Space Industry

Andrew Griffith Excerpts

Wednesday 24th April 2024 Westminster Hall

[The Minister for Science, Research and Innovation (Andrew Griffith)]

It is a delight to be here under your chairmanship, Mrs Murray. I congratulate my hon. Friend the Member for Wyre Forest (Mark Garnier) on initiating this well-attended debate about the all-important UK space industry, as well as on his commitment to and leadership of the all-party parliamentary group. I am myself a former member, and I know how hard-working and formidable his connections are in this domain, together with my hon. Friend the Member for Morecambe and Lunesdale (David Morris).

This is a tremendous week for UK space, and I hope all Members will join me in congratulating astronaut Rosemary Coogan on achieving her space wings and graduating from astronaut school on Monday, together with two other British astronauts, John McFall and Meganne Christian. We hope they all have the opportunity in the coming years to leave this orbit behind and fly into space.

It has been enlightening to hear all the important points that hon. Members have raised in today’s debate, including on the way in which space and its attendant industries touch every single part of the United Kingdom. Today’s debate encapsulates the importance of the subject, from Spaceport Cornwall all the way to the opposite tip of these isles in Shetland and Orkney. There could not be any better examples than that.

Space is important to everybody and is an important economic activity. That is why the Government have a clear set of plans, which I can assure everyone that we are delivering upon daily. In 2021, we published the UK’s first ever cross-Government national space strategy. We are now spending approximately £650 million a year on space, which is an uplift of more than 70% on the amount we spent as a nation in 2018-19. I should be clear that this does not include all the space-related investment and spend on projects via Copernicus, UKRI and the Ministry of Defence.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

As the Minister knows, work continues apace at the Sutherland spaceport. It is interesting to note the recent announcement about the amount of investment that Orbex has attracted. Part of this is private money; when the markets speak, we listen. Returning to the remarks made by the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), it is about skills. The big challenge for us is how we will get the seedcorn we need to develop these homegrown skills. I suggest to the Minister that the Government should showcase proudly everything they are doing on this front, by holding space industry fairs—

[Jamie Stone]

Could I recommend that consideration is given to this in various parts, such as Caithness in my constituency?

[Andrew Griffith]

The hon. Gentleman is absolutely right to champion the spaceport in his constituency and to mention the importance of what is called private space, where companies such as Orbex are pioneering new ways of reaching for the stars. A number of hon. Members have also pointed out the significance of space in making an economic contribution and inspiring future generations. I will take away the hon. Gentleman’s wonderful suggestion of a space youth fair—let us see what we can do together with the UK Space Agency. My hon. Friend the Member for St Austell and Newquay (Steve Double) made exactly the same point about Spaceport Cornwall.

It is often pointed out that the United Kingdom could be more joined up in its space endeavours. The space council, in whichever iteration, brings together other Departments in orbit with the Ministry of Defence so that we can continue to punch above our weight. We have recently opened a joint space command centre for both civilian and military space.

My hon. Friend the Member for St Austell and Newquay mentioned his hard work before Spaceport Cornwall was even established, which is huge testimony to the work he does for his constituents across north Cornwall. He also mentioned Goonhilly and the very significant space cluster that exists in Cornwall. The Government remain extremely supportive of Spaceport Cornwall and all its endeavours, and the point is very well made about the launch capability of the United Kingdom, which I talk about to both the UK Space Agency and the Ministry of Defence in these uncertain times.

Moving to the other end of these isles, the right hon. Member for Orkney and Shetland (Mr Carmichael) talked about Shetland’s spaceport. It does indeed have formidable natural advantages, and so inspired by the opportunity, the Government resolve to do everything they can. That is why my right hon. Friend the Chancellor so significantly put an investment into SaxaVord, subject to reaching acceptable terms. In this very important week for defence spending, I offer this small vignette: the Labour party cut defence and closed RAF Saxa Vord, while this Conservative Government are investing in the future of Shetland. I hope that does not provoke an intervention from the hon. Member for Newcastle upon Tyne Central (Chi Onwurah). [Interruption.] It is a fact. Facts sometimes can be provocative, but they are nevertheless facts.

