Advanced Research and Invention Agency Bill

Amanda Solloway Excerpts

Report stage & 3rd reading
Monday 7th June 2021 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

It is a pleasure to be here on this special occasion, and not just because, as my hon. Friend the Member for Guildford (Angela Richardson) pointed out, it was a very special birthday yesterday—40. [Laughter.]

I thank all right hon. and hon. Members who have tabled amendments and new clauses, and who have contributed today.

The UK has a world-class science system, and a proud history of research and invention. Today, in our continuing fight against coronavirus, the importance of those skills has never been more apparent. What is it that makes ARIA so special? It is the fact that we are strengthening our science system, enhancing our capabilities and finding a new level of ambition. That means that it will be a small, agile organisation with autonomy from Government and unique powers that equip it to support groundbreaking ideas, with the potential to profoundly change all our lives for the better.

The Bill brings forward a bold and ambitious policy that seeks to deliver the transformational benefits of high-risk R&D for our economy and society. I have spoken to many colleagues who share my genuine excitement about the possibilities that ARIA could bring. We have heard on the Floor of the House and in every previous debate that all parties support the principle of ARIA and what it will try to achieve. I am glad that today we are able to give ARIA the focus that it deserves.

A focus of today’s debate that has been raised by the hon. Members for Newcastle upon Tyne Central (Chi Onwurah), for Cambridge (Daniel Zeichner) and for Aberdeen North (Kirsty Blackman), among others, has been giving ARIA a primary research topic, through new clauses 2 and 3, and amendments 1 and 12. Given the challenges that we face today, those amendments understandably focus on climate change and health. Nobody in the House should have any concerns about the Government’s credentials on tackling climate change. We are proud to be the greenest Government ever. The Prime Minister’s 10-point plan and our COP26 presidency, to which the hon. Member for Aberdeen South (Stephen Flynn) referred, are demonstrating that at home and abroad, the UK is leading efforts to accelerate action on climate change.

Without doubt, the covid pandemic has clearly illustrated the critical role that R&D plays in the health and wellbeing of our population. Our vaccine roll-out is the envy of the world. The Government already invest around £2 billion annually in health and care research in the UK. It is therefore right that such priorities are taken forward by Government Departments and agencies, with clear direction and involvement from Ministers. That includes the important role that UKRI plays in delivering Government priorities for R&D. We do not want to duplicate those responsibilities.

Instead, as many colleagues have put it much better than I could, ARIA must make its own distinct contribution to be effective. That means being an organisation led by brilliant people with strategic autonomy—not directed by Ministers. The continued chopping and changing of ARIA’s mission set out in amendment 12 would hamper ARIA’s ability to commit to long-term programmes.

New clause 3 also seeks to impose obligations on ARIA regarding the transition to net zero. ARIA is covered by the Government’s existing net zero commitments and will be required to make information available through the Environmental Information Regulations 2004, which were mentioned by the hon. Member for Hammersmith (Andy Slaughter).

I turn to the contribution of the hon. Member for Oxford West and Abingdon (Layla Moran) on the role of Parliament. Amendments 3 to 6 would require the proposed chair and CEO of ARIA to be approved by both Houses of Parliament. Amendment 11 would require the Commons Science and Technology Committee to approve appointments by the Secretary of State and the remuneration of the appointees. I am extremely pleased that the recruitment campaign for the CEO was launched on 1 June and that we will launch the campaign for the chair on 5 July. All applications will be reviewed by an outstanding expert panel, which will include the Government’s chief scientific adviser, Sir Patrick Vallance. The Government’s guidance sets out that the ultimate responsibility for appointments rests with Ministers who are accountable to Parliament, as is the case with UKRI. There is no precedent for requiring the approval of both Houses for appointments.

I am grateful for the contribution that the Science and Technology Committee, chaired by my right hon. Friend the Member for Tunbridge Wells (Greg Clark), has made on this issue. However, I guarantee that this is an open, fair and robust recruitment process, and it is completely appropriate to find the right people to make ARIA a success. Amendment 9 would require ARIA to provide the Science and Technology Committee with the information it requests. The Osmotherly rules provide guidance on how Government bodies should interact with Select Committees, and they are clear that such bodies should be as helpful as possible in providing accurate, truthful and full information when giving evidence. I believe that that is sufficient to ensure a co-operative and constructive relationship between ARIA and the relevant Committees.

Amendment 10 would require the Secretary of State to consult the Committee before dissolving ARIA. Clause 8 already sets out the broad requirement on the Secretary of State to consult any persons they consider appropriate, and I am sure they will always consider it appropriate to consult the Science and Technology Committee about changes to the R&D landscape. The Secretary of State’s power to dissolve ARIA is subject to the draft affirmative procedure, which will ensure that Parliament has the opportunity to debate that decision.

Amendments 7 and 8 tabled by the hon. Member for Aberdeen South and amendment 14 tabled by the hon. Member for Newcastle upon Tyne Central seek to remove the exemption from the public contracts regulations and to subject ARIA to the Freedom of Information Act 2000. We have covered procurement extensively before, and I will reiterate why the exemption is so important. There are three key points.

First, ARIA is expected to commission and contract others to conduct research in pursuit of its ambitious goals. Often, ARIA will procure research services. That commissioning and contracting is a fundamentally different way of funding R&D to traditional grant making, and procurement rules do not apply. Secondly, this way of funding research is core to DARPA’s approach—the successful US model from which we learned when designing ARIA. As we heard in Committee, DARPA benefits from what is described as “other transaction authority”, which offers flexibility outside standard US Government contracting standards. By taking that innovative new funding approach that is so fundamental to its objectives, ARIA will benefit from similar flexibilities.

Let me turn to amendments 8 and 14. ARIA is about creating a certain culture of funding and groundbreaking research, as I heard time and again throughout my engagement with the R&D community. As my hon. Friend the Member for North East Bedfordshire (Richard Fuller) put it so eloquently, that kind of culture is difficult to achieve within all the rules that would usually apply to public bodies. We have thought carefully about alternative ways to ensure that high standards of conduct are upheld within this unique context.

The Bill requires ARIA to submit an annual report and statement of accounts, which will be laid before Parliament. ARIA will be audited by the National Audit Office and will be subject to value-for-money assessments. ARIA will interact with Select Committees in the usual way, and it will draw up a framework document detailing its relationship with BEIS. There will be further reporting requirements, such as the details of what is published in the annual report. Together, those provisions will ensure that the public are informed of ARIA’s activities and where it spends its money. Although the Freedom of Information Act 2000 allows for exemptions in certain circumstances, the request must still be processed, and that administration runs contrary to the lean and agile operation of ARIA.

I turn to amendment 2 on conflicts of interest. Schedule 1 allows the Secretary of State to make regulations

“about the procedures to be adopted for dealing with conflicts of interest”.

The framework document between BEIS and ARIA will commit ARIA to the code of conduct for board members of public bodies, which includes the obligation to publicly declare any private financial or non-financial interests that may or may not be perceived to conflict with one’s public duty. This principle-led, non-legislative approach is appropriate. It is the standard approach taken by many other arm’s length bodies, including UKRI, and I have no reason to believe that it is inadequate here. In addition, we have the existing reserve power in schedule 1, should it ever prove necessary.

On the issue of human rights, I recognise the intent behind new clause 1. Human rights are already protected in law in the UK through the Human Rights Act 1998, and ARIA will be subject to public authority obligations under that Act. I therefore reassure the hon. Member for Aberdeen South that ARIA will operate in a way that is compatible with the convention on human rights. It would be unlawful for it not to do so under existing legislation.

Amendment 13 would require details of ARIA’s geographical impact to be included in its annual report. I believe that it is incredibly important that ARIA’s funding benefits those who are not always reached by the current system. That is the Government’s policy and priority, as well as a priority for me personally. The R&D place strategy, due to be published this summer, will set out how R&D will contribute to our levelling-up ambitions. Details of ARIA’s operation will be set out more fully in a future framework document, and that is the appropriate place to stipulate the contents of ARIA’s annual report, including geographical information, rather than legislation.

[Jim Shannon]

The Minister is being generous with her time tonight. In my contribution, I was very keen, as were others, to ensure that all the levelling-up that the Minister refers to will happen in the regions as well—in other words, that Northern Ireland will get its share. It is important, as part of the United Kingdom of Great Britain and Northern Ireland, that we all benefit. May I seek her assurance that that will be the case?

[Amanda Solloway]

Of course, I give my assurance that we will issue the place strategy shortly, which will indicate all of this.

I am very grateful for the contributions that right hon. and hon. Members have made today. The interest in the passage of the Bill in the House and in the R&D community is testament to the important role that ARIA will play in our future R&D landscape, creating a space in the system that is free to fund groundbreaking science in innovative ways, independent from ongoing Government intervention.

This is an incredibly significant moment, because the opportunity that ARIA affords us is truly limitless. By unlocking a new level of ambition, and by enabling truly bold and adventurous ideas to flourish, ARIA will allow us to take a huge leap into the future. Yes, this will mean embracing the unknowns that come from ARIA being free from Government control, but we should make that leap confidently, knowing that the brilliant people that ARIA will fund will change the world in ways that none of us in this Chamber would dare to imagine today. This is therefore a truly exciting time for all of us here in the Chamber—for ourselves, for our children and for our grandchildren—and I feel particularly excited for my young granddaughter, who will feel the benefits of the major breakthroughs that we will unlock through this Bill. I am sure that this opportunity is recognised by all hon. Members.

I hope that I have demonstrated the reasons that I cannot accept the new clauses and amendments that have been tabled, and I hope that Members will agree not to press them.

[Stephen Flynn]

Madam Deputy Speaker, you will be glad to know that my final remarks will be brief, particularly because although we were expecting a rebellion tonight, I did not expect it in any way, shape or form to relate to any of the amendments that I proposed, which is disappointing. Maybe next time—we can only live in hope.

There are two clear and fundamental issues to do with the Bill on which we disagree with Government Members: where they are passionately and vehemently against public scrutiny, and where they are passionately and vehemently against ARIA having a mission. I believe the lack of a mission is a missed opportunity, and I am deeply concerned to hear that public scrutiny in the shape of an FOI request is regarded as an impediment to a public organisation. That should strike fear into all of us about what public money is to be spent on, not just now but in the future.

With your indulgence, Madam Deputy Speaker, I beg to ask leave to withdraw the motion on new clause 1, but I wish to press amendment 1, which stands in my name and that of my hon. Friend the Member for Aberdeen North (Kirsty Blackman), to a vote.

Motion, by leave, withdrawn.

Amendment proposed: 1, in clause 2, page 1, line 7, at end insert—

“(A1) ARIA’s primary mission will be to support the development of technologies and research that support the UK’s transition to net zero carbon emissions or reduce the harmful effects of climate change.”—(Stephen Flynn.)

This amendment sets the primary mission for ARIA to support the development of technologies and research that support the UK’s transition to net zero carbon emissions or reduce the harmful effects of climate change.

Question put, that the amendment be made.

Oral Answers to Questions

Amanda Solloway Excerpts

Tuesday 25th May 2021 Commons Chamber

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)]

What discussions he has had with the Chancellor of the Exchequer on increasing support to businesses affected by the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

My right hon. Friend the Chancellor of the Exchequer presented to Parliament the Budget, which sets out an additional £65 billion to support people and businesses. We have hit every road map commitment at every stage so far, and no one can doubt that we are leading in our support to businesses. We have even taken the total cumulative cost of support to £352 billion.

[Owen Thompson]

ExcludedUK is set to reach its first birthday soon, which must be a bittersweet moment for many of my constituents. It is frankly a disgrace that the campaign has had to continue in the face of the Government rejecting the calls to support the 3 million who have been ignored and denied covid support. Does the Minister not agree that the self-employed and others denied support now deserve to have funds backdated so that they can rescue their livelihoods and contribute to the economic recovery, rather than simply adding to online dole queues?

[Amanda Solloway]

Throughout the covid-19 pandemic the Government have supported people and businesses across the whole of the United Kingdom. The Budget extends the UK job retention and self-employment income support schemes and the VAT cut to support the tourism, leisure and hospitality sectors. To date, businesses in Midlothian have benefited from more than 1,500 loans and £56 million, with more than 16,000 jobs supported through furlough.

[Dean Russell [V]]

I recently introduced a ten-minute rule Bill on making mental health, or psychological, first aid a legislative requirement for workplace first aid, going beyond its recent positive inclusion in Health and Safety Executive guidelines. Will my hon. Friend please meet me to explore my proposals, which make a very small change to make a very big difference?

[Amanda Solloway]

I know how passionate my hon. Friend is about mental health and this campaign. I myself am dedicated to supporting campaigning and advocating for mental health, and I care passionately about mental health in the workplace. Indeed, we are working on a people and culture strategy for research and development. We will ensure that my hon. Friend has the opportunity to discuss the matter further with relevant Ministers.

[Steven Bonnar]

The Chancellor has announced that the job retention scheme must end in September, yet thousands of workers in Coatbridge, Chryston and Bellshill remain on furlough, with their industries required still to close. While the vaccine roll-out gives us real optimism, the world remains firmly in the grip of this pandemic. It is unacceptable to leave workers and businesses with only four months before they face this cliff edge and are cut off from this vital lifeline. Other European nations, such as Germany, have already committed to continue with their equivalent scheme until 2022. With that in mind, will the Minister join me in imploring the Chancellor to do the right thing for workers and businesses in my constituency and across the UK by extending the retention scheme for as long as it is required?

[Amanda Solloway]

The Government have provided unprecedented support to business sectors throughout the pandemic, including the hospitality and retail sectors. In addition to the job retention scheme and cuts to business rates and VAT, we have provided one-off restart grants of up to £18,000, which are available to businesses in the non-essential retail, hospitality, leisure and personal sectors to support them to reopen as restrictions are relaxed. To date, businesses in Coatbridge, Chryston and Bellshill have benefited from more than 1,500 loans and £59 million, with 70,800 jobs supported through furlough.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

This week marks English Tourism Week, but the UK’s tourist destinations have been hit hard, with a much higher than average increase in people who are now out of work, including in places such as Scarborough and Whitby. Many tourism businesses, such as hotels and cafés, have taken on debt to stay afloat, and one in five hospitality businesses now says that it is at moderate risk of insolvency. Yet the Government’s pay as you grow scheme does nothing to solve the underlying long-term issue of business debt, which means that businesses will have to repay whether or not they are making a profit. Does the Minister agree that, if we want to give businesses the time to build up their trade and resilience, and also protect jobs and not let debt stifle the recovery, we need a genuinely flexible repayment scheme such as the one Labour has called for.

[Amanda Solloway]

We care passionately about businesses in this Government, and our support package includes the job retention scheme, generous grants and cuts to business rates. Pay as you grow measures will allow 1.5 million bounce back loan borrowers to extend payment terms and to benefit from a further repayment holiday. Our plans to support economic recovery and pursue growth through significant investment in infrastructure skills and innovation will help us to build back better and level up across the United Kingdom.

[Kate Osamor (Edmonton) (Lab/Co-op)]

What steps he has taken to improve employment rights and protections for gig economy workers.

--- Later in debate ---

[Cat Smith (Lancaster and Fleetwood) (Lab)]

What steps he is taking to support high street businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

Our comprehensive economic response to business is worth £385 billion, including grants, the furlough scheme, tax deferrals and business rates relief. We are providing a £56 million welcome back fund, helping councils to prepare for the safe reopening of our high streets and seaside resorts.

[Cat Smith]

High street businesses on Lord Street in Fleetwood tell me that one of their biggest concerns is empty shop units that have fallen into disrepair. They are dangerous for people who are out shopping and make the high street very unattractive. What support can the Government give councils such as Wyre Council to ensure that these shops are made safe and, ideally, tenanted?

[Amanda Solloway]

The Government are committed to unleashing enterprise and growth across all parts of the United Kingdom, and we will go even further with the publication of our levelling-up White Paper this autumn. The hon. Member will welcome the news that Lancaster and Fleetwood have been awarded funding under the high streets heritage action zones cultural programme. Our £4.8 billion levelling-up fund will invest in infrastructure that improves everyday life across the United Kingdom. We have protected 14 million jobs through the comprehensive package we have put in place. Our plan for jobs is creating, supporting and protecting jobs, and our £2 billion kickstart scheme has helped 16,500 young people to start paid jobs.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

What new support he plans to provide to energy transition projects in Scotland.

--- Later in debate ---

[James Sunderland (Bracknell) (Con)]

What steps his Department is taking to support UK manufacturing.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

Having worked in manufacturing for over 20 years, I know the challenges, and I thank those in the manufacturing sector for the brilliant work they have done to support the economy, including the way they came together for the ventilator challenge, and for manufacturing all our vaccines. We are committed to supporting UK manufacturers to build back better by taking advantage of innovative technology and through measures such as the super deduction capital allowance rate of 130%, to turbocharge business investment.

