Advanced Research and Invention Agency Bill

Public Bill Committee, 22 April 2021.

Derek Twigg (Labour, Halton)

Order. We are now sitting in public and the proceedings are being broadcast. We now continue our line-by-line consideration of the Bill. The selection and grouping list for today’s sitting is available in the room. As Members are aware, the selection and grouping list shows the order of debate on amendments, clauses, schedules and new clauses. The decisions on each follow the order of consideration, which is reflected in the way in which the amendments are marshalled on the amendment paper. A Member who has put their name to the leading amendment in the group is called first. Other Members are then free to catch my eye to speak on all or any of the amendments within the group. A Member may speak more than once in a single debate.

At the end of the debate on a group of amendments, new clauses and schedules, I shall call the Member who moved the leading amendment or new clause again. Before they sit down, they will need to indicate if they wish to withdraw the amendment or seek a decision. If any Member wishes to press any other amendments, including grouped new clauses and schedules, they need to let me know.

Clause 3 - Ambitious research, development and exploitation: tolerance to failure

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I beg to move amendment 19, in clause 3, page 2, line 20, at end insert—

“(2) On or before the date that an annual report is laid before Parliament in accordance with paragraph 15(4) of Schedule 1, the Secretary of State must lay before Parliament, and publish, a statement containing the required information about details of funding and ARIA’s tolerance to failure.

(3) In this section, the required information about ARIA’s tolerance to failure is—

(a) how this section has been interpreted by ARIA during the relevant financial year,

(b) the number and value of projects funded by ARIA which have been terminated or disbanded on the grounds of failure during the relevant financial year, and

(c) details of ARIA’s funding in the relevant financial year and its proportion of Government research and development expenditure.”.

This amendment would require the Secretary of State to make an annual statement regarding ARIA’s tolerance to failure.

It is a great pleasure to serve under your chairship, Mr Twigg. Before I speak to amendment 19, I want to say that that in the intervening time between the previous sitting and today, I have managed to break my foot, which was truly an achievement, given that all I was doing was running. If I am not as quick to rise as I would otherwise be, I hope you will be forgiving, Mr Twigg. The Minister said on Tuesday that the Advanced Research and Invention Agency might contribute to being able to “Beam me up, Scotty!” That would have been highly desirable as I tried to make my way into this place this morning. I am sure we wish ARIA luck in that. I am grateful to everyone for their indulgence as I deal with my new-found injury.

Amendment 19 would require that the Secretary of State makes an annual statement about ARIA’s tolerance to failure, in order to provide greater oversight and responsibility. It is very much in keeping with all the amendments that the Opposition have tabled. It is a constructive amendment that seeks to ensure that ARIA’s mission, when it has one, and its workings are understood by the public in general and that we have the right oversight to ensure that ARIA is not in any way subject to or tainted by the sleaze that is all too common and evident in the current Government’s procurement dealings with their mates. We believe that it is right that ARIA should be given operational independence from Government. We support the idea of specifying that it has a high tolerance to risk and failure, but the challenge is to establish what that tolerance is and to ensure that it is scrutinised properly and that there is public understanding of it.

We believe that ARIA should have a high-risk appetite, but we need greater clarity in order to understand how that appetite will be determined, calibrated and explained, and how Ministers will be accountable for ARIA’s failure and success with public money. That is critical and it was a theme of the evidence sessions that, if we are to maintain public support, we must be open and honest about ARIA’s tolerance to failure.

Daniel Zeichner (Labour, Cambridge)

My hon. Friend is making a very good introduction to today’s proceedings. I express my sympathy to her for having to stand up and sit down; I will not make her do it too often.

The evidence sessions brought some of this out, but does she agree that attitudes to failure in our country are very different from those in America in particular, which is where we are learning lessons from in establishing the agency? Given that, does she also agree that this is a particularly important amendment? The British attitude towards failures is not very tolerant; we do not necessarily view them as being positive. There is a risk here because unless we get this right, it will be difficult for those establishing the agency to be able to explain what they are doing to a wider audience.

Derek Twigg (Labour, Halton)

Ms Onwurah, if it becomes uncomfortable standing, please remain seated.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

Thank you, Mr Twigg. I will do that. I thank my hon. Friend the Member for Cambridge for expressing his sympathy. It is always a pleasure to give way to his interventions because he makes such excellent points. Indeed, his point about the differences in culture was brought out in the evidence session, particularly by Professor Glover from the Royal Society of Edinburgh, who said that

“the biggest challenge might be—this will help in engaging with citizens—being up front right at the very beginning that we expect failure, and that failure is part of the measure of success for an agency like ARIA, because if you were not taking any risks, you would not get any failure. The challenge is that, culturally in the UK, and quite differently, I think, from North America, we see failure through an emotional lens, not a scientific lens, whereas I think the opposite is the case in North America. We need to think about that. In a way, just talking about it and saying that that is the case makes it easier for people to understand that we need to fail in order to get the big rewards.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 61, Q58.]

That goes to my hon. Friend’s point and to the heart of this amendment. We have a cultural difference here in the UK. As someone who has worked in technology in the UK, France and the US, it is very noticeable to me that in the US, for example, a failure is a mark of experience from which one will go on to succeed better, whereas here a failure is intoned in negative headlines and comments.

I am sure the Minister will agree that in order for ARIA to have public support we need to change that culture. By seeking an annual statement on ARIA’s tolerance of failure, our amendment would make a significant contribution and help the public understand the importance of failure. When ARIA fails, there will be headlines saying that public money has been wasted. Certain newspapers, and perhaps even certain politicians, may say that. Would there not be support for both ARIA and the Secretary of State, whoever that may be, if the successes of this high-risk agency were mapped and placed in the context of the failures from which they directly stem?

Our amendment will provide details of the funding provided to high-risk research compared with public investment in wider science and research, so that the public can better understand the proportion of research funding going to this high-risk, high-reward investment. Without public buy-in, it will be very difficult to ensure long-term support for ARIA. Indeed, a consistent theme of the science community’s response to public funding is that it needs to be long term. The amendment would help to ensure that ARIA is not disabled, as it were, at the first failure. We recognise, and this was said in the evidence sessions, that there is a very high probability that ARIA will have a high number of failures, even if the level of failure is difficult to predict.

We want the Minister to be responsible for ARIA’s failures. Although the agency must act independently, this is public money, so there needs to be parliamentary and ministerial accountability for it. In particular, we do not want to see ARIA’s chief executive, whoever that may be, politically abandoned at the first failure. The amendment would help to ensure that accountability and wider understanding are there from the very beginning.

Dame Ottoline Leyser of UK Research and Innovation said:

“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.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 12, Q7.]

We understand that we cannot predict the levels of failure, but by measuring and reporting on them, and by ensuring that there is a wider public understanding of them, we can help to begin cultural change, as well as ensure the long-term support for high-risk, high-reward research, which ARIA so fundamentally needs.

Amanda Solloway (Conservative, Derby North)

May I start by saying what a pleasure it is to serve under your chairmanship, Mr Twigg? I wish my colleague the hon. Member for Newcastle upon Tyne Central well. In fact, I was just reflecting that if we were on the Star Trek Enterprise, we could have beamed her up and Dr McCoy could have sorted her out.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I thank the Minister for her very kind remarks. I probably should have said earlier that the NHS, and the Royal Free Hospital, which treated me, showed all the support, kindness and innovation that Bones in “Star Trek” would have done.

Derek Twigg (Labour, Halton)

We need to come back to the business now.

Amanda Solloway (Conservative, Derby North)

I add my appreciation for the NHS as well. I welcome the debate so far and look forward to continuing the discussion on this important Bill.

As part of the discussion on amendment 19, I will draw on two comments about failure in research that we heard in last week’s evidence sessions. The first is Bob Sorrell’s point that, compared with the US,

“there is a definite culture in the UK that failure is something that you hide under the carpet”.

He went on to say that ARIA

“is about establishing a culture in which we can accept failure and move on.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 76, Q79.]

My worry is that the amendment, which requires the publication of a statement containing information regarding ARIA’s tolerance to failure, just misses the point. Focusing on the number and value of project failures versus successes as an annual output risks creating the wrong mindset, and risks losing sight of the ambitious multi-year goals.

It is also the case that assessing the failure of programmes and projects on an annual basis might have the effect of limiting risk-taking over the longer term. A high-potential project might qualify as a failure after one year, even though it may deliver great results over the longer term.

The second comment was made by Professor Dame Ottoline Leyser, who questioned how we will know that ARIA has succeeded, and what one would expect the percentage failure to be. She said:

“There is also serendipity…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.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 12, Q7.]

Although ambitious research goals might not ultimately be achieved, ARIA will generate value from failures and should therefore embrace failure, and there is value in knowing what does not work, as well as in the successes.

ARIA will also be a great convenor of talent that would not otherwise be brought together. It is through the serendipity that value arises, which would not be captured by the information that the hon. Lady’s amendment would require. I therefore urge her to withdraw the amendment.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I thank the Minister for her remarks. We agree on the need for ARIA and for high-risk, high-reward research, but perhaps we differ on whether the publish share an understanding of that need. There are also, unfortunately, the realities of the environment in which we live: our culture does not have a high tolerance of failure. We truly believe that it is incumbent on us as parliamentarians and leaders to take what steps we can to help transform the situation and to not leave ARIA alone, so that we can all better understand the role that failure will play.

I am reluctant to detain the Committee. This was meant to be a constructive amendment, but if it has not met with the approval of the Minister, I am happy to beg to ask leave to withdraw the amendment.

Amanda Solloway (Conservative, Derby North)

It is absolutely vital that ARIA operates at the cutting edge of science and technology, and I have consistently heard from the scientific community that ARIA must tolerate the risk of failure to succeed. This idea gets to the very heart of what ARIA is about and on Second Reading there was also cross-party support for it, too.

ARIA will set highly ambitious research goals, which, if they are achieved, will bring about transformative scientific and technological advances, and those advances could also yield significant economic and social benefits. It follows that, as these goals are expected to be highly ambitious, it is likely that only a small fraction of them will be fully realised as originally intended, which will necessarily require a high tolerance of failure. For example, it might be that when some failures are judged over a longer time horizon, they will lead to unexpected successful outcomes. Clause 3 allows ARIA, in exercising its functions, to give particular weight to ambitious research, development and exploitation, which carry a high risk of failure.

I will just say a few words about failure. Although ambitious goals might not ultimately be achieved, ARIA will generate value from project failures. For example, a particular goal may not prove technologically viable, but in pursuing it scientists may happen across another promising technology or develop a new method of data collection. There is also value to be had in knowing what does not work, as well as in the successes.

ARIA is also expected to be a convener of high-calibre individuals and organisations from across the public and private sectors, which otherwise might not have been brought together. However, ARIA is not just about ambitious research goals. Clause 3 also allows ARIA to take greater risks in the form of the support it provides, including the use of innovation funding mechanisms. For example, clause 3 provides ARIA with the potential to take equity stakes in start-up ventures for the purpose of developing and exploiting scientific research.