We are bringing together many UK assets in space in the Harwell science and innovation campus space cluster. While it is also a significant contribution to levelling up, we have published not just the space industrial plan but plans for space clusters and space investment funds. I believe that the hon. Member for Newcastle upon Tyne Central and myself will both be speaking at the North West Space Cluster in June, which will give us both an opportunity to commit to the future of space in that important region of the United Kingdom. As my hon. Friend the Member for Wyre Forest raised a point about Adam Smith, space is at the heart of the comparative advantage and the productivity of this nation.

It is a busy world in space. It is going to be a banner year. We hope to see space launches from European soil from the first time. Just this week, the UK Space Agency announced an £8 million investment in the UK innovation & science seed fund. When my hon. Friend the Member for Wyre Forest opened the debate, he talked about the importance of getting capital to flow and of the connection with the City of London and finance. I hope that £8 million at the earliest stage—the seed and even the pre-seed stage—of the lifecycle could make a real contribution to growing the space supply chain and skills.

We will be responding to the Regulatory Horizons Council report on space well within the allotted timeframe. Before we break for the summer we will be publishing the space workforce skills plan, which the hon. Member for Newcastle upon Tyne Central raised. That is something very close to my heart and, I suspect, to the hearts of other Members. The hon. Member for Strangford (Jim Shannon) has left the Chamber, but Northern Ireland, as with all the regions, is an important part of the space sector. Its legacy and history in aerospace engineering is something that I firmly hope we can continue to bring to bear.

Time is running out and there is so much more we could talk about. We are off to the European Space Agency, and our commitment to that body remains as strong as ever.

[Carol Monaghan]

The Minister has not mentioned visa fees for space experts coming here, nor has he mentioned OneWeb.

[Andrew Griffith]

I would be delighted if the hon. Lady wanted to apply for another debate. I can see that there is a significant appetite to discuss some of these issues. The Government are very committed to maximising the economic and strategic advantage of OneWeb. It is a company that is based here. I have visited it just down the road in Shepherd’s Bush—I think it is still called Shepherd’s Bush. The new White City campus is where thousands of satellites, licensed and regulated out of the UK, are being flown as we speak and delivering all sorts of contributions to society. I am very supportive of the hon. Lady’s contribution to science, so I would love to engage further when we have more time. Mrs Murray is looking at me to say, “Hurry up.”

We will continue to work across this House through organisations such as the all-party parliamentary group, with industry, with the supply chain, and with our partners internationally, both through multilateral forums such as the European Space Agency and bilaterally. We will do all that with the objective of ensuring that the United Kingdom remains a strong spacefaring nation, and that the citizens of this country benefit from the prosperity and the inspiration that comes with space.

Space Industrial Plan

Andrew Griffith Excerpts

Thursday 7th March 2024 Written Statements

[The Minister for Science, Research and Innovation (Andrew Griffith)]

The Department for Science, Innovation and Technology recently passed the one-year milestone since its creation—a year in which we have firmly embedded our mission and delivered against it, driving innovation that will improve public services, create new well-paid jobs, and grow the economy.

The UK is already ranked by the World Bank as the best place to do business among large European nations. Combined with the City of London and the research strengths of our universities, our space sector is poised to support our growth ambitions.

Our commitment to innovation and enterprise, backed by a globally competitive tax regime and smart regulation, uniquely positions us at the forefront of technological advancement and economic growth in space.

For the UK space sector, our “National Space Strategy” encapsulates not just my Department’s mission, but the whole of Government’s ambition to develop one of the world’s most innovative and attractive space economies. As part of that journey, we published “The National Space Strategy in Action” in July 2023, setting out our key next steps on the road to achieving that ambition.

Today we take another a significant step towards unlocking growth and developing resilience in the UK space sector, with the publication of Government’s space industrial plan.

Building on the foundations of our national and defence space strategies, the space industrial plan is a joint civil and defence publication that sets out our new way of working with the commercial space sector, modernising our approach, and giving the sector greater confidence to invest. We set out clear, timed missions and actions deliverable through a shared endeavour with the sector to address the long-term problems facing the nation: improving economic security and opportunity for everyone.

