Advanced Research and Invention Agency Bill
Aaron Bell ExcerptsMonday 7th June 2021
(2 years, 11 months ago)
Commons ChamberRead Full debate Advanced Research and Invention Agency Act 2022 View all Advanced Research and Invention Agency Act 2022 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 7 June 2021 - (7 Jun 2021)
Daniel Zeichner (Cambridge) (Lab)
When I saw the list of speakers this morning, I thought I would keep my comments brief. Perhaps unusually, I will stick to that.
Daniel Zeichner
Absolutely.
I was happy to be a member of the Bill Committee and we had constructive, good humoured discussions, many of which have been echoed in this evening’s debate. One thing that particularly struck me was the quality of the evidence that the witnesses gave. I have a question for the Minister: if she, like me, was so impressed by what we heard, particularly from the representatives of DARPA, what did she learn from it and what changes could be made to the Bill to reflect the wisdom imparted by the witnesses?
I shall speak in support of all the Opposition amendments, but I want to address in particular amendment 12 and the need for a mission. I was struck by the outline of the Haldane principle by my hon. Friend the Member for Blackley and Broughton (Graham Stringer), who is my good friend. He is absolutely right that there is no need for the Government to get involved in the detail, but equally there is no obligation to withdraw from a having a general sense of what we are trying to do. The key issue is whether we say, “We’re just not going to have a view on what it is going to do” or we have some sense of where this might go.
I spent much of last week reading Professor Dieter Helm’s book on net zero, which I commend to hon. Members. He is quite influential on the Government, I think, but it is pretty depressing reading regarding where we are on achieving net zero. We are nowhere near doing what is needed. One of the key areas is science, innovation and research, so it would not be unreasonable to suggest putting our great scientific minds to work on the great challenge of our times: what to do about the climate crisis.
I am fortunate to chair the all-party parliamentary group for life sciences. When I chaired a meeting this afternoon, one question that I asked the people before us was, “Why was it that you were so successful in tackling the vaccines crisis?” It was because they worked in a different way, with a mission and a purpose, and I think exactly the same thing would happen if we set our great scientific minds to work on this great challenge of our times.
It is important to support amendment 12, as well as the other amendments. What a difference it could make, and what a political opportunity for the Government as we head towards the G7 this week and COP26. Unless something like this is adopted, frankly, we will not get where we need to.
Aaron Bell
It really is a pleasure to follow my hon. Friend the Member for Guildford (Angela Richardson), who is one of my best friends in this place; it was a pleasure to serve on the Bill Committee with her and with so many other hon. Members present. Along with the hon. Member for Brent Central (Dawn Butler), my hon. Friend and I served both on the Science and Technology Committee when it conducted a report on what at the time we were calling ARPA, and on the Bill Committee, so I have felt a real sense of personal involvement in the process as it has developed.
Since I will not speak on Third Reading, I would like to thank everyone who has been a part of the process, particularly the Clerks of the Bill Committee; the Minister for her dedication; and the Whip, whom I see in his place, for his help on our side of the Committee. It was a very good-natured Bill Committee, as others have said. Some amendments that we are debating today are rather similar to those that we rejected in Committee, but obviously that is how Report works. I will not labour all the same points again, but I will speak briefly on them later in my speech.
Science is cool again, because science has saved us in the past year. It is not just about the vaccines—extraordinary though they are, particularly the mRNA advances. It is also about what we were able to achieve with Sarah Gilbert’s Oxford project, which I am very proud is being manufactured in my constituency at Keele science park in Newcastle-under-Lyme; what we have done scientifically in finding therapeutics through our world-leading recovery trial; and the advances that we have seen in rapid tests to enable the incredible amount of testing that we now have in the UK.
However, I would like to add a note of caution, because covid has also exposed some of the problems we see in science and some of the problems in the networks that the hon. Member for Blackley and Broughton (Graham Stringer) spoke about earlier. I am talking particularly about the so-called lab leak hypothesis—the theory that covid emerged from the Wuhan Institute of Virology rather than from a zoonotic transmission. We saw some of the worst of science and the media over that, but it was essentially shut down by a letter to The Lancet organised by the EcoHealth Alliance and its president, Peter Daszak, which squashed the theory on 18 February last year. Let us face it, the theory was assisted by Donald Trump and Senator Tom Cotton in the States taking the opposite view, and there was this whole politicisation of something that should have been about scientific inquiry. Speaking as a Bayesian, and based on everything I have seen, including the fact that the virus was in Wuhan in the first place, and on everything we have seen since, I believe it probably was a lab leak. I would go as far as to stake an 80% probability on that, and I think we should bear that in mind when we think about what we are asking of ARIA.
We do not want ARIA to get politicised and legalised, and we do not want it to fall into the same group-think that we have seen in some science, with a tendency to defend your mates and the people you know in your network and stick up for the institution rather than the principles behind the science. Instead, the DRASTIC group—the decentralised radical autonomous search team investigating covid-19—a bunch of people on the internet, correspondents and scientifically inquisitive people around the world, have managed to bring the lab leak hypothesis back to public attention to the point where it is clearly being actively considered by our intelligence services and our scientific community. I think we need some of that spirit in ARIA. We need that spirit of inquiry and of people outside the system getting their fair say in the system—the Einsteins in the Patent Office, as others have said.
On the amendments about cronyism, what we saw with the appointment of Kate Bingham was a complete disgrace. That is the sort of thing I worry about with some of the amendments to the Bill. I think “everyday sexism” is the term to describe the abuse she got on her appointment. We had the Runnymede Trust trying to go to court to get her appointment declared unlawful, the so-called Good Law Project seeking to crowdfund against her appointment, the leader of the Liberal Democrat party saying that she must resign and Labour’s deputy leader saying “this cronyism stinks”. The truth is that she was the best qualified person for that job. She was appointed at speed because of the circumstances we were in, and she has delivered in spades. If the rumours about her damehood are correct, she richly deserves it and we all owe her an enormous debt.
Graham Stringer
On the Science and Technology Committee, we often share similar views and attitudes to science, and I agree with the hon. Gentleman about the violence of the language that is sometimes used; it is completely unacceptable. When emergency decisions are taken, as they were with the vaccine taskforce and with Test and Trace, there needs to be an assessment afterwards. I hope he agrees that it would be a very different assessment for Test and Trace than it would be for the vaccine taskforce.
Aaron Bell
I thank the hon. Gentlemen for raising that. As a member of the Science and Technology Committee, he knows that we were looking at producing further reports into both Test and Trace and the vaccine programme as a result of our inquiry. I think the Test and Trace programme has actually got to a very good place now: the number of tests we are achieving is the envy of many other countries around the world. We could quite happily say that the vaccine taskforce is an exemplar for everything that went well, and that the Test and Trace programme has been more mixed—[Laughter.] The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) on the Opposition Front Bench laughs, but I think that the Test and Trace programme has helped our recovery from the worst of the covid pandemic. It is not the case that all that money has been wasted, as some Opposition Members say, and it is certainly not the case that it has all gone on cronyism; it has gone on the cost of the tests. That is what it has gone on. Contact tracing is hard. Some people do not want to be contact traced, but the role that Test and Trace has played is still significant, although perhaps not as significant as we hoped initially. I am sure we will move on with that in our inquiry.
Returning to what I was saying about the amendments seeking to give ARIA a mission statement, my hon. Friend the Member for North East Bedfordshire (Richard Fuller) gave the House some good reasons to reject them. First, there is no point spending just a little bit of money on things that already have billions thrown at them; we should be looking at the things we do not necessarily even know about yet. I also think we should avoid circumscribing ARIA’s freedom. Likewise, on all the amendments that are trying to impose more bureaucracy on ARIA, the whole point is to do things differently, with freedom from all the usual processes and pressures that act on these sorts of bodies.
We need to empower scientists. My hon. Friend the Member for Ynys Môn (Virginia Crosbie) quoted Professor Bond, who said of freedom of information in his evidence to the Bill Committee:
“In terms of the level of transparency, transparency is a good and wonderful thing in most areas, but if you are asking people to go out on a limb to really push the envelope, I would assert that there is an argument, which has some validity, that you make it psychologically much easier for them if they do not feel that they are under a microscope. Many people tend to step back when they are there.”
Some of the burdens that people are seeking to put on ARIA would potentially circumscribe it and reduce its effectiveness. The Bill does still have a statutory commitment to transparency. We will have regular reports, and I am sure that our Committee will be regularly engaged not only with the Secretary of State, who is in his place, but with the chief executive and the chairman of ARIA, who will come to speak to us as well.
