National Cyber Security Centre

Lord Clement-Jones Excerpts

Monday 16th October 2023 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

I totally agree with the noble Baroness and assure her that we work very closely with our key international partners in calling out some of these cyberattacks against companies or even government websites and systems. We seek to act together and have done so. She will be aware that at the beginning of next month we will host an AI summit, which the Prime Minister is overseeing, very much aimed at exactly what she articulates—how we can learn from each other while improving our responses. I always say that, for cyber and many of the other challenges we face, as good as mitigations or mechanisms may be, those who seek to cause us harm—be it to business or directly to the Government—are looking at new ways to overcome them, so we will continue to share and co-operate with our key partners and allies on this.

[Lord Clement-Jones (LD)]

My Lords, a few weeks ago, the National Cyber Security Centre issued a warning about the risks of “prompt injection attacks” on the new large language models such as ChatGPT when used in the workplace, which enable them to be open to manipulation. What are the Government doing to ensure that they mitigate that risk in their own workplaces?

[Lord Ahmad of Wimbledon (Con)]

My Lords, as I have said, we are working across government and internationally. I think we all recognise the catch-up element with the evolution of these new methods. There are transformational elements with new innovations—that is why I referred to the AI summit, which is intended not just to avail us with the opportunities these new technologies present, as the noble Lord articulated, but to address the challenge and high risk presented to government, industry, sectors and individuals.

Noble Lords may recall the sad occasion when this very Parliament was attacked physically. I remember the emotional exchanges and statements made at the time, including by my noble friend Lady Evans. There was another attack at that time, on the parliamentary emails of many Members of this House and the other place. The knowledge base available for mitigation was limited, as was awareness. I think most Members and colleagues were concerned about getting their machines and devices up and working rather than about the data loss. The more learning, education and information we can share, the better we will be at mitigating some of these risks.

International Women’s Day and Protecting the Equality of Women in the UK and Internationally

Lord Clement-Jones Excerpts

Thursday 17th March 2022 Grand Committee

[Lord Clement-Jones (LD)]

My Lords, I am very pleased to take part in today’s debate. Like many others, I am pleased that the noble Baroness, Lady Stedman-Scott, opened it in such a comprehensive way. I certainly do not envy her in responding to it, however, as it has already been so wide-ranging.

I take part today with a somewhat heavy heart, partly because I see the suffering of the women in Ukraine who have to bear such a heavy burden in facing the onslaught of a vicious Russian invasion, whether they stay or flee their homeland. Like the noble Lord, Lord Farmer, I salute the courage of the Russian TV news editor Marina Ovsyannikova, and I of course celebrate the wonderful news of Nazanin Zaghari-Ratcliffe coming home. I also celebrate the growing recognition of the achievements of women in the digital policy space that I speak on frequently.

More broadly, however, contrary to expectations, there has been a deterioration in women’s rights and condition in this country in many ways. I was a teenager in the 1960’s and it seemed then that growing equality of treatment in all walks of life and respect for women’s rights would lead to a better society. In so many areas, I fear that is not the case. As Refuge says in its briefing, women and girls in the UK continue to face appalling levels of violence. More than one in four women in England and Wales aged 16 to 74 experiences domestic abuse at some point in their lives, and an average of two women a week are killed by their partner or ex-partner—a statistic which has not changed in decades. Women’s Aid highlights the fact that 60% to 70% of women accessing mental health services have experienced domestic abuse.

As Refuge also says, technology is increasingly being weaponised by perpetrators of domestic abuse to harass, stalk and abuse survivors. Technology-facilitated domestic abuse—or tech abuse—has a devastating impact on both mental health and physical safety. The Online Safety Bill, published today, will be judged not only by whether it protects children, but also by whether it protects women from this kind of abuse.

Moreover, rape charges and convictions are at a minuscule level. Home Office crime figures show 56,152 alleged rapes in the year to September 2020, but analysis shows that just 1.5% of reported cases produced a charge. The Victims’ Commissioner for England and Wales, Dame Vera Baird, said:

“If you are raped in Britain today, your chances of seeing justice are slim. Even though police are now referring more and more cases to the CPS, we have seen a catastrophic fall in rape prosecutions. The latest data show just 1.5% of cases result in a charge. That means that more than 98% of cases do not reach court. This is shameful and has real and profound consequences for victims up and down the country.”