This plan sends a strong demand signal to, and provides clarity for, UK space companies and investors, giving them the confidence to invest long term in the sector. We have been decisive in sequencing the first five national space capability goals where we want the UK to excel, agreed by the National Space Council. These capabilities will support UK Government in fulfilling their commitments and legal obligations, target the specific needs of the citizen, and drive our future ambitions to unlock new markets. These capabilities are underpinned by a set of intervention areas, describing how we will utilise our main Government levers to shape the business environment in pursuit of our ambitions.

We have heard and understood the challenges facing UK space companies, and we want the world’s space entrepreneurs and innovators to come to the UK because it offers the best possible place to make their visions happen.

We are committed to making the UK the most attractive country for space industry investment, driving prosperity and security across the nation.

I will be placing copies of this publication in the Libraries of both Houses, and it will also be made available on gov.uk.

[HCWS315]

Animal Testing

Andrew Griffith Excerpts

Monday 19th February 2024 Westminster Hall

[The Minister for Science, Research and Innovation (Andrew Griffith)]

It is a pleasure to serve under your chairmanship, Dame Caroline, and I thank my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) for opening today’s important debate. As this is the first time I have spoken since, let me also commend him for his personal bravery when he spoke at the most recent Prime Minister’s questions.

The number of signatories to these petitions—I think almost all hon. Members have mentioned it—indicates the strength of public feeling on this matter. This is not the first time that this issue has been debated, although it is my first time. Although I think none of us would want such a debate to become an annual event, this is absolutely the right forum in which to debate these important matters. I therefore congratulate all those who have contributed and everybody who has signed the petitions.

I completely understand that the use of animals in science, including in toxicity testing, is a sensitive issue. More than that, I believe that everyone here would share my view that the day cannot come quickly enough when we are able to end the practice of animal testing. It is to hasten that moment that, as hon. Members have observed, the UK is one of the world’s leading nations in the development of non-animal methods. The Government are keen to ensure that those are utilised wherever possible, and I heard some frustration or concern from colleagues about the pace of adoption where the scientific methods exist. It is fair to say that most hon. Members accept—I have met charities and organisations working in the sector, including Animal Free Research UK—that we are not quite at that moment when we can fully replace animal testing.

To a degree, we are all in what my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) eloquently called that “mess of complexity”, but that does not mean that we are not clear about the direction of travel and the goal that we seek over time. As the Science and Research Minister, I take extremely seriously my responsibility within the multiple Departments that my right hon. Friend the Member for Camborne and Redruth (George Eustice) talked about.

The Government are supporting and accelerating advances in biomedical science and technology to reduce reliance on the use of animals in research. When we hear data points about the percentage of research money that is spent, it is important to remember that not all of that research is clearly labelled as non-animal research. Developments in respect of artificial intelligence, cell cultures, cell research, understanding the function of human organs, and better imaging can all contribute to the advance of non-animal methods that can be put to work in this space. Indeed, we heard from the hon. Member for Newcastle ex vivo analysis upon Tyne Central (Chi Onwurah) about the very successful spin-out from her university, and we are seeing that sort of development elsewhere. As my right hon. Friend the Member for Camborne and Redruth said, the rate of growth has been exponential, and this is an amazing moment in science of all kinds. There have been extraordinary advances in non-invasive techniques, such as medical imaging, sensing and ex vivo analysis, which are revolutionising human healthcare.

Through UK Research and Innovation, the Government are actively supporting and funding the development and dissemination of the three Rs, and I will have more to say about that later. Anyone who was not familiar with the three Rs when they came here today is probably more familiar with them now. They stand, first, for the replacement of the use of animals where it is not necessary for research, which I think is the aim we all share. Then, there is the reduction in the use of animals in the meantime, and the latest figures I have, which are slightly more recent than the ones my hon. Friend the Member for Carshalton and Wallington referred to, show a 10% reduction in the use of animals in research. I do not want to over-weight any particular year’s numbers, and we will have to look through and see the continued reduction we all seek. However, the latest data I have, for 2022, showed a 10% reduction. Finally, in addition to replacement and reduction, there is refinement to eliminate or reduce distress to those animals that are involved. All of that is achieved primarily, but not exclusively, through the approximately £10 million of funding per year that goes to NC3Rs, the national centre for the three Rs. We heard of other examples, including Queen Mary University of London’s centre for animal research, which is also doing great work in this area.

