Paying Polluters: UN Report

Debate between Lord Callanan and Lord Browne of Ladyton

Monday 22nd April 2024 Lords Chamber

[Lord Browne of Ladyton]

To ask His Majesty’s Government what assessment they have made of the United Nations Special Rapporteur report on Paying polluters: the catastrophic consequences of investor-State dispute settlement for climate and environment action and human rights, published on 13 July 2023.

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

My Lords, investor-state dispute settlement mechanisms offer investors an independent means of legal redress to seek compensation following a breach of international investment agreements. The report notes that, outside the UK, investors have brought ISDS claims against climate change measures; however, the UK has not faced a successful ISDS claim. On 22 February we announced withdrawal from the energy charter treaty, to avoid remaining in a treaty not aligned with our energy security and net-zero ambitions.

[Lord Browne of Ladyton (Lab)]

My Lords, on 7 December we had a debate on a Motion moved by the noble Baroness, Lady Hooper, on Latin America. In the context of our trade deal with Colombia, my friend, the noble Baroness, Lady Coussins, raised the issue of the inherent manifold injustices of the ISDS. The Minister responding to the debate, the noble Lord, Lord Ahmad, wrote in response:

“ISDS is an effective means of resolving … disputes”,


and the Government are

“content with the standard of protection”

provided. So it is surprising that none of the free trade deals concluded since Brexit contains an ISDS—and the absence of one is an explicit goal of our negotiations for a UK-Canada deal. What is the Government’s view of an ISDS as a means of resolving disputes? If they have shifted their view, what are they doing to ensure that their new approach is reflected in trade with Colombia?

[Lord Callanan (Con)]

This is a complicated area. Of course, these treaties are bilateral, and they also help to protect the investments of UK companies investing in other overseas territories. However, the UK’s investment policy is designed to protect the UK’s right to regulate in the public interest, and so far we have been successful in that, in that we have not seen any successful claims against us.

Biomass: Power Generation

Debate between Lord Callanan and Lord Browne of Ladyton

Wednesday 13th March 2024 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes a good point. It is not just Drax; there are many commercial and domestic biomass boilers as well that I am sure would be happy to use sustainable British-produced biomass.

[Lord Browne of Ladyton (Lab)]

My Lords, when biomass subsidies were initially awarded, was it envisaged that the Drax power station would receive more than £2 million a day in biomass subsidies, emit about 12 million tonnes of CO₂ a year, and, last year, take more than 40,000 tonnes of wood from old-growth forests in British Columbia—a practice, incidentally, which Drax previously decried in its own sustainability reports? If not, what criteria will the Minister’s department use when a decision is made about whether subsidies should be extended beyond 2027?

[Lord Callanan (Con)]

The noble Lord posed a number of different questions. First, as I said, sustainability criteria are extremely strict. They are policed by Ofgem. I have spoken to the chief executive of Ofgem about this—it is investigating the allegations. It is Ofgem’s job to uphold the rules and it will not hesitate to take action if the rules are breached. We have some strict sustainability criteria, and it is important that Drax and every other producer abides by those rules. Drax is responsible for about 5% of the UK’s electricity generation, and noble Lords should be aware that this is important for keeping the lights on, and for British energy security.

Heat and Buildings Strategy: Gas Boilers

Debate between Lord Callanan and Lord Browne of Ladyton

Tuesday 28th February 2023 Lords Chamber

[Lord Callanan (Con)]

I partly agree with my noble friend. It is a good thing that the rectory was insulated anyway, whatever kind of heating was installed in it. Heat pumps obviously work best in well-insulated properties, but you can now get high-temperature heat pumps that work in all scenarios. I agree with my noble friend that, as I said earlier, there is a multiplicity of property types and different technologies will work in different properties.

[Lord Browne of Ladyton (Lab)]

My Lords, from the evidence that it received, the Environment and Climate Change Committee, of which I was a member at the time, concluded in its inquiry on the boiler upgrade scheme that a shortage of relevant skills is a major barrier to the take-up of the boiler upgrade scheme and low-carbon heat. The microgeneration certification scheme, which certifies whether companies are capable of fitting renewable heat products, gave evidence to the committee that the three-year duration of the scheme and

“the delayed release of the market-based mechanism to support heat pump growth”

did not

“provide sufficient long-term certainty to grow the sector and encourage retraining.”

Despite this investment in training, does the Minister agree with the MCS that a long-term policy of decadal length is required to create a stable policy landscape to encourage investment in training? If he does, what do the Government intend to do about that?

[Lord Callanan (Con)]

The noble Lord will be aware that the next Question is on the boiler upgrade scheme; his question might perhaps have been more appropriate there, but I agree with him. The Answer I gave earlier shows what we are doing to invest in upgrading existing skills. It is a long-term job over decades, as the MCS correctly said. I was at a reception with the MCS last week, talking to it about this very issue.

Climate Change: Behaviour Change

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 3rd November 2022 Lords Chamber

[Lord Browne of Ladyton]

To ask His Majesty’s Government, further to the advice that they have received from the Climate Change Committee that 62 per cent of emissions reductions involve some form of human behaviour change, what plans they have to introduce a comprehensive behaviour change strategy.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the Government recognise that our net-zero target will require people to make changes in how we do things, such as the way that we travel or heat our homes. We want to empower people to make greener choices while maintaining freedom of choice and fairness. As one example of government action, I point out that this summer we launched the “Find Ways to Save Energy in Your Home” page on GOV.UK, which provides homeowners with tailored advice.

