National Security and Investment Bill

Debate between Greg Clark and Richard Graham

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

[Greg Clark]

Of course we should look at the example of other countries; I am sure we will do so during the course of the Bill. However, I would say to my hon. Friend that those two countries are very different in their markets and the size of their economies. The pool of capital that is available to start-up companies in the US is vastly greater than it is in the UK at the moment, although I hope that will change, for reasons that I will go on to discuss. Australia, conversely, is a much smaller economy, which does not have the network of policy regulatory innovation that we have.

We have been a leader; that is our international reputation, and one reason that transactions are conducted in this country is the confidence in our rule of law. We should emphasise and champion that, rather than feeling compelled to follow what other countries are doing in their entirety. Our policy—our industrial strategy—must be to make Britain an even more attractive place for innovative companies to be founded and to stay—not because they are compelled to do so, but because the environment that we provide, in terms of scientific research, educated and trained people, the availability of capital at every stage in their development and the public policy environment make it an attractive place for them to want to be.

Neither must our regime establish, in my view, a list of countries that cannot invest at all in the UK. The test must genuinely be about national security. That is very appropriate. China has been mentioned already in these discussions, and of course it is right and proper that the national security concerns that the House has about China should be reflected through this regime, and these powers are important for that. However, when I was sitting in my right hon. Friend the Secretary of State’s place, I fought hard to save, for example, British Steel in Scunthorpe, Skinningrove and Teesside. The Chinese steelmaker that bought the company, Jingye Group, is essential to the employment of many tens of thousands of people across the north and the east of England, and more in the supply chain. From my recollection, there was no intellectual property vulnerability in terms of its operations. Indeed, the retention of that substantial steelmaking capacity has enhanced our economic resilience, whereas losing it would have seen us relying on imports. I might say the same for Geely, the owner of the London Electric Vehicle Company, which my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), being a west midlands MP, will be familiar with, and which gives valuable jobs to many people.

[Richard Graham]

My right hon. Friend is making a very good case for why it is important to look at each investment in its own right. Geely, which bought the London Taxi Company, produced electric vehicles and now exports them to the Netherlands and France while continuing to manufacture in Coventry, is a good example of why that is so important. Does he agree that it is simply not good enough for this country to say, “China is Communist and we will not accept Communist investment, and therefore we will not accept Chinese investment.”? We must be a great deal more sophisticated and open than that.

[Greg Clark]

I would say to my hon. Friend that the Bill’s focus on national security is absolutely right. We should have a beady eye on national security, with substantial powers, as my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) said, to enforce that. I think the Bill has it right in its focus on national security.

The Committee that examines the Bill will need to consider in detail some of the provisions of the Bill as it is presented on Second Reading. It is essential to provide investors and UK firms with a sense of predictability and confidence, but that can be undermined if the law has administrative consequences that are unintended and not provided for. For example, there are strong reasons to think that there may be a deluge of notifications, as the hon. Member for Dundee East said, when the new unit in the Department is set up, and it must be geared up to handle that right from the outset.

The prospect of five years’ imprisonment for directors and fines of 5% of turnover, as my right hon. Friend the Secretary of State commends, for failure to notify under a mandatory regime within sectors defined as broadly as communications and transport is, in my view, likely to lead to many small transactions being notified under the voluntary regime for peace of mind regarding those very strong sanctions against an inadvertent breach. It is an enormous challenge for the Department to set up a new unit, especially since the current regime—or the previous one, since the powers are live—has dealt with a very small number of transactions each year.

As Secretary of State, I reduced the turnover threshold for review from £70 million to £1 million only two years ago. This Bill contains no de minimis threshold, and I will be interested to see during the passage of the Bill evidence of why a zero de minimis threshold is necessary, especially when the definition of technology assets extends to “ideas, information or techniques”, which is very broad. This could result in a very large number of very small transactions being notified defensively.

Even if businesses are confident that they will not be covered by the mandatory notification requirement, the advantages of voluntary notification and clearance, with its exemption from the five-year look-back, may prove to be very attractive and very important in baking in the approval of a transaction against reversal more than five years in the future. It is clearly the ambition of the right hon. Member for Doncaster North to add further public interest tests. As we approach the general election, it may well be attractive, as a defence against the action of future Governments, for companies to notify even when they do not have to. It is very important that the Department is geared up for that.