ARIA needs to have the freedom to fail. In that sense, it needs to be a macrocosm of all its individual projects that also need to have the freedom to fail. Let us truly empower ARIA by rejecting these amendments. Let us let ARIA take flight and shoot for the stars, not weigh it down and prevent it from ever reaching the escape velocity it needs and the chance that it has to boldly go—returning to the “Star Trek” references we had in the Bill Committee—not into outer space but to the very cutting edge of scientific research and discovery. If we pass this Bill today, it will be a great day for science in the United Kingdom.
Duncan Baker (North Norfolk) (Con)
I shall try not to come up with any more “Star Trek” references as we will probably run out in a minute.
I am grateful to the Minister for all her hard work on such an interesting piece of legislation that is going to be truly transformative. It has been a pleasure to be involved in the Bill, having spoken on Second Reading and been a member of the Bill Committee. I want to deal with a number of amendments and also to make this general observation: the Opposition amendments in Committee were, in the main, tabled to hinder much of the Government’s primary intention in what ARIA was set up to do in the first place. If we recognise that ARIA is set up with the sole principle of operating at pace, with flexibility, and with freedom to aid our position in the world in continuing to be a leader in innovation and science, then we absolutely must not stifle it by filling it with bureaucracy around regulation and oversight, thereby harming its very intention. Yes, there will be failures, as we have heard today. We all recognise that; it is almost part and parcel of what is built into the fabric of the agency to help it to operate without restrictions. From board compositions to freedom of information stipulations, even to dictating the agency’s priorities over health and climate change, it is quite revealing to be met with the level of shackles that were to be imposed rather than the vision to encourage our next generation of pioneering inventors.
Amendments 8 and 14 would make ARIA subject to FOI requests. If they were to be passed, we could immediately lose the competitive edge of innovative or potentially cutting-edge scientific developments brought about by risk. Instead, we are thrusting them into the spotlight whereby that ingenuity could be uncovered by FOIs. If we restrict people’s creativity, they will play it safe. They will not take the risk that is the very essence of ARIA in the first place in being an incubator for creativity to flourish.
New clause 3 and amendment 1 take us back to the ring-fencing of ARIA’s remit by constricting its freedom across all facets of science and research. Across the entire country and across all sectors, from automotive to farming, society is striving to decarbonise. We are already a world-leading Government in our commitment to decarbonise to net zero by 2050. To make the agency specifically concentrate its efforts on particular areas is again to dictate as to its uniqueness, and that will not give it the true freedom that is at the very heart of this Bill.
Finally, any organisation is only as good as the people that make it up. ARIA will need a visionary CEO to lead the culture and set its direction. Amendments 3 to 6 would require, among other matters, that Parliament approves the CEO. However, we know that if a small organisation is to be nimble, those decisions need to be made quickly. I do not see that there is a need for approving the board with Government representatives if that process is fair and open, which we are told it will be.
As I said on Second Reading, my constituency of North Norfolk was home to one of our greatest living inventors, Sir James Dyson. I hope that ARIA will be our launchpad to uncover the very next greatest inventor.
Oral Answers to Questions
Aaron Bell Excerpts(2 years, 11 months ago)
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Anne-Marie Trevelyan
I thank the hon. Gentleman for his kind words. We are working to ensure that the transport decarbonisation plan is as ambitious as possible, and we plan to publish in the very near future. It will set out how we incentivise operators and industry to transition to zero emission HGVs and manage emissions from the existing fleet. We are also investing £20 million this year in planning for zero emission road freight trials, which will support UK industry to develop cost-effective, zero emission HGVs and their refuelling infrastructure in the UK.
Aaron Bell (Newcastle-under-Lyme) (Con)
Laura Trott (Sevenoaks) (Con)
The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)
The Government have laid legislation for the UK’s sixth carbon budget, proposing a target that would reduce greenhouse gas emissions by 78% by 2035 compared with 1990 levels, marking another ambitious and decisive step towards net zero by 2050. Our 10-point plan will bring together £12 billion of Government investment, unlocking three times as much private sector investment by 2030 and supporting up to 250,000 green jobs.
Aaron Bell [V]
I thank the Energy Minister for her answer. I know she will have been as disappointed as I was that we were not able to visit the Ibstock Brick factory in Chesterton yesterday, and I look forward to welcoming her up to Newcastle-under-Lyme soon. In the meantime, will she say what the Government are doing to support our vital manufacturers, such as Ibstock Brick, to decarbonise and at the same time support jobs?
Anne-Marie Trevelyan
Yes, I was very sad not to get there. Sadly a cow on the line caused a level of disruption to LNER services yesterday, which delayed my always relatively long journey from the north further south. However, I hope to be able to visit before too long. In March, the Government published the UK’s first ever net zero strategy for industry. It is the first strategy published by a major economy that sets out how industry can decarbonise while remaining competitive and without pushing emissions abroad. Our £350 million industrial energy transformation fund will support businesses with high energy use to cut their bills and reduce carbon emissions.
Advanced Research and Invention Agency Bill (Sixth sitting)
Aaron Bell Excerpts(3 years ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I beg to move amendment 22, in schedule 3, page 14, line 3, at end insert—
“Freedom of Information Act 2000
(12) In Part VI of Schedule 1 to the Freedom of Information Act 2000 (“Other public bodies and offices: general”), at the appropriate place insert “The Advanced Research and Invention Agency”.”.
This amendment would make ARIA subject to the Freedom of Information Act 2000.
It is a great pleasure to serve under your chairship, Mr Hollobone. Amendment 22 is critical and very simple. It would make the Advanced Research and Invention Agency subject to the Freedom of Information Act 2000.
The amendment forms part of a sequence of amendments that we have tabled, which seek to deliver greater oversight of ARIA and greater accountability, in order to increase public confidence, particularly at this time when we are in the midst of a cronyism scandal. We do not believe that ARIA’s blanket exemption from the Freedom of Information Act regime can be justified.
I make the point that £800 million of public money will be spent by ARIA. It is a new agency whose aims and ambitions we all support, but public trust will be vital to its long-term success. In our evidence sessions, we heard from Government witnesses such as Professor Philip Bond. Dominic Cummings, the self-proclaimed architect of ARIA, gave similar evidence to the Science and Technology Committee, which celebrated trusting the leaders of ARIA with £800 million of taxpayers’ money and no purpose. The Labour party believe that this could be a side door to sleaze in science.
We do not want to bureaucratise ARIA. We acknowledge that a hands-off approach is integral to its success. We simply want ARIA to be accountable to the public via the Freedom of Information Act.
On Second Reading, the hon. Member for Newcastle-under-Lyme stated that,
“UK Research and Innovation receives about 300 FOI requests a year”.—[Official Report, 23 March 2021; Vol. 691, c. 830.]
I have since received an answer from the Science Minister to a parliamentary question, which states that, for example, UK Research and Innovation received 371 freedom of information requests in 2020 and has answered 100 in the first three months of 2021. I asked about the costs to UKRI of complying with those requests, but it does not keep track of costs, which implies that they are not significant.
ARIA will be spending between 1% and 2% of the funding that UKRI is spending. If UKRI receives about 300 requests per year, we might calculate, say, that if freedom of information requests were related to the amount of public money being spent—a reasonable approximation—ARIA might receive between three and six freedom of information requests per year. I ask the Committee: would six freedom of information requests per year be a bureaucratic burden on ARIA, as the small and agile organisation we want it to be?
Aaron Bell
I thank the hon. Lady for giving way and for welcoming me back to the Committee by mentioning me in her first paragraph. I was sorry to miss this morning’s sitting, but I was paired with an Opposition Member. I admire her mathematics, but given the interest in ARIA and the cutting-edge research that it will undertake, I do not think that scaling back in the manner she did and suggesting that it might receive only three to six requests a month is likely. As she knows, UKRI has a team of people to deal with freedom of information requests. We should consider carefully whether we want to put such a burden on ARIA, because we want it to be nimble and lean. I am afraid that I do not believe the quantum of money can be scaled to the number of FOI requests. I think ARIA would get an awful lot, given the research we want it to undertake.
Chi Onwurah
Will the intervention from the hon. Member for South Basildon and East Thurrock be on a similar point? I imagine it will.
Aaron Bell
I thank the hon. Gentleman for making that point, which I considered making as well. Given his remarks on Tuesday and his obvious love for the operatic nature of the Bill, it seems he might have considered changing the name of ARIA to the Advanced Research and Insulation Agency.
Daniel Zeichner
I would certainly like to do that, because we have a Government who have been unable to insulate our homes for a decade, but never mind. There are many musical references that could be made, including to The Mothers of Invention, with whom I grew up, but I suspect their notion of invention is rather different from the Government’s.
There is a serious point here, and it is a theme to which I return. We really think there is a problem with not having a clear definition. It seems to us that there are two very different approaches. The Government’s view is basically that our structure of accountability, and the way we deal with public money, is a problem for innovation. It is a difficulty that should be got rid of. I am afraid it goes back to the Dominic Cummings question, because that is his view of the world too. We take a very different view. Far from thinking that it is a problem, we think it is actually part of creating an innovation landscape—a community of people who are working towards shared goals.