[Lord Browne of Ladyton (Lab)]

I thank the Minister for that Answer. He will remember that on 20 October, in the debate on net zero and behaviour change, he said more than once that the heat and buildings strategy is an example of how the Government are providing advice and support to the public to help them to make green choices. The Climate Change Committee’s assessment of the strategy noted that significant challenges remain, particularly about the skills needed to deliver it. Its June 2022 progress report said that the promised action plan for net-zero skills has not yet been published, even though the EAC said a year ago that

“the workforce of the future is being undermined by a lack of evidence-based Government policies on how jobs will be filled in green sectors”,

while the Scottish Government published their skills plan in December 2020. When will the net-zero skills plan be published?

[Lord Callanan (Con)]

The noble Lord makes a good point: providing the skills necessary for all the future green jobs is extremely important, and we are taking action on that. We have launched a number of different training competitions and, through BEIS alone, provided about £20 million for two sets of training competitions that have provided tens of thousands of new training places. The DfE has a large skills programme as well, and we work closely with it to ensure that we provide the workforce with the skills that they require.

TRIPS Agreement: Vaccines

Debate between Lord Callanan and Lord Browne of Ladyton

Monday 11th July 2022 Lords Chamber

[Lord Browne of Ladyton]

To ask Her Majesty’s Government how, and to what extent, the temporary waiver of provisions of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), agreed at the World Trade Organization’s Ministerial Conference on 17 June, will expand access to current and new vaccines, given that it does not include a waiver of trade secrets.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the consensus-based agreement reached at the WTO’s 12th ministerial conference streamlines compulsory licensing processes for developing countries to manufacture and export Covid-19 vaccines while preserving the incentives to innovation that the international IP system provides. We welcome that the agreement does not undermine the existing IP framework, which has been key to the effective response to the pandemic.

[Lord Browne of Ladyton (Lab)]

My Lords, regrettably, the Minister’s Answer—I do not blame him for this as he was probably following his brief—did not address the issue that, without the inclusion of a waiver of trade secrets, essential access to critical manufacturing know-how and clinical data, and therefore to the ability to manufacture new vaccines, is denied. Why is this our Government’s policy, and why did our negotiators, who spent 18 months resisting this waiver completely, try to weaken the text further by requesting the deletion of the reference to the possibility of expanding the agreement in TRIPS on Covid-19 to include therapeutics and diagnostics in six months’ time? Who on earth instructed them to do that?

[Lord Callanan (Con)]

I disagree. This is a very good agreement, and the Government have seen no evidence that IP rights, including the protection of undisclosed information or trade secrets, are any barrier to accessing treatments for Covid-19. The problem now is that we are seeing supply effectively outstrip demand, with the current level of vaccine production. There is evidence—reports of a South African Covid-19 vaccine plant being at risk of closure because it has no orders, and the Serum Institute of India halving production of AstraZeneca’s vaccine due to no new orders.

Net-zero Test for New Policies

Debate between Lord Callanan and Lord Browne of Ladyton

Tuesday 11th January 2022 Lords Chamber

[Lord Callanan (Con)]

I agree completely with the noble Lord for a change. He is quite right to make the case for new nuclear. Indeed, the other place passed the nuclear Bill just yesterday, so it will be coming to this House shortly; I look forward to debating it alongside the noble Lord. I already meet with Scottish Ministers, although I fear that my efforts to persuade them of anything are very much in vain.

[Lord Browne of Ladyton (Lab)]

My Lords, I take the Minister back to his own reference to the key commitment that the Government made under the heading of “Embedding Net Zero in Government” in the Net Zero Strategy; the commitment that he referred to was to publish an update of progress against a “set of … indicators” for achieving our climate change goals on an annual basis. What progress is being made in taking forward this commitment, and what scrutiny will there be of the agreed indicators?

[Lord Callanan (Con)]

We are indeed committed to publishing this, exactly as I said, and we are making a considerable commitment towards meeting our targets. We have the most ambitious programme of emissions reductions in the whole of the G7. Let me give an example of how difficult these areas are. It is easy to say that, yes, we must embed net zero in all our policies, but the other place is currently having a debate brought forward by the noble Lord’s party on removing VAT from domestic fuel. Everybody can see why that might be important at the moment but, arguably, such a test would fail the commitment on net zero, since most fuel is still produced by carbon-intensive methods. These are difficult policy areas; we have to balance the overarching aim of net zero with other commitments on fuel poverty, et cetera.

Advanced Research and Invention Agency Bill

Debate between Lord Callanan and Lord Browne of Ladyton

Report stage
Tuesday 14th December 2021 Lords Chamber

[Lord Callanan (Con)]

I thank noble Lords who have contributed on this group of amendments. Turning to Amendment 6 in the names of the noble Lords, Lord Clement-Jones and Lord Fox, the noble Baroness, Lady Chapman, and the noble Viscount, Lord Stansgate, I start by thanking my noble friends Lady Noakes and Lord Patten for their supportive statements in general as the Bill has progressed through this House.

ARIA will be a lean, streamlined agency which we expect to employ people in the tens. It will recruit a small team of exceptional individuals with both technical expertise and scientific vision. I contend that it is appropriate that we consider how their time, focus and energy is best applied.

