Oral Answers to Questions

Debate between Chi Onwurah and Amanda Solloway

Tuesday 18th April 2023 Commons Chamber

[Amanda Solloway]

All the councils that are able to participate in the scheme have received the money from the Government, with 99% of local authorities onboarded so far. Ninety five per cent. of councils are processing claims, with the majority of applications having been accepted and paid. However, we are working to understand the specific problem in Eastleigh, and I will update my hon. Friend as soon as I can.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

T5. The experience of my constituents who are on prepayment meters is atrocious, and today’s announcement from Ofcom will do absolutely nothing to protect vulnerable groups such as those with Alzheimer’s, the under-fives and those who are over 75 but under 85. Will the Secretary of State answer the question he did not answer earlier, and say why he is not protecting the vulnerable from prepayment meters and the lack of energy support?

Newport Wafer Fab Sale

Debate between Chi Onwurah and Amanda Solloway

Thursday 15th July 2021 Commons Chamber

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

Of course, Mr Speaker. The Government recognise Newport Wafer Fab’s value as a company, and its contribution to consortia based at the south Wales compound semiconductor cluster. The Government are committed to the semiconductor cluster and the vital role that it plays in the UK’s economy. The Welsh Government have previously provided financial support to the company, as economic development is devolved and the responsibility of the Welsh Government.

Under the Enterprise Act 2002, the Government have powers to intervene in mergers and takeovers that raise national security concerns. We have recently strengthened those powers in the National Security and Investment Act 2021, which is expected to come into force at the end of this year, but it is right that commercial transactions are primarily a matter for the parties involved. The Government have been in close contact with Newport Wafer Fab, but do not consider it appropriate to intervene in this case at the current time.

We will continue to monitor the situation closely, and, as part of that, the Prime Minister has asked the national security adviser to review this case. Separately, work is under way to review the wider semiconductor landscape in the United Kingdom. As I am sure the House will appreciate, I am unable to comment on the detail of commercial transactions, or of any national security assessment of a particular case.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I congratulate the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) on securing the urgent question.

Newport Wafer Fab is a symbol of British innovation and world-class employment—not just its 450 employees but the wider regional semiconductor cluster. It is also a testament to the long-term role of public investment in strategic economic planning by the Welsh Government, so the priority must be to secure a viable long-term future for what is the UK’s largest semiconductor manufacturer. With European automotives protesting over chips shortages and promising to ramp up domestic production, it is clear that Newport Wafer Fab is a strategic economic asset.

Labour welcomes investment in the business, as we welcome almost all inward investment in thriving British industries, but, given the importance of semiconductors to our country’s critical infrastructure, there is a clear case for examining this on national security grounds, and it is a pity that the Minister did not make it. Global competition to secure microchip development is accelerating. Our national security interests require a strong position in this contested market, so how will the Minister now ensure that this vital national economic and technology asset is protected? Will she use the powers in the National Security and Investment Act 2021 to urgently scrutinise this takeover? If the sale is blocked on national security grounds, will the Government work creatively and urgently to secure the financing that the business needs? All options must be kept on the table, including a role for potential public equity investment.

As Labour argued during the passage of the NSI Act, the Government have consistently outsourced British national security and economic interests, because Ministers have prioritised market zeal over British security, as in 2012 when they let the Centre for Integrated Photonics, a prize British research and development centre, be taken over by Huawei. That is why Labour is calling for the national security and public interest test regime to be strengthened. This is a critical test of whether the Government are willing to use these new powers or not, which goes to the heart of what kind of industrial strategy we have and what kind of country we want to be.

[Amanda Solloway]

As laid out in the integrated review, China is a systemic competitor. The scale and reach of China’s economy, the size of its population, its technological advancement and increasing ambition to project its influence on the global stage, for example through the belt and road initiative, will have profound implications worldwide. Open, trading economies such as the UK will need to engage with China and remain open to Chinese trade and investment, but they must protect themselves against practices that have an adverse effect on prosperity and security. Co-operation with China is vital in tackling transnational-type challenges, particularly climate change and biodiversity loss.

The UK wants a mature, positive relationship with China, based on mutual respect and trust. There is considerable scope for constructive engagement and co-operation, but as we strive for that positive relationship, we will not sacrifice either our values or our security. It has always been the case that where we have concerns, we will raise them, and where we need to intervene, we will. The Government have a range of legislative and regulatory powers to protect infrastructure and critical services, including the new National Security and Investment Act 2021. The NSI Act is nation-agnostic: acquisitions should be considered on a case-by-case basis, which will help to ensure that the Act is not discriminatory and that we uphold our World Trade Organisation obligations.

