Advanced Research and Invention Agency Bill (Fourth sitting)

Jerome Mayhew Excerpts

Tuesday 20th April 2021 Public Bill Committees

[Chi Onwurah]

I thank the hon. Member for the second Newcastle for that contribution. I will make a couple of points in response. Let me gently say that Government members of the Committee are trying somewhat to have it both ways, in saying that ARIA will be like UKRI while not putting in place any of the measures, systems or processes of accountability to require it to be like UKRI, building on the fact that ARIA is, as I understand it, meant to fill a gap in our research landscape.

On whether ARIA will follow all the rules that UKRI follows, I am pretty sure that the answer to that is no, because as I understand it, it is not going to follow freedom of information or procurement rules. We have seen over the past few months with the scandal over Greensill—this is what the comments from the Chair of the Liaison Committee were about—that the existing rules and regulations are not sufficient. Finally, for the hon. Member for Newcastle-under-Lyme to say that we can expect these people to behave better because they are going to be better than that—really? Many scandals have been founded on expectations like that and again, we do not want the touch or hint of scandal near our fantastic science base.

[Jerome Mayhew (Broadland) (Con)]

Can I have some clarity from the hon. Lady? The point made by my hon. Friend the Member for Newcastle-under-Lyme—the other Newcastle—was that there is already a written requirement for members of these kinds of bodies to make full disclosure. If they are going to ignore that, why does the hon. Lady think that they would not ignore a regulation from the Secretary of State saying exactly the same thing?

[Chi Onwurah]

I thank the hon. Member for his contribution, which I think was made in a constructive sense.

I think the Chair of the Liaison Committee is making a point about that guidance. Clearly, it was not sufficient for David Cameron and it is clearly not proving to be sufficient in other cases. I hope that, as this amendment sets out, it is not simply about declaring. This is a critical part and I am grateful to the hon. Gentleman for allowing me to emphasise it. The amendment does not say they should declare conflicts of interest; it states that the Secretary of States makes regulations—detailed, I would say—establishing the procedures to deal with conflicts of interest. That is the key thing. This stems from the need to have a close working relationship with the private sector, which will give rise to conflicts of interest that may be quite complex, especially with new and evolving technologies, which may go on to complex and potentially international supply chains. Those conflicts of interest may be complex, involving equity stakes and so on. We need procedures to deal with them that are more detailed than the current general ones and which are specifically targeted at ARIA’s unique role.

Dr Regina Dugan, the chief executive officer of Wellcome Leap, effectively supported that proposal:

“The particular way that we work is through contracts; we do not actually do grants. I also think that this position of not taking equity is important, because the non-profit element of it is part of the differentiation, and we have an entire commercial sector that is good at assessing value and figuring out return on investment.”—[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 48, Q43.]

What is different with ARIA is that it is, potentially, going to be taking equity, which can raise more complex conflicts of interest.

Professor Pierre Azoulay of the Massachusetts Institute of Technology said that

“the programme managers at DARPA and also at ARPA-E—the Advanced Research Projects Agency-Energy—have a fixed expiration date, which means they will need to go back to academia or to the venture capital firm or large firm that they left, and generally they want to do so with their head held high and their reputation intact. I think that that has created over time a norm of correct behaviour, if you will, and the absence of cronyism.”—[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 38, Q30.]

We want to see that norm of correct behaviour established through supporting processes and procedures. I asked Dr Highnam,

“What should we be looking for in the directors and programme managers as the key positive part of the culture that ARIA should seek to build?”

He answered:

“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.]

I should say that I have not heard any Government witness or Minister emphasise the importance of honour as a key characteristic of board members. I think it is really important that procedures to deal with conflicts of interest are established. That view is shared by the Chair of the Liaison Committee, who has said

“After the dust settles over the Greensill affair, I suspect that we will find that the lack of judgment over David Cameron’s approaches to ministers is less important than the general failure to address what has become a casual approach to conflicts of interests amongst many in government and in politics…All can see now the general inability of the various codes and systems”—

to the points made—

“of oversight, such as the toothless advisory committee on business appointments, to provide sufficient transparency and accountability, which is why even its chair, Lord Pickles, wants reform.”

When the Chair of Liaison Committee, who is much respected on the Government Benches, says that, and when we are mired in scandals as a consequence of a lack of appropriate conduct and clear processes and procedures, I urge the Minister to accept the need at the very least for greater detail when it comes to avoidance of conflicts of interest. I urge her to accept the amendment to establish processes and procedures to avoid conflicts of interest in this new body, which is critical to our future economic and scientific prosperity.