We have designed this new, unique agency to operate and behave in a way we do not usually see in the public sector—with leanness, agility and efficiency being core to its function. We have also tasked it with embracing risk and failure. As noted by my noble friend Lady Noakes during consideration in Grand Committee and again this evening, these exceptional scientists should not be fearful of or driven to risk-aversion by the prospect of FoI disclosures, nor should they be distracted or bogged down by the bureaucracy of fulfilling such requests.

The issue of the volume of FoI requests we expect ARIA to be subject to has been raised throughout the passage of this Bill, and comparisons have been drawn between the number of requests received by smaller public bodies such as parish councils, and other research organisations such as UKRI. Pursuing this exemption reflects our expectation that, given ARIA’s profile, its focus on high-risk research and the speculation on its activity so far, it would indeed be subject to a disproportionately high number of FoI requests. It is not accurate to suggest that ARIA would get the same number as a single UKRI research council or other small organisations. It is already clear that its activities will generate a much higher degree of interest and, therefore, corresponding requests.

The noble Lord, Lord Clement-Jones, made a comparison to the number of FoI requests to DARPA. Let me remind the noble Lord that when making an FoI request in the US, requesters are required to consider paying applicable fees up to $25. If requests are expected to exceed this cost, the requester is notified to agree additional payment. While fee waivers or reductions can be granted in certain circumstances, it is not a like-for-like comparison to the FoI process in the UK. Therefore, in my view it is not right to assume that ARIA will receive a similar number of FoI requests to DARPA.

I also reassure noble Lords that our reasons for placing ARIA outside FoI legislation are specific and do not extend to other new public bodies, which will not have the same requirement for flexibility and agility and therefore will not require the same exemption.

However, to suggest that the agency will therefore be operating under a veil of secrecy is, in my view, not accurate. We expect ARIA to be an outward-facing and transparent body, which will proactively provide information about its activities to encourage collaboration around its programme goals, increase public understanding of its work and build public trust. Alongside this, it will be held to account by robust transparency arrangements. Let me remind noble Lords about them. It will publish its annual report and a statement of accounts, which will be laid before Parliament. It will be subject to annual audits by the National Audit Office. It will appear before and be accountable to Parliament through its chief executive officer and it will remain, of course, an arm’s-length body of my department in BEIS.

That said, I have also taken into account the opinions of noble Lords on this matter. To reflect the considered debate in Grand Committee on the balance of ARIA’s transparency and accountability arrangements with this unique freedom, I am happy to provide further assurances to noble Lords on ARIA’s reporting requirements. Annually, ARIA will proactively publish information on its regional funding and will make information publicly available on all delivery partners supported through the full range of its funding mechanisms. Taken alongside and together with ARIA’s annual report and accounts, these are significant and robust transparency arrangements which will ensure Parliament and the general public are informed of ARIA’s activities, the projects it funds and where it funds them.

I hope that, given these reassurances, noble Lords are satisfied that the FoI exemption serves an important function for ARIA and that we have struck the right balance here. I thank them for their input.

[Lord Browne of Ladyton (Lab)]

Before the Minister moves on to the next amendment and off the FoI amendment, has he read the Department of Defense information handout? That makes it clear that the vast majority of those who request information from DARPA would not have to pay any fee at all. Can the Minister share—either now or at some point—with noble Lords the genesis of his belief, which he has now repeated a number of times, that everyone who asks for information from DARPA has to pay a fee in the United States? If that is not true, then the comparison that we all make is a relevant comparison and is the only data; the only other thing we have is the Minister’s animus against freedom of information requests. And is he aware of the provisions of Section 19 of the Freedom of Information Act?

[Lord Callanan (Con)]

I think the noble Lord will find, if he looks at my remarks, that I did not say that every applicant will pay fees but that there is a general expectation that a fee of $25 will be charged, or even more in some cases if more information is required. However, there are exemptions to that, which can be exercised. If the noble Lord looks back at Hansard, he will see that I did not say that everyone would be charged a fee. In most cases, a fee would be applicable, but there are certain exemptions.

I turn to Amendment 7, in the names of the noble Lords, Lord Clement-Jones and Lord Fox, and the noble Baroness, Lady Chapman, which relates to procurement regulations. I note that the noble Lords did not address this, but it is worth while setting out the Government’s position on that amendment. I believe there are clear reasons why this exemption is beneficial to ARIA and why it will be integral to the agency’s effective operation. First, unlike other R&D funders, ARIA will be commissioning and contracting others to do research for it in pursuit of its own technological visions or research goals. The process of contracting and commissioning means ARIA will be operating in fundamentally different ways from traditional R&D grant making, where procurement rules already do not apply. Placing ARIA outside the existing public procurement rules will mean that the agency can freely procure expert investment and consultancy advice, which will be important given the highly varied and technical nature of the agency’s work.

While we imagine that the bulk of ARIA’s research activities will be carried out by its partners and funders, it remains possible that ARIA may wish to procure and own a piece of research equipment to crowd-in interest from other research partners, or to accelerate the progress of a project. Freedom from traditional procurement rules will facilitate ARIA making those investments quickly and with ease. In my view, it is appropriate for ARIA to have greater flexibility than the R&D exemption would afford it so that it can design and tailor its contractual arrangements to precisely suit its research endeavour.

Secondly, in designing ARIA, we have put a premium on the agency investing and acting quickly. In our view, this agility would be incompatible with the public tendering process mandated in the Public Contracts Regulations 2015, which can require contracting authorities to put contracts out to open tender for up to two to three months. Such a delay could prevent critical investments being made with sufficient speed or, indeed, at all. In choosing to exempt ARIA from standard procurement rules, we have learnt from the successful approach taken by DARPA, which benefits from “other transactions” authority, giving the agency the flexibility to operate outside traditional US government contracting standards. It is our belief that ARIA should benefit from similar flexibilities.