Advanced Research and Invention Agency Bill (Fourth sitting)
Aaron Bell Excerpts(3 years ago)
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Aaron Bell
I thank the hon. Lady for the other Newcastle for giving way. She draws a comparison with DARPA, but is the more obvious comparison not with UKRI? Like ARIA, UKRI is bound by the code of conduct for board members of public bodies, which includes. for example. the obligation to declare publicly any private financial or non-financial interests that may, or may be perceived to, conflict with one’s public duty. That speaks to the point that my hon. Friend the Member for North Norfolk made: we would not expect the kind of people we will appoint to the board to act in the ways that she seems to think they will.
Chi Onwurah
I thank the hon. Member for the second Newcastle for that contribution. I will make a couple of points in response. Let me gently say that Government members of the Committee are trying somewhat to have it both ways, in saying that ARIA will be like UKRI while not putting in place any of the measures, systems or processes of accountability to require it to be like UKRI, building on the fact that ARIA is, as I understand it, meant to fill a gap in our research landscape.
On whether ARIA will follow all the rules that UKRI follows, I am pretty sure that the answer to that is no, because as I understand it, it is not going to follow freedom of information or procurement rules. We have seen over the past few months with the scandal over Greensill—this is what the comments from the Chair of the Liaison Committee were about—that the existing rules and regulations are not sufficient. Finally, for the hon. Member for Newcastle-under-Lyme to say that we can expect these people to behave better because they are going to be better than that—really? Many scandals have been founded on expectations like that and again, we do not want the touch or hint of scandal near our fantastic science base.
Chi Onwurah
I absolutely agree with my hon. Friend; I think that it is progressive, transformative and very necessary. We heard today that the Prime Minister has decided to set another target for our emissions—I think that it is to slash UK emissions by 78% by 2035—undaunted by the fact that he has not met any of the targets that he has set previously.
This issue is not about setting targets; it is about changing the way in which our economy and our society work, to reduce our emissions. Just think of the role that ARIA could play in that process. My hon. Friend suggested that achieving net zero is not a narrow mission; it is a broad mission, because net zero impacts every aspect of our life. An ARIA CEO would have plenty of discretion in choosing which aspects of the climate and environmental emergency to address.
Aaron Bell
That is potentially a worthy mission, but the point is that the hon. Lady said there is no direction. Well, going boldly is going to the frontier—even “The Final Frontier”, if we go to “Star Trek V”. [Laughter.] The edge of the edge is not in one direction. The edge is a circle, or even a sphere—all the areas that we do not know about. Trying to focus on one narrow point, as she is doing with the amendment, misses the point of ARIA and the potential for its transformative effect across a wide range of disciplines and lots of areas of science, technology, engineering and, indeed, perhaps even mathematics.
Chi Onwurah
I thank the hon. Gentleman for that contribution. Envisaging the edge of the edge, whether it is a circle or an ellipse—whatever it is, it is obviously broad. It is too broad. I think it could be anything. I think this Committee believes that ARIA must have a transformative impact on society, otherwise why are we here? The area where we need a transformative change is in climate change, which is a hugely broad area.
The UK, under this Government, is off track to meet current targets. The Government have no ambitious green recovery plan, they have axed the vital housing retrofit scheme and they have cut subsidies for electric vehicles. They are desperately in need of focusing our activities on the impact of climate change.
We know that two of the great challenges in reducing our emissions are transport and the existing housing stock. Think what impact an inspired programme director in ARIA could have on that great challenge of effectively insulating and reducing the emissions from our 20 million or so homes, or ensuring that transport, which the Government have said will be included in their emissions targets, is green. That is not a narrow mission. Net zero is not a narrow mission; it is as broad and as big as our planet, and it is certainly where we desperately need to focus our attention.
In response to the point about the Government choosing the mission, I would say that only the Government have the democratic mandate—they won the election—to choose the mission, while allowing ARIA’s leadership the operational independence to implement that mission. It is critical that the mission reflects public concerns, to establish buy-in as well as the tolerance for failure. Without a clear mandate from the Secretary of State, ARIA’s leadership will be put in the unenviable position of having to decide which Government Departments and policies to prioritise, and who will have the ear of the ARIA CEO. I say again that the Government cannot outsource this responsibility as they have chosen to outsource so many other responsibilities.
We are at the beginning of the decisive decade, in which the world must avert the worst impacts of climate change, and ARIA could provide much-needed research to help advance the solutions that are necessary to decarbonise our economy rapidly and fairly. In addition, this year the UK will host the critical COP26 UN climate summit. Would it not be a fantastic message to say that our leading high-risk, high-reward agency is focused on climate change? Would it not provide a model for other countries to follow?
Daniel Zeichner
It is a pleasure to follow my hon. Friend, who has made a strong case. This issue goes to the heart of the discussion we have been having all day and goes back to some of the comments I made in my opening remarks.
We were castigated earlier for talking too much about Mr Cummings. I say that we must cast off the curse of Cummings. I thought the Government had moved on—they got rid of him—but the Bill still has all his hallmarks. The chaos and confusion that he espouses—his raison d’être—will make this agency fail. That is the problem. I encourage the Government to move past it. The evidence from the witnesses all the way through was about the confusion. I understand Marina Mazzucato is advising the Government. She made it ever so clear that ARIA will only work if there is a clear mission. The Americans made it absolutely clear that if we want to do something like they have, that is the way to do it.
The Government seem to be completely confused about whether they want to learn from examples elsewhere, or do something very different—although they are offering no evidence as to why that should work; sadly, we have seen examples in the past of attempts to do this kind of thing that have not worked. If we are going to learn from the examples elsewhere, surely we have to listen to the people who know how they work. I am at a loss to understand why the Government are not listening to the advice.
The first point to make about the amendment is whether to have a mission or not. Do we do it in the way that might work? It is clear that we have to. The second point, which follows, is that if we are to choose something, what should we choose? Witnesses pointed out that there a number of choices. Unsurprisingly, climate change came up on a number of occasions, as it is obvious we should seek to address it. My hon. Friend the Member for Newcastle upon Tyne Central has made all the points on that.
We have an extraordinary situation in that we have COP26 coming up in a few months. Would it not be wonderful if we had this new agency established to address those huge challenges? I fear we are not going to have it, though. We might have the agency and someone sitting around scratching their head saying, “What shall we do today?” when it is entirely obvious what they should be doing.
As I said earlier, we could have some social science challenges. A big one is: how is an advanced country like ours not able to lag a few lofts? We have had 10 years of failure in these schemes, with one scheme under the coalition, and the latest scheme from the Government collapsing a few months ago. It is extraordinary when we know that one of the biggest problems is the state of our housing stock, yet we cannot seem to find a way to run a scheme to improve it. That challenge would fall very much within the scope of our amendment. We want this to succeed.
Finally, I cannot help but refer to the extraordinary document that Dominic Cummings waved at the Committee. I could not see it on the TV screens, so I went and printed it off. I will hold it up. I do not know if anyone has seen it, but this is primary school standard. I want to put in a word for taxi drivers, actually, because what was said earlier was slightly unfair. I am quite happy that taxi drivers are scrutinised—and members of the ARIA board. I also do not want to be in any way disrespectful to primary schools, but really? Do not place the future of the agency in the hands of the legacy of Dominic Cummings.
Aaron Bell
I just wanted to say that that document has been entered into evidence and is available on the Science and Technology Committee website.
Daniel Zeichner
And I am eternally grateful, because that is where I found it. I must say that I was still surprised, because it looks to me more like something that came out of “Star Trek” many years ago.
Advanced Research and Invention Agency Bill (Third sitting)
Aaron Bell Excerpts(3 years ago)
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Dawn Butler
It is a pleasure to serve under your chairmanship, Ms McVey. I do not think anyone will vote against the amendment, because all it seeks to do is ensure that there is a memorandum of understanding between ARIA and UK Research and Innovation about how they will work together. The two organisations will be working on the same themes, though doing things slightly differently, and they need to communicate. I am happy to give way to anyone who thinks it is not a good idea that UKRI and ARIA communicate. The amendment is practical and sensible and seeks only to clarify how they would work together.
Our evidence session was informative. Dame Ottoline Leyser from UKRI said:
“The people employed at ARIA will absolutely need to understand deeply what UKRI is doing and what the opportunities are across that research base in order to deliver their vision. I would expect a very close working relationship with ARIA to allow that to happen.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 6, Q3.]
When she said that, I thought that the relationship must have been written in the legislation and I had missed something, because she said it as though it was going to happen. I went back to the Bill to have a look, but nothing in it says that UKRI and ARIA have to work together or at least know what each other is doing. I thought that quite strange. When I asked her how she expected that to happen, she said “naturally”. We in Parliament make laws and legislation; we do not leave things to happen naturally if we can we put them on the statute book. The amendment seeks only to have a memorandum of understanding between the already established UKRI and the newly established ARIA.
