As I have already detailed, ARIA has clear lines of accountability, transparency and scrutiny in the preparation of its an annual report, scrutiny by the NAO and an annual independent audit to report on its procurement activities. As I have already alluded to, to reflect the constructive and considered debate in Grand Committee, ARIA will publish information on its delivery partners, and this expectation will be detailed in ARIA’s framework document. I thank the noble Baroness, Lady Chapman of Darlington, for tabling an amendment to that effect previously. I hope she and other noble Lords welcome this principled commitment to transparency, which would extend to delivery partners supported through the full range of ARIA’s funding mechanism.
In conclusion, I hope noble Lords have been assured that exempting ARIA from traditional procurement rules will be integral to the agency’s effective operation. The package of accountability, conflict of interest procedures and governance provisions that sit within this Bill are an appropriate counterbalance to that. Taken in the round, this represents an essential, proportionate and balanced freedom, placed in the hands of ARIA’s incoming leadership and programme managers. Taken together, I hope that the assurances and explanations I have been able to provide for noble Lords will allow the noble Lord to withdraw his amendment.
Lord Clement-Jones (LD)
My Lords, I thank the Minister for his response and thank noble Lords who have taken part in this debate. There is clearly an argument to be had on our Amendment 7 and the whole procurement regime. The one argument that the Minister has is that DARPA is not subject to procurement rules.
However, the position is quite other on Amendment 6, as the noble Baroness, Lady Chapman, has said. This is a matter of principle. The Minister keeps coming up with some quite colourful phrases. This evening he said that scientists should not have to be fearful at the prospect of FoI disclosure. That is quite an interesting phrase—those scientists quivering in their labs, waiting for freedom of information disclosure. I must say it is quite a colourful way of looking at the situation, but, clearly, we have a matter of principle to decide on here, and I would like to test the opinion of the House.
The Deputy Speaker (Baroness Fookes) (Con)
We come to Amendment 7 in the name of the noble Lord, Lord Clement-Jones. Is it moved or not moved?
Lord Clement-Jones (LD)
My Lords, I am speaking to and will support Amendment 9.
The Deputy Speaker (Baroness Fookes) (Con)
One moment. I asked about Amendment 7 in the noble Lord’s name.
The Deputy Speaker (Baroness Fookes) (Con)
Now we get there. Amendment 9, Lord Clement-Jones.
Amendment 9
Lord Clement-Jones
Lord Clement-Jones (LD)
My Lords, in Committee the Minister explained that he accepted the DPRRC’s recommendations regarding Clause 10, and indeed was taking it out of the Bill, but added:
“Clause 8 is, I believe, an important part of the Bill. Although the DPRRC also raised concerns about this power, there is a strong policy rationale and a clear precedent for this particular delegation of power.”
He was then able to cite one solitary example, the Administrative Justice and Tribunals Council, which was dissolved by the super-affirmative procedure, but he admitted that that was in the context of widespread public body reform. He continued:
“In contrast, the power in Clause 8 is narrow, such that ARIA can only be dissolved. It cannot be merged or have its functions or governance changed in any way, as set out in my response to the DPRRC last week.”—[Official Report, 22/11/21; cols. GC 162-63.]
I still believe that the objection from the DPRRC stands. It said it was not necessary legally, politically or practically for something created by primary legislation to be dissolved by secondary legislation. On the contrary, if Parliament creates ARIA, the right to dissolve it should naturally belong to Parliament.
This is all reinforced by the recent report of the DPRRC, Democracy Denied? The Urgent Need to Rebalance Power between Parliament and the Executive. This kind of power assumed by the Government is what it objects to. I agree with the committee’s conclusions that we need to stop this accretion of Henry VIII powers by the Government, who are still proceeding willy-nilly in the face of the clear views and warnings of one of our own very well-respected committees.
The Minister said that these were narrow and limited powers, but what could be wider than abolishing the very subject of the Bill? That seems to be an extraordinarily wide power and a completely unjustified use of a Henry VIII power. So I look forward to the Minister’s reply but I very much hope that the Government will rethink their response to the DPRRC’s objections to the inclusion of Clause 8. I beg to move.
Lord Davies of Brixton (Lab)
My Lords, I am disappointed that the noble Lord, Lord Fox, is not with us this evening because, following Committee—which I attended, sat through, listened to all the debates of and did not say a word in—he said he was surprised that I had not found something better to do with my time. I just wanted to explain that I am extremely interested in this subject, but I am interested not in the detailed implementation of this legislation but in what it says about how research should be conducted. I am also glad that we have been joined by the Whip, the noble Viscount, Lord Younger, because, in a previous debate on another subject, he cast me as a pessimist—and I have to own up to being a pessimist on this particular proposal as well.
However, I support the Bill because it provides an interesting scientific experiment from which we can learn. We have a very small sample size: we have the existing system and the new system, a sample of two. But, as scientists often do, we have to work with the material that we have. So I am pleased that we have this proposal. Let us see how it works—albeit that I am a pessimist.
So, in Amendment 10, I am proposing that the Government should commit themselves to a review of how this proposal affects the corpus of research that takes place in the United Kingdom. This is a helpful suggestion. If pushed, I might possibly accept that it is unnecessary, because it will be done anyway. People will look to see what happens, and I just hope that the Government will recognise this and build it into the legislation.
I support Amendment 9—clearly this is an overreach of power on the part of government. I also support my noble friend Lord Stansgate’s Amendment 11, which proposes a much more detailed and thorough review of how this proposal matches up against the specific objectives that the Government have set out.
Viscount Stansgate (Lab)
My Lords, I will speak to Amendment 11, which is in my name. Of course, the idea behind it also applies to Amendment 10, as just outlined by my noble friend Lord Davies of Brixton, who has probably halved my speech because there is no need to repeat everything.
This amendment is very straightforward. It seeks to ensure that, at an appropriate time—I have suggested half way through its allotted 10 years—Parliament has the chance to be sure that ARIA is fulfilling its broad mission. After all, as we all agree, we are doing something new, and, while it is scheduled to receive only a small amount of funding compared with the wider scientific landscape, the fact is that we are still talking about £800 million of public money. So I ask the House: is it that unreasonable to want to ascertain how it is getting on after five years?
In looking ahead, Parliament will want to be sure that, for example, ARIA has not begun to duplicate work that can or could be done elsewhere—by UKRI, for example. Parliament will want to be satisfied that it has not been captured in some way by a scientific cabal or that it has not become involved in dealing with what you might call the “known unknowns”—because other parts of the scientific world are in charge of that—when we want it to focus on the “unknown unknowns”. We are all hoping—at least, I hope that we are—that ARIA will continue to focus on exciting and potentially disruptive new areas and inventions.
The purpose of this amendment is not—I repeat, not—to enable a future Government or Parliament to require a report into every single programme with which ARIA is engaged, or to burden ARIA with what we might call “excessive accountability”. We have already agreed to give the programme managers a huge degree of freedom, including the freedom to fail. However, we must remember that ARIA’s initial lifespan of 10 years will span at least one Parliament and maybe more, and it seems reasonable, without placing too great a burden on it, to enable a future Parliament to have the chance to satisfy itself that it is fulfilling its strategic mission. I look forward to the Minister’s reply and commend this amendment to the House.
Baroness Chapman of Darlington (Lab)
My Lords, we remain disappointed that the Government failed to accept the Delegated Powers and Regulatory Reform Committee’s recommendation to omit Clause 8, which provides a very broad power to be carried out with minimal parliamentary scrutiny. I am not surprised that the noble Lord, Lord Clement-Jones, has retabled the amendment, although I suspect that the Government will not change their approach this evening.
I am grateful to my noble friends Lord Davies of Brixton and Lord Stansgate for tabling their Amendments 10 and 11, which would ensure that there is better understanding of ARIA’s work as it progresses toward the magic 10-year mark. We agree with the thrust of both those amendments. On Amendment 10, it is important that lessons can be learned and any required changes enacted to ensure that ARIA’s funds are continually put to the best possible use. Amendment 11 would give Parliament a loose oversight role, which feels incredibly important, given its almost complete lack of involvement once the body has been established. I noted that when he was in his place earlier, the Minister described the arrangements that the Government are proposing as “robust”. I gently say that they are anything but.
We hope that the Government see some merit in these proposals. It is not clear that the provision needs to be statutory—I accept that—but can the Minister give a clear commitment about interim or periodic reviews beyond the publication of annual reports, which are the absolute minimum that we should expect, and opportunities for Members of this House and the other place to discuss and debate them?
Baroness Bloomfield of Hinton Waldrist (Con)
I want to start by addressing the comments on the Delegated Powers and Regulatory Reform Committee’s report on this Bill. As noble Lords will know, the Government made significant changes to the Bill in Committee to respond to the DPRRC’s recommendations. We have taken its report extremely seriously and shown that we are willing to engage with, and act on, its recommendations.
Regarding the committee’s other recent report, on the delegation of power more generally, we would submit that the changes we have made to this Bill are a clear demonstration of the relationship between the legislature and the Executive operating as it should and of legislative proposals submitted and amended in response to scrutiny. Certainly, what we are proposing for ARIA is a world away from some legislation made in the context of Brexit or the pandemic, which is the focus of the committee’s concern in its report.
We have carefully considered the committee’s recommendation with regard to Clause 8. In our view, the power to dissolve ARIA through regulations made under this clause, which would be omitted by Amendment 9 in the name of noble Lord, Lord Fox, remains an important part of the Bill. We have decided not to accept the recommendation in this instance because there is both a strong policy rationale and a clear precedent for this delegation of power.
As was said in Committee, the power can be exercised only 10 years after the Bill receives Royal Assent, and it is therefore an indication of the Government’s long-term commitment to ARIA. I think there is broad agreement that this patience will be essential if ARIA is to pursue successfully the most ambitious research and innovation. It goes to the heart of what ARIA is about. It must have the opportunity to prove itself before it is judged, and this has been recognised by many R&D stakeholders.
In Committee, my noble friend Lord Callanan referred to the precedent for this delegation of power. Under powers contained in the Public Bodies Act, several bodies established in primary legislation have been dissolved by statutory instrument. Again, if noble Lords will permit me, I will refer to the Administrative Justice and Tribunals Council, which was created by the Tribunals, Courts and Enforcement Act 2007 and was abolished using powers from the Public Bodies Act in 2013. The Public Bodies Act gave Ministers broad delegated powers not just to abolish bodies but also to merge them and change their governance structure and functions. That goes far beyond the power in Clause 8. As we do not know the context in 10 or more years’ time, when this power might be exercised, it is right that it is applicable in a range of scenarios.
On consultation, there is a broad requirement for the Secretary of State to consult those they think appropriate. I suggest that Parliament and Select Committees will be included among these stakeholders, and that the Secretary of State will think it appropriate and necessary to consult them. We do not believe that there is no opportunity for parliamentarians to be involved in those discussions. I hope I have managed to convince noble Lords of the seriousness with which we take the DPPRC’s recommendations, the careful consideration we have given to its view of Clause 8 and the very good reasons I think there are for departing from its recommendation in this instance, and retaining it. I hope noble Lords are convinced and that the noble Lord, Lord Clement-Jones, feels able to withdraw his amendment.
The power in Clause 8 shares with Amendments 10 and 11 a recognition of the experimental nature of ARIA, which has been highlighted by many in the R&D community. These amendments speak to our desire to extract the greatest possible benefit from our £800 million investment in this new agency. We hope those will be both direct benefits from the research and innovation it funds and indirect benefits in terms of learning that can be applied to R&D funding in the UK more generally. I hope that learning will be a dynamic process, and while I sympathise completely with the intent behind these amendments, I hope I can reassure noble Lords that there are already more than adequate arrangements in place for public bodies such as ARIA to be formally reviewed. I do not think anything further is necessary.
Amendment 11 in the name of the noble Viscount, Lord Stansgate, introduces a review of various aspects of ARIA’s operations, including whether it has fulfilled its functions and achieved value for money. Both of these are core considerations of the National Audit Office. The regularity of ARIA’s spending—whether it is in line with its functions—will be part of the annual assessment and certification of ARIA’s accounts, and the NAO will be able to conduct value-for-money examinations of ARIA as per the National Audit Act in the usual way. I hope the noble Viscount will agree that a further review mechanism on these points is not needed.
