Catapults (Science and Technology Committee Report)

Lord Holmes of Richmond Excerpts

Thursday 19th May 2022 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in this debate. I congratulate the noble Lord, Lord Mair, on the eloquent way in which he introduced and took us through the Committee’s report. I am privileged to serve on your Lordships’ Science and Technology Committee. Unfortunately, I did not become a member of it until after this report was put together, but I echo all the comments that noble Lords have made regarding the staff, clerk and support for the Committee. It is always a tremendous team effort, with everybody playing their part—not least one of our former chairmen, the noble Lord, Lord Patel, who provided inspirational and supportive leadership during the first couple of reports I was involved in.

If we are to recover from Covid, build back better—or whatever phrase we choose—and come through this horrific situation in Ukraine, it will come down to the interplay of inclusion, innovation, talent and technology, and optimising all therein. My noble friend Lord Willetts was quite correct that talent and skills are a key part of the issue right now. Credit must be given to my noble friend Lord Baker for the work he has done with university technical colleges and the powerful role they play, not just in producing people to fill these roles but in enabling technical education to have the status it should, rather than being seen as somehow secondary. As the noble Viscount, Lord Hanworth, said, that was potentially the view going right back to the Butler Education Act 1944.

However, we have many reasons to be cheerful in this country, and the catapults are a key part of that. We are not short on world-beating universities, and we are not short on brains—my noble friend Lord Willetts, famously, has two. We are good at the ideas but when it comes to spinning out and, crucially, scaling up at pace, there is such a long way to go, not just in the reasoning for the establishment of catapults but in the key role for them to play in that space. We need more scaling of catapults to enable scaling of the UK economy and all those brilliant ideas to come to fruition.

The Digital Catapult has taken public funding and applied a significant multiplier to it to make a difference right across the country—over 400 businesses each year since its establishment. On levelling up, look at the work in Northern Ireland that the Digital Catapult is doing with nano manufacturing businesses: a clear example of how the catapult can play a critical role in that part of the ecosystem, add pace at that stage and be a key part of the Belfast innovation district. Again, that shows that this is not just about individual entities, individual parts of the state trying to operate as verticals or in isolation. It has to be an ecosystem, a district, a cluster and a collaboration between all those elements, right across the United Kingdom.

We have the opportunity. Crucially, it comes down to enabling that talent and technology to come together—that inclusion and innovation. To answer the question that still exists in this area, as much as in so many areas of our lives, the talent is everywhere. The ideas are everywhere. Crucially, the opportunity still is not. Catapults have a crucial role to play and we should all continue to be supportive of their work.

Finally, I ask the Minister for his view on what more we need to do to ensure that we get to the 2.4% and beyond. As I have the microphone, I hope I will be indulged in asking him where the Government are on the leadership of ARIA and how he sees the role it can play in the overall innovation space. It will be the so-called new technologies that build economic growth and, through that, the social, psychological, community, city and national growth that we need to move forward for the benefit of us all.

Queen’s Speech

Lord Holmes of Richmond Excerpts

Monday 16th May 2022 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in this debate on the gracious Speech and, in doing so, I declare my technology interests as set out in the register. I will cover the two areas of financial technology, hereafter fintech, and financial inclusion, hereafter “fininc”.

It is over a year since the Kalifa review into financial technology opportunity in the UK. How should we judge the success of any review and its recommendations? Well, economies around the world are rapidly taking up the recommendations of the Kalifa review. I believe that, in the UK, we need to ensure that we take every last recommendation right across the piece if we are to take the opportunity that fintech presents. Specifically, can my noble friend say where we are currently with the start date for the centre for finance, innovation and technology, what resource the centre has and who indeed will lead it?

On the regulatory review, there is a real opportunity for us to release all the potential power of fintech for the benefit of every citizen across the UK, but that is not an inevitability. It will need the right thought-through regulatory framework if we are to enable this.

