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National Security and Investment Bill - Sitting 8

03 December 2020

Proposing MP
Derek Twigg Lab
Widnes and Halewood
Type
Public Bill Committee

At a Glance

Issue Summary

The statement discusses the necessity of changing 'may' to 'shall' in Clause 14 of the National Security and Investment Bill to ensure mandatory prescription by the Secretary of State. The statement addresses concerns regarding the National Security and Investment Bill's clause 14 and its impact on small businesses. The statement addresses the National Security and Investment Bill, specifically discussing clause 14 which outlines the process for proposed acquirers to notify the Secretary of State about notifiable acquisitions. The statement discusses clause 15 of the National Security and Investment Bill which outlines the process for retrospectively validating notifiable acquisitions that were completed without approval. The statement discusses the National Security and Investment Bill, specifically addressing clause 16 which provides a mechanism for parties affected by void notifiable acquisitions to apply for retrospective validation. Clause 17 addresses the retrospective validation process for notifiable acquisitions that have been completed without approval. MP Derek Twigg is discussing amendments related to broadening the Secretary of State's powers to require information and witness attendance in relation to the National Security and Investment Bill. Alan Whitehead is discussing amendments to clauses 19 and 20 of the National Security and Investment Bill, which aim to remove certain restrictions on the Secretary of State's power to require information. Alan Whitehead is discussing the issue of proportionality in the National Security and Investment Bill and its implications for the Secretary of State's ability to gather information. The minister responds to amendments regarding information requests and witness attendance notices under the National Security and Investment Bill. The statement addresses the National Security and Investment Bill, specifically Clause 20 which grants the Secretary of State power to require witnesses' attendance for gathering evidence. The statement discusses Clause 21 of the National Security and Investment Bill, which outlines provisions for serving information and attendance notices on individuals outside the UK. The statement discusses the practical implications of serving notices on individuals or entities outside the UK under the National Security and Investment Bill.

Action Requested

The MP suggests that the clause should be amended to use 'shall' instead of 'may' to make it mandatory for the Secretary of State to prescribe the form and content of a mandatory notice, improving clarity and proportionality in the legislation.

Key Facts

  • Amendment 18 seeks to change 'may' to 'shall' in clause 14.
  • The current wording may lead to uncertainty about what constitutes a mandatory notice.
  • Subsection (1) mandates giving notice before gaining control of notifiable acquisitions regardless of the Secretary of State's prescription.
  • Clause 14 sets out the mandatory notification procedure.
  • Amendment proposed by hon. Friend seeks to protect small businesses.
  • Small businesses face challenges in understanding and complying with notifications without clear guidance.
  • Clause 14 provides a mechanism for proposed acquirers to notify the Secretary of State about notifiable acquisitions.
  • The Secretary of State has up to 30 working days to decide whether to exercise the call-in power after accepting a satisfactory notification.
  • Amendments 18 and 19 aim to compel the Secretary of State to make regulations specifying the form and content of mandatory or voluntary notices, but Nadhim Zahawi argues they are unnecessary.
  • Clause 15 places a duty on the Secretary of State to consider validating notifiable acquisitions retrospectively.
  • A call-in notice or validation must be issued within six months from becoming aware of an acquisition without approval.
  • Validation notices treat the acquisition as having been completed without approval, making it no longer void.
  • Clause 16 enables parties to apply for retrospective validation following a similar mandatory notification route.
  • Subsection (3) allows the Secretary of State to prescribe regulations on the form and content of validation applications.
  • The review period for validation applications is 30 working days.
  • Clause 17 provides for retrospective validation of acquisitions completed without approval.
  • The Secretary of State has 30 working days to assess and either make a final order or give unconditional clearance with validation notice.
  • Extensions up to an additional 45 working days are possible if legal tests are met.
  • Amendment 20 seeks to modify clause 19 by leaving out lines 24 to 27.
  • Amendment 21 aims to alter clause 20, specifically by removing lines 17 to 20.
  • The amendments propose broadening the Secretary of State’s information gathering powers.
  • Amendment 20 seeks to remove sentences from lines 24-27 on page 12, specifically clause 19(2).
  • Amendment 21 would remove clause 20(2) which relates to the power to require information and witness attendance.
  • The Secretary of State cannot require provision of information unless it is proportionate to its use under the Act.
  • The discussion centres on clause (2) of the National Security and Investment Bill.
  • Alan Whitehead refers to civil litigation reforms implemented in 2013.
  • The term 'proportionality' is debated due to its unclear legal definition.
  • Amendments 20 and 21 aim to remove subsections (2) of clauses 19 and 20.
  • Clause 19 allows the Secretary of State to request information through an information notice if it is proportionate.
  • Clause 20 enables the Secretary to require witness attendance for evidence provision when necessary.
  • The clause enables the Secretary of State to require attendance of witnesses.
  • It provides for an 'attendance notice' which can be issued if a person holds expert knowledge or there are concerns about non-compliance with information requests.
  • There will be criminal and civil sanctions available to punish non-compliance and the provision of false or misleading information.
  • Clause 21 applies in relation to clauses 19 and 20.
  • It sets out clear criteria for individuals outside the UK who may be served with information or attendance notices.
  • These include UK nationals, individuals ordinarily resident in the UK, companies incorporated or constituted in the UK, persons carrying on business in the UK, and parties contemplating acquiring qualifying UK entities or assets.
  • The statement addresses clause provisions that involve serving information notices on parties outside the UK.
  • Non-compliance may result in stricter remedies, including blocking or unwinding acquisitions.
  • Concerns are raised about creating an international legal precedent.
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