The drop in prosecutions has led to fewer convictions. There were 1,074 rapists convicted in the year to December 2020, a record low and a decline of 64% from the 2,991 convictions in 2016. In criminal justice, we have had equivocation about the status of misogynistic abuse and conduct as a criminal offence, as we heard so cogently from the noble Baroness, Lady Kennedy.

In healthcare, the foreword by Dame Clare Gerada to Public Policy Projects’ Redressing the Balance: A Women’s Health Agenda is damning. She says:

“It is my personal feeling that women have no more rights regarding their bodies and healthcare than when I was born 62 years ago. As a GP of over 40 years, I have treated thousands of women. However, throughout the process of crafting this report, I have been shocked to learn that many of the medical interventions and procedures held up by institutions and policymakers are not in place for the good of women’s health but serve to prevent women from being in control of their own bodies.”


Single-sex wards are under threat, as we have discussed during the passage of the health Bill last night.

As a Clapham resident, I was shocked by the policing of the Sarah Everard vigil, the complacency of the outgoing commissioner and the report of the police inspectorate. I am pleased by the outcome of the recent High Court case brought by the organisers, Jessica Leigh, Anna Birley, Henna Shah and Jamie Klingler. All that brings me on to freedom of speech, which is meant to be so dear to us in this country, and in particular to my party. Given the publication today of the Online Safety Bill and the response to the Joint Select Committee on which I sat, it is a highly topical issue.

I have never been trolled or piled on, but when I see those who engage in legitimate discussion of sex-based rights, such as Kathleen Stock, Maya Forstater, JK Rowling, the noble Baroness, Lady Falkner, and others in my party, cancelled, insulted or moderated out, then I despair. Where does this lead? Can we, for instance, not talk about the concerns raised by the Cass Review, the independent review of gender identity services for children and young people, for fear of giving offence?

There are a few facts from the Cass review which we must talk about. The number of children and young people being referred to GIDS has increased dramatically in just over a decade—from approximately 50 referrals per year in 2009 to 2,500 in 2020, with a waiting list of 4,600. The large majority of these referrals are now for what the report calls “birth-registered females” who are presenting in their early teens. In 2009, girls made up one-third of referrals to GIDS. In 2016, they made up over two-thirds. I have long worked in the autism field, and it is notable that around one-third of children and young people referred to GIDS have autism or other types of neurodiversity.

In the population as a whole, the percentage of people with autism is approximately 1%. If we are to be able to genuinely celebrate women’s achievements and advance their rights, it is vital that we are able to hold a conversation which is civilized and respectful. We must all be allowed to express our genuine beliefs—or, indeed, facts—without fear of censorship or abuse.

Outcome of the European Union Referendum

Lord Clement-Jones Excerpts

Wednesday 6th July 2016 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, it is a huge pleasure to follow the noble Baroness, Lady Andrews—what a superb speech.

Last weekend I took part in the March for Europe from Park Lane to Parliament Square. It consisted largely of young people and families, all utterly concerned about and opposed to our leaving the European Union. All of them up to that point had seen their identity as bound up with Europe and now see an uncertain and more isolated future. I could not help reflecting while on the march on how my generation had let theirs down by voting in the way that it did and on how many in politics had failed to deliver a more positive message about the benefits and impact of being in the EU over the years, or to create a fairer society of the kind so well outlined by my noble friend Lady Manzoor yesterday and by the most reverend Primate. But whatever our regrets, we cannot afford to sit back and be buffeted by the consequences of Brexit. We need a steely determination to make the best of it and demonstrate to the no doubt overwhelmed Brexit unit how we can mitigate the risks and take the opportunities that arise.

Our tech, digital and creative industries currently punch way above their weight globally. We now need to develop a blueprint to show how they can continue to thrive despite not being in the EU and despite the uncertainties of the exit process, so they will be able more than ever before to benefit from the UK’s creative skills and culture. This depends on the UK in general and London in particular remaining a global hub for creative businesses. The essence of this is our continuing ability to retain, recruit and develop the best and most diverse talent from around the world.

Our film and video games studios, publishers, advertising agencies, music recording facilities and design and post-production houses depend on this flow of talent, failing which other locations within the EU—eastern and central Europe, for example—will appear more attractive. It would be deeply damaging if we or the EU erected barriers equivalent to those in the US, which mean that many UK musicians who plan to perform there find that visa-processing problems mean cancelled tours and postponed engagements. The truth is that the lack of free movement of talent will mean a less creative and diverse culture in the UK and will spell danger for the UK as a creative hub.

