Advanced Research and Invention Agency Bill (Fourth sitting)
Stephen Flynn Excerpts(3 years ago)
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Daniel Zeichner
That is absolutely right. One of the many tragedies of the last 10 or 15 years has been the fact that strong attempts by the last Labour Government to have a positive regional policy were swept away. Vince Cable, I think, described the destruction of the regional structures in 2010 as positively Maoist. Astonishingly, Lord Heseltine later came to Cambridge to bang the drum for regionalism outside the very offices that had been shut by his own Government a few months earlier.
We do not have a good record on regional policy in this country. We need to do better in future, for everybody’s benefit. Frankly, my city can do without the overheated house prices and the problems that come with everything being clustered in one place. It would be good for us, but also for everybody else, to get more balanced economic growth across the country.
We could do one small thing today—and I really do not see how it would be difficult for the Government to concede. I do not know how many Bill Committees I have been on—I have never yet had any success, although I live in hope. I make this plea, however, because I really do not see how the concession could be that painful.
Stephen Flynn (Aberdeen South) (SNP)
I rise, obviously, to speak in favour of SNP amendment 30, which almost ties in with what is proposed by the shadow Minister. It is about providing greater transparency on the destination of ARIA’s funding disbursements within the UK.
I just want to pick up on a couple of things that have been said already. The shadow Minister reflected on the fact that the Bill makes no mention of the devolved nations. She almost seemed surprised, but that took me a bit aback because I am not surprised at that in any way, shape or form. I do not think anyone even on the Government Benches is over-surprised that they forgot to mention Scotland, Wales and Northern Ireland.
The hon. Member for South Basildon and East Thurrock mentioned his concerns about drawing conclusions. Yeah, I will be drawing conclusions about where that money goes and I am sure that every single person in Scotland will.
Stephen Metcalfe
If we were discussing how the Government aim to spend our £22 billion a year on science and research, there would be a much better argument for the amendment. But we are talking about high-risk, high-reward science, where a focus on a particular technology has the transformational effect that we are after. That might be the University of Strathclyde and its quantum technology research—I have no objection to that being the area of funding. But if the area happens to be Cornwall, Cambridge, London or somewhere else, I do not think we should hamper ourselves on this particular aspect of a new agency by trying to set targets. We know that if we set a target, someone tries to meet it.
Stephen Flynn
I understand the point that the hon. Gentleman is making, although I would caution that, when speaking to an MP from Aberdeen, people do not tend to mention a Glasgow university—it doesn’t go down too well, that’s for sure.
I understand the purpose of the hon. Gentleman’s point, but he must understand our concerns about making sure that Scotland receives its fair share of funding and investment from the UK Government while we remain a part of the United Kingdom. That ties into the wider narrative from this UK Government since the 2019 election. The views and will of the people of Scotland have been completely disregarded.
What we are seeing from the UK Government are attempts to impose their will on Scotland. We saw that with clause 46 of the Internal Market Bill and with the levelling-up fund that bypasses devolution but does not deliver for the communities in Scotland that it is needed for. This fits into our wider concern about the direction of funding from the UK Government.
As I said earlier, £800 million is involved. While Scotland is still a part of the UK we will take an interest and argue Scotland’s case for getting that funding into Scotland. It should, of course, be at the Barnett level. I would welcome assurances from the Minister that we will see investment in Scotland—not necessarily in Glasgow or at the University of Strathclyde, but perhaps in Aberdeen: that would be much more beneficial. I hope that we will see that level of investment in Scotland and I hope that she will provide that commitment, in which case I will be able to withdraw my amendment.
Kirsty Blackman
Does my colleague agree that what we saw happening in relation to Northern Ireland—the money funnelled there and the fact that we did not get our Barnett amount of that cash—increases our worry about the fact that we might not see the Barnett amount for ARIA either?
Stephen Flynn
Absolutely; my colleague is spot on. As I said, this is not new, and the example she has provided is another clear indication of this UK Government’s failure to take cognisance of Scotland’s needs. If the Minister wishes to stand up and tell me that Scotland will get its fair share and we will get a Barnett sum spent in Scotland, I will be more than happy to withdraw my amendment; otherwise, I will push it to a vote to ensure that Scotland’s needs are met.
Amanda Solloway
I shall turn first to amendments 14 and 30. The objective behind them is really important; we have spoken extensively about the need for ARIA’s funding to reach beyond the usual suspects. In my view, that applies to where that funding goes as much as to the formality of the research setting. That also reflects the wider Government priority. The R&D places strategy, due to be published this summer, represents a key part of our ambitions for R&D and innovation. It builds on the approach set out in the R&D roadmap.
The purpose of the places strategy is to ensure that R&D benefits the economy and society in the nations, regions and local areas across the United Kingdom, contributing to the Government’s wider levelling-up ambitions. I would like to make one key point about ARIA: as discussed previously, many of the details of ARIA’s operation will be set out more fully in a future framework document. I suggest that that document is the appropriate place for stipulations on the content of ARIA’s annual report.
It is extremely likely that ARIA will be required to provide in that report the type of geographical information sought in the amendments, but it would be beneficial to consider that in the round, alongside the other information that we might require ARIA to include in the report. The most appropriate and helpful information for ARIA, or Government bodies generally, to provide may also change in the future. To include specifics on the face of the Bill is impractical in that respect, as that would be inflexible.
On amendments 16, 17 and 18, ARIA will seek transformative scientific and technological breakthroughs, the outputs of which will have benefits across the United Kingdom. For example, a leap forward to driverless technology could create economic benefit to improve the quality of life across the UK. The attraction of the ARPA model is that its funding is laser-focused on achieving transformative outcomes. While £800 million up to 2024-25 is a meaningful amount of funding, it is a small proportion of the R&D spend. For those reasons, I urge the hon. Member for Newcastle upon Tyne Central to withdraw her amendment.
Daniel Zeichner
And I am eternally grateful, because that is where I found it. I must say that I was still surprised, because it looks to me more like something that came out of “Star Trek” many years ago.
Stephen Flynn
It is a pleasure to follow the hon. Member for Cambridge. I am not quite sure whether lagging roofs is necessarily within the remit of what I would expect ARIA to be doing. I like to think that the Government could do that notwithstanding any new technologies, but I appreciate the point he was making. I assure members of the Committee that there will be no “Star Trek” references coming from my mouth whatsoever—[Interruption.] Or “Star Wars”. We have had quite enough of that. I rise to speak in support of amendment 35, tabled by the SNP, which again is directly related to climate change and the drive towards net zero.
If ARIA is to have a mission—I think it should, and the majority of witnesses last week seemed to be in favour of that—there can be only one focus. I understand the premise of the Government’s not wanting ARIA to be constrained. I think the hon. Member for South Basildon and East Thurrock said that he did not want to hamper ARIA, but I disagree, and I think it is an honest disagreement to have. I do not see how instructing an agency to try to combat climate change and allow us to meet our net zero aims is hampering it. I think that provides not only the focus that the agency needs but the focus that we should all want it to have, because it is the biggest existential crisis facing us.
Stephen Metcalfe
I do not deny that climate change is the biggest issue that we need to address, but a huge amount of research is already going on in that area across UKRI and its £8.8 billion-plus budget. To focus all £200 million a year for ARIA on climate change could miss the point of what we are trying to set up. To me—it may just be me—it is blindingly clear what the mission is: to find areas of research for which funding currently cannot be accessed because it is too risky, and fund that. We talk about high risk, high reward, and that is the mission: to find science that is worthy of research but cannot get funding or support now. If we do that, we might find the next global positioning system, the next computed axial tomography scanner or the next hadron collider—something really inspirational and transformational.
Stephen Flynn
I certainly understand the hon. Member’s point, and, to his credit, he is persuasive in his arguments. None the less, hon. Members will be unsurprised to hear that he has not quite persuaded me, and I do not think his argument would necessarily persuade the witnesses—the likes of Professor Mazzucato and Professor Wilsdon—from whom we heard last week. It is right that we have this discussion, and it is good that we are having it in a positive and constructive fashion, but ultimately I believe there still should be a mission for ARIA. Without it, we are not doing all that we possibly can. DARPA is the clearest example of why a mission is important in this regard. We spoke about it on Second Reading, and we heard from the horse’s mouth just last week about the importance of the mission to DARPA.
Advanced Research and Invention Agency Bill (Third sitting)
Stephen Flynn Excerpts(3 years ago)
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Stephen Flynn
I beg to move amendment 31 in schedule 1, page 6, line 22, at end, insert—
“(3A) The Secretary of State may not appoint a person as chair unless the appointment of that person has been approved by resolution of each House of Parliament.
