Queen’s Speech

Lord Sarfraz Excerpts

Monday 16th May 2022 Lords Chamber

[Lord Sarfraz (Con)]

My Lords, when I think of all Britain’s success stories over the years, it is hard to look at our domestic automotive industry without a great sense of pride. I draw the House’s attention to my interests as set out in the register, particularly in early-stage battery technologies.

The United Kingdom has been blessed with industry pioneers: Frederick Bremer built the country’s first four-wheeled petrol engine car; Herbert Austin, a Member of your Lordships’ House, led the UK in capturing global market share; Michael Stanley Whittingham won a Nobel Prize for the development of lithium-ion batteries in this country; and Andy Palmer launched the world’s first mass-market electric vehicle. But sadly, our domestic auto industry has been in a steady, gradual decline.

We used to be the world’s largest car exporter and the world’s second-largest car producer, but last year we made just 930,000 cars—fewer than Slovakia, the Czech Republic, Canada and Indonesia. We now make less than 1% of the cars in the world, yet the industry still supports the jobs and livelihoods of more than 800,000 people. All the great names of British auto making have been acquired by foreign competitors. While we welcomed the foreign investment, it also means that key decisions happen in overseas boardrooms, with distinct corporate cultures and ultimately competing priorities to those of UK plc.

It is no accident that Governments in the largest economies around the world have gone to great lengths to support their auto industries. During the 2008 financial crisis, the Japanese, German, French and US Governments all stepped in and recognised the importance of their car industries to their economies and the shadow they cast on associated industries. The industry does not just make cars; it makes skilled people who end up in aviation, logistics, academia, engineering, construction and elsewhere. In 1939, the car industry was able to pivot its manufacturing capability to drive the war effort, and in 2020 it was the car makers that pivoted to create ventilators in our moment of need.

We have an opportunity now to revive the car industry. It is transforming itself with the deployment of electric vehicles. We have a chance to retool, re-evaluate and recreate a new supply chain that includes the mass production of batteries. Chief among our needs is attracting four to six battery manufacturers to the UK instead of the EU. Duty regulations mean that batteries must be made in Europe by 2026, yet almost all cell makers are setting up in the EU simply because they can access bigger grants in lower-cost countries and in a political environment that makes EV batteries a project of strategic importance.

The gracious Speech highlights levelling up, economic growth and net zero, all themes in which the auto industry can play a starring role. But we cannot level up unless there is a level playing field, and that is what the Government need to deliver to our car industry.

Newport Wafer Fab

Lord Sarfraz Excerpts

Monday 6th December 2021 Lords Chamber

[Lord Callanan (Con)]

Of course, I cannot comment further on these transactions, as the noble Lord knows, but semiconductors are an important aspect of our industrial future. We have some excellent manufacturing companies in the UK, and we want that to continue.

[Lord Sarfraz (Con)]

My Lords, one of the stated objectives of a project awarded by Innovate UK to Newport Wafer Fab is to provide the UK with a novel sovereign gallium nitride capability. Can my noble friend tell the House how that capability can possibly remain novel, or indeed sovereign, following acquisition by a foreign state-backed entity?

Human Rights Due Diligence

Lord Sarfraz Excerpts

Tuesday 20th July 2021 Lords Chamber

[Lord Callanan (Con)]

The UK was the first state to produce a national action plan to respond to the guiding principles. We have continued to develop our approach, particularly with the Modern Slavery Act. We are working across the UK Government on this, and involving the devolved Governments in proper enforcement of the provisions.

[Lord Sarfraz (Con)]

My Lords, Eid Mubarak to all those celebrating. While we are very efficient in detailing the human rights abuses in overseas supply chains that we source from, we do not demonstrate the same enthusiasm when we export our trash to those same countries. What about the environmental and human rights abuses that happen in the global waste trade in which we participate? Can my noble friend see how this sends mixed messages internationally?

[Lord Callanan (Con)]

Businesses involved in the export of waste are required to take all necessary steps to ensure that the waste they ship is managed in an environmentally sound manner, throughout its shipment and during its recycling. Current penalties for breaching the legislation are a two-year jail term and an unlimited fine. My noble friend will be aware that the Environment Bill will introduce even tougher controls on illegal waste exports, including powers to make it harder for criminals to obtain and export waste illegally.