On “fininc”, it was pleasing in last year’s Financial Services Bill—now an Act—to have got in the provision around cashback without the need for a purchase. Its success has been shown not only in taking up some of the slack for the closing of bank branches and ATMs but that—perhaps most pleasing to me and others who pushed for the measure—the large majority of transactions for cashback without purchase have been for £20 or under. Not only is this picking up where ATMs have left off but, crucially, it is taking an area of the economy of our society previously largely not covered and ignored by financial services provision. What more will be done to ensure that cashback without the need for a purchase is enabled in every community up and down the country? Similarly, on the shared banking hubs, which are a great proof of concept and success, I ask my noble friend: how will we ensure scale and that, again, every community up and down the country can avail itself of such a hub?

It is pleasing to see the potential measures around cash in the proposed financial services and markets Bill, but access to cash is but one part of the deal. What do the Government intend to do around acceptance of cash? If you will, what currency cash if no place to spend it? It is crucial that we look at both elements so that the 5 million to 8 million people who rely on cash can be assured that they can, rightly, continue to do so. Cash still matters, and it matters materially to millions up and down the country.

Finally, I briefly touch on central bank digital currency. The Bank of England has done tremendous work in this space, but can the Government put even more pace into this work and look at some of the non-monetary benefits of a central bank digital currency and of programmable money? I give one pertinent and potentially huge illustration of how a CBDC could help: atomic settlement at the border. What a difference that could potentially make.

In no way do I think that fintech, artificial intelligence, distributed ledger technology or the internet of things alone can cure the current issues that we face. However, if we orchestrate them and have them converging together for the public good, the opportunity exists to human-lead on all these new technologies for economic growth and economic, social and psychological good for the benefit of us all.

Private Equity Takeovers

Lord Holmes of Richmond Excerpts

Thursday 21st October 2021 Lords Chamber

[The Lord Speaker (Lord McFall of Alcluith)]

Lord Dubs? Not present? I call the noble Lord, Lord Holmes of Richmond.

[Lord Holmes of Richmond (Con)]

My Lords, does my noble friend agree that inward investment and an economy open for global business are good, but where a UK target company has been built largely and perhaps sometimes exclusively on taxpayer-funded government contracts, should we not reconsider the current regime?

[Lord Callanan (Con)]

It is difficult to give specific examples, but there are grounds under national security, financial stability, media plurality or public health emergencies for the Secretary of State to intervene in mergers and takeovers, and, of course, the CMA monitors competition grounds. Beyond those factors, we welcome inward investors and I agree with the noble Lord that we should be an open and accessible economy.

Sovereign Defence Capability: Meggitt Takeover

Lord Holmes of Richmond Excerpts

Wednesday 15th September 2021 Lords Chamber

[Lord Callanan (Con)]

The answer to the second part of the noble Baroness’s question is yes. On the first part, it is a quasi-judicial process, and the Secretary of State has not taken a decision on it, so I cannot go any further than what I have said so far.

[Lord Holmes of Richmond (Con)]

My Lords, what steps have the Government taken to strengthen their investment screening processes?

[Lord Callanan (Con)]

As I just indicated in my answer to the noble Baroness, Lady Hayter, this House debated at length and passed the National Security and Investment Act, which strengthens the Government’s powers. That Act is in the process of being implemented now. We have already passed a number of statutory instruments, and it will commence fully in early January.

Status of Workers Bill [HL]

Lord Holmes of Richmond Excerpts

2nd reading
Friday 10th September 2021 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in this Second Reading. I congratulate the noble Lord, Lord Hendy, on his Private Member’s Bill and the way in which he introduced it. It is high time that clarity was brought to this area, and the Bill brings that clarity.

I shall focus on a particular category that I will be speaking on at a later stage of the Bill; I hope that the noble Lord, Lord Hendy, will welcome that. That is the situation for unpaid interns, those who are asked to give of their labour for zero pay, a pernicious practice that persists and, unfortunately, has been only exacerbated over the Covid crisis. Here are some of the statistics: 83% of college students say that they have had to undertake unpaid internships, and 52% of university students. Even more worrying, 62% of young people said that they have had to undertake unpaid internships for longer than four weeks, and a shocking 16% of young people said that they have undertaken unpaid internships for more than six months.