That approach also extends to funding research and development that is untested and untried, and not necessarily peer-reviewed, which is a clear dividing line between ARIA and other public research and development funders, such as UK Research and Innovation. For ARIA to be a fruitful addition to the R&D funding landscape, it must be able to pursue truly ambitious targets and to support them in a novel and sometimes risky way. It must not be scared of failure, and clause 3 seeks to enable that mindset and approach.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

We recognise that clause 3 is essential to enabling and empowering ARIA and ARIA executives in tolerating failure. That is part of ARIA, and the clause has our support.

On the exercising of functions in the Bill, following our debate on an amendment debated in the previous sitting, the Minister kindly sent me a letter about how the Secretary of State might consider removing the chair from their position. I thank the Minister for her comments that set out the way in which the chair might be removed. I point out that our amendment would have given powers to remove an executive member and the Bill only gives powers to remove a non-executive member, which is the issue we were concerned about.

Clause 4 - Grants to ARIA from the Secretary of State

Amanda Solloway (Conservative, Derby North)

Clause 4 creates a power for the Secretary of State to fund ARIA. The Committee will be aware that the Government have committed to funding ARIA with £800 million up to financial year 2024-25. The clause allows the Secretary of State to attach conditions to the grants made to ARIA, which will be set out in the framework document and funding delegation letter, which are agreed between my Department and ARIA. The documents will be drafted and agreed with ARIA’s senior leadership team ahead of ARIA becoming operational in 2022.

The documents will complement the Bill, setting the broad parameters within which ARIA can operate and ensuring appropriate use of public money. It is a requirement for arm’s-length bodies of Government Departments to have these arrangements in place. I will be exceptionally mindful that we do not tie ARIA up in knots with endless Government approval processes, as that would run counter to what ARIA is about, but some parameters must be put in place to safeguard the use of public money.

For example, I have spoken about the importance of providing ARIA’s high-calibre programme managers with the freedom to experiment with a toolkit of funding methods in a way that best suits the programme goals and that does not always fund the usual suspects. As the policy statement sets out, that may include the use of inducement prizes, grant-prize hybrids and seed grants, taking equity stakes and so on. Some of ARIA’s activities could be subject to delegation levels, which limit the amount of a single type of activity, for example. The ability to attach conditions to grants paid by the Secretary of State to ARIA will set the appropriate framework within which ARIA can then freely determine its activities and funding choices without ministerial interference.

Clause 4 is as significant in what it does not say as in what it does. Unlike the corresponding clause in the Higher Education and Research Act 2017, clause 4 does not include a direction-making power regarding the allocation or expenditure of ARIA. This is important because the funding decision-making power should rest with ARIA, not Ministers. Clause 4, in allowing ARIA to be funded, is essential to its functioning and should stand part of the Bill.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

As the Minister said, clause 4 enables the Secretary of State to make grants to ARIA. It is clearly essential—what is the point of an agency that is not able to receive funds? While we do not oppose the clause, however, we are concerned about the general tone and language in the discussion of the way in which grants and funding will be made available to ARIA.

The Minister talked about not burdening ARIA with bureaucracy. At this time, there are a number of investigations into accusations of sleaze and the inappropriate ways that funding has been made available to the mates of different Secretaries of State. Funding and procurement have been carried on through WhatsApp groups, rather than through the normal procurement procedures, for example. I believe that the clause would have benefited from setting out more robustly the importance of the procedures, which are to be agreed, as well as the importance of what the Minister calls “bureaucracy” in enabling and ensuring trust, which is so very important for this agency.

In the debate on Tuesday, the Minister talked about a “different model of trust” for ARIA. I put on the record that the Opposition believe strongly that it is not the model of trust that is wrong, but the way in which it is being followed or implemented by this Government. We believe that the current model of trust needs to be supported in relation to ARIA and in all funding and procurement decisions.

Clause 5 - National Security Directions

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I beg to move amendment 20, in clause 5, page 2, line 33, at end insert—

“(4) The Secretary of State must, in relation to each financial year—

(a) prepare a report in accordance with this section, and

(b) provide a copy of it to the Intelligence and Security Committee of Parliament as soon as is practicable after the end of that period.

(5) Each report must provide details of—

(a) any directions made under this section in the relevant financial year, and

(b) the nature of the national risks posed which triggered the making of the directions.”

This amendment would require the Secretary of State to prepare and provide to the ISC an annual report on any directions made under this section.

It is a great pleasure to move this amendment, which proposes an essential addition to the Bill. It would require the Secretary of State to prepare and provide to the Intelligence and Security Committee of Parliament an annual report on any direction made under the clause. I remind the Committee that clause 5 states that

“(1) The Secretary of State may give ARIA directions as to the exercise of its functions if the Secretary of State considers it necessary or expedient in the interests of national security. (2) The power to give directions under this section includes power to vary or revoke a direction. (3) ARIA must comply with a direction given under this section.”

Duncan Baker (Conservative, North Norfolk)

I thank the hon. Lady for giving way. I am intrigued by the amendment, because on the one hand, the Opposition were very keen with amendment 15 that ARIA’s mission be to drive the net zero agenda; on the other hand, this amendment would require the Secretary of State to report to the ISC. Can she explain where she thinks a report on the potential for net zero to the ISC would be necessary and what it would achieve?

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I thank the hon. Gentleman for his intervention, which I hope does not reflect a lack of understanding of the ways in which science research and our national interest work. On national security, a direction could be given to ARIA not to work in nuclear energy with a Government whose interests did not align with our own, for example. That is quite a relevant example, because we know that, rather than investing in it themselves—even though interest rates are so low at the moment—the Government have welcomed, and even encouraged, investment in our nuclear energy by the Chinese. Some kind of direction might well be given on that basis. There are many ways in which climate change is essential to our national security, so I do not think that example was very well chosen.

More generally, if the hon. Member is asking how trade-offs between national security and other priorities should be made, which is a very important question, we have already said that we believe in national security, and national security should always be the priority. However, when such a direction is made for reasons of national security, which we support, the fact is that we will not know why it was made. Perhaps that is right, because if it is an issue of national security, those concerns should not be shared publicly; none the less, somebody needs to scrutinise them. I hope everybody on this Committee will agree that someone in Parliament should be scrutinising decisions on national security, particularly when those decisions are taken by the Secretary of State for Business, Energy and Industrial Strategy. As I have already said, neither the Department nor the Secretary of State has long experience of making national security decisions.

Daniel Zeichner (Labour, Cambridge)

I fully take the point made by the hon. Member for North Norfolk, but we Opposition Members have a degree of prescience in being able to predict the way that votes in this Committee might go. We anticipated that the Government might not accept our suggestion about giving ARIA this mission. Does not that the lack of a mission create this further problem? If we had had that clear mission around climate, this would be far less of an issue.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

Once again, my hon. Friend raises an excellent point, and indeed he brings together the themes of our amendments. He is right to say that if ARIA had a clear mission, there would be better understanding of the kinds of decisions and trade-offs that might well need to be made, and we could have a much better informed discussion around that. However, the fact is that we have neither a mission for ARIA, nor any opportunity to scrutinise the national security directives that might be made in the interests of addressing climate change, but also might be made in the interests of ensuring that we have oil drilling rights, or that we continue to fund minerals extraction around the world in order to support other research objectives. It is clear to us that we need to have this scrutiny.

As I indicated, there have been a number of debates on Intelligence and Security Committee scrutiny of other Departments, including in relation to the National Security and Investment Bill and the Telecommunications (Security) Bill. In those cases, despite that Committee being keen to scrutinise national security decisions, the Government have shown a great reluctance to allow parliamentary scrutiny of issues of national security. Some believe—I am not one of those cynical people—that this is because the Government are not happy with Parliament’s choice of Chair of the ISC. I am loath to believe that the Government would be so petty when it comes to such an important matter as national security, so I hope the Minister will clarify how we will have appropriate scrutiny of national security decisions made by the Secretary of State, as set out in this Bill, and why the ISC is not the right vehicle for that.

I will finish with two brief quotes in support of the amendment. In the National Security and Investment Bill Committee, we had the great privilege of taking evidence from Richard Dearlove, former head of the British Secret Intelligence Service.

He said:

“My view would be that the annual report has as much transparency as possible, but you are probably going to require a secret annexe from time to time. It is a bit like the reports of the Intelligence and Security Committee, which I dealt with frequently as chief. They and we were keen that they should publish their reports, but there comes a point where it is not in our national interest that some of this stuff is put in the public domain.”

––[Official Report, National Security and Investment Public Bill Committee, 24 November 2020; c. 21, Q23.]

That is the case here as well.

My right hon. Friend the Member for North Durham (Mr Jones) has said:

“I do not want to give the impression that the ISC is looking for work, because I have been a member for a number of years and we are busy with a lot of inquiries—I have three or four hours’ reading every week looking through reports from the agencies. However, it is important that the ISC can at least look at the intelligence that lies behind decisions.”––[Official Report, Telecommunications (Security) Public Bill Committee, 21 January 2021; c. 143.]

That is all that we are seeking to achieve through this amendment.

Amanda Solloway (Conservative, Derby North)

Amendment 20 would require the Secretary of State to provide a report to the Intelligence and Security Committee at the end of each financial year detailing directions made by the Secretary of State to ARIA in the interests of national security and the national security risks that triggered the directions.

The Government take very seriously their duty to protect the national security of the country and its citizens. The ISC plays a valuable role in providing scrutiny and expertise in respect of its functions, as set out in the Justice and Security Act 2013 and the statutory memorandum of understanding. However, that remit does not extend to oversight of BEIS work.

I do not see any reason why such a report should be necessary. No such arrangements exist with UKRI through the Higher Education and Research Act 2017. Instead, the organisation has robust national security arrangements in place to ensure that appropriate action is taken. Similar arrangements will be put in place as ARIA becomes operational, and we are speaking with the relevant parts of Government to make sure that that is the case.

The clause reflects the fact that, while ARIA will be free from ministerial interference, we will always act on our responsibility to protect our national security. Information made known to the Secretary of State will be fed into the wider work of the Government to protect UK R&D from national security risks as appropriate. I see no case for ARIA to report on that to the ISC. I urge the hon. Lady to withdraw her amendment.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I thank the Minister for her comments, but she has not responded to the underlying and constructive aim of the amendment, which is to ensure that the ISC has sight of intelligence and security decisions.

She makes a comparison with UKRI. This agency is about high-risk, high-reward research, which we are told will be transformative. During many of our National Security and Investment Bill Committee debates, the point was raised that the nature of national security threats is changing and, as we heard numerous times in evidence, has moved, and is moving, very much into the technological domain. The question whether or not we play a leading role in artificial intelligence, for example, is an issue of national security, as are our cyber defences, which I am sure any chief executive of ARIA would be keen to look at. The agency needs the kind of intelligence scrutiny that only the Intelligence and Security Committee can give. On that basis, I would like to press the amendment to a vote.

Amanda Solloway (Conservative, Derby North)

Clause 5 creates a power for the Secretary of State to give directions to ARIA regarding the exercising of its functions that are considered necessary or expedient in the interests of national security. It is right that ARIA is free from too much ministerial oversight. However, when it comes to questions of national security, Ministers may intervene to prevent risk to the UK’s national security interests.

The necessary and expedient threshold of clause 5 offers adequate protection and limits the possibility of ministerial overreach, owing to a more broadly defined power. The direction-making power with which ARIA must comply can be general—for example, a direction not to conduct research in conjunction with partners from a particular jurisdiction that poses a threat to the United Kingdom’s national security—or specific: for example, a direction to terminate a specific contract.