[James Sunderland]

Following Brexit, it is more important than ever that we incentivise the best possible commercial, manufacturing and industrial base in the UK. What is BEIS doing to support the Department for International Trade and other Departments in bringing foreign businesses to our shores?

[Amanda Solloway]

BEIS is working with Departments across Government to implement the plan for growth, with its focus on infrastructure, innovation and skills. That will have the effect of making the UK more attractive in terms of inward investment, cementing our place as a global science superpower and potentially increasing investment in areas such as Thames valley, which already boasts a number of world-class manufacturing companies.

[Dr Luke Evans (Bosworth) (Con)]

What steps he is taking to support entrepreneurship.

--- Later in debate ---

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

As the Minister knows, I am passionate about inspiring the next generation of scientists and engineers. Will she tell the House what plans her Department has to build on the previous good work in this field, such as the Year of Engineering?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

We have committed to investing £14.9 billion in R&D in 2021-22, meaning that Government R&D spending is now at its highest level for decades. We have our ambitious road map. We have our innovation strategy that we will be launching. We have our R&D place strategy, and we are working to ensure that the benefits are felt nationwide.

[Mr Speaker]

I suspend the House to enable the necessary arrangements to be made for the next business.

Research Collaboration Advice Team

Amanda Solloway Excerpts

Tuesday 25th May 2021 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

The Integrated Review sets an ambition for the UK to be a science and technology superpower by 2030. International research collaboration will be central to achieving this objective, and our research sector needs to be both open and secure.



The Government work with research institutions, funding bodies and industry to ensure national security risks are understood and responded to appropriately. I and the Secretary of State for BEIS (Kwasi Kwarteng), as well as our officials, have discussed these issues at all levels within the research community. We expect institutions and individuals to make sure international collaboration is safe, sustainable and secure.



I am therefore pleased to announce that the Department for Business, Energy and Industrial Strategy (BEIS) will this year launch the Research Collaboration Advice Team (RCAT). The new unit will provide an efficient route by which researchers can access advice, as well as seek confidential consultation on sensitive and emerging issues. Its leadership will operate from Manchester and advisers will be distributed across the UK, available to researchers from across the country. Advisers’ responsibilities will be limited to guidance, and they will not have enforcement responsibilities.



The RCAT will be a BEIS unit, but its advisers will work closely with officials in the Departments for Education, International Trade and Defence, the Foreign, Commonwealth and Development Office and the National Technical Authorities.



This initiative complements a number of measures already in place to manage risk within international collaboration, including:



Guidelines published by Universities UK, on behalf of the sector and with Government support, to help universities to tackle security risks related to international collaboration;

the Trusted Research campaign, run by National Cyber Security Centre and Centre for the Protection of National Infrastructure in partnership with BEIS and the Cabinet Office;

one of the toughest export controls regimes in the world, including guidance recently published by the Department for International Trade specifically for academics;

the Foreign, Commonwealth and Development Office’s Academic Technology Approvals Scheme, a pre-visa screening regime expanded to cover a wider set of technologies and all researchers in proliferation sensitive fields;

guidance from the Intellectual Property Office on protecting intellectual property known as the Lambert Toolkit; and

our work with partners and allies, including the G7, to create international frameworks that support open, secure science collaborations.

My Department is working hard to promote research collaboration, putting science and technology at the heart of our international partnerships. As a package, these measures are enabling this effort by making sure collaboration is safe, sustainable and secure.

[HCWS53]

Intellectual Property Office: Performance Targets 2021-22

Amanda Solloway Excerpts

Monday 24th May 2021 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

Unleashing innovation and creativity will be at the heart of the post-pandemic recovery and support British businesses to build back better. The Government’s Research and Development Roadmap sets clear objectives for increasing investment in research and becoming world-class at securing economic and social benefits; inspiring creators, entrepreneurs and start-ups; increasing the flow of capital into firms that are committed to research and development; attracting and retaining talented, diverse teams; making long term commitments to people, places and institutions and collaborating nationally and internationally to deliver world-leading innovation and creativity that achieves world-beating results.

Last year, communities and economies across the world faced unprecedented disruption due to the covid-19 pandemic. At a time of such devastation, we saw the best in British ingenuity. From our leading research institutions to schools and colleges, and from distilleries to Formula One teams, British innovators developed and manufactured life-saving sanitisers, vaccinations and ventilators. These technologies now offer a route out of the current pandemic. By enabling collaboration and incentivising investment, IP will play an important part in beating covid-19 once and for all. We are already reaping the benefits of the IP framework through its impact in mobilising research and development of game-changing vaccines at record speed. Funding by the UK Government has been vital in the rapid development, approval and deployment of vaccines and licensing of IP will be critical in reaching global communities. We can also credit this success to the decades of investment in science and innovation and sharing of knowledge underpinned by the IP system.

The Intellectual Property Office’s ambition is to be the best IP office in the world, by providing excellent IP services, a legislative and policy framework that is world leading and a brilliant place to work. It is transforming its ways of working, its services and the way it engages customers. Thanks to the resilience, creative thinking and team-work of its staff, the IPO stayed open for business throughout the pandemic and switched to digital delivery for many services. Now it needs to build on that to help businesses recover and grow.

This year, it expects intellectual property rights applications to increase by around 25%. To respond to this demand it will grow the work force, and importantly build its culture to match its bold ambitions. It will invest in its service delivery to ensure it can uphold excellent customer satisfaction for the long term.

IP underpins economic growth by incentivising investment, safe-guarding assets and enabling the sharing of know-how in technologies like life sciences and artificial intelligence. IP will help enable Britain to forge an unbeatable competitive advantage, accelerate the transition to net zero energy, beat the pandemic, and drive up innovation and creativity to build back better.

The Intellectual Property Office (IPO) Corporate Plan 2021-22 explains how through its stewardship of the IP system, the IPO will help the UK to become the most innovative and creative country in the world as an independent nation. It will do this through delivering excellent IP services, creating a world leading IP environment and attracting and retaining the best people by making the IPO a brilliant place to work.

As an Executive Agency and Trading Fund of the Department for Business, Energy and Industrial Strategy, the IPO has set targets which are agreed by Ministers and laid before Parliament. I am glad that today I can inform the House that for 2020-21 the IPO’s targets are:

Customer: Average overall customer satisfaction with the IPO of 85% or more in Q4 2021-22.

Future proofing the IP Framework: Consult on changes to patent and copyright law to meet the future challenges and opportunities of artificial intelligence, and present recommendations to ministers by Q4.

Efficiency: Delivering our services efficiently through continuously improving our systems, processes and way of working to make things better for our customers and our people. Our target is to achieve efficiencies worth at least 3.5% of our core operating costs.

The plan includes actions to help businesses recover and grow after the covid-19 pandemic. The IPO’s priorities reflect this and it will review them as the consequences of efforts to control the virus become clearer. It has the ability to adapt its finance and resource models according to emerging trends and will do so through robust quarterly reforecasting. It will also work with BEIS and its other partner organisations to review its priorities regularly, ensuring that it supports wider Government responses to the economic impact of the virus and seek to focus its efforts and resources where they will have the most significant impact driving the UK innovation and creative economy.

[HCWS45]

Advanced Research and Invention Agency: Recruitment of CEO and Chair

Amanda Solloway Excerpts

Wednesday 12th May 2021 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

Given the unusual autonomy placed on the CEO and chair roles for ARIA, it is vital we source the best possible candidates, and get them started as soon as possible. We have planned an extensive outreach strategy to ensure we maximise the size of the talent pool. We will expand and enhance the search for the right individuals, including by procuring the services of a respected international executive search agency from the Government’s commercial framework. This agency will not have any part to play in candidate selection or interview sifting—these activities will be the responsibilities of BEIS Secretary and the ARIA recruitment panel, respectively.

Parliamentary approval for additional resource of £200,000 for this new service will be sought in a main estimate for the Department for Business, Energy and Industrial Strategy. Pending that approval, urgent expenditure estimated at £200,000 will be met by repayable cash advances from the Contingencies Fund.

[HCWS3]

GKN Automotive Plant: Birmingham

Amanda Solloway Excerpts

Wednesday 28th April 2021 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

It is a great pleasure to serve under your chairmanship, Dame Angela. I congratulate the hon. Member for Birmingham, Erdington (Jack Dromey) on securing this really important debate today. I have an awful lot of respect for him, as he knows. I agree with the hon. Member for Manchester Central (Lucy Powell) about the passion with which everybody has spoken in the debate. It has been absolutely crucial.

The hon. Member for Birmingham, Erdington is a long-standing advocate for the UK automotive sector and champion of the world-class automotive businesses in his constituency, including GKN and Jaguar Land Rover. The proposed closure of the GKN Automotive plant in Birmingham is deeply disappointing. I myself have a background in manufacturing of over 20 years, as the hon. Gentleman probably knows, and I feel a great connection to British industry—in fact, my great-uncle flew Spitfires, so I absolutely appreciate that aspect. I am really sympathetic to the difficulties associated with a situation such as this.

The Government are supporting manufacturing. “Build Back Better: our plan for growth” sets out the Government’s plans to drive growth and build on our competitive advantage through significant investment in infrastructure, skills and innovation. We will pursue growth levels in every part of the UK, enabling the transition to net zero and supporting our vision of a truly global Britain.

The proposed closure of the GKN plant was a great shock to the employees and will be hugely concerning for them and their families. The plant is part of the fabric of the local community, producing components, as we know, for vehicle makers including JLR, Nissan and Toyota. It is a really important part of the UK automotive sector, which provides 149,000 manufacturing jobs. There are examples of employees spending most of their lives at GKN, with some of them being there from the time they leave education until retirement. As we have heard, there are also people in their 20s with young families to support.

The Government are committed to doing what we can to save those high-skilled jobs. The Minister for Investment, Lord Grimstone, met with Liam Butterworth, chief executive of GKN Automotive, last month. That helped the Government to understand the rationale behind the proposed closure and explore options for securing a long-term, sustainable future for the Birmingham plant. At the meeting, welcome assurances were given that all viable alternatives to closure will be considered. Also, my right hon. Friend the Business Secretary and the Minister for Investment met with the hon. Member for Birmingham, Erdington and representatives of Unite the union regarding this issue last month. The mandatory employee consultation provides a platform for alternative proposals to closure to be presented. Unite has developed its sustain-and-transition proposal, and we encourage it to table the proposal formally with GKN if it has not already done so.

The hon. Members for Birmingham, Erdington and for Easington (Grahame Morris) referred to transfer pricing. We have been told by GKN that sales between its plants are carried out on commercial terms, and that is independently audited.

Ultimately, the future of the plant is a commercial decision for GKN management, but we stand ready to discuss viable alternative proposals with GKN management. That could involve investment in capital equipment or skills to stoke the plant’s competitiveness. In the event of closure, with production carefully wound down over the next 18 months, the priority will be to find new jobs for those people who lose their jobs. GKN has committed to supporting its employees through this difficult time. The Minister for Investment will follow that closely.

As we know, the Melrose takeover of GKN in 2018 faced considerable opposition, with cross-party calls for it to be blocked on national security grounds. The takeover was considered by the then Secretary of State fairly and impartially, in accordance with the legal powers provided through the Enterprise Act 2002. Under the 2002 Act, the Government have the power to intervene in mergers on public interest grounds. There are, however, strict and limited grounds for intervention. Ultimately, the review determined that there were no grounds for objecting to the deal. Melrose was required to make commitments to the Ministry of Defence to address matters relating to national security.

In March 2018, the then Business Secretary wrote to Simon Peckham, chief executive of Melrose Industries, setting out additional binding commitments that would be needed in the event that the takeover bid was successful. A copy of the letter and the response from Melrose are available in the House of Commons Library. As we have heard today, there are differing views on whether those commitments have been met. The legally binding post-offer undertakings made to the Takeover Panel are independently verified every six months by third party advisers. The advisers provide a report to the Takeover Panel confirming Melrose’s compliance.

As my hon. Friend the Member for Rugby (Mark Pawsey) said, these are challenging times for the automotive sector. In 2020, 920,000 cars were produced in the UK, which was 29% down on 2019 levels. Businesses across the automotive sector, including GKN, have had to restructure to maintain competitiveness.

The Government have stood shoulder to shoulder with businesses and workers to support them through these challenging times and have provided an unprecedented level of support, including the furlough scheme. That helped protect the income of around 60% of the automotive sector’s full-time employees when production was temporarily suspended last year. In addition, £4.6 billion of liquidity has been provided to the sector through the coronavirus loan scheme. The Government are committed to supporting the sector through these challenging times, so that it can exploit future opportunity.

The global automotive sector is undergoing significant change, as production shifts to zero-emission vehicles and supply chains are restructured to produce new technology. Modern developments in production plants are being accelerated and creating a once-in-a-lifetime investment opportunity for the United Kingdom. To be clear, this is not just about protecting the status quo and retaining the manufacturers that we have in the UK, including JLR, Nissan and Vauxhall, but about stimulating a high-tech market that cements our global position at the forefront of mobility.

The Government have announced £500 million of funding as part of a commitment of up to £1 billion over the next four years through the automotive transformation fund. That will help build, at pace and scale, an internationally competitive zero-emission vehicle supply chain in the United Kingdom, including in key regions where levelling up is crucial, such as the north-east, Wales and the west midlands, as highlighted so well by the hon. Member for Manchester Central.

The UK-EU trade and co-operation agreement provides a phased introduction of the rules of origin requirements for zero-emission vehicles. That was welcomed by the UK automotive sector as it allows manufacturers time to increase local content—an issue raised by the hon. Member for Birkenhead (Mick Whitley). GKN will be an important part of that future supply chain. It is developing cutting-edge vehicle technologies at its innovation centre in Abingdon. Securing investment in gigafactories is a priority to meet demands from UK-based vehicle makers. The Government are in advanced negotiations with several potential investors.

The Government are committed to ensuring that the UK continues to be one of the best locations in the world to research and develop the next generation of vehicle technologies and to manufacture zero-emission vehicles. GKN is at the forefront of these technological developments through its innovation centre in Abingdon. Our aim is that the Birmingham plant also continues to be at the heart of GKN’s manufacturing operations.

As I explained, the Government are ready to discuss alternative proposals that could include investments in capital equipment or in the skills needed to secure future vehicle technology. That would help provide long-term, secure jobs for the dedicated and skilled employees.

Advanced Research and Invention Agency Bill (Fifth sitting)

Amanda Solloway Excerpts

Thursday 22nd April 2021 Public Bill Committees

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

May I start by saying what a pleasure it is to serve under your chairmanship, Mr Twigg? I wish my colleague the hon. Member for Newcastle upon Tyne Central well. In fact, I was just reflecting that if we were on the Star Trek Enterprise, we could have beamed her up and Dr McCoy could have sorted her out.

[Chi Onwurah]

I thank the Minister for her very kind remarks. I probably should have said earlier that the NHS, and the Royal Free Hospital, which treated me, showed all the support, kindness and innovation that Bones in “Star Trek” would have done.

[The Chair]

We need to come back to the business now.

[Amanda Solloway]

I add my appreciation for the NHS as well. I welcome the debate so far and look forward to continuing the discussion on this important Bill.

As part of the discussion on amendment 19, I will draw on two comments about failure in research that we heard in last week’s evidence sessions. The first is Bob Sorrell’s point that, compared with the US,

“there is a definite culture in the UK that failure is something that you hide under the carpet”.

He went on to say that ARIA

“is about establishing a culture in which we can accept failure and move on.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 76, Q79.]

My worry is that the amendment, which requires the publication of a statement containing information regarding ARIA’s tolerance to failure, just misses the point. Focusing on the number and value of project failures versus successes as an annual output risks creating the wrong mindset, and risks losing sight of the ambitious multi-year goals.

It is also the case that assessing the failure of programmes and projects on an annual basis might have the effect of limiting risk-taking over the longer term. A high-potential project might qualify as a failure after one year, even though it may deliver great results over the longer term.

The second comment was made by Professor Dame Ottoline Leyser, who questioned how we will know that ARIA has succeeded, and what one would expect the percentage failure to be. She said:

“There is also serendipity…to factor in. If you set yourself a fantastic target of solving a particular problem or producing a particular new product and you fail to do that, none the less, along the way you might discover something extraordinary that you can apply in another field.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 12, Q7.]

Although ambitious research goals might not ultimately be achieved, ARIA will generate value from failures and should therefore embrace failure, and there is value in knowing what does not work, as well as in the successes.

--- Later in debate ---

[Chi Onwurah]

I thank the Minister for her remarks. We agree on the need for ARIA and for high-risk, high-reward research, but perhaps we differ on whether the publish share an understanding of that need. There are also, unfortunately, the realities of the environment in which we live: our culture does not have a high tolerance of failure. We truly believe that it is incumbent on us as parliamentarians and leaders to take what steps we can to help transform the situation and to not leave ARIA alone, so that we can all better understand the role that failure will play.