(3B) ARIA may not exercise any functions under this or any other Act, nor may the Secretary of State make any grants to ARIA under section 4 of this Act, until its first chair has been appointed.”
This amendment requires both Houses of Parliament, under the affirmative resolution procedure, to approve the name of the proposed Chair. ARIA may not exercise any functions, nor may the Secretary of State make any grants to ARIA until its first chair has been appointed.
The Chair
With this it will be convenient to discuss the following:
Amendment 10 in schedule 1, page 6, line 26, at end insert
“with the consent of the Science and Technology Select Committee of the House of Commons.”
This amendment would require that the Secretary of State seeks and obtains the consent of the Science and Technology Committee of the House of Commons for the appointment of ARIA’s first Chief Executive Officer.
Amendment 33 in schedule 1, page 6, line 26, at end insert
“(1A) The Secretary of State may not appoint a person as Chief Executive Officer unless the appointment of the person has been approved by resolution of each House of Parliament.
(1B) ARIA may not exercise any functions under this or any other Act, nor may the Secretary of State make any grants to ARIA under section 4 of this Act, until its first Chief Executive Officer has been appointed.”
This amendment requires both Houses of Parliament, under the affirmative resolution procedure, to approve the name of the proposed Chief Executive Officer. ARIA may not exercise any functions, nor may the Secretary of State make any grants to ARIA until its first Chief Executive Officer has been appointed.
Amendment 32, in clause 4, page 2, line 21, at beginning insert
“Subject to paragraph 2(3B) of Schedule 1,”.
This amendment is consequential to Amendment 31.
Amendment 34, in clause 4, page 2, line 21, at beginning insert
“Subject to paragraph 3(1B) of Schedule 1,”.
This amendment is consequential to Amendment 33.
Stephen Flynn
I would like to echo, first and briefly, the sentiments of my colleague in thanking the Clerks for their diligent work in the run-up to this Bill Committee and also to thank all of the witnesses who came to the evidence session last week. I found it incredibly informative and the hon. Member for Cambridge was right to highlight that at the start of today’s proceedings.
Amendment 31 and those related to it are quite simple. To coin a phrase that is oft used by Conservative Members, it is a way for this place to take back control. It is not a phrase that I would use willingly too often, for fear of sounding like them, but in this regard, it is a good way of summarising what is in front of us. It comes back to a key theme that runs through everything to do with ARIA and this entire concept. The hon. Member for Cambridge touched on it in respect of clarity. What is the Bill seeking to achieve? What is going to be the mission and the focus?
We heard during the evidence session that much of that determination of what the Bill seeks to achieve and the direction it takes is going to default to the chair, the CEO and those who are involved. They are going to fill the vacuum that the Government are leaving. That is fine, I assume, from the Government’s perspective, but it is incumbent on us as Members of this place, who are presiding over a significant amount of public money, to have a keen interest in what ARIA is seeking to achieve. The best and a very simple way we can do that is to ensure we have a chair and a CEO in place who we feel are pointing in the right direction. That is an important point to make, because—I am loath to mention him— Dominic Cummings in his evidence session and in the public domain has ties with people whose views are questionable, to say the least. I say “ties”, but he referenced scientists who promote the likes of eugenics and we need to be mindful of these things and that there are people out there who have views that are abhorrent. We do not know who the chair is going to be. We do not know who the CEO is going to be. We can trust the judgment of the Secretary of State or we can all play a part in deciding that. It is incumbent on all of us when we are talking about such a significant amount of public money to do our duty: to take back control and make sure ARIA has the direction that it requires.
Chi Onwurah
Amendment 10, which stands in my name and that of my hon. Friends, reflects many of the concerns articulated by the SNP spokesperson—the hon. Member for Aberdeen South—and would require the Secretary of State to seek and obtain the consent of the Science and Technology Committee of the House of Commons to the appointment of ARIA’s first chief executive officer. Some members of the Bill Committee serve on the Select Committee and know how well able the Science and Technology Committee is to hold to account the potential—future—CEO of ARIA.
I feel that this amendment is particularly important because, in a response to a parliamentary question that I received just yesterday, the Minister made it clear that the recruitment of the first CEO was under way and that no interim CEO would be appointed. We therefore need to ensure that we get the first CEO right.
The driving factor behind the amendment is the need for greater oversight and responsibility. We are in the midst of a crisis of confidence; a scandal of sleaze is overwhelming this House and many of its institutions. I will start with a quote:
“The lunches, the hospitality, the quiet word in your ear, the ex-ministers and ex-advisers for hire, helping big business find the right way to get its way.”
That is how former Prime Minister David Cameron described back in 2010 the next big scandal to hit British politics. I want all members of this Bill Committee to think long and hard about the way the Bill is currently drafted. It leaves £800 million of taxpayers’ money, and our scientific future, open to just that level of sleaze.
We see in the current cronyism scandal the consequences of placing power and responsibility in the hands of those who are not accountable and do not have the moral judgment to hold that power wisely in the public interest. This Bill places huge power and responsibility in the hands of the CEO of ARIA, with little ongoing accountability, a significant budget and none of the checks provided by the usual public procurement and freedom of information rules. It is critical that there be parliamentary oversight of the choice of CEO if we are to avoid both sleaze and, equally important, the appearance of sleaze. This CEO needs the confidence of the UK’s scientific community: they will have a huge challenge. But they will receive that confidence only if they are appointed on merit. The Bill was drafted before the current sleaze scandal and reflects far too much the “Ask no questions—that’s too much bureaucracy” approach. We see where that has got us.
Labour’s Opposition day debate on 14 April, just last week, highlighted the fact that the Greensill scandal is just the tip of the iceberg of the cronyism rife in the Conservative party during the pandemic and long before. It is laced through the billions of pounds-worth of contracts paid for by taxpayers and of a slew of troubling senior appointments.
Bill Committee testimony from Government witnesses such as Professor Philip Bond, and Dominic Cummings’ evidence earlier to the Science and Technology Committee contained multiple references to trusting the leaders of ARIA with £800 million of taxpayers’ money with no purpose or mission, none of the usual safeguards and complete freedom for the Secretary of State as to whom they appoint. We are concerned that this is a recipe for sleaze in science. There is no detail in the Bill—
Amanda Solloway
As I previously explained, there is no precedent in the system. We will be recruiting in the same way as we do for UKRI, and it does not go into legislation. I am very confident that we will have a full and robust process for appointing the chief executive. I therefore think that this is an open, fair and robust process. It is completely sufficient for finding the right people to be the chair and chief exec of ARIA and to make it a success. As such, I hope that the amendment will be withdrawn.
Stephen Flynn
I want briefly to reflect on a couple of the Minister’s remarks. She has twice referred to the fact that there is, of course, no precedent to what has been suggested and used UKRI as an example. However, it is possible to make freedom of information requests of UKRI, and the organisation is subject to public contract auditors, so the comparison is not fair or just. I respectfully suggest to the Minister that it is apples and oranges, and I think she needs to reflect on that
The Minister also said that she does not want to infringe on the principle of ARIA. What about the principle of scrutiny? What about the principle of Parliament playing its role in that process? Does that mean nothing to the Government? The hon. Member for Cambridge hit the nail firmly on the head with his final comments. The relationship between Government and Parliament is an important one, and I find it utterly bizarre, as I said earlier, that a group of MPs who were all elected on a platform of taking back control are so happy to give it away to a single individual. Surely they can all see how utterly bizarre that is, and how the public will reflect on that with complete and utter dismay.
I will reflect briefly on the debate. I am sure that many of the points will be raised again later, particularly in relation to FOI, public contracts and the sleaze in which the Government are obviously enveloped. I have to admire the courage of the hon. Member for Newcastle-under-Lyme, who has tried incredibly hard to defend the Government. I would suggest that perhaps he is trying to defend the indefensible. I am sure the Government Whip is incredibly impressed at the hon. Gentleman’s hard work in that regard, but he needs to be mindful about how tone deaf he perhaps sounds.
The very notion from the hon. Member for Loughborough that we cannot mention Dominic Cummings, even though he is the architect of the Bill, is utterly absurd. Did she not watch his evidence?
Jane Hunt
My point was that Dominic Cummings has been mentioned very frequently, but when debating the previous amendment we talked about wanting to promote women and their status in society and in science. We have here a Science Minister, but we are not referring to her with respect; we are referring to somebody else. That is what I was talking about.