Social mobility is yet another casualty of the Covid pandemic. The statistics tell their own story. We are in the midst of a skills crisis, yet companies are still asking people to give of their labour for free. If the individual wants to bring a case, the onus is on them to bring that case. As well as supporting the Bill, I urge all noble Lords to get behind the hashtag #payinterns. It is not just a question of social mobility; we can do so much using all the powers of social media.

Wilberforce brought an end to and slammed the door on slavery in the 19th century. The national minimum wage came in in the 20th century. How can it be that, in 21st-century Britain, the fifth-largest economy on the planet, we still allow unpaid internships to persist? I ask my noble friend the Minister whether he believes that we should bring forward legislation to end unpaid internships, and whether he sees the Bill of the noble Lord, Lord Hendy, as an opportunity to extend that possibility.

Unpaid internships, begone; underpaid workers, receive proper pay; underpaid employment, begone. This Bill brings clarity to an area urgently which has needed it for decades. I urge all Members to support it and give it swift speed through the Lords. It is not a question of party politics; it is a question of economic, social and psychological benefit. It ties in to the Covid build back; it ties in to the levelling-up agenda; in short, it is about making Britain work better for all.

National Security and Investment Bill

Lord Holmes of Richmond Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Thursday 4th February 2021 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part at Second Reading. I declare my interests and congratulate the noble Lord, Lord Woodley, on his maiden speech. I am supportive of the Bill and wholly supportive of the comments of my noble friends Lady Noakes and Lord Leigh of Hurley. It is right that we salute innovators, founders and entrepreneurs, those who produce something where nothing existed before. They deserve all our gratitude.

We have the right environment for investment in this nation. The policy environment and the rule of law make the UK an excellent place for inward investment, and indeed, there is no contradiction. Our national prosperity is inextricably and rightly linked with our national security. In my comments I will cover definitions, the notification regime, the ISU and some associated points.

On definitions, we have a national security Bill with no definition of national security. Without broadening the scope of the Bill, does the Minister agree that a broad definition of national security would be helpful here, without taking it to the extent of other nations, where yoghurt producers and bottled-water manufacturers can come within scope of critical national assets? Similarly, it is right to note where national security and national interest come up against one another and sometimes overly overlap. We have seen in recent times, when the pressure was on, Australia reducing the quantum for referrals in its regime to zero. Similarly, with share ownership under the French regime, it has gone from 25% to 10%. These changes are at least interesting.

As for the notification regime, I am a supporter of the identified sectors—but there are difficulties, as other noble Lords have pointed out. Artificial intelligence, for example, is not a vertical sector or even horizontal, but more a coming ubiquity, and how it is dealt with is central to what is within this Bill. Similarly, on the numbers of referrals—12 in the past 18 years under the previous regime—as other noble Lords have commented, with 1,000 to 1,830, if you apply a multiple to that you will probably get closer to the level of referrals that will occur. Can the Minister say why a business would not refer, for want of certainty?

Similarly, on the impact assessment setting out those numbers, there does not seem to be any basis on which those numbers have been arrived at. I worry that, although it is positive that the information required for notification has dropped by two-thirds, microbusinesses are included, which could cause an unnecessary burden for them. We already have a significant scale-up problem in this nation.

On the ISU, there are questions about its digital capability, level of budget and number of personnel. It could, in reality, through notification, suffer from swampification. We have already seen this with the National Crime Agency. Can the Minister tell us what is being done about those 100 people in terms of their skills, their security clearance and their deep knowledge of the technologies involved?

With retrospection, we see a five-year period. Five years is quite a way from what was originally set out in the Green Paper and the White Paper. As for the overall intent of the Bill, I am supportive, of course. However, in Clause 7 most corporate entities are covered, but there seems to be a loophole in terms of individuals. No matter how small it is, is that a loophole that the Minister would consider closing? On oversight, I agree entirely with the noble Lord, Lord West, that there needs to be an addressing of this democratic accountability deficit, and the ISC is the proper place for this to occur.

In conclusion, we have a good Bill. Does the Minister agree that with delicate, nuanced and proportionate amendments, we can make it a great Bill for national prosperity, national interest and national security, for today and for all our tomorrows?

