(2 years, 9 months ago)
Grand CommitteeMy 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.
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.
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.
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.
(2 years, 9 months ago)
Grand CommitteeMy 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.
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.
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.
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.
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.
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.