I turn to the second two elements of this amendment, which deal with the geographical spread of grants and ARIA’s transparency arrangements. I stand by my noble friend’s earlier commitment that ARIA will proactively publish information on its regional funding annually and, in the interests of transparency, make information publicly available on all delivery partners, supported through the full range of its funding mechanisms. I hope this reassures the noble Viscount, Lord Stansgate, that there are already arrangements in place to cover all these important points he has raised and that he does not feel it necessary to press his amendment further.
Amendment 10 is very specific to ARIA. As I have said before, I do not think a one-off formal report is the right way to envisage these lessons being learned. It should be a dynamic process: some important points may become apparent relatively quickly while some advantages or disadvantages of the ARIA model may not emerge even within the six years outlined in this amendment. We have discussed the need for patience, and I believe that means we must resist, as far as possible, the temptation to poke and prod and investigate this new organisation. Clearly, there is a balance to strike here, but it is my contention that the default position must be to let it be and gather these learnings in the most light-touch way we can.
In his amendment, the noble Lord, Lord Davies of Brixton, has allowed an entire year for the review to be conducted and published. That indicates a significant intervention in ARIA’s activities and a degree of close scrutiny that I do not think is a natural companion to risk-taking and high ambition. I note that the noble Baroness, Lady Chapman, also expressed concern about 10 years being a long time without scrutiny. There are a number of avenues for scrutiny—as a public body, ARIA will be subject to tailored reviews of its governance and effectiveness. It will need to bid for new funding in coming years and evidence its effectiveness and impact at that point. I hope the noble Lord will accept my assurances that it is absolutely our intention to learn from ARIA to the benefit of the wider R&D system, and that he will not press his amendment, on the grounds that such a structured and formalised obligation may not be the most appropriate way to do so.
Lord Clement-Jones (LD)
My Lords, I thank the Minister for her reply, which, I am afraid, amounted to a very polite raspberry to the DPRRC. She used very polite phrases such as “carefully considered”, but the fact is that the Government are intent on ignoring one of the major recommendations of the committee—namely, that the powers in Clause 8 are inappropriate.
The Minister talked about a clear precedent, and I referred to the precedent that the Minister, the noble Lord, Lord Callanan, cited in Committee. But when the Administrative Justice and Tribunals Council was abolished, it was done by the super-affirmative procedure, and the Government have not even offered to use that in this case. This is rather different to that situation; this is effectively abolishing the whole substance of what the Bill is about: ARIA itself. I do not think there could be anything more radical than a Henry VIII power that does that.
I am afraid that I do not really regard what the Minister said as a full response to the DPRRC, and I am certainly not persuaded by the Government’s position. But this is part of a longer, long-running argument between the Executive and Parliament. Clearly, the DPRRC, which I support very strongly, wants much greater parliamentary involvement and oversight in decisions such as this. It believes that, where possible, primary legislation is the appropriate instrument, not secondary legislation. Does the Minister want me to give way?
Baroness Bloomfield of Hinton Waldrist (Con)
Before the noble Lord sits down, perhaps I could come back on the specific point he made about the Public Bodies Act. This Act was developed in the context of widespread public body reform. It was therefore appropriate that the super-affirmative procedure was applied. In the context of much broader powers, it was right that their use was subject to this higher level of parliamentary scrutiny. In contrast, the power in Clause 8 is much more narrowly defined, such that ARIA can only be dissolved—it cannot be merged, or have its functions or governance changed. That is a significant difference between the two.
Lord Clement-Jones (LD)
My Lords, that is a significant difference between us. Merging is one thing, but total abolition is another. Perhaps the Minister could have offered the super-affirmative procedure in those circumstances. As I say, this is part of a long-running argument. The Executive are determined to hang on to their Henry VIII powers. I hope that Parliament will continue to press for fewer Henry VIII powers, much greater use of primary legislation, where appropriate, less use of skeleton Bills, and so on. This is a very broad landscape that we are debating. In the meantime, I beg leave to withdraw my amendment.
Viscount Stansgate
“Interim review of ARIA
(1) Within five years of the date on which this Act is passed, the Secretary of State must undertake a review of ARIA and its operations.(2) The review under subsection (1) must include an assessment of—(a) the extent to which ARIA has, whether acting alone or jointly with others, fulfilled the functions listed in section 2(1),(b) whether projects undertaken or funded by ARIA are achieving value for money,(c) the geographical spread of grants awarded by ARIA, and(d) the operation of transparency measures and whether further measures are required.(3) Upon completion of the review, the Secretary of State must make arrangements for the contents of the review, including any recommendations arising from it, to be laid before and approved by both Houses of Parliament.”Member’s explanatory statement
To enable Parliament to review the work of ARIA after its initial five years.
Viscount Stansgate (Lab)
I thank the Minister for her reply. I look forward to reading the National Audit Office reports over the next few years and taking part in such discussions as we may have in this House on how ARIA is developing.
The Deputy Speaker (Baroness Fookes) (Con)
As the noble Viscount has made a short speech, I must now put the Question. The Question is that the amendment be agreed.
Viscount Stansgate (Lab)
I should have added the words, “I beg leave to withdraw my amendment”.
The Deputy Speaker (Baroness Fookes) (Con)
I have just explained that, as the noble Viscount has made a short speech, it is not possible to withdraw, so I must put the Question. It is up to Members of the House how they vote.
Lord Craig of Radley
Lord Craig of Radley (CB)
My Lords, I speak to Amendments 12 and 14 in the names of the noble Lords, Lord Browne of Ladyton and Lord Clement-Jones, the noble Viscount, Lord Stansgate, and myself. Noble Lords will be aware that a number of fields of modern technology and research are coming to rely more and more on mathematical sciences. When I gained my degree in pure maths at Oxford over 70 years ago, and for many years since, maths was seen largely as an adjunct to other fields of science and technology, but the world of digital—particularly of AI, machine learning, 5G and quantum computing—is now becoming mainstream. These diverse technologies rely very greatly on mathematics for help to find solutions and answers.
Mathematical sciences today are employed in many ways: from risk analysis of the use of driverless cars to the likelihood of collisions and how best to avoid them in space; from sifting with AI through large quantities of medical data to spot treatments for illness, to the best ways of introducing superfast broadband nationwide; contributing to security risk analyses, or delving into the more esoteric problems of known and unknown unknowns. Mathematical sciences feature in improvements that will benefit the lifestyle and health of wide cohorts of citizens and the esoteric work of astronomers unlocking the secrets of the cosmos. Analysing and predicting trends in the Covid-19 epidemic is another active field in which mathematical sciences play an important part.
The marginalisation and exclusion of mathematical sciences in government legislation prompts this amendment. For example, the 2004 guidelines on research and development limit the definition of mathematical contributions in research and development to the “physical and material universe”. Far from sticking to current definitions in this new legislation, is it not time to recognise the unique and growing contributions of mathematical sciences in the new digital age of AI, quantum computing and much, much more? The ARIA Bill is an ideal opportunity to do so and move on. The focus and capacity of the Bill’s provisions should explicitly embrace the mathematical sciences. These now include “blue skies” maths, which is sometimes referred to as a new form of “pure” maths.
My amendment is thus not a probing amendment; it is a simple and straightforward proposal to reflect the advances being made by mathematical sciences in the digital age. I challenge anyone to assert that this new agency will not be making use of mathematical sciences in its work. This Bill is an excellent opportunity to give the rightful recognition in statute to the key role of mathematical sciences in advanced research and inventions. I beg to move.
Lord Browne of Ladyton (Lab)
My Lords, I support the noble and gallant Lord’s amendments and have added my name to them. More broadly, I support the work of the London Mathematical Society and the Protect Pure Maths Campaign to emphasise the importance of mathematics alongside science and technology, not only to the whole STEM ecosystem but to the UK economy overall. The briefing that I have received from them estimates—I am sure this is correct—that mathematics adds more than £200 billion to the UK economy, which is nearly 10% of our GDP; and it is one of the top three subjects for graduate earnings. As the noble and gallant Lord explained, mathematics enables most of today’s exciting and urgent technological developments, including artificial intelligence, driverless cars, and the development of quantum computers and superfast broadband, as well as the modelling of the Covid-19 outbreak, underpinning national security, the finance sector and the rollout of vaccinations.
Mathematics is a British success story. If it gets recognition at this level from Parliament, I am certain that it will send a powerful and supportive message to young people across the country to consider mathematics as a career or for further study—and that can only be a good thing.
Viscount Hanworth (Lab)
My Lords, my Amendment 13 does not differ greatly from the previous amendment. Indeed, it differs in only one word: “pure”. In proposing my amendment, I have been mindful that mathematics is in danger in universities from an attempt by administrators to reduce its presence. At the University of Leicester, where I am an emeritus professor, a considerable number of staff described either as “pure mathematicians” or “managerial sociologists” have been sacked. The so-called pure mathematicians have been sacked on account of the unpopularity of maths, as revealed in perennial student surveys. Mathematical subjects tend to be unpopular with students because they are challenging. Nevertheless, they are the backbone of degrees in science, engineering and other subjects. I suspect that the managerial sociologists have been sacked because administrators are loath to recognise the expertise of others in a subject in which they believe they have significant experience. Be that as it may, my present concern is with mathematics.
Very few mathematicians would call themselves “pure” mathematicians. They describe themselves as mathematicians without qualification. Pure maths is concerned with giving order and clarity to the subject of mathematics, of which the exposition stands in constant need of reform. Applied mathematics, as the name suggests, is concerned with applying mathematics to substantive issues. We cannot have the one without the other. Legislation that declares that mathematical advances are not science unless they are advances in representing the nature and behaviour of the physical and material universe speaks of a wrong-headed attitude on the part of administrators who may have little understanding of the nature of science. In derogating the role of mathematics, this attitude could have dire consequences. I hope that the acknowledgement of the importance of mathematics to science will serve to counteract the wave of intellectual vandalism occasioned by the insurgency of administrators that is sweeping through British universities. I beg to move the amendment standing in my name, but I propose that it should stand or fall with the other amendments in this group.
The Deputy Speaker (Baroness Fookes) (Con)
I think it may be helpful to your Lordships if I explain that only the first amendment in a group is moved. The noble Lord is speaking to his amendment, but it is moved or not moved only according to its place on the Marshalled List.
Viscount Stansgate (Lab)
My Lords, I rise to speak in support of Amendments 12 and 14, to which I have added my name, and the other amendment in this group. I hope the House will appreciate that this is not a subject that was touched on in Committee—so it is fresh for consideration by the House today. It is nevertheless very important. The noble and gallant Lord, Lord Craig, and my noble friends Lord Browne and Lord Hanworth have set out the case in some detail, and I do not want to repeat some of the examples they gave, very good though they are. However, I emphasise that mathematical sciences are vital not just to the future of science but to the work of ARIA.
Amendments 12 and 14 are very simple. They would insert the words “and mathematical” in the definition of scientific knowledge and scientific research in Clause 11. These amendments arise because the mathematical community is unsure about whether mathematical sciences are sufficiently included in the definition in the Bill—and it is because the mathematics community is unsure that this debate is taking place. Sometimes people think of sciences as only, or mainly, the core sciences of biology, physics and chemistry, but this is not the case. Mathematics underpins all the other sciences —hence we now use the term STEM as a routine acronym.
Perhaps I could just briefly introduce into this debate the definition of mathematical sciences that is accepted in the community: it is a group of areas of study that includes, in addition to mathematics, those academic disciplines that are primarily mathematical in nature but may not be universally considered as sub-fields of mathematics proper, such as statistics, computer science, computational science, data science, quantitative biology, operations research, control theory, cryptology, econometrics, theoretical physics, continuum mechanics, mathematical chemistry and actuarial science.
Lord Clement-Jones (LD)
My Lords, I have signed and I support Amendments 12, 13 and 14. As someone immersed in issues relating to AI, machine learning and the application of algorithms to decision-making over the years, I, too, support Protect Pure Maths in its campaign to protect pure maths and advance the mathematical sciences in the UK—and these amendments, tabled by the noble and gallant Lord, Lord Craig, reflect that.