Individual parts of the creative sector have many unknowables. Will advertising services, that powerhouse of our creative economy, be subject to EU barriers when sourced from the UK if we are not in the internal market? Activities carried on by the audio-visual group are particularly vulnerable. The audio-visual media services directive has, since 1989, had a major impact by limiting applicable regulation to the country of origin. Almost a quarter of its exports are to the EU. It risks being caught between being unable to relocate production as it would fail to qualify as a British product—but, if so, not being treated as EU content. Once the UK is outside the EU, unless we specifically achieve a negotiated deal, the UK will no longer be able to come within the quotas applied by other European countries for their television broadcast services, which in some cases are as high as 70%.

In funding this type of product, every market matters, and if the EU falls out of the equation it could well mean that investment is no longer forthcoming to the same extent. Amanda Nevill, CEO of the BFI, has also warned of the impact on independent film-makers of the loss of EU funding from the Creative Europe programme. This adds up to the need to put in place at the very least greater government support for investment in these audio-visual products.

Then we have the digital economy, which is a vital part of our future. The digital single market being developed by the EU up to now was seen to be a cornerstone for the future of our tech and creative industries. We will now lose our influence on how regulations and intellectual property reforms are shaped, especially as regards the exceptions to copyright protection which are being developed.

We may also need to adopt safe-harbour provisions of the kind currently required between ourselves and the US in respect of data. Then there are the resources that will be needed now by government here and overseas through our diplomatic and consular services and UKTI in counteracting the impact of Brexit and, as Sir Martin Sorrell has said, targeting fast-growth markets. We need to redouble our efforts to promote Britain as a place to invest in, partner and do business with, especially in the creative industries. Just boosting the budget of the GREAT campaign will not be enough.

When we are outside the EU state aid rules, there may well be some opportunities through improved tax incentives to counteract some of these risks and to maintain the attractiveness of the UK as a destination for the creative industries. But I can see many other industries clamouring for special treatment, too.

I will continue to fight for the closest possible relationship with the EU. But what we need for this sector, as for others, is a cool appreciation of the actions we need to take and the deals we need to do to safeguard them. I am pleased that the Creative Industries Council is taking on this task, constituted as it is largely by a wide range of private sector players in the creative and digital industries, including television, computer games, fashion, music, arts, publishing and film, but co-chaired by Ministers from both BIS and the DCMS.

The Ministers and departments sponsoring our tech, digital and creative industries must immediately, as a priority, start working with the Brexit unit and with Justine Simons, the new deputy mayor for culture and the creative industries in London. It is vital, as she said last week, that we,

“maintain the flow of ideas and creative talent and shore up our cultural economy”.

I sincerely hope that this Government, whoever heads it, take heed of those wise words and recognise the importance of these industries to our future.

Trade and Investment

Lord Clement-Jones Excerpts

Monday 15th June 2015 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, I declare an interest as London managing partner of DLA Piper and a member and City ambassador of the Law Society. I, too, very warmly welcome the Minister to his membership here and his new role, and congratulate him on his excellent free-trader maiden speech. I was tempted to talk about our trade with China and other overseas destinations, as well as the potential in our tech and creative industries, particularly in the light of the very apposite remarks made by the noble Lord, Lord Risby. But I am going to follow some thoughts that were introduced by my noble friend Lord Stoneham, given that today we are celebrating the 800th anniversary of Magna Carta.

The rule of law in the English legal system is not only a major source of British influence abroad but a key reason for choosing the UK as a place to do business. English law is the most commonly used system in dispute resolution and in international business more generally. A key factor is the integrity and independence of the judiciary. We have a long and well-respected tradition of excellent legal services based on trust and performance. Legal services are a cornerstone of the broader financial and related services cluster which makes the UK the leading international finance and business hub. Major global businesses come to the UK to access this unrivalled breadth of services, seek advice from world-class legal and advisory firms, raise finance, and insure their businesses. The rule of law is now one of Britain’s great exports, with a surplus on legal services of more than £3 billion in 2013, now forecast to have risen to £3.6 billion this year. Our professional and legal services are critical to our success in attracting trade and investment.

The noble Lord, Lord Livingston of Parkhead, our previous Trade Minister, in response to a question from me in the previous Parliament, confirmed his view that,

“the legal services sector is one of the most important sectors for the UK … not just as an export in its own right but as a reason for FDI into the UK”.—[Official Report, 11/12/13; col. 782.]

