National Security and Investment Bill — New Clause 4 — Framework for Understanding National Security — 20 Jan 2021 at 17:00

The majority of MPs voted against a proposed series of factors which the Secretary of State would have to consider when deciding if to forbid an investment, acquisition or merger on grounds of risk to national security.

MPs were considering the National Security and Investment Bill.^[1][2]

The proposed new clause rejected by the majority of MPs in this vote was titled: Framework for understanding national security and stated:

• When assessing a risk to national security for the purposes of this Act, the Secretary of State must have regard to factors including, but not restricted to—
• (a) the potential impact of the trigger event on the UK’s defence capabilities and interests;
• (b) whether the trigger event risks enabling a hostile actor to—
• (i) gain control or significant influence of a part of a critical supply chain, critical national infrastructure, or natural resource;
• (ii) conduct espionage via or exert undue leverage over the target entity;
• (iii) obtain access to sensitive sites or to corrupt processes or systems;
• (c) the characteristics of the acquirer, including whether it is effectively directly or indirectly under the control, or subject to the direction, of a foreign government;
• (d) whether the trigger event adversely impacts the UK’s capability and capacity to maintain security of supply or strategic capability in sectors critical to the UK’s economy or creates a situation of significant economic dependency;
• (e) the potential impact of the trigger event on the transfer of sensitive data, technology or potentially sensitive intellectual property in strategically important sectors, outside of the UK;
• (f) the potential impact of the trigger event on the UK’s international interests and obligations, including compliance with UK legislation on modern slavery and compliance with the UN Genocide Convention;
• (g) the potential of the trigger event to involve or facilitate significant illicit or subversive activities, including terrorism, organised crime, money laundering and tax evasion; and
• (h) whether the trigger event may adversely impact the safety and security of UK citizens or the UK

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• [1] Parliament's webpage on the National Security and Investment Bill , Parliament.uk
• [2] Explanatory notes to the National Security and Investment Bill , 11 November 2020, Parliament.uk

Debate in Parliament |