(10 years, 9 months ago)
Lords ChamberMy Lords, I am the first speaker in this debate who was not a member of the committee. Indeed, I have never served on any of the European committees, but I was persuaded to take part by the chair of the committee, my noble friend Lady O’Cathain. I very much share the regret of the noble Lord, Lord Kakkar, that she is unable to be here today.
To pick up a point made by the noble Lord, Lord Haskel, figures that I have seen recently about what is called, in the jargon of the business department, BERD—business enterprise research and development—show that it is a smaller proportion of the total because research and development in other fields has grown very rapidly, but BERD has continued to grow in recent years. This should not be ignored. Indeed, in 2011 it increased in real terms by 6%. As that normally happens only during periods of economic growth, this is quite encouraging and we should not be too pessimistic about it.
When I put my name down to speak, I was a bit apprehensive that I would very quickly find myself out of my depth and perhaps addressing issues that were outwith the main thrust of the report. I need not have worried. The noble Lords, Lord Kakkar and Lord Haskel, have both raised issues to which I will wish to return.
I am doing this because, when I read the committee’s report and the Government’s response, they threw some fresh light on how institutions within the European Union deal with this hugely important area of research and innovation. It led me to compare the way in which this is done in the Community with what happens in this country, always remembering, of course—as the noble Lord, Lord Haskel, reminded us—that much of the money spent in this country that counts as UK research and development or research and innovation is funded through the Community programme.
First, there is obviously common ground. The procedures for assessing the impact of any proposal for research have developed in recent years often in different ways and at different paces, but the purpose of impact assessments has become increasingly clear both to EU institutions and UK bodies such as universities and the research councils. Simply stated, it is this: they are to help those whose task it is to decide how to spend research and innovation money to make choices that will give the best value for money.
But immediately one comes to a question: what is meant by value? At this point, I should perhaps state my interest. I attended a recent seminar held by the Foundation for Science and Technology, of which I was chairman for nine years and am now the president. The subject of the seminar was:
“Maximising the value of the UK strengths in research, innovation and higher education”.
I thought that this might throw some light on the comparison between this country and the EU. Indeed, the words might have been paraphrased as “the effectiveness of research and innovation proposals”, which appears in the title of this report, but that case relates to the European activities.
Whether it is value that you are talking about or effectiveness, I am inclined to believe that they aim at the same thing. Here, the noble Lord, Lord Kakkar, gave us an interesting point on what he thought might be part of value or effectiveness. That was echoed by one of the speakers in our seminar, who asked the question, “What is the value?”. He answered it by asking more questions: “Is it employment, or productivity, or human capital and skills, or human contentment and health—or is it all these things?”. Some of the participants in the discussion started at the other end and suggested that the purpose of research is the advancement of knowledge and understanding, and that this should in turn lead to the innovation which we all seek.
One feature of our discussion on that occasion was that, although the UK stands very high in the world rankings for research or universities or whatever it is—I shall cite in a moment some figures on that which we were given—when it comes to innovation, we are not so successful, as the noble Lord, Lord Haskel, indicated. I shall come to one or two of the reasons.
However, I turn first to universities. Three or four of our top universities regularly figure in the top 10 of virtually every world ranking of universities. When one looks at a longer list of, let us say, the top 50 universities, one sees that there are very few, if any, in other parts of the European Union. In Europe, we absolutely dominate the university field. It has been suggested to me that this may be because far less research is done in EU universities than is done in universities this country and, therefore, they do not rank as high. I can understand that but it is interesting to note that almost none of them is in the top 50. That may to some extent colour the attitude of some of our partners in the European Union.
Turning to research, the UK has 1% of the world population and produces nearly 8% of research papers, almost 12% of world citations and 14.5% of the world’s most highly cited papers. This is a remarkable record of which this country can be very proud. However, as I said a few moments ago, we are not as good at innovating—not nearly as good as this volume and quality of research would suggest that we ought to be. We discussed the trends that may be giving rise to this. The noble Lords, Lord Haskel and Lord Kakkar, have already mentioned one or two of them, but it comes down to knowledge transfer—that is the key phrase—and the difficulty of transferring knowledge from the research field to the industrial field. The noble Lord, Lord Haskel, was absolutely right to put his finger—as does the report—on the fact that this is even more difficult as regards SMEs. Why should this be? Several reasons have been given. One is the inherent institutional, cultural and financial barriers between universities and business. Another is the great reluctance of businesses in this country, but perhaps also in Europe, to take risks and to realise that introducing the products of new research does involve taking risks. There is a reluctance to do that. I was told that if a firm announces that it is going to undertake a major research programme, its shares immediately fall on the market, whereas one might think that this would be a plus. However, in the eyes of the market it is not; it is a minus. The other tendency, of which we are all very well aware, is that of thinking short term rather than long term. However, some of the results of research and innovation may be a long time coming.
