Advanced Research and Invention Agency Bill

Debate between Baroness Chapman of Darlington and Lord Ravensdale

Committee stage
Wednesday 17th November 2021 Grand Committee

[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.