Oral Answers to Questions

Debate between Chi Onwurah and Amanda Solloway

Tuesday 6th July 2021 Commons Chamber

[Amanda Solloway]

NETPark is an excellent example of how science parks bring together talented communities to turn ideas into global successes. As home to the two of the UK’s Catapult centres, NETPark is playing a vital role in helping us to build back better across the United Kingdom. I would be delighted to visit not just NETPark but the wider north-east, to see how the region is capitalising on its innovation and technology strengths in order to support its local economy and communities. I know that my hon. Friend enjoyed his visit there so much that he went back week after week.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

On Friday I visited Newcastle University’s dementia research centre and spoke to the wonderful scientists striving to cure this terrible affliction. But I also heard of the desperate conditions that early career researchers face, with Government funding commitments abandoned; grants ending as covid devastates medical research charities excluded from Government support; institutes closed as the Government’s international development funding is slashed; and post-docs eking out funding from project to project with no job security, working two jobs at once or working for free, and unable to apply for funding in their own name—and the most disadvantaged are hardest hit. How can the Minister say that she is supporting science when she is throwing the next generation of scientists to the wolves?

[Amanda Solloway]

I always appreciate the hon. Member’s candid questions. She will know that we have been working on the people and culture strategy, which very much takes into account early career research, career progression and all the important things that we need to consider to ensure that our R&D system is really allowed to thrive and flourish. In May we announced funding of £15 million from BEIS, together with a £5 million fund from the Department of Health and Social Care, to support early career researchers, supported by charities, helping to protect the pipeline of research superstars who will have a fantastic impact in improving patients’ lives in future.

Advanced Research and Invention Agency Bill (Sixth sitting)

Debate between Chi Onwurah and Amanda Solloway

Thursday 22nd April 2021 Public Bill Committees

[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 ---

[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 ---

[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.

--- 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.

Advanced Research and Invention Agency Bill (Fifth sitting)

Debate between Chi Onwurah and Amanda Solloway

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.

--- 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 ---

[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 ---

[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.

Advanced Research and Invention Agency Bill (Fourth sitting)

Debate between Chi Onwurah and Amanda Solloway

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.

--- Later in debate ---

[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.

--- Later in debate ---

[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.

--- Later in debate ---

[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.

--- Later in debate ---

[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.

--- Later in debate ---

[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.

--- Later in debate ---

[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.

--- Later in debate ---

[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.)

Advanced Research and Invention Agency Bill (Second sitting)

Debate between Chi Onwurah and Amanda Solloway

Wednesday 14th April 2021 Public Bill Committees

[Chi Onwurah]

Thank you very much. I know that others have questions to ask so I will leave it there, but I just want to say how inspiring it is to hear such positive reference to the power of public service, science and research, and to oversight as being an enabler rather than a burden.

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

Q It is a great pleasure to serve under your stewardship, Mrs Cummins. I want to acknowledge the excellence of our witnesses and to thank them. With your permission, I will ask one question to each witness.

I am going to start with Dr Peter Highnam. How do you ensure evaluation and scrutiny of DARPA’s programmes outside what is mandated in legislation? What information do you gather to assess when to start and stop projects and programmes, and how are these decisions made?

Dr Highnam: That is a surprisingly big question. 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. That is very important: things begin, and they end.

To make the case for a project to get off the ground, we use a structure called the Heilmeier questions, named after the DARPA director in the mid-70s, George Heilmeier. They are five very important questions. They look easy, but they are very hard to answer well. In my view, that is the creative act in the DARPA model—to answer those questions well and make that case. Once the project is approved and teams are onboard, you then have regular evaluations. As things change in the world around us, in science and technology, with us in defence, and in other aspects of our environment, they may be overtaken by events. That is very rare, but it would be grounds for no longer continuing. Were we too ambitious in certain aspects of the programme? Do we need to change it or change some of the people participating in the teams? And so on.

This is a constant process. It is not about starting it up and letting it run until it finishes. It takes a lot of effort to make sure you know what you are doing when you start with taxpayer funding and the opportunity cost that comes with that. Then you keep an eye on it, especially during the transition of the results to our national defence.

