Advanced Research and Invention Agency Bill

Lord Morse Excerpts

Report stage
Tuesday 14th December 2021 Lords Chamber

[Lord Morse (CB)]

I too will speak to support the amendment advanced by the noble Lord, Lord Browne, who has explained it very clearly. It is worth getting back to basics on it—if I may use that expression—for a second. The ARIA scheme is about driving our national research frontiers forward by publicly funded risk taking, if I can summarise it as simply as that. It is a good idea that is widely supported.

But this is the reverse of what will happen if foreign-owned companies are allowed to acquire companies that own intellectual property derived from ARIA or to take that intellectual property offshore. If this happens, the reverse of the objective of the scheme will be achieved. This possibility is not far-fetched. I spent 10 years as Comptroller and Auditor-General at the National Audit Office, and, during that time, I saw cases relating to a series of companies where exchange of control provisions in the hands of government were not exercised properly or the scheme was administered rather feebly. As a result, these things became faits accomplis and the property went offshore. Sometimes, you would be told, “Well, we believe in the market operations, so we really don’t like to interfere with this sort of thing”.

Actually, we need strong, clear decision-making about this now. We need to make it clear in this amendment that we are not prepared to see intellectual property that has been paid for by British taxpayers go offshore. It makes mugs of British taxpayers.

[Baroness Neville-Rolfe (Con)]

My Lords, I rise to cast some doubt on Amendment 1. It is very well intentioned, but I fear that it may be mistaken. The background to my concern is my regret that ARIA is modest: some £200 million a year is being provided, which is a pinprick compared with the vast sums spent on other things, such as Covid and bailing out the banks.

The Bill is meant to set up an agency that can take risks free from bureaucracy and the day-to-day constraint of politics—a latter-day Manhattan Project, if you like. Bureaucratic and other constraints are being applied to the R&D budgets of many billions in the hands of UKRI. That is fine, but I do not think that they have a place in ARIA, which should be run leanly and efficiently and not encumbered by expensive experts—on IP, for example—and large legal departments. It should be able to think and act outside the box.

So I object to the provision in paragraph (bb)(ii) in Amendment 1, and I am slightly surprised that the noble Lord, Lord Clement-Jones, has signed the amendment, because we generally agree on these IP issues. However, I agree with my noble friend Lord Lansley that we need to know whether ARIA can keep the income that it receives from IP and rights. To answer his question, I see IP and rights as being in the same box—but no doubt the Minister will clarify that when he speaks.

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[Lord Morse (CB)]

My Lords, I just repeat a remark I made in Grand Committee in response to the noble Baroness’s speech: I think that she is expressing best practice, certainly as I understand it, on how boards should function. I reconfirm the supportive comment that I made before.

Amendment 17 stands in my name. I thank the noble Baroness, Lady Chapman of Darlington, and the noble Lord, Lord Browne of Ladyton, for their support. My amendment is intended to address potential abuse; I just put that clearly in people’s minds to start with. It sets out to do so in this way: it specifies that those who have been employed in a department that is either supervising or sponsoring ARIA and have been directly involved as part of the team doing so should not be employed by an entity that has benefited from ARIA funding within five years of leaving the department. It also, in proposed new paragraph 8A(2), applies the same five-year exclusion to persons who have been employed in ARIA itself and who might seek employment in an entity that has benefited from ARIA. Finally, in proposed new paragraph 8A(3), it provides that a person falling under either of the two new paragraphs I mentioned shall not acquire a proprietary interest, either directly or indirectly, in intellectual property or bodies owning intellectual property that have benefited from ARIA for a period of five years.