Scientific Infrastructure (S&T Report)

Lord Ahmad of Wimbledon Excerpts

Tuesday 13th May 2014 Grand Committee

[Lord Ahmad of Wimbledon (Con)]

My Lords, perhaps I may first thank all noble Lords who have participated in the debate, and indeed those who have supported the inquiry both here today and through their work in committee. I would also like to take this opportunity to thank the committee for its report and for raising this important issue. In doing so, I agree with the sentiments expressed by the noble Lord, Lord Krebs, in introducing and initiating the debate. I thank him for his chairmanship of the committee and align myself totally with the comments he made in thanking others who contributed, as I also do with the comments made by noble friend Lord Selborne.

As the committee has recognised, scientific infrastructure plays a key role in maintaining the UK’s reputation for research excellence. Our high-quality facilities attract world-class researchers, attract investment from around the world, and enable research projects that support the wealth and welfare of the nation. That is a point which most noble Lords acknowledged, and indeed most have also welcomed the Government’s positive response. Until my noble friend Lord Jenkin got to his feet I thought I would be in the welcome but rare position of a Government Minister responding at the Dispatch Box having heard nothing but praise for the Government’s position. One is fully aware that sometimes some of the most robust questioning one gets is from one’s own side, and that has been true today.

It is right that we recognise, as all noble Lords have done, that UK research has a strong international reputation for the quality and range of its research facilities. However, as the committee has rightly pointed out, keeping up in the global race means maintaining that lead into the 2020s and beyond—a point that was well made by the noble Lord, Lord Stevenson. That is why, despite tight controls over public spending, we have continued to protect the science ring-fence in cash terms for 2015-16. That is why my right honourable friend the Chancellor of the Exchequer announced last summer an investment of £1.1 billion a year in science and research infrastructure, thus protecting and not cutting funding in real terms to 2020-21. That means that overall BIS investment in science and research will reach £5.8 billion in cash terms for 2015-16, an increase in the overall allocation compared with recent years. I can therefore reassure noble Lords that we are fully committed to our world-class UK research base and the scientific infrastructure that supports it.

I shall now explain the steps being taken to implement some of the key recommendations and address some of the concerns and questions that have been raised about the strategy. The ball was set rolling on that by the noble Lord, Lord Krebs. I turn to the long-term strategy for capital investment by taking a strategic approach to science and research capital investment, a point made by several noble Lords. The report recommends that the Government should produce,

“a long-term strategy and underpinning investment plan for scientific infrastructure”.

Our unprecedented long-term capital investment provides an ideal opportunity to take a strategic view of our science and research infrastructure and consider where we should prioritise investment over the coming years. That is why, as has been acknowledged by my noble friend Lady Sharp of Guildford and the noble Lord, Lord Krebs, on 25 April the Chancellor and the Minister for science launched a consultation to identify the strategic priorities for long-term science and research capital investment. The noble Lord, Lord Stevenson, asked me a question about budgets. There can be no better illustration of the Government’s intent in terms of joined-up thinking than the fact that the announcement was made jointly by my right honourable friend the Chancellor and the Minister for science. That demonstrates the long-term commitment and support of the Treasury.

The consultation will feed into a science capital road map that will set out the Government’s long-term vision for world-leading science and research infrastructure. The road map will be central to the science and innovation strategy, which will be published at the around the same time as the Autumn Statement. The consultation seeks evidence on two key questions to inform the development of the road map. First, what balance should we strike between meeting capital requirements at the individual research project and institution level relative to the need for large-scale investments at national and international levels? Secondly, what should be the UK’s priorities for large-scale capital investments in the national interest, including collaborating on international projects? That point was made by several noble Lords, including the noble Lord, Lord Hunt.