Stephen Flynn
I am glad that the hon. Lady has managed to make her point, but with all due respect, I do not think I, or indeed anyone, has impugned the Minister’s capabilities in any way, shape or form. All we have done is reflect on why the Bill is here in the way it is. It was set up by an individual who only got the role of chief adviser to the Prime Minister on the basis that this would become a thing. She needs to be very mindful of that.
To go back to my initial point about why we have tabled these amendments, it is about the role of this Parliament. It will be of no surprise to anyone in this room that I do not hold this Parliament in much regard. I would be quite happy for the people of Scotland to not have MPs in this Parliament, but while the public in Scotland are contributing money to this Parliament, it should have a role in providing scrutiny.
Dawn Butler
As a member of the Science and Technology Committee, I can say with almost absolute certainty that its Chair would be in favour of having a say in who becomes the CEO of ARIA.
Stephen Flynn
The hon. Lady has certainly made her point very well. I will sum up, because I am conscious of time and the fact that everyone else is, too. We heard during the evidence sessions that we want someone who is cross-cutting and who is not the usual suspect. We want someone who is a divergent figure. Let us play a role in making sure that we get that person.
Question put, That the amendment be made.
Advanced Research and Invention Agency Bill (Second sitting)
Stephen Flynn Excerpts(3 years ago)
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Stephen Flynn (Aberdeen South) (SNP)
Q
I would like to pick up on a comment made by Dr Dugan, I think, in respect of the intersection of a goal, and using science and engineering to achieve that goal. It would appear, from looking at what is front of us, that the ARIA Bill does not have a goal. There is no mission or bright light that we are trying to get to. What is your collective view—all three of you—in relation to that? ARIA has no mission: is that a good thing or a bad thing?
Secondly, and hopefully briefly, do you think that the UK needs ARIA in order to compete globally when it comes to science and technology research and development?
Dr Dugan: Let me start by clarifying. From its beginning, the mission of DARPA has been very simple: to both create and prevent strategic surprise. Its connection to national defence has been important to its success. The particular goals that I spoke about were related to the programmes themselves. The programmes are constructed such that we have a clear way of measuring success or failure for the programme at the end of the programme. It is those two things that fit together: the programmes with individual ambitious measurable and testable goals, in service to the overall mission.
I have said in previous testimony that there is some wisdom in thinking about ARIA as directed to specific areas of interest in the UK; I think that is worthy of some thought. There is a strong base of expertise in the UK related to health and the life sciences. Therefore, that could be an area of focus within the resources that you have available to you.
To answer your second question with respect to the UK on the global stage, I believe that at this moment there is a historic opportunity in front of your Government to take a position on the global leadership stage. My particular area of focus has been in human health over the last year—that might be a way for the UK to come from the perspective of both national efforts and multinational efforts, in service to a global vision for what we want the world to look like post pandemic and post Brexit.
Professor Azoulay: If I may, I would like to answer the first part of the question. I read the Bill carefully, and I too was looking for a mission, because DARPA and ARPA-E are mission-oriented agencies. Having a high-level mission is very important to define the programmes with the specific goals that Dr Dugan was talking about, which will fit in the overall mission. It is entirely possible that ARIA will be something new in the innovation funding landscape—a UK model that will blaze a new trail. But if we compare it explicitly to something such as DARPA or ARPA-E, in its current form it is lacking a high-level mission. To give an example, for ARPA-E that high-level mission is to overcome the long-term and high-risk technological barriers in the development of energy technologies. It is quite high level. Having that front of mind for everyone in the agency channels the energy and lets people animate or catalyse a community to allow the portfolio of projects to be more than just the sum of its constituent parts.
Dr Highnam: DARPA: defence and national security. Clear mission; clear scope in which to work. Of the ARPA-like entities around that I am aware of, the only one that very closely follows the DARPA model would be the Intelligence Advanced Research Projects Activity in the US intelligence community. When you change what I would regard as the key elements—ephemeral or temporary people, project based, and no fixed assets—that have made DARPA nimble and forward leaning for 63 years now, you get something else. That may be more appropriate for what you need, but if the objective is to mimic or replicate, there is only one example that I know, and there are three key ingredients.
Within that model, DARPA is a very shallow place in the managerial sense. Three layers deep: there is a front office, some tech offices and the programme managers. The overall mission provides the context, but the frequent hiring of office directors and PMs, and front office people too, means that there is always exploration—looking for that advantage. Part of our mission is to impose and avoid technological surprise. That is why we are here. It focuses everything.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Q
Dr Highnam: If I may, I will take the first shot at this one. It is the first two: we do not rely on the churn, as you say, of people for transition, but when you show up—when you come here—you come to make a difference. So you are always focused on transitioning the knowledge that is discovered in a more systems-oriented research programme—the thing or the entity—across into service of the nation. It is part of what you do. I think, as someone said earlier, it is that intersection of managerial and technical expertise, and a passion: those are the people you want at DARPA at any given time to frame and to drive—and not just to drive to discover, but to drive to transition as well. We watch that very carefully and the responsibility belongs to all of us in the agency.
Dr Dugan: We used to say at DARPA—and this is, I think, generally true of most organisations—transition is a full-contact sport, always has been and always will be. It is very difficult. Transitions of breakthroughs that are showing what is now newly possible, or a solution that did not previously exist, require a tremendous amount of effort. I think that it is important to recognise that there are many transition paths that grow out of an organisation that is ARPA-like. Some of the programmes, in the case of DARPA, transition to our military counterparts. Some of them transition to the commercial sector and then are bought back by national security or military. There are many different pathways. In some cases, programme managers go to other Government organisations to help in those transitions. In some cases, they rotate out and go to new things entirely.
It is important to recognise that the breakthrough itself is not sticky through the organisation that it was created in. The breakthrough then gets transitioned to impact and scale in the most suitable organisation in order to create that ultimate impact. I would add, in addition to the passion that many programme managers and directors feel, they are also impact junkies. They really come to make a difference. So the ultimate transition—the ultimate scaling and impact—is the goal. Make the breakthrough, and then transition it to scale.
Professor Azoulay: I want to note that there is a distinction between DARPA and other ARPA-like agencies in different contexts. I am sure Dr Highnam and Dr Dugan will think that it is an oversimplification, but to some extent there is one customer for the projects that come out of DARPA, whereas for something like ARPA-E it is a much more diverse and scattered ecosystem. The breakthrough needs to latch on to the energy system, and there are lots of different actors with lots of different interests. At ARPA-E that has meant that they have created explicitly a tech-to-market group, to try to get ahead of the translation problem of the project that has come out of the agency. I want to say that this is not independent of the mission. To create a good tech-to-market group, you need a certain scale within a certain scope, and to the extent that your projects are too scattered, it is going to be a lot harder to create that scale, and so harder to create the transitions.
Amanda Solloway
Q
Professor Glover: I would argue that there is huge value in that. Obviously, the funding is coming from Government, but by giving it freedom from Government you might also be giving it the freedom to fail in many ways, and that is exceptionally important. If it is seen as very close to Government—whichever Government is in power—it potentially becomes a bit like a political football, either in what is being funded or in the direction suggested for where ARIA funding should go.
If there are notable failures of funding, which you would expect if it were a high-risk, high-reward funding agency, political opponents will also say, “Well, look, this is a complete disaster under your custodianship. Here are all the failures.” You just want it to be separate from that. It is also part of trying to embrace the unthinkable, if you like, in terms of the research we do and the areas we go into. Necessarily, those will sometimes be difficult areas, and not ones that you should expose Government to either. In the spirit of opening everything up, I would say that keeping that independence is extremely valuable.
Tabitha Goldstaub: I totally agree with what Anne just said—I would have said exactly the same thing. I think that the separateness and independence are really vital to the success of ARIA. The only thing that I would really think about adding here is how important it is that ARIA does have a relationship with Government, because it will need to have many customers, both private sector and public sector. The programme managers will need to create those bonds with central Government Departments individually.
I think that a commitment from Government to remain independent but to become good customers is very important. The health and transport sectors are good examples of where that might work. What is different is that a surprising number of these next big scientific fields, and these next big breakthroughs, such as artificial intelligence, are going to depend on systemic transformation, where you cannot separate the technology from the policy and regulation.