We have also heard that the use of animals in science lies at the intersection of two important public goals. There are the benefits to humans and animals—a lot of the research benefits animals themselves—and to the environment, as we seek to have the very highest standards of environmental protection. But we must also balance that with the UK’s proud commitment to the highest possible levels of animal welfare. That is why, as we heard from a number of Members, the use of animals in testing is strictly limited to specific purposes, including assessing the safety of medicines or chemicals, protecting human health and protecting the environment—a lot of research goes on into compounds to understand their downstream effect on our rivers, lakes, oceans and natural habitats.

We also heard that the use of animals in scientific procedures is permitted only if there is no non-animal alternative available, and I will try to address some of the remarks that have been made specifically about the way in which that legal principle, laid down by Parliament in legislation, is applied in practice and whether it is as effective as my right hon. Friend the Member for Camborne and Redruth would like.

Despite the general legal protections, some animal testing of chemicals is required under UK law to protect the environment, but such testing is permitted only once it is established that no alternative exists, and it is dependent on the chemical and quantity being manufactured.

As I said, we are world-renowned for our leadership in this space, and we should continue to be alive and open to what other countries are doing. The example of Canada was mentioned, and some of the work I have done and the meetings I have had have focused precisely on how we can ensure that the UK remains the best place in the world in terms of the legislative framework and the science and how we can ensure that non-animal technologies and the constant advances in them are reflected in policy, practice, legislation in this place and animal research regulations.

Since it was established, the NC3Rs has invested in total almost £90 million in research and £27 million in contracts through its CRACK IT Challenges innovation scheme for UK and EU-based institutions, with that funding mainly focused on approaches for safer assessment of pharmaceuticals. The UKRI Biotechnology and Biological Sciences Council—a different body—supports research aimed at developing and applying innovative methods to study human and animal physiology, including in silico approaches, organ on a chip, and organoid and other advanced cell culture systems.

Despite that funding, I believe that more can be done. Ahead of today’s debate, I asked UKRI that we double our investment in research to achieve the three Rs and develop non-animal alternatives. I can announce that, from £10 million this year, that investment will reach £20 million per annum across the system in fiscal year 2024-25, which is a doubling of what is given to research in this space. In addition—I hope this is welcome across the House—I can announce that this summer, following on from work done by my predecessors and across other Departments, the Government will publish a plan to accelerate the development, validation and uptake of technologies and methods to reduce reliance on the use of animals in science. The former Minister, my right hon. Friend the Member for Camborne and Redruth, will recognise some of the impedance on a Minister at the Dispatch Box, but I can see no reason why that plan could not at least consider some of the machinery-of-government changes that he talked about.

[George Eustice]

I think everyone will welcome the significant increase in funding that the Minister has pledged today to support research on non-animal methods, but is his Department at all curious why the number of animals used in experiments has not gone down, despite huge increases in technology in this area? As part of a review of the licensing process for projects, would he consider trying to get us some analysis of whether the decision to grant a licence is objective, or subjective and based on something that some ethical committee claims?

[Andrew Griffith]

My right hon. Friend makes a very good set of points, and that is something that we will look at further. I am already in discussion about the efficacy of the licensing regime with the noble Lord Sharpe, who is the Home Office Minister responsible.

[Patricia Gibson]

As the Minister stands here today, how confident is he that the regulatory bodies that monitor these matters are sufficiently well versed and up to date with placement and reduction opportunities to prevent unnecessary testing? Does he have confidence in that system?

[Andrew Griffith]

The hon. Lady asks a very detailed question, and she has made some statements that I would like to verify anyway. I was concerned to hear about dogs being shot or blown up and I would ask her, if she has evidence of that, please to share it with me. That would be a subject of great concern and perhaps bring to life some points in the regulatory system that have not crossed my desk to date. I take that matter very seriously, but it is also important that these debates are led by the facts, and I will let the facts decide the efficacy of the regulatory system.

