Extract from Lords motion to approve the Enterprise Act 2002 (Share of Supply Test) (Amendment) Order 2018 - May 1
Wednesday, 2 May 2018 07:06
Baroness Burt of Solihull (LD):...While the Government are not
doing it at present, we need to be wary of significantly expanding
the national security grounds for intervention because they could
be used spuriously, as we see President Trump doing. We need to
ensure that Parliament can keep the Government accountable for this
power. We are currently far from the situation that exists in the
USA, with President Trump using national security concerns
spuriously to protect US economic interests,...Request free trial
(LD):...While the Government are not doing it at present,
we need to be wary of significantly expanding the national security
grounds for intervention because they could be used spuriously, as
we see President Trump doing. We need to ensure that Parliament can
keep the Government accountable for this power. We are currently
far from the situation that exists in the USA, with President Trump
using national security concerns spuriously to protect US economic
interests, but will the Minister commit to coming to this House
regularly, as the Secretary of State has done in connection
with GKN, so that Parliament can hold the Executive
to account for how these powers are used? In addition, we have been
calling for a public interest test that could widen the grounds for
ministerial intervention. However, this is controlled at EU level
so would require EU agreement or would need to be done post Brexit.
Does the Minister agree that the grounds for ministerial
intervention in corporate takeovers, particularly by foreign
companies, need to be expanded? For example, would he be prepared
to work with the EU to consider the case for intervention in
mergers to ensure that the UK’s research and innovation capacity is
not restricted? I look forward to hearing what he has to say...
(Lab):...The noble Baroness, Lady Burt, made a number of
points about how there may be other considerations here. Will this
be restricted to national security or are we finally going to see
some sense of the public interest test—which clearly the Secretary
of State wished he had powers to address when he was looking at
the GKN merger a few weeks ago—which
would deal with questions about how research, employment and
sensitive activities across the country will be looked at when
there is an aggressive overseas takeover that is not particularly
welcomed or wanted or which is subject to concerns for which there
is currently no adequate remedy in our companies legislation? The
Stock Exchange can make recommendations, but these are not
statutory. What we need is a government commitment to go forward on
this basis which will look at undertakings that will have to be
given by the acquiring company for which there will be statutory
redress should it be recalled. Is this what is referred to in
paragraph 7.4 of the Explanatory Memorandum, and if it is not, can
we know when that is going to happen?
To read the whole debate, CLICK
HERE
|