If the Committee votes against the amendment, people outside will not understand. They will ask, “Why don’t you want a memorandum of understanding?” Everything cannot be done just on trust. We have trust and transparency, but right now ARIA has neither, and it will not be subject to freedom of information rules. It is the wrong approach to say to people outside, “We are going to give £800 million to an organisation that will have no oversight, no FOI and no link to UKRI.” How would that be sensible, especially when—I say this gently—the Government are caught up in sleaze at the moment? That would not help at all. People will say, “You want £800 million to go to whom and to do what?”
Ultimately, we know that men of a certain age get these opportunities, and these men tend to fail upwards. Without the amendment, we are saying that we will allow people to fail upwards and we will not know what they are doing because failure will be part of what ARIA is. We accept that failure can be a part of ARIA, but there needs to be some oversight and connection to the already established UKRI.
Aaron Bell (Newcastle-under-Lyme) (Con)
I thank the hon. Member for her service on the Science and Technology Committee with me, where we have been discussing this issue and the covid crisis over the last year. She made a point about men of a certain age. Last year, it was two women of a certain age—Dido Harding and Kate Bingham—who helped to respond to coronavirus. At the time, the Opposition made various allegations of cronyism, particularly about Kate Bingham, which ought to be withdrawn now that we have seen the success of what can happen when we take away some of the administrative burdens, focus clear-mindedly on a key goal and get it delivered. Making these allegations of sexism when we have had two women leading our response to coronavirus is not appropriate.
Dawn Butler
I thank the hon. Member for his service on the Science and Technology Committee, where we often agree and very often disagree. Of course we praise what goes well, but let us not forget that £14 million was spent on a test and trace system that was scrapped, or that Northern Ireland spent £1 million on a test and trace system that works perfectly well. Let us not forget those facts. Now, we are talking about £800 million.
Professor Pierre Azoulay said,
“It is important not to put those two agencies in competition; they both have a role to play.”—[Official Report, Advanced Research and Invention Agency Bill (Second sitting), 14 April 2021; c. 46]
Both agencies have a role to play; let them work together. Let us work on the premise that it will be a success.
Kirsty Blackman
It is a pleasure to be able to take part in this Bill Committee. Unfortunately, I had to come to London to do so, but it is nice to see some of the faces that I have not seen for a while, other than on little screens. I will start with a bit of fluff: I thank the Clerks for their huge amount of hard work in assisting us with the amendments that we tabled to the Bill. It was really helpful. I am sure they provided the same level of help to everybody else, but we very much appreciate it.
I will speak to amendment 28 and the Opposition’s amendment 9. Our amendment 28 relates to the number of women to be appointed to the board in non-executive positions. There is some lack of flexibility around the positions because two are taken by named individuals. There are also positions that are not appointed by the Secretary of State because they are executive positions. In relation to the non-executive members, it is incredibly important that a significant percentage of women is included among them.
The hon. Member for Broadland said that we should legislate only where we have to. I think in this case it is incredibly important to legislate. We know that only 12% of all engineers are women, and that 25% of 16 to 18-year-old girls would consider becoming an engineer as opposed to 51.9% of boys in that age group. There is an incredibly hard glass ceiling, particularly in science, technology, engineering, and mathematics, and in the kind of roles that will benefit from the funding that ARIA will receive.
We know that young women, and young men, are more likely to take up and aspire to positions if they can see people who look like them in those positions, see people who have succeeded, and know that there is an opportunity to climb the ladder rather than hit the glass ceiling, as people so often do in engineering. This would be a real opportunity for the Government to make it clear that it is incredibly important to have women in these roles. Maths is not just for boys; it is a subject for everybody. When I was doing my advanced higher maths, I was the only girl in the class. Not one other girl had chosen to take advanced higher maths. It was not a small class, it was a class of about 20, and it was because people felt that it was a boys’ subject and girls should not be taking it.
It is important that the Government agree to such an amendment. If the Minister is unwilling to, it would be helpful to hear how the Government plan to increase the gender balance on the board and ensure that women are appointed to these roles. For example, they have said to FTSE companies that they need to have a percentage of women on those boards, but they are not putting that into the legislation in this instance and it is important that they do so.
The Opposition’s amendment 9 in relation to diversity is an incredibly good amendment. In fact, I am quite upset I did not think of it. We have a similar problem with diversity in engineering. Mainly white men are in these positions, and people in school do not look at these positions and think, “I’m going to aspire to do this,” because they do not see people like them in those roles.
My hon. Friend the Member for Aberdeen South and I represent Aberdeen constituencies, where Robert Gordon University and Aberdeen University do a lot around engineering, oil and gas. We have thankfully seen a significant amount of immigration to our city because of the oil and gas. Outside London, the highest percentage of non-UK-born citizens is in Aberdeen. That means a significant number of people from ethnic minority groups are in the engineering profession, but again we have the same issue. It is very unusual to go into a room full of oil and gas executives and for any of them not to be white, and it is fairly unusual for any of them to be women, although we are seeing an increase in those numbers. These amendments would make clear the Government’s intentions and say to organisations such as the FTSE companies that are being asked to have gender balance on their boards, “We are doing this too; we are leading by example”.
Aaron Bell
It is really nice to see the hon. Member back in London. I know it is a burden for SNP Members to come all the way down to the United Kingdom Parliament, but it is lovely to see her in person.
I do not think the Government are doing so badly on diversity, particularly on women. I reassure the hon. Member and the Opposition that, in relation to their amendments, the panel will be selected by Sir Patrick Vallance and other independent advisers. The job that they have done during covid demonstrates how many women we have in positions of scientific importance. We have the women we mentioned earlier: Dame Jenny Harries, Dame Ottoline Leyser, who gave evidence to us, and the Science Minister herself. From the diversity perspective, I think the absolute hero of the press conferences has been Professor Jonathan Van-Tam, who has been a wonderful communicator to the whole country, so I gently say to the hon. Member that I do not think it is as bad as all that and that the amendments are therefore unnecessary.
Kirsty Blackman
I was hoping that I was not being too critical of the Government. I did not intend to say the UK Government are terrible in this regard. I think they have done some good things around gender balance on boards, for example. I would have gone further, but they were a good start. I am not hugely critical of where things are, but I think a kind of stamp on this Bill, to say, “This is the direction we would like to go to”, would be helpful.
This can be done. We have done it in Scotland with the Scottish National Investment Bank. Our amendment is very similar to the proposal in relation to the investment bank—we are doing a huge amount for our public bodies. The investment bank intends to have a significant number of women on it, and it is the same for gender representation on public boards in Scotland more generally. I would very much appreciate it if the Minister let us know whether the Government will take the actions that we have proposed in our amendment. If not, what do they intend to do to ensure that people from diverse backgrounds are included?
Chi Onwurah
I am always grateful for the hon. Gentleman’s interventions, as he makes interesting—if inaccurate, in this case—points. Let me emphasise how it looks from the outside right now: we have all these friends getting contracts because they have the WhatsApp contact of the Secretary of State, and people appointed to be in charge of procurement also work for big producers. I am afraid that the Bill does not contain the necessary safeguards, and it is incumbent on the Committee to ensure that that kind of sleaze does not taint science.
Aaron Bell
One of the reasons why things look that way from the outside is the accusations made by the Opposition. I have an example. The hon. Lady was not here earlier—I completely accept that she had a reason for that—when I referred to Kate Bingham’s appointment, and the £670,000 spent last year on a crucial campaign to get hard-to-reach groups not only to take part in vaccine trials but to take the vaccine. At the time, the Leader of the Opposition said:
“You cannot justify that sort of money being spent”,
and the deputy leader of the Labour party said, “This cronyism stinks.” After what we saw last year, I think it a little rich of the Opposition to go round suggesting that this is the problem, when, as my hon. Friend the Member for South Basildon and East Thurrock said, the Science and Technology Committee, and all the science community, are very engaged. The idea that there would be scientific sleaze is frankly risible.
Advanced Research and Invention Agency Bill (Second sitting)
Aaron Bell Excerpts(3 years ago)
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Aaron Bell (Newcastle-under-Lyme) (Con)
Q
I have two related questions for the panel. First, notwithstanding your responses to Mr Flynn about the need for a mission, which it seems is going to be delivered by the chair and the chief executive of ARIA, how important is it that ARIA remains autonomous and free to pursue whatever its aims are, without interference from Government Ministers?
Secondly, what advice can you give the Committee about the funding methods ARIA might use? The Bill envisages potentially grants, loans, prizes, grant-prize hybrids, investments in companies. Could any of you give us advice on what has worked well in other settings? I would like to start with Dr Highnam, please.