Subsection (2) states that the directions include the

“power to vary or revoke”,

which is to say that directions can be altered or withdrawn depending on how the national security risk develops or subsides.

I would like to take this opportunity to assure the Committee that my team are working hard to ensure that ARIA is set up with national security risks front of mind. That ranges from reducing the risk of cyber-attacks, to ensuring that ARIA is plugged to the appropriate Whitehall national security networks. This work complements a direct-making power in the Bill.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

As I have said, Labour is the party of national security.

Jerome Mayhew (Conservative, Broadland)

The hon. Lady has said on a number of occasions that Labour is the party of national security. I would be very interested to hear her views about what date it became the party of national security. If my memory serves me right, Sir Richard Dearlove, to whom the hon. Lady has referred approvingly, said that the former leader of the Labour party, the right hon. Member for Islington North (Jeremy Corbyn), was a personal risk to national security, particularly if he ever got the keys to No. 10. He said:

“Do not even think of handing this politician the keys to No10.”

If that was the Labour party’s approach under his leadership, at what stage did it change its mind about national security?

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I am really disappointed in the hon. Gentleman for trying to make our national security an issue of party politics, and in particular for quoting a supposed critique of politicians by our intelligence service from previous years. I do not think that such comments have a place in this debate. We have elected leaders. I could go into a long list of quotations about our current Prime Minister and the concerns that he raises in many people’s minds, including from when he was Foreign Secretary.

Derek Twigg (Labour, Halton)

I think we should stick to the business at hand.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I recognise that, Mr Twigg, but let us be clear. When I say that we are the party of national security, it is also what the shadow Secretary of State for Defence and my party leader say. That is a statement, and I really do not think it was appropriate of the hon. Member for Broadland to try to undermine the unity on both sides of the House with regard to the importance of national security. I fear that that is what he was trying to do.

As I was saying, Labour is the party of national security and believes strongly in the importance of the Secretary of State’s ability to give directions informed by national security. However, I feel that the Minister has yet to set out how those directions will be scrutinised. That remains a significant concern for the Opposition if we are to be sure that those directions are really driven by our national security interests and if we are to give the scrutiny that ensures continuing public confidence. However, given the importance of national security, we will clearly not be opposing clause 5.

Clause 6 - Information

Kirsty Blackman (Scottish National Party, Aberdeen North)

I beg to move amendment 27, in clause 6, page 2, line 38, at end insert—

“(2) ARIA must provide relevant Select Committees of the House of Commons and the House of Lords with such information as the Select Committees may request.”

This amendment is intended to allow relevant parliamentary Select Committees to access information in order to scrutinise the value for money provided by ARIA.

I will not say a huge amount about the amendment, which pretty much speaks for itself. As ARIA is not subject to freedom of information, I think it incredibly important that there should be a commitment from the Minister that ARIA will provide information to Select Committees if they request it. If the Minister will stand up and say that ARIA will of course provide information to Select Committees, I will withdraw my amendment post haste.

Amanda Solloway (Conservative, Derby North)

Amendment 27 would require ARIA to provide information requested by relevant Select Committees in both Houses. Sufficient measures are already in place to ensure that Select Committees have access to information that would allow them to scrutinise the work of Government Departments and public bodies.

I agree that Select Committees play an important role in examining the work of arm’s length bodies, and I am grateful for the interest and insight that the Science and Technology Committees in both Houses have had into ARIA so far. However, the Osmotherly rules provide guidance for how Government Departments and public bodies should interact with Select Committees. They are clear that the members of arm’s length bodies should be as helpful as possible in providing accurate, truthful and full information when giving evidence, taking care to ensure that no information is withheld that would not be exempted if a parallel request were made to the body under the Freedom of Information Act 2000. I believe that that is sufficient to ensure co-operation and a constructive relationship between ARIA and relevant Select Committees, as it is for other bodies such as UKRI.

On scrutiny of ARIA’s value for money, as was set out in discussions on schedule 1 the National Audit Office can conduct value-for-money assessment in the usual way. I wanted to address a comment made by the hon. Member for Newcastle upon Tyne Central on Tuesday about the role of the National Audit Office in scrutinising the work of ARIA. I do not agree that the safeguard is very limited; in fact, value-for-money assessments are rigorous and robust, and provide the basis for the Public Accounts Committee’s hearings and reports. I therefore believe that the right arrangements are in place for Select Committees to scrutinise the work of ARIA. That is in line with standard practice. I hope that the hon. Member for Aberdeen North will withdraw her amendment.

Kirsty Blackman (Scottish National Party, Aberdeen North)

I thank the Minister for her statement. She has made it clear that she expects ARIA to comply and not withhold information necessary for Select Committees. I beg to ask leave to withdraw the amendment.

Amanda Solloway (Conservative, Derby North)

Clause 6 focuses on the Secretary of State’s information rights with respect to ARIA. The Secretary of State may request information relating to his or her functions—for example, information required to determine the Government’s funding of ARIA, to make national security directions, or for the appointment or removal of board members. It is important that the Secretary of State has the information that he or she requires to perform relevant functions.

The information rights remain limited compared with the other arm’s length bodies of Government Departments. The Bill does not allow the Secretary of State to request ARIA’s strategy or delivery plan, for example, as the Higher Education and Research Act 2017 does with respect to UKRI. A limited set of information rights is an important feature of maintaining ARIA’s independence from Government, and it also helps the body to be an agile organisation that can focus on high-risk, high-reward research.

I remind the Committee that this is not the extent of the information provided by ARIA. As we have discussed with respect to schedule 1, for example, ARIA must also send a copy of its statement of accounts and annual report to the Secretary of State, to be laid before Parliament. It is also in the gift of the Secretary of State to oblige ARIA to make other types of information available—via the framework document, for example—as a condition of funding under clause 4. Clearly, it is important to strike a balance between transparency in the use of public moneys and not operationally overburdening a small organisation.

The clause also sets out stipulations regarding the handling of information. Disclosure of information by ARIA under the clause does not breach any obligation of confidence owed by ARIA, and does not, for example, require a disclosure of information should it contravene data protection legislation. I hope that hon. Members agree that the information rights set out in the clause are important to allow the Secretary of State to carry out their functions effectively.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I thank the Minister for summarising clause 6. The theme of many of our amendments has been the importance of communication, information, understanding ARIA and its mission, and accountability, so we support the requirement for information to be provided by ARIA to the Secretary of State as appropriate. The duties in the clause seem entirely appropriate, but I have a couple of concerns that I hope the Minister will either respond to or perhaps write to me about.

Clause 6(3) states:

“A disclosure of information required under this section does not breach—

(a) any obligation of confidence owed by ARIA, or

(b) any other restriction on the disclosure of information (however imposed).

Perhaps this is something that I should already understand, but I am not clear whether commercial confidentiality would come under subsection (3). If ARIA were funding, as I hope it will, a high-risk, high-reward and sensitive project, would that be excluded on the grounds of commercial confidentiality? There is no requirement for the information that ARIA provides to the Secretary of State to be published or shared more broadly, so I would hope that commercially confidential information could be shared.

Subsection (4) states:

“This section does not require a disclosure of information if the disclosure would contravene the data protection legislation.”

Clearly, if disclosure contravened data protection legislation, it would be illegal, so I am somewhat confused about a requirement on ARIA not to break existing laws. I am happy for the Minister to write to me to say under what circumstances there might be a need to share information, the disclosure of which would contravene data protection legislation. I can only think that it might involve personal information, which suggests that the Secretary of State would ask for personal information. Earlier, we discussed the gender pay gap and disclosing information on that. Did the Minister think that that might contravene data protection legislation if, for example, only women worked for ARIA?

Those are my concerns, and I would be obliged to the Minister if she wrote to me about those questions, but we will not oppose the clause standing part.

Clause 7 - Transfer schemes

Amanda Solloway (Conservative, Derby North)

The clause introduces schedule 2, which contains provisions about schemes for transfer of staff, property, rights and liabilities to ARIA. It is very straightforward.

Schedule 2 - Transfer schemes

Amanda Solloway (Conservative, Derby North)

The schedule allows the Secretary of State to make one or more property or staff transfer schemes to ARIA. The permitted transferors are the Secretary of State or UKRI. The supplementary powers are standard and mirror those in, for example, the Higher Education and Research Act 2017. The principal purpose of clause 7 and schedule 2 is to ensure that important assets and personnel can be transferred from BEIS or, if required, UKRI, as ARIA is set up. For example, the chief executive officer and chair may be temporarily contracted to BEIS before ARIA becomes operational. It is administratively convenient to be able to use the power to transfer those staff to ARIA. Paragraph (4) provides that

“A staff transfer scheme may make provision which is the same as or similar to the TUPE regulations.”

That means that employers’ rights of transfer remain the same.

Alternatively, in the ARIA set-up phase, contracts may be entered into for an office lease or seed funding, which could be transferred to ARIA without contract novation. That means that the benefit and burden of the contract can be assigned to ARIA without having to obtain a third-party agreement. It is an important provision that may be needed to make ARIA operational.

Clause 8 - Power to dissolve ARIA

Kirsty Blackman (Scottish National Party, Aberdeen North)

I beg to move amendment 38, in clause 8, page 3, line 21, at end insert—

“unless they are made under subsection (7)”.

This amendment ensures that ARIA cannot use its significant resources to fund weapon development.

Derek Twigg (Labour, Halton)

With this it will be convenient to discuss amendment 37, in clause 8, page 4, line 4, at end insert—

“(7) The Secretary of State must immediately dissolve ARIA if it uses any of its resources to support weapon development.”.

This amendment ensures that ARIA cannot use its significant resources to fund weapon development.

Kirsty Blackman (Scottish National Party, Aberdeen North)

It is important to consider the amendments together as one is consequential on the other. They would ensure that ARIA cannot use its significant resources to fund weapon development, and would provide the mechanism of the Secretary of State immediately dissolving ARIA were it to use any of its resources to support weapon development as an addition to the clause on dissolving ARIA. It is no secret that we in the SNP are not particularly keen to continue to be part of either the UK or the UK Parliament, but while we are contributing to ARIA and while some of our tax money is going to ARIA—while this money is being spent in our name—we do not want it to be spent on weapons or the development of weapons.

We have been very clear that we will not have nuclear weapons in an independent Scotland. We stand in opposition to them. For that reason, like many people in my party, I am a long-time member of the Scottish Campaign for Nuclear Disarmament. The decisions the UK Government have taken on the renewal of those weapons and on spending money on nuclear weapons have been some of the very worst things that they have done in the name of the people of the UK. I do not want to sit on a Bill Committee that creates an organisation which has no set purpose, but which could entirely fund weapon development with the money that it is allocated. It could entirely fund research into technologies with which I fundamentally disagree.

Stephen Metcalfe (Conservative, South Basildon and East Thurrock)

I completely understand the hon. Lady’s principled position on this issue. Does she not accept that, if the amendments were to pass, they would hamper the ability of the Secretary of State to activate clause 5 and direct ARIA towards working in our national security in a time of crisis? I fully accept that it would not be a good idea for ARIA to set its sights on developing new weapons, but we should not take its ability to do that away when we as nation may need it.