--- Later in debate ---

[Chi Onwurah]

Q Thank you. Professor Dame Anne?

Professor Glover: Just for easiness, can I ask Committee members to just call me Anne? Otherwise it is a bit of a mouthful.

On the idea of five or six individuals, I would caution on that slightly. I am partly bought into the idea, but if you are identifying five or six individuals, you have already pinned your colours to the mast in what you want. You have already prejudged the areas you want to work in or the ideas that you are interested in.

Where the five or six people might be really important to identify is for the running of ARIA itself. Whether it is the overall director of ARIA or the research leaders in the different themes that might be funded in ARIA, they will be key people and they need to be credible, trusted, very effective at communication and really open-minded. In my view, a large part of the success of ARIA will come from having quite inspirational leaders throughout.

In terms of how you fund and who it is that you are funding, I would go back to what I was alluding to earlier. There needs to be a big conversation about this. There are often older men who have got a reputation in research, so they are naturally the ones we go to, but as I know from bitter experience, as you get older, sometimes your thinking closes off in particular areas and you are less open to ideas. I am thinking of Professor Donald Braben, whose comments the Committee would probably be very interested in. He set up a venture research unit in BP, back in the ’90s I think, and has written several books about this kind of blue skies research area.

What Braben said is that we should look for “irreverent researchers and liberated universities”. Do not look for people who have a research area that we think is really important and we must go there. Debate widely among researchers, of course, but also Government Departments, devolved Administrations, foresighters, businesses, citizens. Let us imagine the future. ARIA could be the stepping stone, if you like, to inventing that imagined future. For a future to exist, you have to imagine it in the first place and you have to convert it into what you would like. There are lots of different ways of doing that. With inspirational leadership, you can move towards that. You can probably increase dramatically your chance of getting it right by having an irreverence around what you do, and not the usual measures of success.

[Amanda Solloway]

Q Thank you to our great witnesses. I have one question for both witnesses. What is the importance of giving ARIA independence from Government and Ministers, compared with other parts of the R&D system?

Professor Glover: I would argue that there is huge value in 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.

If there are notable failures of funding, which you would expect if it were a high-risk, high-reward funding agency, political opponents will also say, “Well, look, this is a complete disaster under your custodianship. Here are all the failures.” You just want it to be separate from that. It is also part of trying to embrace the unthinkable, if you like, in terms of the research we do and the areas we go into. Necessarily, those will sometimes be difficult areas, and not ones that you should expose Government to either. In the spirit of opening everything up, I would say that keeping that independence is extremely valuable.

Tabitha Goldstaub: I totally agree with what Anne just said—I would have said exactly the same thing. I think that the separateness and independence are really vital to the success of ARIA. The only thing that I would really think about adding here is how important it is that ARIA does have a relationship with Government, because it will need to have many customers, both private sector and public sector. The programme managers will need to create those bonds with central Government Departments individually.

I think that a commitment from Government to remain independent but to become good customers is very important. The health and transport sectors are good examples of where that might work. What is different is that a surprising number of these next big scientific fields, and these next big breakthroughs, such as artificial intelligence, are going to depend on systemic transformation, where you cannot separate the technology from the policy and regulation.

So yes, ARIA has to be independent, but it also needs to ensure that it works really closely with central Government and with regional and local government. Local government spends about £1 billion on procurement, and cities are key investors in infrastructure, so finding a good link with local government, as well as with central Government, is important. This will hopefully end up creating, as Anne suggested, a way that people feel part of this. Regional strengths deliver benefits to actual localities. Even if it is within the next 10, 15 or 20 years, it is really important that government feels part of that, even though ARIA is independent.

--- Later in debate ---

[Chi Onwurah]

Thank you very much for your answers.

[Amanda Solloway]

Q Welcome to the witnesses—it is lovely to see you this afternoon. I have two questions that are relevant to all three of you, please. Given that we know how important ARIA is to the UK economy, what importance do you put on patience when we think about funding high-risk transformational research? How necessary is it that we have a long-term view?

Felicity Burch: As I know you are aware, I think having a long-term approach to funding R&D matters hugely. From the perspective of the business community, having institutions that are in it for the long run that they know they can come back to and that they are aware exist is really important for their own confidence to invest.