Much of the Science and Technology Committee’s work in recent months has been concerned with the nation’s response to the coronavirus. If we can learn one lesson from that—for example, from problems with the test and trace system—it is that, to have public confidence, we need to properly anticipate demand and to set up to meet it from the outset. If that demand is not supplied, public confidence, which is crucial for investment, will be undermined.

Net Zero Emissions Target

Debate between Greg Clark and Richard Graham

Wednesday 12th June 2019 Commons Chamber

[Greg Clark]

If the hon. Lady reflects on the progress that is being made, she will see that the accelerating take-up of electric vehicles makes a major contribution. Through the industrial strategy, we have funded the research and development of new electric powertrains for commercial vehicles—vans, lorries and agricultural vehicles—which will be important. We need to double down on that commitment, but we made the right strategic judgment three years ago when we targeted the future of mobility, including electric vehicles, as being one of the principal contributors not just to tackling climate change, but to creating jobs in the economy.

[Richard Graham (Gloucester) (Con)]

I congratulate the Secretary of State on this important announcement. As he says, the challenge is now all about implementation. May I therefore encourage him to look closely at the Marine Energy Council’s proposals for how to stimulate the production of that side of green energy, which is still the Cinderella of the sector? In addition, may I ask him to work closely with the Secretary of State for Environment, Food and Rural Affairs to reduce the amount of illegal plastic waste currently being exported in a disgraceful way to Malaysia and elsewhere in south-east Asia, which will, if not stopped, damage our strong environmental commitments?

[Greg Clark]

I agree with my hon. Friend and recognise his long-standing campaigning and his contribution to creating a clean environment. In the quest to pursue the possibilities of new technologies and their research and development, I agree that marine and tidal technologies have an important role to play. Since 2010, we have made available over £90 million in grant funding, and we will continue not only to do that but, working with our universities and businesses, to accelerate the research and development that is taking place in all parts of the United Kingdom.

Energy Policy

Debate between Greg Clark and Richard Graham

Monday 25th June 2018 Commons Chamber

[Richard Graham (Gloucester) (Con)]

I have to say that this is a sad day for Swansea, for Gloucester—the home of Tidal Lagoon Power plc—and, indeed, for other innovative sources of marine energy more widely. Since the project was entirely financed by entrepreneurs and institutional investors, not by the Government, the only real point of argument was the price at which the Government were prepared to buy the energy through the grid. Will the Secretary of State tell us at what price he would have approved the Swansea project? Will he also confirm that his Department will lay out a programme of how it will develop a real strategy for taking forward tidal and other forms of marine energy?

[Greg Clark]

I know that my hon. Friend has been a great champion for this technology and that he will be disappointed with the conclusion that has had to be reached. At the point of considering any proposal, we are required to examine the cost of alternatives, and the costs of low-carbon alternatives, including offshore wind and nuclear, were more competitive than those for this programme. It is not possible to specify a particular price, because such an assessment has to be made at the point of a decision. However, I have said very clearly that far from being against tidal technology, I am in favour of it, but a value-for-money case has to be presented. We will continue to be open to proposals that can demonstrate such a case.

Leaving the EU: Airbus Risk Assessment

Debate between Greg Clark and Richard Graham

Monday 25th June 2018 Commons Chamber

[Greg Clark]

We need an agreement. The right hon. Gentleman is right that regulatory standards are increasingly international, but the idea that we would find ourselves unable to operate to the standards required for aircraft produced in Europe would be unacceptable not only to Airbus, but to Bombardier in Northern Ireland, which communicated in very similar terms its requirements for the future.

[Richard Graham (Gloucester) (Con)]

Given that the clear aim of the Government, and indeed Airbus Group, is to achieve a frictionless and zero-tariff exit agreement, has not the statement from Airbus generated more heat than light? Is not the simple truth that we make the engines, wings and landing gear for the Airbus, that it is incredibly important that we continue to do so, and that there is no reason for us not to arrive at an agreement that enables us to do so?