Dr Highnam: On the funding mechanisms, we are an agency in the Department of Defense in the US Government, and we have a number of options available to us, which we make use of depending on the context. Of those that you listed, the only one that we do not do is take investment positions in companies. That is not what we do. You can make a proposal to us for research. You may offer a cost-share, depending on whether it is a major company and very systems-oriented work, all the way to a standard research grant to a university or small business, or a combination of those things.
We have a number of other options in between, including a modified form of commercial contract called an OTA—other transaction authority. They are referred to as OTs and are a very useful tool. DARPA was the first user of that about 20 some years ago. It is a great way of doing business.
To the first question, we are an agency in the US Government. We work in the Executive branch. We work and deal closely with Congress on all manner of things. We have flexibilities as an agency. We have ways of doing business and we are very careful to make sure that the wins that we achieve are well-known, and that we work within those boundaries. Again, the Administrations and Congress over the years have watched and helped DARPA, and have been incredibly supportive. The agency—Regina and I can both say this—keeps delivering as a culture and a mission place, because back in ’57,’58, they got a good recipe, and that culture persists despite 25% or higher personnel turnover. It is part of the Government, with all the benefits. All the—“constraints” is the wrong word—rules that come with that are there for a reason, and DARPA gets the job done.
Aaron Bell
Q
Dr Dugan: I want to attach independence and autonomy to desired goals and outcomes here. The reason the agency sits so independently with respect to its decision making is to find this intersection, and get through the Heilmeier questions, as Peter has talked about. I would often refer to it as figuring out how to get a project inside Pasteur’s quadrant—the idea of having a very specific outcome in mind and having the science and engineering to support the idea that you could achieve it. That is a difficult analysis. That is the creativity that Peter is talking about.
You cannot mandate that from outside the agency. That work happens on the part of the technical teams inside the agency who are assessing the state of the science and the engineering. They are working in service to the mission of the organisation with an understanding of national security goals, and they are finding that intersection. It is the single hardest thing that we do in the agency: forming programmes in that spirit. It is not possible to do that by mandate outside the organisation.
That independence of decision making and the crafting of those programmes in that spirit are coupled, and that is part of the reason why the agency has been so successful over years. I think independence is in service to those outcomes and those breakthrough objectives.
Aaron Bell
Q
Dr Dugan: Much as Peter described, we use a variety of strategies. As you may have seen over the last year, one of the things that we did was to build a health breakthrough network, which now has almost 30 signatories on six continents. The goal there is to speed contracting, so that we can move down to days or weeks what would more typically be months or even as long as a year in contracting. The particular way that we work is through contracts; we do not actually do grants. I also think that this position of not taking equity is important, because the non-profit element of it is part of the differentiation, and we have an entire commercial sector that is good at assessing value and figuring out return on investment. That is not what is pivotal or differentiating for the organisation—neither for Wellcome Leap nor for DARPA.
Aaron Bell
Q
Professor Azoulay: Yes, absolutely. First, I second what my colleagues have said and agree wholeheartedly. I would say that in terms of the modes of investment, the track record of Government agencies taking investment positions in companies is not very good, to put it mildly. It is interesting that it is something that neither ARPA-E nor DARPA actually does.
At the same time, it is important to point out that one way for an ARPA project to transition is to give birth to a start-up company. I know for a fact that in the context of ARPA-E, at least, that is something that is happening on a fairly regular basis, and that is actually tracked as one of the outcomes that one could look like, in addition to maybe much more traditional intermediate outcomes such as scientific papers and patents.
The more general point about autonomy is very important. It is really difficult. It requires forbearance on your part because the kinds of missions and impacts that you are trying to achieve at a very high level are long-term goals fundamentally. I might be overdoing it, but I have a sense that if you start ARIA today, you will not know if it has actually fulfilled its high-level mission for at least 15 years, and that might even be too optimistic.
Amanda Solloway
Q
Adrian Smith: Is that a question for me? It is probably a better question for Felicity. Going back to the earlier comments, a fundamental is to trust long-term commitment from the Government that we are really in this, and we have a plan with clear funding milestones and we will stick to that plan. That is what will give the international community the message that we are in it to be really serious. That serves two purposes: for the narrative of the UK, and as an attractor for brilliant people, whether they are in research or industry around the world, to come and join in this long-term challenge.
Professor McDonald: How do we attract them? The scale of the ambition will be a major attractor to someone, with that executive excitement and experience that they will bring. Large-scale ambition and, as we said earlier, a commitment to the long term to making this work for the UK, in that it is a long-term integrated approach. I suggest that the CEO would have to have experience beyond academia; preferably, as you have suggested, Minister, including industrial experience—that ability to take the journey from concept through to proof of concept, demonstration at scale and deployment. Ultimately, commercial exploitation is key.
I can assure you that the engineering community will be well engaged with this as we help to bring forward individuals of the right stature. Industry expertise and understanding should be a prerequisite for ARIA personnel. An interesting example, which many of our colleagues in the Committee will be familiar with, is the vaccine taskforce: bringing together industrial expertise—traditionally competitive companies large and small within their supply chain—with Government officials and the National Institute for Health Research. That was a fantastic microcosm of large-scale, high-risk and ultimately high-reward outcomes. In many ways, that gives us a precursor for some of the approaches and cultural changes that would be needed to take that forward. For the chief executive or chair of the board, it would be great to have industry-relevant background, a commitment to innovation and excitement about the scale and potential impact of the work that they are taking on.
Felicity Burch: I listened to a number of the earlier sessions, and I was delighted to hear about the focus from so many stakeholders on the need to build a diverse team within ARIA, but also thinking about the diversity of the community that we engage in it. One of my reflections is that we are trying to build something that looks a bit like US DARPA, but we are 60-plus years on now, and the international, national and social picture is completely different. We have an opportunity to build something that really excites, for the next generation of researchers and business people.
If you look at businesses that are trying to achieve those same goals and the practices they put in place to try to recruit brilliant people, you will see that, first and foremost, purpose really matters. Clearly defining the mission of what ARIA is trying to achieve when we get the team in place, making sure that it is something that excites people, having a clear market, and also solving national and international social problems will help encourage really bright, brilliant people to get involved.
Secondly, it starts with the senior team. We are building this team from scratch, and we need to make sure when the team is being recruited that it is diverse in the broadest sense possible—that we see women, ethnic minorities, and those with disabilities represented on the senior team for ARIA to really send a signal that the way we want to innovate in the UK is diverse and that we want to make the most of all our talents around the country.
Aaron Bell
Q
Felicity Burch: One of the really exciting opportunities from ARIA is the potential for joint ventures and engagement. Essentially, my answer here is pretty short. Go ahead and do it, but make sure you engage with business communities a bit further down the line in exactly the design of how those funding mechanisms might work. Different businesses at different stages of their journey will be interested in different funding mechanisms.
Aaron Bell
Q
Adrian Smith: I was not expecting that question. The problem with the kind of mission that we would like to see in ARIA is probably that there are very few precedents. So where we are going to get our prior information from to deploy my wonderful Bayesian analysis, I am not quite sure. Let me use that to point out something else. It will be very interesting to see how we creep up on a mission and why ARIA would be appropriate for that mission. There are two things that you will all know about and I am involved in. I am on the board of the UK Atomic Energy Authority, and fusion, you could say, is the ultimate mission of all time. The mechanism there is with an authority and long-term Government funding in a different model. Solving the problem of batteries you could say would be an absolute fundamental mission, but there we have set up the Faraday Institution. I suppose the question as we go along is: what makes ARIA the right kind of place for what mission, given that we have lots of missions and lots of other ways of trying to solve them?
Aaron Bell
Perhaps we need someone with particular expertise in portfolio management as well, because it seems the risk/reward of these missions is so key. I will leave it there.
Stephen Metcalfe
Q
Felicity Burch: I have not talked to them directly about this in the context of ARIA, but I can reflect on conversations about business and university collaboration more generally. I think our members do see value in seconding people to research teams to learn new skillsets. Likewise, we would love to see more people from university sectors being seconded into businesses. Were there a world-leading agency like ARIA, being able to say, “My people have worked on one of these teams” would be quite a prestigious thing for businesses. I guess the flipside of that is this: how do we make sure that we build ARIA to be that prestigious body that businesses feel comfortable seconding their people to?
I think that time and again we hear businesses saying that that fluidity of people between the business sector, the university sector and the research sector more generally is really important for successful innovation and building an ecosystem. I am sure that if any business pointed to any one individual, they might not want to lose them, but I think this is much more about how we build a really flexible and really brilliant innovation ecosystem, and to that extent I think that businesses would be really happy to see those moves.