Thinking about the agency slightly more specifically, when it comes to its own patience, one of the things that CBI members have highlighted to me as a particular benefit of the DARPA model is the commitment to funding their programmes for significant periods of time. For example, there might be 10-year funding with three-year gates to check if the project is working. Those commitments, with that 10-year view—so long as everything is going more or less according to plan—is hugely important for bringing business funding alongside that. So if we can bake a long-term view and patience into ARIA from the start, it will certainly help it to be successful.

Advanced Research and Invention Agency Bill (First sitting)

Debate between Chi Onwurah and Amanda Solloway

Wednesday 14th April 2021 Public Bill Committees

[Chi Onwurah]

I will come back later, if that is okay.

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

Q May I say what a pleasure it is to be here under your chairmanship to discuss such an important subject, Ms McVey? I have two separate questions for both the witnesses. The first question, for Tris Dyson, is about funding mechanisms and how they support the R&D system. Do you have some examples of how a range of funding mechanisms support the R&D system?

Tris Dyson: We put together a document in the summer, which we can share with you, that has examples both from Nesta Challenges and particularly from the United States of outcome-based challenge prize funding. That is obviously mainly the space that we occupy. There were some great examples of where it stimulates and creates whole new industries and sectors. There were also some examples of where there can be quite big mistakes, because you go off down the wrong course.

I know there has been quite a lot of inspiration from DARPA and from the US. One example would be the driverless car in the early 2000s. DARPA ran a series of challenge prizes in the desert around the development of driverless cars. It was literally an annual race where teams from universities would compete to develop vehicles that would outperform one another, and there was prize funding associated at the end of it. That is more or less where driverless cars began. The teams that came out of those universities and the individuals have now been picked up by Google, Uber, Apple and everybody else. It is why a lot of that frontier technology is now being developed on the west coast and the rest of the world is playing catch-up.

Another example would be the Ansari X prize, which was about building a privately funded spaceship that would carry two passengers. It had a very specific target about how high a sub-orbit it needed to reach within a two-week period. That created an enormous race for people to build privately funded spaceships, again in the early 2000s. You can see now what has happened in the private space flight industry in the US. The team that won that is now Virgin Galactic and we see every day in our newspapers what has happened to them.

We are a bit newer to this in the UK, but we also have some examples. We concluded a challenge prize just before Christmas that was looking at lower-limb paralysis. It was essentially saying that there have been dramatic improvements in the fields of artificial intelligence, robotics and sensory technology but why has the wheelchair not changed very much in the last 100 years, except for electrification? That was a global challenge in partnership with Toyota that resulted in some amazing breakthrough systems and products for people with lower-limb paralysis all around the world. A Scottish team called Phoenix Instinct won. They developed a wheelchair that moves with the user, anticipates movement using AI and sensory technology, and has a very lightweight alloy frame that is quite revolutionary from the perspective of a wheelchair user. Those are some examples.

Whether you do a challenge prize or not, I think you would need to do the same thing with ARIA, which has got to focus on areas where there is the most opportunity and where you have a decent hypothesis that technology pathways can be developed in order to solve that problem and encourage activity around that singular thing. That is the whole premise of missions or challenge prizes.

Oral Answers to Questions

Debate between Chi Onwurah and Amanda Solloway

Tuesday 23rd March 2021 Commons Chamber

[Amanda Solloway]

As I have previously mentioned, the discussions around this are ongoing and the funding will be announced in due course. I would like to point out to the hon. Lady that we have an ambition to be a science superpower and, in fact, we have committed £22 billion by 2024-25.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab) [V]]

Everyone who has had a coronavirus vaccine knows of the deep sense of gratitude to scientists. In facing the challenge of climate change, future pandemics and technological change, we look to science. At the general election, the Prime Minister promised to double science spend. Instead, we appear to have a £1 billion cut to the science budget plus a £120 million cut to our overseas development science as part of a “new settlement” that protects

“the most effective research programmes.”

Can the Minister say which programmes will be cut, which scientists will lose their grants, and which institutions will close? The Government who clap the NHS but impose a real-terms pay cut now plan to praise science and cut scientists.

[Amanda Solloway]

BEIS regularly has talks with Her Majesty’s Treasury on these issues. Let me reiterate that we plan to be a science superpower by 2024-25, with a £22 billion investment. We also have a Second Reading debate today on a high-risk, high-reward agency. Furthermore, in terms of the spending review, more than £40 billion across Government was spent on science.