Private Sector: Environment and COP 26

Lord Sarfraz Excerpts

Wednesday 7th July 2021 Lords Chamber

[Lord Callanan (Con)]

I am very happy to join my noble friend in recommitting to that. Sir Roger was an inspiring champion for using finance as a force for good in tackling climate change and improving the environment. All of us in government will remember his work.

[Lord Sarfraz (Con)]

My Lords, the increased attention given to climate change in boardrooms is largely being driven by investor sentiment. Last year, over 100 new environmental, social and governance funds were launched in Europe alone. ESG funds happen to be performing exceptionally well, demonstrating that ethical investing is profitable investing. Can my noble friend send a clear message to ESG investors today that the Government recognise their efforts, that they are welcome and that they will be supported?

[Lord Callanan (Con)]

I agree with the points made by my noble friend. The Government’s ambition is for the UK to be the best place in the world for green and sustainable investment. ESG funds are a crucial part of this. The Chancellor used his Mansion House speech on 1 July to announce a set of ambitious new policies to drive forward this important agenda.

Carbon Budget Order 2021

Lord Sarfraz Excerpts

Thursday 10th June 2021 Grand Committee

[Lord Sarfraz (Con)]

My Lords, it is a privilege to follow such experienced and distinguished noble Lords. I declare my interest in agricultural technology as set out in the register.

The monsoons will shortly start in south Asia. Traditionally, the arrival of the monsoons begins with a festival to celebrate nature and express gratitude for all that the planet gives us, but things are different now. As the climate has changed, so has the mood on the subcontinent. Sadly, the rains that give sustenance have become floods that take lives. So as we think about our carbon budget today, we are reminded of those living with the real effects of climate change around the world.

Our carbon budget is part of an international balance sheet. For us to achieve net zero, carbon offsets must work too. Despite a false start a decade ago, this time round, the voluntary carbon market can be a real success. For this to happen, we need to make some improvements—and quickly. Currently, the entire system of carbon offsets is extremely complex and needs specialist advisers and consultants to navigate it. This desperately needs to be simplified, standardised and made accessible so that income from carbon offsets can directly benefit those changing their practices—particularly those using nature-based solutions and those in low-income countries. This must be done without compromising the quality of credits; the Taskforce on Scaling Voluntary Carbon Markets has proposed a very good set of core carbon principles, which are a useful framework to verify credits. The verification and validation of carbon savings also need to be digitised so they can be rolled out at scale.

We must also recognise that the voluntary market is voluntary, and the institutional investors driving it must be supported. We must fully support the voluntary carbon market. Does my noble friend the Minister agree that we have a duty to make sure that this market works for everyone?

Audit and Corporate Governance

Lord Sarfraz Excerpts

Tuesday 23rd March 2021 Lords Chamber

[Lord Callanan (Con)]

I do not agree with my noble friend. As I said earlier, accountability for directors applies only to those in the largest businesses—that is, those with revenues in the hundreds of millions of pounds and potentially thousands of employees. The new sanctions will apply only in cases where directors have clearly failed in their duties as set out in law, so I do not believe that there is a conflict with the proposals made by the noble Lord, Lord Hill.

[Lord Sarfraz (Con)]

My Lords, I declare an interest as set out in the register. Companies are staying private for longer and entrepreneurs are not always in a rush to go public. Will Her Majesty’s Government consider simplifying trading in private company shares, possibly even introducing electronic trading, so that founders and employees can access the liquidity they need?

[Lord Callanan (Con)]

My noble friend makes an interesting point. Although this White Paper does not include proposals on trading in companies’ shares, the listings review of the noble Lord, Lord Hill, does include some recommendations, including making it easier for private growth companies to make the jump to a public listing.

Fossil Fuels: Business

Lord Sarfraz Excerpts

Thursday 19th November 2020 Lords Chamber

[Lord Sarfraz (Con)]

My Lords, significant investment will be required by energy-intensive industries moving to net zero. Will the Minister advise the House on efforts being made downstream to ensure that these businesses remain competitive in price-sensitive international markets where the competition might not play by the same rules?