I am reluctant to detain the Committee. This was meant to be a constructive amendment, but if it has not met with the approval of the Minister, I am happy to beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

It is absolutely vital that ARIA operates at the cutting edge of science and technology, and I have consistently heard from the scientific community that ARIA must tolerate the risk of failure to succeed. This idea gets to the very heart of what ARIA is about and on Second Reading there was also cross-party support for it, too.

ARIA will set highly ambitious research goals, which, if they are achieved, will bring about transformative scientific and technological advances, and those advances could also yield significant economic and social benefits. It follows that, as these goals are expected to be highly ambitious, it is likely that only a small fraction of them will be fully realised as originally intended, which will necessarily require a high tolerance of failure. For example, it might be that when some failures are judged over a longer time horizon, they will lead to unexpected successful outcomes. Clause 3 allows ARIA, in exercising its functions, to give particular weight to ambitious research, development and exploitation, which carry a high risk of failure.

I will just say a few words about failure. Although ambitious goals might not ultimately be achieved, ARIA will generate value from project failures. For example, a particular goal may not prove technologically viable, but in pursuing it scientists may happen across another promising technology or develop a new method of data collection. There is also value to be had in knowing what does not work, as well as in the successes.

ARIA is also expected to be a convener of high-calibre individuals and organisations from across the public and private sectors, which otherwise might not have been brought together. However, ARIA is not just about ambitious research goals. Clause 3 also allows ARIA to take greater risks in the form of the support it provides, including the use of innovation funding mechanisms. For example, clause 3 provides ARIA with the potential to take equity stakes in start-up ventures for the purpose of developing and exploiting scientific research.

That approach also extends to funding research and development that is untested and untried, and not necessarily peer-reviewed, which is a clear dividing line between ARIA and other public research and development funders, such as UK Research and Innovation. For ARIA to be a fruitful addition to the R&D funding landscape, it must be able to pursue truly ambitious targets and to support them in a novel and sometimes risky way. It must not be scared of failure, and clause 3 seeks to enable that mindset and approach.

[Chi Onwurah]

We recognise that clause 3 is essential to enabling and empowering ARIA and ARIA executives in tolerating failure. That is part of ARIA, and the clause has our support.

On the exercising of functions in the Bill, following our debate on an amendment debated in the previous sitting, the Minister kindly sent me a letter about how the Secretary of State might consider removing the chair from their position. I thank the Minister for her comments that set out the way in which the chair might be removed. I point out that our amendment would have given powers to remove an executive member and the Bill only gives powers to remove a non-executive member, which is the issue we were concerned about.

Question put and agreed to.

Clause 3 accordingly order to stand part of the Bill.

Clause 4

Grants to ARIA from the Secretary of State

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 4 creates a power for the Secretary of State to fund ARIA. The Committee will be aware that the Government have committed to funding ARIA with £800 million up to financial year 2024-25. The clause allows the Secretary of State to attach conditions to the grants made to ARIA, which will be set out in the framework document and funding delegation letter, which are agreed between my Department and ARIA. The documents will be drafted and agreed with ARIA’s senior leadership team ahead of ARIA becoming operational in 2022.

The documents will complement the Bill, setting the broad parameters within which ARIA can operate and ensuring appropriate use of public money. It is a requirement for arm’s-length bodies of Government Departments to have these arrangements in place. I will be exceptionally mindful that we do not tie ARIA up in knots with endless Government approval processes, as that would run counter to what ARIA is about, but some parameters must be put in place to safeguard the use of public money.

For example, I have spoken about the importance of providing ARIA’s high-calibre programme managers with the freedom to experiment with a toolkit of funding methods in a way that best suits the programme goals and that does not always fund the usual suspects. As the policy statement sets out, that may include the use of inducement prizes, grant-prize hybrids and seed grants, taking equity stakes and so on. Some of ARIA’s activities could be subject to delegation levels, which limit the amount of a single type of activity, for example. The ability to attach conditions to grants paid by the Secretary of State to ARIA will set the appropriate framework within which ARIA can then freely determine its activities and funding choices without ministerial interference.

Clause 4 is as significant in what it does not say as in what it does. Unlike the corresponding clause in the Higher Education and Research Act 2017, clause 4 does not include a direction-making power regarding the allocation or expenditure of ARIA. This is important because the funding decision-making power should rest with ARIA, not Ministers. Clause 4, in allowing ARIA to be funded, is essential to its functioning and should stand part of the Bill.

[Chi Onwurah]

As the Minister said, clause 4 enables the Secretary of State to make grants to ARIA. It is clearly essential—what is the point of an agency that is not able to receive funds? While we do not oppose the clause, however, we are concerned about the general tone and language in the discussion of the way in which grants and funding will be made available to ARIA.

The Minister talked about not burdening ARIA with bureaucracy. At this time, there are a number of investigations into accusations of sleaze and the inappropriate ways that funding has been made available to the mates of different Secretaries of State. Funding and procurement have been carried on through WhatsApp groups, rather than through the normal procurement procedures, for example. I believe that the clause would have benefited from setting out more robustly the importance of the procedures, which are to be agreed, as well as the importance of what the Minister calls “bureaucracy” in enabling and ensuring trust, which is so very important for this agency.

In the debate on Tuesday, the Minister talked about a “different model of trust” for ARIA. I put on the record that the Opposition believe strongly that it is not the model of trust that is wrong, but the way in which it is being followed or implemented by this Government. We believe that the current model of trust needs to be supported in relation to ARIA and in all funding and procurement decisions.

Question put and agreed to.

Clause 4 accordingly ordered to stand part of the Bill.

Clause 5

National Security Directions

--- Later in debate ---

[Chi Onwurah]

Once again, my hon. Friend raises an excellent point, and indeed he brings together the themes of our amendments. He is right to say that if ARIA had a clear mission, there would be better understanding of the kinds of decisions and trade-offs that might well need to be made, and we could have a much better informed discussion around that. However, the fact is that we have neither a mission for ARIA, nor any opportunity to scrutinise the national security directives that might be made in the interests of addressing climate change, but also might be made in the interests of ensuring that we have oil drilling rights, or that we continue to fund minerals extraction around the world in order to support other research objectives. It is clear to us that we need to have this scrutiny.

As I indicated, there have been a number of debates on Intelligence and Security Committee scrutiny of other Departments, including in relation to the National Security and Investment Bill and the Telecommunications (Security) Bill. In those cases, despite that Committee being keen to scrutinise national security decisions, the Government have shown a great reluctance to allow parliamentary scrutiny of issues of national security. Some believe—I am not one of those cynical people—that this is because the Government are not happy with Parliament’s choice of Chair of the ISC. I am loath to believe that the Government would be so petty when it comes to such an important matter as national security, so I hope the Minister will clarify how we will have appropriate scrutiny of national security decisions made by the Secretary of State, as set out in this Bill, and why the ISC is not the right vehicle for that.

I will finish with two brief quotes in support of the amendment. In the National Security and Investment Bill Committee, we had the great privilege of taking evidence from Richard Dearlove, former head of the British Secret Intelligence Service.

He said:

“My view would be that the annual report has as much transparency as possible, but you are probably going to require a secret annexe from time to time. It is a bit like the reports of the Intelligence and Security Committee, which I dealt with frequently as chief. They and we were keen that they should publish their reports, but there comes a point where it is not in our national interest that some of this stuff is put in the public domain.”

––[Official Report, National Security and Investment Public Bill Committee, 24 November 2020; c. 21, Q23.]

That is the case here as well.

My right hon. Friend the Member for North Durham (Mr Jones) has said:

“I do not want to give the impression that the ISC is looking for work, because I have been a member for a number of years and we are busy with a lot of inquiries—I have three or four hours’ reading every week looking through reports from the agencies. However, it is important that the ISC can at least look at the intelligence that lies behind decisions.”––[Official Report, Telecommunications (Security) Public Bill Committee, 21 January 2021; c. 143.]

That is all that we are seeking to achieve through this amendment.

[Amanda Solloway]

Amendment 20 would require the Secretary of State to provide a report to the Intelligence and Security Committee at the end of each financial year detailing directions made by the Secretary of State to ARIA in the interests of national security and the national security risks that triggered the directions.

The Government take very seriously their duty to protect the national security of the country and its citizens. The ISC plays a valuable role in providing scrutiny and expertise in respect of its functions, as set out in the Justice and Security Act 2013 and the statutory memorandum of understanding. However, that remit does not extend to oversight of BEIS work.

I do not see any reason why such a report should be necessary. No such arrangements exist with UKRI through the Higher Education and Research Act 2017. Instead, the organisation has robust national security arrangements in place to ensure that appropriate action is taken. Similar arrangements will be put in place as ARIA becomes operational, and we are speaking with the relevant parts of Government to make sure that that is the case.

The clause reflects the fact that, while ARIA will be free from ministerial interference, we will always act on our responsibility to protect our national security. Information made known to the Secretary of State will be fed into the wider work of the Government to protect UK R&D from national security risks as appropriate. I see no case for ARIA to report on that to the ISC. I urge the hon. Lady to withdraw her amendment.

[Chi Onwurah]

I thank the Minister for her comments, but she has not responded to the underlying and constructive aim of the amendment, which is to ensure that the ISC has sight of intelligence and security decisions.

She makes a comparison with UKRI. This agency is about high-risk, high-reward research, which we are told will be transformative. During many of our National Security and Investment Bill Committee debates, the point was raised that the nature of national security threats is changing and, as we heard numerous times in evidence, has moved, and is moving, very much into the technological domain. The question whether or not we play a leading role in artificial intelligence, for example, is an issue of national security, as are our cyber defences, which I am sure any chief executive of ARIA would be keen to look at. The agency needs the kind of intelligence scrutiny that only the Intelligence and Security Committee can give. On that basis, I would like to press the amendment to a vote.

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 5 creates a power for the Secretary of State to give directions to ARIA regarding the exercising of its functions that are considered necessary or expedient in the interests of national security. It is right that ARIA is free from too much ministerial oversight. However, when it comes to questions of national security, Ministers may intervene to prevent risk to the UK’s national security interests.

The necessary and expedient threshold of clause 5 offers adequate protection and limits the possibility of ministerial overreach, owing to a more broadly defined power. The direction-making power with which ARIA must comply can be general—for example, a direction not to conduct research in conjunction with partners from a particular jurisdiction that poses a threat to the United Kingdom’s national security—or specific: for example, a direction to terminate a specific contract.

Subsection (2) states that the directions include the

“power to vary or revoke”,

which is to say that directions can be altered or withdrawn depending on how the national security risk develops or subsides.

I would like to take this opportunity to assure the Committee that my team are working hard to ensure that ARIA is set up with national security risks front of mind. That ranges from reducing the risk of cyber-attacks, to ensuring that ARIA is plugged to the appropriate Whitehall national security networks. This work complements a direct-making power in the Bill.

[Chi Onwurah]

As I have said, Labour is the party of national security.

--- Later in debate ---

[Kirsty Blackman (Aberdeen North) (SNP)]

I beg to move amendment 27, in clause 6, page 2, line 38, at end insert—

“(2) ARIA must provide relevant Select Committees of the House of Commons and the House of Lords with such information as the Select Committees may request.”

This amendment is intended to allow relevant parliamentary Select Committees to access information in order to scrutinise the value for money provided by ARIA.

I will not say a huge amount about the amendment, which pretty much speaks for itself. As ARIA is not subject to freedom of information, I think it incredibly important that there should be a commitment from the Minister that ARIA will provide information to Select Committees if they request it. If the Minister will stand up and say that ARIA will of course provide information to Select Committees, I will withdraw my amendment post haste.

[Amanda Solloway]

Amendment 27 would require ARIA to provide information requested by relevant Select Committees in both Houses. Sufficient measures are already in place to ensure that Select Committees have access to information that would allow them to scrutinise the work of Government Departments and public bodies.

I agree that Select Committees play an important role in examining the work of arm’s length bodies, and I am grateful for the interest and insight that the Science and Technology Committees in both Houses have had into ARIA so far. However, the Osmotherly rules provide guidance for how Government Departments and public bodies should interact with Select Committees. They are clear that the members of arm’s length bodies should be as helpful as possible in providing accurate, truthful and full information when giving evidence, taking care to ensure that no information is withheld that would not be exempted if a parallel request were made to the body under the Freedom of Information Act 2000. I believe that that is sufficient to ensure co-operation and a constructive relationship between ARIA and relevant Select Committees, as it is for other bodies such as UKRI.

On scrutiny of ARIA’s value for money, as was set out in discussions on schedule 1 the National Audit Office can conduct value-for-money assessment in the usual way. I wanted to address a comment made by the hon. Member for Newcastle upon Tyne Central on Tuesday about the role of the National Audit Office in scrutinising the work of ARIA. I do not agree that the safeguard is very limited; in fact, value-for-money assessments are rigorous and robust, and provide the basis for the Public Accounts Committee’s hearings and reports. I therefore believe that the right arrangements are in place for Select Committees to scrutinise the work of ARIA. That is in line with standard practice. I hope that the hon. Member for Aberdeen North will withdraw her amendment.

[Kirsty Blackman]

I thank the Minister for her statement. She has made it clear that she expects ARIA to comply and not withhold information necessary for Select Committees. I beg to ask leave to withdraw the amendment.

        Amendment, by leave, withdrawn.

        Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 6 focuses on the Secretary of State’s information rights with respect to ARIA. The Secretary of State may request information relating to his or her functions—for example, information required to determine the Government’s funding of ARIA, to make national security directions, or for the appointment or removal of board members. It is important that the Secretary of State has the information that he or she requires to perform relevant functions.

The information rights remain limited compared with the other arm’s length bodies of Government Departments. The Bill does not allow the Secretary of State to request ARIA’s strategy or delivery plan, for example, as the Higher Education and Research Act 2017 does with respect to UKRI. A limited set of information rights is an important feature of maintaining ARIA’s independence from Government, and it also helps the body to be an agile organisation that can focus on high-risk, high-reward research.

I remind the Committee that this is not the extent of the information provided by ARIA. As we have discussed with respect to schedule 1, for example, ARIA must also send a copy of its statement of accounts and annual report to the Secretary of State, to be laid before Parliament. It is also in the gift of the Secretary of State to oblige ARIA to make other types of information available—via the framework document, for example—as a condition of funding under clause 4. Clearly, it is important to strike a balance between transparency in the use of public moneys and not operationally overburdening a small organisation.

The clause also sets out stipulations regarding the handling of information. Disclosure of information by ARIA under the clause does not breach any obligation of confidence owed by ARIA, and does not, for example, require a disclosure of information should it contravene data protection legislation. I hope that hon. Members agree that the information rights set out in the clause are important to allow the Secretary of State to carry out their functions effectively.

[Chi Onwurah]

I thank the Minister for summarising clause 6. The theme of many of our amendments has been the importance of communication, information, understanding ARIA and its mission, and accountability, so we support the requirement for information to be provided by ARIA to the Secretary of State as appropriate. The duties in the clause seem entirely appropriate, but I have a couple of concerns that I hope the Minister will either respond to or perhaps write to me about.

Clause 6(3) states:

“A disclosure of information required under this section does not breach—

(a) any obligation of confidence owed by ARIA, or

(b) any other restriction on the disclosure of information (however imposed).”

Perhaps this is something that I should already understand, but I am not clear whether commercial confidentiality would come under subsection (3). If ARIA were funding, as I hope it will, a high-risk, high-reward and sensitive project, would that be excluded on the grounds of commercial confidentiality? There is no requirement for the information that ARIA provides to the Secretary of State to be published or shared more broadly, so I would hope that commercially confidential information could be shared.

Subsection (4) states:

“This section does not require a disclosure of information if the disclosure would contravene the data protection legislation.”

Clearly, if disclosure contravened data protection legislation, it would be illegal, so I am somewhat confused about a requirement on ARIA not to break existing laws. I am happy for the Minister to write to me to say under what circumstances there might be a need to share information, the disclosure of which would contravene data protection legislation. I can only think that it might involve personal information, which suggests that the Secretary of State would ask for personal information. Earlier, we discussed the gender pay gap and disclosing information on that. Did the Minister think that that might contravene data protection legislation if, for example, only women worked for ARIA?

Those are my concerns, and I would be obliged to the Minister if she wrote to me about those questions, but we will not oppose the clause standing part.

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

The clause introduces schedule 2, which contains provisions about schemes for transfer of staff, property, rights and liabilities to ARIA. It is very straightforward.

Question put and agreed to.

Clause 7 accordingly ordered to stand part of the Bill.

Schedule 2

Transfer schemes

Question proposed, That the schedule be the Second schedule to the Bill.

[Amanda Solloway]

The schedule allows the Secretary of State to make one or more property or staff transfer schemes to ARIA. The permitted transferors are the Secretary of State or UKRI. The supplementary powers are standard and mirror those in, for example, the Higher Education and Research Act 2017. The principal purpose of clause 7 and schedule 2 is to ensure that important assets and personnel can be transferred from BEIS or, if required, UKRI, as ARIA is set up. For example, the chief executive officer and chair may be temporarily contracted to BEIS before ARIA becomes operational. It is administratively convenient to be able to use the power to transfer those staff to ARIA. Paragraph (4) provides that

“A staff transfer scheme may make provision which is the same as or similar to the TUPE regulations.”

