Watchdogs (Industry and Regulators Committee Report)

Lord Holmes of Richmond Excerpts

Monday 9th September 2024 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 Hollick, on his excellent introduction to the debate and thank him and the committee for an excellent report that covers so much ground in such clarity and detail. “Who watches the watchdogs?” has been the cry over centuries of human societies, and it is never more applicable than today with the proliferation of regulators covering all aspects of our economy and society. Performance, independence and accountability are exactly the three points on any tripod to get into the issues surrounding how in the UK we regulate in the 21st century. The recommendations are clear, achievable and relevant, and I agree with all of them.

The themes running through the report are equally clear. There is a sense that it is as good as pointless—worse, harmful—simply to add more statutory objectives to regulators in the belief that this would impact performance and produce a better result for the market or consumers. Similarly, some regulators are able to fund themselves through levies and fees, and others have to go with their hand out to government. That financial structure must impact on the way that they operate, through no fault of their own.

The cry I hear running through the whole report is for clarity, consistency and coherence across the regulatory landscape. I agree entirely. This is never clearer than when we come to artificial intelligence where, currently, there is no regulator. The previous Government had the inadequate approach of writing a letter to all regulators to ask them what they intended to do when it comes to artificial intelligence. Will the Minister say what this Government’s approach will be to get the right regulatory framework for AI? I would certainly like to see an AI authority to review many of the provisions in my AI Private Member’s Bill, and I thank the noble Viscount, Lord Chandos, for his kind words about it.

When I say an AI authority, I do not mean a behemothic regulator covering all aspects of AI; I mean a right-sized, agile, nimble and, crucially, horizontally-focused regulator to look across all the existing regulators to assess their competence, address the issues, challenges and opportunities of AI and identify the gaps where currently there is no recourse. For example, in recruitment, if you find yourself on the wrong end of a recruitment decision, often without even knowing that AI was in the mix, there is currently nowhere in the regulatory landscape to seek redress. Similarly, we need an AI authority to be the custodian of the principles we want to see, not just for the right-size regulation of AI, but going further than that with an ability to transform the way we regulate across the whole of our economy and society and to look at all legislation to address its competence to address the challenges and opportunities of AI.

Will the Minister say where the Government currently are with the regulatory innovation office? What will be the scope? How will it be funded? What will be its first tasks? Does she agree that it is high time that we had an AI authority if we are to gain all the economic, social and psychological advantages and benefits of AI while being wholly conscious and competent to address all the risks and challenges? I suggest that if we had such an AI authority, it would have not just a positive impact on how we go about regulating AI but could improve how we go about regulation and regulators across the piece, not just positively impacting AI, not just asking the question “Who watches the watchdog?”, but enabling those watchdogs to be more, enabling them to be guard dogs and to be guide dogs, and, crucially, if the guard dog and the guide dog fail, empowering them to show their teeth.

Lithium-ion Battery Safety Bill [HL]

Lord Holmes of Richmond Excerpts

2nd reading
Friday 6th September 2024 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in this Second Reading and to follow the noble Lord, Lord Berkeley. I congratulate the noble Lord, Lord Redesdale, on his Bill and on the impact that it has already had on the new Government. It means that, unusually for a Second Reading, I can indulge in more questions to the Minister than may otherwise be the case.

It is clear that we cannot turn our energy system green and we cannot reach net zero without batteries. The questions are what batteries and with what chemistry within them, and around how they are constructed, controlled and deployed. That goes to the heart of the noble Lord’s Bill, which I support and wish well on its journey. It seems it may have a longer and more winding journey—or perhaps shorter and more winding—than other Private Members’ Bills.

I have a number of questions for the Minister, not least on the Product Regulation and Metrology Bill, which encompasses much of the noble Lord’s principles in his Private Member’s Bill. First, would it be a good idea to have a complete prohibition on charging any of these batteries, whatever device they are in, in any hallway or common parts of shared dwellings?

Secondly, are the current sanctions against those who manufacture and produce batteries that are not of the requisite standard and quality at an appropriate level? I am also interested to hear what representations the Government have had from our courageous firefighters on what is happening out there? Do we have a clear picture of the number of fires caused by lithium-ion batteries? Do we have that mapping exercise and is it clearly understood? What do the Government need to do to support our firefighters to face different challenges? There will be an exponential increase in the number of these batteries, not just on our person but moving around on small, large and mega mobility devices. What is the Government’s plan to control and effectively deal with these devices when, in tragic and horrific situations, they go wrong?

Looking broader than the Bill, it is clear that the Government need an overall battery strategy. We saw issues with Britishvolt in the north-east, so I am interested to hear from the Minister about the Government’s current strategy for battery use and development, and to get the UK to the level of battery manufacture that it requires to deliver on net zero and our mobility needs.

I refer the Minister to a report on this issue of the Science and Technology Committee, on which I was involved, a couple of years ago, called Battery Strategy Goes Flat. I cannot claim to have been the author of the title but, as it referred to the previous Government, perhaps the Minister can tell us the current Government’s strategy for the battery needs of the country.

Similarly, what level of investment is going into developing and understanding not just current battery technologies but—as the debate already referred to—all the new technologies coming on stream and very nascent technologies that are likely to form a large part of our battery need in a short time? All have potential, but allied to potential risks that need to be understood and legislated for.

Finally, on the future, what is the Government’s grand vision for the role of batteries and fuel cells across our economy and society, so that we have a safe, positive transition to green energy, to mobility for all in an inclusive manner, and a situation where the chemistry and science are fully understood so that, most importantly, we can all go about our business safely. I wish the Bill well and look forward to seeing how it interacts with the product safety Bill to put the country in a far better situation for the generation and storage of energy, and, crucially, our safety.

AI Technology Regulations

Lord Holmes of Richmond Excerpts

Tuesday 30th July 2024 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

I thank the noble Lord for that question and for all the work he has done on the AI issue, including his new book, which I am sure is essential reading over the summer for everybody. I should say that several noble Lords in this Chamber have written books on AI, so noble Lords might want to consider that for their holiday reading.

The noble Lord will know that the use and regulation of live facial recognition is for each country to decide. We already have some regulations about it, but it is already governed by data protection, equality and human rights legislation, supplemented by specific police guidance. It is absolutely vital that its use is only when it is necessary, proportionate and fair. We will continue to look at the legislation and at whether privacy is being sufficiently protected. That is an issue that will come forward when the future legislation is being prepared.

[Lord Holmes of Richmond (Con)]

My Lords, would the Minister agree that the way to regulate AI is principles-based, outcomes-focused and input-understood, and always, where appropriate, remunerated? To that end, what is the Government’s plan to support our creative industries—the musicians, writers and artists who make such a contribution to our economy, society and well-being, and whose IP and copyright are currently being swallowed up by gen AI, with no respect, no consent and no remuneration? Surely it is time to legislate.

[Baroness Jones of Whitchurch (Lab)]

The noble Lord raises a really important point here and again I acknowledge his expertise on this issue. It is a complex and challenging area and we understand the importance of it. I can assure the noble Lord that it remains a priority for this Government and that we are determined to make meaningful progress in this area. We believe in both human-centred creativity and the potential of AI to open new creative frontiers. Finding the right balance between innovation and protection for those creators and for the ongoing viability of the creative industries will require thoughtful engagement and consultation. That is one of the things we will do when we consult on the new legislation.