Source · Select Committees · Foreign Affairs Committee
Recommendation 7
7
We support the Government’s decision to keep the NSI Act agnostic of geography or type...
Conclusion
We support the Government’s decision to keep the NSI Act agnostic of geography or type of actor, so that investments are judged on a case-by case rather than country- 30 Sovereignty for sale: the FCDO’s role in protecting strategic British assets specific basis. The FCDO has a vital role to play in communicating to other parts of government its assessment of the broader strategic intent of foreign governments in their investment decisions, and this information should be a primary consideration when considering specific transactions. The FCDO should be responsible for advising BEIS on these matters and we intend to hold the Department to account for any failure to do so. (Paragraph 37) Cross-Government cooperation on investment screening
Government Response
Acknowledged
HM Government
Acknowledged
We agree with the Committee’s recommendation. Following full commencement of the NSI Act on 4 January 2022, ISU officials will coordinate input from across government, including from the FCDO, to ensure the Business Secretary can make informed and well-evidenced decisions. The FCDO will contribute the expertise and local knowledge from the global network, including its assessment of other governments’ intent, to inform NSI screening and assessment processes. The FCDO will also continue to monitor and report more broadly on the strategic intent of foreign governments and their investment decisions.