The campaign points out that pure maths has been a great British success story, with Alan Turing, Andrew Wiles and Roger Penrose, the Nobel Prize winner—and, of course, more recently Hannah Fry has popularised mathematics. Stephen Hawking was a great exemplar, too. However, despite its value to society, maths does not always receive the funding and support that it warrants. Giving new funding to AI, for instance, risks overlooking the fundamental importance of maths to technology.
As Protect Pure Maths says, the 2004 BEIS guidelines on research and development, updated in 2010, currently limit the definition of science and research and development for tax purposes to the systematic study of the nature and behaviour of the physical and material universe. We should ensure that the ARIA Bill does not make the same mistake, and that the focus and capacity of the Bill’s provisions also explicitly include the mathematical sciences, including pure maths. Maths needs to be explicitly included as a part of scientific knowledge and research, and I very much hope that the Government accept these amendments.
Baroness Bloomfield of Hinton Waldrist (Con)
I thank the noble and gallant Lord, Lord Craig of Radley, and the noble Viscount, Lord Hanworth, for tabling Amendments 12 to 14, and those who contributed to the debate. We recognise the fundamental importance of pure and applied maths to other sciences, and as the focus of scientific inquiry in its own right. It is right that we take the opportunity to note that importance here.
The noble and gallant Lord gave a number of potent examples of the importance of mathematical contributions to scientific innovation. Much like, we hope, the projects and advances that will be supported by ARIA, breakthroughs in mathematics can lead to unexpected leaps of progress in separate fields or find application in solving intractable and seemingly unrelated problems in other areas of science. As we just heard from the noble Lord, Lord Clement-Jones, who rightly reminded us, the UK has been home to many outstanding mathematicians of global significance, from Isaac Newton to Andrew Wiles.
However, I emphasise to the noble and gallant Lord, Lord Craig of Radley, and the noble Viscount, Lord Hanworth, that the drafting of the clause that they have sought to amend follows existing powers in the Science and Technology Act 1965, and the Higher Education and Research Act 2017. It is important that it does so. Research into mathematics, including pure mathematics, has been funded in the UK using those powers for over five decades. Maths research is funded by the Engineering and Physical Sciences Research Council—one of the research councils that make up UKRI. The EPSRC spends more than £200 million on this theme, which includes research into maths in areas from number theory to topology and artificial intelligence. It is clear that maths is included in the definition of sciences as currently included in the Bill.
The 2004 guidance referenced by the noble Viscount, Lord Stansgate, predates the Higher Education and Research Act, which makes it clear that maths is included in the definition of science as drafted in the Bill. There is no need to particularise the interpretation through these amendments. Indeed, it would clearly be undesirable to seek to list exhaustively every possible field of scientific inquiry within the Bill. Departing from the existing embedded way these powers to fund research, including in mathematics, are drawn would be unhelpful.
ARIA’s programme managers will set ambitious programme-level goals. Although we do not often expect programme-level goals to lie within pure mathematics, it is right to highlight that ARIA might need to draw on pure and applied maths to achieve those goals, given their importance within the new fields noble Lords highlighted. It is right that ARIA may fund research in those areas.
We are confident that any activities of this nature that ARIA will seek to pursue are covered by its functions, and that the results of scientific research will encompass the results of mathematical inquiry that might be needed by ARIA. ARIA’s supplementary powers provide further reassurance. When exercising its functions, such as funding a programme with a specific scientific objective, ARIA’s supplementary powers allow it to do whatever is necessary in support of that. It is therefore the case that any mathematical endeavours that ARIA needed to draw on for a programme—for example, in support of a particular objective for machine learning—could be funded under its supplementary powers as well.
On that basis, although the noble and gallant Lord and the noble Viscount have raised important points, I hope they will be satisfied that there is no need for their amendments and feel able not to press them.
Lord Craig of Radley (CB)
My Lords, I thank the Minister and all those who spoke to this. Quite clearly, there is a difference of view between the Government and those of us who have spoken to them about how we should treat mathematical sciences in the present age. It is a pity that it has not been possible for the Government to agree to the amendment, but, in view of the late hour, I shall withdraw it.
Viscount Hanworth
Viscount Hanworth (Lab)
I fully accept that the Bill has adopted the same definition of science found in previous legislation. However, this is not a reason for continuing to accept an obtuse and damaging definition. I beg leave to withdraw the amendment.
The Deputy Speaker (Baroness Fookes) (Con)
I am sorry, but we have the same problem again. I must put the question.
Baroness Noakes (Con)
Baroness Noakes (Con)
My Lords, in moving Amendment 15, I will also speak to my Amendments 16 and 18 in this group. With these amendments, I am returning to the issue of governance of ARIA. We debated these or similar amendments in Committee, and I thought I would give my noble friend the Minister another chance to answer the issues that I raised.
Amendment 15 is directed at the maximum size of the ARIA board. In Committee, I explained that large boards are subject to weaknesses such as passive free-riding, dislocation and groupthink. While it is true that there is no magic formula determining the size at which boards become ineffective, studies generally agree that, once they get to 13 or 14, they do not work well.
Schedule 1 has no overall size constraint but does require a majority of non-executive directors. One way to constrain the size of the board is therefore to limit the number of potential executive directors. My Amendment 15 would limit those executive members to six, which implies a board size of 13, assuming that non-executives are appointed simply to achieve a bare majority. The current Bill would allow a board size of 15 with a full complement of seven executives.
In Committee, the Minister said that the Government believed that a size of 15 was
“in line with standard practice”.—[Official Report, 17/11/21; col. GC 103.]
It might well be standard practice for public bodies that BEIS creates, but I am sure that it is not in line with any of the literature on effective boards. I would hope that BEIS, in particular, would want to be at the forefront of best practice in this area.
Amendment 18 is about the executive/non-executive balance on the board, and I full support a majority of non-executive directors. I am concerned, however, that by allowing a quorum of half the members, as paragraph 10(2) does, a quorum could be achieved with only one non-executive member. My amendment requires a majority of non-executives for all board meetings, in order to ensure that important decisions are not taken by a dominant executive cadre.
My final amendment in this group, Amendment 16, would delete a power to pay pensions or gratuities to non-executive members, which I believe is drafting from another era and which keeps being repeated merely because it follows precedent. My noble friend the Minister said that the Government had no intention of using the power, but curiously then said that the Government wanted to retain it in the Bill. On the basis that the Government do not want to use the power, I hope my noble friend will now agree with me that it is time to read it its last rites.
Lastly, I will offer a comment on Amendment 17 in this group, tabled by the noble Lord, Lord Morse. I completely understand the thinking behind this amendment, but I believe we should be very wary of imposing this kind of legal straitjacket. We need ARIA to be the kind of place where high-quality people come to work. The concept of employment, which places a considerable fetter on life beyond ARIA, could well end up with exactly the wrong kind of people being attracted to work in ARIA. I agree with the earlier remarks of the noble Lord, Lord Broers, on this. I beg to move.
Lord Morse (CB)
My Lords, I just repeat a remark I made in Grand Committee in response to the noble Baroness’s speech: I think that she is expressing best practice, certainly as I understand it, on how boards should function. I reconfirm the supportive comment that I made before.
Amendment 17 stands in my name. I thank the noble Baroness, Lady Chapman of Darlington, and the noble Lord, Lord Browne of Ladyton, for their support. My amendment is intended to address potential abuse; I just put that clearly in people’s minds to start with. It sets out to do so in this way: it specifies that those who have been employed in a department that is either supervising or sponsoring ARIA and have been directly involved as part of the team doing so should not be employed by an entity that has benefited from ARIA funding within five years of leaving the department. It also, in proposed new paragraph 8A(2), applies the same five-year exclusion to persons who have been employed in ARIA itself and who might seek employment in an entity that has benefited from ARIA. Finally, in proposed new paragraph 8A(3), it provides that a person falling under either of the two new paragraphs I mentioned shall not acquire a proprietary interest, either directly or indirectly, in intellectual property or bodies owning intellectual property that have benefited from ARIA for a period of five years.
Lord Browne of Ladyton (Lab)
I speak principally to support Amendment 17 in the name of the noble Lord, Lord Morse, to which I added my name, but having heard the noble Baroness, Lady Noakes, twice—in Committee and today—on Amendments 15, 16 and 18, I am persuaded by her simple, accessible and convincing explanation that changing the Bill in this way would be to its benefit. Hearing from the noble Lord, Lord Morse, that the amendments reflect current practice, I am even more convinced, so I have corroboration and I support them.
I have had the benefit of having had the noble Lord, Lord Morse, explain his amendment to me on a number of occasions. If I was going to be partisan about this, I could think of a lot of contemporary examples of behaviour which the existing ACOBA system has manifestly failed to deal with. Apart from anything else, recent history has damaged significantly the reputation of politics and politicians as a group, and it has bled into civil servants because of the apparent practice of senior civil servants taking positions in private industry while continuing to work in the Civil Service. I have no intention of going through all of them. I am just convinced by the argument made by the noble Lord, whom I have known for a long period, that if we do not recognise that this could become a problem, and if it does become a problem, it will seriously damage ARIA and we should protect it—at the very least by including these provisions in the Bill and indicating that Parliament decided that people who have had those experiences should not move to other positions where it looks as though they are exploiting the information that they had for their own personal gain, and therefore operating in a way that most people in the country would think unethical. If in these circumstances we do not have a narrative that says, “We in Parliament are concerned that this may happen and took the steps that we could to prevent it from happening”, we will be complicit in the damage that will inevitably be done not only to ARIA but, yet again, to those who work in the public service as officials, civil servants, Ministers or just politicians.
Baroness Chapman of Darlington (Lab)
My Lords, I recognise the expertise of noble Baroness, Lady Noakes, on issues of corporate governance and, like my noble friend Lord Browne, I have enjoyed listening to her in Committee and again today. I will be interested to hear what assurances the Minister is able to give as a consequence of her amendments. I have learned a lot from her through this process and I look forward to learning more in the future.
I welcome Amendment 17 from the noble Lord, Lord Morse, whose case is no doubt bolstered by his experience over many years. It is a real joy to me that we have come to this House at more or less the same time. This is our first Bill together, and I am very pleased to add my name to his amendment.
There have long been concerns about “revolving doors” in politics—it is not something that started with this Government—but my noble friend Lord Browne was correct to observe that concern about issues such as those dealt with by Amendment 17 is growing, and frankly the Government have brought it on themselves. There is deep concern in the public mind about these issues and we shall see on Thursday what the people of North Shropshire make of it all.
I am struck by the fact that the Minister has taken the amendment from the noble Lord, Lord Morse—a very good amendment which we support—and has directed us to look at paragraph 11 of Schedule 1, which states:
“The Secretary of State may by regulations make provision about the procedures to be adopted for dealing with conflicts of interest.”
They may, but “may” is doing a lot of lifting there, and obviously they may not as well, so there is nothing to give us any assurance that the danger of which the noble Lord, Lord Morse, is correct to warn us could be averted by that provision. We are just not buying it. Although the Minister has, for illustrative purposes, provided a suggestion of how the regulations might look, that does not provide us any assurance whatever.
Given the Minister’s reluctance to accept any of the suggestions that we have made—none of the suggestions, from FoI to reporting, have been taken up by the Government—he is somewhat leaving ARIA exposed, in the way that the noble Lord, Lord Morse, explained so well. We want this organisation to succeed, but because of the Government’s rigidity on these issues, the fear is that we are setting it up with a weakness: this lack of transparency and ability to challenge.
The Minister is kidding himself if he thinks that these issues will not be scrutinised and that some of the problems that may emerge will not somehow get out. I am sure that the Public Accounts Committee will enjoy crawling all over this when it gets the opportunity to do so. We want this to work, but I am afraid that the Government’s approach is not doing ARIA any favours.
I want to hear what the Minister has to say and whether something can be done to provide us with the assurance we are looking for that ARIA will not be characterised—or mischaracterised, I hope—as some sort of secret agency. That would only cause this fascination and determination to probe into its activities to grow.
Lord Callanan (Con)
Before I start, I will deal directly with the comments of the noble Baroness, Lady Chapman, which I thought were a little unfair. We have responded to a number of the points she has made, and we have adopted some of her suggestions on transparency, delivery partners and regional funding. We obviously have not gone as far as she would like in some respects, but it is slightly unfair to say that we have not listened at all to many of the reasonable suggestions that have been put forward from all sides. I will come on to another suggestion that we will adopt shortly.