We will produce the plan together with not only officials but the very widest group of stakeholders. In the coming weeks, a cross-Government group will convene to lead that work, and we will consult stakeholders across the industry, academia, medical research charities and those operating in this space. The commitment is to publish that detailed plan this summer.

Given the support for the petitions and the strong interest in this issue, on which Members of Parliament are regularly petitioned, I can announce today that we will restart the public attitudes to animal research survey, which was unfortunately delayed during the pandemic. It is important to me, and I am sure to the House, that these debates are informed by that survey. It was seen as a very useful tool for those working in this space, and I am keen that it is restarted. The next survey will take place in the coming months and the results will be published this autumn, restarting that chronological series about public attitudes.

We talked about how animals in science are highly regulated, and I hear the concerns about that process. Understandably, as with any regulatory process, different people will have different views about efficacy. There is a three-tier system of licensing, at the establishment, project and individual level. Again, I thought that my right hon. Friend the Member for Camborne and Redruth made a very thoughtful contribution; perhaps I will meet him to benefit from some of his insights on that. He talked about the importance of having qualified vets in the process. It is important to say that there are qualified vets, and the Animals in Science Committee oversees that process and advises the Home Office on it.

However, endemic in any regulatory or licensing regime is the danger—I do not say that this is indeed the case— of incumbent thinking. My right hon. Friend talked about there not being enough challenge in the process. One potential way of putting in more challenge—or nudging—is increasing the fees for licences, which the Home Office is going to do shortly. My right hon. Friend talked about a levy. This is not a levy, but by increasing the fees, and therefore the burden, we will perhaps shift some of the presumption away from defaulting to testing with animals.

In addition, the Home Office will review the duration of licences. The current duration is typically five years. We have observed the fast rate of change in technology. The Home Office will review the duration to see whether a shorter licence period would be more appropriate, and whether people coming back more often would put more challenge into the system.

In conclusion, I want to be clear: it is the Government’s position that we want to replace the use of animals in scientific procedures with non-animal alternatives wherever we can. For now, the carefully regulated use of animals in scientific research remains necessary if we are to protect humans and the wider environment. That is why our current approach is to continue to support and fund the development, dissemination and adoption of techniques that replace, reduce and refine the use of animals in research, and to ensure that the regulatory framework is both robust in law and rigorous in practice. I thank hon. Members for their insightful and thoughtful contributions to today’s debate, and I look forward to working together going forward.

Government Chemist Review 2022

Andrew Griffith Excerpts

Tuesday 19th December 2023 Written Statements

[The Minister for Science, Research and Innovation (Andrew Griffith)]

The 26th annual review of the Government Chemist has been received. The review will be placed in the Libraries of both Houses plus those of the devolved Administrations in Wales and Northern Ireland. The review will also be laid before the Scottish Parliament.

The Government Chemist is the referee analyst named in Acts of Parliament. The Government Chemist’s team carry out metrology analysis in legally disputed cases. A range of referee analysis work was carried out during 2022, which included evaluations of kitchen utensils for primary aromatic amines, scrutinising pesticide protection measurements for tea and flaxseed imports, and detection of aflatoxin in in-shell peanuts and curry powder. The Government Chemist continues to work closely with Government Departments, their governance group, devolved Administrations, non-governmental organisations and industry to identify tools, standards and guidance to facilitate effective testing for food fraud and to grow knowledge transfer activities.

[HCWS153]

Engineering Biology

Andrew Griffith Excerpts

Tuesday 5th December 2023 Written Statements

[The Minister for Science, Research and Innovation (Andrew Griffith)]

Since its creation, the Department for Science, Innovation and Technology has been working to cement the UK as a science superpower by creating the most innovative economy in the world. At the centre of this mission are five critical technologies that will deliver prosperity and security for the UK and deliver benefits to global society: engineering biology, quantum technologies, artificial intelligence, semiconductors and future telecommunications.

We are today publishing the “National Vision for Engineering Biology”, which outlines how engineering, or synthetic, biology will contribute to the UK’s growth, security, resilience and preparedness.