Kirsty Blackman (Scottish National Party, Aberdeen North)

I thank the hon. Member for his characteristically sensible intervention. However, I feel so strongly about this that I think it is important that ARIA is excluded from doing that. There are other means that the UK can use to fund weapon development. I do not think ARIA should be one of them.

We are particularly concerned because of the lack of transparency and the issues that there have been around the use of weapons and the use of UK resources on weapons. We have said that we want the UK to immediately halt all military support and arms sales to regimes that are guilty of violations of human rights and international humanitarian law. The UK Government have not done so. Our concerns are well founded, which is why we have tabled what is quite an extreme amendment in comparison with others we have seen.

This is a subject of much moral debate. We will not ever accept the use of lethal autonomous weapons. Our concern is that, as they are on the cutting edge of technology, ARIA may consider looking at those weapons. I do not want that to be done in the name of the people I represent; they certainly do not want it done in their name.

The Minister has told us about the memorandum of understanding that will be in place between BEIS and ARIA. We have already touched on the issues of ethical investments that ARIA may or may not make. If the Minister was willing to make a statement about the ethical nature of investments ARIA will make and the direction that may be put into that MOU—we do not have as much information as we would like on the MOU—that might give us some comfort on the direction that ARIA may take. The lack of a mission for ARIA means that it is open to the possibility that this situation could arise, and that is a big concern of ours.

Amanda Solloway (Conservative, Derby North)

Amendments 37 and 38 challenge so-called dual-use research—research that is intended for benefit, but might be misapplied by a third party to do harm. The ways in which that could be done will not always be easy to predict, and given the possible benefits of the intended civilian application, it would not be right to close the door to any research that might fall into that category.

I assure the hon. Member that, alongside the Bill, my team is working hard to ensure that ARIA is set up with such risks at the front of people’s mind, including regarding how ARIA is equipped to perform due diligence on potential research partners to minimise risk. It would not be right to dissolve ARIA immediately if it had taken all necessary precautions to minimise the inappropriate use of its research, which would be the effect of the amendments.

Clause 5 will allow the Secretary of State to give directions to ARIA relating to the exercise of its functions when that is necessary or expedient in the interests of national security. That would apply, for example, if ARIA worked with a researcher in another jurisdiction on the development of a technology that could be used by another country for nefarious ends such as weapons development. In that event, the Secretary of State could direct ARIA to cease the contract or research. Under schedule 1, the Secretary of State is able to remove members from office on national security grounds.

I emphasise that while we have learned from DARPA in creating ARIA, ARIA differs from DARPA in several ways, principally because it is not set up with a focus on defence or weapons development. I urge the hon. Member to withdraw the amendment.

Kirsty Blackman (Scottish National Party, Aberdeen North)

I thank the Minister for her statement. I listened to it closely, and it did give some comfort about the possible direction of ARIA. Given what she said, I do not intend to press the amendment to a Division, but we will keep a close eye on what happens. When we scrutinise ARIA, we will examine whether it uses significant portions, or indeed any, of its resources to fund weapons development, especially in countries where there is concern about use for nefarious purposes—not that weapons can generally be used for a particularly good purposes—and with regard to lethal autonomous weapons. I beg to ask leave to withdraw the amendment.

Amanda Solloway (Conservative, Derby North)

Clause 8 allows the Secretary of State to make provision by regulation for the dissolution of ARIA

“ten years after the date on which this Act is passed.”

Before making such regulations, the Secretary of State will be required to consult ARIA and other persons he or she considers appropriate, who could include the recipients of ARIA funding or other experts in the field. That will ensure that those leading ARIA at the time will have the opportunity to contribute to the decision. As is set out in clause 11, regulations under clause 8 are subject to the affirmative procedure in each House of Parliament.

We recognise that ARIA is a new body that will take time to get up to scale and demonstrate success. Its exclusive focus on high-risk, programme-led research requires patience, so it should not be evaluated on short -term outcomes. The Commons Science and Technology Committee and the R&D sector at large have welcomed the long-term, patient approach that has been set out for ARIA, and the dissolution grace period is designed to take account of that. There is no obligation to exercise the dissolution power after 10 years, and the Government are, of course, optimistic that clause 8 will not be needed. However, we recognise that ARIA represents a new way of funding research so, as a matter of good administration, we have provided for a power to dissolve ARIA in the event that it is not successful.

Clause 9 - Consequential amendments

Amanda Solloway (Conservative, Derby North)

Clause 9 introduces consequential amendments to schedule 3, which we will go on to discuss. It has no other effect, and I hope that hon. Members agree with its necessity.

Schedule 3 - Consequential amendments

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I beg to move amendment 21, in schedule 3, page 13, line 37, leave out paragraph 11.

This amendment would remove ARIA’s exemption from the Public Contracts Regulations 2015.

Amendment 21, which stands in my name and those of my hon. Friends, is a key amendment that will ensure that ARIA merits and deserves the confidence of the public at this time of great debate about sleaze and cronyism. The amendment would remove ARIA’s exemption from the Public Contracts Regulations 2015. As drafted, paragraph 11 of schedule 3 excludes ARIA from the definition of a “contracting authority” under the 2015 regulations; as a consequence, ARIA is exempted from the usual public procurement rules. The Opposition do not understand why ARIA’s exemption from those rules is justified. Indeed, we are truly concerned that exempting it in this way opens a side door to sleaze in science.

Dawn Butler (Labour, Brent Central)

My hon. Friend is absolutely correct in her presentation: we fail to understand why ARIA is exempt from the Public Contracts Regulations 2015. The Government are embroiled in the PPE and VIP lane scandals. It has been exposed that companies were put into the VIP lane by mistake—for example, PestFix was awarded £32 million. For ARIA to be exempted from any regulation risks this exploding to a larger extent with £800 million of public funds.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I thank my hon. Friend for her intervention, and she is absolutely right. It would be a cause for concern at any time to exempt an agency of this importance and public funding from procurement rules, but it is particularly worrying when the Government are already embroiled in a cronyism and procurement scandal.

In support of the point that my hon. Friend made, Transparency International—a well-known and reputable organisation—found that, of 1,000 procurement contracts signed during the pandemic and totalling £18 billion of public money, one in five had one or more of the red flags commonly associated with corruption. Is that not a figure of which we should be absolutely ashamed? That has happened within the existing rules, and the Minister proposes to exempt ARIA from those rules.

In her letter to the Chair of the Science and Technology Committee on 2 March 2021, the Minister explained that the Bill will

“provide ARIA with an exemption from Public Contracts Regulations so that it can procure services, equipment and works relating to its research goals at speed, in a similar way to a private sector organisation.”

We have several concerns about that explanation. What assessment has the Minister made of the ways in which private sector organisations procure services? Has she compared this with the success or otherwise of Government procurement processes for PPE during the covid crisis? Is she saying that private sector procurement is more effective, more honest and fairer; or is it simply quicker?

What the exemption is for is also a concern. The Minister implies that it is for services, equipment and works relating to ARIA’s research goals. Is it for equipment, services and works, or is it actually for research? Will ARIA be considered to be procuring research? We had been led to understand that it would a funder of research and development, not a body conducting its own research in a lab, so what actual procurement needs will it have, beyond office space and office equipment? There are months and months before ARIA is operational, so what will it need to procure at speed, or is the intention to enable ARIA to procure research without oversight? What is the justification for not having appropriate oversight for its procurement of research?

We absolutely understand, and support, providing ARIA with additional flexibility in terms of its funding activity, but the benefit of exempting ARIA’s procurement of goods and services is not clear. We suggest that ARIA’s procurement needs are not different from those of other Government funding bodies. We hope that the Minister will explain why that is the case. In terms of safeguards, the Government are proposing that in a future framework agreement BEIS will require ARIA to appoint an independent internal auditor to report its procurement activities. It is therefore going to have an internal bureaucracy, as the Minister puts it, rather than be subject to the procurement rules that have been developed, debated and put in place over time.

Will that framework agreement set out procurement rules for ARIA? Otherwise, what is the auditing requiring compliance with? How can we audit if there are no rules to benchmark against? Without safeguards, we have significant concerns about the risk of sleaze. What is to prevent ARIA from buying its office equipment from a mate of the Secretary of State or of the chief executive? Can the Minister say which of the regulations she objects to? The Public Contracts Regulations 2015, for example, state that a person awarded a public contract must

“be linked to the subject-matter of the contract.”

Does she object to that? What will prevent ARIA from operating effectively?

In the evidence sessions, we heard a number of times, including from Professor Glover, that there is a need for openness and transparency. David Cleevely said:

“The more open you are about what you are doing, the less easy it is to hide the fact that you have let particular contracts and so on, so there ought to be a mechanism within the governance structure of the agency to do that.”—[Official Report, Advanced Research and Invention Public Bill Committee, 14 April 2021; c. 75, Q78.]

The Minister is removing such mechanisms as there already are. We heard that having rules and regulations in place was part of the culture of DARPA, on which this agency is supposedly based, with one of its directors, Dr Highnam, saying:

“Honour in public service is top of the list.”—[Official Report, Advanced Research and Invention Public Bill Committee, 14 April 2021; c. 39, Q32.]

Stephen Metcalfe (Conservative, South Basildon and East Thurrock)

Did we not also hear from Director Highnam how DARPA benefits from other transaction authority and the flexibility that comes outside of the standard Government procurement process?

Chi Onwurah (Labour, Newcastle upon Tyne Central)

We heard from Dr Highnam repeatedly of the importance of rules and regulations. He spoke specifically of a culture in which the process was not considered bureaucracy and a barrier but part of enabling DARPA to meet its obligations. I say to the hon. Member for South Basildon and East Thurrock, for whom I have a great deal of respect, that the flexibility that DARPA benefits from in being able to procure research is not outside the United States procurement requirements. Dr Highnam made it clear that they benefit from providing extraordinary results while being open and following the highest standards in public service.

I hope that the Minister will agree to leave ARIA with public procurement rules that provide some measure of trust, particularly in the middle of the current cronyism scandal.

Angela Richardson (Conservative, Guildford)

It is a pleasure to serve under your chairmanship, Mr Twigg.

If procurement rules for the traditional R&D granting used by UKRI do not apply, we need to understand that ARIA, like DARPA, will work differently. There will be some granting, but others will be commissioned and contracted to conduct research. If ARIA often procures R&D services, they could be within the scope of procurement regulations, so it is important to have the exemption. My hon. Friend the Member for South Basildon and East Thurrock made a good point when he referenced the evidence that DARPA deputy director Dr Highnam gave last Wednesday about how DARPA benefits from other transaction authority and has flexibility outside the standard Government-contracting standards. Those flexibilities exist in the US and it is important that ARIA has a similar flexibility.

The exemption places freedom in the hands of the leaders and programme managers. In that model, those programme managers will be recruited to run ARIA as an independent body. ARIA’s procurement will be at arm’s length from Government and Ministers.

Importantly, in paragraph (14) to schedule 1, the Government have made a commitment to ensure that ARIA internally audits its procurement activities. The upfront flexibility that the exemption affords will be balanced by reporting at a later point. It is clear that the need for agility does not negate ARIA’s accountability.