I start by responding to the amendments put forward my noble friend Lady Noakes. I thank her once again for her considered contributions, which, together, aim to ensure that ARIA is a well-governed and effective agency. I certainly echo the comments of the noble Baroness, Lady Chapman, about her great knowledge of corporate governance. My noble friend’s Amendment 16 would remove the Secretary of State’s power to determine a pension or gratuity for non-executive members. As I said in Committee, it is in fact not our intention to offer these for ARIA’s non-executive members. In consequence of the helpful suggestions and debates we had on that occasion, I have reflected further on the functions of ARIA and the duties and responsibilities we expect of its non-executive members, and I am pleased to be able to confirm to my noble friend that we do not see circumstances in which this power will be required. I am therefore able to say that the Government will support this amendment, and I thank my noble friend again for bringing it forward.
I turn to Amendment 15, also tabled by my noble friend Lady Noakes, who spoke about reducing the maximum possible number of executive members from five to four. The chair of the agency will have responsibility for appointing ARIA’s executive members. Following government guidance for corporate governance, we will set out the responsibilities for ARIA’s chair to review the performance of ARIA’s board and its members in the framework document. This will include evaluating the composition of the board and considering its size, diversity and balance of experience and skills. We expect that, in the initial phases of ARIA, this will tend towards a small board structure. However, I believe that it is important to retain at least some flexibility in the legislation to account for ARIA’s future needs as appropriate, and to allow for a slightly larger board if necessary.
As ARIA will be working across the public and private sectors, using a range of funding mechanisms and funding research at various stages of technological development, I do not think we should rule out a slightly larger arrangement so that ARIA can bring knowledge from a range of backgrounds and ensure that this is represented at board level. I thank my noble friend for her thoughtful remarks on groupthink; it is this diversity of thought and experience that would be the best antidote to such an outcome.
Baroness Noakes (Con)
My Lords, I thank those noble Lords who supported the amendments that I spoke to in this group. There was a small, select bunch of us, but it was a high-quality debate.
I am grateful to my noble friend the Minister for the further helpful explanation that he has now given in relation to my Amendments 15 and 18. I should say that I am thrilled that the Government are accepting my Amendment 16. It remains only for me to say thank you and beg leave to withdraw Amendment 15.
Baroness Noakes
Baroness Noakes
Baroness Noakes (Con)
My Lords, we will all be relieved that we are on the final amendment of this Report stage.
Amendment 20 would have the effect of requiring the consent of the Secretary of State if ARIA seeks to use the powers in paragraph 17(2) of Schedule 1. These powers allow ARIA to borrow money, to acquire and dispose of land, to accept gifts, to form and participate in partnerships and joint ventures, and to form companies. I have no problem with these powers existing; they are useful techniques which are commonly used in research and development activities and scale-ups. I am, however, against public bodies taking on liabilities which are counted as public sector liabilities and which will end up being footed by taxpayers if they go wrong, without any controls. I am also wary of private sector counterparties, who may well be queuing up for a free ride on the public sector’s credit lines, knowing that they will be rewarded for success and may not have to pick up the tab for failure.
My noble friend the Minister replied to my amendment in Committee, saying that conditions would be attached to grant funding given under Clause 4 of the Bill, and that borrowing would have to meet stringent requirements set out in Managing Public Money. The Minister also said that any borrowing would have to be agreed with HM Treasury in advance. I accept that it is possible that this will work perfectly well, with ARIA agreeing to abide completely by whatever the Treasury and BEIS say. It is certainly likely to toe the line all the time that it is dependent on grant funding from BEIS.
My question to the Minister is based on a different scenario. Let us assume that BEIS has handed over the £500 million committed for this Parliament and that the Chancellor has said that there is no more money. We know that the power to wind up ARIA will kick in only after 10 years, so what does the Minister think will happen in the years between, say, 2024 and 2032, with no more grant money arriving? My guess is that borrowing money would become irresistible. Moreover, the value-for-money test in Managing Public Money will be very easy to satisfy, because the counterfactual of using public money will not exist. Complex structures that look like partnerships or joint ventures could actually be borrowing by another name—I have seen that all before.
That is why I believe it would be safer if this Bill embedded a consent requirement. A consent requirement might look rather heavy-handed at first sight, but it could easily be tempered by delegation arrangements which did not require all transactions to have to be sent to the Secretary of State for approval.
I look forward to hearing how the Government think they can keep control of an organisation which has unconstrained statutory powers once the Government have lost the lever of grant payments. If they are not certain that they can deal with all eventualities, I respectfully suggest to my noble friend that an amendment such as this one, or something similar, is needed. I beg to move.
Baroness Chapman of Darlington (Lab)
My Lords, this is a very interesting discussion initiated by the noble Baroness, Lady Noakes. At first, I thought she was suddenly getting into big state interference, but that is obviously not the case. It is curious why ARIA would need to be able to borrow money when it is being given a budget from the Government. Presumably the intention is not to give it the Government’s credit card also, because we will be underwriting the borrowing that takes place—I think. I am not quite sure on this; perhaps the Minister could explain some circumstances in which the borrowing of money would be needed and how that would be beneficial to ARIA.
On gifts, we are not quite clear what that is about. If the noble Baroness wanted to test the will of the House—I suspect that she does not want to, this evening—we would be interested in supporting that.
We really need to get some assurance from the Government, particularly on this issue of borrowing money.
Lord Callanan (Con)
Once again, I thank my noble friend Lady Noakes for her thoughtful and constructive contributions throughout the progress of the Bill so far. However, she will be disappointed to know, I am sure, that on the substance of her Amendment 20, I am not convinced that adding a legislative requirement for the Secretary of State to approve how these supplementary powers are exercised would be beneficial to ARIA’s effective function or enhance its accountability measures that are already in place.
On ARIA’s ability to borrow money, I recognise that this has been consistently raised throughout the passage of the Bill by my noble friend. I thank her for her previous probing amendments on this matter, which prompted an important conversation on the balance between ARIA’s activities and the appropriate government oversight. As I outlined in correspondence with my noble friend, any borrowing would be contingent on ARIA complying with the rules of Managing Public Money and subject to approval by Her Majesty’s Treasury.
ARIA’s allocation and delegation letters, which the CEO of ARIA will be duty-bound to adhere to, will confirm that ARIA will be subject to, and comply with, all Managing Public Money rules that relate to borrowing. Managing Public Money sets robust conditions on borrowing, and states:
“Public sector organisations may borrow from private sector sources only if the transaction delivers better value for money for the Exchequer as a whole.”
Ensuring that ARIA’s expenditure is made in accordance with Managing Public Money guidance, except for in certain agreed circumstances, will be a condition of the budget ARIA receives from BEIS in its allocation and delegation letters from the BEIS Permanent Secretary to ARIA’s CEO.
There is an expectation of a level of faith between the Government and their arm’s-length bodies. This understanding of trust, and all of ARIA’s freedoms and powers, will be balanced with a number of core accountability principles. The CEO will be ARIA’s delegated accounting officer and will be personally accountable to Parliament for the stewardship of ARIA’s resources, decision-making and financial management. This includes the Public Accounts Select Committee, which will, I am sure, take an interest in such matters. The BEIS Permanent Secretary, as principal accounting officer, will retain an important oversight role, and has the power to make arrangements to ensure they are satisfied that ARIA’s systems are adequate and its finances soundly managed. The Permanent Secretary may intervene if ARIA is significantly off track, and in the unlikely scenario that serious concerns are raised, or there is financial mismanagement, the CEO’s delegated accounting officer authority can be revoked. I hope my noble friend is reassured that the mechanisms here are well established and robust and that they will be enforced.
Moving on to ARIA’s ability to form partnerships, I believe that adding a Secretary of State approval to ARIA’s activities in this area would significantly hinder its effective operations. In designing ARIA, we have put emphasis on the agency operating with significant autonomy from government, and with freedom from standard bureaucracy. Forming partnerships, such as providing grant funding to a project with a university or a business, will be an essential part of ARIA’s daily operations. We expect the agency to contract with, commission and collaborate with a range of different actors for each of its research projects—indeed, that will be one of its core functions.
We have designed this agency to be led and run by experts with technological vision. It is vital that these individuals are free from arduous processes so that they can act quickly, decisively, with autonomy and with clear authority. We should trust ARIA to have discretion over how it forms those partnerships, and I believe that requiring it to engage in a central government approval process for each partnership sits squarely contrary to its aims and purpose.
Moving to ARIA’s ability to form companies and to form and participate in joint ventures, my department is currently in negotiations with Her Majesty’s Treasury about the exact clearance processes ARIA will undertake for each of these transactions. The detail will be set out in ARIA’s allocation and delegation letters, the conditions of which the CEO, as accounting officer, will be duty-bound to comply with. However, I assure my noble friend that all iterations of this delegation letter will include sufficient assurances that ARIA’s internal assessment processes and capability are sufficiently robust. Given that these arrangements may need to evolve in the future, it would not be appropriate for this to be mandated at this stage in the Bill.
On ARIA’s ability to accept gifts, there are already stringent conditions on this in Her Majesty’s Treasury’s Managing Public Money that ARIA would need to comply with. ARIA would consult BEIS about gifts, and HMT’s approval is explicitly required for any gift over £300,000. Gifts made would be recorded in ARIA’s accounts and gifts received would be recorded in a register. These rules will also be confirmed in ARIA’s allocations and delegations letter from the BEIS Permanent Secretary.
ARIA’s power to acquire and sell land would be exercised only in compliance with the Managing Public Money guidance, which sets controls on the below-market sale of land, will compel ARIA to take professional advice when disposing of land and property assets, and will mandate ARIA to include land in its asset register.
Furthermore, introducing a blanket statutory requirement for Secretary of State approval would leave ARIA with less freedom than comparable arm’s-length bodies such as UKRI, which is able to exercise supplementary powers related to accepting gifts and the buying and selling of land without a legislated approval from the Secretary of State.
I appreciate that my noble friend has significant expertise and interest in the areas of financial management and propriety, and we welcome that. However, adding a statutory requirement here would not add value or challenge beyond what is already well established and enforced through Managing Public Money. Furthermore, as I have set out, adding the requirement to the forming of partnerships would, I believe, be genuinely detrimental to ARIA’s agile, autonomous operations, which I know my noble friend is keen not to prejudice.
Before I conclude on this final group of amendments, I once again thank all noble Lords who have taken an interest in this Bill for their excellent and constructive contributions throughout our scrutiny. ARIA provides us with enormous opportunities. I have been delighted to take the Bill through this House and engage with colleagues on all sides, who have focused on the task of providing appropriate scrutiny with enthusiasm, ability and great skill.
Baroness Noakes (Con)
My Lords, I start by thanking again the noble Baroness, Lady Chapman of Darlington, for her support for my amendment. What the Minister has said in setting out in more detail how the various mechanisms work in the public sector to achieve de facto control over public bodies has been very useful. I hope he is right that this will work well in practice, and I completely accept his point that there has to be an element of trust and faith between BEIS and its public sector bodies. At the end of the day, this is a risk management decision on whether the balance has been set in the right place, given the particular circumstances of the public body.
I say to the Minister that I hope I shall never have to say, “I told you so”—I warn him that I have an elephantine memory. With that, it is late and time to withdraw my amendment.
The Deputy Speaker (Lord Lexden) (Con)
My Lords, that concludes proceedings on Report of this Bill. As it has been referred to as the ARIA Bill, I am tempted to suggest that the noble Baroness, Lady Noakes, sees us out with a song.
Advanced Research and Invention Agency Bill
Monday 10th January 2022
(2 years, 11 months ago)
Lords ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 85(a) Amendment for Third Reading - (16 Dec 2021)
Lord Callanan
Member’s explanatory statement
This amendment removes a reference to a paragraph that was removed at Report.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, Amendment 1 is minor and technical and is consequential to the amendment made on Report in the name of my noble friend Lady Noakes.
