Sixth Report: Striking the balance: Protecting national security through foreign investment legislation
Select Committee
Foreign Affairs Committee
HC 296
19 January 2021
Government Response (AI assessment · 4 of 4 classified)
Rejected
1
Government response
Tenth Special Report: Striking the balance: Protecting national security through foreign investment legislation: Government Response to the Committee’s Sixth Report · published 26 Feb 2021
Recommendations & Conclusions
4 results
1
Conclusion
Not Addressed
If the Government is not more coordinated and able to think long-term in its approach...
Conclusion
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. (Paragraph 13) Critique of the National Security …
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Government Response Summary
The government's response refers to a committee recommendation (not provided in the item) regarding the clarity of national security risks in legislation, which it rejects, stating it is deliberate not to define 'national security' to allow for rapid responses to evolving threats.
Foreign, Commonwealth & Development Office
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2
Conclusion
Acknowledged
Para 20
The Bill in its current form does not provide sufficiently clear guidance on how national...
Conclusion
The Bill in its current form does not provide sufficiently clear guidance on how national security should be understood. This is likely to hinder targeted application of the new law, with adverse repercussions for the UK’s national security and economy.
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Government Response Summary
The government acknowledges the committee's observation by reiterating its deliberate decision not to define ‘national security’ in the Bill, citing the need for flexibility to respond to evolving risks.
Foreign, Commonwealth & Development Office
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3
Recommendation
Rejected
We recommend that the new legislation should be as clear as possible about what may...
Recommendation
We recommend that the new legislation should be as clear as possible about what may or may not constitute a national security risk in the context of foreign investment. Failure to provide greater clarity would be likely to have significant …
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Government Response Summary
The government rejects providing a definition of ‘national security’ in the Bill, stating this is deliberate to allow for rapid responses to evolving technological, economic, and geopolitical risks.
Foreign, Commonwealth & Development Office
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4
Recommendation
Accepted in Part
Businesses, investors and the Secretary of State and the Investment Security Unit need clarity and...
Recommendation
Businesses, investors and the Secretary of State and the Investment Security Unit need clarity and guidance on the factors that should be considered as part of national security assessments. We recommend that the new legislation and accompanying guidance should clearly …
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Government Response Summary
The government does not believe defining 'national security' is appropriate, but points to the Bill's explicit references and the Secretary of State's Statement (which will be consulted on) as sources of guidance for businesses on how the call-in power will be used, thereby providing clarity on relevant factors.
Foreign, Commonwealth & Development Office
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