Private Equity Takeovers

Debate between Lord Holmes of Richmond and Lord Callanan

Thursday 21st October 2021 Lords Chamber

[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

Debate between Lord Holmes of Richmond and Lord Callanan

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.

Retail Businesses: Financial Support

Debate between Lord Holmes of Richmond and Lord Callanan

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

Debate between Lord Holmes of Richmond and Lord Callanan

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.

Post Office: Horizon Accounting System

Debate between Lord Holmes of Richmond and Lord Callanan

Monday 7th September 2020 Lords Chamber

[Lord Callanan (Con)]

I certainly acknowledge the urgency of the situation. We are working as fast as possible to get the review under way and to announce the chair—we will do so as quickly as possible.

[Lord Holmes of Richmond (Non-Afl)]

My Lords, my heart goes out to all the sub-postmistresses and sub-postmasters who have been dragged through this Horizon hell. They have been treated despicably. Will the Government act ahead of this review and pay the legal fees of those brave sub-postmasters and postmistresses who took legal action? They were awarded £57 million; after legal fees that is now down to £11 million. Surely the Government can take that action without having to wait for the review to commence?

[Lord Callanan (Con)]

Of course, there was an agreed settlement for the sub-postmasters who took legal action. It would not be right for the Government to interfere in that settlement.

Corporate Insolvency and Governance Act 2020

Debate between Lord Holmes of Richmond and Lord Callanan

Wednesday 29th July 2020 Lords Chamber

[Lord Callanan]

I can certainly give the noble Baroness that reassurance. These are complicated provisions and we accept that they have been in place for only a short period. We will of course continue to keep a close eye on how they are working out in practice.

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

My Lords, I full-throatedly support the comments of the noble Baroness, Lady Kramer, and my noble friend Lord Leigh of Hurley; I spoke to that effect during the passage of the Bill. I want to ask my noble friend the Minister about the role of the monitor, particularly around passivity and partiality. Are the Government considering passing regulations to require the monitor to submit a statement of their independence and meet a test of independence? Are they considering, in certain circumstances, enabling creditors to challenge the appointment of a monitor?

[Lord Callanan]

As my noble friend is aware, we debated these matters extensively only a few short weeks ago when we passed the legislation. We are keeping all aspects of the legislation under constant supervision. It is a complex Act, with lots of new provisions that we think will benefit companies, and we continue to look at how it is working in practice.

Covid-19: British Business Bank

Debate between Lord Holmes of Richmond and Lord Callanan

Thursday 30th April 2020 Lords Chamber

[Lord Callanan]

The noble Baroness makes a good point, but we have provided a generous guarantee scheme and we fully expect that all businesses will benefit from such schemes and that banks pass on the savings to borrowers. We have removed the forward-looking viability test, as I said earlier, but we constantly monitor all these schemes and seek to improve them where possible.

[Lord Holmes of Richmond (Con)]

My Lords, to what extent have the Government involved our fantastic fintech sector and would they consider setting aside a certain percentage of funds for fintechs to distribute, bringing much-needed pace and efficiency to the process?

[Lord Callanan]

My noble friend makes a very good point—fintech has a significant role to play. Funding Circle, as he will be aware, was recently added as a CBILS accredited lender. Along with other alternative finance providers, it will help even more businesses to access the finance they need at this difficult time.