National Security and Investment Bill

Debate between Sarah Olney and Darren Jones

Consideration of Lords amendments
Monday 26th April 2021 Commons Chamber

[Sarah Olney (Richmond Park) (LD) [V]]

In common with other hon. Members who have spoken tonight and on other occasions, the Liberal Democrats support the broad principles of the Bill. It is sensible, at a time of geopolitical uncertainty and increasingly globalised trade, to have provisions for the Secretary of State to intervene in business transactions where those transactions may have a bearing on national security. It is important, however, that the parameters of such a Bill are carefully drawn to ensure both that the transactions that may pose a threat can be caught, and that undue constraint is not placed on transactions that ought to be able to proceed freely.

The concerns raised about the Bill have focused on the fact that many of the definitions in it can be drawn too widely, and that the powers of the Secretary of State to call in transactions can be triggered too easily. That creates an environment of uncertainty for investors, as a wide variety of activities come into the scope of the Secretary of State’s powers. That will potentially act as a brake on investment, and at a crucial moment, when we are looking to strike new deals with global partners to replace the trade we are losing as a result of leaving the European Union.

I therefore welcome Lords amendments 11 and 15, which would require the Secretary of State to provide an explanation for choosing to exercise the powers granted to them. That seems to be a rational compromise. Instead of attempting to frame more precisely definitions and powers that will quickly become outdated as technology and trading practices progress, we would maintain the wider definitions but explain how and why they were being exercised.

That would provide a framework of precedent that investors could refer to when assessing investment risk. It would provide a much greater degree of transparency and accountability to the Secretary of State’s decision making. We have all seen the value of greater transparency over the last few weeks. Adopting these amendments would show that the Government were attempting, in good faith, to regain public trust after that trust has been shaken by recent revelations.

There is a distinct danger that the Bill, without amendment, will leave the Secretary of State vulnerable to pressure from those whose interests go beyond national security. We have seen this Government act to help developers avoid taxes, bankers win access to Government schemes, and shell companies win multimillion-pound personal protective equipment contracts. There is a very real danger that the UK’s reputation as a safe and orderly place to do business may be undermined, and these amendments offer the Government an excellent opportunity to restore our reputation once more. I very much hope that the Minister will take it.

The Bill is valuable and necessary, but it is only part of what is required to boost the UK’s attractiveness as a global trading partner. The scrapping of the industrial strategy in the last month and the continuing failure to construct a workable plan for achieving net zero are holding the UK back from being able to achieve all that it is capable of achieving as we emerge from the difficulties of coronavirus.

[Darren Jones (Bristol North West) (Lab) [V]]

I will focus my remarks on Lords amendments 11 to 15 to clause 61, which, as we have heard, have arrived from the other place on the basis that the BEIS Committee, which I chair, does not have the access to the intelligence information that it would need in order to adequately scrutinise the Investment Security Unit in the BEIS Department. Let me start by thanking their lordships for their highly informed debate on this issue and their hard work in drafting these amendments.

It is a matter of fact that the Intelligence and Security Committee has a level of security clearance and powers to demand classified information that no other Committee of this House has, including my own. I was therefore surprised to learn that the Government were not going to update the memorandum of understanding with the ISC to extend its remit specifically to include the Investment Security Unit. That is why their lordships have sent us these amendments, which I have no issue with. On that basis, I commend the Chair of the ISC for his eloquent speech this evening. However, the Government have made it clear to my Committee and to the House that they have no intention of supporting the amendments, and nor will they be extending the memorandum of understanding in respect of the ISC.

The Secretary of State did agree with me in Committee that the Bill extends the powers of the Government to intervene in the market and that adequate scrutiny of that function is therefore important. On that basis, my Committee has received a letter from the Secretary of State, which we will formally report to the House tomorrow morning, setting out three key points. First, my Committee will be guaranteed appropriate levels of information and briefing to understand why Ministers have acted in the way they have—this is noting the points made by the ISC Chair this evening. On that basis, my Committee and the Department will enter into a new MOU to reflect this. Secondly, the Secretary of State will brief me, as Chair of the Committee, on Privy Counsellor terms, as required. Thirdly, the Science and Technology Committee, which also has standing in this area, will be recognised as sharing the scrutiny responsibility, alongside the BEIS Committee, in addition to the work of the ISC. I welcome the comments made by the Chair of the Science and Technology Committee in this evening’s debate.

My Committee has discussed this issue and wants to ensure effective scrutiny of the wide-ranging and important powers in the Bill. Given that the Government are unwilling to support their lordships’ amendments this evening, and therefore having the main scrutiny responsibility resting with the BEIS Committee, the agreement to enter into a new MOU with my Committee, and to ensure the Chair’s briefing on Privy Counsellor terms, is the next best available option. The BEIS Committee will continue to serve the House in holding the Department to account, and we will of course make it known if we are unable to do that effectively. I therefore look forward to hearing the Minister, when he sums up the debate on the Floor of the House this evening, reconfirming the commitments made by the Secretary of State and promptly agreeing the MOU in due course.

Business, Energy and Industrial Strategy Committee

Debate between Sarah Olney and Darren Jones

Thursday 10th September 2020 Commons Chamber

[Darren Jones]

I note my hon. Friend’s long-held action in this area, both before and during his time in Parliament. I congratulate him on his all-party parliamentary group, which is making an important contribution to the debate here in Westminster. This is the first time that we have had a UK-wide citizens assembly and it was on the really complicated topic of climate change, but that has shown that it works. A citizens assembly brings people together in a consensus-building fashion to understand the trade-offs and to come forward with proposals that people are happy with. I endorse my hon. Friend’s suggestion that we look at these models—perhaps not just in Westminster, but in local government. In my city of Bristol, we are hoping to reinstate such activity after the pandemic as a way to bring people with us and to ensure that we really understand the ambitions of the British people. This report is an example of where the British ambition is for very strong action, and that should give the Government confidence in acting.

[Sarah Olney (Richmond Park) (LD)]

I note the importance placed in the report on cross-party working to ensure that these actions are supported in the long term, so let me take this opportunity, on behalf of the Liberal Democrats, to pledge our support in delivering the recommendations of the report, all of which we completely endorse. Does the hon. Member agree that the biggest impact on achieving net zero will be made by the actions that are taken soonest, and would he tell me what he thinks is the most important action that the Government need to take now to help us to achieve this goal?

[Darren Jones]

I thank the hon. Lady for her kind words and her pledge of support on behalf of the Liberal Democrats for the call for cross-party consensus on tackling climate change, which the Labour party also supports. On her question about the most immediate action, this autumn and winter is the most important period of time in dealing with this issue; not only do we have to borrow and spend significant amounts of money due to the economic consequences of the pandemic, but we are also waiting for key policies from the Government—from the energy White Paper to the net zero review, through to the Treasury review on green finance, the heating in buildings regulations and so many other things that are all due to come together in the next few months. Now is the opportunity for the Government to bring all that together and to set out a progressive set of policies to meet the scale of the challenge, which I am sure will be in line with the principles of the climate assembly report.