Stephen Flynn (Scottish National Party, Aberdeen South)

I will briefly highlight our view of amendments 21 and 22. We are considering perhaps some of the daftest things that the UK Government have proposed in my short time in the House. I cannot quite believe that we are in a situation whereby public contracts and freedom of information are simply brushed to one side by a Government. I am interested by the argument that we should follow DARPA’s example in procurement practices, but not when it comes to having a mission. The Government seem to have picked the worse of the two options, and that is bizarre.

The shadow Minister rightly covered the matter in detail. Last week, one of the expert witnesses said that transparency fosters trust. Why would any Government not want the trust of Parliament and the people?

Amanda Solloway (Conservative, Derby North)

The amendment would omit the extension of obligations on contracting authorities for the purposes of public contracts regulation that the Bill affords ARIA. I will take the opportunity to explain to hon. Members why the extension is so important.

I will make three points. First, ARIA is expected to commission and contract others to conduct research in pursuit of its ambitious goals. ARIA will often be procuring those services, and that commissioning and contracting is a fundamentally different way of funding R&D from traditional grant-making, where procurement rules do not apply.

Secondly, that way of funding research is core to DARPA’s approach, the successful US model we have learned from in designing ARIA. There has been some confusion on that point. As Dr Peter Highnam made clear in his evidence to the Committee, DARPA benefits from what he described as “other transaction authority”, which offers flexibility outside standard US Government contracting standards. For ARIA to take the innovative new funding approach that is so fundamental to its objectives, I believe that it will benefit from similar flexibilities here. For ARIA, the public procurement rules could prevent a critical investment being made at speed or at all. We will therefore provide that exemption so that ARIA may procure services, equipment and works relating to its research goals at speed, in a similar way to a private sector organisation.

Finally, there has been some discussion in Committee about trust in Government. I will therefore stress that that exemption places freedom into the hands of ARIA and the leaders and programme managers who will be recruited to run it as an independent body. That independence, as I have been clear throughout, is essential.

Stephen Flynn (Scottish National Party, Aberdeen South)

I am very much in favour of freedom, for want of a better phrase, but does the Minister not understand the concerns that the public will have about transparency on such a key amount of public money? That is something the Government have an awful track record on at this moment in time. Does she not understand the public’s view?

Amanda Solloway (Conservative, Derby North)

I make reference to all the methods that we have in place to ensure that we are transparent in the running of ARIA. As I have been clear about throughout, independence is an essential feature of ARIA. Its procurement will therefore be at arm’s length from Government and Ministers. I hope that this debate has demonstrated the necessity of such an arrangement and that the hon. Member for Newcastle upon Tyne Central will withdraw her amendment.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I thank the Minister for her response, but I do not feel reassured and I do not think that the public will feel reassured. I will therefore press the amendment to a vote.

(Afternoon)

Schedule 3 - Consequential amendments

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I beg to move amendment 22, in schedule 3, page 14, line 3, at end insert—

“Freedom of Information Act 2000

(12) In Part VI of Schedule 1 to the Freedom of Information Act 2000 (“Other public bodies and offices: general”), at the appropriate place insert “The Advanced Research and Invention Agency”.”.

This amendment would make ARIA subject to the Freedom of Information Act 2000.

It is a great pleasure to serve under your chairship, Mr Hollobone. Amendment 22 is critical and very simple. It would make the Advanced Research and Invention Agency subject to the Freedom of Information Act 2000.

The amendment forms part of a sequence of amendments that we have tabled, which seek to deliver greater oversight of ARIA and greater accountability, in order to increase public confidence, particularly at this time when we are in the midst of a cronyism scandal. We do not believe that ARIA’s blanket exemption from the Freedom of Information Act regime can be justified.

I make the point that £800 million of public money will be spent by ARIA. It is a new agency whose aims and ambitions we all support, but public trust will be vital to its long-term success. In our evidence sessions, we heard from Government witnesses such as Professor Philip Bond. Dominic Cummings, the self-proclaimed architect of ARIA, gave similar evidence to the Science and Technology Committee, which celebrated trusting the leaders of ARIA with £800 million of taxpayers’ money and no purpose. The Labour party believe that this could be a side door to sleaze in science.

We do not want to bureaucratise ARIA. We acknowledge that a hands-off approach is integral to its success. We simply want ARIA to be accountable to the public via the Freedom of Information Act.

On Second Reading, the hon. Member for Newcastle-under-Lyme stated that,

“UK Research and Innovation receives about 300 FOI requests a year”.—[Official Report, 23 March 2021; Vol. 691, c. 830.]

I have since received an answer from the Science Minister to a parliamentary question, which states that, for example, UK Research and Innovation received 371 freedom of information requests in 2020 and has answered 100 in the first three months of 2021. I asked about the costs to UKRI of complying with those requests, but it does not keep track of costs, which implies that they are not significant.

ARIA will be spending between 1% and 2% of the funding that UKRI is spending. If UKRI receives about 300 requests per year, we might calculate, say, that if freedom of information requests were related to the amount of public money being spent—a reasonable approximation—ARIA might receive between three and six freedom of information requests per year. I ask the Committee: would six freedom of information requests per year be a bureaucratic burden on ARIA, as the small and agile organisation we want it to be?

Aaron Bell (Conservative, Newcastle-under-Lyme)

rose—

Stephen Metcalfe (Conservative, South Basildon and East Thurrock)

rose—

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I give way to the hon. Member for Newcastle-under-Lyme.

Aaron Bell (Conservative, Newcastle-under-Lyme)

I thank the hon. Lady for giving way and for welcoming me back to the Committee by mentioning me in her first paragraph. I was sorry to miss this morning’s sitting, but I was paired with an Opposition Member. I admire her mathematics, but given the interest in ARIA and the cutting-edge research that it will undertake, I do not think that scaling back in the manner she did and suggesting that it might receive only three to six requests a month is likely. As she knows, UKRI has a team of people to deal with freedom of information requests. We should consider carefully whether we want to put such a burden on ARIA, because we want it to be nimble and lean. I am afraid that I do not believe the quantum of money can be scaled to the number of FOI requests. I think ARIA would get an awful lot, given the research we want it to undertake.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

Will the intervention from the hon. Member for South Basildon and East Thurrock be on a similar point? I imagine it will.

Stephen Metcalfe (Conservative, South Basildon and East Thurrock)

It was going to be on exactly the same point. I could not have put it better myself.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

My respect for the hon. Member only increases because he does not wish to repeat what somebody else has said. That is not always the case in this House, as we know. I welcome the intervention from the hon. Member for Newcastle-under-Lyme, and I would welcome a long discussion on probability, mathematics and statistics, but I can see that my Whip might not be entirely happy with that, so let me confine myself to this. I was not claiming that the estimate was rigorous. The hon. Member for Newcastle-under-Lyme suggested that because there will be more interest in ARIA, it will receive more Freedom of Information Act requests. That might be true for the first two or three years, but I do not think that level of interest would be maintained, even if it received more requests proportionately.

I mentioned funding because that is what enables activity, and freedom of information requests relate to that activity. Therefore, even if we doubled the greatest estimate to, say, 12, what price does the Committee think should not be paid for accountability and freedom of information? What would be too much? I was not here in Parliament for the expenses scandal, but we saw the impact that had on public confidence as we now see the cronyism scandals and their impact on public confidence and trusted institutions. Freedom of information and transparency is an essential part of that.

The Campaign for Freedom of Information reports that the Defense Advanced Research Projects Agency, with its significantly higher budget, was subject to just 48 requests in 2019. During the evidence sessions, we heard that UKRI was happy to deal with FOI requests, because it viewed them as an important aspect of spending public money. We also heard—this was telling—that the Royal Society of Edinburgh, although it is not subject to FOI, behaves as if it is and responds to requests because it views them as an important aspect of transparency. Regardless of whether the Minister accepts the amendment—I very much hope that she will—ARIA should echo the Royal Society of Edinburgh’s approach.

We heard in evidence from DARPA that it believed that rather than hindering the agency, the transparency offered by FOI requests was useful in building public trust in its work. In fact, DARPA’s deputy director stated that the level of oversight that it is subject to is “important to its success”. Other high-risk, high-reward agencies such as the Federal Agency for Disruptive Innovation in Germany, Vinnova in Sweden and the French National Centre for Scientific Research are all subject to the freedom of information requirements of their respective countries. What makes ARIA so different?

The protection of sensitive information cannot be used as justification for a blanket exemption, as the Freedom of Information Act 2000 already provides exemptions where disclosure would prejudice research or commercial interests, or cause a breach of confidentiality. In their initial response to the Secretary of State’s announcement of ARIA’s FOI exemption, NESTA said:

“Radical openness and honesty is needed or distrust will undermine it. The public will expect to know what’s happening with public money”—

I think we can very much see that now—

“and greater risk requires transparency and evaluation in order to determine what works.”

The Campaign for Freedom of Information said that ARIA

“will spend hundreds of millions of taxpayers’ money on high risk projects but the government apparently wants it to be less accountable to the public than parish councils, which are subject to FOI.”

In the evidence session, Tabitha Goldstaub said that

“at Google’s moonshot factory, X…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.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 57, Q55.]

On what we are trying to achieve with this agency, the Minister has mentioned her concerns about bureaucracy a few times, but I think we as legislators have to decide whether we believe that rules and regulations are simply mere bureaucracy to be thrown out whenever possible, or whether we believe that they can contribute both to the effectiveness of an agency and to the contract that we in Parliament have with the public to take their hard-earned taxpayers’ money and spend it as best we can to encourage and enable growth, prosperity, and a national health service—all things from which the public benefit. We cannot do that in secret; we have to do it publicly.

I really urge the Minister to accept the amendment. She knows that the exemption has come in for much criticism and that the controversy around it will continue to mar the progress of the agency. I urge her to listen to the siren voices of concern and to accept the amendment to remove ARIA’s exemption from the Freedom of Information Act.

Virginia Crosbie (Conservative, Ynys Môn)

It is a pleasure to serve under your chairmanship, Mr Hollobone. I would like to speak briefly to amendment 22. In the past week, we have discussed the concerns about exempting ARIA from FOI requests, and we have heard evidence about the potential burden of administration. UKRI told us that it has a team of staff purely to deal with the 300-plus FOI requests that it receives annually. In addition, Professor Dame Ottoline Leyser said that although UKRI is happy to be able to respond to FOI requests,

“there is a judgment call about the burden of administration”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 9, Q4.]

As my hon. Friend the Member for Newcastle-under-Lyme so eloquently put it—echoed by my hon. Friend the Member for South Basildon and East Thurrock—with unique freedoms and independence to enable transformational research, ARIA will inevitably receive a number of FOI requests that is disproportionate to its size.

Our vision for ARIA is that it should be lean and agile. Do we really want it encumbered by that level of administrative burden? Do we want ARIA’s brilliant programme managers to be stifled by bureaucratic paperwork?

We have also heard about whether ARIA will deliver the game-changing R&D that we want if it is subject to FOI. It was Tony Blair who gave us the Freedom of Information Act and it was he who subsequently described it as

“utterly undermining of sensible Government.”