So yes, ARIA has to be independent, but it also needs to ensure that it works really closely with central Government and with regional and local government. Local government spends about £1 billion on procurement, and cities are key investors in infrastructure, so finding a good link with local government, as well as with central Government, is important. This will hopefully end up creating, as Anne suggested, a way that people feel part of this. Regional strengths deliver benefits to actual localities. Even if it is within the next 10, 15 or 20 years, it is really important that government feels part of that, even though ARIA is independent.
Stephen Flynn
Q
On independence from Government, from looking at your bio, Anne, I can see that you have worked for a few public agencies. If ARIA does not have the public contract regulations and freedom of information in place, will that free it to do what it needs to do? Should we see that as a positive as opposed to a check imbalance, given that we are referring to public money?
Professor Glover: I will deal with that point first—it is an exceptionally interesting point. Initially, when I saw that it might not be subject to FOI, I was thinking, “What are the pros and cons of that?” There is one thing that needs to be fundamental in ARIA, and that is an openness and transparency about what it is funding and why, and how it is doing it. For most things—UKRI would be similar to this—what you provide information on obviously cannot be something that would break the General Data Protection Regulation or that would be commercially sensitive. That should hold exactly true for ARIA as well.
There needs to be some thinking around the whole aspect of openness and transparency, because that brings along with it trust and engagement. If there were any suggestion that Government funding was going into ARIA and it was being syphoned off into particular areas, and we could not find out what those areas were, there would be nervousness. People would, quite rightly, object to that, so there would have to be some greater thought given to how the agency is able to be open and transparent. It might be writing its own rulebook in that area, about what it will provide information on and what it should not.
On whether £800 million is enough, you are asking a scientist and a researcher here, so no, it is never going to be enough, but we have to start somewhere. I cannot make a direct comparison with DARPA’s funding, which is about $3.5 billion or $4 billion per annum, but I might be a bit out of date on that. It does not seem unreasonable to me to start at that level of funding and to start off on the journey to see what is and is not working, where there is greater demand and where you might need more funding to meet it. What you would want to see is that this was such a success that there was substantial demand for funding.
On the other hand, you do not want to get into the situation that standard research funding has—I have certainly visited it many times during its lifetime—where you are putting in 10 research proposals to get one funded. That is an enormous waste of everybody’s time, including the agency that is funding the research. There needs to be a balance between how much money is available and what you hope to do with it.
The last thing I would say is that how that funding is apportioned needs to be carefully thought out, because there needs to be some security of funding. Traditionally in the UK, we have normally had three-year tranches of funding. Long before the end of the three years you have to try to think about how you get continuation of funding. You might hope that ARIA could look at a different model of funding, which might span different timescales depending on what the nature of the project was.
Many projects, particularly ones that are quite disruptive in thinking, will not deliver in a short period—two or three years—of time. Some could do, but some will not, so there needs to be that security of funding over different annual budgets to allow the investment over a period of time.
Tabitha Goldstaub: I will start with the amount of funding. I see the £800 million as just a start. I think that £800 million is sufficient as long as ARIA works in partnership with Government Departments, the private sector and other grant makers. ARIA should not be restricted in matching or exceeding the Government funding with funding from the private sector. There are people in the community that I have spoken to who think that for true intellectual and financial freedom, ARIA should be able to more than double the Government funding. It was good to see in the Bill that the potential for ARIA to take equity stakes in companies and start-ups in a venture fashion could lead to increasing that part over time and making more funding decisions. I see the £800 million as really just a starting point.
On freedom of information, I agree with Anne that openness is key. Transparency fosters trust, and I do not think there is any need to stop freedom of information. We need to keep freedom of information to help with the efforts for connectivity. If the community are going to feel part of ARIA and will it to do good things, they need to be able to use freedom of information. I cannot see any argument against this for the administration costs. Earlier this morning, we heard Ottoline Leyser say that UKRI gets 30 requests a month. If ARIA is 1% of the budget of UKRI, perhaps it could get 1% of the requests, which would be fewer than four a year. I cannot see it, for that reason.
The other reason why there is a desire for secrecy and no FOI is that people traditionally are not comfortable to innovate and fast fail in the open, but that is changing. DeepMind has teams. I have spoken to Sarah Hunter, who is at Google’s moonshot factory, X. She explained how they started in secret and everything felt so appealing, to protect people from any feeling of failure, but what they learned is that there are so many other much better ways than secrecy to incentivise people and to give them the freedom to fail. Actually, allowing for more transparency builds much more trust and encourages more collaboration and, therefore, better breakthroughs.
Anne has spoken about the community. I definitely will speak again about the community, but in addition to the community engagement, ARIA will need to have a press department and media engagement teams that are separate from BEIS, separate from the grid and separate from the Government, to enable it to be agile in its communication and foster a two-way conversation. In order to answer your question, I really think this is the key point: openness and transparency create more trust and more breakthroughs.
Stephen Metcalfe
Q
Professor Glover: How we measure success in the early years is a very important question. I am not going to give you an exact answer, but what I might say is that maybe we should not try. That would be unusual, wouldn’t it? That is what I meant earlier about not just following the formula of, “You need to tick these boxes to demonstrate success.” Of course, you would hope that whoever is leading ARIA would have an idea of how you are developing the innovation ecosystem that will be supported by ARIA. They might have some ideas about numbers of applications, where they are coming from, and having a good look at and analysing that, and looking at the amount of interdisciplinary or multidisciplinary research that comes forward. That is always quite hard to fund. Historically, when I have been involved in such things, interdisciplinary research tends to get kicked around different agencies: “This is more for you.” “No, this is more for you.” Everybody is worried about their budget and thinks, “If you fund it, we won’t have to fund this from our budget.” Thinking about the number of applications that could come from a broad range of different disciplines—that would be good. I am not answering your question directly. I am just saying that it is very easy to say, “Let’s have a way of measuring success,” but sometimes that can be stifling.
It is a bit like—perhaps not in the years timescale of ARIA—how it is around the time of year when we plant seeds in our garden or wherever. If you want to measure how well a seed is germinating, if you keep pulling it up and having a look at it you are really going to set it back, so sometimes you just need to think, “I’m hoping that in four or five months’ time this is going to be a broad bean plant with broad beans on it. I just need to wait and see.” I know that that is difficult to do.
The second thing you asked is about commercialisation. I cannot for the life of me remember who said this, but someone once said that there are two types of research: applied research and research not yet applied. That is quite true. There might be some areas where you think that there is a very easy market for this, but if we look back and learn from experience we find that an awful lot of research has been developed. The whole area of medical diagnostics, for example, was pure research. There was no commercialisation; it was just a fundamental biological problem that was being investigated. Some of the outcomes of that research led to molecules called monoclonal antibodies. It is quite a beautiful specific diagnostic—supremely sensitive—that can pick out particular molecules of interest that might tell you if you have a particular disease or have been exposed to a particular compound or whatever.
In renewable energy or an area around that, you might understand that there will be a lot of potential commercial partners and opportunities. In some other areas, perhaps not. This might be an opportunity to think about what the relationships would be like between ARIA and existing research funding, because it might be part of an ecosystem. I would hope that there were distinct roles for UKRI and ARIA but very good communication between the two, as well as very many other stakeholders, in order to identify areas that might not be suitable for UKRI funding but that might have a strong commercial or development potential that ARIA would be much more adept at supporting.
Advanced Research and Invention Agency Bill (First sitting)
Stephen Flynn Excerpts(3 years ago)
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Amanda Solloway
Q
Professor Leyser: Absolutely. I think that the kinds of examples that Tris has just talked about are quite illustrative from that point of view. Typically, the way the current system works is that we would put out a call for applications in a variety of contexts. It might be a completely open call; right across UKRI we run these so-called response-paid funding competitions where people with ideas about what they want to do can apply for funding to do them, whatever they might be. On the whole, those kinds of applications are the sort of bread and butter of really established research organisations: universities, institutes and, through Innovate UK, businesses. A lot of them are also collaborative with industry. It is that kind of grant application process that then goes through peer review, and we try to pick the projects that, as an overall portfolio, will best deliver what the UK needs, both in the short term and, absolutely, in the longer term, building that capacity and capability.
It tends to be established organisations that know the system and how to apply for those kinds of projects, and which have the structures available in their organisations to do that. With ARIA, however, I think there is the opportunity to test a much wider range of models, such as those kinds of competition-type prize approaches that Tris described—he is an expert in those. There is also a fairly well-established system called Kaggle for coding competitions, for example. That potentially reaches a much wider range of people. You do not have to apply; you do not have to have a system that can support that kind of application process. The funding flow is very different: it is a response to the results; it is the winner of the competition. As a result, it may be possible to reach a much wider range of people. In that coding space, for example, there are really extraordinary people working in their homes as freelance coders who would find it very difficult to access the classical UKRI and most of the funders that there are currently.
