National Security and Investment Bill

Debate between Bob Seely and Lord Sharma

2nd reading & 2nd reading: House of Commons
Tuesday 17th November 2020 Commons Chamber

[Alok Sharma]

I know that my hon. Friend cares very deeply about this issue and, indeed, she and I have had discussions about it. I would say to her that the Bill is agnostic as to the domicile of an acquirer. I think that that is right and proper, but it is also right and proper that we look at every single transaction on a case-by-case basis. Let me assure her that if there are security concerns with any transaction, of course we will act.

[Bob Seely (Isle of Wight) (Con)]

There is a lot in the Bill that I am sure we all support, but does my right hon. Friend accept that without a public interest test, a character test, an anti-slavery test and a human rights test, the definition of national security being offered here is extraordinarily narrow and problematic to the broader age that we live in? Does he accept that there will be debate around that point—about what constitutes national security in this age?

--- Later in debate ---

[Alok Sharma]

My hon. Friend raises an incredibly important point. Of course, self-referral, as he refers to it, is possible. In fact, if any company has particular concerns as to transactions that they may be undertaking or part of, they will get a swift assessment from the Government.

I make the point, though, that we will not be effectively publicising call-ins when they take place. Clearly, at the end of a transaction, if there was a particular remedy, that would be made public. It is also worth pointing out that the Government will publish an annual report, not on individual transactions, but on the scope of the transactions and sectors that have been looked at. I hope that that will give future investors an opportunity to consider the type of transactions in which the Government have a particular interest.

The final measure that I want to detail relates to the overseas disclosure of information relating to a merger investigation. Under section 243 of the 2002 Act, there is a restriction on the ability of UK public authorities to disclose merger information to overseas authorities unless the consent of the entity has been given. Clause 59 of the Bill removes that restriction. That will strengthen the Competition and Markets Authority’s ability to protect UK markets and consumers as it takes a more active role internationally, allowing the UK to set up comprehensive competition agreements with our international partners.

In conclusion, I hope that right hon. and hon. Members on both sides of the House see that the Bill updates our national security powers in a proportionate, pro-trade and pro-business manner.

[Bob Seely]

Unless I missed it, there is no definition of national security in the Bill. Will the Secretary of State provide a definition or will he commit to putting one in the Bill to give us something to work with?

[Alok Sharma]

My hon. Friend raises an important point. As he will know, and I am sure appreciate, I am not going to be able to set out every single test that we will apply when it comes to a national security assessment. The application of the tests will, of course, be based on information that we garner from across Government. He can be certain that in using the powers, the Government will act in a quasi-judicial fashion, we will have regard to the statement of policy that has been published, and we will act, again, in accordance with public law principles of necessity and proportionality. I also made the point earlier that any decision can, of course, be challenged by an affected entity.

Oral Answers to Questions

Debate between Bob Seely and Lord Sharma

Monday 1st July 2019 Commons Chamber

[Mr Bob Seely (Isle of Wight) (Con)]

6. What steps her Department is taking to increase working people’s incomes through universal credit.

[The Minister for Employment (Alok Sharma)]

One of the key transformations that universal credit provides is to support people who are in work, ensuring they can increase their earnings and develop in their career. It removes the 16-hour cliff edge, which held so many back on legacy benefits, and gives improved, tailored support through jobcentre work coaches.

[Mr Seely]

Will the Minister join me in thanking the excellent DWP staff on the Isle of Wight, some of whom I met in Newport a few weeks ago? I am sure he and the team will seek to make further improvements to universal credit, but it was clear to me, talking to those staff, that universal credit enables them to do more good for more people than the inflexible system that preceded it.

[Alok Sharma]

I thank my hon. Friend for being a huge champion for the Isle of Wight and working so well with his local jobcentre. I am very pleased about that and he is absolutely right. As a result of universal credit, people are able to get the support—that one-to-one support—that is so vital. Since 2016, an extra £10 billion has gone into the system.