This vision responds to the Government’s recent call for evidence on engineering biology. It reflects what we heard about the UK’s strengths, challenges and opportunities. It defines the Government’s collective ambition for engineering biology, and sets the directions in which Government investment, policy and regulatory reform will deliver through the strands of the science and technology framework.

The Government define engineering biology as the design, scaling and commercialisation of biology-derived products and services that can create whole new categories of product or produce existing products more sustainably. It draws on the tools of synthetic biology to create the next wave of innovation in the bioeconomy. In addition to its economic benefits, engineering biology supports policy objectives across Government, including contributing to improvements in health, food security, environmental protection and the transition to a lower-carbon economy. This is a pivotal moment for engineering biology. Global leading nations are ramping up efforts to grow their sovereign bioeconomy capabilities and capture the economic benefits. The US and China have made ambitious statements of intent, and our international peers are investing significant sums to carve out strategic positions in the emerging global bioeconomy. At the same time, there is increasing recognition that countries need to apply engineering biology predictably, safely and responsibly to capture its full economic and societal potential for their populations. Engineering biology is a dual-use technology, and all Governments will need to adopt sensible, proportionate precautions.

The Government’s vision is for the UK to have a broad, rich engineering biology ecosystem that can safely develop and commercialise the many opportunities to come from the technology and the underlying science. We aim to gain as much economic value, security, resilience and preparedness as possible from our hard-won strengths and ensure that these create real benefits for the public. We will also move further and faster to put the UK right at the very forefront of global efforts to drive responsible and trustworthy innovation across the world. By addressing the social and ethical questions that may be raised by certain applications, we will ensure that we earn the trust of the public and consumers as we unlock the opportunities of this technology. At the same time, there is increasing recognition that countries need to apply engineering biology predictably, safely and responsibly, gripping this technology’s risks in order to capture its full economic and societal potential for their populations.

The Government will focus on six priorities to achieve this vision: world-leading research and development; infrastructure; talent and skills; regulations and standards; adoption by the broader economy; and responsible and trustworthy innovation. For each of these areas, DSIT has already started convening partners across Government and our research funding councils to understand the challenges and opportunities and to identify the support that the Government should provide.

Following publication of this vision, the Government will develop a clear plan of action for delivering the vision. Copies of the “National Vision for Engineering Biology” and the technical annex will be placed in the Libraries of both Houses.

[HCWS91]

Draft Design Right, Artist’s Resale Right and Copyright (Amendment) Regulations 2023 Draft Intellectual Property (Exhaustion of Rights) (Amendment) Regulations 2023

Andrew Griffith Excerpts

Wednesday 22nd November 2023 General Committees

[The Minister of State, Department for Science, Innovation and Technology (Andrew Griffith)]

I beg to move,

That the Committee has considered the draft Design Right, Artist’s Resale Right and Copyright (Amendment) Regulations 2023.

[The Chair]

With this it will be convenient to consider the draft Intellectual Property (Exhaustion of Rights) (Amendment) Regulations 2023.

[Andrew Griffith]

Good morning, Mrs Cummins; it is a pleasure to serve once again under your chairmanship.

Intellectual property underpins our economy: it is the means by which businesses and individuals can commercialise their ideas, turning them into products and artistic impressions. IP drives innovation and investment, which, as set out in the Government’s innovation strategy, is vital to tackling the world’s largest challenges. Industries with an above average use of intellectual property contribute almost a quarter of UK output, 16% of UK employment and over half of goods exports. IP is crucial to support the Government’s long-term vision to cement the UK as a science and technology superpower and a global leader in innovation. Maintaining the current system is crucial to supporting innovation across the economy.

The draft regulations before the Committee use powers contained in the Retained EU Law (Revocation and Reform) Act 2023, or REUL, to amend or restate certain provisions in IP legislation. They make modest and targeted changes to the benefit of our IP framework in line with the aims of that Act. I will take each set of draft regulations in turn.