I very much hope that we would be able to tap into some of the talent right across the UK that is not in the more established places. That would be one really exciting outcome from this with that prize model. Where you have a really clear objective—so it is really clear who has won the money, so to speak—it is possible to do that in a way that does not automatically engage the kind of financial management systems that we have to use. For example, are we sure that this money is being spent on what the applicant said it would be spent on? If you are giving somebody the money for having done the research or having delivered the outcome—the car that goes across the desert—you are in a very different situation.
I do think there is a very interesting possibility for ARIA to reach those people who are talented and can contribute in ways that it is much harder to with the standard systems. I hope that we would learn from that and be able to import some of that expertise into the standard system when it was established and really clear that it was providing good value for money in a robust way.
Stephen Flynn (Aberdeen South) (SNP)
Q
Tris Dyson: Well, more money is better. I think this money needs to be deployed intelligently, so being quite clear on the missions and the focuses is really important. It is even more important with a still significant amount of money but relatively smaller sums. Getting those areas right is really important. The examples that were just given about Kaggle and databased approaches are potentially a useful avenue for some of this, because the R&D investments and sunk costs are relatively low as opposed to building spaceships or something like that. That would be the sort of calculation you might need to make.
You can also use leverage. One of the areas that the UK has been pioneering is around regulatory sandboxes, for example, through the regulators’ pioneer fund, which is administered through UKRI. But some regulators, off their own backs, have also been setting up and developing sandboxes that allow innovators to play with datasets in an environment where the regulator is giving them a little bit more permission than they might have had otherwise. That in itself is an incentive, particularly when you are playing around with datasets.
You can think of examples where we have got significant strengths. One of the things we have talked about a lot during the pandemic—more recently, at least—is the UK’s strengths in genomics research. That means we have got an enormous range of data that could be made available to people through the likes of Genomics England, which in itself is an inducement or an encouragement above and beyond the financial. So being clever—boxing clever—with the money is important.
In terms of ruthlessness, part of this comes to the culture. The ARIA team will have to establish a culture where they trial things out, set targets and objectives and have constant reviews where they get together and decide whether to kill things off. That is clearer when you have defined missions or objectives that you are working towards. It is much harder when you are fostering lots and lots of different things—it is hard to compare X with Y.
Professor Leyser: From my point of view, the question I would ask is not so much how much money should ARIA have but what proportion of the public sector R&D spend should go into this way-out-there, high-risk, transformative research-type project and, of that, how much should be in ARIA. It is a proportionality question and, as Tris said at the beginning, at a time when there is an aim to drive up UK investment in R&D to 2.4%—hopefully beyond that, because 2.4% is the OECD average and I think we should aim to be considerably better than average—that is quite a stretch target for us. We do incredibly well—the quality and amount of research and innovation in this country is extraordinary—given that we currently invest only 1.7% of our GDP. So I think the opportunities to build that really high-quality inclusive knowledge economy, given how well we perform in the R&D sector with such a small proportion of R&D, are incredibly high.
On that rising trajectory, with us aiming for that 2.4% and beyond, I think spending a small proportion of that on this edge-of-the-edge research capacity and capability is the right thing to do. I would look at the budget in that context as a percentage of the overall R&D spend. People have been comparing the current ARIA budget with the budget of organisations such as DARPA, but if you look at it as a percentage, you get a very different number because, obviously, the US spends a much higher proportion of their—anyway—bigger budget on R&D than we do. That is the important question from that point of view.
How will we know that it has succeeded, and what would one expect the percentage failure to be? I agree with Tris that it is incredible difficult to predict. There is also serendipity and other things to factor in. If you set yourself a fantastic target of solving a particular problem or producing a particular new product and you fail to do that, none the less, along the way you might discover something extraordinary that you can apply in another field.
That high-risk appetite feeds into the question, again, of how much money or what proportion of the overall R&D portfolio should be invested in that way. One has to think about risk in R&D in that portfolio way. It is considered generally in investment markets that really high-performing investment portfolios are a portfolio. You invest in stuff that you know will deliver in an incremental sort of way, and then you invest in the really high-risk crash or multiply parts of the system. That is very much how one has to think about ARIA.
In that domain, where you have a very high probability of failure—that is what high risk means—but also an extraordinary probability of amazing levels of transformative success, it is a dice roll. The total number of projects will be relatively small, so it is very hard to predict an absolute number or proportion that one would expect, and one should not need to—that is what high risk, high reward means.
The Chair
Thank you, Dame Ottoline. We have just under 20 minutes. Members need to be around the horseshoe to ask a question—there is a microphone on the corner. I will tell you the order in which I will ask questions, so those who are not in the horseshoe can get there. I will go to Daniel Zeichner first, Stephen Metcalfe second, Dawn Butler third, Aaron Bell fourth, Virginia Crosbie fifth and Chi Onwurah at the end. If anyone else would like to ask a question, please indicate.
The Chair
Absolutely, and then I will go to Stephen.
Professor Mazzucato: One of the things that DARPA is very good at is not only turning the tap on, in terms of funding the things that we have been talking about, but knowing when to turn it off. Knowing how to pivot and to be flexible and agile is absolutely necessary. Not only should this agency be free from burdensome bureaucracy, it needs to proactively get an agile and flexible structure, and the metrics that tell you when to turn the tap off, because this is the challenge. You want to be long-termist—going for the difficult things and not the easy ones, which you do not need an ARIA for—and also to have the metrics internally to tell you when things are not going right and when you actually have to stop.
Stephen Flynn
Q
I have a question for James and Mariana, and then one for Mr Bond. James and Mariana, you both clearly want to see a mission. However, I do not think we should necessarily kid ourselves that the Government will be minded to agree to any amendment in line with that. Do you have any other wider concerns about the Bill whatsoever, or around ARIA as an entity? Do you see any positives at all? In a previous evidence session, we heard about the good prospect of it being small and agile. Is that something that you would see as a positive?
Mr Bond, you are placing a lot of emphasis on the director—I think you used the words “people with high integrity who are brilliant”. That is pretty vague, to say the least. I am sure we could all pick people who we think are brilliant and have high integrity, so are there any definitive qualities, or anything at all with a little more substance, that individuals should have, perhaps in relation to scientific merit, or their background and commercial activities?
Professor Wilsdon: You are specifically thinking about aspects of the Bill that can be tightened and improved, accepting that there is only so much that can be done at this stage. The National Academy of Sciences—the Royal Academy—has published a very good and detailed set of probing amendments to the Bill just this week, and I would certainly endorse several of them. They include inserting a clause that requires ARIA to complement the work of UKRI. That would go at least some way to dealing with the concern that persists over boundary skirmishes, shall we say, or fuzziness at the edges of what the big public funding agency is there to do and what this new thing is there to do.
Accepting that it is going to be hard in the middle of the Bill to define the mission—it is the wrong way to go about it—I wonder whether tightening up some explanation in the legislation of how the process of defining the function and orientation will work, whether on a cyclical basis, for example, choosing particular things to focus on over a five-year cycle or whatever, would also help.
I worry greatly about the touching faith that Philip and others seem to place in the capacity of the chief executive and chair to be these sort of omniscient, wise characters and, indeed, in the Government to choose the right people. It is very important when we are spending £800 million of public money that we establish proper mechanisms of transparency and accountability. I do not think that has to inhibit innovation. I do not think there is any supporting evidence that freedom of information or other measures that currently exist are inhibitive of effective innovation. I do not recall any discussion of that coming up during the passage of the Higher Education and Research Act 2017, three or four years ago, which Committee members may have been part of, and when UKRI was being created. It was not a problem to which any discussion was directed, so I am confused. Such provisions apply to DARPA and other bodies in the US system.
When it comes to people, I hope very much that the Government manage to secure talented people. I hear Lex Greensill is available and has impressed many senior figures in Government in the past with his innovative and disruptive approach to various financial mechanisms. That is the point: if we want this thing to survive and persist and be a valuable addition, it needs to be set up in a way that will avoid capture by anyone—by me, by Mariana, by Philip, by anyone. That is the reason why we have the structures. It really is incumbent on Parliament now, through this process, to try to put more of those mechanisms in place. I just do not see the evidence that they will inhibit its effectiveness.
