Source · Select Committees · Defence Committee
Recommendation 9
9
Paragraph: 46
Some commentators have questioned the placement of the ‘Investment Security Unit’ within the Department for...
Conclusion
Some commentators have questioned the placement of the ‘Investment Security Unit’ within the Department for Business, Energy and Industrial Strategy, suggesting that it does not have the necessary expertise and knowledge. We are content, however, that the unit will be able to draw on experience across Whitehall. The Ministry of Defence, alongside other departments and agencies, should proactively feed into all relevant assessment processes.
Paragraph Reference:
46
Government Response
Acknowledged
HM Government
Acknowledged
The Investment Security Unit (ISU) has been designed following wide consultation across Government, with the active engagement of Government departments including the MOD and the Agencies. The Committee is quite right to conclude that the ISU will draw upon the extensive experience and expertise of stakeholders across Whitehall. Sitting within the Department for Business, Energy and Industrial Strategy (BEIS), which already plays a vital role with regard to the screening of foreign investments, the ISU will act as a hub, drawing upon expertise from the Cabinet Office, the MOD, the Agencies and other Government departments, to ensure we process transactions quickly and efficiently– with access to the required evidence and advice. The existing expertise from the Cabinet Office’s Investment Security Group will move into the new unit and all Departments have worked closely together to design ISU processes. The MOD will continue to play a pivotal role in the establishment of the ISU and the future assessment of cases. The new unit will work closely with the MOD and other departmental teams to carry out risk assessments and gather the sector expertise required to inform decisions, which will be taken by the Business Secretary in his quasi-judicial capacity. The Business Secretary already takes representations from Defence Ministers, especially in those cases concerning defence and security issues.