The sector employs almost 314,000 people in the UK and the wider professional services sector employs more than 2 million people, with growth particularly strong this year outside London. Like all other sectors, however, we need to remain competitive.

An important reason for the UK’s position as a leading legal services hub rests upon its participation in the EU. TheCityUK’s competitiveness report found:

“Decision makers specifically cited access to markets in the EU as a core reason for choosing the UK over other financial centres”.

Another benefit from the EU for the legal sector is the freedom of establishment, under the establishment directive. No wonder that, according to a CBI survey last year, two-thirds of law firms think that leaving the EU will have serious negative consequences.

Part of maintaining the UK’s competitiveness is ensuring that it has a properly skilled workforce, with immigration policies that support business needs. Last week, we heard that demand for visas under the tier 2 cap outstripped supply for the very first time since 2011— and in huge number, too. The Home Office has confirmed that the monthly allocation of tier 2 visas has been filled for June already. Businesses looking for certificates of sponsorship for graduate programmes and managerial posts were refused them, I understand, at a salary level of £46,000 or less. Last Thursday, the Prime Minister announced plans to make it harder to bring in skilled staff from outside the EU but non-European skilled migrants account for 0.066% of the British labour market. This is a crucial issue for trade and investment. The Home Office, as ever, seems to be working counter to the interests of our economy. I hope that the Minister can say something about this.

Then there are the TTIP negotiations between the EU and the US. I am in principle strongly in favour of TTIP, provided that we have the ability under the investor state dispute settlement provisions to make exceptions for public policy reasons—for example, to deliver our public services in the way that we want. There is no doubt that a great deal of the confusion and misunderstanding surrounding TTIP has been generated by very untransparent negotiating processes. Even now, we seem to have the EU position published on only two-thirds of the draft treaty.

I hope in particular that regulatory co-operation under TTIP will deliver improved trade in financial services, with common regulatory standards, and in legal services between the EU and the US so that there is improved market access and practice rights for solicitors and UK law firms in the US, including mutual recognition of qualifications. The UK is the world’s most international market for legal services. It is very open in allowing virtually unrestricted access for foreign firms but this is not the case in the US. Even a US attorney does not have freedom of establishment; it very much varies on a state-by-state basis. Legal services regulation is not a federal matter in the US, in contrast to the EU regime. It is actually illegal for an English solicitor to fly to most US states to give advice on English law, so I hope that we will see US states remove the minimum practice requirements for eligibility. Solicitors should be eligible for the Bar exam in all 50 states, regardless of their route to qualification. I also hope that TTIP negotiators will be ambitious in seeking liberalisation on all modes of practice, on all types of legal work and in all US states.

Then there is UKTI, whose role is crucial. I very much endorse everything that the noble Lord, Lord Risby, said about it in a positive way. In the past few years it has collaborated with the MoJ, the Law Society, the Bar Council and TheCityUK, among others, in promoting the legal services sector, with the original Plan for Growth in 2011 followed by UK Legal Services on the International Stage in 2013. In the sudden and unexpected cuts to this year’s public expenditure, however, UKTI seems to be a major potential victim. How much will the cuts or savings amount to, and how will they affect UKTI? Does it intend to produce a progress report and updated plan for the legal services sector? Indeed, will it have the resource to do so?

The challenges we face to ensure that the UK remains the world leader in the rule of law, in our standards of justice, in the provision of legal services and in the opportunities that exist in international jurisdictions are significant. However, we can meet them only if the issues that I have raised today are addressed. I have a straightforward question to the Minister. Does he recognise the importance of our legal services to trade and investment and will he, as the noble Lord, Lord Livingston, did, pledge to champion the legal sector? I very much look forward to the Minister’s reply.

Queen’s Speech

Lord Clement-Jones Excerpts

Tuesday 10th June 2014 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, in many respects the Queen’s Speech is to be welcomed, precisely for the fact that it does not contain a huge amount of new legislation. None the less, I welcome the carryover of the Consumer Rights Bill and the Deregulation Bill. Curiously, I note for the aspiring statesmen among us that it will, among other things, make statues easier to erect. I do not know whether your Lordships noticed that.

