National Security and Investment Bill

Debate between Lord Butler of Brockwell and Lord King of Bridgwater

Report stage
Thursday 15th April 2021 Lords Chamber

[Lord King of Bridgwater (Con) [V]]

My Lords, in supporting the amendment I will first say how disappointed I am to be here at all. As we have gone through the Bill’s stages the argument has been very clearly made. I think a mistake was made in the original construction of the Bill and there now seems to be a determination not to repair the one problem that exists.

I say this as somebody who strongly supports the Bill. We need to have powers for the Secretary of State to prevent serious loss and threats to our national security. I note my noble friend Lady Neville-Rolfe’s comments, citing some of the pretty valuable businesses that should not have been allowed to go. If wiser counsel had prevailed that could have been prevented. This Bill would have helped that.

The other important thing that the Government have got absolutely right is ensuring that, if we are going to have this Bill and give the Secretary of State these new powers, there has to be proper parliamentary oversight of it. But they either were negligent or perhaps unaware of the important background: there are limitations affecting the operation the BEIS Committee. It is not qualified and will not be able to see any “top secret” information. If anybody on the government side seriously suggests that there could not possibly be any “top secret” information arising in connection with some possible takeover or acquisition, that position is not one they can seriously seek to sustain in a rapidly changing, increasingly technical and pretty dangerous world, as the noble Lord, Lord West, said. This is a pity, because I would like to pay my compliments to the Minister for the way he has handled the Bill. In every other respect it has been a model of parliamentary oversight and the proper review of it.

Referring again to what we now call the front row of the scrum, it seems, if I may say so, that we in your Lordships’ House each come from a different background. I, having been Secretary of State for a number of departments and then, for seven years, chairman of the ISC, was able to see this from both sides and saw the importance of there being, in the end, proper oversight of the intelligence agencies and of the intelligence and information that may be coming to them which government Ministers might be relying on.

Somebody has kindly sent me a copy of the letter sent by Jacob Rees-Mogg to Julian Lewis, and I echo something the noble Lords, Lord Campbell and Lord West, said: it is pretty dismissive and merely says that the committee’s role should not be on an ad-hoc, Bill-by-Bill basis, and that it would be a significant precedent, providing parliamentary oversight of the UK’s intelligence community. Although my noble friend Lord Grimstone paid what may have been a perfectly well-deserved tribute in Committee to the qualities of the BEIS Select Committee, the simple fact is, as my two colleagues have said, it will not be allowed to see any top secret information. It is not cleared for top secret intelligence that comes in, which might, on some occasions, be the key consideration that affects a decision the Secretary of State takes, for which there would then be no parliamentary accountability or oversight.

I have some sympathy with the Minister, because there are others who seem to have dug their heels in on this one, but even at this late stage, the argument does not stack up. A sensible decision by the Government would be to include this limited amendment to an otherwise excellent Bill and get on with it. Otherwise, it is a serious gap, and we could well pay the price for it in the future.

[Lord Butler of Brockwell (CB)]

My Lords, in my rugby-playing days I played in the back row, and I think I am right in saying that the noble Lord, Lord Campbell, played on the wing. However, I am very happy, in this case, to be in the front row with the noble Lords, Lord West, Lord Campbell and Lord King, even though the rules might say that that is one too many.

This is a very important amendment, and the House and the Government have to take it seriously. The noble Lord, Lord West, has made an irrefutable case for the involvement of the ISC, on the basis of what the Government promised Parliament during the passing of the Justice and Security Act and subsequently, and there really can be no answer to that.

I will come to the role of the ISC in a moment, but first I will draw attention to an oddity of Clause 61 in its present form if the amendment moved by the noble Lord, Lord West, is not accepted. We have been discussing the content of that clause, which stipulates that the Secretary of State must make an annual report to each House of Parliament about the exercise of the powers in the Bill. The clause requires that the annual report should cover details in no less than 12 areas, and the Government are now proposing to add to that. So much detail—but all the details are administrative. The clause in its present form omits the essential matter in which Parliament and the public will be interested: namely, the actual decisions of the Secretary of State and the justification for them—the grounds on which they were made. That is an extraordinary omission, and the first part of the amendment moved by the noble Lord, Lord West, puts it right.