National Security and Investment Bill

Debate between Nadhim Zahawi and Tom Tugendhat

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Wednesday 20th January 2021 Commons Chamber

[Nadhim Zahawi]

My hon. Friend makes an important point. As I mentioned, the statement that the Secretary of State has laid with the Bill takes in much of the direction of travel of this amendment from the Foreign Affairs Committee.

I acknowledge that the Foreign Affairs Committee is pushing for more detail rather than less, but I would reassure them that the Government agree with their main conclusion that the Secretary of State should provide as much detail as possible on the factors that will be taken into account when considering national security. Importantly, however, that is only up until the point that the detail risks the protection of national security itself. That is why the Government have taken this approach in the draft statement provided for by clause 3. In that statement, we identify three types of risk that are proposed to form the basis of the call-in national security assessment. These are: the target risk, which considers the nature of the acquisition and where it lies in the economy; the trigger event risk, which considers the level of control and how it might be used; and the acquirer risk, which covers the extent to which the acquirer raises national security concerns.

I would like to address each of the arguments made in the report, so that I can ease the concerns of hon. Members across the House. First, there are concerns that without a narrow definition of national security, the investment screening unit would be inundated by notifications, hampering its ability to deliver its crucial role. I acknowledge that, for business confidence in the regime, it is essential that we deliver on our statutory timeframes for decisions, which is why it is so essential that we do not allow any broadening of the assessment done by officials as part of the regime to occur, whether by inexhaustive lists, as my hon. Friend the Member for Isle of Wight has just said, or by any other form. To include modern slavery, genocide and tax evasion as factors that the Secretary of State must take into account as part of national security assessments, as these amendments propose, would not reduce the demands on the investment security unit but potentially increase them.

Secondly, there is concern that ambiguity could hinder the success of the regime. Let me be clear that this regime is about protecting national security—nothing more, nothing less—hence its real focus. Thirdly, the Foreign Affairs Committee report suggests that the staff responsible for screening transactions may lack sufficient clarity on what kinds of transactions represent legitimate national security risks, leading to important transactions being missed or to a large volume of benign transactions overwhelming the investment security unit. I want to assure hon. Members, and my hon. Friend the Chairman of the Foreign Affairs Committee, that the investment security unit will be staffed by the brightest and best, with many of them being recruited on the basis that they have essentially written the book on national security.

[Tom Tugendhat]

I am grateful to my hon. Friend for highlighting this point. May I assure him that I have absolute confidence that the people he will recruit into the unit will be the best and brightest? I pay huge tribute and send many congratulations to the Secretary of State for Business, Energy and Industrial Strategy, who is sitting next to him. He is a friend of long standing, and I am delighted to see him serving Cabinet; that is well earned and somewhat overdue. I am sure that they are both going to have the best judgment possible. However—I am afraid there is a “however”—there are other people who are going to have to decide whether or not to file, and there is therefore a danger that people will over-file, even though the judgments will have been very cautiously made.

[Nadhim Zahawi]

That is something I have been watching carefully as we introduced this legislation, obviously. We have had around 36 inquiries to the team already, so it feels to me that where we have landed is proportionate and right.

Middle East

Debate between Nadhim Zahawi and Tom Tugendhat

Monday 30th November 2015 Commons Chamber

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

I commend my hon. Friend the Member for Bracknell (Dr Lee) for bringing this important debate to the Chamber. I also commend the Under-Secretary of State for Foreign and Commonwealth Affairs, my hon. Friend the Member for Bournemouth East (Mr Ellwood). I have just returned from a trip to Iraq and Turkey as part of my work on the Foreign Affairs Committee and the teams in both places told me how engaged he was. I believe that he will be making his fourth visit to Iraq very soon. I want to put it on the record that our ambassadors in those places are doing a tremendous job. I hope to describe in detail some of the solutions in Iraq and Syria. I, too, highlight to the House my declarations in the Register of Members’ Financial Interests.

Britain has been deeply involved in the middle east for centuries. The region has occupied our diplomatic and cultural attention for decades. Those close links are the reason I stand here today. Britain was the haven of choice for my family when we fled Saddam in the 1970s.

Today, ISIL captures the news headlines, our nightmares and our imaginations, but it is just a symptom—a potentially fatal symptom—of a deep rift at the heart of the Muslim world. The rift has several parts at different layers and they all matter. For decades, a stricter, puritanical interpretation of Sunni Islam has proliferated across the region. Traditional and more enlightened forms have been rejected, leading to more aggression and intolerance. It has led to the spread of extremism when that interpretation has mixed with other social problems, such as unemployment, corruption and poverty, which are all too common in these countries.

The regional powers of Saudi Arabia and Iran are at a stand-off and undermine each other at every turn, their relationship poisoned by suspicion and fear. They risk tearing apart their neighbours by proxy. Syria and Iraq are vulnerable to that because of their origins as Ottoman provinces fitted together into new kingdoms by the victorious empires of the first world war.

[Tom Tugendhat]

Does my hon. Friend recognise that this is not the first time in the history of the middle east that countries have fought the genuine curse of Muhammad ibn Abd al-Wahhab’s interpretation of Islam, and that when the Ismaili dynasty of Egypt launched one of its great attacks on the Nejd province of Saudi Arabia in the 1800s, it was very much part of that evolution?

[Nadhim Zahawi]

My hon. Friend is absolutely right. He is a great scholar and I look forward to his contribution to this debate and, I hope, to the debate on Wednesday.

In Iraq, a Sunni king who was installed to allow the British to dominate was replaced by a Sunni dictator. In Syria, a Shi’a ruling class was created to enable the French to rule. In both instances, it resulted in bitter divisions, as political oppression added to sectarian divide. That settlement, which was maintained only by fear and force, has completely collapsed in the wars.

As we have watched Syria torn apart by the civil war and Iraq stuck in political deadlock and threatened by ISIL’s invasion, it has become clear to us that a new settlement is needed. The one that the US began in 2003 is completely gone. The Iraqi Government that the coalition set up and the army it trained are hollowed out and militias provide much of the manpower against ISIL. Iran dominates politics in Iraq today. I commend the Foreign Secretary for the work that he has done to bring Iran in from the cold.

As we fight to end the war and restore peace, we must recognise that real peace—a peace that lasts and allows people to feel safe and get on with their lives—can only come from self-government, federalism and political reform. That is the aim and it is a noble one, but challenges stand in the way. Syrians and Iraqis may want strong representative Governments, but that may not be what Iran or Saudi Arabia want. That is not what all Shi’a, or indeed all Sunni, in Iraq want, and it is not what Assad and the Shi’a minority in Syria may want. Why? Because all they have ever known is rule by the strongest. Those who are not on top are under the thumb of whoever is on top. People see a protracted fight as preferable to letting down their guard in a compromise that they might not survive. That lesson has been scarred into the region by systematic killing right from the death throes of the Ottoman empire to the murderous regimes of Saddam Hussein and Hafiz and Bashar al-Assad. However, we are not passive on this matter, and it was made clear to me in Iraq last week that we can influence Baghdad—indeed, those who agree with us are crying out for more influence in Baghdad.