In particular, I welcome the introduction of the small business and enterprise Bill outlined by my noble friend Lord Livingston because today, among other issues, I want to deal with the key question of start-ups in the tech and creative sector and what we need to do to ensure their success. I enjoyed the digital speech of the noble Lord, Lord Mitchell. According to official figures, the creative sector grew by almost 10% in 2012 and outperformed all other sectors of UK industry. It accounted for 1.6 million jobs in 2012. However, this underestimates the contribution of the creative industries. Many would say that they employ at least 2 million, so I welcome the Government’s intention to reclassify their contribution to GDP to bring back in software. We should not forget, too, the key role that arts and culture perform in providing the creative industries with talent. The approach to their funding needs reappraising, particularly in the light of the CEBR report on their contribution to the economy.

A crucial factor in one area of growth has been the tax treatment of film production, followed by high-end television and animation. In April, video games relief was cleared by the EU, which was excellent news. The new theatre production tax relief and patent box will have a major impact too. From a recent presentation at the Google Campus in Tech City to the Communications Committee, it is clear that we have come a long way since Silicon Roundabout morphed into Tech City. The noble Lord, Lord Mitchell, gave some very interesting figures. There have been more than 15,000 start-ups there in each of the past two years.

More widely, Trip Hawkins, who founded Electronic Arts in 1982, recently said that Britain is the most creative country in the world and can lure top technology businesses away from Silicon Valley. However, to fulfil that promise, we need to ensure they have access to the skills and finance they need to grow. It seems they now have good access to early-stage finance with a variety of angel investors through the Government’s enterprise investment schemes. Indeed, these schemes in the UK are now said to be among the best in the world. Tech companies have also benefited from the business growth fund, enterprise capital funds and the enterprise finance guarantee. Crowdfunding is beginning to have a real impact. Exceptionally among the banks, Santander has introduced its imaginative breakthrough programme for fast-growing start-ups. The important thing now, as the Creative Industries Council has identified, is promotion of these schemes.

However, we were told that it is in the later stages, where hundreds of million of pounds are required for investment or a venture capital exit is needed, where we are behind the US. Are UK financial institutions too risk-averse? If so, there is a danger of business moving to the US at this funding stage. None the less, US institutions are now moving here which understand the potential of tech and creative start-ups. There is also good evidence from recent listings on the Stock Exchange that we are making progress. The creation of the new High Growth Segment to encourage companies to list here is having an impact.

The talent available, however, is far below what we need. Start-ups in Tech City need a mixture of technical and creative skills to develop their new digital services. Knowledge of digital technologies is particularly crucial. We need 1 million tech jobs to be filled by 2020 to keep up with demand. So I welcome the inclusion in the curriculum of coding, or computer science, from this September for five to 16 year-olds. But even if the pipeline from schools and universities is there, finding the right talent can be tough. Training and proper apprenticeships are hugely important.

Even if we fill the gap in the long term, we will in the short term still be reliant on overseas undergraduates and postgraduates. I welcome the developments with the exceptional talent visas, which show some increased flexibility, but as Policy Exchange’s recently published Technology Manifesto makes clear, we must ensure our visa regime is fast and user-friendly, to attract them into both employment and our higher education institutions.

If we get it right the prize is very great. Policy Exchange says that the internet economy will be 16% of GDP by 2016. We are already the highest net exporter of computer and information services among the G7 countries. Already our online retail surplus is larger than that of Germany and the US combined. This also means that we need to break down the barriers to e-commerce across the EU to create a genuine European digital single market.

Clusters, or hubs, are of huge importance to the tech and creative industries and, as Policy Exchange says, there are many more than just those in London. In terms of innovation, creativity, finance, promotion and skills, clustering is now the name of the game. But this raises the whole question of whether our cities operate on the right scale, especially when compared with cities in emerging markets, and whether they have the necessary powers and control over their own finances. After all, more than 90% of tax is collected by central government.

I was at the opening of the International Festival for Business in Liverpool yesterday, and a great showcase it was for both Britain and Liverpool. We had contributions that demonstrated real commitment to the creative sector from the Prime Minister, my noble friend the Trade Minister and the Culture Secretary. I was also delighted that my noble friend acknowledged the value of professional services, but it reminded me of the words of the noble Lord, Lord Heseltine, in the paper No Stone Unturned: In Pursuit of Growth, which he wrote in 2012 about cities and regeneration. He said:

“What Liverpool forced me to confront was the extent to which these conditioning qualities had been driven from municipal England. The dynamism that had built the city was gone”.

There is a major RSA project under way, the City Growth Commission, chaired by Jim O’Neill, which will report in October this year. As the commission says, too many of the UK’s urban areas outside London are failing to achieve their growth potential. How can we make our cities competitive in the global economy? How can we strengthen our clusters? How can we tie in our universities as incubators? It is vital that we build on initiatives such as the LEPs, city deals and the regional growth fund.