I also dispute the notion that taking ARIA outside traditional procurement rules will leave the agency vulnerable to cronyism. I think this was a point made by the noble Baroness, Lady Chapman, in Committee. This exemption will ensure ARIA’s leadership and programme managers—who have been recruited for their technical expertise and scientific vision—can take decisions on ARIA’s procurement with autonomy, as they will have the freedom to procure at arm’s length from government and Ministers.

As I have already detailed, ARIA has clear lines of accountability, transparency and scrutiny in the preparation of its an annual report, scrutiny by the NAO and an annual independent audit to report on its procurement activities. As I have already alluded to, to reflect the constructive and considered debate in Grand Committee, ARIA will publish information on its delivery partners, and this expectation will be detailed in ARIA’s framework document. I thank the noble Baroness, Lady Chapman of Darlington, for tabling an amendment to that effect previously. I hope she and other noble Lords welcome this principled commitment to transparency, which would extend to delivery partners supported through the full range of ARIA’s funding mechanism.

In conclusion, I hope noble Lords have been assured that exempting ARIA from traditional procurement rules will be integral to the agency’s effective operation. The package of accountability, conflict of interest procedures and governance provisions that sit within this Bill are an appropriate counterbalance to that. Taken in the round, this represents an essential, proportionate and balanced freedom, placed in the hands of ARIA’s incoming leadership and programme managers. Taken together, I hope that the assurances and explanations I have been able to provide for noble Lords will allow the noble Lord to withdraw his amendment.

Advanced Research and Invention Agency Bill

Debate between Lord Callanan and Lord Browne of Ladyton

Committee stage
Monday 22nd November 2021 Grand Committee

[Lord Callanan (Con)]

Because it is a fairly new and exciting agency doing new things. I suppose we will have to disagree on that. There is no point and nothing to be gained by doing otherwise. In designing ARIA, we are envisaging a lean agency that will employ people in the tens. I do not know how many people across government are currently employed to respond to the hundreds if not thousands of FoI requests that we get, but given the bundles of documentation that sometimes pass my desk, there must be many hundreds of civil servants engaged in doing nothing other than responding to these fishing expeditions. As I said, ARIA will be an agency employing people in the tens, with around 1% of the R&D budget.

[Lord Browne of Ladyton (Lab)]

My Lords, I am grateful to the Minister for giving way. I invite him to reread what he said at Second Reading. He virtually invited people who are being refused the opportunity to ask ARIA questions to ask them of his department. Then it will be a true comparison. I invited him to compare an organisation of the nature of a research council with one such as DARPA, not to compare DARPA with a government department. At Second Reading, he himself listed a whole number of organisations, including government departments, that are subject to FoI. It is an invitation to people who are refused the discipline of talking to a smaller organisation in a proportionate way to flood a department with requests and take up even more time. With respect to the Minister, I think this is verging on an irresponsible attitude towards this argument, even in his own interests.

[Lord Callanan (Con)]

I can assure the noble Lord that people need no invitation from me to table FoI requests to my department. They are well capable of doing it. I think some people already have forms set up on their word processors to submit some of these things with gay abandon.

Anyway, in designing ARIA we are envisaging an agency that will be lean and streamlined. It will employ people in the tens, and we strongly believe that it needs to be agile and efficient. “Lean”, “streamlined” and “efficient” are not always words that are used to describe nominal usual public bodies. However, as my noble friend Lady Noakes has attested to, this context has always been at the forefront of our minds in bringing forward this Bill.

We have carefully considered which procedures are conducive to ARIA’s success. I recognise here that part of ARIA’s success depends on it gaining public trust and being transparent and accountable for its activities, as the noble Lord, Lord Fox, called for. I believe that we have found the right balance in freeing this small agency to fund high-risk, critical research but to do it differently, with appropriate visibility to Parliament and taxpayers.

The noble Lord, Lord Broers, raised some concerns about the protection of technological gains in sensitive projects. I note at this point that there are, of course, existing commercial confidentiality exemptions to the FoI Act, as referenced by the noble Lord, Lord Clement-Jones. All requests still require processing and we are conscious of this in making the decisions to exclude ARIA.

Much has also been said on transparency today in the contributions from the noble Baroness, Lady Chapman, and the noble Viscount, Lord Stansgate. I maintain that the right provisions to hold ARIA to account are the ones that I outlined at Second Reading. They are the publishing of an annual report and statement of accounts, which will be laid before Parliament, as set out in the Bill; being subject to annual audits by the National Audit Office; and being accountable to Parliament through the CEO, who will be the agency’s accounting officer.

In addition, as the noble Lord, Lord Browne, has pointed out, ARIA will remain a BEIS arm’s-length body, and my department will work with ARIA’s leadership to agree the appropriate arrangements for its scrutiny and oversight in the interests of good governance.

We expect ARIA, as far as possible, to have a culture of transparency, and we hope that will be championed by its incoming leadership. Working across the R&D community, and indeed with Parliament and the public, to communicate ARIA’s activities will be critical to ARIA’s commercial and research success. Given that, I hope the Committee will understand that I cannot accept or agree with this amendment. I am sure the noble Lord, Lord Clement-Jones, has a different opinion.