Advanced Research and Invention Agency Bill (First sitting)
Aaron Bell Excerpts(3 years ago)
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Dawn Butler
Q
Professor Leyser: At the moment, most of our funding opportunities require people to apply for a research grant. People coding at home have a hard time applying for research grants, because it is a system with financial checks and so on. Applying for a research grant is a non-trivial activity, whereas winning a research prize, where there is no application process and you just get on with it, is doable. We are very interested in that wider range of funding mechanisms and in how we can learn from the work of Nesta, and, in the future, the work of ARIA to reach a wider range of people. But at the moment, we work on a largely open-call process; it is really effective because it is completely open, but it none the less creates barriers for people who do not have the infrastructure and administrative support to help them submit those kinds of grant applications.
Aaron Bell (Newcastle-under-Lyme) (Con)
Q
Following on from Dame Ottoline’s answer to Ms Butler, obviously, the purpose is to expand ARIA to cover areas that are not already well covered, but it also seems to be to try to pick up the pace of research and innovation. We have seen that that is possible through crises such as coronavirus. Can you explain how the pace can be picked up by some of the things that you do at Nesta and whether that would carry across to what ARIA is going to do?
Tris Dyson: I think it helps to pick things, to say, “We want to achieve x within the next two or three years” and to give people a degree of certainty about what outcomes you are going to fund and why. It happens naturally, anyway. Coronavirus is a crisis that has created a rush for R&D. It has also shown, on the drug development or vaccine side, what a combination of funding and relatively agile thinking, including from regulators in conjunction, can do in order to improve outcomes and achieve things. A challenge prize creates that in a positive sense; it essentially says, “We are going to solve for x and award funding on that basis.” That helps speed things up.
Related to the previous question, with a grant model approach, you are funding inputs and costs primarily. People put in a proposal for half a million pounds and say, “We are going to do x and this is what the associated costs are going to be.” Inherently, your risk threshold is going to be different, because you are anticipating whether this an investment that means they are going to be able to spend that money well and achieve x. You are going to look at track records, their financial history and their institutional strengths. You are going to make a judgment on whether to fund A versus B. That lends itself more towards funding the usual suspects than an outcome-based model, where you say, “It is not important to us who solves for x as long as somebody does.” In reality, you tend to blend these models. It is not like there is a pure challenge prize model that does not involve other types of funding mechanisms as well.
Aaron Bell
Understood, thank you. I had better hand on, as we are running out of time.
Virginia Crosbie (Ynys Môn) (Con)
Q
The Chair
I think we are going to hear your question, Aaron, but we will not get the reply.
Aaron Bell
Q
Professor Bond: Sorry, when you say “new people”—
Aaron Bell
Q
Professor Bond: Yes, I think so.
The Chair
Perfect. We have come to the end of the time allocated for the Committee to ask questions, and indeed for this morning’s sitting. I thank our witnesses on behalf of the Committee for their evidence. Professor James Wilsdon from the University of Sheffield, Professor Mariana Mazzucato from University College London and Professor Philip Bond from the University of Manchester, thank you very much indeed.
Ordered, That further consideration be now adjourned. —(Michael Tomlinson.)
Advanced Research and Invention Agency Bill
Aaron Bell ExcerptsTuesday 23rd March 2021
(3 years, 1 month ago)
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The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)
I beg to move, That the Bill be now read a Second time.
I should like to start my remarks by drawing attention to the much-celebrated work of Edward Jenner. I am sure that many of us appreciate his work. He is often referred to as the father of immunology; he was a British physician who created the world’s first vaccine. As I am sure all hon. Members know, he was an apprentice to a surgeon in Chipping Sodbury in the constituency of my hon. Friend the Member for Thornbury and Yate (Luke Hall). Mr Jenner essentially discovered immunisation. When we consider the coronavirus that has devasted our country and the world this year and last year, Jenner’s work takes on a particular resonance.
Thanks to the UK’s historic funding for research and the groundbreaking action of scientists at Oxford University, a British vaccine is once again helping us to return to a more normal life. It has shown us all the incredible benefits that breakthrough science and technology can provide. Building on our country’s proud history of wonderful inventions, I was particularly pleased to announce the creation of the Advanced Research and Invention Agency last month. I am sure that it will play a unique and exciting role in the UK’s research and development system.
The new agency will be characterised by a sole focus on funding high-risk, high-reward research. It will have strategic and cultural autonomy. It will invest in the judgment of able people, and it will also enjoy flexibility and a wide degree of operational freedom. I have spoken with many of our leading scientists, researchers and innovators and their message has been absolutely clear. I am convinced that these features will make ARIA succeed.
The creation of ARIA is part of a concerted action by this Government to cement the UK’s position as a science superpower. With £800 million committed to ARIA by 2024-25, the new agency will contribute extremely effectively to our R&D ecosystem. As set out in our policy statement published only last week, we have to give ARIA significant powers and freedoms and a mandate to be bold. To deliver that, we have introduced the ARIA Bill.
The Bill recognises that funding transformational long-term science requires patience and a high risk appetite. The Bill explicitly states that ARIA may give weight to the potential of significant benefits when funding research that carries a high risk of failure. This freedom to fail is fundamental to ARIA’s model, and the provision will empower its leaders to make ambitious research and funding decisions. When we look back in history, to the 1950s and 1960s, we see that with this approach a US agency called the Advanced Research Projects Agency developed GPS as well as the precursor to the internet.
The Bill will also signal a 10-year grace period before the power to dissolve the agency can be exercised. The agency will be focused exclusively, as I have said, on high-risk research. It requires patience and a laser-like focus as necessary conditions for success.
Aaron Bell (Newcastle-under-Lyme) (Con)
My right hon. Friend is making a strong case and refers to the work of the Vaccine Taskforce. In the past year, we have seen astonishing science conducted at breakneck speed because we have been in a crisis. Does he agree that for ARIA to work we need somehow to harness that sense of crisis and continue to use it in a normal period to get this sort of high-risk and high-reward research out and developed in Britain?
Kwasi Kwarteng
The circumstances in which we have developed the Vaccine Taskforce have been really unfortunate, with this terrible pandemic, but the very thin silver lining around the cloud has been this remarkable vaccine rollout. My hon. Friend is right that ARIA needs to learn from what we have learned collectively from the vaccine rollout.
Our objective is for ARIA to fund research in new and innovative ways. The Bill provides the agency with significant powers that are necessary for it to perform its function.
Stephen Flynn
I reject the suggestion that climate change is a narrow focus given that climate change covers a whole host of areas. I see the Secretary of State nodding along with that. Presumably he is in agreement having previously been the Minister of State for Business, Energy and Clean Growth. When we look at this, we need to bear in mind DARPA, which has been talked about at length by others. DARPA had that clear focus, and that clear focus has allowed it to excel, in terms of GPS, the internet and the like. We should seek to replicate that, with climate change at the forefront.
It is regrettable that the Government have not simply made that suggestion, but it is not surprising, because, just last week, they sought to invest billions of pounds in new nuclear weapons. They could have said, “Here is £800 million that we are going to invest in trying to save the planet rather than destroy it.” In relation to the mission, therefore, the Secretary of State still has a great deal of work to do.
The second key area that I would like to pick up on is in relation to the wider leadership on the Bill. Although that has been referred to already, we do need to have clarity about how that process will work. What will be its outcome? Who will be the leader, or the leadership team, that takes this forward? There have been suggestions, indeed by Dominic Cummings himself, in relation to eminent scientists—scientists who, unfortunately, have been excluded from their professional role given the comments that have been made in relation to eugenics and race. Although I appreciate that the Secretary of State may not be in a position to say what the qualifying criteria will be for someone who takes on this role, I expect him to say what the disqualifying criteria will be. I certainly expect that someone who projects views of eugenics would fit into that disqualification category.
My third point relates to resources and accountability. I am very conscious of the fact that much of what I am saying is a repetition of what has already been said, but that is often true of what is said by everyone in this House, and I am sure that there will be more of that to come. I cannot get my head around this notion that we can throw away freedom of information and public contract processes in order to achieve something. I may have incorrectly picked up the hon. Member for North East Bedfordshire (Richard Fuller) on that point he made earlier about being inspired to do that. I do not see it as inspired. I do not think that the public will see it as inspired. They certainly will not see it as inspired coming, as it does, from a Conservative Government, given what we have seen over a number of months in relation to cronyism and the concerns that we all have about that. When it comes to public money, public trust is of paramount importance. Frankly, the Government are not being as clear, transparent and open as they should be about the Bill.
Aaron Bell (Newcastle-under-Lyme) (Con)
Is the hon. Gentleman aware that UK Research and Innovation receives about 300 FOI requests a year? A small and nimble organisation such as ARIA would be completely buried under the weight of that many FOI requests. That is why we are taking the approach that we are here.