As the Lords Select Committee recently concluded, our creative industries are increasingly part of Britain’s soft power. They are a vital aspect of our international trade and investment. A few days ago I took part in the third Technology Innovators Forum—TIF-IN—in Qingdao, opened by the Secretary of State for Business, which reflects that with the growth of digital platforms and applications there is a symbiotic relationship between the tech sector and creative content, as well as the need to promote our UK creative industries in emerging markets, especially China.

At TIF-IN, my right honourable friend launched the Global Digital Media and Entertainment Alliance with China, which will promote long-term relationships in the digital media and entertainment sectors. I am optimistic that it will greatly benefit the UK’s creative industries. We have a terrific team of UKTI people in China, with increasing sector specialisms. They have done an excellent job post-Olympics in developing Britain through the GREAT campaign. The FCO is very supportive. We now have an expert IP attaché in Beijing and other major markets.

However, UK companies, particularly SMEs, need persuading to be bolder. We need to demonstrate the benefits of trade and investment with emerging markets more effectively, and we need a much longer pipeline of SMEs lining up to do business in emerging markets. That means more UKTI resource in the UK, especially in the English regions.

Finally, as I cannot take part in Thursday’s debate, I want to mention the tourism sector. In that context I very much welcome the announcement last week at the British Hospitality Association summit of the creation of a new tourism council along the lines of the successful model of the Creative Industries Council. I hope that this will lead rapidly to a range of measures that will ensure the competitiveness of our tourism industry compared to other European destinations. That is also a vital part of our soft power.

China: Exports

Lord Clement-Jones Excerpts

Wednesday 11th December 2013 Lords Chamber

[Lord Livingston of Parkhead]

I thank the noble Baroness for her comments and absolutely agree that this was one of the highlights of the trip, particularly Joey the Horse, who got a standing ovation at the gala lunch that we held. Joey was the star of the trip, after the Prime Minister of course. It was not just in culture that our DNA was represented, but in the Premier League as well. This not only has export potential in its own right but is an expression of British soft power and its opportunities. We will certainly make sure that we include the creative industries as part of our overall export effort, and I thank the noble Baroness for her comments about our support of the cultural sector.

[Lord Clement-Jones (LD)]

My Lords, I warmly welcome my noble friend to his new role, and the success of the Prime Minister’s visit to China. I declare an interest as a partner of a law firm. Why did the Prime Minister not find room in his huge delegation for any representative of the UK legal services sector? The sector contributes some £3 billion to our professional services exports; it provides crucial commercial and dispute-resolution services and support for British businesses around the world; and, not least, will help them to take advantage of the new Shanghai free trade zone. I realise that not everybody wants to be accompanied by a lawyer on their travels.

[Noble Lords]

Hear, hear!

[Lord Clement-Jones]

However, seriously, how does this square with the continuing support that is being given by the MoJ and UKTI to boost the growth of the legal services sector internationally?

United Kingdom and China

Lord Clement-Jones Excerpts

Thursday 7th November 2013 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, I first declare my interests as deputy chair of the All-Party China Group, a partner of DLA Piper and chair of its China desk, a former member of Huawei’s international advisory council and a council member of UCL. It is with great pleasure that I follow the noble Baroness, Lady Warwick, as I agree almost entirely with her comments, derived from her expert knowledge of the higher education sector.

I warmly congratulate the noble Lord, Lord Dobbs, on initiating this debate. He set out the issues extremely well. I look forward to hearing our two maiden speakers later in the debate. I also look forward to the winding-up speech of my noble friend Lord Green who has been such a great champion of trade with China during his time as Trade Minister. We will be sad to see him go.

This debate is extremely timely. We have the opening of the EU-China trade negotiations on 21 November; on Friday we have the very significant opening of the third plenum in China; it comes in the aftermath of a whole series of official visits last month, including the so-called “yin and yang” Boris and Osborne visits and we have the visit of the Prime Minister later on this year or at the beginning of the next. It is noticeable that, despite the hitherto frosty relations with the new Chinese leadership in the 18 months running up to those ministerial visits, major inward Chinese investment has been at record levels over the past year. We are now the top European destination for Chinese inward investment and the noble Lord, Lord Dobbs, mentioned a number of those very significant inward investment levels. In that period, record levels of trade have also been set between China and the UK: in April this year, Britain’s monthly exports to China hit the £1 billion level for the first time. As we heard from the noble Lord, Lord Dobbs, we also have an agreement on renminbi trading in London, which will be of considerable significance.

