National Security and Investment Bill

Simon Baynes Excerpts

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

[Simon Baynes (Clwyd South) (Con) [V]]

Having had the privilege of serving on the Bill Committee, and therefore having analysed it in detail, I believe the Bill ensures that the Government have the necessary powers to scrutinise and intervene in business transactions, such as takeovers, to protect national security. I, too, welcome the Secretary of State to his new role, and congratulate the Ministers, their team, the parliamentary Committees and everyone else involved in preparing this legislation with such care and inclusivity in respect of views and opinions. I respect the Opposition’s constructive approach in Committee and in today’s debate.

Having worked in the financial sector for 25 years before becoming an MP, I believe the Bill provides investors and businesses with the certainty and transparency they need to do business in the UK. As the Conservative small business ambassador for Wales, who strongly believes in the importance of free trade and foreign direct investment for businesses in my constituency, Clwyd South, and in the rest of Wales and the UK, I consider that the Bill strikes the right balance between protecting national security and preserving the position of the UK as an open and liberal international trading partner. Indeed, I would go further and say that the Bill’s provisions strengthen the UK’s position as an attractive place to invest. We are not alone in making such reforms; many of our allies have modernised their investment-screening regimes in recent years, which will mean that investors will be familiar with the approach in the Bill.

In my previous career in finance, I saw at first hand the crucial importance and attraction to overseas investors and companies of the UK’s established legal system, highly competitive tax regime and stable regulatory framework. The Bill reinforces these invaluable assets for the UK by updating our regulatory approach. Having heard many submissions by expert witnesses in the Bill Committee stage, I am convinced that the Bill will also make interaction with Government much simpler and more transparent for businesses and investors, enabling legitimate investments to be screened much more quickly than they are under the current regime.

The Bill is not a signal that the Government have reduced their appetite for foreign investment, but is a proportionate response to the small number of transactions that raise national security threats. One of the most striking parts of the Bill Committee was hearing the severe warnings from experts such as Sir Richard Dearlove about the minority of individuals and regimes that seek to use foreign investment to undermine our national security. The Bill will ensure that that does not happen.

UK citizens’ safety and our economy rely on the Government’s protecting security, and it is only right that with new threats, new powers are put into place to achieve that. If the Government took no further action, unchecked hostile behaviour could leave the UK vulnerable to disruption, unfair leverage and espionage. We cannot let that happen, so I am pleased to support wholeheartedly the Third Reading of the Bill, which brings a much-needed update to the Government’s investment-screening powers, most of which date from 2002 and are not suited to the new world and the modern threats that we face. The Bill is proportionate and measured and will provide much needed long-term security for the UK as one of the most attractive and dynamic countries in which to invest in the world.