That means that employers’ rights of transfer remain the same.

Alternatively, in the ARIA set-up phase, contracts may be entered into for an office lease or seed funding, which could be transferred to ARIA without contract novation. That means that the benefit and burden of the contract can be assigned to ARIA without having to obtain a third-party agreement. It is an important provision that may be needed to make ARIA operational.

Question put and agreed to.

Schedule 2 agreed to.

Clause 8

Power to dissolve ARIA

[Kirsty Blackman]

I beg to move amendment 38, in clause 8, page 3, line 21, at end insert—

“unless they are made under subsection (7)”.

This amendment ensures that ARIA cannot use its significant resources to fund weapon development.

--- Later in debate ---

[Kirsty Blackman]

I thank the hon. Member for his characteristically sensible intervention. However, I feel so strongly about this that I think it is important that ARIA is excluded from doing that. There are other means that the UK can use to fund weapon development. I do not think ARIA should be one of them.

We are particularly concerned because of the lack of transparency and the issues that there have been around the use of weapons and the use of UK resources on weapons. We have said that we want the UK to immediately halt all military support and arms sales to regimes that are guilty of violations of human rights and international humanitarian law. The UK Government have not done so. Our concerns are well founded, which is why we have tabled what is quite an extreme amendment in comparison with others we have seen.

This is a subject of much moral debate. We will not ever accept the use of lethal autonomous weapons. Our concern is that, as they are on the cutting edge of technology, ARIA may consider looking at those weapons. I do not want that to be done in the name of the people I represent; they certainly do not want it done in their name.

The Minister has told us about the memorandum of understanding that will be in place between BEIS and ARIA. We have already touched on the issues of ethical investments that ARIA may or may not make. If the Minister was willing to make a statement about the ethical nature of investments ARIA will make and the direction that may be put into that MOU—we do not have as much information as we would like on the MOU—that might give us some comfort on the direction that ARIA may take. The lack of a mission for ARIA means that it is open to the possibility that this situation could arise, and that is a big concern of ours.

[Amanda Solloway]

Amendments 37 and 38 challenge so-called dual-use research—research that is intended for benefit, but might be misapplied by a third party to do harm. The ways in which that could be done will not always be easy to predict, and given the possible benefits of the intended civilian application, it would not be right to close the door to any research that might fall into that category.

I assure the hon. Member that, alongside the Bill, my team is working hard to ensure that ARIA is set up with such risks at the front of people’s mind, including regarding how ARIA is equipped to perform due diligence on potential research partners to minimise risk. It would not be right to dissolve ARIA immediately if it had taken all necessary precautions to minimise the inappropriate use of its research, which would be the effect of the amendments.

Clause 5 will allow the Secretary of State to give directions to ARIA relating to the exercise of its functions when that is necessary or expedient in the interests of national security. That would apply, for example, if ARIA worked with a researcher in another jurisdiction on the development of a technology that could be used by another country for nefarious ends such as weapons development. In that event, the Secretary of State could direct ARIA to cease the contract or research. Under schedule 1, the Secretary of State is able to remove members from office on national security grounds.

I emphasise that while we have learned from DARPA in creating ARIA, ARIA differs from DARPA in several ways, principally because it is not set up with a focus on defence or weapons development. I urge the hon. Member to withdraw the amendment.

[Kirsty Blackman]

I thank the Minister for her statement. I listened to it closely, and it did give some comfort about the possible direction of ARIA. Given what she said, I do not intend to press the amendment to a Division, but we will keep a close eye on what happens. When we scrutinise ARIA, we will examine whether it uses significant portions, or indeed any, of its resources to fund weapons development, especially in countries where there is concern about use for nefarious purposes—not that weapons can generally be used for a particularly good purposes—and with regard to lethal autonomous weapons. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 8 allows the Secretary of State to make provision by regulation for the dissolution of ARIA

“ten years after the date on which this Act is passed.”

Before making such regulations, the Secretary of State will be required to consult ARIA and other persons he or she considers appropriate, who could include the recipients of ARIA funding or other experts in the field. That will ensure that those leading ARIA at the time will have the opportunity to contribute to the decision. As is set out in clause 11, regulations under clause 8 are subject to the affirmative procedure in each House of Parliament.

We recognise that ARIA is a new body that will take time to get up to scale and demonstrate success. Its exclusive focus on high-risk, programme-led research requires patience, so it should not be evaluated on short -term outcomes. The Commons Science and Technology Committee and the R&D sector at large have welcomed the long-term, patient approach that has been set out for ARIA, and the dissolution grace period is designed to take account of that. There is no obligation to exercise the dissolution power after 10 years, and the Government are, of course, optimistic that clause 8 will not be needed. However, we recognise that ARIA represents a new way of funding research so, as a matter of good administration, we have provided for a power to dissolve ARIA in the event that it is not successful.

Question put and agreed to.

Clause 8 accordingly ordered to stand part of the Bill.

Clause 9

Consequential amendments

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 9 introduces consequential amendments to schedule 3, which we will go on to discuss. It has no other effect, and I hope that hon. Members agree with its necessity.

Question put and agreed to.

Clause 9 accordingly ordered to stand part of the Bill.

Schedule 3

Consequential amendments

--- Later in debate ---

[Amanda Solloway]

The amendment would omit the extension of obligations on contracting authorities for the purposes of public contracts regulation that the Bill affords ARIA. I will take the opportunity to explain to hon. Members why the extension is so important.

I will make three points. First, ARIA is expected to commission and contract others to conduct research in pursuit of its ambitious goals. ARIA will often be procuring those services, and that commissioning and contracting is a fundamentally different way of funding R&D from traditional grant-making, where procurement rules do not apply.

--- Later in debate ---

[Stephen Flynn]

I am very much in favour of freedom, for want of a better phrase, but does the Minister not understand the concerns that the public will have about transparency on such a key amount of public money? That is something the Government have an awful track record on at this moment in time. Does she not understand the public’s view?

[Amanda Solloway]

I make reference to all the methods that we have in place to ensure that we are transparent in the running of ARIA. As I have been clear about throughout, independence is an essential feature of ARIA. Its procurement will therefore be at arm’s length from Government and Ministers. I hope that this debate has demonstrated the necessity of such an arrangement and that the hon. Member for Newcastle upon Tyne Central will withdraw her amendment.

Advanced Research and Invention Agency Bill (Sixth sitting)

Amanda Solloway Excerpts

Thursday 22nd April 2021 Public Bill Committees

[Daniel Zeichner (Cambridge) (Lab)]

It is a pleasure, Mr Hollobone, to serve with you in the Chair for the second time this week.

This has been a really interesting discussion, because it has demonstrated two very different views of how the world might operate. I am sorry to hear the Government’s view on this. When they are in Opposition, they might find that they are quite keen on freedom of information. All Governments, of course, are keen not to be subject to scrutiny in this way. There is a fundamental point about the modern world now, even more than 10 or 20 years ago. Perhaps it is because of the kind of constituency I represent, but I have a lot of people who are interested in what is going on and they expect, as citizens and taxpayers, to be able to ask questions, particularly where public money is being spent.

Let me give two very quick examples. Artificial intelligence is the kind of issue that may well be dealt with by ARIA. It is hugely controversial. Just a couple of years ago, many of my constituents, on the way home from King’s Cross, found that they had been subject to facial recognition technology. How did they find out about that? Ultimately, it was through freedom of information. It is always the case that the people who have the knowledge, the power and the control do not want to share it with others. That is not a good way of maintaining public trust. Just this morning, I found myself at the Dispatch Box challenging a Minister because expert advice on bee-killing pesticides had been revealed not through parliamentary questions or asking or writing letters, but through Friends of the Earth’s freedom of information requests. I understand why the Government do not want that information out there, but it should be out there, and ARIA should be in the same place. We should have confidence in the work being done, however close to the edge it is. Ultimately, it is about maintaining public trust. We are entering a hugely complicated world, in terms of science and technology. We will not keep the public with us by hiding and not acceding to freedom of information requests.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

The Government are committed to good governance and transparency, and I believe that the Bill in its current form embeds that within ARIA. With regard to amendment 22, we have carefully considered the case for and against subjecting ARIA to the Freedom of Information Act. The intention is for ARIA to have a streamlined operating structure, with decision makers who can solely focus on ARIA’s research goals. We have spoken and heard a lot about culture and how important that is to facilitating an environment that pursues transformational research.

In turn, we have thought carefully about guaranteeing accountability and transparency in the most appropriate way. There are many different mechanisms to achieve this, and I cannot accept the claims that no such oversight exists for ARIA. To reiterate: the Bill requires ARIA to submit an annual report and statement of accounts, which will be laid before Parliament; ARIA will be audited by the National Audit Office and subject to value-for-money assessments; ARIA will interact with Select Committees in the usual way; and we will draw up a framework document detailing ARIA’s relationship with BEIS and further reporting requirements, such as details of what will be published in the annual report. Together, these provisions are rigorous and proportionate and will ensure that the research community, MPs, peers and taxpayers are informed of ARIA’s activities and where it spends its money.

By not subjecting ARIA to the Freedom of Information Act, ARIA’s leadership and scientists will be free to find and fund the most cutting-edge research in the UK and the world, and to maintain the UK’s competitive advantage as a science superpower. While there are exemptions to freedom of information requests, they must still be processed, and that administration is likely to run contrary to the lean and agile operation of ARIA. To be clear, other bodies subject to the Freedom of Information Act, such as universities and Government Departments, including BEIS, will still process requests regarding their activities with ARIA in the usual way. I hope that makes it clear that this is not about reducing transparency; it is about making ARIA streamlined. I hope that the hon. Member for Newcastle upon Tyne Central understands why I cannot accept the amendment.

[Chi Onwurah]

I thank those Members who have taken part in the debate, which highlights, as my hon. Friend the Member for Cambridge said, a real difference between us and Government Members. I totally understand why Government Members do not want Government conversations to be known at the moment—releases of those on WhatsApp have not been in their interest. However, we strongly believe that freedom of information is a duty of public bodies, so I will press the amendment to a Division.

--- Later in debate ---

Question proposed, That the schedule be the Third schedule to the Bill.

[Amanda Solloway]

Schedule 3 contains consequential amendments. There are a number of significant points to highlight, and a number of standard consequential amendments and obligations, which I will turn to first. The schedule has the effect of ensuring that records produced by ARIA should be treated as public records; subjecting ARIA to investigation by the Parliamentary Commissioner for Administration, the body responsible for investigating the administrative actions of public authorities; and disqualifying members of ARIA from membership of the House of Commons and the Northern Ireland Assembly. Those are all standard provisions.

Schedule 3 includes amendments to the relevant devolution Acts, with the effect of reserving ARIA. That will bring it into line with the other major public R&D funding institutions under the UKRI umbrella, including the most recently created Innovate UK. That will guarantee that, across the United Kingdom, ARIA can operate with minimal bureaucracy and without the possibility of unequal obligations or requirements on its activities in different nations. It is important to be clear that the devolved Administrations will continue to be able to fund research to the same extent that they can do now. The specific reservation of ARIA does not prevent the Welsh Government or the Scottish Government from providing additional support for advanced research in future.

The other significant provision in schedule 3 is the exemption of ARIA from the obligations on a contracting authority, for the purpose of the Public Contracts Regulations 2015. We have discussed that and I will not return to it. The provisions here are important for the effective operation of ARIA, and I commend them to the Committee.

Question put and agreed to.

Schedule 3 accordingly agreed to.

Clause 10

Power to make consequential provision

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 10 contains a power for the Secretary of State to make consequential provision. There are three points I would like to make on this clause. First, the power is only exercisable in consequence of the provisions of what will be the ARIA Act, or regulations made under clause 8, which we have already discussed. That represents a significant narrowing of the scope of the power. Secondly, I emphasise that it is a standard provision that allows issues that might emerge in future to be straightforwardly addressed. There is a comparable power in the Higher Education and Research Act 2017. Thirdly, as set out in clause 11, which we will turn to next, any regulations made under that power that amend, repeal or revoke any provision of primary legislation or retained direct principal EU legislation will be subject to the draft affirmative resolution procedure. That means that Parliament will have a say on any use of that power.

Finally, I would like to illustrate why the power is needed. If ARIA were to be dissolved in future through regulations made under clause 8, the references to ARIA inserted in other legislation would remain, and clause 1 of the Act—stating that ARIA was established—would be left hanging. In that situation, the power could be used to repeal the relevant clauses of the ARIA Act and remove references to ARIA elsewhere, which would be necessary and important to tidy the statute book and avoid confusion and ambiguity. I hope that demonstrates the importance of the power being taken.

Question put and agreed to.

Clause 10 accordingly ordered to stand part of the Bill.

Clause 11

Regulations

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 11 concerns the regulation-making powers in the Bill, which are limited. The principal point of interest is the parliamentary procedure that each of these delegated powers will be subject to. Subsection (4) sets out that regulations made under clause 8 to dissolve ARIA and any regulations under clause 10 that amend, repeal or revoke any provision of primary legislation or retained direct principal EU legislation will be subject to the draft affirmative resolution procedure. These are the most substantial powers, so I consider that it is right that Parliament has a say over how they are exercised.

With the exception of regulations made under clause 14 concerning commencement, any other regulations made under the ARIA Bill will be subject to the negative resolution procedure. These are predominantly concerned with operational and procedural details, so again I consider that the negative resolution procedure is appropriate in this case, and I hope the Committee agrees.

Question put and agreed to.

Clause 11 accordingly ordered to stand part of the Bill.

Clause 12

Interpretation

[Chi Onwurah]

I beg to move amendment 23, in clause 12, page 5, line 10, after “social sciences” insert “and the humanities”.

This amendment would modify the definitions of scientific knowledge and scientific research to encompass the humanities.

[Chi Onwurah]

We are moving through this Bill at speed, so it would be good to take a few moments to think about the role of the humanities. These amendments modify the definition of scientific knowledge and scientific research to encompass the humanities.

It is incumbent on us, particularly during a pandemic when we are missing so many of the arts and other aspects of culture, to recognise the very important role that the humanities play, not only in our mental and social wellbeing but in scientific research, and particularly in our understanding of the world around us. We believe that science can be the engine of progress for our society, and it needs to be for and by everyone. Expanding the scope of ARIA’s research to include the humanities can provide greater returns for society.

This also speaks to the Government’s so-called levelling-up agenda. As part of that, they must appreciate the important role that social sciences and the humanities play in helping us understand and solve many of the issues faced in all our communities across our United Kingdom. ARIA presents us with an opportunity to drive innovation across the country, but it must be done in the right way. Currently, the Bill fails to adequately factor in the importance of all forms of research.

The statement of policy intent makes no reference to the social sciences. The examples of areas that may be funded by ARIA are AI, quantum computing and robotics. They are very important, but we also need answers from the Government on how they envisage that ARIA’s social science funding will work.

The recent report into race and ethnic disparities, commissioned by the Prime Minister, has been roundly condemned—indeed, trounced—for its lack of coherent or credible research. It has been criticised by historians, social scientists and academics from across our country. That illustrates very well how important it is that we have strengths in humanities and social science research, and that the Government and the Prime Minister recognise that. The role that institutional racism and prejudice play in the lives of so many in this country is worthy of credible research. Addressing the many inequalities that so many people still face is surely a worthy challenge—a worthy moonshot—that ARIA should consider.

Mariana Mazzucato, a leading academic and economist of mission-oriented research, said that all science should address social inequality. We heard from Felicity Burch that:

“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.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 68, Q66.]

With our two amendments, we wish to ensure that the humanities are considered part of ARIA’s remit.

[Amanda Solloway]

I will speak to amendments 23 and 24 together. ARIA is unashamedly focused on achieving transformational breakthroughs in the sciences, and this is reflected in the definition set out in clause 12. I say to the hon. Member that scientific research and scientific knowledge are broadly defined to include the social sciences. I do not believe it is helpful for ARIA to extend the interpretation of “sciences” to include humanities. There are other funders that do a fantastic job at supporting the humanities, including the Arts and Humanities Research Council, but that is not the Government’s intention for ARIA. I hope the hon. Member will withdraw the amendments.

[Chi Onwurah]

I am disappointed in the Minister’s response, but I will not push the amendments to a vote. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Daniel Zeichner]

Absolutely right, and I have no objection to ever relying on anything that has been developed in Cambridge through a collegiate, collaborative approach of people working together. I was just about to say that we would be very happy to negotiate a definition of “invention”—I am very happy to take that one. We are just trying to help the Government to provide some clarity in the Bill. I suspect the Minister will not be tempted to take up the offer.

