Energy White Paper

Debate between Lord Beamish and Lord Sharma

Monday 14th December 2020 Commons Chamber

[Alok Sharma]

My hon. Friend raises an incredibly important point. He will know that some weeks ago I set out some initial thoughts on a refreshed industrial strategy, and of course we must ensure that skills are at the front and centre of that. We in the Government have discussions around these matters, and I hope that during the early part of next year we will be able to set out a refreshed industrial strategy

[Mr Kevan Jones (North Durham) (Lab)]

County Durham has a proud and long history of coalmining. Ironically, it has left the county with a new valuable resource of green energy: the thermal heat from former coalmines. Durham County Council and Newcastle University are working together to develop the Seaham garden village project, which will tap into this new heat source for 1,500 homes. May I ask the Secretary of State to look at that and see how similar products could be spread out across County Durham and other former coalfield areas?

[Alok Sharma]

My right hon. Friend the Minister for Business, Energy and Clean Growth is already looking at this issue and has shown a great deal of interest. He will be happy to meet the right hon. Gentleman to discuss issues around geothermal.

National Security and Investment Bill

Debate between Lord Beamish and Lord Sharma

2nd reading & 2nd reading: House of Commons
Tuesday 17th November 2020 Commons Chamber

[Alok Sharma]

My hon. Friend raises a point that I know he has raised with my fellow Ministers, and other colleagues will raise a similar point. He talks about modern slavery. He knows that the Government passed the Modern Slavery Act 2015. The Home Office is looking to update and strengthen that. I note the points that he has raised, but the whole point of the Bill is for it to be narrow on national security grounds, and that is the way that it was constituted when it was first discussed in the Green Paper in 2017 and in the White Paper in 2018. However, I will try to address some of the points that he raised as I go on.

Those who seek to do us harm have found novel ways to bypass our current regime by either structuring a deal in such a manner that it is difficult to identify the ultimate owner of the investment, or by funnelling investment through a UK or ally investment fund, or indeed, by buying or licensing certain intellectual property rather than acquiring the company. Be in no doubt that the UK and our allies are facing a resurgence of threats. That is why we are updating our powers to screen investments into the UK. Our current powers date back to the Enterprise Act 2002. Technological, economic and geopolitical changes across the globe over the past 20 years mean that the reforms to the Government’s powers to scrutinise transactions on national security grounds are now required.

[Mr Kevan Jones (North Durham) (Lab)]

I welcome a lot of the proposals in the Bill, including on the issue of land and the removal of the thresholds in terms of ownership. One way that people have been able not only to get influence in this country but to launder money has been through the purchase of large amounts of property in the UK, which were highlighted in the Intelligence and Security Committee’s report on Russia. Does the Secretary of State see the Bill addressing that issue?

[Alok Sharma]

I will go on to the detail of that particular issue, but as the right hon. Gentleman identified, the Bill looks at assets and intellectual property. On the point that he raised about the size of transactions, as he knows, under the 2002 Act, apart from some limited exceptions, businesses being acquired must have a UK turnover of over £70 million or, indeed, the merger must meet a minimum 25% market threshold. This means that acquisitions of smaller but technologically sensitive companies are not covered.

The Government have been clear for a number of years about our intention to introduce new powers. Many of our international allies, including our Five Eyes partners, have also acted to update their legal frameworks to address national security risks. We, in turn, are seeking to update our legislation in a proportionate manner to ensure that we have more security for British businesses and people from hostile actors targeting our country; more certainty for businesses and quicker, slicker screening processes as we remain open to trade and recover from covid-19; and a regime that is in line with our allies, meaning that investors will be familiar with this approach.



Let me turn to some of the specifics of the Bill. Part 1, chapter 1 introduces a call-in power that the Government may use in relation to a trigger event across the economy that they reasonably suspect has given rise to or may give rise to a risk to national security. Trigger events include acquisitions of certain shares or voting rights in a qualifying entity, and the acquisition of material influence over such an entity. As the right hon. Gentleman pointed out, it will be possible for the first time to call in the acquisition of a right or interest in a qualifying asset, including intellectual property, where such an acquisition would enable the acquirer to use the asset or control or direct how it is used. That is similar to the US and other countries’ regimes.

The call-in approach is consistent with the 2002 Act, but importantly there are no minimum thresholds for the size of the business or asset to be acquired. That means that sensitive businesses and assets that may previously have slipped under the minimum size threshold will no longer do so. That will close the back door into the United Kingdom that hostile actors could exploit.