My noble friend’s amendment removed the power for the Secretary of State to determine a pension or gratuity for non-executive members. This government amendment is needed to remove a reference to that power, which no longer exists, in paragraph 7(4) of Schedule 1. This paragraph disapplies the power for the Secretary of State to determine a pension or gratuity for the Government Chief Scientific Adviser, who will sit as a non-executive member on ARIA’s board ex officio. The power is of course not relevant in this case due to the Chief Scientific Adviser’s existing employment and pension entitlement as a civil servant. As the original power no longer exists, I am sure that noble Lords will agree that this reference needs to be removed to tidy up the Bill before it returns to the Commons for consideration of the amendments made in this House.
Viscount Stansgate (Lab)
My Lords, is it in order to congratulate the noble Baroness, Lady Noakes, on her success in moving her amendment in Committee? I watched as it went through and I thought how pleasing it must be for anyone to get an amendment accepted by the Government.
Lord Callanan (Con)
My Lords, it is my great pleasure to thank all those who have supported the progress of this Bill. I first thank my Whip, my noble friend Lady Bloomfield, who is currently demonstrating just how good she is at multi-tasking because she is in Grand Committee supervising another piece of legislation going through. It is always a joy to work alongside her with her support, capability and good humour.
As we have debated this Bill, I am of course grateful to have witnessed the shared ambition across the House for our nation to cement its role as a science superpower and for recognition of the important role that additional funding for high-risk research can play within that, through the ARIA model. While this is a relatively short Bill, the debate has none the less been thorough, as is right and proper in this House—from the role of ARIA in the R&D landscape to the definition of gratuities. It has demonstrated once again the important function of this House.
To that end, I join the noble Viscount, Lord Stansgate, in thanking my noble friend Lady Noakes for her efforts in sharpening the governance arrangements set out in the Bill, and my other noble friends Lord Willetts, Lord Lansley and Lady Neville-Rolfe, among others, for contributing their considerable experience.
I thank, on the part of the Opposition, the noble Baroness, Lady Chapman, for her constructive challenge on many parts of the Bill. I think we worked well together, and I look forward to continuing to work with her on future Bills. I also pay tribute to the noble Lords, Lord Ravensdale, Lord Fox and Lord Clement-Jones, the noble Viscount, Lord Stansgate, and members of the Science and Technology Committee for their very thoughtful contributions. I particularly welcome the thoughtful debate we have had on, for instance, intellectual property and the importance of retaining its benefits. I thank all noble Lords who spoke on these important issues. I am sure that the noble Lord, Lord Browne of Ladyton, especially, will closely follow the words of the Science Minister as the Bill returns to the other place.
It would be remiss of me not to also thank, once again, the excellent team of officials who have been behind me on this Bill. As always, I am just the front guy, as it were. Their support has been invaluable and a tribute once again to the finest traditions of the Civil Service. I particularly single out my private secretary, Hannah Cowie, for her support; the Bill manager, Andrew Crawford, and his deputy, Salisa Kaur; and Katie Reardon, Alex Prior, Robert Magowan and Charles Norris for their work over the last 18 months—a considerable time—to take this Bill forward and, hopefully in the near future, get it on the statute book. I also thank the broader ARIA team and colleagues across government who are undertaking the programme of work to make it a brilliant and realistic success.
Finally, let me recognise the exemplary work of the parliamentary counsel in both drafting this Bill and supporting its progress at so many points during its passage so far, and, of course, the House authorities, parliamentary staff, clerks and doorkeepers. As I mentioned, this is a relatively short Bill, but I really do believe its potential impact is profound. I know I am not alone in this House in looking forward in anticipation to all that will come out of ARIA and the benefits it will create for the research community, businesses and the everyday lives of people across this country.
Lord Fox (LD)
My Lords, first I should apologise for not being here to participate in the Report stage of this Bill. My disappointment was alleviated by the knowledge that my colleague and noble friend Lord Clement-Jones would more than compensate for my absence. I thank him for that and for his assistance throughout consideration of the Bill, and my noble friends Lady Randerson and Lord Oates for their work. I also thank the Minister, the noble Baroness, Lady Bloomfield, and the departmental team that has seen this Bill through; and the noble Baroness, Lady Chapman, the Labour Party and their team for working with us and the Cross-Benchers in a collegiate way. This was an example of good scrutiny coming to the fore. Finally, a big thank you to Sarah Pughe in our office for her support.
We still do not really know what ARIA is. Until it is decided who is leading ARIA, we will not know what its purpose is or how it will interact with the rest of the research environment. During the debate the Minister undertook to keep us informed—while enshrining secrecy in the Bill, of course, at the same time. So, I hope he will be able to keep us well informed as this effort unfolds —indeed, perhaps in advance of things happening. Without wishing to rain on the parade, we should keep a sense of proportion about what this is. This primary legislation has put in place a research effort worth about £200 million to 300 million per year. Meanwhile, the UK’s participation in Horizon Europe has more or less evaporated. During the debate, there were many discussions about the effectiveness of UKRI. In accepting this Bill and moving forward with ARIA, we would be grateful if the Minister also addressed these two elephants in the room: the continued participation of the United Kingdom in Horizon Europe and making sure that UKRI is as effective as it really can be, in order to make a big difference to the research effort in this country.
Baroness Chapman of Darlington (Lab)
My Lords, we are pleased to see ARIA move to its next stage and we look forward to the inventions and innovations that will come from it. I was particularly pleased to see the amendment from my noble friend Lord Browne, which will secure the intellectual property that comes about as a result of investment by taxpayers via ARIA. I hope that Ministers in the other place see the benefit of it and feel able to support it. We will, of course, be listening very carefully to what is said about that.
As the Minister well knows, we are concerned by the rejection of the amendments on transparency and accountability. As the noble Lord, Lord Fox, rightly reminded us, the research environment has changed dramatically since our departure from the EU, and we would encourage Ministers to resolve their outstanding differences and make sure that Horizon participation is secured for the future.
However, for today, I would just like to thank the Minister and his team. He is correct in what he said about the nature of the discussions we had. This is my first Bill in this place and I have learned an awful lot and made some new friends, I think, through the process of the Bill, particularly my noble friend Lord Stansgate, and the noble Lords, Lord Morse, Lord Ravensdale, Lord Fox and Lord Clement-Jones—I have already mentioned my noble friend Lord Browne. I also thank the officers of the House and all other noble Lords who contributed. I should put on record, too, my thanks to Dan Stevens, our political and legislative adviser, who has been enormously helpful to me, as a new Member, in being prepared for the process of seeing through a Bill in this place. I thank all noble Lords who contributed.
ADVANCED RESEARCH AND INVENTION AGENCY (WAYS AND MEANS)
Monday 31st January 2022
(2 years, 10 months ago)
Commons ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Amendment Paper: Commons Consideration of Lords Amendments as at 31 January 2022 - (31 Jan 2022)
Advanced Research and Innovation Agency Bill (Programme) (No. 2)
Monday 31st January 2022
(2 years, 10 months ago)
Commons ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Amendment Paper: Commons Consideration of Lords Amendments as at 31 January 2022 - (31 Jan 2022)
Advanced Research and Invention Agency Bill
Monday 31st January 2022
(2 years, 10 months ago)
Commons ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Amendments as at 31 January 2022 - (31 Jan 2022)
19:44 - The House divided: - Ayes: 304 / Noes: 208 - Question accordingly agreed to.
Madam Deputy Speaker (Dame Rosie Winterton)
I must draw the House’s attention to the fact that financial privilege is engaged by Lords amendments 1, 12 and 14. If the House agrees to any of these Lords amendments, I shall ensure that the appropriate entry is made in the Journal.
Clause 2
ARIA’s functions
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (George Freeman)
I beg to move, That this House disagrees with Lords amendment 1.
Madam Deputy Speaker
With this it will be convenient to consider Lords amendments 2 to 15.
George Freeman
I am delighted that the Bill to create this exciting new agency has returned to this House and that I am able to speak to it for the first time in my role as Minister for Science, Research and Innovation. I pay tribute to my ministerial colleague Lord Callanan for his work on the Bill in the other place. Not for the first time in matters scientific, their lordships have kept our Minister very busy on the Front Bench. I also pay tribute to my hon. Friend the Member for Derby North (Amanda Solloway), who so capably led the Bill when it was first before the House.
There are 15 amendments for our consideration tonight. Fourteen of those were tabled or supported by the Government. I will summarise them quickly. Amendments 2 to 8 relate to changes the Government made in response to the Delegated Powers and Regulatory Reform Committee’s report on the Bill. In doing so, we demonstrated the seriousness with which we take the DPRRC’s recommendations and the Government’s commitment to acting upon them. The effect of those amendments is to omit clause 10, which contained a broader power to make consequential provision, and to replace it with a narrower, more specific power in clause 8. The new power can be used only in consequence of regulations dissolving ARIA. Other amendments are needed to tidy up the rest of the Bill and reflect that change. I hope that the changes are, in general, welcome.
Amendments 9 and 10 remove a power for ARIA to pay pensions and gratuities determined by the Secretary of State to non-executive members. We have tested that thoroughly and are content that in ARIA’s specific case, that power is not needed. Again, the two amendments reflect the usual process of improving the Bill in response to scrutiny and the expertise that colleagues here—and in particular in the other place—have brought to bear.
Amendments 11 and 13 remove the amendments previously included in the Bill that had the effect of reserving ARIA. I have had productive discussions on this with my ministerial colleagues in Wales, Scotland and Northern Ireland, to reiterate the importance of ARIA and our broader science policy to help strengthen the Union. I am delighted that they share my vision and ambition for ARIA and that we have reached an agreement on the independence of ARIA—a memorandum of understanding that is a shared commitment to safeguard the organisation’s most important characteristics, and which means the reservations are not needed. I am delighted to be able to report that legislative consent motions have been passed in all three devolved legislatures on the basis of that agreement, and I similarly commend it to the House.
Government amendments 12, 14 and 15 apply some relevant obligations to ARIA that would normally apply automatically to public authorities listed in the Freedom of Information Act 2000. The amendments provide for ARIA to be treated as a public authority for the purposes of the Data Protection Act 2018, the Income Tax (Earnings and Pensions) Act 2003, the Enterprise Act 2016 and the Small Business, Enterprise and Employment Act 2015. They also amend various regulations and the UK GDPR to reflect that. That ensures that ARIA is treated in the same way as a public organisation normally would be treated in those important areas.
Daniel Zeichner (Cambridge) (Lab)
The Minister will know from previous discussions that the question of freedom of information has come up before. Would it not be much simpler just to make ARIA subject to the Freedom of Information Act? In the current climate, would that not reassure the public?
George Freeman
It may reassure the public, but we also have to take into consideration the fact that to succeed, world-class scientists have been recruited to ARIA to lead in cutting-edge science. That very small staff need to be sure that they will not be tied up answering 101—often spurious—freedom of information requests from the media, who are keen on running stories. We want to make sure the agency is accountable properly but not bogged down in what can be hugely onerous freedom of information requests.
John Redwood (Wokingham) (Con)
In that connection, could the Minister give the House some brief guidance on what he, as the accountable Minister, would expect by way of discussion and influence over corporate plans and budgets and onward reporting to the House?
George Freeman
I am grateful to my right hon. Friend for that question, and he will not be surprised to know that it is one I have also been asking since coming to this role. The point of ARIA is to be a new agency for doing new science in new ways, and it has been structured specifically to avoid meddling Ministers, even those with a good idea, and meddling officials, even those with good intent, and to create an agency that is free.
My right hon. Friend asks an important question. As we appoint the chief executive officer and the chair, the framework agreement will set out, a bit like a subscription agreement, the agency’s operating parameters, which will be published in due course. Each year ARIA will have to report on its stated plans. Crucially, as is so often not the case in scientific endeavour, ARIA will report where happy failure has occurred so that we do not continue to pour more money into scientific programmes that have not succeeded, which I know will reassure him. We want ARIA to be free to be honest about that, and not embarrassed. ARIA will be annually accountable through the framework agreement.
Finally, Lords amendment 1 deals with the conditions that ARIA may attach to its financial support. This arises from a series of important discussions in the other place relating to ARIA’s duty to commercialise intellectual property that may be generated, which I am keen to address properly. However, the amendment, as drafted, does not actually prevent ARIA from doing anything; it adds examples of conditions that ARIA may attach to financial support, but ARIA already has the general power to do just that. Legally, the amendment simply represents a drafting change. As such, we cannot accept it, but we understand and acknowledge the importance of the point that the noble Lord Browne had in mind.