I will conclude by mentioning the public money point, which my hon. Friend the Member for Newcastle upon Tyne Central referenced. I can barely believe that I am saying this to Conservative Members, because I have been lectured many times over the years in various places about how it is taxpayers’ money and every penny needs to be spent carefully. It is absolutely right and proper that that should be done—£800 million is at least £10 per person. I suspect that other Members are knocking on doors at the moment and having a conversation with people, asking them how they are going to vote. I just wonder how many Members over the next week or two would like to end the conversation by saying, “Can I have a tenner, please?” When people ask, “What for?”, they offer the back of an envelope and say, “I don’t really know—I’ve no idea—but it might produce something wonderful.” And then they look down the list and find six others in the household, so they up it to £60. I do not think so. I think the public are not going to be convinced about this. Maybe—just maybe—a wonderful innovation will come through this, but I fear that, in years ahead, we will find that we are back discussing this again and will be putting in some of the checks and balances that are actually required.

[Amanda Solloway]

I thank the hon. Member for the suggestion and I understand the sentiment. It is incredibly important that ARIA’s transformational ideas can lead to value creation. However, it is not necessary to use legislation to define words that already have a common meaning, as I believe “invention” does. I also emphasise that other definitions in clause 12 of the Bill—of “scientific knowledge” and “scientific research”—mirror existing provision in the Science and Technology Act 1965, so there is a precedent for the approach in that specific case. “Invention”, in contrast, is a commonly used concept that appears through the Patents Act 1977, and the term “invention” is not subject to a specific definition in that Act. I strongly suggest that we rely on the commonly understood meaning of “invention”, which is “the process of creating something that has never been made before”, and that that definition is sufficient, and I encourage him to withdraw the amendment.

[Daniel Zeichner]

I do not need to detain the Committee further. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 12 contains further information on the interpretation of terms used in the Bill. It is a straightforward, technical matter and I hope that it is helpful in illuminating some of the clauses previously discussed.

Question put and agreed to.

Clause 12 accordingly ordered to stand part of the Bill.

Clause 13

Extent

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 13 details the extent of the Bill, which is UK-wide. Research is a collaborative endeavour, and working right across the United Kingdom, as other public research funders do, will be essential for ARIA in forging a wide range of productive partnerships. I hope hon. Members agree that this arrangement is beneficial for research organisations everywhere.

Question put and agreed to.

Clause 13 accordingly ordered to stand part of the Bill.

Clause 14

Commencement

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 14 contains standard provision for the commencement of the ARIA Act following Royal Assent. It contains a power for the Secretary of State to make commencement regulations. There is a limited number of provisions that for practical reasons will immediately come into force. That includes the power to make consequential provision in clause 10 so that it could, if needed, be used immediately after Royal Assent to address any issues that emerged. I am sure that the Committee will agree that the clause is standard.

Question put and agreed to.

Clause 14 accordingly ordered to stand part of the Bill.

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

This clause provides the short title of the Bill. ARIA’s name has already been discussed at the very start of proceedings, and I do not think we need revisit that discussion here.

Question put and agreed to.

Clause 15 accordingly ordered to stand part of the Bill.

New Clause 1

Protection of independence of ARIA

“In exercising functions in respect of ARIA, the Secretary of State must have regard to the need to protect its independence.”—(Chi Onwurah.)

This new clause would require the Secretary of State to have regard for the need to protect ARIA’s independence when exercising functions under the Bill, including with respect to appointments.

Brought up, and read the First time.

[Chi Onwurah]

I beg to move, That the clause be read a Second time.

The entire debate has been extremely exciting, and I know we are all reluctant to bring it to a close, but the new clause, which I will discuss briefly, is in keeping with all our constructive amendments that we have considered in our debate on ARIA. The new clause would improve the Bill and protect the spirit and goals of ARIA. Indeed, it would clarify them in places.

The new clause would ensure that when exercising functions in respect of ARIA, the Secretary of State must have regard to the protection of its independence. Members on the Government and Opposition Benches have talked about the importance of ARIA’s independence and referred to the challenges to the relationship between business and Government that we see now in the many conflicts of interest and concerns that have been raised about sleaze and cronyism that are now being considered in Parliament and in Committees.

We feel it is important to set out that ARIA is independent and can act with operational independence. Indeed, the Minister has repeatedly told the Committee that she wants ARIA to act with operational independence. “Extreme freedom” was Dominic Cummings’ clarion call in his evidence to the Science and Technology Committee.

The new clause would ensure that the Secretary of State had regard to ARIA’s independence when exercising all functions under the Bill, such as his power of appointment. For example, appointing a major Conservative party donor or a Conservative peer to the board of ARIA would clearly have a damaging effect on ARIA’s independence and how that independence was perceived by the scientific community.

I hesitate to predict what the Minister will say, but I suspect that she will not look favourably on this amendment and she may say that the ministerial code already requires Ministers to behave in a way that upholds the highest standards of propriety and ensures that no conflicts of interest arise. In response to that, I would say that we can clearly see the repeated undermining of the code by Ministers in this Government and—critically—the current vacancy for the Prime Minister’s independent adviser on Ministers’ interests.

I also remind the Committee that the Government themselves introduced a very similar amendment to the Environment Bill—new clause 17—that imposes the same obligation on the Government in exercising functions under that Bill in relation to the Office for Environmental Protection. If such a measure is appropriate for the Environment Bill, why not for this Bill? For as long as we have this cloud of sleaze allegations hanging over this Government, we must ensure that we are crystal clear when it comes to key issues such as independence, propriety, conflicts of interest, and so on.

In addition, I will just briefly quote some witnesses who gave evidence. Tabitha Goldstaub, for example, said that

“ARIA has to be independent”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 56, Q54.]

Dr Dugan said:

“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”—

that is, the Defence Advanced Research Projects Agency in the US—

“has been so successful over years.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 47, Q43.]

And I will close by quoting Professor Glover, who said:

“I would argue that there is huge value in that”—

“that” being the independence of ARIA, and that:

“Obviously, the funding is coming from Government, but by giving it freedom from Government you might also be giving it the freedom to fail in many ways, and that is exceptionally important. If it is seen as very close to Government—whichever Government is in power—it potentially becomes a bit like a political football, either in what is being funded or in the direction suggested for where ARIA funding should go.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 55, Q54.]

I think that all Members of the Committee will agree that we do not wish ARIA to become a political football; we certainly want it to avoid the controversy that has affected football itself in the last few days. We want its independence to be crystal clear. We do not want it to be subject to, or tainted by, any of the allegations of sleaze or cronyism, or the corrupting influence of there being too close a relationship between business and Government. By accepting this amendment, the Committee will send a clear message in that regard.

--- Later in debate ---

[Amanda Solloway]

New clause 1 concerns ARIA’s independence, which is at the core of our policy aims here, and the Bill has been drafted to set ARIA as free from ministerial interference as possible. ARIA will set its own research programmes, recruit freely at the executive and programme manager level, and make decisions on what programmes to start and finish without recourse to Ministers.

I observe a contradiction in moving this new clause to protect ARIA’s independence to be discussed alongside a series of amendments which would take powers away from ARIA and give them to the Secretary of State. The Secretary of State deliberately has limited powers and the Bill strikes the right balance between providing ARIA with the independence to operate freely, which we believe is critical to its success, and sufficient Government oversight to protect the use of public funds, for example, the right to remove non-executive members or to intervene where necessary or expedient on national security grounds, or the Secretary of State’s reserve power to introduce procedure in law affecting conflicts of interest, a power that is not found in the Bill but which creates other statutory corporations, such as UKRI. These measures represent appropriate protections, rather than controls, affording ARIA greater freedoms and independence than those of typical arm’s length bodies.

Without real freedoms, there is a danger that ARIA will get pulled closer by Ministers over time, and will become an arm’s length body like any other. I therefore do not think the new clause is needed.

[Chi Onwurah]

There is not a contradiction between wanting to establish ARIA’s independence while also ensuring the same levels of scrutiny. For us they are two sides of the same coin. As this is our last proposed amendment, I want to press the new clause to a Division.

Question put and negatived.

New Clause 2

Carbon costs

“ARIA must—

(a) have regard to the carbon costs of decisions it makes; and

(b) operate with net zero carbon costs.”—(Stephen Flynn.)

This new clause is intended to ensure that ARIA has regard to the carbon costs of its decisions, and runs with net zero carbon costs.

Brought up, and read the First time.

[Stephen Flynn (Aberdeen South) (SNP)]

I beg to move, That the clause be read a Second time.

We are indeed going to the better side of Aberdeen, although I should be very careful on my way home, because my hon. Friend the Member for Aberdeen North and I are both on the same flight later.

I do not want to go over the arguments that we had earlier in the week. I think we had quite enough on net zero and climate change. We do of course still hold the view that that should be the abiding mission of ARIA itself. Given that the Bill does not make any provision for what we are suggesting in the new clause, it should be brought forward at this moment in time. I hope the Minister will be able to allay my concerns with her remarks.

[Amanda Solloway]

We discussed climate change extensively on Tuesday. I want to put it on the record that I agree with the hon. Members who raised the urgency and importance of tackling that issue. As I am sure the hon. Member for Aberdeen South is aware, however, the clause would be a very unusual provision for a statutory corporation. I also want to emphasise that ambitious legislative action has already been taken by the Government in this regard, with our strong statutory commitment to net zero making the UK the first major economy in the world to do that.

As I have said before, achieving the legislative commitment to net zero remains one of the Government’s top priorities, as demonstrated by the Prime Minister’s 10-point plan. I know that ambition is shared by colleagues across this place. I therefore recognise why the clause has been brought forward today. I would, however, caution against placing an immediate obligation on ARIA that is out of step with the wider 2050 timescale for reaching net zero.

ARIA is also likely to be a very small organisation with a small footprint. I also want to emphasise that ARIA will be subject to the Environmental Information Regulations, which require public authorities such as ARIA to make environmental information available. This would likely include data relating to carbon costs. We have discussed the importance of giving ARIA freedom and independence and space to establish itself, and ultimately I do not think that imposing that immediate statutory obligation is the right way to achieve the climate objectives that it speaks to, or to ensure the success of ARIA.

[Stephen Flynn]

I beg to ask leave to withdraw the new clause.

Clause, by leave, withdrawn.

--- Later in debate ---

[Kirsty Blackman]

I beg to move, That the clause be read a Second time.

Aberdeen North is by far the best part of Aberdeen, Mr Hollobone.

I know that new clause 3 is the most exciting thing, and that the Committee has been waiting for it the whole time. It is the key moment in our discussions. I jest—but it is important. The past few years saw the advent of English votes for English laws in Parliament, and we were told during its development that even though Scottish MPs were being written out of having a say on England-only legislation, we would still have a say on Barnett consequentials, because we would be able to vote during the estimates process.

We have made our issues with that process clear. Despite good changes to the system and the way we scrutinise estimates, the process is still wholly inadequate. Part of that inadequacy is the fact that we have no certainty about what will or will not be a discrete line within the estimates. We have no certainty about whether we can get the costs for something. As the shadow Minister said, when she asked for costs for UKRI, in relation to freedom of information requests, for example, she did not get them. Even if ARIA is to be an arm’s length organisation in relation to BEIS, with a memorandum of understanding, but it will be spending public money, I would be keen to keep track of how much we are allocating to ARIA each year. Once again, it would be quite good if the Minister would make a commitment to a discrete line in the estimates. If she does that, I will be more than happy to say nothing else.

[Amanda Solloway]

New clause 3 is intended to ensure that ARIA is presented as a discrete item in the supply estimates. ARIA will be funded by BEIS and, like all other BEIS arm’s length bodies, will be separately identified in the BEIS supply estimates. ARIA statements of accounts, which will be laid before Parliament every year, will also include information on ARIA’s funding from BEIS. I therefore believe that the new clause would be an unnecessary addition to the Bill.

[Kirsty Blackman]

With that confirmation from the Minister, I am happy to say that I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 4

Ethical code for investment

‘(1) Within three months of the date of commencement of this Act, the Secretary of State must lay before Parliament a code for ethical investment developed and agreed by ARIA.

(2) The code of ethics developed by ARIA under subsection (1) must go beyond regulatory requirements and adopt a best practice approach.’ —(Stephen Flynn.)

This new clause is intended to ensure that ARIA develops a code for ethical investment that goes beyond regulatory requirements and adopts a best practice approach.

Brought up, and read the First time.

[Stephen Flynn]

I beg to move, That the clause be read a Second time.

Again, the new clause is very straightforward. It is intended to ensure that ARIA develops a code of ethical investment that goes beyond regulatory requirements, and adopts a best practice approach. What is not to like? That is something that we should all aspire to, particularly when it comes to such a significant amount of public money. We have talked at length today and on Second Reading about ARIA’s ability to dodge freedom of information requests, and the like. The new clause would provide the assurance that we need, given that the Government appear unwilling and unable to take forward our views on freedom of information. It perhaps provides a compromise position.

[Amanda Solloway]

I recognise the issue raised in the amendment. The most transformational scientific research, of the kind that will be pursued by ARIA, is likely to have a wide range of potential technological applications, across different areas. Such research may prompt new ethical debates, such as those that we are already having about AI and robotics. The Government welcome lively, open and democratic public and parliamentary debate on the roles that new technologies play in our lives, and I do not think that that is something we should shy away from. However, I assure the hon. Gentleman that ARIA will operate in line with the law that already governs issues of research ethics, such as the use of animals in research. ARIA will not be given special dispensation to fund research that is not considered appropriate elsewhere.

I draw attention to the fact that there is no specific legislative requirement placed on UKRI, a much larger-scale funder, with respect to issues of research ethics. For ARIA the Government would be able to intervene in exceptional circumstances through the national security provision in clause 4 of the Bill, as we have already discussed.

[Kirsty Blackman]

I understand what the Minister says about the fact that there is no such provision for UKRI. However, perhaps if was being set up now, we would suggest that there should be. For her information, the Scottish National Investment Bank has a clause almost identical to new clause 4, on ethical investment. We believe that if the Scottish National Investment Bank can operate on that basis, ARIA should have no problem doing so. I understand exactly what she says about the debates that are happening, but that is why it is even more important for ARIA to sign up to some kind of code of ethics that we can all scrutinise.

[Amanda Solloway]

To reiterate our viewpoint, the Government would be able to intervene in exceptional circumstances through the national security provision in clause 4, which we have already discussed, and by introducing powers on the grounds of conflict of interest and appointing a new chair or new non-executive directors. More broadly, in working with relevant Government institutions, special attention will be paid to ensuring that ethical questions generated by research are thoroughly explored and that we strike an appropriate balance between innovation and caution.

[Stephen Flynn]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 5

Human rights abuses

“No ARIA resources may be used in any way that would contravene human rights.”—(Stephen Flynn.)

This new clause is intended to ensure that ARIA is not able to contravene human rights.

Brought up, and read the First time.

--- Later in debate ---

[Chi Onwurah]

I second the concerns raised by the SNP spokesperson. If ARIA commissioned research, for example, that was collaborative between the UK and a Chinese tech company involved in the Uyghur human rights abuses, which are so extreme, how would we know about it and what action could be taken?

[Amanda Solloway]

I completely agree with the sentiment and the intention behind the new clause. Human rights are protected in law in the United Kingdom through the Human Rights Act 1998, and ARIA will be subject to public authority obligations under the Act. I refer the hon. Member for Aberdeen South to the first page of the Bill, which confirms that the Secretary of State has signed a statement to the effect that

“the provisions…are compatible with the Convention rights.”

I therefore reassure the Committee that ARIA will operate in a way that is compatible with the European convention on human rights; indeed, it would be unlawful under existing legislation for it not to do so. I hope that that satisfies the hon. Member that there is no need for the new clause.

[The Chair]

Mr Flynn, the ball is in your court.

--- Later in debate ---

[Kirsty Blackman]

Further to that point of order, Mr Hollobone. I echo the comments made by the shadow Minister. I have said thanks very much to the Clerks, but I also put on the record my thanks to Dr Jonathan Kiehlmann and Scott Taylor, our staff members who have been assisting us. I also put on the record my thanks to the Minister, who wrote to us with a response to questions that we asked on Tuesday. I thank her and her team for ensuring that happened.

[Amanda Solloway]

Further to that point of order, Mr Hollobone. I take this opportunity to place on the record my sincere thanks to the Chairs for their excellent chairship. We have finished proceedings early, and I thank the Whips on both sides for their efforts in the management of time. I thank the excellent witnesses we heard from last week, and I thank all members of the Committee for our constructive debates. I am so pleased that every member recognises ARIA’s potential to bolster the reach of R&D funding across the whole United Kingdom and to be at the global forefront of new discoveries.

I very much welcome the sentiment behind the amendments we have discussed, such as maintaining the independence of ARIA, diversity in science and the importance of combating climate change. I hope I have demonstrated that the Bill will create a leading independent research institution and, while it is not for this piece of legislation, that the Government are making significant progress on other areas of policy through our net zero commitments and our upcoming people and culture strategy and places strategy. I welcome the support in delivering those aims.

