Republic of Ireland and Northern Ireland: Energy Supply Shortfalls

Debate between Lord Callanan and Lord Lexden

Monday 21st November 2022 Lords Chamber

[Lord Callanan (Con)]

I do not agree with the noble Lord: it is not a failure of policy. The whole world has been hit by a massive supply shock due to Putin’s war in Ukraine. If the noble Lord were correct and it was a failure of this Government’s policy, why is there a failure in France, Germany and the Netherlands? These countries are on the continent as well and are also suffering from a lack of gas supplies. In fact, the UK has been helping them out by using our LNG terminals to offload gas, piping it through the interconnectors and helping our European friends to rebuild their supplies.

[Lord Lexden (Con)]

Are my noble friend and the Secretary of State for Northern Ireland receiving regular and detailed reports from Northern Ireland civil servants about energy supply issues there in the absence of a devolved Executive?

[Lord Callanan (Con)]

Yes, co-operation is ongoing and all Ministers are receiving regular updates. Actually, the island of Ireland as a whole is less dependent on gas for heating than the UK: about one-third of its heating depends on natural gas, but about 80% of ours does. There is a much higher reliance on both electricity and fuel oil for heating in Northern Ireland and southern Ireland.

Post Office: Horizon

Debate between Lord Callanan and Lord Lexden

Thursday 24th February 2022 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness makes an important point. Certainly the Post Office has said it will not be conducting any further prosecutions. This is a wider question than this particular case, and it is not an area with which I am overly familiar. I know the question has been asked and other people are looking at it, but I will take it back to the appropriate department.

[Lord Lexden (Con)]

Have serious and sincere expressions of contrition been made by those who held senior management positions when this scandal took place? Have any of them offered to dip into their own not insubstantial financial resources to assist the process of reparation for those who have suffered so much?

[Lord Callanan (Con)]

My noble friend makes a very good point. Again, let us wait for the outcome of the inquiry to see exactly where the blame lies and what suitable redress can be provided.

Small Business Commissioner: Late Payments

Debate between Lord Callanan and Lord Lexden

Tuesday 7th December 2021 Lords Chamber

[Lord Callanan (Con)]

We do not just set up a review body; we have a consultation, as we are obliged to for all legislative proposals. It is important to get responses from all concerned. I have had many debates in this House where people have criticised us for lack of, or inappropriate lengths of, consultation, so I make no apologies for going through the consultation process. It is important to gain a range of views on this subject. We need to take the time to respond to it properly and correctly, and we will do so.

[Lord Lexden (Con)]

Are the Government setting a fine example by settling their own payments promptly?

[Lord Callanan (Con)]

The answer is yes. We have already established a formal payment period for contracts for public authorities.

National Security and Investment Bill

Debate between Lord Callanan and Lord Lexden

Committee stage
Tuesday 16th March 2021 Lords Chamber

[Lord Callanan (Con)]

I thank those who have taken part in this short debate, in particular my noble friend Lord Lansley and the noble Lords, Lord Grantchester and Lord West, for their considered and thoughtful comments on the amendments. Amendments 80 and 81 seek to add a number of additional areas of information to the annual report, namely around time taken processing cases, the resources of the investment security unit, the extent to which acquisitions involving SMEs are being called in, and the number of final orders being varied or revoked. The aims of these amendments are commendable, and the Government are a strong supporter of SMEs and government transparency.

The first part of Amendment 80, tabled by the noble Lord, Lord Grantchester, seeks the inclusion of the average number of days taken to assess a trigger event which has been called in. Noble Lords will recall that Clause 23 provides statutory time periods for assessment under the regime. The Secretary of State must assess any trigger event that has been called in within a period of 30 working days, as we have discussed in earlier debates, or, if additional time is required, within the additional period of a further 45 working days, or within any further voluntary extension or extensions agreed with the acquirer.

As there are these time limits, and they are as short as we are able to make them while also ensuring there is time for appropriate national security assessment, it does not seem that there would be any additional benefits from including average times in the annual report. Clause 61 sets out the minimum reporting requirements that the Secretary of State must meet in the annual report. The information provided in the annual report will provide Parliament with good insight into how the regime is functioning in practice.

Furthermore, the amendment seeks to add additional reporting on the minimum, average and maximum turnaround times for notifications in the annual report. The Government have laid out clear statutory timelines for responding to voluntary and mandatory notifications in Clause 23, providing investors and businesses with the certainty that they need. However, I would be happy to discuss this proposal further with the noble Lord, Lord Grantchester. The time taken to assess trigger events that are called in will vary on a case-by-case basis; therefore, it would not be helpful to share the average time.