Stephen Flynn
That is an interesting point, but it appears that the hon. Gentleman was not listening to what was said earlier in relation to DARPA. I think it was 40 FOI requests for DARPA, which is, obviously, a much larger organisation than ARIA will ever be. It is one that will perhaps attract a lot more focus, and yet there were just 40 FOI requests. If that is the strength of the argument that Government Back Benchers will put up in relation to this, then, frankly, it will fall short in the eyes of the public. The reality is that we are talking about £800 million of public money. There will of course be a tolerance of failure. Everyone accepts that there must be a tolerance of failure, but there needs to be openness and transparency around the process, and, quite frankly, at this moment in time, there is not. I do not have confidence that the Government will be able to deliver on that front.
Finally, I just want to touch on what is perhaps the most important aspect of this Bill, which is, unsurprisingly, in the Scottish context. A total of £800 million will be flowing towards this project. How much of that is coming to Scotland? Will it be Barnettised? Will there be consequentials from it? Is this going to be a UK-wide project? If so, why? Why are we not investing in Scotland? Are we trying to undermine the Scottish Parliament once again? We have seen it with the United Kingdom Internal Market Act, the levelling-up fund and the shared prosperity fund; are we now seeing it with ARIA, too?
Why do the Government not seek to invest in the Scottish Parliament? Why do they not seek to allow the Scottish Government to put the money into the Scottish National Investment Bank, which I have already mentioned, so that Scotland can create the scientific achievements that it wants to use to shape our own agenda, particularly—I repeat—in relation to climate change? Why have none of those things come forward? It appears as though Scotland does not exist in the context of this Bill. The Government seek to talk up the Union; the way to solidify the Union is not to trample continuously over the Scottish Parliament, because the people of Scotland are well aware of what is going on in that regard.
Let me conclude by making one more important point. We all have concerns about the Bill. It has broad support, but we have concerns that ultimately it will become another London-centric project, and not only that but one that gets hijacked by the right wing of the Tory party for its own ends. That is not something we are willing to support.
Aaron Bell (Newcastle-under-Lyme) (Con)
It is a pleasure to follow my hon. Friend the Member for Warrington South (Andy Carter), and a particular pleasure to do so in person. He and I have been hanging around the same Zoom waiting rooms for much of the winter, and it is nice to be back in the Chamber.
As my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) said at the beginning of his speech, today is the national day of reflection as we look back over the past year and remember our collective loss and, for many people, including my hon. Friend, our personal losses, but also look forward to a brighter future. That brighter future is because of science. In the past year, it has been a privilege to serve on the Select Committee on Science and Technology, together with the Chair, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), who spoke earlier, and other Members who have spoken in the debate—my hon. Friends the Members for Bolton North East (Mark Logan) and for Arundel and South Downs, and the hon. Member for Glasgow North West (Carol Monaghan). I praise the Clerks of the Committee for all the work they have done. We have had a number of sessions on covid at very short notice and have also considered ARIA—or ARPA as we knew it at the time, and I have in my hand our report which was published on 12 February.
Looking at the past year and the work that the Science and Technology Committee has done, there is a real read-across from what happened with covid to ARIA. As I said in my intervention on the Secretary of State, at its best ARIA will learn from what we have done on covid in the past year. If covid has a silver lining, it is what it has enabled us to do in the science sphere, allowing us to throw off some of the shackles related to funding, innovation and things such as mRNA vaccines.
The Government have not exactly followed the Committee’s recommendations, and that is fair enough, but the Secretary of State was very forthcoming when he gave evidence to us last week about the reasons for that. As my right hon. Friend the Chair said, it is easy to dissipate £800 million. I know that it sounds like a lot of money, but in the context of our overall science budget it is not quite all that much. The Committee recommended that there be a client, but if there is not to be one, it is important that there is focus. If we are going to have focus, the leadership of ARIA will be key. I hope that our Committee can be involved. There has not been an Order in Council because ARIA does not yet exist, so there is no pre-appointment hearing, but I hope that our Committee can speak with the prospective chair and chief exec of ARIA.
Let me turn to some of the detail. I am pleased to see the range of innovative funding envisaged for ARIA, particularly through prizes, which can leverage huge amounts of private sector investment. We have this target of 2.4% of GDP for R&D. It is all very well spending more Government money, but the key is getting more private sector investment to get us to that 2.4% target. Any ways that we can leverage private sector investment through ARIA would be hugely welcome. We are also looking into grant-prize hybrids, seed grants for very early stage developers and equity stakes. As many hon. Members have said, including my hon. Friend the Member for North East Bedfordshire (Richard Fuller), we need to be better at capturing the commercial benefit of the world-class science that takes place in this country, and perhaps equity stakes through ARIA can be a part of that.
Our Committee took evidence from a number of organisations in our inquiry into what has now become ARIA. We heard from organisations that had worked well, such as DARPA, and some that had not worked quite so well. I wonder whether the sense of crisis to which I referred earlier is necessary for these sorts of things to work. In world war two, the Manhattan project obviously led to the atomic bomb. The cold war led to DARPA and the need for the United States to secure its own defence. What we have seen in the last year with covid has led to so many innovations in vaccines, therapeutics and beyond that will last well beyond this period; as was said earlier, these innovations may ultimately save more lives than have been lost, because of the speed of their development.
If ARIA is to work well, it needs somehow to harness that sense of crisis, and the breakthrough, breakneck response to crisis and existential threat. It needs the space to do so, autonomy from the Government and the freedom to fail. Science often learns more from what does not work than what does.
Before I draw my remarks to a conclusion, it would be remiss of me not to make my own pitch. Keele University in the wonderful constituency of Newcastle-under-Lyme is a fabulous university. It is a university enterprise zone and part of the Energy Research Accelerator, which links up multiple universities and private sector organisations across the west midlands. We also have a fabulous science and innovation park. We are a proud host of Cobra Biologics, one of the manufacturers of the amazing Oxford-AstraZeneca vaccine that is doing so much good in this country. It is not doing so much good elsewhere because of some rather foolish remarks by regulators, but we are very proud of our vaccine; if other countries do not want it, we will have it.
ARIA is a great idea. Like many of its would-be projects, it has the potential to be bold and transformative itself. But it also has the potential to fail, or at least not to work for as long as we might hope. I welcome the 10 years that we have set out in the Bill to give it a chance to work. Many iconoclastic structures end up being captured and overrun by bureaucracy; we must be really careful in that regard. As the Bill progresses through this House and the other place, I hope that the Government will be very firm in resisting all those who would strangle it at birth.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the final Back-Bench speaker, Richard Holden.
Budget Resolutions and Economic Situation
Aaron Bell Excerpts(3 years, 2 months ago)
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Aaron Bell (Newcastle-under-Lyme) (Con)
It is a pleasure to follow the hon. Member for Warrington North (Charlotte Nichols). It seems like only yesterday that she and I went on a tour with the Doorkeepers when we first arrived here.
It is a brilliant Budget by the Chancellor, but I know that my constituents will want to know exactly what’s in it for them, so let’s get quickly to the point there: furlough has been extended—it has supported more than 10,000 people in Newcastle-under-Lyme; the self-employed will have more grants and the net has been cast wider; there is a universal credit extension for a further six months and equivalent support of £500 for working tax credits; there are business restart grants and recovery loans; and, importantly for a red wall town such as mine, there are freezes to alcohol duty and fuel duty. The latter is particularly important as we lack public transport in Newcastle-under-Lyme; that is a very welcome thing for a town.
I want to talk about towns because there has been a lot of talk about them recently and I feel that the Labour party has missed the boat on towns. I wish to quote at some length:
“For far too long the ambitions, needs and values of nine million people in towns across Britain have not been heard.
Our economic model treats cities as engines of growth, which at best drag surrounding towns along in their wake, causing life to become harder, less secure and less hopeful for too many people in towns in recent decades.
Our political system is blind to the values and experiences of people who live in our towns, wrongly treating cities as a proxy for the national opinion.
After the EU Referendum starkly exposed the growing gulf between towns and cities, it is clear that this is no longer sustainable.”
Those are brilliant words. They are the words of the shadow Foreign Secretary, the hon. Member for Wigan (Lisa Nandy), when she launched the Centre For Towns in December 2017. I have read all that it had to say. It is a centre-left think tank, but I agree with an awful lot of what it said. I am really proud that the previous Government took that agenda into the general election and started thinking about how we can deliver for left-behind towns—communities such as Newcastle-under-Lyme and others in north Staffordshire.
Locally we have seen so much investment. We have had £11 million already through the future high streets fund, and we have a £25 million towns fund bid in with the Ministry at the moment. I congratulate my hon. Friend and neighbour the Member for Stoke-on-Trent North (Jonathan Gullis) on the £16.9 million success of Kidsgrove’s town deal bid, which will have knock-on effects for those living in the north of my constituency. I am pleased that even after all his largesse the Chancellor found that Newcastle-under-Lyme could also be a priority area for the UK community renewal fund, which will enable us to bid for a further £3 million, supporting skills, local businesses, communities and place—that is so important—and supporting people into employment. So I make no apology for what the Chancellor has done for the towns agenda. It is an agenda that has been neglected for far too long. The Labour party recognised that, through the hon. Member for Wigan, a few years ago. It is a shame it did not act on it, and that is why what happened in the 2019 election happened.