However, it is important to reassure the investment community that the Government expect to use these powers sparingly. We estimate that less than 1% of transactions in any given year will be subject to call-in. For transactions that fall outside the mandatory requirement of the regime, the Government will be able to call in a transaction within a period of five years of a trigger event having taken place where they have not been notified. When the Government become aware of a trigger event having taken place, they will have six months to issue the call-in notice. That five-year period is, again, consistent with regimes in Germany and France. The Bill requires that the Government publish a statement of policy intent explaining how they expect to use the power to issue a call-in notice.

Should the Bill become an Act, the Government’s call-in powers will apply from the date of introduction and will cover transactions that complete during its passage. That will ensure that hostile actors do not rush through the completion of transactions between the introduction of the Bill and Royal Assent as a means to avoid scrutiny under this legislation. My Department has already set up an investment security unit to field enquiries from businesses and investors about transactions under the new regime.

Under the National Security and Investment Bill, there will be no requirement to publish call-ins. That is of course in contrast to the public interest intervention notices under the 2002 Act.

Universal Credit: Managed Migration

Debate between Lord Beamish and Lord Sharma

Tuesday 8th January 2019 Commons Chamber

[Alok Sharma]

There are a number of ways in which people can claim universal credit. There is, of course, the online process, and help with that can be provided in jobcentres. There is also the Freephone telephone line, and people can also have appointees. As the hon. Gentleman has said, there are home visits, but, again, I would be happy to discuss the issue with him.

[Mr Kevan Jones (North Durham) (Lab)]

Many people going on to universal credit find it difficult to manage their finances. May I ask the Minister to give serious consideration to local working with credit unions? I am a director of NE First Credit Union for the North East, which offers people simple bank accounts and affordable finance. Would the Minister consider linking credit unions with the DWP so that people can not only receive advice, but stop getting into the hands of loan sharks?

[Alok Sharma]

I would be happy to meet the hon. Gentleman to discuss that suggestion and see what is possible, but, as he will know, we have a new arrangement with Citizens Advice and Citizens Advice Scotland to ensure that advice is given to people to help them as they move on to universal credit. That arrangement will kick off formally in April. We have made £39 million available, and of course we want the process to work well.

Budget Resolutions and Economic Situation

Debate between Lord Beamish and Lord Sharma

Thursday 17th March 2016 Commons Chamber

[Alok Sharma (Reading West) (Con)]

My hon. Friend the Member for Gainsborough (Sir Edward Leigh) described himself as a “callow youth” when it comes to the number of Budgets he has attended. By that calculation, I am probably an infant when it comes to Budget debates.

The hon. Member for Barnsley Central (Dan Jarvis) referred to the emergency Budget of 2010. I and many other Members were in their places to hear it. Let me take us back to what the economy was like in 2010. It is all very well for Labour Members to criticise what has happened over the last six years, but let us just examine what the economy was like. Actually, it was not growing. In 2009, growth was going down. There was a 4% drop in growth. Wages were going down and unemployment was high—all the things we do not want to see again in our economy. The markets had given their chilling verdict on Labour’s management of the economy.

[Mr Kevan Jones]

Let me remind the hon. Gentleman that, when his party was in opposition, it actually agreed with our spending targets and the measures we took to rescue this country from the world crash. Moreover, what the emergency Budget did—I am sorry, but the hon. Gentleman is wrong because economic growth was moving in the right direction and unemployment was coming down—was suck out demand from the economy, which perpetuated the decline.

[Alok Sharma]

I have to disagree. If the hon. Gentleman looks at what Tony Blair said in his autobiography—he won three elections, but it does not look like any of this lot are going to—he will see that Tony Blair realised that Labour was spending more in the good years and that is why we got into the position we did. At the time, Bill Gross, the founder of global investment management firm PIMCO, said this about the UK economy. He described it as a “must avoid” and said that UK gilts were

“resting on a bed of nitroglycerin”.

Those were incredibly strong words from the market. We were looking over an economic precipice. Thank goodness we had a change of Government. That is why we are in a much better position now, with growth and wages up and the deficit down.

I of course welcome this Budget. It is a Budget for business and for individuals. It is a Budget for young people and a Budget for investment in infrastructure. When it comes to schools, I welcome what the Secretary of State said. In my constituency, I have helped to found two free schools and academies, and they are doing incredibly well. One that has been going for a few years was rated as outstanding in its first year.