I turn now to the exemption the Bill affords ARIA from the Public Contracts Regulations 2015, and to Amendments 24 and 42 in the name of the noble Baroness, Lady Chapman. I think she omitted to speak in favour of her amendment, but I will respond to it anyway.

Our decision to exempt ARIA from the contracting authority obligations in the Public Contracts Regulations hinges on two critical expectations: first, that ARIA will be commissioning and contracting others to do research for it; and, secondly, that ARIA’s programme managers should be acting and investing with agility and speed. When ARIA is commissioning and contracting others to do research for it, it will be operating in a fundamentally different way from traditional R&D grant-making where procurement rules do not apply.

In my view, it is therefore appropriate for ARIA to be given freedom from procurement rules to ensure that the agency has greater flexibility in its contractual arrangements. However, to counterbalance that and to provide the assurance that this freedom will be used properly, we have provided a non-legislative commitment for an independent auditor to report annually on ARIA’s procurement activity. This measure, alongside ARIA’s robust conflict of interest procedures, the wider accountability I just talked about, and governance provisions, are an appropriate set of arrangements. I hope that reassures the Committee that we have taken all these matters into consideration and that this exemption is both essential to ARIA’s effective function and proportionate to the tasks it faces. Therefore, I invite noble Lords not to press their amendments.

--- Later in debate ---

[Lord Browne of Ladyton (Lab)]

I remind the Minister that, not so long ago, he secured Amendments 37 and 40 on the basis of the sight, by a limited number of us, of a draft agreement. It is not unreasonable to ask him to at least consider reciprocating.

[Lord Callanan (Con)]

I thank Members who have contributed to this brief debate. I am disappointed that the noble Lord, Lord Browne, did not exercise us again with his Daily Telegraph subscription, which I was very impressed by. I congratulate the noble Lord, Lord Fox, on saving the best to last with his bravura amendment. He has obviously been searching his thesaurus over the weekend for appropriate analogies. It was well moved and I do understand the seriousness of the issue and the noble Lord’s intention, which relates to the desire, as we have heard, to understand more details of how ARIA will work in practice.

As I mentioned at Second Reading, ARIA’s framework document is a governance document. It is a standard requirement for public bodies—which, of course, ARIA will be. As suggested in the noble Lord’s amendment, it will set the parameters for ARIA’s relationship with BEIS, as its sponsoring department. That is indeed its very purpose.

The noble Lord, Lord Clement-Jones, referred to the guidance published by Her Majesty’s Treasury, and I reassure him that, by drawing on the Treasury’s guidance, ARIA’s framework document will ensure that the agency and BEIS work effectively together. It will outline ARIA’s accountability, its decision-making and its financial management structures, along with some broader reporting requirements. However, it is not the appropriate place to codify ARIA’s relationship with other government departments. Other departments have no accountability relationship with ARIA, so its terms of engagement with them are a question of strategy rather than governance. The framework document will not contain any information relating to ARIA’s strategy in terms of collaboration, its project portfolio or indeed, its areas of research interest, all of which, I know, are of great interest to noble Lords.

On the sequencing of publication and commencement, given that both ARIA and the department need to be in agreement on the framework document, I reiterate, as I said at Second Reading, that it is therefore not possible to finalise it before ARIA’s senior leadership is in place, as my noble friend Lady Noakes, pointed out. It is not possible for the framework document to be published in advance of ARIA coming into legal existence. Similarly, the framework document for UKRI, for example, was finalised and published after that body came into legal existence.

Finally, it is worth noting that framework documents are live publications and are amended regularly to reflect any changes in the sponsor department or indeed the arm’s-length body itself, and they are all thoroughly reviewed every three years.

On the point raised by the noble Viscount, Lord Stansgate, on whether the framework document will outline the role of the Government’s Chief Scientific Adviser on ARIA, it is likely to. I will be happy to write to the noble Viscount with any more detail that I can on that.

I hope therefore that noble Lords understand that, in our view, there is a logical process to follow in the establishment of a public body and therefore that they will accept my assurance that we will publish the finalised framework document as soon as practicably possible.

Private Equity Takeovers

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 21st October 2021 Lords Chamber

[Lord Callanan (Con)]

The UK’s merger regime, which I remind the noble Lord was put in place by the last Labour Government, recognises that overseas investors play a major and positive role in the UK economy, and that many UK sectors have benefited substantially from takeovers and mergers. Such transactions can help to boost UK jobs, increase management efficiency and support businesses to grow on the world stage. We benefit from being an open and accessible economy.

[Lord Browne of Ladyton (Lab)]

My Lords, I am sure that the Minister is aware of the latest Bank of England financial stability summary, which specifically warns that the current level of debt-fuelled US equity takeovers poses a growing threat to the UK economy. Bearing that in mind, what assessment has he made of the US National Bureau of Economic Research’s academic study, which found that when private equity firms buy up public companies, employment shrinks 13% in two years after the acquisition, and the fact that that has prompted senior Democrats to introduce the Stop Wall Street Looting Act to prevent private equity funds forcing companies they purchase to take on new loans to extract dividends they could not otherwise afford? Does he appreciate the irony of the potential of that Act becoming law in the US?

[Lord Callanan (Con)]

My Lords, of course we look at all transactions closely and there are specific grounds to intervene, set out by the Government that the noble Lord was actually a member of, as I said. We recognise the need for greater accountability for large private companies, including those owned by private equity. We published plans to do just that in our proposals on restoring audit and governance.