To use his words:

“If you are trying to take a difficult decision and you're weighing up the pros and cons, you have frank conversations...and if those conversations then are put out in a published form that afterwards are liable to be highlighted in particular ways, you are going to be very cautious.”

Professor Philip Bond put this view into an R&D context in his discussions with us last week. He said that

“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.” ––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 29.]

Mr Blair and Professor Bond perfectly highlight the fundamental reason why ARIA should be free from FOI. The last thing that our scientists need when they are looking for the next internet is to be held back by caution.

The Bill already contains very strong statutory commitments to its transparency. There will be an annual report laid before Parliament. Its accounts and spending will be published. There will be non-legislative mechanisms set out in a framework document. There will be a thorough and transparent selection process to ensure that it is led by respected individuals who uphold public honour. There will also be access to FOI requests on ARIA via the Department for Business, Energy and Industrial Strategy.

For all these reasons, I believe that there is no need for ARIA to be subject to an FOI regime that will stifle creativity and create unnecessary bureaucracy.

Kirsty Blackman (Scottish National Party, Aberdeen North)

I want to make a couple of comments. We have talked a lot about transparency and the need for it, but mostly in the context of the scrutiny that we as parliamentarians will levy on ARIA. It is really important that we have transparency so that the public and journalists can scrutinise it. We are not always fans of some of the journalism that happens, but I hope we are all agreed that journalism plays a hugely important role and that journalists have no other route to access the information that they should have on ARIA in order to bring things to the public’s attention.

We discussed also the tolerance for failure that exists in the UK, and how it might differ from tolerance for failure in the US. I suggest that having more public transparency about that and more openness about the processes in ARIA would ensure that the public are more on board with the organisation’s ability to fail. The organisation should have the ability to fail, but if we do not know that that is happening, because we have not been able to scrutinise it, and that suddenly comes out in the end-of-year annual report, it will be even more of a shock for the public than if they had heard about it along the way.

On the topic of scrutinising the Department for Business, Energy and Industrial Strategy, it is interesting to consider whether BEIS will provide us with responses if we send it written questions on the subject of ARIA. That would be helpful to know. If there is not a normal mechanism for us or journalists to scrutinise this through FOI, it would be helpful to have some comfort that written questions relating to ARIA will be answered, with as much detail as the Minister feels can be given at that time.

Daniel Zeichner (Labour, Cambridge)

It is a pleasure, Mr Hollobone, to serve with you in the Chair for the second time this week.

This has been a really interesting discussion, because it has demonstrated two very different views of how the world might operate. I am sorry to hear the Government’s view on this. When they are in Opposition, they might find that they are quite keen on freedom of information. All Governments, of course, are keen not to be subject to scrutiny in this way. There is a fundamental point about the modern world now, even more than 10 or 20 years ago. Perhaps it is because of the kind of constituency I represent, but I have a lot of people who are interested in what is going on and they expect, as citizens and taxpayers, to be able to ask questions, particularly where public money is being spent.

Let me give two very quick examples. Artificial intelligence is the kind of issue that may well be dealt with by ARIA. It is hugely controversial. Just a couple of years ago, many of my constituents, on the way home from King’s Cross, found that they had been subject to facial recognition technology. How did they find out about that? Ultimately, it was through freedom of information. It is always the case that the people who have the knowledge, the power and the control do not want to share it with others. That is not a good way of maintaining public trust. Just this morning, I found myself at the Dispatch Box challenging a Minister because expert advice on bee-killing pesticides had been revealed not through parliamentary questions or asking or writing letters, but through Friends of the Earth’s freedom of information requests. I understand why the Government do not want that information out there, but it should be out there, and ARIA should be in the same place. We should have confidence in the work being done, however close to the edge it is. Ultimately, it is about maintaining public trust. We are entering a hugely complicated world, in terms of science and technology. We will not keep the public with us by hiding and not acceding to freedom of information requests.

Amanda Solloway (Conservative, Derby North)

The Government are committed to good governance and transparency, and I believe that the Bill in its current form embeds that within ARIA. With regard to amendment 22, we have carefully considered the case for and against subjecting ARIA to the Freedom of Information Act. The intention is for ARIA to have a streamlined operating structure, with decision makers who can solely focus on ARIA’s research goals. We have spoken and heard a lot about culture and how important that is to facilitating an environment that pursues transformational research.

In turn, we have thought carefully about guaranteeing accountability and transparency in the most appropriate way. There are many different mechanisms to achieve this, and I cannot accept the claims that no such oversight exists for ARIA. To reiterate: the Bill requires ARIA to submit an annual report and statement of accounts, which will be laid before Parliament; ARIA will be audited by the National Audit Office and subject to value-for-money assessments; ARIA will interact with Select Committees in the usual way; and we will draw up a framework document detailing ARIA’s relationship with BEIS and further reporting requirements, such as details of what will be published in the annual report. Together, these provisions are rigorous and proportionate and will ensure that the research community, MPs, peers and taxpayers are informed of ARIA’s activities and where it spends its money.

By not subjecting ARIA to the Freedom of Information Act, ARIA’s leadership and scientists will be free to find and fund the most cutting-edge research in the UK and the world, and to maintain the UK’s competitive advantage as a science superpower. While there are exemptions to freedom of information requests, they must still be processed, and that administration is likely to run contrary to the lean and agile operation of ARIA. To be clear, other bodies subject to the Freedom of Information Act, such as universities and Government Departments, including BEIS, will still process requests regarding their activities with ARIA in the usual way. I hope that makes it clear that this is not about reducing transparency; it is about making ARIA streamlined. I hope that the hon. Member for Newcastle upon Tyne Central understands why I cannot accept the amendment.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I thank those Members who have taken part in the debate, which highlights, as my hon. Friend the Member for Cambridge said, a real difference between us and Government Members. I totally understand why Government Members do not want Government conversations to be known at the moment—releases of those on WhatsApp have not been in their interest. However, we strongly believe that freedom of information is a duty of public bodies, so I will press the amendment to a Division.

Amanda Solloway (Conservative, Derby North)

Schedule 3 contains consequential amendments. There are a number of significant points to highlight, and a number of standard consequential amendments and obligations, which I will turn to first. The schedule has the effect of ensuring that records produced by ARIA should be treated as public records; subjecting ARIA to investigation by the Parliamentary Commissioner for Administration, the body responsible for investigating the administrative actions of public authorities; and disqualifying members of ARIA from membership of the House of Commons and the Northern Ireland Assembly. Those are all standard provisions.

Schedule 3 includes amendments to the relevant devolution Acts, with the effect of reserving ARIA. That will bring it into line with the other major public R&D funding institutions under the UKRI umbrella, including the most recently created Innovate UK. That will guarantee that, across the United Kingdom, ARIA can operate with minimal bureaucracy and without the possibility of unequal obligations or requirements on its activities in different nations. It is important to be clear that the devolved Administrations will continue to be able to fund research to the same extent that they can do now. The specific reservation of ARIA does not prevent the Welsh Government or the Scottish Government from providing additional support for advanced research in future.

The other significant provision in schedule 3 is the exemption of ARIA from the obligations on a contracting authority, for the purpose of the Public Contracts Regulations 2015. We have discussed that and I will not return to it. The provisions here are important for the effective operation of ARIA, and I commend them to the Committee.

Clause 10 - Power to make consequential provision

Amanda Solloway (Conservative, Derby North)

Clause 10 contains a power for the Secretary of State to make consequential provision. There are three points I would like to make on this clause. First, the power is only exercisable in consequence of the provisions of what will be the ARIA Act, or regulations made under clause 8, which we have already discussed. That represents a significant narrowing of the scope of the power. Secondly, I emphasise that it is a standard provision that allows issues that might emerge in future to be straightforwardly addressed. There is a comparable power in the Higher Education and Research Act 2017. Thirdly, as set out in clause 11, which we will turn to next, any regulations made under that power that amend, repeal or revoke any provision of primary legislation or retained direct principal EU legislation will be subject to the draft affirmative resolution procedure. That means that Parliament will have a say on any use of that power.

Finally, I would like to illustrate why the power is needed. If ARIA were to be dissolved in future through regulations made under clause 8, the references to ARIA inserted in other legislation would remain, and clause 1 of the Act—stating that ARIA was established—would be left hanging. In that situation, the power could be used to repeal the relevant clauses of the ARIA Act and remove references to ARIA elsewhere, which would be necessary and important to tidy the statute book and avoid confusion and ambiguity. I hope that demonstrates the importance of the power being taken.

Clause 11 - Regulations

Amanda Solloway (Conservative, Derby North)

Clause 11 concerns the regulation-making powers in the Bill, which are limited. The principal point of interest is the parliamentary procedure that each of these delegated powers will be subject to. Subsection (4) sets out that regulations made under clause 8 to dissolve ARIA and any regulations under clause 10 that amend, repeal or revoke any provision of primary legislation or retained direct principal EU legislation will be subject to the draft affirmative resolution procedure. These are the most substantial powers, so I consider that it is right that Parliament has a say over how they are exercised.

With the exception of regulations made under clause 14 concerning commencement, any other regulations made under the ARIA Bill will be subject to the negative resolution procedure. These are predominantly concerned with operational and procedural details, so again I consider that the negative resolution procedure is appropriate in this case, and I hope the Committee agrees.

Clause 12 - Interpretation

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I beg to move amendment 23, in clause 12, page 5, line 10, after “social sciences” insert “and the humanities”.

This amendment would modify the definitions of scientific knowledge and scientific research to encompass the humanities.

Philip Hollobone (Conservative, Kettering)

With this it will be convenient to discuss amendment 24, in clause 12, page 5, line 13, after “social sciences” insert “and the humanities”.

See the explanatory statement for Amendment 23.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

We are moving through this Bill at speed, so it would be good to take a few moments to think about the role of the humanities. These amendments modify the definition of scientific knowledge and scientific research to encompass the humanities.

It is incumbent on us, particularly during a pandemic when we are missing so many of the arts and other aspects of culture, to recognise the very important role that the humanities play, not only in our mental and social wellbeing but in scientific research, and particularly in our understanding of the world around us. We believe that science can be the engine of progress for our society, and it needs to be for and by everyone. Expanding the scope of ARIA’s research to include the humanities can provide greater returns for society.

This also speaks to the Government’s so-called levelling-up agenda. As part of that, they must appreciate the important role that social sciences and the humanities play in helping us understand and solve many of the issues faced in all our communities across our United Kingdom. ARIA presents us with an opportunity to drive innovation across the country, but it must be done in the right way. Currently, the Bill fails to adequately factor in the importance of all forms of research.

The statement of policy intent makes no reference to the social sciences. The examples of areas that may be funded by ARIA are AI, quantum computing and robotics. They are very important, but we also need answers from the Government on how they envisage that ARIA’s social science funding will work.

The recent report into race and ethnic disparities, commissioned by the Prime Minister, has been roundly condemned—indeed, trounced—for its lack of coherent or credible research. It has been criticised by historians, social scientists and academics from across our country. That illustrates very well how important it is that we have strengths in humanities and social science research, and that the Government and the Prime Minister recognise that. The role that institutional racism and prejudice play in the lives of so many in this country is worthy of credible research. Addressing the many inequalities that so many people still face is surely a worthy challenge—a worthy moonshot—that ARIA should consider.