Subject to the Committee’s approval, the Design Right, Artist’s Resale Right and Copyright (Amendment) Regulations 2023 will amend provisions in four pieces of IP legislation, and I will explain more about these. The Design Right (Semiconductor Topographies) Regulations 1989 provide protection for designs that are semiconductor topographies, implementing international obligations under the World Trade Organisation TRIPS—trade-related aspects of intellectual property rights—agreement. Semiconductor topography design right is an IP right intended to protect the design of specific semiconductor products—for example, printed circuit boards—which can be relatively easy to copy.

In the UK, the law treats the protection of topographies of semiconductor products as a form of unregistered design right and extends protection to persons from certain qualifying countries. WTO members that are not EU member states are included as qualifying countries by being listed in the schedule to the regulations. The proposed amendment does not alter the design right but is simply intended to remove the need for further legislation to update the schedule when new countries join the WTO, to save parliamentary time.

The Artist’s Resale Right Regulations 2006 provide the basis for an artist’s resale right in the UK. ARR is a form of IP protection related to copyright. It gives creators of visual art, such as paintings or sculptures, an unwaivable statutory right to receive a royalty when their works are resold in the secondary market. The proposed amendments directly replace references to euros in ARR royalty calculations with pounds sterling and are intended to reduce regulatory burdens and costs for UK businesses. A transitional provision has been included so that this change will apply from 1 April 2024, which will allow industry time to prepare and adapt to the changes, in line with advice from the collective management organisations that administer ARR payment schedules.

The Copyright Tribunal Rules 2010 set out the rules of procedure for the copyright tribunal, which adjudicates on various commercial copyright licensing disputes, particularly concerning the terms of licensing schemes for copyright material. The amendments proposed by this instrument will mean a respondent or intervener in a copyright tribunal case will be required to provide an address for service in the UK rather than one located in the European economic area.

Lastly, the Collective Management of Copyright (EU Directive) Regulations 2016 set minimum standards for the governance, transparency and behaviour of collective management organisations established in the UK. CMOs operate as companies and are therefore subject to domestic company law. The amendments proposed by this instrument will reduce the regulatory burden on those CMOs, which qualifies small companies by exempting them from the requirement to audit the accounting information provided in annual transparency reports. The regulations also redefine other exemptions so that they apply to CMOs that qualify as a micro entity under the Companies Act 2006. That will include the removal of references to euros.

I now turn briefly to the draft Intellectual Property (Exhaustion of Rights) (Amendment) Regulations 2023. It is important to maintain a balanced, consistent and stable IP framework. An essential mechanism that provides this balance in our IP system is called the exhaustion of IP rights. Put simply, IP rights enable their owners to control the first sale of their creation, but our exhaustion of IP rights regime ensures that, once a good is lawfully placed on the market, the rights holder can no longer use their IP rights to control the subsequent distribution or resale of that good.

For example, after someone purchases a book, the copyright owner cannot stop them from selling that book to another person in the same territory. A functioning exhaustion regime is therefore crucial for commerce in our modern economy. The mechanism also underpins the rules on parallel imports, which are the importation of genuine IP-protected physical goods that have already been put on the market in other countries—medicines, for example.

After we left the European Union exhaustion of IP rights regime, the Government created a bespoke, unique, regional exhaustion regime. Under that regime, once a good is lawfully placed on the market in the UK or the European economic area, the relevant IP rights in that good are considered exhausted. The regime was created to provide certainty for businesses and consumers while the Government consulted on what the UK’s future exhaustion regime should be.

Our current exhaustion regime relies on retained EU law, which will no longer exist from 31 December 2023; without replacing that, our exhaustion regime would not operate effectively from the end of this year. That could create uncertainty about the operability of rules for IP-protected goods, which may impact on supply chains and create a chilling effect on commerce and investment in the UK. Our position is that Parliament must act now to ensure that the UK does have a functioning exhaustion regime from the end of this year onwards. These regulations achieve that purpose. Subject to the Committee’s approval, the regulations restate certain retained EU law to ensure the continued operation of that regime, but without making substantial changes to the policy area. That also achieves the aim of the rule by making our exhaustion laws more befitting for the UK statute book and only restate retained EU law that is necessary for the continued operation of the regime.

