My Lords, I start by declaring an interest as chancellor of Cardiff University. Given the current climate, I think I need to make it clear that it is an unremunerated role.
The amendments in this group deal, in one way or another, with the representation within ARIA of the interests of the nations and regions of the UK. My Amendment 4 seeks to gain some clarification from the Government—it is, of course, a probing amendment —as to the purposes and modus operandi of ARIA, and to make the point that because it will operate within areas of devolved competence, it must listen to the voices of the devolved nations.
As it stands, it is difficult to get a handle on exactly how ARIA will operate. The list of things it is able to do is comprehensive. It can take an equity stake, carry out its own lab work, contract with an academic or industry team, create prototypes, market products, convene conferences, operate outside the UK—and a whole lot more. It is to be granted great freedom and there is, as noble Lords have said, an emphasis on lack of bureaucracy. It is to be ambitious and tolerant of failure.
In the debate in the other place, Greg Clark MP, chair of the Science and Technology Committee, complained that it was not clear whether the emphasis would be on “blue-sky research” or whether it would turn existing ideas into “practical applications”. Clause 2(6) says:
“ARIA must have regard to the desirability of … contributing to economic growth, or an economic benefit, in the United Kingdom”
and
“improving the quality of life in the United Kingdom (or in the United Kingdom and elsewhere)”.
These are worthy thoughts but there is no obligation to take account of the nations and regions of the UK.
The funding of ARIA directly by the UK Government impacts on devolved powers in relation to higher education and economic development. The Bill creates a new reservation in respect of research and innovation. I accept that this is not altogether new, because there is already a reservation for UKRI, and there is indeed great strength in not having research silos. Partnership is vital, both within and across the UK and internationally: partnership between universities—where most blue-sky research originates—and between universities and commercial companies, which exploit that research. To amend the Bill to spell out that there must also be partnership between the UK Government and the devolved Governments will simply strengthen ARIA.
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It would of course be a waste of resources for there to be unnecessary duplication or unintended gaps. One can forgive us for being concerned to dot a few “i”s and cross a few “t”s, because this is not a good time to launch an organisation with such vague terms of reference and so few controls on a substantial pot of public money. Hard on the heels of the scandals of billions of pounds wasted on PPE and test and trace, this is not a good time to say, “We need less control of how taxpayers’ money is spent”, rather than more. It is difficult to see that a board which, despite the arguments
about its size, remains a small group of people, with the danger of groupthink, which has been referred to, and whose appointment is entirely within the Secretary of State’s control, can be guaranteed to serve the interests of the whole of the United Kingdom. There needs to be a voice from outside the magic inner circle.
I also want to press the Minister on how she sees ARIA working with higher education institutions, which are themselves bound by strict rules of financial probity and strict accounting rules and which, up to now, have worked with the grain of the strict rules that bind UKRI and other research councils. I agree with the noble Lord, Lord Willetts, and others that there are many times when these rules can seem overly restrictive, so there is a strong case for a new organisation of this type, but, as the Bill stands, it seems unlikely to deliver what is required throughout the UK. The structure puts all the cards in the hands of the UK Government. It needs to be balanced with voices from outside.
Let us remember that ARIA has very big boots to fill—in Wales, in particular: those of the EU. Wales was a main beneficiary of EU funding to the UK, and the Welsh Government chose as a steadfast policy over many years to concentrate much of that EU money on research, particularly higher education-based research with a regeneration agenda. ARIA funding is modest in comparison with the amount of money that has been spent in Wales in that way, but it can still play a significant part if it is spent efficiently and effectively.
I accept that the Government have tabled amendments later which relate to this, but noble Lords will be aware that they have been laid rather later than the amendments in this group. The contents of the promised MoU—although the promise is extremely welcome—are so far unknown. I will listen to the Minister with great interest. I hope that either now or on another day, she will explain to us in some detail what the government amendments are intended to do. I hope they will cover many of my concerns. I beg to move.