National Security and Investment Bill

Lord Bilimoria Excerpts

3rd reading
Thursday 22nd April 2021 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, from the Cross Benches I join previous speakers in thanking all the House of Lords officials and the Bill team.

As we have previously outlined, the Bill has a valid and important principle at its heart: the protection of national security and the lessening of economic interference in industrial control by hostile actors. Nobody would disagree with that intention, and the business community is no different. The CBI, of which I am president, supports those principles and stands ready to help make a success of the new regime. We have heard from a wide range of businesses likely to engage with the regime, many of which have complex international supply and value chains and all of which recognise the need for such regimes and already comply with counterpart regimes across the world.

However, to make a success of such a regime in a manner that reflects the approach of many of our international counterparts, the concerns of a wide subsection of the business community should continue to be heard. As I have noted previously, the extra- territoriality of the Bill, combined with no set de minimis function, could inadvertently lead to a real rise in bureaucracy at micro level and slow inward investment at macro level, so it is critical that the Government continue to engage with business and industry on the practical application of the regime. The fast-track processes and expert advisory panels that have been discussed are a very welcome move. The amendments moved by the noble Lord, Lord Callanan, on future reporting on the progress of the regime and on omitting the 15% threshold for significant control are also welcome.

Business welcomes the Bill, and I give credit to many noble Lords who have taken part, including the noble Lord, Lord Leigh, the noble Lord, Lord Clement-Jones, the noble Baroness, Lady Noakes, the noble Lord, Lord Lansley, and the noble Lord, Lord Hodgson —I could go on. The more detailed reporting requirements provide more clarity on the average processing or decision time for notifications, whether mandatory or voluntary. Business has been concerned about the transparency of the statutory process, so we welcome the Government’s reflection of that in the Bill. Moreover, the removal of the 15% threshold for significant control is welcome, as, while such a percentage may represent a critical investment in other areas, it is unsuitable when applied to significant control more widely.

Looking ahead, the spirit of dialogue that has allowed such amendments to be moved should continue to ensure that both business and government are equipped to make a success of the regime. This Bill shows the House of Lords at its best: it has greater strength by far in depth and breadth of world-class expertise than any other Chamber in the world. This Bill has seen this skill applied on a cross-party basis, enabling this House to play its role as a revising Chamber to help change legislation for the better. This can only happen, however, if the Government are prepared to listen—which they have. We are grateful to the Government, and long may the spirit of collaboration continue.