The biggest barrier to effective, creative, high-risk funding of research and development in this country over the past 10 years has been lack of investment, period. That is the issue: lack of investment. It is great—it is wonderful—that the Government are tackling that with its doubling of public R&D by 2025, if they get there. As I said at the start, that creates the space in which new initiatives such as ARIA can thrive—I hope they do—but there is no evidence that I am aware of for some of these unsupported assertions that are being bandied around about bureaucracy in the system and transparency being the problem. I just do not see it. In terms of the legislation, it is very important to try to tighten those provisions.
Professor Mazzucato: I would agree with a lot of what James said on investment. It is very important to remember that the UK continues to have a below-average GERD—gross R&D spending—over GDP, but also a below-average BERD—business investment in R&D. One of the key things that the DARPA model did in the past was precisely through being ambitious in areas that were market creating, not just market fixing, and also really cheap to crowd in business investment. Again, as I mentioned before, we need metrics to make sure that is happening—in other words, that it is actually creating additionality and getting investment to happen that would not have happened otherwise.
Coming back to the big question, which is a very important one, there are three big things we need to make sure we are doing. One is to have a very clear idea of the innovation landscape in the UK and exactly the gap that this new agency would be filling, because even though it might be exciting to form a new agency, if it is not filling a real gap and is just creating a bit of confusion and repetition, or creating something we do not need, that is a huge problem. Personally, I think it is a good idea, especially if we structure it in the right way.
One of the things I did in the European Commission was put forward this idea of mission-oriented innovation. On the back of that, missions are now a new legal instrument within the European Horizon programme. What that does is ensure that the part of the European budget that used to be challenge-oriented in a very vague way now has the concept of missions to guide it. I argued that we needed to make sure we know what we are talking about when we use the word. I argued that five different conditions had to be there.
The first was that missions be bold and inspirational with wide societal relevance. The second was clear direction—targeted, measurable and time-bound. That is the point before: making sure you can answer “Did you achieve it or not?” The third was to be ambitious but realistic, supporting existing research and innovation actions as well as applying them to those difficult new areas, and, again, areas where there is actually a customer basis. The fourth was that they have to be cross-disciplinary, cross-sector and cross-actor. I gave an example where it is not just about going to the moon—a carbon-neutral city would also require all sorts of innovation across multiple sectors. So it is making sure this does not replace a sectoral approach, but really fosters that inter-sectoral approach. The fifth was that it has to stimulate multiple bottom-up solutions. That is where we need to make sure we are not confusing the concept of missions with projects—often pet projects.
Third is the whole point about expertise in Government. Of course we need expertise in Government and we often have that expertise. When we do not have that is also when you are most open to capture. In my recent book “Mission Economy” I dug out some really interesting documents in NASA, during the Apollo programme, where they said “If we stop investing within our own brain, our own R&D, we are going to get captured”—by what they called “brochuremanship”. At the time, businesses did not have sexy PowerPoints, like, say, PwC, Deloitte and so on: companies came in with brochures to argue why they should be working with NASA. They said, “We need to be working with the best businesses out there, and in order to know how even to write the terms of reference with the businesses and know which ones to work with, we ourselves have to be knowledgeable.”
This comes back to the point, do we have a Government who have been, over the last decades, investing within their own dynamic capabilities within the public sector? I think, here, we need to look at what has been recently coming out in the news. Lord Agnew argued that we have been infantilising Whitehall by the over-use of consulting companies. So the lack of investment within Whitehall, within Government, in their own capabilities, is the biggest opener to the possibility of getting captured; because they do not necessarily then know what they are doing in different landscapes.
Lastly, I would argue that one of the things that most distinguishes the UK innovation landscape from the US one, even taking size into consideration, and everything else, is the lack of confidence. Since I have lived in the UK, for the last 20 years—I am now proudly a UK citizen—there has been constant change in names, whether it is the Technology Strategy Board becoming Innovate UK or what is now the Department for Business, Energy and Industrial Strategy having changed its name four times in the past 20 years. If Government do not know what innovation is for, and if they have these constant consultations with others telling them what to do, that exudes—it kind of reeks of—lack of security. I am not saying you should be confident for the sake of it. I do not even think that is necessarily a value to be held; but this idea that actually we do not even know what we are talking about in terms of what the role of BEIS is, or what the different types of institutions are, what their role is and how they can work together with a dynamic, innovative division of labour, instead of constantly changing the names of existing institutions or bringing forth new ones: that is just something that someone is going to have to deal with.
The Chair
Professor Bond?
Professor Bond: I think the question I was asked was about the qualities I might look for in someone. I think that the principal quality that you want in a director, and in the programme managers, is divergent thinking. We have a tremendous system for educating people to become extraordinarily good convergent thinkers. That means they are very good at solving problems in a specialised domain; and that is a valuable set of skills. Here, you need something that goes beyond it. We have heard a lot about NASA. NASA famously realised this in the early days and set about looking for divergent thinkers—and had a test for divergent thinkers. You want someone who shows the ability to be both a very good convergent thinker—a conventional thinker—but also a very good divergent thinker. That is a much rarer thing.
I think you want someone who has shown that they have a real interest in cross-cutting by having done it much of their life. A lot of people talk about it but do not do it. So you want someone who does. When I say cross-cutting I mean across different disciplines—someone who has actually done more than one discipline and someone who has actually worked with industry and academia. That is what I think would be ideal—someone who has an insight into science but also engineering, because you are going to need engineering know-how, and engineering thinking is not the same as scientific thinking. I have worked a lot with Formula 1, for example, and with Rolls-Royce, and it is a different form of thinking.
It is a little closer to what Professor Mazzucato was referring to when she said that you want to combine the thinking of fundamental research with really pushing the limits and boundaries of things. I think you want someone like that. Someone phrased it to me recently as not wanting to see the usual suspects; that is probably one way you can frame it. I think you want somebody who is clearly respected, because people who know them know that at least they have solved some hard problems.
I would like to address the point about avoiding capture. You can talk about people having special interests. Lots of people have come out and said what they think this should do. I have tried rather hard to say exactly what I do not think it should do. I do not think it should do this, that or the other and I do not think that you should necessarily say that it should do this, that or the other, so I am not someone who would want to end up capturing it, in that sense. I want to firmly assert that you put trust in people. When you put trust in people, those people will have some ideas, expertise and background, so you will be making choices. Making choices does not equate to capture, and it is entirely possible to put trust into excellent people and let them do things. We do that with democracy and with Parliament.
In terms of the level of transparency, transparency is a good and wonderful thing in most areas, but if you are asking people to go out on a limb to really push the envelope, I would assert that there is an argument, which has some validity, that you make it psychologically much easier for them if they do not feel that they are under a microscope. Many people tend to step back when they are there. Unless there is some overarching reason for it, I think that they can absolutely be over the size of what is done—they should be and will be—but I do not think it needs to be excessively burdensome in terms of the transparency of what is happening. Again, it comes back to the trust model that you have. The trust model I have is that I believe you can find people you can put trust into, even with £800 million.
UK Steel Production: Greensill Capital
Stephen Flynn Excerpts(3 years, 1 month ago)
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Stephen Flynn (Aberdeen South) (SNP)
I commend the shadow Minister for securing this urgent question on what is an incredibly important topic, not least for the workforce, who I assume are listening very closely to the Secretary of State. Of course, this issue is important not only to England and Wales but to the people of Scotland. The Dalzell and Clydebridge steelworks are very much at the forefront of my thoughts, and so too are GFG’s wider holdings, such as the Lochaber smelter. I am very conscious of the fact that the Cabinet Secretary for Rural Economy and Tourism made a proactive and informed statement to the Scottish Parliament yesterday. I would welcome assurance from the Secretary of State that he will engage in open and transparent dialogue with my colleagues north of the border moving forward. Finally, I would welcome a little bit of clarity from the Secretary of State on quite how far his Government are willing to go in respect of supporting what are, as I understand it, perfectly viable businesses.
Advanced Research and Invention Agency Bill
Stephen Flynn ExcerptsTuesday 23rd March 2021
(3 years, 1 month ago)
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Stephen Flynn (Aberdeen South) (SNP)
It is a pleasure to follow the Chair of the Select Committee on Science and Technology. Like other Members, I tuned in, eyes wide open, to hear what was said. I look forward to further instalments of that show in the month to come, as I am sure others do. I place on record my thanks, as other Members have done, for the fantastic work that has been undertaken by scientists in the UK in relation to the vaccine programme. It is something that unites us all. We all know that it will transform our lives, and we are collectively thankful on that front.