Trade: Trans-Pacific Partnership

Lord Holmes of Richmond Excerpts

Wednesday 23rd September 2020 Lords Chamber

[Lord Holmes of Richmond (Non-Afl)]

My Lords, what assessment have the Government made of any implications for UK intellectual property rights? What progress have they made in the establishment of a utility trade platform, which would truly enable us to be a 21st-century, global, electronically based trading nation?

[Lord Grimstone of Boscobel (Con)]

My Lords, the UK will ensure that any future accession talks with the CPTPP are consistent with the UK’s interests and the Government’s stated policies and priorities. We will not make changes to our intellectual property regime that are in any way detrimental to ourselves.

Retail Businesses: Financial Support

Lord Holmes of Richmond Excerpts

Monday 21st September 2020 Lords Chamber

[Lord Callanan (Con)]

I know that my noble friend is concerned about this matter and she is right to raise it. We will continue to engage with the business sector to find out what we can do to help those who are increasingly reliant on EU contracts.

[Lord Holmes of Richmond (Non-Afl)]

My Lords, in general, what analysis have the Government undertaken of other member states’ use of state aid, what insights have been gained from that and what changes are the Government considering in the light of that?

[Lord Callanan (Con)]

We are, of course, willing to learn from the example of other countries. However, as my noble friend is aware, all existing member states, and the UK during its transition period, continue to operate under the same state aid framework.

Renewable Energy

Lord Holmes of Richmond Excerpts

Tuesday 15th September 2020 Lords Chamber

[Lord Callanan (Con)]

I think I caught most of that question. The noble Lord is correct that renewables such as wind and solar are now some of the cheapest forms of generation per unit. These technologies are key to meeting net zero but will need to be complemented by other sources of power, including nuclear, which are available when the wind does not blow and the sun does not shine.

[Lord Holmes of Richmond (Non-Afl)]

My Lords, what are the Government doing to support and scale UK advanced nuclear technologies, including AMRs, and will they consider classifying certain nuclear as renewable?

[Lord Callanan (Con)]

My noble friend makes a very good point. The Government recognise nuclear’s potential to support the transition to net zero, as a proven continuous low-carbon energy source. AMRs in particular could support the deep decarbonisation of industry in future.

Trade Bill

Lord Holmes of Richmond Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 8th September 2020 Lords Chamber

[Lord Holmes of Richmond (Non-Afl) [V]]

My Lords, I begin by congratulating my noble friend Lord Grimstone, the Minister, on his excellent maiden speech. With his customary modesty, he skated over a stellar career in financial services in the City of London. I also congratulate the right reverend Prelate the Bishop of Blackburn. He covered so many of the issues that we all must care about.

The Bill has a big title and there are at least 1.3 trillion reasons to support it. Many of the measures contained in it are appropriate and proportionate. But, very much like the noble Lord, Lord Bourne of Aberystwyth, I am interested in what is not in the Bill—as he put it, the dog that is as yet not barking. The noble Lord, Lord Clement-Jones, covered fabulously many of the points concerning technology and IT. In fact, he covered more in three minutes than an algorithm could have possibly got hold of, even a mutant one.

Similarly, I would like to go to the essence of what technology and transformation we need in trade if we are to enable the kind of change a nation state requires. To that end, I ask my noble friend the Minister what the Government are looking at in terms of a transformation of trade finance; supply chain visibility; the ability to connect physical goods with finance; and legal, regulatory and customs requirements—all in real time. Are the Government looking at a UK utility trade platform, which could spearhead our future dealings in this area and, if got right, be the envy of the world? To that end, I point the Minister to a report I published on distributed ledger technology a couple of years ago. I am also about to publish a report on reducing friction in international trade on exactly these points. What role does the Minister see for fintech and regtech to enable much of what the Bill is about, and perhaps our greatest asset: that of common law?

In short, I believe we have an extraordinary opportunity, if not an imperative, to deliver on e-gateways and frictionless trade flows and to become a 21st-century global trading nation. Does my noble friend the Minister agree? Will he also say what, if not in this Bill, the Government intend to bring forward to realise all these opportunities? If not this Bill, what Bill? If not now, when?