National Security and Investment Bill (Fifth sitting)

Katherine Fletcher Excerpts

Committee stage & Committee Debate: 5th sitting: House of Commons
Tuesday 1st December 2020 Public Bill Committees

[Chi Onwurah]

Another excellent contribution from my hon. Friend, who raises a delicate, nuanced, important point. Governments of all colours may have trade and geopolitical agendas that lead to, as my right hon. Friend the Member for North Durham (Mr Jones) described it, a “hug a panda” approach, whereas the ISC, which we have seen mark its independence of thought both as a Committee and in its contributions in parliamentary debates, has a duty, a responsibility and an understanding to see beyond short or even medium-term political ambitions and to focus wholeheartedly on the security of our nation. That is where its support is invaluable.

I will finish my comments on the amendment by quoting some of our parliamentary colleagues with regard to the Intelligence and Security Committee. On Second Reading, the Chair of the Select Committee on Foreign Affairs, the hon. Member for Tonbridge and Malling (Tom Tugendhat), said that

“there is a real role for Committees of this House in such processes and that the ability to subpoena both witnesses and papers would add not only depth to the Government’s investigation but protection to the Business Secretary who was forced to take the decision”.—[Official Report, 17 November 2020; Vol. 684, c. 238.]

I think that is powerful advocacy for the amendment. A member of the ISC, the right hon. Member for South Holland and The Deepings (Sir John Hayes), said that

“we need mechanisms in place to ensure that that flexibility does not allow the Government too much scope. That is why—this point was made by my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) and I emphasise it on behalf of the ISC—Committees in this place missioned to do just that need to play an important role.”—[Official Report, 17 November 2020; Vol. 684, c. 244.]

We had support in the evidence sessions, support across the House and, most importantly, we have the support of the ISC itself, or at least its agreement that the amendment would be a constructive improvement to the Bill.

Finally, I will say a few words on amendment 5, which would require the Secretary of State to notify the Intelligence and Security Committee before making regulations under clause 6 and would provide a mechanism for the Committee to respond with recommendations. Regulations made under clause 6 would likely define the sectors that pose the greatest national security risk and would come under mandatory notification requirements. With the amendment, the ISC would be able would to provide both scrutiny and challenge to these sector definitions. The Committee will understand that the driving reasons behind the amendment are similar to those behind amendments 3 and 4, which is of course why the amendments have been grouped together, and would seek to improve the Bill through putting in place a requirement for parliamentary scrutiny specifically on the definitions.

As we have said, the Bill gives the Secretary of State major powers, and it demands mandatory notification of investments in large parts of the economy, with 17 proposed sector definitions already. I really cannot emphasise enough how broad those definitions currently seem. I know it is the intention that the definitions should be tightly drawn. However, I speak as a chartered engineer with many years’ experience in technology. Three or four decades ago, we might have talked about digital parts of the economy, but now the economy is digital. Similarly, in the future, parts of the economy not using artificial intelligence—from agriculture to leisure to retail to education—will be looking to use it.

[Katherine Fletcher (South Ribble) (Con)]

I am a scientist myself, so I share a passion from a technology perspective. I am listening to the hon. Lady’s view of the breadth of opportunities, but amendment 5 would bring the Intelligence and Security Committee into the process, and I wonder whether we would be creating a bottleneck. The hon. Lady talked earlier about breadth and said that time is critical for SMEs and larger companies that need a decision. I think she would accept that Government is perhaps not the most effective and efficient vehicle, so why does she seek to put additional steps into something that is time critical and based on national security?

[Chi Onwurah]

I welcome the hon. Lady’s intervention. It is great to have scientific knowledge in Committee and in the House. I welcome the contributions and scrutiny that a scientific background can bring. She is right that there is a tension. The technological environment is fantastic and innovative, with its start-up and enterprise culture. We have great centres of development and innovation, from Cambridge to Newcastle. I am sure hon. Members can mention other centres of great technological development that lead to lots of local start-ups in different areas. All or many of them may be caught by the provisions of the Bill, and that is a concern, but our amendments have been tabled to put in place parliamentary scrutiny.

Parliamentary scrutiny of the call-in process should be, as my hon. Friend the Member for Aberavon said, upstream of the actual call-in notification. This is about the definitions of the sectors to ensure upstream scrutiny. Small businesses, particularly start-ups, seek finance, often foreign investment. There are enough barriers in their way and we do not want to create more unnecessarily, but our amendments are about clarifying and ensuring the robustness of the definitions before they hit the coalface of our small businesses and start-ups, whose interests I want to protect. The Opposition are champions of small businesses, are we not?

--- Later in debate ---

[Chi Onwurah]

I thank the hon. Gentleman for his intervention, because I think we are getting to the nub of it. The amendment is necessary because, as I outlined, there is an inherent conflict of interest within the Department for Business, Energy and Industrial Strategy with regard to foreign investment and national security. In addition, there is a need for security-cleared knowledge. I do not know the security clearance of the current members of the Business, Energy and Industrial Strategy Committee, but I doubt it is at the same level as the members of the Intelligence and Security Committee.

[Katherine Fletcher]

Will the hon. Lady give way?

[Chi Onwurah]

I will.

[Katherine Fletcher]

Sorry, I nearly put my hand in the air then—I am still new. Listening to the debate, I was reflecting on the efficiency of the process. We must make sure we do not put Parliament within an operational procedure. Does that not also apply to amendment 3 and the idea of a pre-emptory notification? Is the hon. Lady not seeking to put together some kind of ethereal multi-agency association, when all that is really needed is a phone call to a team of people who are security cleared within BEIS? Does she accept that point?

[Chi Onwurah]

The hon. Lady makes a good point, in that much would be solved by the appropriate phone call at the appropriate time. Had Sir Richard Dearlove been phoned by the right person when the Huawei acquisition was going through, that issue would have been solved. Whichever Government are in power, we are continuously looking for ways to ensure a more joined-up approach to government.

Given the importance of national security—I think we can all agree that national security is the first duty of Government—and given the reality of the conflicting pressures on Departments, I think these proposals to improve scrutiny by involving a multi-agency approach are necessary. I also point the hon. Lady to the approach of the US Government, who have found this to be necessary, as have others of our allies. With that, I will make some progress.