[Lord Callanan (Con)]

The noble Lord makes a very good point. We recognise that currently the costs of decarbonisation technologies are very high in many industries and many businesses are unable to pass on the increased costs of decarbonisation to consumers. That is why we are working very closely with industry and addressing this is one of the key aims of our industrial decarbonisation strategy.

Clean Growth Fund

Lord Sarfraz Excerpts

Wednesday 28th October 2020 Lords Chamber

[Lord Callanan (Con)]

With respect to the noble Baroness, that is not the subject of the Question that we are dealing with, so I will write to her separately on that.

[Lord Sarfraz (Con)]

My Lords, I declare an interest in venture capital, as set out in the register. The Clean Growth Fund is one of several government-sponsored initiatives to support early-stage technology entrepreneurs. Can my noble friend the Minister advise if efforts are being made to share best practices across government departments, so that these initiatives do not operate in entirely independent silos?

[Lord Callanan (Con)]

My noble friend makes a good point. The BEIS team have been engaging with cross-Whitehall colleagues as the Clean Growth Fund has been developed and launched, including in the Department for International Trade, the Department for Environment, Food and Rural Affairs and the Foreign, Commonwealth and Development Office.

United Kingdom Internal Market Bill

Lord Sarfraz Excerpts

2nd reading & 2nd reading (Hansard): House of Lords
Monday 19th October 2020 Lords Chamber

[Lord Sarfraz (Con) (Maiden Speech)]

My Lords, it is with great pleasure that I stand to give my first contribution in your Lordships’ House. I congratulate the noble Baroness, Lady Hayman, on her very thoughtful maiden speech.

I have not been a Member long, but I have learned that this House is full of very kind and generous people who have been incredibly welcoming to me. I would like to thank the wonderful doorkeepers, Black Rod, the Clerk of the Parliaments and all the staff for their warm welcome. I am very grateful to them, as well as to my supporters, my noble friends Lord Goldsmith of Richmond Park and Lord Choudrey. I am particularly grateful to the Prime Minister for giving me an opportunity to be part of your Lordships’ House. I have learned about the procedures of this House from my Whip, my noble friend Lord Borwick, and my mentor, my noble friend, Lord Leigh of Hurley. There is a tremendous amount I hope to learn from Members of this House across all parties, who have had such distinguished and diverse careers.

I grew up in Pakistan in a family with a tradition of military service. Both my grandfathers were officers in the British Indian Army and my father was commissioned as a naval officer at the Britannia Royal Naval College. I could not serve in the military because I have asthma, but I now have the opportunity to serve in a different way from the floor of this House. I understand that maiden speeches are meant to be uncontroversial, so I will keep my contribution short and sweet.

In global Britain, entrepreneurs in the technology industry will play a huge role. I am a proud member of the ethnic-minority community of the United Kingdom and I would like to work with my own community so that we can continue to make important contributions in the global economy. For example, the CEOs of Google, Microsoft, IBM, Mastercard and Adobe—among many others—are all from ethnic minorities. I refer to my interest in technology venture capital as set out in the register. We in the United Kingdom have been at the forefront of innovation for centuries. Many people believe that venture capital was invented in Silicon Valley but it was actually invented in Birmingham. In the 18th century, members of the Lunar Society would meet monthly to discuss, demo and fund the greatest technology innovations of their time.

In my career, I had the privilege of observing that one of the determining factors of success and failure is entrepreneurs having access to a strong domestic market. As global as technology markets are, entrepreneurs who can quickly and easily build a foundation in domestic markets are often the ones who have the necessary platform to then scale internationally. The history of virtually every successful technology company started with early commercial wins in a sizeable domestic market. We are fortunate that the United Kingdom is a strong domestic market, especially for entrepreneurs. We must make sure that our start-ups—whether in space technology in Glasgow, cybersecurity in Belfast, digital health in Cardiff, artificial intelligence in Oxford, life sciences in Cambridge, the internet of things in Manchester or virtual reality in Liverpool—all have access to a strong, stable UK internal market with certainty of rules and regulations. I am therefore pleased to support this Bill in your Lordships’ House.

Finally, I would like to thank my family, my parents, my wife and my beautiful daughters for their long-standing love and support, and I thank noble Lords for giving me an opportunity to participate in this important Second Reading.