Lord Hanson of Flint (Lab)

My Lords, I am grateful both to the contributors to this short debate and for the broad support that has been given for the regulations before the Committee. I will try to answer each noble Lord in turn. There might be a bit of overlap, because some of the issues that have been raised do overlap, but I will try to cover the points raised by each noble Lord in turn. I shall start with my noble friend Lord Stansgate, who mentioned cyber and cyberattacks. I assure him that the security services, the agencies, the Home Office and the UK Government are acutely aware of hostile states potentially undertaking attacks, and of criminal gangs doing the same. Significant work, which my noble friend would not expect me to talk about in public, is ongoing to ensure the safety and security of our citizens. I give him that assurance as a whole. My noble friend asked in particular about the exemptions for students and the impact on small businesses or small organisations. I will take the latter first. The registration process is designed to be as simple as possible—this touches on a point mentioned by the noble Lord, Lord Davies. The Home Office anticipates that the process should take a maximum of 30 minutes. We are not expecting small businesses or micro-businesses to register in large numbers if they are in direct relationships with foreign powers, but—again, this goes to a point made by a number of noble Lords—there is comprehensive guidance online to support the registrant and their process, and to support individuals and larger organisations. The proof of the pudding will be in the eating, self-evidently, but we are confident that that will be a relatively simple process from 1 July onwards. Again, I put out the hand of friendship to all noble Lords: if there is feedback downstream on how the scheme operates, from any perspective that is brought to their attention, we would welcome it. My noble friend Lord Stansgate also asked for clarification on the education exemption. Where someone is in an arrangement with a foreign power and is completing a course in further study, they do not necessarily need to register activities, but it is reasonable to complete the course of education; to uphold the reputation of the provider; to meet the standards of conduct expected by the providers of financial assistance; and to notify any person of personal information. Again, I hope that that is helpful. My noble friend Lord Stansgate and the noble Lords, Lord Purvis of Tweed and Lord Davies of Gower, mentioned China. I may as well hit that point and discuss it at this time. I think that they all know the answer to the question they asked, but I will give it in the phraseology I have to use. Each country is considered on its merits and no decisions have been made. Countries are considered separately for specification and decisions are made on evidence. On China more broadly, we have been clear as a Government that we are going to take a consistent, long-term, strategic approach to managing the UK’s relations with China. This means co-operating where we can, competing where we need to and challenging robustly where we must, including on areas of national security. However, each country is considered on its merits and no decisions have been made. The regulations before the Committee highlight two specific nations where we believe there is a significant threat—Russia and Iran—which is why we have brought them forward. I hope that helps my noble friend Lord Stansgate on his points. I am pleased to see my noble friend Lord Cryer continuing his long interest in issues related to Iran. I know that he has raised this in the Chamber on a number of occasions. He asked what happens if there is a failure to register. That will be a criminal offence in the event of an individual’s activities coming to light linked to a registered nation under the regulations before us today and will carry a potential penalty of five years’ imprisonment. That is not for me to judge. That is for the courts to judge and the police to prosecute, but that is certainly part of this issue today. My noble friend mentioned in particular the impact on parliamentarians. There is no requirement for parliamentarians who are being lobbied to register with the scheme, and that allows the democratic process to continue. He commented on proscription and mentioned Hamas. Hamas is not specified. The regulations would cover anyone in a relationship with the IRGC in Iran but, as ever, for any organisation, at any time, the Government keep under review the question of proscription. At the moment, this is where we are, but we keep everything under review at all times accordingly. As my noble friend will know, the arrests on 17 May of three Iranian nationals who have been charged with offences under the National Security Act show that the Government are consistent. That matter will go before the courts and be determined by the judiciary in due course. My noble friend also mentioned proxies. Although I have touched on this, I think it is important that I say that it is the person who is in a relationship with the foreign power who has to register. Therefore, those who are proxies are within the scheme, for example, companies acting under the direction of the Russians or the Iranians. If the proxy is not registered, then the person in the UK acting on their behalf could well be committing an offence. Again, it is our intention to ensure that we act in the interests of national security and of the United Kingdom as a whole. The noble Lord, Lord Purvis, raised a number of points. Again, I am grateful for his broad support and thank him for that support to date and in getting the legislation in this House in the past. He mentioned commercial interests and asked whether this is a high bar. Let me, I hope, reassure him that the Government’s intention is that it should be a high bar. UK companies providing services to bodies listed will have to register. The exemptions are carefully crafted to ensure that what is out of scope is as narrow as possible, while still fulfilling the scheme’s aim. We have put in place exemptions on sovereign wealth funds, which he talked about. The exemption for sovereign wealth funds is not about prioritising growth over national security as national security remains the first priority of Government, but about ensuring that the scheme remains proportionate. The link between a sovereign wealth fund and a foreign power is inherently transparent, so requiring them to register with the scheme would bring very limited benefits. I hope that answers his point.