[Greg Clark]

I agree with my hon. Friend. I hope that the House can tell that I regard the prospect of a good agreement as being within our grasp. That is our objective, and it is what this company and many others want from us.

Oral Answers to Questions

Debate between Greg Clark and Richard Graham

Tuesday 12th June 2018 Commons Chamber

[Greg Clark]

We are getting on with major infrastructure investments that would be good for the whole United Kingdom and that the previous Government did not take.

[Richard Graham (Gloucester) (Con)]

T9. Like all good films, I hope that a Government response to the Hendry review is “Coming Soon”, but meanwhile, will the Minister share with us whether she agrees that the opportunities for marine energy, whether tidal stream, tidal lagoon or waves, are enormous? Does she agree that they deserve more support and encouragement to develop this fantastically innovative source of additional low-carbon, domestically produced energy?

Nuclear Power

Debate between Greg Clark and Richard Graham

Monday 4th June 2018 Commons Chamber

[Richard Graham (Gloucester) (Con)]

I totally agree that starting the negotiations with Horizon, based in the Gloucester business park, to secure replacement nuclear capacity and to deal with increased demand for electricity is a very good thing. I wish my right hon. Friend all good luck in securing a balance of advantages to the taxpayer between a lower strike price on the one hand and—no doubt—some cost and construction risk on the other. The aspects he highlighted—greater security, low carbon, greater diversity, jobs, supply chains—all apply equally to the fabulous tidal lagoon project mooted for Swansea. I do hope he can secure a positive response to the Hendry review as soon as possible.

[Greg Clark]

I anticipated the direction in which my hon. Friend was heading. He will know that, as we have done in this case, we need to offer and obtain value for money for the taxpayer and the consumer. Just as in this case, that is part of the assessment to be made of the tidal lagoon proposal.

Oral Answers to Questions

Debate between Greg Clark and Richard Graham

Tuesday 13th March 2018 Commons Chamber

[Greg Clark]

I will look very carefully at the report of the Committee and that will be one of the pieces of evidence that I will seriously consider.

[Richard Graham (Gloucester) (Con)]

The Secretary of State has said that his door is still open to discussions about the benefits of green energy, so will he commit today to seeing Charles Hendry—the author of the Hendry review, which is still awaiting a response from the Government 14 months on—me, as chair of the all-party group on marine energy and tidal lagoons, and representatives of Tidal Lagoon Power and TidalStream?

Nuclear Safeguards Bill

Debate between Greg Clark and Richard Graham

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[Greg Clark]

Such consultation is the universal practice in the nuclear sector. The hon. Gentleman might serve on the Bill Committee, so perhaps he will be able to interrogate the issues he raises, but at every point the nuclear sector proceeds not through the unilateral fiat of Governments but appropriately, on the basis of expert advice. That is the culture of the nuclear industry and it will continue.

As I set out for the House in my written statement in September, our intention is for the new domestic regime to exceed the standard that the international community would expect from the UK as a member of the IAEA. The objective is for it to be as robust and comprehensive as that currently provided by Euratom. We are perfectly satisfied with the high standards that have prevailed under Euratom, so we do not want to take the opportunity to weaken them. As I have mentioned, we will also be agreeing new safeguards agreements with the IAEA. My officials have had meetings with officials from the IAEA at their headquarters in Vienna to take the discussions forward, and I am pleased to report that they are progressing extremely well.

On other aspects of the Euratom relationship, we have made it clear that we want to continue the successful co-operation. In June, I announced the Government’s commitment to underwrite the UK’s fair share of the costs for the Joint European Torus—the leading nuclear fusion facility in Oxfordshire—which supports 1,300 jobs, and we will continue to do that.

Let me briefly take the House through the clauses of the Bill. It is not a long Bill, as the House knows. Clause 1 amends the Energy Act 2013 to replace the Office for Nuclear Regulation’s existing nuclear safeguards purposes with a new definition. The ONR will regulate the new nuclear safeguards regime using its existing relevant functions and powers, so the measure is about clarifying its purposes. Clause 1 will also amend the Act by creating new powers so that we can set out in regulations the detail of the domestic safeguards regime, such as on accounting, reporting, and control and inspection arrangements.