Sovereign Defence Capability: Meggitt Takeover

Debate between Lord Callanan and Lord Browne of Ladyton

Wednesday 15th September 2021 Lords Chamber

[Lord Browne of Ladyton (Lab)]

My Lords, 85% of defence R&D is government funded. In the integrated review, the Government promised a defence and security industrial strategy that will “prioritise UK industrial capability”. Announcing it, Defence Minister Jeremy Quin said the DSIS

“will help retain onshore critical industries for our national security and our future.”—[Official Report, Commons, 23/3/21; col. 797.]

First Cobham, then Ultra Electronics and now Meggitt—these are all critical industries for our national security and our future. At what point will the Government follow their own strategy and try to slow the current US equity fund-led spree of buying these businesses?

[Lord Callanan (Con)]

The current takeover is not by an equity fund but a defence contractor. As I said, we welcome investment into the UK but will not hesitate to take action if it threatens or compromises our national security.

Net Zero Test

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 22nd July 2021 Lords Chamber

[Lord Callanan (Con)]

We have not had any discussions about implementing this proposal yet. We will respond to the Climate Change Committee’s recommendations in due course. But we are looking at the impact of climate change across all our policies. As I said, we have a couple of senior Cabinet-level committees, one chaired by the Prime Minister, which take all of these things into account.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, the Climate Change Committee sees local authorities as having a critical part to play in achieving net zero. On 16 July, the NAO revealed

“serious weaknesses in central government’s approach to working with local authorities on decarbonisation, stemming from a lack of clarity over local authorities’ overall roles, piecemeal funding, and diffuse accountabilities”.

Does the Minister agree with its assessment that there is

“great urgency to the development of a more coherent approach”

and can he explain how the MHCLG, BEIS and other departments are responding to this challenge?

[Lord Callanan (Con)]

I do not agree with the noble Lord. Of course, local authorities are critical in terms of delivering this agenda and I have many meetings with them to discuss a number of the grand schemes for which I am responsible. We have spent something like £1.2 billion in dedicated funds given to local authorities through the local authority delivery scheme and the public sector decarbonisation scheme to help them in this job.

Post Office Update

Debate between Lord Callanan and Lord Browne of Ladyton

Monday 24th May 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord refers to the ongoing Metropolitan Police investigation into two Fujitsu employees following a referral from the Director of Public Prosecutions in response to the findings of the Horizon issues judgment. I see no reason this should cause problems with Fujitsu co-operating with the inquiry, as the company—notwithstanding the announcement of the police investigation—has already fully indicated its willingness to co-operate with Sir Wyn and the inquiry. As I have said in previous answers, the matter of compensation from Fujitsu is a contractual one between the Post Office and Fujitsu.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, some of these wrongful convictions go back to 2003—a wait for some of nearly 20 years for justice. The delay can be explained in part by the Post Office cover-up and its contesting of cases for as long as possible. However, this is also an egregious, systemic failure of the criminal justice system. What is being done to stop it happening again, especially with regard to the digital evidence rule that made it easier for the Post Office to bamboozle courts, with regard to judicial capacity to test the reliability of computer evidence and with regard to the power of self-interested entities to bring private prosecutions? Where were the lawyers?

[Lord Callanan (Con)]

There were lots of lawyers involved in this case; some might think that there were too many. However, the noble Lord makes some very good points about the operation of the justice system. As I have indicated in previous answers to this House, I have received personal assurances from the Post Office that it is no longer pursuing any private prosecutions and will not do so in future. This is indeed an egregious scandal; there are many lessons to be learned from the inquiry, and we will learn them.

Biomass Electricity Subsidies: Deforestation

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 20th May 2021 Lords Chamber

[Lord Browne of Ladyton (Lab) [V]]

My Lords, the Minister has confirmed that the Government accept the principle that a scheme designed to reduce emissions needs to account fully for all emissions generated by it and must not cause environmental destruction, and therefore a loss of biodiversity. As there appears to be credible evidence to the contrary, and as he has assured your Lordships’ House that UK production of biomass meets that standard, will he publish the evidence, including the data that supports the assessment that he just made?

[Lord Callanan (Con)]

Many of these studies are published and the noble Lord, Lord Krebs, referred to a previous study that supports the assertion that forest is actually increasing in the area. But yes, the noble Lord, Lord Browne, is quite right—we need to act on the basis of proper, validated scientific evidence and our forthcoming biomass strategy will explore that further.

Post Office Court of Appeal Judgment

Debate between Lord Callanan and Lord Browne of Ladyton

Wednesday 28th April 2021 Lords Chamber

[Lord Callanan (Con)]

I totally agree with the noble Lord that, of course, words are never enough, and we are keen to see that those whose convictions were overturned are fairly compensated. I cannot make any commitments on funding at this stage; it is for the Post Office to engage with the appellants in the first instance as to how compensation can be paid as quickly as possible. The inquiry is doing its work, we will see the report in the summer when it is produced and we will learn all the appropriate lessons.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, the Metropolitan Police are conducting an ongoing investigation into Fujitsu workers after Mr Justice Fraser wrote to the DPP expressing grave concern about the evidence provided in earlier court hearings. Does what we already know about this appalling miscarriage of justice not justify a wider police investigation? Will the Government not call for one?