The strength and breadth of excellent research in the UK generates a huge range of potential investment opportunities. Despite the Government’s unprecedented investment in science capital, demand will inevitably outstrip funding. Priorities identified through the consultation will therefore be used to inform strategic judgments made in the science capital road map. The committee report also recommends that the scientific infrastructure strategy should take into account local and regional benefits, the importance of national and regional connectivity, and the wider facilitation of access for users. I shall return to the point about access and connectivity in a moment, but for now I would stress that the capital consultation is a UK-wide consultation which informs a UK-wide investment programme. Our strategy will recognise the important regional benefits of science capital investment, but investment will remain on the basis of scientific excellence and national need.

The noble Lord, Lord Stevenson, asked a specific question on the ministerial advisory group. The answer is that, yes, it is as per the committee report; the structure has been set up and the group will be chaired accordingly, so the Minister will not chair it. The group will report to him. The Government have accepted the committee recommendation of a time-limited ad hoc advisory group to advise specifically on the development of the long-term strategy on scientific infrastructure. The group, whose terms of reference have been broadened to look across the entire science and innovation landscape, will advise Ministers on how the Government respond to the capital consultation and help to inform the science capital road map. The group met for the first time in April and is chaired, as recommended by the committee, by the BIS director-general of knowledge and innovation. Membership of the group, as several noble Lords acknowledged, includes representatives from the research councils, national academies, higher education funding bodies, industry and charities.

I now turn to the issue of sustainability and operational cost, which was raised by the noble Lord, Lord Krebs, and by my noble friend Lord Jenkin, and the issue of greater alignment between capital investment and operational costs. The Government recognise that sustainability is a critical criterion in identifying capital investment priorities. Full consideration needs to taken of both operational costs and the research costs of using the infrastructure to its maximum potential, while of course being mindful of the need to balance capital intensive research with other potential calls on resource funding.

That is why the capital consultation is seeking advice on the sustainability of capital investments, including the underpinning operational costs. To address some of the concerns flagged by the noble Baroness, Lady Sharp of Guildford, we hope to end the regime of, as she put it, blowing hot and cold on funding decisions. The consultation sets out long-term sustainability on that basis. While capital budgets have been set to 2021, science and research resource budgets, as with all other areas of government resource spending, will be considered as part of the 2015 spending review. The consultation will inform the science capital road map and identify priorities for future funding.

The committee is also right to highlight the benefits of equipment sharing. Equipment sharing can be instrumental in creating concentrations of research activity between universities and within industry; it can increase efficiency by reducing the number of items that need to be purchased and obtaining higher load factors on existing items; and it enables capital items that are too large for an individual institution to be purchased. Many universities and those in the research community are already actively engaged in facilitating equipment sharing, and a number of regional alliances of universities benefit from shared registers of research equipment. The challenge is to build on this strong position by facilitating even more collaboration and equipment sharing.

I turn to some of the specific questions asked by noble Lords that I have not yet had a chance to answer. The noble Lords, Lord Krebs and Lord Hunt of Chesterton, raised issues about infrastructure building, international collaboration and service provision, and spoke of how local economies can benefit from international positioning. This is fully acknowledged by the Government. Science is an increasingly global endeavour, which means identifying UK priorities for capital investment in science and research. Two major international projects have recently been identified for investment: the Square Kilometre Array and the International Space Station exploitation programme. I agree with the sentiments expressed by various noble Lords in that regard.

The noble Baroness, Lady Sharp, asked specific questions about apprenticeships and the skill levels being reached. The apprenticeship and trailblazer schemes announced by the Government work in partnership with employers to ensure that the apprenticeships being made available are in line with what is being demanded by employers. On the specific figures which the noble Baroness asked for, perhaps I could write to her and copy in all noble Lords who have participated today. The noble Baroness also asked about consultation on international projects. Again, I shall write to her on her specific questions.

My noble friend Lord Selborne and the noble Lord, Lord Stevenson, mentioned the Natural Environment Research Council. The NERC is considering how to secure the long-term future of its research centres and the national interest they serve. No decision has been made to privatise these centres. The NERC is committed to maintaining and curating environmental data records and ensuring their widest possible use for research and wider societal benefit. This is an important consideration in evaluating potential options for the centres.