Secondly, on the time taken for deciding whether to accept mandatory and voluntary notices, the Bill requires that the Secretary of State must do so

“as soon as reasonably practicable”,

as we discussed, after receiving a notice. In practice, this is likely to be a matter of days, but it is important to retain flexibility so that an accurate assessment of the completeness of the information is undertaken. Additionally, if the Secretary of State decides to reject a notice, he must as soon as practicable provide reasons in writing for that decision to the notifier. Where the decision is to accept a notice, the Secretary of State must as soon as practicable inform the parties of the decision.

Thirdly, where the noble Lord seeks inclusion of the average headcount of the investment security unit in the annual report, I can only repeat what my colleague Minister Zahawi said in the other place: resourcing would, of course, be

“an internal matter for the BEIS permanent secretary.”—[Official Report, Commons, National Security and Investment Bill Committee, 10/12/20; col. 334.]

I am unsure whether very high numbers would demonstrate appropriate resourcing, or insufficient efficiency. In any case, we have committed to ensuring that the investment security unit is appropriately resourced. I am sure that the Permanent Secretary will make sure that that is the case.

Furthermore, on SMEs, the report is intended to give a sense of the sectors of the economy where the greatest activity of national security concern is occurring. The Secretary of State may include additional information relating to SMEs if he considers that appropriate.

Turning to Amendment 81, tabled by my noble friend Lord Lansley—I am sorry that this is the last occasion we will hear from him—I am pleased to confirm that Clause 29 already places a duty on the Secretary of State to publish notice of the fact that a final order has been made, varied or revoked. This intentionally complements the annual report in Clause 61. We must not encumber the investment security unit with ever greater reporting as this will draw focus away from scrutinising acquisitions and responding to businesses as soon as possible. Individually, these amendments of greater reporting may seem reasonable, but combined they can be quite burdensome for the unit.

On Amendment 91, in the name of the noble Lord, Lord West of Spithead, I am grateful that this came with only his secondary armament—although I noticed that he had the noble Baroness, Lady Smith, for additional offensive capability. The amendment relates to the provision of guidance for the defence sector. It would require the Secretary of State to publish guidance for businesses in the defence supply chain about the provisions in the Bill, including a list of countries which the Secretary of State considers less likely to give rise to a risk to national security and from which investment is encouraged.

The noble Lord’s amendment highlights the importance of the defence sector and its supply chains, which is part of the reason why the defence sector is intended to form part of the Bill’s “mandatory notification regime”. A robust defence sector is vital to our national security and essential for the development of innovative and first-class military capabilities that enable us to protect our people, territories, values and interests at home and overseas. The defence sector, including businesses in its supply chains, such as those providing emerging technologies, must remain resilient to a wide range of national security risks, including those posed by hostile actors.

We are keen to ensure that the mandatory notification regime works proportionately and provides sufficiently clear parameters to inform businesses and investors of the need to notify and obtain prior approval. That is why we have consulted on the definitions of sectors covered by mandatory notification in the recent public consultation. This approach has enabled experts from the defence sector and its supply chains, along with the legal profession, businesses and investors, to help us refine the final definitions to ensure that the regime is appropriately targeted and provides legal certainty.

The noble Lord’s amendment also seeks to require the publication of a list of countries which the Secretary of State considers less likely to give rise to national security risks, and those from which investment is encouraged. As it stands, as I have said before on other amendments, both the mandatory and voluntary notification regimes provided for by the Bill are actor- and nationality-agnostic.

The mandatory notification regime is set based on the risks posed by acquisitions of target entities due to those entities’ activities rather than risks posed by the acquirers. The risks posed by an acquirer are then considered on a case-by-case basis by the Secretary of State as part of the particular national security assessment. It would not be appropriate to set out through guidance a variation to the legislation; that would confuse more than it would clarify, and it might give rise to legal challenge.

On whether guidance can be provided more generally for the defence sector on the provisions in the Bill, we must also guard against legislating through guidance. The Government will of course consider what appropriate explanatory material should accompany the regulations to define the sectors subject to mandatory notification, including the defence sector.

I thank all noble Lords and my noble friend for their amendments. For the reasons mentioned, I am afraid I cannot accept them. Therefore, I hope the noble Lord will feel able to withdraw his amendment.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

I have received no requests to speak after the Minister, so I invite the noble Lord, Lord Grantchester, to conclude the debate on his amendment.

Carbon-neutral Homes

Debate between Lord Callanan and Lord Lexden

Thursday 10th December 2020 Lords Chamber

[Lord Callanan (Con)]

Since committing in law to eradicating our contribution to climate change by 2050, we have announced a series of ambitious plans to cut emissions, including through the Prime Minister’s recent 10-point plan. We will of course consider the committee’s most recent advice carefully as we take further opportunities to cut emissions and build the low-carbon future that we all wish to see.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, all supplementary questions have now been asked and we move to the next Question.