I come to my main point. Many of the speakers at the seminar emphasised the huge importance of impact assessments. These have grown over the years in many different ways. In this country it is virtually universal practice to require researchers to make the best assessment they can of the impact which they believe their research could have. The Pro-Vice-Chancellor for Research at Brunel University said that in the experience of that university the very process of having to support a research application for funding with a carefully composed impact assessment was making applicants look at how their research might be transferred to other fields. He went on:
“If the ‘impact agenda’ was to be effective in ensuring that researchers embedded knowledge transfer at the start of projects, they must understand how business might be able to use their research”.
Those seem to me wise words which should apply universally. However, when I turned to the report—here I pick up the points made by the noble Lord, Lord Kakkar—I noted that paragraph 133 states:
“We … urge the Commission to ensure that analysis of R&I policy and proposals is based on scientific evidence, rather than political considerations”.
I find it quite astonishing that that has to be said. Then we had the Government’s response:
“Funding based on excellence is fundamental to the Government’s national research strategy and we also encourage this approach at EU level, as it is the most cost-effective use of public money”.
Can my noble friend on the Front Bench say what the Government are doing within the institutions of the EU to make that happen, if this still has to be said? After all, this is the second report that the committee has produced; there was a 2010 report where it made these selfsame points. Yet here they are three years later, having to repeat them yet again.
This is now the second or third time that this point has been made about peer review. Nature has shown that the whole process of peer review and so-called excellence of research tends to be highly biased towards the English language and the American literature. Some of the most important discoveries were hardly referenced at all in the English language. The EU takes a very broad view of science across Europe, while the rather mechanical view of some of our British colleagues about the nature of choosing by excellence is too narrow. The EC, quite rightly, takes a political and social view of the breadth of science across Europe.
I do not know enough about that aspect of the European attitude on this but I totally support what the committee and the Government have said about the huge importance of basing their decisions on, as they put it in their response, “scientific evidence”. It went on:
“Moreover, it is important to stress that this evidence must be robust, peer-reviewed and replicated. Policy decisions should not be made on the basis of a single report which happens to support a political objective”.
I have no doubt that we will hear from the noble Lord, Lord Hunt, a little later, but I would be interested to know whether my noble friend on the Front Bench supports completely what was said in the Government’s response to this report.
I will not go on quoting; I have taken enough time. Again, I come back to my reaction to this. I found it surprising and depressing that these things still have to be said and are not accepted as part of the overall process of assessing research and development projects. We have been brought up against the background of the Haldane principle. Why do we not have something like the Haldane principle operating within the European Union? We may have our problems in this country—I have outlined the problems of knowledge transfer—but I shall finish on this note. I am left with an uncomfortable feeling that the EU’s approach to the effective use of impact assessments in helping decision makers to secure the best value for money appears to leave a great deal to be desired.
My Lords, I welcome this report, which, as the noble Lord, Lord Jenkin, has said, is extremely well written and constructed and should lead to new long-term policies. I also welcome the unusually constructive government response, by which I refer to the generic feature of government responses, which do not always welcome all sorts of recommendations. This is a good step forward. The report is, of course, mainly concerned with nuclear fission power and the UK context, although it does note the evidence of the director of the UK fusion programme and there is also evidence in it from the director of the Atomic Weapons Establishment. I will come back to these questions but will just declare my own interest. In my own meandering career, I have worked on various nuclear issues such as the fast breeder reactor, fission-related problems and fusion technology. I am now a consultant and adviser to Tokamak Solutions, a project with government and private funding that is looking at possibly linking fusion and fission.
As the report says, the UK has very considerable capabilities in the basic sciences and technologies needed for the nuclear industry. In many areas, the UK was a leader and has a great tradition of collaboration between universities and government or industrial laboratories, which I have participated in. One of the features of having this dual approach to development and research, which is, of course, common to all other countries but which has seen a huge decline in the UK, is that it enables projects to start in the applied area. They then go into the universities, which advise them, and they then turn into research projects, funded by research councils, to establish the basic principles and publish the results in the scientific literature.
Some of the areas where the UK did particularly important work was mathematics, such as that relating to the optimisation of nuclear reactors that began in Harwell. The work there has established the basic methods around the world in many areas of technology including fluid flow, structures in nuclear engineering, electrodynamics and safety. Not everyone knows that Dalton was a meteorologist before he became a chemist. Dalton’s meteorology, as well as his chemistry, was important for safety.