Mariana Mazzucato, a leading academic and economist of mission-oriented research, said that all science should address social inequality. We heard from Felicity Burch that:

“Clearly defining the mission of what ARIA is trying to achieve when we get the team in place, making sure that it is something that excites people, having a clear market, and also solving national and international social problems will help encourage really bright, brilliant people to get involved.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 68, Q66.]

With our two amendments, we wish to ensure that the humanities are considered part of ARIA’s remit.

Amanda Solloway (Conservative, Derby North)

I will speak to amendments 23 and 24 together. ARIA is unashamedly focused on achieving transformational breakthroughs in the sciences, and this is reflected in the definition set out in clause 12. I say to the hon. Member that scientific research and scientific knowledge are broadly defined to include the social sciences. I do not believe it is helpful for ARIA to extend the interpretation of “sciences” to include humanities. There are other funders that do a fantastic job at supporting the humanities, including the Arts and Humanities Research Council, but that is not the Government’s intention for ARIA. I hope the hon. Member will withdraw the amendments.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I am disappointed in the Minister’s response, but I will not push the amendments to a vote. I beg to ask leave to withdraw the amendment.

Daniel Zeichner (Labour, Cambridge)

I beg to move amendment 25, in clause 12, page 5, line 13, at end insert—

““Invention” means the process by which ideas are converted into value in the form of new and improved products, services and approaches.”

This amendment would establish the meaning of “invention” as referred to in the title and functions of ARIA.

The amendment is about defining “invention.” Before the sharp-eyed hon. Member for North Norfolk points out that, at the start of these proceedings, I tried to take the word “invention” out of the title, I repeat my earlier observation that we are quite prescient on this side of the House. I had rather anticipated that, despite all the fantastic strength of our arguments, Government Members were not necessarily persuaded, strangely enough.

Aaron Bell (Conservative, Newcastle-under-Lyme)

I thank the hon. Gentleman for making that point, which I considered making as well. Given his remarks on Tuesday and his obvious love for the operatic nature of the Bill, it seems he might have considered changing the name of ARIA to the Advanced Research and Insulation Agency.

Daniel Zeichner (Labour, Cambridge)

I would certainly like to do that, because we have a Government who have been unable to insulate our homes for a decade, but never mind. There are many musical references that could be made, including to The Mothers of Invention, with whom I grew up, but I suspect their notion of invention is rather different from the Government’s.

There is a serious point here, and it is a theme to which I return. We really think there is a problem with not having a clear definition. It seems to us that there are two very different approaches. The Government’s view is basically that our structure of accountability, and the way we deal with public money, is a problem for innovation. It is a difficulty that should be got rid of. I am afraid it goes back to the Dominic Cummings question, because that is his view of the world too. We take a very different view. Far from thinking that it is a problem, we think it is actually part of creating an innovation landscape—a community of people who are working towards shared goals.

Jerome Mayhew (Conservative, Broadland)

I, too, was very tempted to make an intervention about the change in name, but I scanned through the entire Bill and noticed that there was one other mention of the word “invention” in the body of the text, so we were not able to move on that. But words have natural and ordinary meanings. The hon. Gentleman would perhaps refer to the “Cambridge Dictionary”, which defines “invention” as

“a product or a way of doing something which has never been made or never existed before”.

What is wrong with relying on the “Cambridge Dictionary” definition?

Daniel Zeichner (Labour, Cambridge)

Absolutely right, and I have no objection to ever relying on anything that has been developed in Cambridge through a collegiate, collaborative approach of people working together. I was just about to say that we would be very happy to negotiate a definition of “invention”—I am very happy to take that one. We are just trying to help the Government to provide some clarity in the Bill. I suspect the Minister will not be tempted to take up the offer.

I will conclude by mentioning the public money point, which my hon. Friend the Member for Newcastle upon Tyne Central referenced. I can barely believe that I am saying this to Conservative Members, because I have been lectured many times over the years in various places about how it is taxpayers’ money and every penny needs to be spent carefully. It is absolutely right and proper that that should be done—£800 million is at least £10 per person. I suspect that other Members are knocking on doors at the moment and having a conversation with people, asking them how they are going to vote. I just wonder how many Members over the next week or two would like to end the conversation by saying, “Can I have a tenner, please?” When people ask, “What for?”, they offer the back of an envelope and say, “I don’t really know—I’ve no idea—but it might produce something wonderful.” And then they look down the list and find six others in the household, so they up it to £60. I do not think so. I think the public are not going to be convinced about this. Maybe—just maybe—a wonderful innovation will come through this, but I fear that, in years ahead, we will find that we are back discussing this again and will be putting in some of the checks and balances that are actually required.

Amanda Solloway (Conservative, Derby North)

I thank the hon. Member for the suggestion and I understand the sentiment. It is incredibly important that ARIA’s transformational ideas can lead to value creation. However, it is not necessary to use legislation to define words that already have a common meaning, as I believe “invention” does. I also emphasise that other definitions in clause 12 of the Bill—of “scientific knowledge” and “scientific research”—mirror existing provision in the Science and Technology Act 1965, so there is a precedent for the approach in that specific case. “Invention”, in contrast, is a commonly used concept that appears through the Patents Act 1977, and the term “invention” is not subject to a specific definition in that Act. I strongly suggest that we rely on the commonly understood meaning of “invention”, which is “the process of creating something that has never been made before”, and that that definition is sufficient, and I encourage him to withdraw the amendment.

Daniel Zeichner (Labour, Cambridge)

I do not need to detain the Committee further. I beg to ask leave to withdraw the amendment.

Amanda Solloway (Conservative, Derby North)

Clause 12 contains further information on the interpretation of terms used in the Bill. It is a straightforward, technical matter and I hope that it is helpful in illuminating some of the clauses previously discussed.

Clause 13 - Extent

Amanda Solloway (Conservative, Derby North)

Clause 13 details the extent of the Bill, which is UK-wide. Research is a collaborative endeavour, and working right across the United Kingdom, as other public research funders do, will be essential for ARIA in forging a wide range of productive partnerships. I hope hon. Members agree that this arrangement is beneficial for research organisations everywhere.

Clause 14 - Commencement

Amanda Solloway (Conservative, Derby North)

Clause 14 contains standard provision for the commencement of the ARIA Act following Royal Assent. It contains a power for the Secretary of State to make commencement regulations. There is a limited number of provisions that for practical reasons will immediately come into force. That includes the power to make consequential provision in clause 10 so that it could, if needed, be used immediately after Royal Assent to address any issues that emerged. I am sure that the Committee will agree that the clause is standard.

Clause 15 - Short title

Amanda Solloway (Conservative, Derby North)

This clause provides the short title of the Bill. ARIA’s name has already been discussed at the very start of proceedings, and I do not think we need revisit that discussion here.

New Clause 1 - Protection of independence of ARIA

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I beg to move, That the clause be read a Second time.

The entire debate has been extremely exciting, and I know we are all reluctant to bring it to a close, but the new clause, which I will discuss briefly, is in keeping with all our constructive amendments that we have considered in our debate on ARIA. The new clause would improve the Bill and protect the spirit and goals of ARIA. Indeed, it would clarify them in places.

The new clause would ensure that when exercising functions in respect of ARIA, the Secretary of State must have regard to the protection of its independence. Members on the Government and Opposition Benches have talked about the importance of ARIA’s independence and referred to the challenges to the relationship between business and Government that we see now in the many conflicts of interest and concerns that have been raised about sleaze and cronyism that are now being considered in Parliament and in Committees.

We feel it is important to set out that ARIA is independent and can act with operational independence. Indeed, the Minister has repeatedly told the Committee that she wants ARIA to act with operational independence. “Extreme freedom” was Dominic Cummings’ clarion call in his evidence to the Science and Technology Committee.

The new clause would ensure that the Secretary of State had regard to ARIA’s independence when exercising all functions under the Bill, such as his power of appointment. For example, appointing a major Conservative party donor or a Conservative peer to the board of ARIA would clearly have a damaging effect on ARIA’s independence and how that independence was perceived by the scientific community.

I hesitate to predict what the Minister will say, but I suspect that she will not look favourably on this amendment and she may say that the ministerial code already requires Ministers to behave in a way that upholds the highest standards of propriety and ensures that no conflicts of interest arise. In response to that, I would say that we can clearly see the repeated undermining of the code by Ministers in this Government and—critically—the current vacancy for the Prime Minister’s independent adviser on Ministers’ interests.

I also remind the Committee that the Government themselves introduced a very similar amendment to the Environment Bill—new clause 17—that imposes the same obligation on the Government in exercising functions under that Bill in relation to the Office for Environmental Protection. If such a measure is appropriate for the Environment Bill, why not for this Bill? For as long as we have this cloud of sleaze allegations hanging over this Government, we must ensure that we are crystal clear when it comes to key issues such as independence, propriety, conflicts of interest, and so on.

In addition, I will just briefly quote some witnesses who gave evidence. Tabitha Goldstaub, for example, said that

“ARIA has to be independent”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 56, Q54.]

Dr Dugan said:

“That independence of decision making and the crafting of those programmes in that spirit are coupled, and that is part of the reason why the agency”—

that is, the Defence Advanced Research Projects Agency in the US—

“has been so successful over years.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 47, Q43.]

And I will close by quoting Professor Glover, who said:

“I would argue that there is huge value in that”—

“that” being the independence of ARIA, and 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.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 55, Q54.]

I think that all Members of the Committee will agree that we do not wish ARIA to become a political football; we certainly want it to avoid the controversy that has affected football itself in the last few days. We want its independence to be crystal clear. We do not want it to be subject to, or tainted by, any of the allegations of sleaze or cronyism, or the corrupting influence of there being too close a relationship between business and Government. By accepting this amendment, the Committee will send a clear message in that regard.

Amanda Solloway (Conservative, Derby North)

New clause 1 concerns ARIA’s independence, which is at the core of our policy aims here, and the Bill has been drafted to set ARIA as free from ministerial interference as possible. ARIA will set its own research programmes, recruit freely at the executive and programme manager level, and make decisions on what programmes to start and finish without recourse to Ministers.

I observe a contradiction in moving this new clause to protect ARIA’s independence to be discussed alongside a series of amendments which would take powers away from ARIA and give them to the Secretary of State. The Secretary of State deliberately has limited powers and the Bill strikes the right balance between providing ARIA with the independence to operate freely, which we believe is critical to its success, and sufficient Government oversight to protect the use of public funds, for example, the right to remove non-executive members or to intervene where necessary or expedient on national security grounds, or the Secretary of State’s reserve power to introduce procedure in law affecting conflicts of interest, a power that is not found in the Bill but which creates other statutory corporations, such as UKRI. These measures represent appropriate protections, rather than controls, affording ARIA greater freedoms and independence than those of typical arm’s length bodies.

Without real freedoms, there is a danger that ARIA will get pulled closer by Ministers over time, and will become an arm’s length body like any other. I therefore do not think the new clause is needed.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

There is not a contradiction between wanting to establish ARIA’s independence while also ensuring the same levels of scrutiny. For us they are two sides of the same coin. As this is our last proposed amendment, I want to press the new clause to a Division.

New Clause 2 - Carbon costsNew Clause 2

Philip Hollobone (Conservative, Kettering)

We now go to Aberdeen South to move new clause 2.