[Richard Graham (Gloucester) (Con)]

The Nuclear Industry Association has made it absolutely clear that this legislation is necessary, but it has also spelled out that the best outcome would be for the UK to continue with some form of membership of Euratom. Will my right hon. Friend give the House an idea of whether he feels that the discussions so far with Euratom make it likely that we will be able to achieve some form of continuation of the existing arrangement?

[Greg Clark]

As I have made it repeatedly clear, we regard the arrangements with Euratom as having served this country well and we want to see maximum continuity. As far as I can see, all members of the nuclear industry regard that as being the case. This is a good example of where I hope it will be possible to agree quickly and with a maximum of consensus a regime that continues the high standards that we have observed.

Nissan: Sunderland

Debate between Greg Clark and Richard Graham

Monday 31st October 2016 Commons Chamber

[Greg Clark]

I will indeed. In fact, I am meeting Hitachi tomorrow, and have the privilege of presenting an award at Asia House in commemoration of the very long and positive association that we have had with it. On one of my previous visits to Japan in this role, I had the great pleasure of meeting many of the Hitachi directors and seeing their innovation and their continued commitment to this country—very important.

[Richard Graham (Gloucester) (Con)]

The desperate search for a commercial bung in this announcement by some Members of the Opposition is, frankly, insulting to Britain, Japan, Nissan and Sunderland. Does my right hon. Friend agree that, rather than talking the country down, we should be celebrating the recent inward investment successes, not least from the far east, which demonstrate that the Government are living up to their commitment to making a success of Brexit?

[Greg Clark]

As I said earlier, it is unambiguously good news, and I hope that the whole House will welcome it.

Oral Answers to Questions

Debate between Greg Clark and Richard Graham

Monday 6th June 2016 Commons Chamber

[Greg Clark]

The hon. Gentleman is absolutely right that there needs to be total confidence. Any person who suffers from domestic violence should be confident that they can have a place of safety. That is behind the statement of expectations that is being drawn up, and he will be pleased that that is continuing. He should know that the number of bed spaces in refuges has increased in the last two years, according to UK Refuges Online, but we need to make sure that that confidence is there. I am sure he will agree that true success is when women do not have to move from their homes because they have been the victims of violence by their partners. True success is when women can be confident in staying there, and when the perpetrators of such abuse have to leave.

[Richard Graham (Gloucester) (Con)]

2. What steps his Department is taking to ensure the building of starter homes.

[The Secretary of State for Communities and Local Government (Greg Clark)]

The Government are implementing our manifesto commitment to extend to young people the opportunity to own a home of their own. Working with councils, housing associations and builders, the starter homes programme will bring that opportunity to 200,000 young people across the country.

[Richard Graham]

The Secretary of State will know that there are some situations in which it is not viable to have shared equity on properties—perhaps on infill or brownfield sites. In such situations, the local housing association may still be keen to build, but to rent. Will my right hon. Friend commit to meet to discuss a specific situation and consider support funding?

[Greg Clark]

I am always delighted to meet my hon. Friend. It sounds as though there is the prospect of another trip to Gloucester, which is always very enjoyable. We want to see more housing of all tenures, and our funding provides housing for rent as well as to purchase, but starter homes provide a big opportunity to people who have been losing out on meeting their aspiration to own a home of their own. That is true on brownfield sites as well as on any other site. I hope that in his city of Gloucester, there will be starter homes on those brownfield sites.

Oral Answers to Questions

Debate between Greg Clark and Richard Graham

Tuesday 24th March 2015 Commons Chamber

[Greg Clark]

The progress we have made in England has been significant. As the hon. Gentleman knows, we have also concluded a city deal with Glasgow. Some of the reflections I have heard from Scotland state that the Scottish Government have been a rather centralising Government and that they will look to the model of decentralisation that we have pursued in England to try to save them from that over-centralisation.

[Richard Graham (Gloucester) (Con)]

3. What steps he has taken to uphold the integrity of voting in introducing individual electoral registration.

Oral Answers to Questions

Debate between Greg Clark and Richard Graham

Tuesday 6th January 2015 Commons Chamber

[Greg Clark]

That is complete nonsense. The record of job creation over the course of this Parliament shows that the vast majority of jobs have been created outside London. One thing we negotiated was a city deal with the city of Glasgow that was well received in that great city.