I commend the Secretary of State, as he has achieved something that is quite remarkable, certainly during my short tenure in the House. He appears almost to have united everyone in vague or cautious support for the Bill. On the face of it, it is something that we can welcome, but we have concerns, which I shall come on to, and reservations that need to be addressed in a positive manner, and hopefully the Secretary is willing to do that.
Before I deal with that, I am conscious that for my hon. Friend the Member for Airdrie and Shotts (Neil Gray), who is sitting to my left, today is his last day in the Chamber, and he will make some valedictory remarks. I wish him the best going forward. As everyone in the Chamber will be well aware, all Scottish nationalists do not want to be here. He is getting away a little sooner than the rest of us, but we wish him well, and I am sure that Members across the Chamber do likewise.
Turning, you will be glad to know, Madam Deputy Speaker, to the substance of the Bill, I hope that, while I have made some positive comments, the Secretary of State will forgive me for saying—perhaps I have picked this up wrongly—that his short speech may reflect the fact that the Bill is incredibly vague on details. The first thing to reflect on in that regard is the wider mission of the Bill. That was addressed at length by the right hon. Member for Doncaster North (Edward Miliband) and by the Select Committee in its hearing last week. What is the Bill trying to achieve? Is it health outcomes, defence outcomes or transport outcomes? The clarity is not there. I heard what the Chair of the Select Committee said about having a focus on two issues. That is all well and good, but we do not have those answers yet from the Government. We need them moving forward, because there is a real concern and risk that what we have is something that becomes a jack of all trades, but a master of none. The Committee said that it was
“a brand in search of a product”,
which is entirely apt at this stage.
The right hon. Member for Doncaster North has rather stolen my thunder in that regard, because I want to discuss what the Bill could seek to do. It could follow Scotland’s lead. In Scotland, we have the Scottish National Investment Bank, which has a clear purpose to invest in net-zero technologies. Why do we not replicate that in the Bill? Why do the Government not put that front and centre of their agenda? The hon. Member for North East Bedfordshire (Richard Fuller) is shaking his head, and he is more than welcome to intervene, to state why climate change should not be at the forefront of the Bill’s agenda.
Richard Fuller
I am grateful to the hon. Gentleman for giving me a chance to speak. I want to check that we are talking about the same aspects of the Bill, because he is trying, while saying what he thinks in a broad way, rather narrowly to define the scope of what research science projects can be. Does he not accept that there is a tension there, and that the Scottish example is precisely not what this is about?
Stephen Flynn
I reject the suggestion that climate change is a narrow focus given that climate change covers a whole host of areas. I see the Secretary of State nodding along with that. Presumably he is in agreement having previously been the Minister of State for Business, Energy and Clean Growth. When we look at this, we need to bear in mind DARPA, which has been talked about at length by others. DARPA had that clear focus, and that clear focus has allowed it to excel, in terms of GPS, the internet and the like. We should seek to replicate that, with climate change at the forefront.
It is regrettable that the Government have not simply made that suggestion, but it is not surprising, because, just last week, they sought to invest billions of pounds in new nuclear weapons. They could have said, “Here is £800 million that we are going to invest in trying to save the planet rather than destroy it.” In relation to the mission, therefore, the Secretary of State still has a great deal of work to do.
The second key area that I would like to pick up on is in relation to the wider leadership on the Bill. Although that has been referred to already, we do need to have clarity about how that process will work. What will be its outcome? Who will be the leader, or the leadership team, that takes this forward? There have been suggestions, indeed by Dominic Cummings himself, in relation to eminent scientists—scientists who, unfortunately, have been excluded from their professional role given the comments that have been made in relation to eugenics and race. Although I appreciate that the Secretary of State may not be in a position to say what the qualifying criteria will be for someone who takes on this role, I expect him to say what the disqualifying criteria will be. I certainly expect that someone who projects views of eugenics would fit into that disqualification category.
My third point relates to resources and accountability. I am very conscious of the fact that much of what I am saying is a repetition of what has already been said, but that is often true of what is said by everyone in this House, and I am sure that there will be more of that to come. I cannot get my head around this notion that we can throw away freedom of information and public contract processes in order to achieve something. I may have incorrectly picked up the hon. Member for North East Bedfordshire (Richard Fuller) on that point he made earlier about being inspired to do that. I do not see it as inspired. I do not think that the public will see it as inspired. They certainly will not see it as inspired coming, as it does, from a Conservative Government, given what we have seen over a number of months in relation to cronyism and the concerns that we all have about that. When it comes to public money, public trust is of paramount importance. Frankly, the Government are not being as clear, transparent and open as they should be about the Bill.
Aaron Bell (Newcastle-under-Lyme) (Con)
Is the hon. Gentleman aware that UK Research and Innovation receives about 300 FOI requests a year? A small and nimble organisation such as ARIA would be completely buried under the weight of that many FOI requests. That is why we are taking the approach that we are here.
Stephen Flynn
That is an interesting point, but it appears that the hon. Gentleman was not listening to what was said earlier in relation to DARPA. I think it was 40 FOI requests for DARPA, which is, obviously, a much larger organisation than ARIA will ever be. It is one that will perhaps attract a lot more focus, and yet there were just 40 FOI requests. If that is the strength of the argument that Government Back Benchers will put up in relation to this, then, frankly, it will fall short in the eyes of the public. The reality is that we are talking about £800 million of public money. There will of course be a tolerance of failure. Everyone accepts that there must be a tolerance of failure, but there needs to be openness and transparency around the process, and, quite frankly, at this moment in time, there is not. I do not have confidence that the Government will be able to deliver on that front.
Finally, I just want to touch on what is perhaps the most important aspect of this Bill, which is, unsurprisingly, in the Scottish context. A total of £800 million will be flowing towards this project. How much of that is coming to Scotland? Will it be Barnettised? Will there be consequentials from it? Is this going to be a UK-wide project? If so, why? Why are we not investing in Scotland? Are we trying to undermine the Scottish Parliament once again? We have seen it with the United Kingdom Internal Market Act, the levelling-up fund and the shared prosperity fund; are we now seeing it with ARIA, too?
Why do the Government not seek to invest in the Scottish Parliament? Why do they not seek to allow the Scottish Government to put the money into the Scottish National Investment Bank, which I have already mentioned, so that Scotland can create the scientific achievements that it wants to use to shape our own agenda, particularly—I repeat—in relation to climate change? Why have none of those things come forward? It appears as though Scotland does not exist in the context of this Bill. The Government seek to talk up the Union; the way to solidify the Union is not to trample continuously over the Scottish Parliament, because the people of Scotland are well aware of what is going on in that regard.
Let me conclude by making one more important point. We all have concerns about the Bill. It has broad support, but we have concerns that ultimately it will become another London-centric project, and not only that but one that gets hijacked by the right wing of the Tory party for its own ends. That is not something we are willing to support.
Oral Answers to Questions
Stephen Flynn Excerpts(3 years, 1 month ago)
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Stephen Flynn (Aberdeen South) (SNP) [V]
I am afraid the previous answer simply was not good enough, because we cannot have a situation where some businesses do not have the support that they need while another set of businesses have had absolute certainty since the start of the pandemic—those, of course, being the ones with links to the Tory party; as we now know, they have had Ministers on speed-dial since day one and even a former Prime Minister tried to get in on the act. So does the Minister believe her Government have a culture of covid cronyism at their very heart, and will she now back an independent investigation into apparent lobbying by David Cameron?
Amanda Solloway
Throughout the covid-19 pandemic, the Government have supported people and businesses across the United Kingdom. The Budget extends the UK coronavirus job retention scheme and the self-employment income support scheme and extends the VAT cut to support tourism, leisure and all the sectors. People and businesses all over the United Kingdom will benefit and have benefited from the Government’s actions.
Anne-Marie Trevelyan
It is always a pleasure to meet the hon. Member for Kilmarnock and Loudoun (Alan Brown) to discuss these matters. COP26 is such an important moment, not only with our carrying the responsibility of the presidency to help encourage other countries to do more to reach their net-zero targets, but in order to showcase the genuinely world-leading decisions that we have taken to drive our own net zero.
Stephen Flynn (Aberdeen South) (SNP)
My hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown) just mentioned a number of areas where the UK Government can and should invest in Scotland. But we do not just need cash; we need a level playing field. That is particularly true in relation to the electricity grid. I am sure that the Minister is aware that a new renewables project in Scotland will have to pay in excess of £4 per unit to access the grid, whereas the renewables project in the south-east of England gets paid £1 per unit to access the very same grid. That is no Union of equals. Scotland has the ability to lead Europe in the renewables field. Why are the Tories trying to hold us back?