It is our firm belief that, although it is not appropriate at this stage to specify ARIA’s contracting and granting arrangements in legislation, we recognise the substance of the concerns underlying the amendment: namely, that ARIA should have a duty to the taxpayer to ensure it is not haemorrhaging intellectual property of value to the UK. I will outline our position on that.
The amendment focuses principally on overseas acquisition of IP relating to the principles on which the Government intervene in foreign takeovers of UK businesses, particularly where those businesses have benefited from public investment in research and development activities. The National Security and Investment Act 2021, which fully commenced earlier this month, provides just such a framework, and it marks the biggest upgrade of investment screening in the UK for 20 years.
The NSI Act covers relevant sectors, such as quantum technologies and synthetic biology, that have benefited from significant public investment, and it permits the Government to scrutinise acquisitions on national security grounds. This new investment screening regime supports the UK’s world-leading reputation as an attractive place to invest, and it has been debated extensively in both Houses very recently. We do not believe that revisiting those debates today would be productive.
Although the NSI Act provides a statutory framework, a much broader strand of work is under way. As Science Minister, I take very seriously the security of our academic and research community. A number of measures have been taken in the past few months and years to strengthen our protections. We are working closely with the sector to help it identify and address risks from overseas collaborations, while supporting academic freedom of thought and institutional independence.
Members do not need me to tell them that intellectual property is incredibly valuable and we increasingly face both sovereign and industrial espionage. It is important that we are able to support our universities to be aware of those risks and to avoid them. The Bill already provides the Secretary of State with a broad power of direction over ARIA on issues of national security, which provides a strong mechanism to intervene in its activities in the unlikely event it is necessary to do so.
Stephen Flynn (Aberdeen South) (SNP)
I welcome the Minister to the Dispatch Box for the first time on this Bill. He is saying that ARIA can already do this, so the Government do not need to legislate in this regard, but that the Government would, none the less, be keen to see ARIA do it. There seems to be a discrepancy in that thought process.
George Freeman
There is no discrepancy. I will explain why but, essentially, the Bill already sets out ARIA’s statutory responsibility to generate economic return for the UK, and the hon. Gentleman will know, as I do from my career negotiating intellectual property agreements, that at this stage it would be wholly inappropriate to mandate in statute the form that these intellectual property agreements will take. To be blunt, we do not yet know what programmes the chair and chief executive will put in place. It is only when we know the sort of science that ARIA is doing that we will possibly be in a position, through the framework agreement, to set out the appropriate ways to ensure that value is maximised.
Security issues will also be a core consideration in ARIA’s governance arrangements in the framework agreement to ensure its effective functioning as an organisation. I confirm to colleagues that the framework document, which deals with those issues, will include obligations on ARIA to work closely with our national security apparatus. That is prudent to ensure that ARIA’s research is protected from hostile states and actors and to stay connected to the Government’s wider agenda on strategic technological advantage.
The Government’s chief scientist, who will be on the ARIA board, will bring intelligence and expertise across security issues within Government, supported by the new Office for Science and Technology Strategy and the National Science and Technology Council. ARIA will of course have internal expertise to advise its board and programme managers, while also working with recipients of its funding in universities and businesses on research-specific security issues. That will be vital for ARIA to stay at the forefront of responding to the challenging nature of the UK’s interests in this area.
There is also the question of how ARIA responds to the UK’s strategic interests in science and technology more generally where they may not quite fall under the national security umbrella. The integrated review, the creation of the new OSTS and the National Science and Technology Council, on which I sit, outline our ambition to ensure that there is a serious, strategic machinery of government commitment to the strategic industrial advantage of UK science and technology. That is a fundamental priority for me and the Government more broadly.
ARIA is nestled within that structure and is required to be aware of all those priorities, but we must keep its role in perspective. It will be only a small part of a landscape that we are explicitly seeking to make independent of Government and free to explore new funding approaches. The whole point of ARIA is to be a new agency and to do new science in new ways.
Graham Stringer (Blackley and Broughton) (Lab)
The Minister is being admirably blunt about keeping interfering Ministers and officials from controlling or influencing ARIA, but there is also influence from the scientific establishment, which has its own programmes and would like the sums of money in ARIA to go to them. Given the structure of the board, is he satisfied that ARIA will maintain its independence not just from the civil service and Ministers, but from the scientific establishment?
George Freeman
The hon. Member raises a very important point. Yes, I am satisfied, and for this reason: the way in which the agency has been established through the Bill and our plans to appoint the CEO and the chair on the basis that they will set out a very bold vision for ARIA to be the agency for new science in new ways. All the support that we are providing is specifically designed to allow them to operate in an environment where they can draw on the very best of UK science infrastructure and expertise, but not find themselves bound by either the short-term grant application process that dominates or the often substantial interests seeking investment in their own field. We will be able to attract the people we intend to attract because of that freedom. For that reason, I am confident—as that will be set out in the framework agreement and held to account by the board of ARIA and the scientific advisory board—that we will be able to ensure that that is the case.
Although ARIA will operate independently, it will be guided by key obligations regarding economic and UK benefit. ARIA must, in all its activity, have regard to the economic growth or economic benefit in the UK, alongside other considerations. That statutory obligation is set out clearly in clause 2(6), and it is right that that is in the Bill. Public investment in R&D must drive long-term socioeconomic benefit and deliver value to UK taxpayers. ARIA will be scrutinised by Government and Parliament on how effectively it fulfils its functions, including that one.
I can confirm that mechanisms for that scrutiny will be in the framework agreement. This includes requiring an internal evaluation framework for ARIA programmes—that deals with the point made by my right hon. Friend the Member for Wokingham (John Redwood)—and looking at, for example, their expected benefits and alignment with the organisation’s strategic objectives. It also includes setting the terms on which ARIA produces annual accounts and reporting, through which ARIA’s CEO will be accountable to Parliament for how the resources allocated to it are used. The National Audit Office will be able to examine the value for money of ARIA’s activities, and we in the Government must be assured of that value, on which ARIA’s future funding will depend. Everyone involved is clear about that.
There are many ways in which the obligations that I have set out might be felt in respect of how ARIA operates. For example, ARIA may employ contracting arrangements that require funding recipients either to seek to exploit the outputs in the UK or forfeit the funding, as other funders routinely do. In some cases, ARIA may retain IP rights—it has that freedom—and will be able to draw on specialist support from the new Government office for technology transfer. That will help ARIA to extract the greatest possible value from its knowledge assets.
In general, we expect ARIA programmes to produce long-term, deep scientific benefits that are felt over the long term, and to support the highest-risk research where there is a clear role for public funding. It would be premature to seek to legislate in statute at this point, before the appointment of the CEO and the chair or the establishment of the funding programme plan. In addition to that being premature, given that its very freedoms will be a major attraction for people to come from around the world to work at the agency, we are concerned that to be seen to shackle those freedoms in statute may well disincentivise the most innovative scientists and researchers from coming to join programmes.
Finally, this issue encompasses the entirety of our R&D system and approach to investment in UK science and technology and we are extremely focused on it, but changes to ARIA alone cannot alter the wider environment. We must ensure that funding from ARIA is not subject to more stringent conditions than other public R&D funders, because that would undermine the independence and agility that are the defining characteristics of this exciting initiative for UK science.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I welcome the Minister to his place in leading on this important Bill and echo his thanks to the former Minister, the hon. Member for Derby North (Amanda Solloway). I also thank colleagues in the other place who have worked so hard to improve the Bill. In particular, I thank my noble Friend Lord Browne for his successful and much-needed amendment to protect Britain’s intellectual property.
The UK has a proud tradition in science and innovation. We are renowned around the world for the scientific breakthroughs and discoveries that have pushed humanity forwards. From the discovery of penicillin to the invention of Stephenson’s Rocket—in Newcastle—UK science has again and again pushed the boundaries of humanity’s knowledge.
UK science is not only inspiring but key to our health and that of our economy, as the pandemic has shown. Our university research base alone contributes £95 billion to the economy, supporting nearly 1 million jobs in science institutes, charities and businesses of all sizes. We have many innovative start-ups throughout the country that require only the right support to contribute to the innovation nation that our history, economy, security and future prosperity all demand. That is why it is so important that we get the Advanced Research and Invention Agency right.
ARIA, originally the brainchild of very-much-former adviser Dominic Cummings, is positioned as a high-risk, high-reward research agency, based on the Defence Advanced Research Projects Agency in the US. Labour welcomed ARIA and continues to support it—it has great potential to fill a gap in the UK’s research and development landscape and help deliver fantastic inventions—but we are clear that the benefits of ARIA’s investments must be felt in the UK. We are equally clear that without Lords amendment 1, that may not be the case.
Lords amendment 1 would give ARIA the option to treat its financial support to a business as convertible into an equity interest in the business and thus to benefit from intellectual property created with ARIA’s support. It would also enable ARIA to require consent during the 10 years following financial or resource support, if the business intended to transfer intellectual property abroad or to transfer a controlling interest to a business not resident in the UK.
George Freeman
To assist the hon. Lady before she decides whether to divide the House, I just wanted to make it very clear that there is a statutory obligation on ARIA, set out clearly in clause 2(6), that it must have regard to
“economic growth, or an economic benefit, in the United Kingdom”
as a core part of its statutory duties. We simply want to make sure that the leadership team, through the framework agreement, have the freedom to set out what the right mechanism is, rather than to mandate it now.
Chi Onwurah
I thank the Minister for that intervention, which demonstrates that he is with us in spirit but he just does not want to be with us in actual legislation. There is something of a confusion of thought there. I am very familiar with the clauses that require ARIA to have regard to economic benefit, but if he thinks this is something ARIA should be doing and should look to do—again, as we have said, this amendment is enabling and not prescriptive—surely he should be happy to make that clear. If he thinks it is too constraining for ARIA to do this, he ought to make that clear. He is the Minister and this Bill should reflect what the intent is, and the intent should be to ensure that the benefits from intellectual property generated, created and invented in the UK should be felt in the UK.
Lords amendments 2 to 8 limit ministerial powers to dissolve ARIA, in response to the delegated powers in the Regulatory Reform Committee’s report on the Bill, and we will not oppose those amendments. They prohibit the Minister from making consequential amendments to primary legislation and from dissolving ARIA in the first 10 years. Lords amendments 9 and 10 remove the Minister’s powers to determine a pension or gratuity for non-executive ARIA members. It should be noted that the Minister appoints non-executive members to ARIA’s board, and it is refreshing to see a Conservative Government taking steps to limit cronyism in advance of major losses to the public purse. Lords amendments 11 and 13 mean that ARIA will no longer be treated a reserved matter in relation to Scotland, Wales and Northern Ireland, and we also do not oppose this. Labour is clear that devolved voices must be heard and that scientific opportunities must be spread across the UK, so the consent of devolved Administrations is crucial.
Lords amendments 12, 14 and 15 provide for ARIA to be treated as a public body under the Income Tax (Earnings and Pensions) Act 2003, the Small Business, Enterprise and Employment Act 2015, the Enterprise Act 2016 and the Data Protection Act 2018. My colleague in the other place, Baroness Chapman of Darlington, pointed out, as did my hon. Friend the Member for Cambridge (Daniel Zeichner), that this would not be necessary if ARIA was subject to freedom of information requests, something that Labour has repeatedly called for. The Government were so busy trying to ensure that ARIA would not be treated as a public body for the purposes of FOI that they had to tack on these amendments. That these amendments were tabled only at the Committee stage in the Lords points to Government negligence. We have here a Government too busy trying to avoid accountability to do their job properly— why does that sound so familiar?
Graham Stringer
Does my hon. Friend agree that, during the covid epidemic we have been through, some of the mistakes that have been made came about because the Government were not as open as they could have been with the scientific advice, and that FOI and openness are of value to the scientific method itself? To exclude this body from FOI potentially detracts from the science. We saw another example of this 11 years ago, with the “climategate” emails at the University of East Anglia, when people did not operate openly and it caused scientific problems.