Finally, I offer my thanks to the Clerks, the Doorkeepers, Hansard, all the parliamentary staff who have supported the debate and all members of the Committee for ensuring smooth proceedings and the livestreaming of the discussions. I look forward with great anticipation to the next stages of proceedings on the Bill and the continued insight from my experienced colleagues across the House.

[The Chair]

I thank the Clerks for their hard work, and the Hansard reporters and all hon. Members for their attendance this afternoon.

Question put and agreed to.

Bill accordingly to be reported, without amendment.

Advanced Research and Invention Agency Bill (Third sitting)

Amanda Solloway Excerpts

Tuesday 20th April 2021 Public Bill Committees

[Daniel Zeichner]

It is a pleasure to serve with you in the Chair, Ms McVey. I look forward to a fascinating discussion about a very important set of issues. Let me start by apologising on behalf of the shadow Minister, my hon. Friend the Member for Newcastle upon Tyne Central, who is delayed this morning but will be joining us in an hour or so. I have the pleasure of opening this morning’s sitting. I thank those who set up last week’s evidence sessions. I have sat on a number of Bill Committees in my short time in Parliament, and I have to say that I think it was the most informative evidence session that I have come across. I hope we all learned something from it—I certainly did.

The evidence session led directly to the first set of amendments. David Cleevely suggested this idea, in fact, and I remind the Committee of what he said in his observations:

“All the examples given of contributions that make a difference have all been, it strikes me, about engineering, so I suggest that we rename this the ‘Advanced Research and Engineering Agency’. To be honest, ‘invention’ strikes me a bit like something in the 1950s, with somebody emerging from a shed with a gadget that has just blown their hair off”—

a bit like my hair this morning. He continued:

“Peter Highnam pointed out ‘projects’, so we might actually consider it to be the ‘Advanced Research and Engineering Projects Agency’.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 74, Q76.]

That is a really important point. I suspect that much of the discussion today and in successive sittings will really be about the finer points of setting up an organisation, and will be relatively dry. Amendment 2 goes to the heart of what the agency is actually about and its whole purpose.

I very much hope that we will get wide engagement from all members of the Committee. I know that Government Whips are sometimes inclined to suggest that Government Members should hold their fire, but we have lots of expertise here today, and I think we are all trying to get the best outcome, so I hope people will feel that they can contribute.

One thing that struck me about the evidence session was just how many witnesses highlighted the need for greater clarity about the purpose of the agency. Professor Wilsdon put it very well when he said:

“I think that trying to bring more clarity, or at least a sense of how this issue will be addressed through the governance of this new thing, is really important.”

He warned:

“Otherwise, you or your successors, and we or our successors, will be back here in a few years’ time, asking ourselves why it did not work.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 23, Q19.]

Commentary and observations from the outside world say the same thing. The Government may have a view, and I hope the Minister will take the opportunity to clarify it. Our concern is that the Bill lacks clarity.

I found the evidence session very helpful, particularly because I started with a bit of prejudice: I thought I would struggle with anything that had been promoted by Dominic Cummings. I am not a grudgey sort of person—I do not bear a grudge. Actually, I do bear more than 65 million grudges on behalf of every man, woman and child in the country who was outraged by his behaviour this time last year, without going into what happened before that. It was disappointing that he did not choose to make himself available for our evidence session, because this is clearly a project associated with and driven by him. Perhaps that was for the best, though, because it makes it less about him and more about the future of research and development in our country.

The proposed name change came out of the evidence that he gave to the Select Committee on Science and Technology, which I watched. As one often does late in the evening, I was scrolling through the TV channels and suddenly I found hon. Members interviewing Dominic Cummings on the TV. Usually, I would move on to the football, but there was something extraordinarily engaging about that hour-long session. It seemed meandering and self-indulgent, and it revealed his loathing and hatred for everything in the world, particularly bureaucracy: whether it be Brussels bureaucracy, the blob or the way in which research and development work in this country, everything is designed to stop the process of invention emerging.

We all want it to be easier to do things. None of us wants bureaucracy, but most of us understand why it is there—there is a reason for it. Of course, we have to fight against it, but particularly in the last week or two it has become strikingly obvious why we need it: to make sure we do not leave ourselves open to cronyism and the abuse of public money. Over the years, all politicians have felt just how frustrating democracy can sometimes be. Would it not be so much better if just a few of us—a few blokes, probably—could just get together with Dominic and run the country? Would that not be so much better? We have seen examples of that through history and in other places. Without going back to cliches, there is a reason why we stick with democracy: it is better than all the other difficult systems.

I was struck by Mr Cummings’s constant invocation of the way things have been discovered in the past. He has talked frequently of the Laboratory of Molecular Biology in Cambridge, which is very dear to me. For those who come to Cambridge on the train from London, although there are many striking buildings outside Cambridge, it is particularly iconic building. It is not just a building, though; hugely important work goes on in it. Scientists from across the world, particularly Europe, are doing fantastic work. They have won a disproportionate number of Nobel prizes over the years.

Mr Cummings’s view was to hark back to the starting point, when there were some fantastic breakthroughs in a shed on the site of the old Addenbrooke’s Hospital. He almost seemed to think that they needed to be in the shed to get the breakthroughs. He was harking back to a very different world—perhaps the world that he wants us to be, back in the 1950s. That is not the world we are in now. That is the crunch with the name change.

What is in a name? In this case, a great deal. The word “invention” in the current title is useful to create a cheery acronym—I will come back to that—but actually it points to completely the wrong approach. As David said, it is bit like something from the 1950s, when someone emerges from a shed with a gadget that has blown their hair off. It is a sepia-tinged view of innovation: “The great breakthroughs were achieved against the odds, largely by blokes in sheds.” Well, perhaps they were, but that was then and this is now, and all the other witnesses painted a very different picture of how innovation happens.

Tabitha Goldstaub was particularly clear. She told us:

“I worry also about the lone genius model. We are well beyond individual success being seen like that. This is all about community. One of the things I have heard time and again is that people do not want to be funded as individuals but as groups of people. It is a community that would come together around a programme manager that is really important.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 54, Q52.]

That was the real force of the evidence from those who know best—those who have been doing this in America. The session with the people from the Defense Advanced Research Projects Agency was particularly powerful. DARPA does not have invention in its title and there is a good reason for that: it is not what it does.

Dr Highnam was particularly clear:

“DARPA: defence and national security. Clear mission; clear scope in which to work. Of the ARPA-like entities around that I am aware of, the only one that very closely follows the DARPA model would be the Intelligence Advanced Research Projects Activity in the US intelligence community. When you change what I would regard as the key elements—ephemeral or temporary people, project based, and no fixed assets—that have made DARPA nimble and forward leaning for 63 years now, you get something else.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 43, Q37.]

Note that he said “project based”—it is about projects, which is why that is in our amendment. It is a much more accurate description of what the agency should be about.

Dr Highnam said more, and this is probably more significant:

“The p in DARPA stands for ‘projects’, which is critical for a place like DARPA. We are not doing technology area x or y just because, and we do not do it for the long term. We have projects that are well defined at the beginning. A case has to be made. They are monitored, they have metrics and all manner of independent evaluation associated with them before we go out to find the best teams we can to participate and to be funded to work on that research. Then that project ends.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 40, Q34.]

He could not have been clearer—that is what makes it work.

If we contrast that clarity with the Bill, we see that the evidence sessions clearly revealed the muddle in Government thinking, as a succession of witnesses tried to get their heads around what this agency is for. It is certainly not clear in the Bill. As it stands, without amendment 2 the muddle over what the agency does remains unresolved, which inevitably means a muddle over money and resources, because while managing projects does not necessarily require a big spend, invention is quite another matter. The name change links to that vexed question of whether it is new money.

When Dame Ottoline Leyser of UK Research and Innovation—she is a constituent of mine—was asked what she would do with an extra £800 million if she had it to spend, her reply was skilful in the extreme. It was tactful, but it was a laugh-out-loud moment, because it was quite clear that this is not what she would choose to spend it on. Professor McDonald made a similar point, as did a succession of other witnesses. All of them were absolutely clear that it has to be new.

We in the Opposition certainly want new. Our aspiration is to go beyond 2.4%—we want 3%. We are happy to support new money, but I suspect that if it were a Labour proposal, the first question would be, “Where is the money coming from?” Perhaps the Minister can tell us that, because I do not think we have any clues. We welcome it, none the less.

In reality, despite the creative attempts at amendments from us and from the Scottish National party, we know that future money cannot be guaranteed. That is why the purpose of the agency is so important and why the “Projects” element matters so much.

The amendment also seeks to add “Engineering”, partly as that was suggested by David Cleevely in his witness statement. As he rightly pointed out, many of the examples are engineering examples. I have to say “partly” because the shadow Minister, my hon. Friend the Member for Newcastle upon Tyne Central, is a chartered engineer. Perhaps that is not actually so significant. If we took out “Engineering”, our amendment would result in the name being ARPA—the Advanced Research and Projects Agency—which is a straight copy. We are seeking to emulate largely what ARPA has achieved, which I am not sure is such a bad thing.

I have to say that on Second Reading I had a slightly tetchy exchange with the Secretary of State about whether the proposed agency was modelled or based on whatever. It is clearly learning from experiences. We have some other not dissimilar examples: we have the small business research initiative, which is the SBRI. I have spent many years trying to promote and support it, and it is based on the American model, the SBIR—small business innovation research—so we have some examples of borrowing from the Americans and switching the letters round. Given the number of different American ARPAs, we could end up with ARPA UK, or it could be ARPA GB or ARPA England—it depends how the world goes in the years ahead—but, frankly, we are not precious about it. However, the shift from “Projects” to “Invention” really does matter, so if the Government chose to make that change, or whether it was an accident, I would like the Minister to explain why and what the Government think is significant about the word “Invention” in the title of the agency.

Dr Highnam of DARPA said that if one does not do it in the way that he described, one gets something else. It is therefore only reasonable to ask the Minister what it is that she wants to do differently. What is it that she wants the agency to be? If the agency is going to cost an initial £800 million, what makes her confident that it will work? We heard from a number of witnesses, including Felicity Burch, who talked about previous efforts to move our research system closer to the “edge of the edge”, as it has been described. I am thinking of the Technology Strategy Board and the industrial strategy challenge fund. Felicity Burch said in her evidence that setting the agency up on a statutory basis makes a difference, and I think it does, but only if it is done in the right way.

Let me conclude by returning just briefly to the operatic theme that I have encouraged throughout the debate so far. I have been through Puccini and Purcell, but to finish where I began with Dominic Cummings, could we annoy him a little bit more by suggesting that the song might be the “Ode to Joy”? It is not quite an aria, more a collective chorale, but I think one of the projects we could turn to is to create more joy. In general, let us have clarity by making the purpose of the agency clear in its title. Let us recognise that it really is about projects, and do so by adopting the series of amendments under consideration. That would give the new agency a genuinely clear purpose, with the challenge framed by the Government. In our view, that has a much better chance of success, and as such is worth supporting with enthusiasm.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

What a pleasure it is to be under your chairmanship, Ms McVey, and to listen to the hon. Member for Cambridge. He talked about a wide range of issues, most which I am sure will be addressed in further debate. In this instance, I will concentrate on amendment 2 and those grouped with it.

The creation of ARIA represents an exciting opportunity to add to our already excellent research and development funding landscape. That came out very strongly on Second Reading, and I hope that today’s debate and last week’s evidence sessions demonstrate the importance of the legislation. I would like to place on record my thanks to the Opposition parties for the constructive way in which they have approached the Bill thus far, and I look forward to discussing the amendments that they have tabled.

Amendment 2 and associated amendments would change the name of the agency to the advanced research and engineering projects agency, or AREPA. I must say that when the hon. Gentleman raised this option last Wednesday, I did not realise that it was a serious suggestion. As I am sure he can imagine, a certain amount of thought and discussion has gone into choosing the name of the agency, and I do prefer the musical reference to naming the agency after a flatbread.

On a serious note, I recognise how central engineering successes have been to the historic breakthroughs of ARPA and DARPA in the United States. I found the evidence of Sir Jim McDonald of the Royal Academy of Engineering and others hugely interesting. I share the hon. Gentleman’s concern that those contributions should not be overlooked. I very much hope that ARIA builds on the history of engineering excellence that we have right across the UK, and supports the next generation of transformational breakthroughs. The powers of the body are key. I assure the Committee that just as UK Research and Innovation is able to provide funding for engineering research through the Engineering and Physical Sciences Research Council, ARIA’s powers extend to conducting engineering projects in exactly the same way as projects in any other area of science. That important discipline has not been forgotten. Our ambitions can be achieved without renaming ARIA, and I cannot accept the amendment.

--- Later in debate ---

[Amanda Solloway]

The establishment of the Advanced Research and Invention Agency as a statutory corporation means that the body has its own legal personality that is distinct from the that of the Crown or its individual members, as set out in paragraph 1 of schedule 1. That allows ARIA to enter into legal relations such as contracts, and to hold property in its own right.

A statutory corporation also allows the specific terms of the relationship between Government and ARIA to be set out in law—the composition of the board and the appointments process, for example. In setting that out, we have sought to balance the freedom required for ARIA to deliver transformational scientific and technological advances, but with appropriate ministerial oversight. I hope that hon. Members agree that that is the right vehicle for the creation of the agency.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Schedule 1

The Advanced Research and Invention Agency

[Dawn Butler (Brent Central) (Lab)]

I beg to move amendment 5, in schedule 1, page 6, line 10 at end insert—

“Memorandum of understanding

2 (1) ARIA and UK Research and Innovation must prepare a memorandum of understanding.

(2) The memorandum must set out how ARIA and UK Research and Innovation intend to co-operate with each other and avoid overlap between the exercise by ARIA of its functions and the exercise by UK Research and Invention of its functions.

(3) The memorandum shall be reviewed on an annual basis and revised as necessary by agreement between ARIA and UK Research & Innovation.”

This amendment would require ARIA and UKRI to prepare a memorandum of understanding setting out how they will collaborate and avoid overlap.

--- Later in debate ---

[Amanda Solloway]

As a female Science Minister, I fully understand the sentiment behind the proposed amendment. I agree that it is important that ARIA and UKRI co-operate for ARIA to be a coherent addition to the UK R&D funding landscape.

I thought that Professor Dame Ottoline Leyser, the CEO of UKRI, really spoke eloquently on this point last week when she said:

“The kinds of relationship that one wants to have with key players across the system are not things for which you necessarily legislate. They are about maintaining open lines of communication and building high-quality personal relationships with different actors in the system.” [Official Report Advanced Research and Invention Agency Bill (First sitting), 14 April 2021, c. 15.]

I agree. It is important that we do not over-engineer ARIA’s governance arrangements and obligations in the Bill such that we risk binding the body and creating a bureaucratic process. I am concerned that the need for ARIA and UKRI to agree and annually review an MOU creates just such an administrative burden.

I also agree with Professor Dame Ottoline Leyser when she says that this happens organically. After all, it will be in ARIA’s interests to maintain a dialogue with UKRI to understand the work opportunities and key research opportunities in the UK R&D landscape. The framework document which will be agreed between BEIS and ARIA will set out the broad principles according to which ARIA must interact with other public R&D funders, which will, of course, include UKRI. For this reason I cannot accept the amendment, and I hope that the hon. Member for Brent Central will withdraw it.

[Daniel Zeichner]

I want to question the Minister on the difference between an MOU and the document that she has just referred to. It seems to me that we are not far apart on that. Could we not have an MOU?

[Amanda Solloway]

The framework document will be drawn up by the leadership of ARIA, and it is really important that that is how it will be devised. It will not be a Government-led document; it will be drawn up by the leadership and with ARIA.

[Dawn Butler]

I think the Minister has just described an MOU. A framework document that is agreed by UKRI and ARIA, not by the Government, is an MOU, I believe.

--- Later in debate ---

With regard to the intervention made by my hon. Friend the Member for Cambridge, another example was the design of spacesuits for the NASA programme. When they had finally got round to having female astronauts, they realised that they had to delay a mission—I forget which one it was—because the spacesuits were designed for men. Do we really want to invest £800 million in an agency that addresses some great challenge but then forgets the importance of half of our population in meeting that challenge? I hope that the Minister will accept our amendment.

[Amanda Solloway]

I welcome the hon. Lady to her place.

This amendment concerns the appointment of ARIA’s non-executive members by the Secretary of State. I have been lucky enough to speak to many outstanding women during my time as science Minister: scientists; researchers; and those with other important perspectives who would bring great expertise and value to the ARIA board.

This is an issue that I am committed to more broadly, as the hon. Lady will know, through developing a people and culture strategy that will look to ensure that the UK has the people we need at all levels, working in a culture that gets the best out of everyone and which delivers the best outcomes for the country. That means looking to remove barriers and dismantle any inequalities in the system that limit the ambitions, inclusion and participation of people from any background. I recognise the objective of the amendment and its importance, but I also highlight the inadvertent dangers of placing legislative constraints on the recruitment and appointment of ARIA’s members.