I have made 30 or so visits to mainland China over the years. Having accompanied my noble friend Lord Sassoon, the new chairman of the CBBC, in his recent handover visit in September and taken part, last month, in a visit to Shanghai by the China All-Party Group, I am absolutely convinced that the prospects for trade and investment both ways between China and the UK are now better than they have ever been. This partly derives from the Chinese Government’s 12th five-year plan which involves a comprehensive strategy towards a more consumer-led economy: a more environmental and energy-conscious economy where the services—insurance, pensions, health and education—and the private sector become much more important, especially with China’s rising middle class.

This is, of course, not to say that China does not have major challenges to overcome, which all impact on the overriding Chinese public policy: the need for stability. The noble Lord, Lord Dobbs, set all these out extremely well. However, both the plan and the challenges give us substantial opportunities here in the UK. The all-party group visit last month gave me considerable reason to believe that we can take advantage of some of the welcome new initiatives such as the Shanghai pilot free trade zone and the Qianhai special economic zone, particularly in the provision of professional, financial and consulting services.

We also have a great deal to contribute in our creative industries. As we know, Britain has a great reputation—particularly following last year’s Olympics—in architecture, design, fashion, film, animation, games, television, advertising, publishing and music. We have a great opportunity for creative and artistic partnership between China and the UK, typified by the success of Thomas Heatherwick’s UK pavilion at the Shanghai Expo in 2010. In the automotive field, brands such as Jaguar and Bentley are experiencing record success. In fact, JLR’s sales in China are now higher than they are in the UK. China is leapfrogging the West in many areas of environmental sustainability. Its need for green growth provides an important market for UK goods and services.

In all this, as the all-party group heard from a whole variety of successful and well established British companies in Shanghai, we need to stay ahead of the game if we wish to compete effectively in China. China is increasingly moving from licensing western intellectual property, know-how and technology to developing its own, so British companies need to keep innovating to stay successful. We also need to focus on those areas where we can demonstrate efficiencies and better use of resources. However, for our trade and investment to keep forging ahead, we need SMEs to have greater self-confidence in entering the Chinese market. We really do need to get this message home to UK SMEs and help them with expert advisory services through UKTI, chambers of commerce and trade bodies and, especially, through local authorities. There is no doubt, for instance, that setting up close twinning relationships between Chinese and UK towns and cities can be of great benefit to business, if done in the right way. I am currently reading an interesting study, recently published by Carl-Johan Carlstedt and Christopher Georgiou on twinning opportunities, which will work if we get the structures of our local government right. However, there is often an imbalance between the Chinese and UK twinning partners. Consider the different population sizes of Shanghai and Liverpool. Whether we have local enterprise partnerships or some of the new initiatives that are being taken, we need to make sure that our structures are suitably matched when we are twinning with Chinese cities.

Quite apart from the value in itself of building bridges, we need to build bridges in areas such as education and tourism. We need visitors to this country to experience what Britain is like, which will help them to create those links that are often of great benefit for business. I am thinking in particular of the alumni programmes that some of our universities are putting in place with Chinese students, whether as undergraduates or postgraduates.

That brings me finally to the question of visas, mentioned by the noble Baroness, Lady Warwick. We need to get our visa regime right. We need to give out the right signals to Chinese students by excluding them from the migration figures. I have no doubt that during the course of this debate we will hear further on that subject.

Turkey

Lord Clement-Jones Excerpts

Thursday 13th January 2011 Lords Chamber

[Lord Clement-Jones]

My Lords, it is a huge pleasure for me to congratulate my noble friend Lord Sharkey on his superb maiden speech. I apologise to him for my slightly late entry as a result of not being aware that the noble Lord, Lord Ahmed, was not speaking. My noble friend Lord Sharkey has had a long and distinguished career, principally in advertising, and as the House has seen he is a skilled communicator and advocate, which gives hope to all maths graduates. The Liberal Democrats particularly know my noble friend for his competent and imperturbable chairing of our general election team at the previous election. However, if you take a look at his CV, it is—how shall I put it?—his cross-party experience which could be of the greatest benefit to this House. I welcome him to this House on our behalf.

I also congratulate my noble friend Lady Hussein-Ece who, as a relatively new Member, has really hit the ground running with this debate and her especially superb and forceful speech. I agreed with every word she had to say which, your Lordships will be grateful to hear, will probably result in my own remarks being cut much shorter.