[Lord Callanan (Con)]

The noble Lord will notice that I have avoided commenting on any potential police investigation, for very good reasons that he will understand. However, I hope the investigation will reach speedy conclusions and the police will take the appropriate action.

Offshore Gas Rigs

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 11th March 2021 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes some very good points, and we are open to processes that can drive down emissions from offshore operations. As I know my noble friend is aware, sour gas contains significant amounts of hydrogen sulphide and would need, of course, to meet the Gas Safety (Management) Regulations before it could be used to supply industrial and domestic consumers.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, flaring produces 1% of total UK annual CO₂ emissions, and venting produces 1% of annual methane emissions. Worryingly, Oil & Gas UK reports that, in 2019, the number of oil and gas leaks in the North Sea rose to 130, including 48 significant and three major releases, one of which was 900% greater than the release that caused the Piper Alpha disaster. Why on earth do we allow flaring in such circumstances, when, for both climate change and safety reasons, a ban on flaring and venting must surely be a priority?

[Lord Callanan (Con)]

The Health and Safety Executive will continue to hold operators to account to investigate any gas leaks, given that this is, as the noble Lord says, a significant safety concern. The industry actively works to reduce any opportunity for a leak where possible, and there is an ongoing initiative between the industry and regulators to reduce the number of hydrocarbon releases in the offshore sector.

Climate Change

Debate between Lord Callanan and Lord Browne of Ladyton

Monday 14th December 2020 Lords Chamber

[Lord Browne of Ladyton]

To ask Her Majesty’s Government what assessment they have made of the work of the Committee on Climate Change.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the role of the climate change committee in providing independent expert advice to government is widely accepted as global best practice. Following the committee’s advice, in June 2019 the Government set a target to achieve net zero by 2050. We are very grateful for the committee’s recently published advice on the sixth carbon budget, which we will of course consider carefully ahead of setting it in legislation next year, as required by the Climate Change Act.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, the Prime Minister’s commitment to reduce carbon emissions from 57% of 1990 levels to 32% by 2030 is the same as the target set out in the committee’s Sixth Carbon Budget report. To deliver it requires a centrally led, comprehensive strategy and timetable for the current Parliament—preferably one that accepts that it can be delivered in 10 years only with decarbonisation technologies already at maturity. Do the Government have such a strategy? Will it be published? And will the Government find time to debate the reports of the Committee on Climate Change?

[Lord Callanan (Con)]

Whether time will be allowed is of course not a matter for me, but I will pass that on to the Chief Whip. Strategies, or elements of them, are being published today in the energy White Paper. A hydrogen strategy and a heat and building decarbonisation strategy are to come, so we are conscious of our responsibilities in this regard.

Fossil Fuels: Business

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 19th November 2020 Lords Chamber

[Lord Callanan (Con)]

As the noble Lord referenced in his question, we are mandating climate information in financial disclosures. We welcome other commitments from the many banks and financial institutions that are already joining us on the path to net zero.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, as the right reverend Prelate and other noble Lords have pointed out, this report shows that most energy companies are not on track. This means that, to an extent, we will be dependent on fossil fuels for energy beyond 2050. Robust plans for that are essential. What is the Government’s best estimate of the scale of the emissions challenge that this continuing dependency will create? As we heard, yesterday the Prime Minister unveiled a strategy to establish four carbon capture and storage clusters. If they operate at maximum capacity, will they meet a significant proportion of that challenge?

[Lord Callanan (Con)]

They will contribute to that challenge, but we need a number of different technologies and methods to meet our legally binding commitment to net zero. The noble Lord is right in that respect, and the 10-point plan is a useful contribution towards that objective.

Covid-19: Small Businesses

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 29th October 2020 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness is a powerful advocate for the life sciences sector, so of course we will look at many of the suggestions that she has put forward.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, since lockdown I have raised with Ministers the issue of the market failure of pandemic risk insurance five times. Each time I have been told that in due course the Government strategy on it will be revealed. For many businesses, the unavailability of business interruption insurance for pandemic risk is an issue for now, and it soon could be decisive in whether a large number of businesses will be able to trade. This is an issue of transparency and accountability. What, precisely, is the Government’s plan for this market failure?

[Lord Callanan (Con)]

The noble Lord highlights an important problem. This is a difficult issue, but insurance contracts are a matter of commercial negotiations in the market, and it is hard for the Government to interfere in what is, essentially, a commercial decision between the person issuing the insurance and the person taking it out. But we are certainly aware of the problem, and we are looking to see whether there is anything we can do in this field.

Maritime Industry

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 17th September 2020 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes a valid point about the difficulties of decarbonising the maritime sector, and this is one reason why we are looking at alternative methods of propulsion. However, he is right to highlight the challenges.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, the Minister will be familiar with the Accelerating the Low Carbon Transition report, published by Brookings in conjunction with the Energy Transitions Commission. It is a mine of useful information and includes this fact:

“The top 20 ports, located in just 12 countries and jurisdictions, control 45% of global container freight.”


In preparation for COP 26, what steps are the Government taking to bring these countries and jurisdictions together to discuss a common regulatory approach to shipping emissions?

[Lord Callanan (Con)]

The noble Lord makes an important point. We are working with a number of other countries through the International Maritime Organization, and we accept that the maritime sector has an R&D gap, with little investment in alternative fuels to date, which is holding back decarbonisation. Therefore, there is no question that the sector presents a great challenge for the net-zero efforts.