I reassure my noble friend Lord Jenkin of Roding that capital investment in nuclear research and development is not excluded from the Government’s strategic approach to scientific infrastructure. As recommended by the committee, our science capital road map will take a comprehensive look at the scientific infrastructure needs of the UK. Strategic priorities for investment will be informed by our consultation on long-term science and research capital investment. It includes as a potential project a proposed £60 million investment to extend the capabilities of the National Nuclear User Facility. As part of the consultation process, the Government would welcome views on any further opportunities for capital investment in nuclear R&D which were not identified in the consultation document.

The noble Lord, Lord Hunt of Chesterton, spoke about the need for international working and the role of the private sector. We need to encourage further projects like MedCity, an initiative of the London mayor which is modelled on the Tech City Investment Organisation. MedCity is a strategic promotional agency for life sciences in the London, Oxford and Cambridge triangle. It will seek investment in the sector from around the world, provide a coherent voice to Governments and the EU, and identify gaps in the triangle’s offer and fill them by bringing together key players from across all sectors.

I believe that I have answered most of the questions asked by noble Lords—I have not ignored Pfizer, which I will come to at the end. Perhaps I may mention a few of the ad hoc and capital projects that have been announced: the M3 space mission, PLATO, and the polar research ship. The UK’s intention to invest in the former was announced in March 2014 and its intention to invest in the latter was announced on 25 April 2014. These projects, two of which I have cited, are where we are working alongside other partners—international partners and delivery partners. The UK Space Agency is working with the European Space Agency and our delivery partners for the new polar research vessel are also of an international scope. If you look at the European Spallation Source, the delivery partners include Sweden, Denmark and other European partners. These announcements were made to honour the international commitments that were required in ensuring that we could also play our part in these projects. The UK Government are fully aware of the importance of playing a partnership role not just in Europe but globally.

Finally, the noble Lords, Lord Krebs and Lord Stevenson, raised the issue of Pfizer and AstraZeneca. When I was preparing for this debate, I said to my wife, “I think this one may come up”. Indeed, she had to endure part of the proceedings, as did my two year-old son, as the Pfizer chief executive was scrutinised by the committee in the other place today. I am not sure what my son made of it. I will outline the Government’s position. I can assure all noble Lords that the Government’s absolute priority in this matter is to secure great British science, research, innovation and manufacturing jobs in the life sciences sector. We are focused on what is best for the UK and that is clear in the consistent message we have sent to both Pfizer and AstraZeneca. As noble Lords will be aware, there has been no formal bid by Pfizer for AstraZeneca. Clearly, responding to any bid would be a matter for the respective boards and shareholders of the two companies. However, the Government’s position is clear that in any proposal that is put forward, UK interests must be consistent and prioritised.

This debate has been reflective of the tremendous work that the committee has carried out in this most important area, which is about securing the long-term future of science and research in this country. We have challenged the research community to match our greater investment with greater collaboration, better equipment sharing and improved access for industry, making the nation’s science even more accessible and efficient. We have also commissioned Sir Ian Diamond to work with universities, research councils, HEFCE and others to look further at how, working together, we can make the most of science capital funding by ensuring that researchers have access to state-of-the-art research equipment.

Finally, it remains for me to thank all those who have participated today and to thank once again the members of the committee for their valuable work. I hope that noble Lords are assured that the recommendations of this report have been taken very seriously by Her Majesty’s Government; indeed, many recommendations have been acted upon already. The Government’s long-term commitment to invest in science and research capital is evidence of our belief that scientific infrastructure is vital to the success of our world-class UK research base.

On a personal note, I was involved with one of the international visits a couple of weeks ago by a delegation from Pakistan. I spoke on behalf of David Willetts at the launch of the Lahore Knowledge Park, which is a way of enabling a developing country to look forward in terms of developing its research capabilities. One of the key things the Pakistanis are keen to do is to work with our research base, which again demonstrates its reputation on the global stage. As recommended by the committee, we will ensure that the UK makes the most of this unprecedented opportunity by identifying strategic priorities for long-term capital investment.