United Kingdom Internal Market Bill

Debate between Lord Callanan and Lord Lexden

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Wednesday 25th November 2020 Lords Chamber

[Lord Callanan (Con)]

I thank all noble Lords for their interventions on this subject; I understand the sincerity with which Peers have addressed it. However, as I said in my opening remarks, the amendments on which we have been able to get agreement put beyond doubt that the OIM will closely consult and work with the devolved Administrations on an equal basis, in the interests of all parts of the United Kingdom. These important changes ensure that the OIM’s policy on information-gathering and enforcement, including the level of penalties, will be carefully considered in consultation with the devolved Administrations. This will ensure greater transparency in decision-making and will help ensure that the OIM will be able to gather the accurate information it needs to independently assess and monitor the UK internal market. Of course, the Government have made it clear that reports carried out by the OIM each year will be made available both to this Parliament and to the devolved legislatures.

I reiterate a point I made in previous debates: to be clear, the penalty powers in Part 4 will not come into effect unless there is clear evidence that there is a need to do so in order for the CMA to fulfil its internal market functions. I believe that this provides the necessary assurances that any penalties regime will be proportionate and transparent.

In addressing some of the points made in the debate, I turn first to those made by the noble Baroness, Lady Bowles, and the noble Lord, Lord Fox, on precedent. I can certainly reassure noble Lords that the Bill sets out clearly the maximum limits to the level of financial penalties in Clause 40(6). They do not exceed those which the CMA can currently impose. Penalties and the enforcement regime are based on precedent, as set out in the Enterprise and Regulatory Reform Act 2013. As I mentioned in my opening speech, the justification for these powers is that, without such a deterrent in place, there is an incentive not to comply with information-gathering requests, and that runs the risk of not having completely accurate information supplied to the OIM.

My noble friend Lady Altmann gave the example of the Pensions Regulator. I can say that excluding an entire class of business from information-gathering requirements such as these does not have as firm a standing in precedent as the she suggests. The CMA acting as a reasonable public body will, of course, in all cases, take into account all relevant factors, whether on the face of the Bill or not, in considering how to act and whether to pursue penalties, if they have been commenced at all.

My noble friend Lady McIntosh asked about reasonable excuses. I am not sure whether it was she who asked me a similar question on Report on Monday, but as I said then, the CMA would set out in its statement of policy the clear steps and procedures regarding the enforcement of its information-gathering regime. The penalties will not be commenced until there is evidence that they are called for, and even then they will not be used except as a last resort, whatever the size of the business. The CMA will consult all relevant persons regarding its statement of policy. I am happy to confirm to my noble friend Lady Noakes that, as I said in Committee, the CMA will not be able to issue a financial penalty against—I am pleased to say—either this Government or any UK Government, or indeed the devolved Administrations.

My noble friend Lady McIntosh mentioned consultations. The Bill requires that Ministers should consult as a matter of fact before they exercise their delegated powers. As is normal for such legislation, it does not spell out in great detail how this must be achieved, but we will engage with the devolved Administrations as part of the process of normal policy development, by, for example, sharing draft SIs and publications, and co-operating on public-facing events wherever that is possible, and, in any case, more formally before a decision is made.

For all of the reasons that I have set out, I hope that noble Lords will accept the amendments that I have tabled and that the noble Baroness will not press hers. However, for the benefit of the noble Lord, Lord Fox, and to be absolutely clear and to put the matter beyond doubt, I am afraid that I have gone as far as I can go on these matters and I will not be reflecting further before Third Reading. Therefore, if the noble Baroness wants to test the opinion of the House, she should do so now.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, I have received no request to ask the Minister a short question. I shall therefore put the Question.

United Kingdom Internal Market Bill

Debate between Lord Callanan and Lord Lexden

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Monday 23rd November 2020 Lords Chamber

[Lord Callanan (Con)]

My noble friend is essentially right, but it would depend on whether it was legal for the good to be sold in the other nations of the United Kingdom. Again, the difference between sale and use is the important distinction here.

[The Deputy Speaker (Lord Lexden) (Con)]

I call the noble Lord, Lord Wigley, to conclude the debate.

[Lord Wigley (PC) [V]]

My Lords, first, I thank the dozen or so noble Lords who participated in this debate, which was very focused and has raised a number of issues that will need to be taken further. I was grateful to the noble Baroness, Lady Boycott, for introducing her amendment, many parts of which overlap with mine; I certainly support her amendment in its own right, irrespective of how it interplays with mine. I am sure that she and other colleagues will accept the principle of product miles being an important element in the consideration of environmental and economic policy.

