OneWeb

Debate between Lord Bowness and Lord Callanan

Wednesday 8th July 2020 Lords Chamber

[Lord Bowness]

To ask Her Majesty’s Government, further to the announcement on 3 July that they will (1) invest $500 million, and (2) take an equity share, in OneWeb, what safeguards are in their agreement with OneWeb to ensure that other shareholders and investors in that company are not hostile to the interests of the United Kingdom.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the investment in OneWeb is still subject to US court approval and regulatory clearances. The Government undertook appropriate due diligence. We will continue to ensure that this ambitious acquisition safeguards the UK’s interests and maximises future opportunities for this innovative technology. The Government have a special share that provides them with the final say over any future sale of the company and over future access to OneWeb technology by other countries on national security grounds.

[Lord Bowness (Con) [V]]

I thank the Minister for his Answer. As I understand it, we are buying a share in a bankrupt British company whose manufacturing and assets base is in the United States under an agreement yet to be approved by a foreign court, i.e. one in New York state. Can the Minister specify the share that we are buying, tell us who the other parties are, and how the capabilities of the satellites which we propose to acquire compare with the US GPS and EU Galileo? Will there need to be much more expenditure to bring this acquisition and its assets up to that standard?

[Lord Callanan]

The Government will invest $500 million, on an equal basis with Bharti Global Ltd. As part of the agreement, a small equity stake will be held by existing OneWeb creditors. This is not specifically designed for global national positioning systems; these satellites operate in a lower orbit for a number of missions, but primarily for earth observations and tele-communications.

European Union (Withdrawal Agreement) Bill

Debate between Lord Bowness and Lord Callanan

Committee: 2nd sitting (Hansard continued) & Committee stage & Committee: 2nd sitting (Hansard continued): House of Lords
Wednesday 15th January 2020 Lords Chamber

[Lord Callanan]

Amendments 27 and 28 in the name of the noble Baroness, Lady Hayter, and Amendment 40 in the name of the noble Lord, Lord Wigley, would all introduce new clauses with a similar purpose. They seek to create statutory roles for Parliament, the devolved Administrations and the devolved legislature in overseeing the future relationship negotiations. It is the view of the Government that the general election has shown that the public support the vision of the political declaration for a comprehensive and ambitious free trade agreement with the EU, and indeed this gives us the mandate to begin negotiations.

As this House will be aware, under the Royal Prerogative the negotiation and making of international trade agreements is a function of the Executive, as indeed in the EU it is a function of the European Commission, a point well emphasised by the noble Lord, Lord Howarth. This enables the UK to speak with a single voice in negotiations and ensures—

[Lord Bowness]

Just in the interests of clarity, is it not true that the European Commission acts on a mandate from the Council—that is, the elected heads of government?

[Lord Callanan]

Yes, it is. I am not quite sure what point the noble Lord is making. It usually acts on a mandate although it is not clear to what extent or what detail will be provided in that mandate.