Chi Onwurah
My hon. Friend makes two very important points. First, many of this Government’s mistakes have been due to lack of transparency, not only in the original policy of giving contracts to friends but in the follow-up of explaining those actions. Transparency is always a very good thing. Secondly, the scientific method is about openness. That is how ideas, inventions and progress are made in science. Critically, DARPA, on which ARIA is supposedly based, is subject to the freedom of information process and finds that that helps it in its work.
To conclude, Labour welcomes ARIA. Science and research can be the engine of progress for our society, and we welcome investment in our sciences. That investment, however, must benefit the people who pay for it: the British public. Without Lords amendment 1, we have no assurances that that will happen. If the Government want Britain to be a science superpower, why will they not protect British science and tech IP?
Stephen Flynn
In the greatest traditions of this House, I intend to be brief, which I am sure will be to everyone’s pleasure.
The biggest issue before us is, of course, Lords amendment 1. I listened closely to what the Minister had to say, but I remain to be convinced. He has paid deference to the clause, which says, if I recall correctly, that ARIA “must have regard to”, while the amendment simply seeks to ensure that ARIA “must”. That is a strong difference to which the Minister should give cognisance, particularly given that, in effect, we could be talking about the crown jewels. We are all hopeful that ARIA will be an impressive institution that will reap rewards for all of us right across the four nations of this United Kingdom—while we remain within it, of course. I find it a little contemptuous that the Government do not want to be on that side of the argument.
The topic of equity has been raised. There are some very famous examples. For instance, though this is slightly different, the US Government provided a significant amount of money in a loan to Tesla. That money was subsequently paid back a number of years ago, prior to Tesla becoming one of the world’s wealthiest companies and, indeed, to Elon Musk becoming one of the world’s wealthiest men. There should be a lesson in that for the Government, and it is one that they should heed.
From what I have heard, the Minister seems to be in broad agreement. He thinks that what is in place will allow this to happen in any case. I hope that over the course of the remaining debate, to which I am sure there will be an extensive number of contributions, he may be swayed to agree to Lords amendment 1.
Sarah Olney (Richmond Park) (LD)
I, too, will keep my comments brief. The Liberal Democrats have been supportive of this Bill from the start, since its Second Reading. We very much welcome the opportunity and, indeed, the new vehicle to get funding into science and technology in this country.
I join the hon. Members for Aberdeen South (Stephen Flynn) and for Newcastle upon Tyne Central (Chi Onwurah), however, in saying that the absolute priority must be to ensure that that investment stays in this country and benefits the people, including the investors, those who may benefit from employment and, indeed, every single one of us who seeks to benefit from the new innovation for which this money may well pay. A couple of weeks ago I visited my former employers at the National Physical Laboratory in Teddington, where I saw for myself the incredible work that is taking place on battery technology and hydrogen technology. There is so much potential for the future, but this country has traditionally been really bad at converting that incredible R&D skill into entrepreneurism and innovation and at building sustainable businesses. That is why I think it is so important that we support the Lords amendment, and it is certainly why we will vote against the Government’s motion.
Question put, That this House disagrees with Lords amendment 1.
Advanced Research and Invention Agency Bill
Wednesday 9th February 2022
(2 years, 10 months ago)
Lords ChamberRead Full debate Advanced Research and Invention Agency Act 2022 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 105-I Motion for Consideration of Commons reason - (8 Feb 2022)
Lord Callanan
That this House do not insist on its Amendment 1, to which the Commons have disagreed for their Reason 1A.
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, before turning to the substance of the amendment, I thought it would be a good time to address briefly the other major milestone in the creation of ARIA that we have reached since the Bill was last before this House. On 1 February, Dr Peter Highnam was announced as ARIA’s first CEO. I know that Peers had significant interest in this appointment during our previous debate on the Bill, given the critical role the CEO will play in leading the formation of the agency and directing its initial funding.
I hope noble Lords are reassured by Dr Highnam’s wealth of experience, as he joins from DARPA where he has served as deputy director since February 2018. I hope noble Lords will agree that he is uniquely capable of stepping into what will be a very important role at such a critical stage of its development. He will take up his post in May, starting discussions with stakeholders in the UK R&D system across academia, business, government and, of course, here in Parliament.
Amendment 1 deals with the conditions that ARIA may attach to its financial support, in response to the considerable concerns that have been so carefully and expertly championed by the noble Lord, Lord Browne of Ladyton. In his concluding remarks on Report, the noble Lord set out his desire, following more informal discussions, to hear my colleague, the Minster for Science, Research and Innovation, outline the Government’s position on this issue in the House of Commons. I certainly hope that, having heard the Minister’s remarks last Monday, he will have been pleased to hear him go slightly further than I was able to go when we last discussed the Bill in this House.
The Minister gave further assurances on two aspects, which I will quickly repeat here. The first is the seriousness with which he is taking the security of our academic and research communities, and new activities to identify and address risks from overseas collaborations while supporting institutional independence. He confirmed that obligations would be placed on ARIA to work closely with our national security apparatus, to maintain internal expertise to advise ARIA’s board and programme managers, and to work with the recipients of ARIA’s funding in universities and businesses on research-specific security issues. This will ensure that ARIA’s research and innovation is protected from hostile actors, and, most importantly, connected to the Government’s wider agenda on strategic technological advantage.
Secondly, and more broadly, the Minister addressed the benefits created by ARIA and our approach to maximising and retaining them. Specific businesses, often in important and emerging areas of technology, have been mentioned many times during our debate on this amendment, and the lack of consistent guiding principles behind the engagement and support that they have received from government has been held up for particular criticism. On this, I hope that noble Lords noted the Science Minister’s identification of the serious new machinery of government coming together to drive the agenda of strategic industrial advantage of UK science and technology as a fundamental priority for the Government and for him personally.
The office for science and technology strategy, the national technology adviser and national science and technology council together represent a new and significant architecture to support a new strategic government approach. Clearly, some patience will be needed while this beds in, but the ambition which the Science Minister outlined behind this change should go at least some way towards addressing the concerns that have been raised previously by the noble Lord, Lord Browne.
Similarly, questions have been raised in both Houses about ARIA’s obligations to create wider public benefit, and I should reiterate that public investment in research and development, including through ARIA, must drive long-term socioeconomic benefit and deliver value to UK taxpayers. This obligation will be felt by ARIA on several levels: first, through the Bill and ARIA’s statutory duty in Clause 2(6) to consider economic growth or economic benefit to the UK, among other considerations. This is the right degree of specificity for primary legislation. Secondly, mechanisms for assessing how effectively ARIA carries out its functions, including this duty towards UK benefit, will be detailed in ARIA’s framework document. This was the other set of commitments which the Science Minister provided in the House of Commons.
These mechanisms will enable the action that ARIA takes to respond to its statutory duty towards UK benefit to be evaluated. As the Minister set out, this will include obligations for ARIA to put in place a programme evaluation framework, considering its strategic objectives as well as detailing the contents of its reporting, which the Government and Parliament will use to hold ARIA to account for the value it provides in all the usual ways. Again, it is right that these more specific obligations are included in the framework document, as they must reflect the structure of ARIA’s programmes and require greater flexibility. These obligations will be set as ARIA’s overall governance and evaluation framework is finalised over the coming months, but I should like to echo the Science Minister’s comments that we will take seriously the concerns raised in the context of this amendment when doing so, as we share many of them.
The third and final aspect concerns the ways in which ARIA implements the obligations imposed on it—the statutory duty in the Bill and the obligations within the framework agreement that will help to give effect to it. As I have stated previously, we might expect ARIA to do so through its contracting and granting arrangements by requiring financial support to be repaid if recipients do not make an effort to exploit the outcomes within the UK—or, in some cases, by taking equity or retaining IP rights and seeking to maximise the value of these assets within the public sector. The Bill enables ARIA to do these things, but it is an arm’s-length body; we have placed a premium on its operational independence, and government should not intervene in its decision-making on these issues.
The questions for us here should be these. Does ARIA have all the powers and tools it needs to choose independently from a full suite of ways in which to deliver these obligations? I would submit that it does. Have we got the balance right in the first place with the obligations to produce and evidence benefit placed on ARIA through the Bill and in the framework document, which we then use to hold it to account? On the second point, I recognise that noble Lords have been pressing for us to go further, and I should reflect that in response to the questions posed in this House, and by the noble Lord, Lord Browne, in particular, we have now made concrete commitments to Parliament about the obligations on ARIA and greatly refined our thinking on the work that it is still to do.
I hope the Science Minister’s assurances were useful in demonstrating the seriousness with which these concerns are being taken and our commitment to reflecting a mindset focused on public benefit in ARIA’s governance framework, as that document is finalised. I therefore strongly hope that noble Lords will be content with the progress that has been made on this issue and I look forward to reaching further milestones in the creation of this important new public body. I beg to move.
Lord Browne of Ladyton (Lab)
My Lords, I thank the Minister for his opening remarks and his comprehensive repetition of what George Freeman, the Minister, said in the other place. To a degree, I am reassured. My concern is how I will know that the Government live up to the undertakings implied in the words of the Minister. I will come back to him in a moment. I intend to be brief.
I particularly thank the Minister for his generous remarks about me, but they ought to be shared by a significant number of Members in all parts of the House who contributed to the debate we had on the amendment. That the House was minded to support the amendment had more to do with Members’ combined advocacy than the way in which I introduced it. I also thank the Minister and his office for earlier this week drawing my attention to the Government’s recent announcement that Dr Peter Highnam has been appointed as ARIA’s first CEO. This man seems uniquely qualified to do this job; I suppose DARPA is the only place that he could have got the experience. He is also uniquely equipped to negotiate the framework agreement with the Government, which will be important to how ARIA works.
I accept that the Commons reason is not challengeable, and I do not intend to debate that or to divide the House on the noble Lord’s Motion. However, as the Minister and his office helpfully reminded me a week ago, while speaking to my amendment on Report, I set out my wish to hear the Science Minister address at the Dispatch Box the issues that prompted the amendment in the first place. At least I should address what he said, and I will do that for a few minutes, with the leave of the House.
In the other place, George Freeman acknowledged the importance of ARIA having a duty to the taxpayer to ensure that the intellectual property generated by its investment in R&D is commercialised to the advantage of the UK economy primarily, and to ensure that it is not
“haemorrhaging intellectual property of value to the UK.”—[Official Report, Commons, 31/1/22; col. 86.]
That reflects what he said to a number of noble Lords who met him before Report. To paraphrase another member of the Government, he gets it and clearly seems to understand the issue. The question is whether the Government have a plan to address this issue and will be able to share the development of the plan with Parliament properly. That is what I want to concentrate on now.
Turning to what the Science Minister said, he first referred to the terms of the amendment and argued that, as drafted, it added only examples of the conditions that ARIA may attach to financial support and, as it already has a general power to do just that, it represented a drafting change that cannot be accepted. There is no merit in this argument. The fact is that the Bill, as already drafted by the Government, already has examples of conditions that ARIA may attach to financial support in Clause 2. They are almost certainly there because the Government want to highlight those powers, not because those examples need to be there to give those powers to ARIA. Our amendment simply adds to their existing list and has a similar motivation—to emphasise and highlight the importance of this power.
On the specific issue of predatory overseas acquisition of IP through foreign takeover of UK businesses where there has been substantial public investment in R&D—there are many past examples of this, to the detriment of the UK economy—the Minister reassured the other place that the National Security and Investment Act 2021, which fully commenced in January, already provides a relevant and sufficient framework for the Government to scrutinise acquisitions on national security grounds. The Minister also referred to a broader strand of work that is under way to enhance that statutory framework, including other unspecified complementary measures designed to help the Government strengthen our protections. Perhaps the Minister can expand on that. He made some general references to it, but I am not clear as to what work is going on. I think the House would benefit if there was further specification. It may not be appropriate to do it now, but maybe it could be spelled out more clearly at some time in the future.
The Minister reassured the House that the Bill already provides the Secretary of State with a broader power of direction over ARIA on issues of national security, but the amendment was never intended to intervene in the Secretary of State’s powers. This is of limited comfort, as my honourable friend Chi Onwurah pointed out, national security in the relevant legislation, the NSI 2021, is narrowly defined, and it does not include economic security, despite attempts by Labour to expand the definition in that Act so that it would include this. It therefore does not address the issue of intellectual property and its economic value.