National Security and Investment Bill
Aaron Bell ExcerptsTuesday 17th November 2020
(3 years, 5 months ago)
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Alok Sharma
I will go on to the detail of that particular issue, but as the right hon. Gentleman identified, the Bill looks at assets and intellectual property. On the point that he raised about the size of transactions, as he knows, under the 2002 Act, apart from some limited exceptions, businesses being acquired must have a UK turnover of over £70 million or, indeed, the merger must meet a minimum 25% market threshold. This means that acquisitions of smaller but technologically sensitive companies are not covered.
The Government have been clear for a number of years about our intention to introduce new powers. Many of our international allies, including our Five Eyes partners, have also acted to update their legal frameworks to address national security risks. We, in turn, are seeking to update our legislation in a proportionate manner to ensure that we have more security for British businesses and people from hostile actors targeting our country; more certainty for businesses and quicker, slicker screening processes as we remain open to trade and recover from covid-19; and a regime that is in line with our allies, meaning that investors will be familiar with this approach.
Let me turn to some of the specifics of the Bill. Part 1, chapter 1 introduces a call-in power that the Government may use in relation to a trigger event across the economy that they reasonably suspect has given rise to or may give rise to a risk to national security. Trigger events include acquisitions of certain shares or voting rights in a qualifying entity, and the acquisition of material influence over such an entity. As the right hon. Gentleman pointed out, it will be possible for the first time to call in the acquisition of a right or interest in a qualifying asset, including intellectual property, where such an acquisition would enable the acquirer to use the asset or control or direct how it is used. That is similar to the US and other countries’ regimes.
The call-in approach is consistent with the 2002 Act, but importantly there are no minimum thresholds for the size of the business or asset to be acquired. That means that sensitive businesses and assets that may previously have slipped under the minimum size threshold will no longer do so. That will close the back door into the United Kingdom that hostile actors could exploit.
However, it is important to reassure the investment community that the Government expect to use these powers sparingly. We estimate that less than 1% of transactions in any given year will be subject to call-in. For transactions that fall outside the mandatory requirement of the regime, the Government will be able to call in a transaction within a period of five years of a trigger event having taken place where they have not been notified. When the Government become aware of a trigger event having taken place, they will have six months to issue the call-in notice. That five-year period is, again, consistent with regimes in Germany and France. The Bill requires that the Government publish a statement of policy intent explaining how they expect to use the power to issue a call-in notice.
Should the Bill become an Act, the Government’s call-in powers will apply from the date of introduction and will cover transactions that complete during its passage. That will ensure that hostile actors do not rush through the completion of transactions between the introduction of the Bill and Royal Assent as a means to avoid scrutiny under this legislation. My Department has already set up an investment security unit to field enquiries from businesses and investors about transactions under the new regime.
Under the National Security and Investment Bill, there will be no requirement to publish call-ins. That is of course in contrast to the public interest intervention notices under the 2002 Act.
Aaron Bell (Newcastle-under-Lyme) (Con)
I welcome what the Secretary of State just said about the call-in power. Will he confirm that, as a result of the measures in the Bill, most transactions can take place within 30 days, which means that the UK will remain a venue, and be an even better one, for foreign direct investment as we seek to rebuild our economy following coronavirus?
Alok Sharma
My hon. Friend makes a very important point. We are giving certainty, and we expect that most call-in decisions will be decided upon within 30 days. I said that we expect that less than 1% of all transactions in any given year will be called in, and only about 10% of those will then face detailed scrutiny.
Edward Miliband
I have such an array of options. I think the hon. Member for Newcastle-under-Lyme (Aaron Bell) was first.
Aaron Bell
I thank the right hon. Gentleman for giving way. He is perhaps proposing an industrial strategy Bill, rather than a national security Bill, but on innovation and science and technology, does he not worry about the chilling effect of what he is proposing? Individuals who may be setting up a scientific or technology company might prefer now to do that in the United States, where they have every option of going to California and setting up the company in the first place, rather than setting up in the UK, because they might fear that he, as a potential future Secretary of State, as he indicated earlier, might prevent them from cashing in on what they have done?
Edward Miliband
The hon. Gentleman makes the point that the United States has exactly the regime that I am talking about and does indeed have those wide powers of intervention, so the notion that people are going to set up in the United States rather than Britain, when they have much stronger powers than us, does not hold water.
Aaron Bell (Newcastle-under-Lyme) (Con)
It is a pleasure to follow my hon. Friend the Member for Rother Valley (Alexander Stafford), and indeed colleagues around the House, as the last Back-Bench speaker in this debate.
This has been a very thoughtful debate with lots of interesting suggestions for the Minister from all sides. I thank the Secretary of State for his opening remarks and the Minister for his engagement with these issues. He met the Science and Technology Committee last week to talk through the Bill. It was obviously time well spent, because three of my colleagues from the Committee have already spoken, and now he has me as well—so well done to the Minister.
It is tempting, from a science and technology perspective, to seek to widen the scope of the Bill to attempt, for example, to protect start-ups in these fields, which are very innovative. Ultimately, however, I come down in the same place as the Chairman of the Committee, my right hon. Friend the Member for Tunbridge Wells (Greg Clark). Countries that try to legislate themselves into self-sufficiency instead end up self-satisfied, and that would then strangle the very innovation that we all seek and want to see in our businesses in the spheres of science and technology. I am therefore pleased that the Bill is drawn narrowly.
The Bill sits at the nexus of our domestic economy and our international relations. If we were to widen its scope beyond the fairly narrow way it has been drawn, that could have unintended consequences for both those things. We heard the excellent and witty speech from the former Leader of the Opposition, the right hon. Member for Doncaster North (Edward Miliband), who clearly has lots of ambitions in the area of industrial strategy. I look forward to him putting that into the next Labour manifesto, perhaps, and that is where we can discuss these things, but this Bill is not the place to try to detail all the elements, whether it is about confectionery companies, union control or any of those sorts of things. This needs to be a narrow Bill so that we do not move into too many unintended consequences.
On international relations, as my hon. Friend the Member for Wantage (David Johnston) said, we need to move with the times and in response to events. The exact nature of the threats we face evolves and changes over time. I trust my right hon. Friends the Foreign Secretary and the Prime Minister, and we need to give them the leeway to make judgments about national security in the face of what the international situation is at the time. This Bill is not just for the next five years. It is not just for the threat that we clearly face from the expansionist tendencies of Russia and China. It needs to stand the test of time, and by drawing it narrowly, we give it a better chance of doing that.
I support the Bill as it is, although many colleagues around the Chamber have made thoughtful suggestions for amendments, and I know the Minister will speak to those when he winds up. First, it gives us more security. Others in this place are far more expert on national security than I am, but it is clear that the developments we have seen over the past decade have meant that we have had to re-evaluate our relations with potentially hostile actors, such as China. My right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) spoke very firmly about that. This Bill gives us a proportionate defence against hostile actors who are targeting sensitive UK assets, and in ever more novel and complex ways that we could not have imagined in 2002 when the Enterprise Act on which our current defences rest was passed. It is time to update those powers, and I hope we can do so in a way that will stand the test of time. It is also right that we update those powers with a turnover requirement, because, again to echo my hon. Friend the Member for Wantage, national security is no respecter of the size of a company or where it is in terms of growth. Sometimes very nascent companies could have a significant impact on our national security in future.
The Bill provides more certainty for businesses and a regime that prioritises swift resolution of referrals and call-ins. That is absolutely, fundamentally important. My hon. Friend the Member for Arundel and South Downs (Andrew Griffith) was very much to the point on this. Businesses deserve certainty. If the answer is no on national security grounds, that is fair enough, but we cannot leave things in limbo. One might think that the five-year period does leave businesses in limbo to some extent. I acknowledge my hon. Friend’s point that most lawyers will probably suggest that they notify the Minister, and so, as he said, publishing statistics on notifications would be welcome. We need to maintain the UK as a premier foreign direct investment destination, because it is so important to our future, to our recovery from covid, to meeting our net zero targets—I congratulate my hon. Friend the Member for Arundel and South Downs on his appointment on that—and to levelling up. It is particularly relevant to me, in Newcastle-under-Lyme in north Staffordshire, that we continue to attract foreign direct investment so that we can continue to regrow our national economy and our local economies in areas that have not had much investment in the past couple of decades.
To sum up, this Bill will give us a regime in line with some of our strongest allies in the world. It will protect our national security and ensure that Britain remains fully open for business, and for all those reasons, I will be supporting it on Second Reading.