Anne-Marie Trevelyan
Scotland has indeed played an important part, particularly in the wind development sector. The Chancellor’s Budget included £5 million for the global underwater hub in Aberdeen, £2 million for the North sea transition deal and £27 million for the Aberdeen energy transition zone. This is just one part of the whole net zero challenge that we are looking to take on. We look forward to continuing to work with our Scottish colleagues.
Vauxhall at Ellesmere Port and Battery Manufacturing Strategy
Stephen Flynn Excerpts(3 years, 2 months ago)
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Stephen Flynn (Aberdeen South) (SNP) [V]
I commend the right hon. Member for Tunbridge Wells (Greg Clark) for securing this urgent question. The reality is that this matter depends on two key issues facing the UK right now: the disaster that is the Tory Brexit deal, but also, as has been said, how this Government intend to save and create jobs in the UK while driving through the changes necessary to reduce vehicle emissions.
On Brexit, the mess is clear for all to see. Indeed, the owner of Ellesmere Port said last month that it might make more sense to invest in Europe because
“the biggest market is on the continental Europe side”.
The Tories need to own their mess, as indeed does the Labour party, which has happily pushed a deal over the line. Does the Secretary of State now, even grudgingly, accept that the deal is not fit for purpose?
On vehicle emissions, the shift towards electric and, perhaps even more so, hydrogen is vital to deliver the reductions necessary, but we need to ensure that we create a supply chain at home that supports vehicle manufacturers to make an affordable transition. The Secretary of State will likely accept this point, but does he not agree that his Government need to go further and faster in their financial support?
Kwasi Kwarteng
The hon. Gentleman raises two issues. I think the Brexit deal is a success. Given the fact that we had two general elections in that period and five years in which we spoke about nothing other than Brexit, to reach a deal in the time we did was successful, and clearly Nissan committed itself to Sunderland on the back of this very good deal. He is quite right: I think we can go further and faster in driving the transition—the energy transition—and my right hon. Friend the Prime Minister’s 10-point plan and the energy White Paper, which I have referred to, point the way in that regard.
Oral Answers to Questions
Stephen Flynn Excerpts(3 years, 3 months ago)
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Kwasi Kwarteng
Of course, Mr Speaker, you will remember that, ahead of the Brexit deal, we were told that there was never going to be a deal and that we were going to crash out with no deal. We were told all sorts of scare stories about what would happen with Brexit. I fully accept that there are issues on the border, and I fully accept that many of the business leaders I have spoken to have raised issues, but I think the situation is far better with a deal—ask Nissan in Sunderland—than was the case, certainly, only three months ago.
Stephen Flynn (Aberdeen South) (SNP) [V]
I have been listening closely, and so far the Secretary of State has failed to give a long-term commitment to the furlough scheme, he has failed to provide any certainty whatsoever on business rates, and he has failed to back support for the excluded. As was just referred to, businesses are not just dealing with the damage caused by the pandemic; they are also facing the chaos of Brexit. Exports from the UK to the EU are reportedly down by 68%, and just 10,000 out of 50,000 customs agents are in place. Can the Secretary of State confirm just how bad things need to be before his Government set aside their dogma and instead ask the EU for a grace period in order to protect Scottish businesses?
Kwasi Kwarteng
I remind the hon. Gentleman that the Brexit debate is over; he, for his own purposes, wants to rekindle this. The business leaders I have spoken to have been extremely grateful for the fact that we got a deal, which he and others opposed—they also predicted that we would not get one. We are moving forward with an active plan and active engagement with the economy. Some £280 billion has been proffered so far. That is a picture that he fails to recognise.
Stephen Flynn
It is probably helpful to advise the Secretary of State that in Scotland the Brexit debate is far from over—in fact, we are just getting started. But I will take it from his answer that there will not be any grace period for Scottish businesses. However, there is one area where I hope he can provide some positive news: in relation to the North sea transition deal. The perfect storm of the pandemic and price crashes has seen 12,000 jobs associated with the North sea go already—and sadly, more are expected to follow. Can the Secretary of State confirm that he still expects the deal to be signed by the end of March, as his predecessor stated in the House? Will he agree to meet me and my colleagues in the city to discuss this hugely important matter?
Kwasi Kwarteng
The hon. Gentleman is quite right. He will be courteous enough to acknowledge that, as Energy Minister, I was directly involved in the conversations ahead of the North sea transition deal. I was very much in favour of bringing forward the completion of the deal. I am hopeful that we can manage to reach a really good deal, in which the sector accepts the need for decarbonisation very quickly.
National Security and Investment Bill (Tenth sitting)
Stephen Flynn ExcerptsTuesday 8th December 2020
(3 years, 5 months ago)
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I imagine that a report of the amount could be a very short one—“£100 million”—but I think all of us who have worked in start-ups and in the tech sector are quite aware that although the financial assistance provided is very important, it also very important to monitor its impact. For example, if it is a loan, in what ways will it be repaid and over what time period, and is the investment effective? I may be mistaken, but I do not see anything in the clause that sets out any need to report anything other than the amount. That is not what I would consider accountability. More generally, for a Government who I hope wish to show good practice on investment and taxpayer value for money, having more information on the amount—but also on how it was used, monitored, how it is to be repaid if it is a loan, and its impact—would also be desirable. On that basis, we support the intention of the clause, but we feel it is in need of some significant improvement.
Stephen Flynn (Aberdeen South) (SNP)
I think it was Cicero who said:
“Brevity is a great charm of eloquence.”
In that regard, I will keep my remarks brief. Obviously, what we propose here is incredibly straightforward. It would expand the scope from a financial year to a calendar year. I would not wish to imply that I do not necessarily have complete and utter confidence in the UK Government at all times, and that they might wish, perhaps, to stay away from and overcome any form of scrutiny by making some sort of payment at a certain point in time where the overlap is with a financial year. An amendment such as this, which is succinct and clear, would allow for everyone to be quite happy that where there is a need for the UK Government to put in place a financial assistance level of £100 million, irrespective of whether it is a financial year or a calendar year, Members are fully apprised of that spend.
Nadhim Zahawi
For the benefit of the Committee, I will begin with clause 30 stand part, which makes provision for financial assistance. I will then turn to amendment 24, and amendment 28 from the hon. Member for Aberdeen South.
The Government recognise that final orders, in exceptional cases—and I have to stress in exceptional cases, when we are administering taxpayers’ money—may bring about financial difficulty for the affected parties. This clause therefore gives the Secretary of State the legal authority to provide financial assistance to, or in relation to, entities in consequence of the making of a final order, to mitigate the impacts of a final order, for example. It might also be used where the consequence of a final order in itself might otherwise impact the country’s national security interests.
Hon. Members will know that such clauses are required to provide parliamentary authority for spending by Government in pursuit of policy objectives where no existing statutory authority for such expenditure already exists. I am confident that such assistance would be given only in exceptional circumstances when no alternative was available. For example, the Secretary of State could impose a final order blocking an acquisition of an entity that is an irreplaceable supplier to Government, subsequently putting the financial viability of the entity in doubt. In such a situation, the Secretary of State could provide financial assistance to the entity to ensure that the supplier could continue operating while an alternative buyer was found.
Such spending would of course be subject to the existing duty of managing public money—the hon. Member for Newcastle upon Tyne Central asked what checks and balances are in place—and compliant with any other legal obligations concerning the use of Government funds. To provide further explicit reassurance regarding the use of the power, subsection (1) specifies that any financial assistance may be given only with the consent of the Treasury.
The clause also covers reporting to the House when financial assistance is given under the clause. I will speak to that further when I turn to the amendments. I am sure that hon. Members will see the clause as necessary and appropriate, and have confidence that our Government, and future Governments, will have only limited, but sufficient, freedom to provide financial support under the regime as a result.
Amendment 24 would permit the Secretary of State to provide financial assistance in consequence of making an interim order, which was the hon. Lady’s point. As she will know, the Government take the management of our country’s finances very seriously, and such a power naturally requires appropriate safeguards to ensure that public money is spent appropriately. Restricting the power to final orders ensures that the Secretary of State may use it only to assist entities once a national security assessment has been completed and final remedies have been imposed—for example, to mitigate the impact of a final order on a company. It would not be appropriate to use the power to provide aid to an entity that is only temporarily affected by an interim order, which will last only for a period of review, likely to take 30 working days and, at most, 75.