[Richard Graham (Gloucester) (Con)]

5. What progress he has made on implementing local growth deals.

[The Minister of State, Cabinet Office (Greg Clark)]

Funding for the local growth deals begins in April this year, but strong progress is being made in implementing the deals even in advance of this. In Gloucestershire the growth hub, which gives advice and support to small businesses, opened at the university of Gloucestershire in October and is already being well used by local businesses.

[Richard Graham]

My right hon. Friend is absolutely right that the university of Gloucestershire’s growth hub in the city of Gloucester is making real progress already. May I invite my right hon. Friend to visit it and, while he is there, to take the opportunity to see our exciting plans for the regeneration of Blackfriars in the city centre, which are a key feature of our LEP’s next bid?

[Greg Clark]

My hon. Friend the Member for Pendle (Andrew Stephenson) was right to predict a spate of invitations. Of course I will come and visit the new growth hub in Gloucester in the company of my hon. Friend the Member for Gloucester (Richard Graham).

Local Growth Deals

Debate between Greg Clark and Richard Graham

Monday 7th July 2014 Commons Chamber

[Richard Graham (Gloucester) (Con)]

In what has become an intense competition to welcome the Minister’s announcement most warmly, may I make a bid on behalf of Gloucestershire—I think I am the only Member from the county here—to welcome the Gloucestershire growth deal, which includes a real opportunity to generate more Gloucesterpreneurs and some great participation in nuclear and green projects too? My right hon. Friend will know that I particularly welcome the commitment to finance the last remaining slug of the new bus station, which is the transport hub of the county, as it will make a huge difference. Does he agree that the autumn statement and the Budget provide opportunities for further bids for such projects as the Blackfriars regeneration?

[Greg Clark]

My hon. Friend is nothing if not tenacious. I enjoyed my visit to Gloucester with him a little while ago. There will be other opportunities, because negotiations will continue. I dare say that Gloucestershire will build on its success.

Oral Answers to Questions

Debate between Greg Clark and Richard Graham

Tuesday 14th May 2013 Commons Chamber

[Greg Clark]

I welcome the hon. Lady’s support for the economic review and its proposals. She will know that under the city deal that we negotiated with Newcastle, which is already being implemented, sites are being prepared for new businesses to move in, creating valuable jobs. I hope that she will maintain that support for the proposals as we implement them.

[Richard Graham (Gloucester) (Con)]

rose—

Oral Answers to Questions

Debate between Greg Clark and Richard Graham

Monday 30th April 2012 Commons Chamber

[Richard Graham (Gloucester) (Con)]

T9. My right hon. Friend the cities Minister, the Minister of State, Department for Communities and Local Government, the right hon. Member for Tunbridge Wells (Greg Clark), will have noted, not least from the Centre for Cities annual report, that progress in Gloucester is encouraging on a number of fronts, including the regeneration of major sites and the expansion of our specialist training company to provide apprenticeships and skills for our thriving small and medium-sized enterprises engineering centre. Gloucester would be delighted if the Minister could visit the city to look more closely at some of our successes and our challenges.

[The Minister of State, Department for Communities and Local Government (Greg Clark)]

It would give me the greatest pleasure to visit Gloucester, especially in the company of my hon. Friend.

Oral Answers to Questions

Debate between Greg Clark and Richard Graham

Thursday 21st October 2010 Commons Chamber

[Greg Clark]

May I welcome the hon. Lady to the Dispatch Box? She has long experience in local government, which I know takes these issues very seriously. One thing that councils and central Government have had the chance to do in the past is to hold on to power and to avoid bringing in the voluntary sector as of right. I think we need to change that. The hon. Lady will see that, in the localism Bill, we are going to entrench rights for community groups to take over some of the services of local authorities if they can demonstrate that they can have a more effective outcome. Rights, I think, rather than discretion, is the best source of guarantees for the sector.

[Richard Graham (Gloucester) (Con)]

11. What steps he has taken to reduce the burden of administration in the planning system.