However, I will emphasise for the hon. Lady the provision of the Equality Act 2010, as set out in schedule 3 of the Bill, which I am sure we will come on to discuss. ARIA will be subject to the public sector equality duty. This duty will also apply to appointments made to ARIA by the Secretary of State. That means seeking to advance equality of duty between those who share a protected characteristic and those who do not.

As the hon. Lady will be aware, protected characteristics include sex and gender reassignment, and I believe that this duty should place—as it was designed to do—important issues of gender equality on the appropriate legislative footing. Therefore, I hope that she recognises that there is no need to make any provision in the Bill, and will withdraw the amendment.

Amendment 9 also concerns the appointment of ARIA’s non-executive members by the Secretary of State. In considering it, I will return to the Equality Act 2010, to which ARIA will be subject, and the public sector equality duty. As I have said, I believe that this duty should place, as it is been designed to do, the important issue of inclusion and equality on an appropriate legislative footing. Appointments made by the Secretary of State will follow the governance code for public appointments. The code includes the following principle:

“Public appointments should reflect the diversity of the society in which we live and appointments should be made taking account of the need to appoint boards which include a balance of skills and backgrounds.”

I therefore hope that the hon. Lady recognises that there is no need to make any further provision in the Bill and will withdraw her amendment.

[Kirsty Blackman]

This has been quite an interesting debate and I particularly enjoyed the speech by the shadow Minister; I thought it was very good. However, I did not expect to be discussing women’s underwear during the course of this Bill Committee.

It is the case in relation to things being designed for men that such things happen. We see that if we consider the fact that endometriosis treatments, for example, are few and far between, because researchers and organisations do not put money into researching things that are “women-only problems”, because for some reason we matter less. It is therefore incredibly important that the Government take positive steps in this regard.

Engineering and innovation will be the future for us. I have already said that I represent Aberdeen. We are looking at having a just transition; we are looking at moving Aberdeen away from its focus on oil and gas to a focus on renewable energy and the energies of the future. We will not have those energies of the future or the design and innovation that we will need unless we have diversity in the research environment and unless we have a significant number of people from different backgrounds, all with different life experiences, considering how best to solve problems. For young people considering coming into these organisations, having women and people with other protected characteristics on boards such as that of ARIA would mean that they are more likely to be able to aspire to those roles.

--- Later in debate ---

[Amanda Solloway]

Amendment 10 would require the Secretary of State to seek the consent of the Science and Technology Committee before appointing ARIA’s first CEO. Amendments 31 to 34 would require the proposed chair and CEO of ARIA to be approved by both Houses through secondary legislation.

These amendments reflect the welcome interest across Parliament in ARIA and the recognition that the agency’s success is dependent on the right leadership, as has been mentioned. In regard to the amendments, there is no equivalent precedent, such as in the case of UK Research and Innovation. As such, we will soon launch a robust recruitment process and have designed it such that only the very best candidates will be appointed as ARIA’s first CEO and chair. An experienced and expert panel will be responsible for sifting and interviewing candidates. It will feature the Government’s chief scientific adviser Sir Patrick Vallance and Jo Shanmugalingam, who is director general for science, innovation and growth at the Department for Business, Energy and Industrial Strategy. They will be accompanied by two highly esteemed panellists from the international R&D community, whose names will be announced in due course. The final appointments will be made by the Secretary of State, who will continue to have responsibility for appointing non-executives, including future chairs.

The chair, in consultation with other non-executive members, will appoint future executives, including CEOs. Last week, Philip Bond told us that

“if you want to define the ARPA model at some level, it is this: it is a different model of trust.” ––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 25, Q20]

We trust the chair to make, in consultation with other non-executive members, appointments to the executive board. Placing additional limitations on that would, therefore, be contrary to the important principle of ARIA’s operation. Of course, the Select Committee will be able to call on ARIA’s leadership, to take evidence and understand their vision for the role. That point was made by the Secretary of State when he appeared before the Committee on 17 March. I therefore think that the process is open, fair and robust. It is completely sufficient for finding the right people.

[Daniel Zeichner]

Surely there is a fundamental point here about the relationship between Government and Parliament, and exactly the same point could be made about every single kind of appointment. This is a power grab by Government. The Science and Technology Committee would behave perfectly properly in making any kind of assessment. Why are the Government attacking Parliament in this way?

[Amanda Solloway]

As I previously explained, there is no precedent in the system. We will be recruiting in the same way as we do for UKRI, and it does not go into legislation. I am very confident that we will have a full and robust process for appointing the chief executive. I therefore think that this is an open, fair and robust process. It is completely sufficient for finding the right people to be the chair and chief exec of ARIA and to make it a success. As such, I hope that the amendment will be withdrawn.

[Stephen Flynn]

I want briefly to reflect on a couple of the Minister’s remarks. She has twice referred to the fact that there is, of course, no precedent to what has been suggested and used UKRI as an example. However, it is possible to make freedom of information requests of UKRI, and the organisation is subject to public contract auditors, so the comparison is not fair or just. I respectfully suggest to the Minister that it is apples and oranges, and I think she needs to reflect on that

The Minister also said that she does not want to infringe on the principle of ARIA. What about the principle of scrutiny? What about the principle of Parliament playing its role in that process? Does that mean nothing to the Government? The hon. Member for Cambridge hit the nail firmly on the head with his final comments. The relationship between Government and Parliament is an important one, and I find it utterly bizarre, as I said earlier, that a group of MPs who were all elected on a platform of taking back control are so happy to give it away to a single individual. Surely they can all see how utterly bizarre that is, and how the public will reflect on that with complete and utter dismay.

I will reflect briefly on the debate. I am sure that many of the points will be raised again later, particularly in relation to FOI, public contracts and the sleaze in which the Government are obviously enveloped. I have to admire the courage of the hon. Member for Newcastle-under-Lyme, who has tried incredibly hard to defend the Government. I would suggest that perhaps he is trying to defend the indefensible. I am sure the Government Whip is incredibly impressed at the hon. Gentleman’s hard work in that regard, but he needs to be mindful about how tone deaf he perhaps sounds.

The very notion from the hon. Member for Loughborough that we cannot mention Dominic Cummings, even though he is the architect of the Bill, is utterly absurd. Did she not watch his evidence?

Advanced Research and Invention Agency Bill (Fourth sitting)

Amanda Solloway Excerpts

Tuesday 20th April 2021 Public Bill Committees

[Chi Onwurah]

It is a pleasure, to serve under your chairmanship, Mrs Cummins, and to return to our deliberations on the Advanced Research and Invention Agency Bill.

Both amendments concern the diversity and characteristics of the members of the board of the Advanced Research and Invention Agency. We have heard repeatedly in our deliberations that the board has a significant amount of power and autonomy. In our view, it suffers from lack of oversight, which the amendments are designed to address.

Amendment 7 would require the Secretary of State to have regard to the collective experience of ARIA’s members in the devolved nations when using the power of appointment. The Labour party believes that science can be an engine of progress for society, and that it needs to be by and for everyone, not a private cashpoint for the few. It is essential that everyone in each region of the UK benefits from the creation of ARIA.

The Government have made many levelling-up promises over the past 18 months, just as they have made many promises to support science, but it is reported that they are now on track to miss the R&D target spend of 2.4% of GDP, following the cuts to international science spend, which were debated in the Chamber this morning, and the failure to provide support to medical research charities during the pandemic, forcing them to make sweeping cuts. The Royal Society has said that the Government’s actions, such as the cuts to overseas development aid and science, and the lack of clarity until the last moment about Horizon European science funding are undermining the ambition for the UK to be a science power. We do not want the people of this country to be short-changed by the Bill, when it comes to the levelling-up agenda.

Levelling up is not possible without utilising the skills and experience of all those who have extensive knowledge of scientific research and knowledge in each nation of the United Kingdom. Each of the devolved nations possesses subtle and significant differences in their research landscapes. Our amendment would require the Secretary of State to have regard to the relevant experience of ARIA members when making appointments. We cannot expect ARIA to function effectively for every area of the Union, if its key decision makers and knowledge base are restricted to one narrow region of England. I am sure the Minister agrees.

Labour recognises that, as does UK Research and Innovation. In November 2020, UKRI chairman Sir John Kingman told the Select Committee on Science and Technology:

“We have structures that involve regular consultation with the devolved Administrations and the funding agencies in the devolved Administrations.”

He also told the Committee that this good working relationship was in contradiction to the decision not to have board-level regional representation. He said:

“It was decided at the time that there should not be representatives of the devolved countries on the board. In practice, I would say that there are two members of the current board.”

As we see, UKRI has had to struggle against the lack of representation on its board, so let us make it official and clear from the beginning that ARIA is a national body. Research and development is a vital driver of growth, and we must utilise ARIA in each region and nation to unlock new markets and create jobs. We all want significant improvement in the way in which the benefits of research and development are shared across our nation, and we want those who contribute to it to come from all areas of our nation. I therefore hope the Minister welcomes amendment 7, which would ensure that.

In the evidence sessions, we heard about the importance of public service in attracting good people to the ARIA board. Tabitha Goldstaub, the co-founder of CognitionX and the chair of the AI Council, said:

“The most important thing is that I just kept hearing time and again from the community I spoke to, similarly to what the gentleman from DARPA said, that this is a time to serve. People really want to find a place to do research that saves people’s lives, especially in the AI eco-system.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 52, Q50.]

That desire to serve should be reflected by ensuring that we have people from across our nation serving. That is why we are proposing amendment 7.

Amendment 8 would require the Secretary of State to have regard to the diversity of the board members, including the representation of those with protected characteristics. The points that we are raising here were discussed in a previous debate on the SNP amendment grouped with one of our amendments, so I will not reiterate them, but I expect it to be recognised that science has a diversity problem. We want ARIA not to exacerbate that but to send a clear message against it. We are not looking to set specific quotas for ARIA, but we want to send a clear message to the scientific community and ARIA’s chief executive and chair, whoever they may be, that diversity is essential to successful scientific research. High-risk, high-reward research should not exclude women or representatives from across our nations and regions.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)]

Amendment 7 concerns the Secretary of State’s appointment of ARIA’s non-executive members. I have spoken to many experts, scientists and researchers about the creation of ARIA over the past six months, and one thing that has been made crystal clear to me is how important finding the right people will be to ARIA’s success. That point was reiterated to this Committee in the evidence session last Wednesday. The importance of finding the right people extends to ARIA’s non-executive members, and Professor Bond offered a valuable perspective on that. He was clear that we need a balance on the board and that it should include radical thinkers and those with different backgrounds in academia and industry. I was struck by his advice that we should have a board that was,, in his words “small” and “slightly unusual”. That is an important point.

We are looking to foster a culture that takes big bets and pursues transformational ideas. We have heard over and again how rare are the people who can do that. The difficulty in finding the mix of people to best support that activity means that we should impose as few constraints as possible and cast the net as widely as we can. That is a strong argument against placing inflexible legislative constraints on the background and experience of the limited number of people we are looking for before we have been begun that process.

We will conduct robust appointment processes that will follow the governance code for public appointments. That code includes principles of fairness, merit, diversity and integrity, which speak to the intention of the amendment.

[Daniel Zeichner (Cambridge) (Lab)]

Will that include weirdos and misfits?

[Amanda Solloway]

I can confirm that we are looking for incredible people; I have made that clear.

There is another area where we are in danger of over-engineering ARIA: in governance arrangements. Although I share the belief of the hon. Member for Newcastle upon Tyne Central that a well-balanced board will be important for ARIA, I also believe that there are sufficient incentives and processes to support that without any further legislative constraint. For that reason, I encourage the hon. Lady to withdraw the amendment.

[Chi Onwurah]

I thank the Minister for her response. Will she say whether there are any factors that the Secretary of State should consider when making these appointments? For example, schedule 9 to the Higher Education and Research Act 2017 establishes that the Secretary of State must consider the collective experience of the UKRI board when making appointments. Are there no factors that should be considered in the case of ARIA?

[Amanda Solloway]

As I said, we will have a really robust appointment process. All those things will be taken into account to get that incredibly special person that we need to lead ARIA.

Amendment 8 also concerns the appointment by the Secretary of State of ARIA’s non-executive members. As I have said, I strongly believe that we should impose as few constraints as possible and cast the net as widely as we can in finding ARIA’s members. There is a real risk that placing inflexible legislative constraints on the background and experience of that limited number of people we are looking for will hamper our ability to find the right person.

I do, however, recognise that it is important for ARIA to be fully connected to the outstanding R&D activity in Scotland, Wales and Northern Ireland. That will require ARIA to build strong partnerships with institutions and businesses in all four nations. I echo comments from elsewhere about the fundamental importance of relationship building to this activity, but it is not necessarily possible to legislate for that. In the recruitment for the CEO and chair, we will work with the devolved Administrations and stakeholders across the United Kingdom to broaden the search for potential candidates, to encourage geographic diversity from the outset of these discussions. That approach, seeking as far as possible to ensure that the pool of people considered for positions in ARIA is representative of the geographic diversity of the UK, is the right one. ARIA would ultimately not be served by extensive and specific requirements that limit the options. I therefore cannot accept the amendment.

[Chi Onwurah]

I thank the Minister for her response. We are hearing again that ARIA is not to be subject to regulation or oversight, regardless of what form that takes. The flexibility of which the Minister speaks can be seen by others as cronyism or the opportunity to ensure cronyism. The public are sick of mates being appointed without oversight. As I said in my intervention, other boards, such as the UKRI board, are required to consider the experience of the board before making further appointments. Would the Minister consider it acceptable if the entire board came from, say, Cornwall, which is not very representative, or had expertise only in nanotechnology? Cornwall is a very nice place and nanotechnology is an excellent scientific subject, but we heard from witnesses about the importance of having diversity of thought, background and experiences.

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[Chi Onwurah]

The hon. Member makes an interesting point, and it would be excellent if we understood better how the board would collectively exercise responsibility. When we talk about a board exercising collective responsibility, that is absolutely true. That is right, and it is what happens in the private sector. I would be interested to know whether the reporting requirements on private sector boards will apply in this case, but this is public money. It is £800 million of public money—taxpayers’ money. Particularly as we come out of a pandemic and recession, there are many worthy recipients of that money. Is the hon. Member truly saying that it should be spent and directed by people who have no accountability and cannot be removed? The Secretary of State is responsible for their getting the money, but will have no ability to remove them, no matter how unfit they prove themselves to be. On the basis that the amendments offer the Secretary of State further powers to ensure the fitness of the board, I hope that the Minister will accept them.

[Amanda Solloway]

Amendment 11 would extend the right of the Secretary of State to refuse an executive member appointment to include refusal of consent where a person is

“unable or unfit to carry out the functions of the office.”

It is important that the Secretary of State’s refusal rights are limited to where it is necessary and expedient on national security grounds. The freedom for the chair to hire the executive leadership team is a key feature of ARIA’s independence from Government. The Secretary of State will hire a top-quality non-executive team who have the experience and expertise to oversee ARIA. We should trust their judgment to hire an exemplary set of executive members. I remind the hon. Member for Newcastle upon Tyne Central that the Secretary of State will appoint the inaugural chief executive officer and will set the tone for the quality of the future executive member hired by the chair, and I hope she will withdraw her amendment on that basis.

I will now move to amendment 12, building on my comments with respect to amendment 11. Once appointed, the terms of employment for executive members’ contracts are determined by the chair, with the consent of the Secretary of State, and only after consulting other non-executive members. They are expected to include standard provisions that would allow the chair to remove an executive member from office if that person is deemed unfit or unable to carry out the functions of the office.

[Chi Onwurah]

I thank the Minister for her earlier comments. Can she clarify what she means when she says, “They are expected to include standard provisions”? Is she saying that they will include the explicit provision for the CEO and the chair to remove members, and under what criteria or circumstances?

[Amanda Solloway]

To reiterate, and building on my previous comments, contracts are determined by the chair. The contracts that people will have are to be negotiated. Furthermore, in extremis, the Secretary of State may remove the chair and other non-executive members if he or she is particularly concerned by the quality of executive members recruited by the chair. It is for those reasons that the amendment is not necessary, and I hope the hon. Lady will not press it.

[Kirsty Blackman]

We have asked an awful lot of questions about the appointment of the CEO and chair. Does the Minister understand that her answers have not given us comfort? To say that the roles will be appointed by the chair and the chief executive does not help us a huge amount, because we are not very happy about the process of appointing those people, so for them to be able to appoint other people does not help us in any way, shape or form. Having more safeguards in place would give us comfort that those people will be fit to do the job.

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I fully and absolutely understand why money is needed to go into research, but there is a real risk that in future we will lose public support, which is why it is so important that we get these things right. I would just caution that, in a few years’ time, the Government—not necessarily this Government; hopefully, my Government—might find themselves wanting to deal with dodgy advisers, and I want us to ensure that we have the mechanisms to deal with that. This Government are leaving themselves open to some real risks, because they are putting themselves in a position where they do not have the tools to hold to account people who sometimes may not quite be what they first seemed.

