National Security Bill

Lord Hope of Craighead Excerpts

Committee stage
Monday 16th January 2023 Lords Chamber

So this amendment is modest. If we cannot establish the same basic standards for the legal sector as we have for every other sector, we are not being serious about tackling malign foreign states and the use of our valued legal system. At the end of the day, of course, what I would much prefer to see, as so many noble Lords have asked for today, is the withdrawal of this scheme, and its reconsideration.

[Lord Hope of Craighead (CB)]

My Lords, perhaps I could just add a footnote to what the noble Lord, Lord Clement-Jones, said—not along the lines that this paragraph of the schedule should be withdrawn but to draw attention to what I think is a defect in it, which illustrates the point that some of the details of this scheme have not been thoroughly thought through.

The point I want to make arises under paragraph (5)(4)(d), which exempts, as part of an example of “legal activity”,

“acting as an arbitrator or mediator.”

The exemption applies only if the person acting as an arbitrator or a mediator is a lawyer within the definition provided in paragraph (5)(3). Many people who act as arbitrators in technical cases are engineers or architects—people who are not qualified as lawyers but provide a valuable service in the whole scheme of arbitration on technical issues. It is quite common to find a panel of three arbitrators where one is them, perhaps, is a lawyer and the others are people with particular skills. I do not understand why, if there is going to be an exemption in relation to acting as an arbitrator or mediator, it should not cover anybody acting as an arbitrator or mediator, whatever his or her qualification might be.

Perhaps the Minister could explain at some point why it is only in the case of lawyers that arbitrators or mediators are to be exempted from the requirement to register. It would be interesting to know the reason because, otherwise, we will inhibit commercial activities and that would seem to be undesirable. I throw this out just as an example of what was referred to by some commentators as a rather slapdash approach to drafting. This issue needs to be looked at so that we can understand exactly what the purpose of this exemption is.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, as we are in Committee, I think one can intervene a second time. I just want to ask the Minister about one of the questions I put about political parties; I think it also arises now, from what the noble Lord, Lord Carlile, said. It concerns the confidentiality of all these masses of reports. What privacy protections will be there if this measure goes ahead?

--- Later in debate ---

[Lord Sharpe of Epsom (Con)]

In that case, I am very sorry to disappoint the noble Lord. I apologise for having spoken at such length.

[Lord Hope of Craighead (CB)]

I am not sure whether the Minister has picked up my point about arbitration. I am very sorry that I did not put down an amendment to direct attention to this, but it is quite an important point because London is a preferred seat for arbitration and many cases involving foreign powers and foreign-controlled activities. I have done a handful of arbitrations, but each one of them is within that category.

One of the features of an arbitration is the confidentiality of the process and the fact that the process exists at all. There are some cases where parties do not want it to be publicised that they are engaging in this process, because it would raise all sorts of questions, particularly at the home state of the foreign activity, the foreign-controlled entity or the foreign power itself. It is rather important to be sure that the ground is properly covered.

As an arbitrator myself, and a lawyer-arbitrator, I favour the exemption provided by paragraph 5, but I do not think it goes wide enough. That is my point: it would seem very strange if I, as a lawyer for a team of three arbitrators, did not have to register, but if the noble Lord, Lord Patel, was with me as an expert in his field, he would have to do so, and an engineer or an architect would have to do so as well. That really destroys the exemption. It is a serious point to look at, though I quite agree that it is a point of detail. I apologise for not having drawn attention to it specifically before.

[Lord Sharpe of Epsom (Con)]

I was about to attempt to address the question from the noble and learned Lord, Lord Hope, but unfortunately he is not going to like the answer, which is that I do not know. I will have to look into this and come back to him.

I appreciate the concerns that have been expressed by all noble Lords, and I thank all those who participated in what was clearly a very healthy and important debate. We will reflect carefully on the comments raised prior to Report. For the moment, and to that end, I ask noble Lords not to press their amendments.