Select committee: Foreign Affairs Committee
Conclusion 1
Sixth Report: Striking the balance: Protecting national security through foreign investment legislation
Published 19 Jan 2021
Paragraph 13
Addressed to Foreign, Commonwealth & Development Office
Foreign Affairs Committee The FCDO’s role in blocking foreign asset stripping in the UK All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
If the Government is not more coordinated and able to think long-term in its approach to foreign investment, we risk losing our most innovative companies overseas, with harmful consequences for our national security.
From: Foreign Affairs Committee, Sixth Report: Striking the balance: Protecting national security through foreign investment legislation (HC 296), paragraph 13, 19 January 2021
Government response
The government responded to the whole report on 26 February 2021 (deadline 19 March 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government explains why it was "unable to accept" the Committee's amendment and does not define 'national security' in the Bill, while saying it shares the aim of the regime achieving the right balance.
- On Recommendation 1, the Bill "does not seek to define 'national security'", which the Minister calls "deliberate" so that the government of the day can respond rapidly to changes; risks will be determined "on a case-by-case basis".
- The Minister states he "fully agree[s]" that sufficient clarity must be provided to businesses and investors about how the regime will operate, and says the reforms are "solely about national security".
- On Recommendation 2, the Government "does not believe that it would be appropriate to define 'national security'"; it points to the Bill's explicit references to 'national security' in its legal tests and to the right to apply for judicial review.
- The Government "will formally consult on a further version" of the Statement on the call-in power, which will take into account the Committee's comments and feedback from other Parliamentarians. No date is given.