In terms of the impact of these regulations, consumers and businesses should not see any significant changes to trading practice, because in substance they ensure a continuation of the current regime that has been in place since 2021.

[Nigel Mills (Amber Valley) (Con)]

Can the Minister tell us how this applies to electronic sales? If I buy a book on a Kindle, it is always very hard for me to pass on to somebody else. Is that a right I do or should have under these regulations?

Secondly, is this regional principle now the Government’s policy? Does the Minister think a Europe-wide territory for exhaustion is the right answer, or are we going to look at this in our trade deals and try to expand that region to, say, the whole of the comprehensive and progressive agreement for trans-Pacific travel partnership as well?

[Andrew Griffith]

I will address the first, technical point in my winding up. I was about to come to the fact that the Government have consulted but have not listened to industry’s views about what a go-forward exhaustion regime post our departure from the European Union looks like. The regulations that the Committee is asked to approve today effectively maintain a continuation, to provide that certainty. The Government will respond to that consultation, in due course, to directly address the question asked by my hon. Friend the Member for Amber Valley. As part of that, there will be consideration of the relative merits of extending that territory to include new territories such as the CPTPP.

I hope that hon. Members on both sides will reflect on the fact that this is a complex area; it is very much determined by an interlocking web of international rules and treaties, and I think that it is right that the House should proceed cautiously, given the importance of IP protection to the UK’s economy. My hon. Friend makes an important point, and I hope that we can move forward on that, in collaboration with industry and on a cross-party basis, to provide the opportunities that are there for the UK.

In conclusion, this set of regulations seeks to use powers contained in the Retained EU Law (Revocation and Reform) Act 2023 to introduce only targeted changes, at this stage. Those changes will ensure that rights holders, businesses and consumers can continue to have certainty and confidence in the UK’s IP framework.

--- Later in debate ---

[Andrew Griffith]

I thank the hon. Member for Reading East for his comments and for rightly highlighting the importance of intellectual property to the UK economy. I will happily write to him. The Government consulted extensively on the reforms to collective management organisations. This change affects only the smallest CMOs and, as Members would expect, it seeks to get the right balance between protecting rights holders—there is no desire to see a diminution in rights holders’ ability to get the transparency they need and achieve fair recompense—and reducing some of the burdens on the smallest CMOs. The hon. Gentleman knows the seven smallest CMOs affected by this change.

I will write to the hon. Gentleman about the very important issue of AI training. We will again ensure that rights holders are fully affected. He has spent significant time on that important issue, as has the Department, and I will continue to engage on it.

My hon. Friend the Member for Amber Valley asked about the scope of the regulations and whether they extend to digital content. He used the example of the Kindle. That is not dealt with by these regulations, which are about the protection of IP in a physical form. There are separate regulations and copyright laws that deal with that issue. That illustrates the complexity, and it is right that, rather than move too quickly, we take the time to look at the interlocking tapestry.

[Ian Lavery (Wansbeck) (Lab)]

For the sake of clarity, will the Minister inform the Committee what sort of exhaustion regime the Government intend to introduce? When is that likely to happen?

[Andrew Griffith]

As I said in my remarks, the Government are consulting on that, and it is right that we take the time. To be transparent, I cannot give the hon. Gentleman a specific time and date. The issue is complex, and officials are working through when that is, but we have consulted and that regime will come. I hope we all agree that it is more important to be right than to be fast in this domain; that is certainly the strong message that we hear from industry.

In the meantime, the regulations, if the Committee supports them today, will provide valuable certainty to industry. The last thing anyone wants is for us to go into the start of next year with uncertainty. These regulations give us the opportunity to take the time. If the hon. Gentleman wants to make representations, I will be happy to entertain them. Hon. Members on both sides of the House engage very strongly with the industry, and I hope that when we reach agreement on what the regime looks like, we can do it on as much of a cross-party basis as possible.

Question put and agreed to.

Draft Intellectual Property (Exhaustion of Rights) (Amendment) Regulations 2023

Resolved,

That the Committee has considered the draft Intellectual Property (Exhaustion of Rights) (Amendment) Regulations 2023.—(Andrew Griffith.)