The other important point I want to emphasise is that the model proposed in this report is essentially one of a board, with one or two centres, and university departments. The noble Lord, Lord Jenkin, has, quite rightly, picked up what I also want to emphasise, which is that having a very significant hub makes a huge difference. There was an educational rumpus in the British system around 1990, when Mrs Thatcher—the noble Baroness, Lady Thatcher—was still Prime Minister, over whether climate change research would have one major centre, collaborating with universities, or all the funds would be distributed among existing laboratories. The controversial decision was taken to have the Hadley Centre, which turned into a world-leading institution. In the past, we have had world-leading centres that have been major hubs. The recommendation is not as strong as it might be in this report. Indeed, this has been the basis of leadership in the United States, France, Germany—until it withdrew—and Japan. We should remember the lessons of those countries.
In respect of that point, I worked in the Central Electricity Generating Board laboratory, which is now a housing estate, like many of our former laboratories. The privatisation programme in Britain led to a lot of housing estates taking over laboratories but none of the money from those estates ended up in science. It ended up in various places, which we shall talk about.
On the UK activities of this hub programme, it is essential that it does not just advise the Government. On this, I differ from the noble Lord, Lord Jenkin. It must be seen to be a realistic organisation that works with industry. It must have contracts with industry—that is important—or it will not have credibility.
I am sorry; I did not intend to imply the opposite. The noble Lord is absolutely right.
I see. The hub must be very practical and involved in engineering. I am sorry to sound like a broken record but we used to do that in the old CEGB. We were dealing with problems in power stations and designing new power stations, as well as carrying out research. That led to world-class respect.
The other important point is that there is the possibility of our hub or network using the extraordinarily advanced international computational facilities at the Atomic Weapons Establishment and, as I learnt yesterday from the Financial Times, the new engineering facilities being built at Rolls-Royce for the Trident programme. These will have extraordinary abilities, which we should involve in our programme.
I have a little anecdote on this. When I was a trainee, I was clambering around on a new railway engine that was being built in Vickers. All our equipment there was stamped, “Nuclear facilities: not to be used for any other purpose”. That is the kind of collaboration from which we rather want to move away. The United States has the major nuclear laboratories. It has always combined R and D work on the civil and defence aspects of nuclear energy. I do not see why we should move more in that direction in the UK.
Finally, responsibility for forward strategic planning, which needs to be explicit in the terms of reference of the board and maybe this hub, should include R and D programmes concerned with nuclear waste. This should involve not only geological repositories but new technologies. My noble friend Lady Worthington will doubtless touch on this. It is clear from Russia, China and Korea that it is important to use materials other than uranium, and that, even with uranium, we must find technologies that will use our existing waste as well as new waste. Can we really accept that the UK’s nuclear waste will be stored for ever, until the next ice age, about which the noble Lord, Lord Oxburgh, will perhaps tell us? Surely this is the moment when we should have new institutions with very long-range objectives—at least as long-range as those of other countries, which are certainly working on that timescale.
My Lords, I will be extremely brief. The Commons amendments, particularly those in this group, make considerable improvements to the Bill, and it was very welcome to hear the noble Baroness, Lady Smith of Basildon, say that the Opposition are finding it easy to accept these amendments.
I also thank my noble friend Lord Marland for the amount of trouble that he and his officials have taken with what is, at first sight, a pretty formidable list of amendments that have come from the other place. When I picked up the paper initially from the Printed Paper Office, I thought that we might be here for a week. But he has taken a huge amount of trouble to explain what the amendments are all about, which will make our debate very much simpler.
I want to raise two points on this group of amendments, which I have discussed with my noble friend. I have always found it difficult to understand why, if somebody chooses to pay off a debt early, they are subject to some sort of penalty. I would have thought that if you pay off your mortgage early, as I did some years ago, the lender then has more money to lend to somebody else. Why should one be expected to pay him compensation because you have repaid him early? Can my noble friend justify why that is particularly relevant in this case? He also talked about the regulations that will be limited to Green Deals of a specified length and so on. Is he able to give us any guidance as to how that will work?
The second point is much more relevant. From the beginning it has been recognised that a body will have to be appointed to manage the Green Deal oversight and the authorisation scheme, because that will be fundamental to securing the consumer protection that, quite rightly, the noble Baroness has referred to. Can we yet be told anything about who that will be or to what body this vital task is going to be entrusted? We have now come to the final stage of this Bill. It has gone on for a long time and we still know nothing about who is going to run the scheme. It is obviously going to be under the general supervision of Ministers, but a body will be delegated to manage the Green Deal oversight and authorisation scheme. Can my noble friend tell us anything more about that at this stage?
My Lords, I would like to ask just one question, which I asked at Second Reading and in Committee. Heating a house is also a matter of ventilation. I raised the fact that the word “ventilation” was not in the Bill and the Minister assured me that it was not. We still have no reference that I can see in the Bill to advice about investment in ventilation systems in housing, which is a huge part of the thermodynamics. Just to satisfy the odd thermodynamics freak in this House, I wonder whether he could put that straight.