[Amanda Solloway]

On amendment 13, the framework document to be agreed between the Department for Business, Energy and Industrial Strategy and ARIA, which will complement the Bill, will commit ARIA to the code of conduct for board members of public bodies, which sets out the personal and professional standards expected from board members, and forms part of individual members’ terms and conditions of appointment.

The code of conduct 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. I believe that that principle-led, non-legislative approach is appropriate. Indeed, it is the standard approach taken by many other arm’s length Government bodies, including UKRI. That approach allows ARIA to manage conflict of interest risks in a flexible way that is best suited to its operations.

I agree wholeheartedly with what Dr Peter Highnam said last week about what we should be looking for in the CEO to build the right ARIA culture:

“Honour in public service is top of the list.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 39, Q32.]

We will instil that sentiment in ARIA from the outset, starting with the recruitment of the chair and the CEO. We also have an additional assurance, in that the Bill includes a reserved power to introduce additional procedure, in law, should that be necessary once ARIA is operational. I believe that the hon. Member for Newcastle upon Tyne Central should take great comfort in the reserved power set out in paragraph 11, and I ask her to withdraw the amendment.

[Chi Onwurah]

I thank the Minister for her response. I take most comfort from her unequivocal statement that honour in public service is a key characteristic that will be looked for in the chief executive officer of ARIA, because I had not heard such a strong statement about the need for honour, or even for public service, in ARIA’s mission. I take more comfort from that than from the confirmation that ARIA board members will be subject to existing rules about conflicts of interest. As we have heard, those rules are not sufficient. For example, in one of the recent scandals it was found that the Secretary of State for Health and Social Care owned shares in a company that had received a significant contract from his Department, and there were questions about whether the requirements for declarations of public interest had been met.

We in the Opposition have said a number of times that ARIA is an organisation that will necessarily give rise to important conflicts of interest, so it needs more detailed procedures and processes. I do not want to detain the Committee, however, and I hope that the Minister will look at the issue in the future. I will not push the matter to a vote, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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[Stephen Flynn]

Absolutely; my colleague is spot on. As I said, this is not new, and the example she has provided is another clear indication of this UK Government’s failure to take cognisance of Scotland’s needs. If the Minister wishes to stand up and tell me that Scotland will get its fair share and we will get a Barnett sum spent in Scotland, I will be more than happy to withdraw my amendment; otherwise, I will push it to a vote to ensure that Scotland’s needs are met.

[Amanda Solloway]

I shall turn first to amendments 14 and 30. The objective behind them is really important; we have spoken extensively about the need for ARIA’s funding to reach beyond the usual suspects. In my view, that applies to where that funding goes as much as to the formality of the research setting. That also reflects the wider Government priority. The R&D places strategy, due to be published this summer, represents a key part of our ambitions for R&D and innovation. It builds on the approach set out in the R&D roadmap.

The purpose of the places strategy is to ensure that R&D benefits the economy and society in the nations, regions and local areas across the United Kingdom, contributing to the Government’s wider levelling-up ambitions. I would like to make one key point about ARIA: as discussed previously, many of the details of ARIA’s operation will be set out more fully in a future framework document. I suggest that that document is the appropriate place for stipulations on the content of ARIA’s annual report.

It is extremely likely that ARIA will be required to provide in that report the type of geographical information sought in the amendments, but it would be beneficial to consider that in the round, alongside the other information that we might require ARIA to include in the report. The most appropriate and helpful information for ARIA, or Government bodies generally, to provide may also change in the future. To include specifics on the face of the Bill is impractical in that respect, as that would be inflexible.

On amendments 16, 17 and 18, ARIA will seek transformative scientific and technological breakthroughs, the outputs of which will have benefits across the United Kingdom. For example, a leap forward to driverless technology could create economic benefit to improve the quality of life across the UK. The attraction of the ARPA model is that its funding is laser-focused on achieving transformative outcomes. While £800 million up to 2024-25 is a meaningful amount of funding, it is a small proportion of the R&D spend. For those reasons, I urge the hon. Member for Newcastle upon Tyne Central to withdraw her amendment.

[Chi Onwurah]

I thank the Minister for her response. I am pleased to hear that she believes that the information requested in amendment 14 is likely to be included in the reporting requirements of ARIA. On that basis, I am—well, “happy” is not the right word, but I will withdraw amendment 14. I do so also on the basis that she understands its importance.

I feel, however, that in her response to amendments 16, 17 and 18, the Minister has had it both ways: she is saying that the benefits will be felt across the nation but that a requirement to have regard for the benefits across the nations and regions of the UK is too much. Its borders may move, but the geographical reality of our United Kingdom as a country of nations and regions will, I hope, remain, and so a requirement to have regard to the benefit across the nations and regions seems eminently sensible—indeed, it is a minimal requirement. I would like to press amendment 16 to a vote later, but I beg to ask leave to withdraw amendment 14.

Amendment, by leave, withdrawn.

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[Chi Onwurah]

I rise briefly to speak in support of the amendment. As the Bill stands, ARIA will not be subject to freedom of information requests. If there is no requirement to report on gender balance and the gender pay gap, will we have any understanding of the way in which ARIA is reflecting the gender diversity that we hope to see in the organisation?

[Amanda Solloway]

Again, I draw hon. Members’ attention to the existing obligations under the public sector equality duty and the Equality Act 2010, to which ARIA will be subject. Under the public sector equality duty, ARIA must, in carrying out all its functions, have due regard to the need to eliminate discrimination, harassment, victimisation and any other conduct; advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it; and foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

This is a strong statutory duty that will apply to the recruitment and remuneration of ARIA staff. Should ARIA have 250 employees, there would also be a requirement to publish its gender pay gap information, based on the point at which the data becomes statistically significant and supports a good analysis.

I believe this specific duty is sufficient for ARIA, as indeed it is for all other employers. I do not think that any further provision in the Bill is required and I hope the hon. Member will withdraw the amendment.

[Kirsty Blackman]

I understand that there are public sector duties in relation to this issue, but ARIA could easily fulfil all those by employing only men—it could just pay them all at whatever level because they would all be men. It would fulfil its duties in that regard because there would be no gender pay gap, but it would be incredibly important for us to know that ARIA had only fulfilled its duties by taking that step, because it is public money that is being spent.

While Scotland is still part of the Union we want to be able to scrutinise how the money is spent. It is important that we have information on whether there is a gender pay gap in ARIA, whether or not it has 250 employees. Again, it is a public sector organisation spending public money but exempt from public procurement regulations and exempt from FOI. That means we are not able to adequately scrutinise the money spent, to ensure that there is diversity and fairness, making sure that women are not only in the lower roles in the organisations, but are starting at or being promoted to higher roles.

What the Minister said was not strong enough for me; I would like for her to have reassured us that the MOU will have that duty written into it. I would like to push the amendment to a vote.

Question put, That the amendment be made.

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Question proposed, That the schedule be the First schedule to the Bill.

[Amanda Solloway]

I welcome the detailed discussion that schedule 1 has attracted. It is to be expected since the schedule sets out ARIA’s governance arrangements, including the make-up of the board and how members and staff are appointed and removed. There are elements of schedule 1 that are standard to most statutory corporations and that mirror the measures on UKRI in the Higher Education and Research Act 2017. Those include the paragraphs about ARIA determining its own procedures, the delegation of functions by ARIA, and the preparation and laying before Parliament of audited accounts and annual reports.

I reiterate that ARIA will be subject to parliamentary scrutiny in the same way as other statutory corporations, both by Select Committees, including the Science and Technology Committee—I am sure that my hon. Friend the Member for Newcastle-under-Lyme and the hon. Member for Brent Central will contribute to that fully—and by the National Audit Office, which is expected to report in detail on ARIA for discussion at the Public Accounts Committee. With reference to this morning’s discussion, it is therefore clearly the case that ARIA will be held to account.

As with the rest of the Bill, in schedule 1 I have been very mindful of the need to strike a balance between providing ARIA with the independence to operate freely and ensuring sufficient Government and parliamentary oversight to protect the use of public funds. I also emphasise that the creation of ARIA has been welcomed by the UK research and innovation community, and I again point to the integrity of that community.

I will explain the rationale behind the key paragraphs that are specific to ARIA and that have not yet been discussed in relation to the amendments proposed to schedule 1, starting with those on membership. Paragraph 2 sets out ARIA’s membership. Its executive members must include the chief executive officer and chief financial officer, and between two and five other members. As we heard from Professor Philip Bond last week, that number reflects the need for ARIA to be a nimble agency, with agile decision-making structures.

ARIA’s non-executive members must include the chair, the Government chief scientific adviser and other members appointed by the Secretary of State. The Government chief scientific adviser will provide technical expertise and a helpful and effective link between ARIA’s activities and those of Government, while limiting any direct interference from Ministers. Non-executive members must comprise the majority of ARIA’s board, which is a matter of good governance.

Paragraph 3 sets out that the first chief executive officer will be appointed by the Secretary of State, ensuring that the initial leadership sets the right foundation for ARIA. Thereafter, executive appointments will be made by the chair, such that ARIA can maintain its independence from Government.

Paragraph 4 sets out that the chief executive officer must be appointed for a fixed term for a maximum of five years, and that a person cannot be appointed as CEO more than twice. That approach will ensure strong leadership, energy and renewal at CEO level, and we have seen that successful approach produce results for DARPA.

As is standard for statutory corporations, paragraph 14 states that ARIA must prepare annual accounts that must be sent to the Secretary of State and the Comptroller and Auditor General. The CAG must examine, certify and report on statements of accounts and send a copy of the report and certified statement to the Secretary of State, who in turn must lay copies before Parliament. As the Committee will be aware, the NAO is also able to conduct value-for-money examinations of ARIA, as per the National Audit Act 1983. The laying of annual accounts and reports before Parliament, combined with the NAO examination represent an opportunity to scrutinise ARIA’s activity and its use of public funds, as is standard for public bodies.

I would like to take this opportunity to address a point raised by the Secretary of State on Second Reading which left some ambiguity. He said that there was a commitment in the Bill to audit ARIA’s procurement activities. Any procurement spending will of course be included in ARIA’s accounts and be subject to audit in the normal way, according to paragraph 14, but we have made a further non-legislative commitment to explore how ARIA’s procurement activities specifically might be audited and reported on as a counterbalance to the exemption that the Bill gives ARIA from obligations on a “contracting authority” under the public contracts regulations. That is not within the Bill, as the Secretary of State’s comment could be taken to imply, but will none the less be an additional commitment to transparency and good governance for ARIA.

Schedule 1 contains provisions where necessary for ARIA to be able to operate as a statutory corporation and it is therefore essential that it remains part of the Bill.

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[Kirsty Blackman]

I just want to add a couple of things. The hon. Member for South Basildon and East Thurrock gave us what he thinks the mission for ARIA is. Unfortunately, everybody I have heard speak has a different idea of what the mission for ARIA is.

I thought the statement of policy intent was really useful in telling us the mechanics of how ARIA will work. It is really useful in saying why it is set up in a particular way, but it does not actually tell us what the point of it is. Reading through the Bill, I realised not just that ARIA does not have a mission, but that it does not have a direction. Is ARIA about funding scientific things that are not otherwise funded? Is it about increasing productivity, which is mentioned too? Is it about economic growth? Is it about improving the lives of people who live in the UK or elsewhere? Is it about solving scientific problems? I do not know which of those things it is about.

Even if the Government are unwilling to accept the amendments that we have tabled—they should accept them, because, as I have explained, £200 million a year on solving climate change is not a bad thing, even though I think we should be spending significantly more than that—they should be clear about the point of ARIA. How are we are measuring performance? How do we know whether it has succeeded? Do we know that it has succeeded if it has spent lots of money? Do we know that it has succeeded if it has funded lots of projects? Do we know that it has succeeded if it has made a difference to the level of productivity within science, research and development in the UK, or to productivity in the UK in general? Is it succeeding if it is coming up with technologies that will improve lives?

We do not know what we are measuring ARIA against, so the Government will presumably—as they do with most things, and as most Governments do—say that ARIA is a success, whatever happens. However, I want to know what criteria it is being measured against, so that we can actually judge it. If it is what the hon. Member for South Basildon and East Thurrock suggested—if ARIA is to fund scientific projects on the edge, regardless of whether that is of an ellipse or a circle—that is fine, because then we can judge it against that. However, I am not clear that that is the Government’s intention.

[Amanda Solloway]

We heard from some incredibly experienced witnesses last week, with much discussion focused on the question of prescribing ARIA a research focus. Inevitably, cases were made both for and against such an approach. The case made for the approach often referred to DARPA and DARPA-like agencies, but I remind the Committee that ARIA is not DARPA, ARPA-E or ARPA-H. Although we have learned some incredibly valuable things from those agencies, my primary consideration as we develop ARIA has been that it is the right approach for the UK’s R&D system.

Professor Dame Ottoline Leyser said to us last week—[Interruption.]

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On resuming—

[Amanda Solloway]

Professor Dame Ottoline Leyser said to us last week:

“The needs of the country—the priorities that the Government and Ministers set to solve particular challenges for the nation—fall very much within the UKRI remit”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 8, Q4.]

Achieving net zero remains one of this Government’s top priorities—demonstrated by the Prime Minister’s 10-point plan—as it is for parties across the House. However, we should continue to successfully mobilise the structures we have in place to respond to the Government’s priorities, including through the industrial strategy challenge fund’s eight clean growth challenges.

We should use ARIA to do something different. Otherwise, I believe we are at risk of causing confusion and duplication of responsibilities. A key difference will be creating a space in the R&D funding system to give autonomy to visionary people. ARIA’s leaders will invite and scrutinise a range of proposals, each of which is defined by a single cohesive and coherent programme objective. That could be a measure towards achieving net zero, or it could be in any other field. ARIA will select the most talented programme managers with the most exceptional idea, and give them the opportunity to discover the next transformational breakthrough.

As we heard in evidence from Nesta and UKRI last week, ARIA is about conducting research in a different way, through new funding mechanisms and giving autonomy to experts. It is not about research in any one field. I agree that is the right approach. It is for that reason that I cannot accept the amendments. I hope the hon. Members will withdraw their amendments. Finally, if ARIA is successful, who knows: we could be saying, “Beam me up, Scotty!”

[Chi Onwurah]

I thank the Minister for her comments, particularly for that final reference, the spirit of which I wholeheartedly agree with. However, I do not find her arguments against the amendment compelling, and I would like to push it to a vote.

Question put, That the amendment be made.

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Question proposed, That the clause stand part of the Bill.

[Amanda Solloway]

Clause 2 sets out ARIA’s functions. As described in the policy statement published on 19 March, ARIA is expected to facilitate a programme manager model. Programme managers lead research programmes designed around highly ambitious scientific or technological visions. Within their overarching programme, programme managers will distribute funding across a range of projects. Individual projects might vary in size, length and scientific discipline, and may be conducted by different institutions or collaborative groups. The projects are not stand-alone, but rather contribute to the overall aims of the programme.

An important feature of clause 2 is ARIA’s power to commission or support others to conduct research, to develop and exploit scientific knowledge, or to collect, share, publish and advance scientific knowledge. While ARIA is expected to perform some research in-house, a significant proportion of its activities are likely to take place externally. For example, programme managers are expected to commission individual research projects from experts across the public and private sectors.

It is vital that ARIA is able to support others contributing to its ambitious programme goals in a flexible way. Subsections (2) and (4) set out the ways in which in exercising its functions ARIA may support others. They should be read in conjunction with supplementary powers, which are set out in paragraph 17 of schedule 1. For example, ARIA may provide financial support through a range of innovative funding mechanisms. That may include making grants, loans and investments in companies or other entities, or any other payment, such as prizes.

A diversity of funding approaches has been integral to the ARPA model’s success in the US—we heard from Dr Peter Highnam—and it will encourage ARIA to experiment even more. However, we will balance experimentation with the need to safeguard public funding. The provision of financial support by ARIA is subject to any conditions that are attached to grant funding given by the Secretary of State to ARIA in clause 4, to which I am sure we will return shortly.

Finally, science is an international endeavour. Accordingly, ARIA will be able to fund, conduct, commission and support research internationally. Sir Adrian Smith and Sir Jim McDonald were clear about the importance of ARIA participating in international research in last week’s evidence session. Clause 2(5) and (6) state that ARIA’s activities are not restricted to the United Kingdom, but in exercising its functions ARIA must have regard to the desirability of doing so for the benefit of the United Kingdom, through economic growth or a benefit promoting scientific innovation and invention, or improving quality of life.

Clause 2 and the functions really get to the heart of the value that ARIA will add to our UK research and development system, and equip it for the exciting role that it will play. I recommend that it stand part of the Bill.

[Chi Onwurah]

I thank the Minister for her comments. It is clear from this afternoon’s debate that clause 2 does not set out what ARIA will do or achieve, or what its real function will be, but we will not oppose it standing part.

Question put and agreed to.

Clause 2 accordingly ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Michael Tomlinson.)