The Minister then pointed out that the because of the terms of Clause 2(6), ARIA must have regard to economic growth or economic benefit in the UK, and the mechanism for scrutiny by government and Parliament will be in what the Minister refers to as the framework document. This is a weapon which the Government deploy regularly to see off amendments to the Bill. On Report, the Minister used the potential of the framework agreement, and what it could include, five times in debates. The problem is that none of us has seen the outline of the framework document, or even the Government’s bid for the negotiations of what the framework document will include. Until we see that, there is no way that any of us can judge its merit as a mechanism for dealing with the issues that we have raised.
Perhaps during the negotiations that can at least now commence after May, when there is a CEO, the Government will undertake to make regular statements, or at least one statement, to the House about their negotiating position, so that we get some sense of whether the many concerns about this Bill that the House has shared with the Minister can be allayed by the framework agreement or document. There is now a CEO and these negotiations can begin.
Finally, in the debate that took place in the other place, at col. 87, the Minister turned to the question of how ARIA responds to the UK’s strategic interests in science and technology more generally, where these may not fall under national security. I think he played his ace there: drawing attention first to the integrated review, which he did not expand on, and then to the role of the new Office for Science and Technology Strategy and the national science and technology council, and the Government’s ambition to ensure that there is a serious, strategic machinery of government showing a commitment to the strategic industrial advantage of UK science and technology. The Government’s argument is strong: we should be persuaded that this will deal with these issues because the Government have a core to their infrastructure that will drive these ambitions. There is a fundamental difficulty with this, however: it is impossible to find, in any government documents, any information about either the Office for Science and Technology Strategy, or the national science and technology council, which is a sub-committee of the Cabinet, other than that they exist and a very broad outline of the first organisation, which is designed to service the second one. I do not know how we are supposed to evaluate the strategic machinery of government, unless we know what they do.
There is something worrying happening to the accountability in our Government at the moment. There is a proliferation of sub-committees of the Cabinet. We have gone from having about six to having 20 in a matter of months. Almost every area of important public policy now has one or more such sub-committees to deal with it. The pattern appears to be—it certainly is with climate change—a strategic sub-committee and an implementation sub-committee. You can find out nothing about what any of these committees do.
So that we know what the relationship between Parliament and these committees now is, I will quote for the benefit of the House what Alok Sharma, the COP president, said to your Lordships’ Environment and Climate Change Committee in answer to a very reasonable question, in a questionnaire sent by the committee, about these two key pieces of machinery for climate change. The committee asked him:
“Are the two relevant Cabinet Committees”—
that is, the strategy committee and the implementation committee, which he chairs—
“expected to continue in the long-term, and what plans does the Government have to increase transparency around their proceedings?”
The answer to this is in a letter, which is on the committee’s website. I will read it in short, because in the first part Alok Sharma gave the impression that they are intended to continue, but he said:
“With respect to Committee frequency and transparency, it is a long-established precedent that information about the discussions that have taken place in Cabinet and its Committees, and how often they have met, is not normally shared publicly”.
So that is it.
If that is to be it for this infrastructure, which sits at the heart of the development of science and technology and ARIA, we will not find out anything. I honestly have no way of knowing whether I should be reassured by what the Minister said in the other place, if that was his ace card. To paraphrase my honourable friend Chi Onwurah in the other place, the Minister has set out that he shares our concerns, but I am afraid that I cannot really assess whether he has a plan to address them, because there is a whole part of what he intends to do that I will never be allowed to know.
Lord Lansley (Con)
My Lords, I very much appreciate what my noble friend on the Front Bench has said by way of response to the several debates that we had on the Bill about the centrality of intellectual property, and its protection and exploitation by ARIA. Often in your Lordships’ House, we send amendments to the other place, and occasionally—perhaps often—we find that they are not given the weight of debate at the other end that we think they deserve. On this occasion, it did, and I was much reassured by the Science Minister’s response, and by the appointment of Dr Highnam to the chief executive post.
I want to raise one question. In the midst of the many reassuring things that were said, including that the powers exist for ARIA, or through the NS&I Act, the framework document remains. I raised one issue on that in an amendment, which was whether under the framework document ARIA would be able to retain and reinvest the exploitation of intellectual property arising from its investments so as to create a growing activity in support of its mission of disruptive innovation. I hope that will be incorporated in the framework document. It was not referred to, so I hope that my noble friend will take note of it and that the Treasury will allow this to happen.
Viscount Stansgate (Lab)
My Lords, I will not detain the House for long, not least because many of the points I wanted to make have been ably made by my noble friend Lord Browne. I welcome much of the Minister’s speech and the appointment of the chief executive-designate. Considering his background, I venture to suggest that by the time he leaves the post he is about to fill, the name of the agency may have changed from ARIA to DARIA. That would reflect his personal background and possibly the way in which developments may move.
I also welcome what was said in another place by the Minister for Science, who the noble Lord, Lord Lansley, referred to. I have a high regard for the Minister for Science and thought that he addressed seriously some of the concerns raised in our debates. However, to echo my noble friend, I point out that the National Security and Investment Act still provides too narrow a basis for protecting what really matters about ARIA, which is the intellectual property that it is going to generate. It is a strange position to be in, but I think that the definition of national security, which does not take into account the economic security of this country and the intellectual property attached to that, would be a mistake and possibly a loophole. I regret the fact that the framework document to which the Minister referred has not yet been seen by anybody, and I hope that in the months and years ahead we will be able to debate that framework and the new scientific architecture, which the Minister rightly referred to, because we are moving into a new era.
It is not often that Governments anywhere launch a new agency with so little idea about what it will do and how it will do it. Nevertheless, I wish it well, and I hope that in the months and years ahead when we come back to discuss ARIA and its development we will be able to see the progress it has made, which I for one hope it will.
Lord Fox (LD)
My Lords, it came as no surprise that the Government used their majority to negate the amendment of the noble Lord, Lord Browne. The noble Lord has, in his tenacious way, set out why he regrets that, and I agree with him. It is not to be—it will not go to a vote—but I hope that the ARIA leadership will be more careful when they write the contracts for the money that they will give than perhaps the Government seem to be with enshrining this in law.
I agree with the noble Lord, Lord Lansley, that the Science Minister’s comments were very helpful. They were more than we would usually get in these games of ping-pong, and that is to his credit.
As the Minister set out, since we sent this Bill to the other place, the name of the ARIA CEO has been announced. It is nice to see the Minister looking so pleased about things. He often looks quite downcast, so it is quite good for him to arrive with something that he can be pleased about. We wish Dr Highnam all speed and wish him well in what is a very important task.
Others have suggested that we look forward to the framework document emerging. In answer to the previous speaker, I do not think that the Minister has not shared with us something that he is sitting on; the Minister has not seen the framework agreement yet either, because it has not been written. However, we look forward to seeing it as soon as it has.
The Government have also had some important things to say about their focus for future research funding—I am talking here about the UKRI numbers. In their levelling-up White Paper, they announced the intention to increase the percentage of funding from what is rather dismissively called the golden triangle to other institutions, often but not exclusively further north. I should remind your Lordships that I am an alumnus of Imperial College.
Very briefly, I wanted to relate this to ARIA and, more importantly, to the commercialisation of innovation. There is a disparity between universities that are better at commercialising their innovation and thereby having another income stream, and those that are less good at that. I hope that ARIA is able to lead some excellence in that and spread the effective commercialisation of knowledge and innovation better. That would contribute to the Government’s levelling-up agenda at the same time.
I also recently met with the UK Innovation & Science Seed Fund—known as UKI2S—which, as the Minister will know, acts as a bridge between public sector research and private capital. I would be interested to know from the Minister how this organisation can fit with ARIA and improve our overall commercialisation. I am sure the Minister will admit that the UK’s record on commercialisation has been patchy in the past and could definitely improve. I would suggest that UKI2S is one of the models that ought to be taken into account. I hope that the Minister might meet with me and that organisation to discuss this and how it might play into this space with its track record in order to deliver on the promise of ARIA. I think we all share the Government’s desire to—in the Minister’s words—drive the agenda for strategic, industrial advantage. With that, we hope that in 10 years’ time, ARIA will be seen to have played an important part in achieving that objective.
Baroness Chapman of Darlington (Lab)
My Lords, we accept the reason given by the other place for rejecting Amendment 1, but we continue to disagree on the substance. I place on record my thanks to the noble Lord, Lord Browne of Ladyton, for his work on this amendment. His sparkling curiosity and polymath tendencies, combined with his government experience, make him ideally suited to this issue. He has been incredibly generous with his time and knowledge, and I am grateful to him for that.
The noble Lord, Lord Browne, suggested a sensible amendment to protect benefits arising from the UK’s creativity and ingenuity in ensuring that the taxpayer—the investor—retains the benefit of it. The majority of noble Lords agreed with my noble friend when we tested the will of the House. In the absence of any measures enabling sufficient scrutiny of ARIA’s activities, we felt we needed this amendment. We are clear that the benefits of ARIA’s investments must be felt in the UK. Lords Amendment 1 would have assisted in this; it would have given ARIA the option to treat its financial support to a business as convertible into an equity interest in the business, and thus to benefit from intellectual property created with ARIA’s support.
It would also have enabled ARIA to require consent during the 10 years following financial or resource support if the business intended to transfer intellectual property abroad or transfer a controlling interest to a business not resident in the UK. As my honourable friend Chi Onwurah said in the other place, we have to acknowledge that currently
“the UK does not provide a sufficiently supportive environment for innovation start-ups to thrive. That is why we have already lost so many of them.”—[Official Report, Commons, 31/2/21; col. 89.]
It is welcome that Ministers have said they agree with our concerns. It is just unfortunate that the Government did not want to take this opportunity to act on our shared concerns and seemed to lack the resolve to do anything about it on this occasion. Finally, I wish the new leadership of ARIA and the agency itself well. We look forward to the innovations and inventions that it is able to bring us.
Lord Callanan (Con)
I thank the noble Lord, Lord Browne, in particular, and all noble Lords who participated in this brief debate. I do not think there is a huge disagreement between us on this. The noble Lord, Lord Browne, wanted us to be more specific; our point is that ARIA already has the power and ability to do all the things he mentioned, but we want it to retain its operational independence and flexibility.
I will address a number of the points the noble Lord raised. He will have carefully noted, and from his ministerial experience will know, that in the National Security and Investment Act we deliberately did not define what national security is, following the practice of all previous Governments, to give ourselves the flexibility to adapt to changing circumstances.
The noble Lord also asked for further details on what the Science Minister said in the other place. We have published guidance to the sector on trusted research and supported it in publishing that guidance. We have broadened the scope of the academic technology access scheme and defined the rules on export controls as they apply to research activity. The terms and conditions for government research grants were also amended last September to require due diligence and checks for any overseas collaboration.
As expected, a number of noble Lords raised the framework document. The noble Lord, Lord Fox, is right: I have not seen a final version of the framework document precisely because it has not been finished yet. It will be negotiated between BEIS and ARIA’s leadership team, including the new chief executive and chairman when he or she is appointed, for which we are currently recruiting. I assure the House that as soon as it has been agreed, we will share it with the House as soon as possible.
My noble friend Lord Lansley asked a very good question about the retention of any possible revenues within ARIA. He will know from his government experience that the Treasury will wish to negotiate these matters directly with the agency, so I will not step on the Chancellor’s toes and get myself into trouble by overcommitting him on that. I am sure that ARIA and the Treasury will want to have a full and frank discussion on these matters.
On the questions from the noble Lord, Lord Fox, I assure him that we expect ARIA to work with all partners across the research and development landscape, including on the commercialisation of products. He asked for a meeting with me. I suggest that I am not the right person to meet on that issue; it would be more appropriate for him to meet the Science Minister, who has responsibility for pursuing this support for the agency, and I will certainly put that question to him.
The ARIA team has met UKRI and its sponsors. We are learning lessons from this and other mindsets and models for how ARIA can ensure the successful translation and commercialisation of its technologies. I hope that that provides the appropriate assurances for the noble Lord, Lord Fox.
I think I have dealt with all the questions that were asked. With that, I beg to move.
Royal Assent
Thursday 24th February 2022
(2 years, 9 months ago)
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