Post Office: Horizon Accounting System

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 18th June 2020 Lords Chamber

[Lord Callanan]

Of course, the Horizon court case occupied a lot of time and effort in both government and the Post Office, and it provided an extensive and, indeed, damning indictment of what went on at the time. However, we think that there is more to be done and that an independent review is the best way of proceeding with that.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, will this review be able to be held up pending the determination of the criminal investigations that are ongoing, as well as perhaps criminal appeals? The priority should be that those damaged by the scandal are exonerated and compensated. The Government are the owner of the Post Office. Will they exercise their muscle to ensure full compensation? Indeed, Parliament, in a two-clause Bill, could legislate for exoneration of all those convicted. Surely the Government do not want to prolong the agony. What more evidence is needed before these steps can be taken to achieve the inevitable?

[Lord Callanan]

It is extremely important that we do not interfere with the proper consideration of these cases through the Criminal Cases Review Commission. I obviously cannot pre-empt what might happen, but I think that noble Lords will realise what I hope will happen as a result of this process. It is also important to get on with the review and to make sure that we learn the lessons from what went wrong. We also need to make sure that these things never ever happen again, because this is a terrible, terrible scandal.

Horizon: Sub-postmaster Convictions

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 11th June 2020 Lords Chamber

[Lord Callanan]

First, I pay tribute to the work my noble friend has done, both in the other place and in this House, to draw attention to this unfolding scandal. The issue of privileged access was discussed throughout the Horizon case and highlighted in the Horizon issues judgment. The Ernst & Young management letter he refers to was issued before Post Office Ltd was separated from Royal Mail Group. At the time, there was no government representative on the board. The first government representative was appointed to the board of the Post Office in 2012. The Government were aware from the information they received, such as that by the forensic accountants, Second Sight, in 2013, that branch records could be accessed remotely; however, we were then advised that any transactions entered remotely would be visible to sub-postmasters in branch. As far as I am aware, the Government were only made aware that this was incorrect early in 2019, via witness statements that were used by Fujitsu in the court case.

[Lord Browne of Ladyton (Lab) [V]]

My Lords, it is a privilege to follow the noble Lord, Lord Arbuthnot, on this issue, for all the reasons that have been mentioned. He deserves significant recognition for his effective leadership on this issue. While I support the call for an inquiry, already every parliamentarian, including every Minister, believes that those damaged by this scandal deserve to be exonerated and properly compensated, so how much additional evidence do the Government need before that can be achieved? For more than a decade, while covering up the truth, the Post Office spent in excess of £100 million maintaining the convictions and the impoverishment of hundreds of innocent sub-postmasters. Not one director or senior executive has been held to account. What do the Government, who own the Post Office, plan to do about this shocking failure of corporate governance?

[Lord Callanan]

The Horizon IT system was put in place in 1999, with the first issues being raised by sub-postmasters in the early 2000s. Mr Justice Fraser has considered what happened over this period and has set out his findings in considerable detail in the court case. Of course, the senior directors responsible at the time of the prosecutions against sub-postmasters are no longer at the Post Office. Any further proceedings against such individuals is a matter for the Crown Prosecution Service, and the courts and the justice system.

Green Economy

Debate between Lord Callanan and Lord Browne of Ladyton

Thursday 12th March 2020 Lords Chamber

[Lord Callanan]

It is fine: it is my fault for raising it. I should not have got involved in the debate, but I am happy to talk to the noble Baroness, for whom I have the greatest admiration, as she knows. I am sure that we will discuss it on plenty of other occasions.

The noble Lord, Lord Giddens, talked about the 2050 target and asked why Finland has a net-zero target of 2035 when ours is 2050. Our independent advisers, the Committee on Climate Change, made it clear in its report that it does not currently consider that it is credible for the UK to reach net-zero emissions earlier than 2050, and we have legislated in line with that advice.

The noble Baroness, Lady Suttie, asked about plastic waste exports. We are committed to banning plastic waste exports to non-OECD countries and the Environment Bill includes a power to enable us to deliver this commitment. We will consult this year on the date by which this will achieved.

The noble Baroness, Lady Jones, raised the energy company obligation—we have discussed this subject with her before. I know that we have a different opinion on it, but we believe that energy efficiency will be key to reach net zero and we agree that the transition has to be fair. The energy company obligation is a key policy that, since 2013, has delivered more than 2.5 million measures in more than 2 million homes. This scheme is now entirely focused on low-income, vulnerable and fuel-poor households and funded to the tune of something like £640 million a year until 2022. I know that we have a different view about how it should be funded, but it is, in my view, a successful scheme.

The noble Lord, Lord Marland, talked about international climate finance. Since 2011, our international climate finance has helped 57 million people to cope with the effects of climate change, while reducing or avoiding 16 million tonnes of emissions.

I am sorry that I am out of time; I had a number of other points to refer to. If noble Lords will permit me, I will respond to them in writing—apart from an intervention from the noble Lord, Lord Browne.

[Lord Browne of Ladyton]

I am very grateful to the noble Lord for giving way. Before he sits down, will he either address the question of pricing the risk of carbon capture and storage or agree to write to me about it?

[Lord Callanan]

It is an important subject, as I have said, and there is a lot of development in this area. I will write to the noble Lord with the details of pricing the risk, because it is a complicated subject.

It just remains for me to say that tackling climate change continues to be one of the Government’s highest priorities. We will continue to work with others, both domestically and internationally, to build on the excellent progress that we have already made to reach net zero. I thank noble Lords once again for some excellent contributions to this debate.