I must first declare an interest. I have visited Turkey for some 30 years, have a second home in Turkey, am a partner in a law firm with an important office in Turkey and am the vice-chairman of the All-Party Parliamentary Group for Turkey. I am glad to say that for the past few years, under both this and the previous Government, the UK has had excellent political relations with Turkey. As we know, in October 2007 the strategic partnership was announced during the Turkish Prime Minister’s visit to the UK when Gordon Brown was Prime Minister. This was followed up last July by David Cameron who agreed a new strategic partnership with the Turkish Prime Minister during his recent visit there.

There is no doubt that the AK Government have done an extremely good job with economic management. The switch to the new Turkish lira occurred not that long ago, although I suspect that many have now forgotten it. Last year the Turkish economy is estimated to have grown by nearly 8 per cent, by 11 per cent in the first half alone, and is forecast to be the second fastest growing economy in the world by 2017. It is now the world’s 16th largest economy. As we have heard, the UK is Turkey’s second largest export market with more than 400 British companies investing in Turkey, many of them major companies such as BP, Shell, Vodafone, Unilever, HSBC and Tesco.

I want to talk principally about Turkey’s relationship with the EU, central Asia and the Middle East. In a speech at the Turkish Parliament in Ankara, Mr Cameron said that the European Union without Turkey at its heart was,

“not stronger but weaker … not more secure but less … not richer but poorer”.

I completely agree with those sentiments. In Britain many of us feel that Turkey has had to wait too long for EU membership in comparison with other new member states. As we have heard from several noble Lords, since 2005 only 13 out of 35 negotiating chapters relating to accession talks have been opened for discussion and only one has been provisionally closed. However, after the eastern and central European accessions it is vital that the European Union does not turn inward. Rejection of Turkish membership would indicate that the EU saw the membership of a large Muslim nation, however secular in its constitution, as some kind of threat to its identity. This would be a dangerous message to send to our Muslim citizens. There is a worry that if accession is blocked, as my noble friend said, the EU will be perceived as a purely Christian club.

The EU must be an outward-looking institution. However, as we have heard, Turkish accession is not currently supported by France or Germany, so what are the advantages of Turkish membership of the EU? First, during the recession it has had a strongly growing economy at higher rates than all EU countries. It has a young, well educated population, unlike other parts of Europe which have an ageing population. We can all quote the figures about the percentage of the population being under 34. Such a young growing population could significantly stimulate EU growth to the benefit of us all. There are more than 3,000 young Turkish students in the UK, studying at and contributing to our universities. It was very interesting to hear about the experience of Warwick University and the partnerships that it has.

Then there is the question of energy security, as we have heard. Turkey is a natural hub between several vital energy suppliers and energy consumers and can become a crucially important hub for both oil and gas supply. If we had the Nabucco pipeline, which would involve building a gas pipeline from the Caspian through Turkey, Bulgaria, Romania, Hungary and Austria, it would become the first pipeline directly to link western Europe with non-Russian gas. The EU would gain a reliable alternative supply route from the Caspian and, as I discovered last week in Iraqi Kurdistan, from there too.

Turkey can also play an important role for the EU in bridging the gap between Europe and the wider Muslim world, as we have heard from a number of noble Lords, especially under the proactive Foreign Minister Davutoglu. With borders with Syria and Iran, Turkey is a gateway to the Middle East and of huge strategic importance to EU security. A key consideration is the harmful effect that a perceived EU rejection of Turkey would have on the EU’s foreign policy and its relationships and credibility with the Islamic world in creating an obvious but very real and unsettling view among EU Muslim communities and citizens of the EU.

I am pleased, however, that relations with the Kurdistan Regional Government in Iraq have become so good and there is great recognition that the KRG and the Turkish system have much in common in terms of democracy, women’s rights and the rule of law. There is clearly an important and substantial amount of business investment in Iraqi Kurdistan, which is a force for friendship and stability.

However, certain issues need to be tackled. I think of the infamous Article 301, which has been amended, whereby it is obligatory to obtain the approval of the Minister of Justice to file a case, but Turkey still needs to improve press freedoms and human rights. When writers such as Orhan Pamuk are charged for insulting the nation, Turkey loses friends. These issues need to be dealt with in order to disarm critics. It is all about willingness to admit problems and institute reform where necessary. However, we must at the same time hold out a genuine prospect of EU membership, not just a cynical exercise.