Stephen Flynn (Scottish National Party, Aberdeen South)

I beg to move, That the clause be read a Second time.

We are indeed going to the better side of Aberdeen, although I should be very careful on my way home, because my hon. Friend the Member for Aberdeen North and I are both on the same flight later.

I do not want to go over the arguments that we had earlier in the week. I think we had quite enough on net zero and climate change. We do of course still hold the view that that should be the abiding mission of ARIA itself. Given that the Bill does not make any provision for what we are suggesting in the new clause, it should be brought forward at this moment in time. I hope the Minister will be able to allay my concerns with her remarks.

Amanda Solloway (Conservative, Derby North)

We discussed climate change extensively on Tuesday. I want to put it on the record that I agree with the hon. Members who raised the urgency and importance of tackling that issue. As I am sure the hon. Member for Aberdeen South is aware, however, the clause would be a very unusual provision for a statutory corporation. I also want to emphasise that ambitious legislative action has already been taken by the Government in this regard, with our strong statutory commitment to net zero making the UK the first major economy in the world to do that.

As I have said before, achieving the legislative commitment to net zero remains one of the Government’s top priorities, as demonstrated by the Prime Minister’s 10-point plan. I know that ambition is shared by colleagues across this place. I therefore recognise why the clause has been brought forward today. I would, however, caution against placing an immediate obligation on ARIA that is out of step with the wider 2050 timescale for reaching net zero.

ARIA is also likely to be a very small organisation with a small footprint. I also want to emphasise that ARIA will be subject to the Environmental Information Regulations, which require public authorities such as ARIA to make environmental information available. This would likely include data relating to carbon costs. We have discussed the importance of giving ARIA freedom and independence and space to establish itself, and ultimately I do not think that imposing that immediate statutory obligation is the right way to achieve the climate objectives that it speaks to, or to ensure the success of ARIA.

Stephen Flynn (Scottish National Party, Aberdeen South)

I beg to ask leave to withdraw the new clause.

New Clause 3 - Presentation of funding in Estimates

Philip Hollobone (Conservative, Kettering)

The new clause is in the name of the SNP, and we go this time to Aberdeen North.

Kirsty Blackman (Scottish National Party, Aberdeen North)

I beg to move, That the clause be read a Second time.

Aberdeen North is by far the best part of Aberdeen, Mr Hollobone.

I know that new clause 3 is the most exciting thing, and that the Committee has been waiting for it the whole time. It is the key moment in our discussions. I jest—but it is important. The past few years saw the advent of English votes for English laws in Parliament, and we were told during its development that even though Scottish MPs were being written out of having a say on England-only legislation, we would still have a say on Barnett consequentials, because we would be able to vote during the estimates process.

We have made our issues with that process clear. Despite good changes to the system and the way we scrutinise estimates, the process is still wholly inadequate. Part of that inadequacy is the fact that we have no certainty about what will or will not be a discrete line within the estimates. We have no certainty about whether we can get the costs for something. As the shadow Minister said, when she asked for costs for UKRI, in relation to freedom of information requests, for example, she did not get them. Even if ARIA is to be an arm’s length organisation in relation to BEIS, with a memorandum of understanding, but it will be spending public money, I would be keen to keep track of how much we are allocating to ARIA each year. Once again, it would be quite good if the Minister would make a commitment to a discrete line in the estimates. If she does that, I will be more than happy to say nothing else.

Amanda Solloway (Conservative, Derby North)

New clause 3 is intended to ensure that ARIA is presented as a discrete item in the supply estimates. ARIA will be funded by BEIS and, like all other BEIS arm’s length bodies, will be separately identified in the BEIS supply estimates. ARIA statements of accounts, which will be laid before Parliament every year, will also include information on ARIA’s funding from BEIS. I therefore believe that the new clause would be an unnecessary addition to the Bill.

Kirsty Blackman (Scottish National Party, Aberdeen North)

With that confirmation from the Minister, I am happy to say that I beg to ask leave to withdraw the motion.

New Clause 4 - Ethical code for investmentNew Clause 4

Stephen Flynn (Scottish National Party, Aberdeen South)

I beg to move, That the clause be read a Second time.

Again, the new clause is very straightforward. It is intended to ensure that ARIA develops a code of ethical investment that goes beyond regulatory requirements, and adopts a best practice approach. What is not to like? That is something that we should all aspire to, particularly when it comes to such a significant amount of public money. We have talked at length today and on Second Reading about ARIA’s ability to dodge freedom of information requests, and the like. The new clause would provide the assurance that we need, given that the Government appear unwilling and unable to take forward our views on freedom of information. It perhaps provides a compromise position.

Amanda Solloway (Conservative, Derby North)

I recognise the issue raised in the amendment. The most transformational scientific research, of the kind that will be pursued by ARIA, is likely to have a wide range of potential technological applications, across different areas. Such research may prompt new ethical debates, such as those that we are already having about AI and robotics. The Government welcome lively, open and democratic public and parliamentary debate on the roles that new technologies play in our lives, and I do not think that that is something we should shy away from. However, I assure the hon. Gentleman that ARIA will operate in line with the law that already governs issues of research ethics, such as the use of animals in research. ARIA will not be given special dispensation to fund research that is not considered appropriate elsewhere.

I draw attention to the fact that there is no specific legislative requirement placed on UKRI, a much larger-scale funder, with respect to issues of research ethics. For ARIA the Government would be able to intervene in exceptional circumstances through the national security provision in clause 4 of the Bill, as we have already discussed.

Kirsty Blackman (Scottish National Party, Aberdeen North)

I understand what the Minister says about the fact that there is no such provision for UKRI. However, perhaps if was being set up now, we would suggest that there should be. For her information, the Scottish National Investment Bank has a clause almost identical to new clause 4, on ethical investment. We believe that if the Scottish National Investment Bank can operate on that basis, ARIA should have no problem doing so. I understand exactly what she says about the debates that are happening, but that is why it is even more important for ARIA to sign up to some kind of code of ethics that we can all scrutinise.

Amanda Solloway (Conservative, Derby North)

To reiterate our viewpoint, the Government would be able to intervene in exceptional circumstances through the national security provision in clause 4, which we have already discussed, and by introducing powers on the grounds of conflict of interest and appointing a new chair or new non-executive directors. More broadly, in working with relevant Government institutions, special attention will be paid to ensuring that ethical questions generated by research are thoroughly explored and that we strike an appropriate balance between innovation and caution.

Stephen Flynn (Scottish National Party, Aberdeen South)

I beg to ask leave to withdraw the motion.

New Clause 5 - Human rights abuses

Stephen Flynn (Scottish National Party, Aberdeen South)

I beg to move, That the clause be read a Second time.

It is perhaps apt to reflect on the debate on the annunciator screens, which relates to many right hon. and hon. Members’ concerns about human rights. Those concerns are just and appropriate, and I do not think that any of us wants to be under any illusion about whether ARIA might have cause to have or seek investment in technologies that may contravene human rights. It is an incredibly serious topic.

We can see from the Bill the flexibility and freedom that ARIA will have. We hear from the Government that they want it to be agile and nimble, and we know that it will not have the level of scrutiny and transparency that perhaps it should—certainly in our view. I would welcome an incredibly serious tone from the Minister and a cast-iron assurance that human rights will not be contravened in any way, shape or form by ARIA and its processes.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

I second the concerns raised by the SNP spokesperson. If ARIA commissioned research, for example, that was collaborative between the UK and a Chinese tech company involved in the Uyghur human rights abuses, which are so extreme, how would we know about it and what action could be taken?

Amanda Solloway (Conservative, Derby North)

I completely agree with the sentiment and the intention behind the new clause. Human rights are protected in law in the United Kingdom through the Human Rights Act 1998, and ARIA will be subject to public authority obligations under the Act. I refer the hon. Member for Aberdeen South to the first page of the Bill, which confirms that the Secretary of State has signed a statement to the effect that

“the provisions…are compatible with the Convention rights.”

I therefore reassure the Committee that ARIA will operate in a way that is compatible with the European convention on human rights; indeed, it would be unlawful under existing legislation for it not to do so. I hope that that satisfies the hon. Member that there is no need for the new clause.

Philip Hollobone (Conservative, Kettering)

Mr Flynn, the ball is in your court.

Stephen Flynn (Scottish National Party, Aberdeen South)

I think that there remain some outstanding concerns that are not covered by other Acts from the UK Government that we have debated in the House over many years. I do not think that the Minister necessarily addressed the shadow Minister’s question about ARIA seeking to partner with an organisation that was in breach of human rights or that contravened them in its activity, but I am more than happy for her to intervene if she wishes to correct me.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

The concern over human rights in supply chains for tech companies has been raised a number of times, but we have yet to see it properly addressed by the Government. That echoes a concern represented here, and I hope that there will be an opportunity for the Minister to reassure us further.

Stephen Flynn (Scottish National Party, Aberdeen South)

I thank the hon. Member for that important contribution. On that note, I will press the new clause to a vote. I hope the Government will reflect on the issue before the Bill comes back to the House.

Philip Hollobone (Conservative, Kettering)

I know that Members will be disappointed that this is the final question before the Committee.

Chi Onwurah (Labour, Newcastle upon Tyne Central)

On a point of order, Mr Hollobone. I thank you for the way in which you have chaired our deliberations, and for your guidance and that of the Chair of each sitting. I thank the Committee members, whose contributions have just about always been good-natured and constructive, and have often been humorous and enlightening at the same time. I offer my particular thanks to the Clerks of the Committee, to Hansard for taking down our words of wisdom—or whatever—so accurately and concisely, and to all the staff and Officers of the House who have furnished us with excellent briefings for the evidence sessions. We have benefited from their advice and guidance outside of the Committee Room as well.

Kirsty Blackman (Scottish National Party, Aberdeen North)

Further to that point of order, Mr Hollobone. I echo the comments made by the shadow Minister. I have said thanks very much to the Clerks, but I also put on the record my thanks to Dr Jonathan Kiehlmann and Scott Taylor, our staff members who have been assisting us. I also put on the record my thanks to the Minister, who wrote to us with a response to questions that we asked on Tuesday. I thank her and her team for ensuring that happened.

Amanda Solloway (Conservative, Derby North)

Further to that point of order, Mr Hollobone. I take this opportunity to place on the record my sincere thanks to the Chairs for their excellent chairship. We have finished proceedings early, and I thank the Whips on both sides for their efforts in the management of time. I thank the excellent witnesses we heard from last week, and I thank all members of the Committee for our constructive debates. I am so pleased that every member recognises ARIA’s potential to bolster the reach of R&D funding across the whole United Kingdom and to be at the global forefront of new discoveries.

I very much welcome the sentiment behind the amendments we have discussed, such as maintaining the independence of ARIA, diversity in science and the importance of combating climate change. I hope I have demonstrated that the Bill will create a leading independent research institution and, while it is not for this piece of legislation, that the Government are making significant progress on other areas of policy through our net zero commitments and our upcoming people and culture strategy and places strategy. I welcome the support in delivering those aims.

Philip Hollobone (Conservative, Kettering)

I thank the Clerks for their hard work, and the Hansard reporters and all hon. Members for their attendance this afternoon.