I was taken by the references the noble Lord, Lord Liddle, made to regional policy in England. This was touched on by the noble Baroness, Lady McIntosh, as well. That is absolutely valid, because circumstances vary from area to area, certainly between the south-east and the north of England, and between other areas. Where there are different circumstances one needs different policies and mechanisms of government that can deliver those policies in line with the areas’ requirements.

Therefore, in advocating these powers for the three devolved nations, I also accept entirely the argument that there should be an ability to fine tune policy for the regions in England. It is for those regions to stand up and be counted, and to demand the powers to do so. After all, the facility in Wales of having our own Government has enabled us to take new initiatives that have helped to solve some problems—not all of them, but some of them. The noble Baroness, Lady Bennett, whose support and that of the Green group I welcome for both amendments, has underlined on a number of occasions the need for there to be devolution to the regions of England.

I listened carefully to the comments made by the noble Lord, Lord Empey, in particular, who raised a question that I do not think has been fully answered by the Minister regarding how the use of orders might be undertaken in Northern Ireland. That leads me on to the question, in responding to the Minster’s argument that there will be a separate policy statement on procurement reform, of whether that new policy and the legislation associated with it will be driven through by statutory instrument. We might be in a position where Wales and Scotland could, like Northern Ireland but for different reasons, be subject to that sort of policy.

What I want from the Minister before I conclude this short debate is some assurance that, in drawing up the consultation and procurement proposals he has in mind for a later stage, that will not go through the back door, which he is not admitting to doing through the front door in this Bill. I would be grateful if he could respond specifically on that question: that the procurement reform will not undermine the thrust of the argument we have had in the debate. I would be grateful for his comments on that before I conclude.

Energy White Paper

Debate between Lord Callanan and Lord Lexden

Monday 28th September 2020 Lords Chamber

[Lord Callanan (Con)]

I was wondering how the noble Lord would get warships into this Question, but he has of course managed it. The White Paper will set out the proposals for the use of hydrogen and carbon capture and storage. They are key to our planning as we seek to decarbonise gas by 2050 for net zero, because of the potential they have to allow us to decarbonise both nationally and regionally while creating new, high-value jobs. Hydrogen will be a key part of the energy mix in the future. We are looking very closely at investing in it and we will be setting out a further strategy on that.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, all supplementary questions have been asked and we now move to the next Question.

Retail Businesses: Financial Support

Debate between Lord Callanan and Lord Lexden

Monday 21st September 2020 Lords Chamber

[Lord Callanan (Con)]

We continue to engage with professional organisations from all sectors. The Covid support schemes, including the loan guarantee schemes, are designed to be as accessible to as many businesses as possible, including, of course, BAME businesses.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, all supplementary questions have been asked and we now move to the next Question.

EU Coronavirus Vaccine Programme

Debate between Lord Callanan and Lord Lexden

Monday 13th July 2020 Lords Chamber

[Lord Callanan]

The Vaccine Taskforce is of course considering all the academic work being done in this field; it is a rapidly developing sphere of science. I am sure that we welcome the work taking place at the institution mentioned by the noble Baroness, but a lot of other research institutes are already looking into it. There are a number of developing vaccine forms which require different manufacturing processes to produce individual vaccines, and we are of course evaluating all of them.

[The Deputy Speaker (Lord Lexden) (Con)]

Viscount Waverley. No? No connection, I think. I call the noble Lord, Lord Dobbs.

[Lord Dobbs (Con) [V]]

My Lords, there have been some pretty knee-jerk reactions to this announcement. Can the Minister confirm that this decision is not about being against co-operation—far from it; it is precisely what Brexit and a new policy are about: a new relationship based on co-operation? However, does my noble friend agree that in this crucial step in our battle against the virus it would be entirely inappropriate to hand over decisions about costs, timing and distribution, and even rationing if it came to that, to a European Commission on which there is not a single British voice?

Committee on Climate Change: Progress Report

Debate between Lord Callanan and Lord Lexden

Wednesday 1st July 2020 Lords Chamber

[Lord Callanan]

The noble Baroness makes an important point. She is of course right to point out that reducing our emissions in this country is fine but, if we just import emissions from other countries, we will have achieved nothing. That is why we have an ambitious outreach and diplomacy strategy to persuade other countries to follow our lead. As the noble Baroness will know, we have the most optimistic and far-reaching targets in the western world. She is right: we must make sure that, as the Prime Minister said yesterday, we build back greener and build back better.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, all supplementary questions have been asked. That concludes the Hybrid Proceedings on Oral Questions.