My Lords, in moving the amendment, which is also in the name of my noble friends Lord Krebs, Lord Mair and Lord Broers, I will speak also to Amendments 481A, 481B to 481D, 482A and 482B.
Bringing the research councils, Innovate UK and Research England together in one organisation, UKRI, opens the possibility of achieving some important benefits, in particular in the areas of: interdisciplinary and cross-disciplinary research, which have not always been well served by the current structure of the research councils, and where many researchers attest that some of the most exciting and potentially far-reaching current developments are happening today; in further improving the links between academia and business; and in making a stronger case to government about the importance of research and innovation to the future success of the UK, to secure the levels of funding that will keep the UK at the top of the league tables for our research while moving us up in terms of innovation—the kind of achievement we have seen today, with the recently announced funding, which we have all been celebrating—thereby ensuring that our outstanding research translates into profitable business for the UK. That is all positive, but for this to be successful the new UKRI organisation will need the existing councils to maintain their own strengths and their diversity while it works more effectively across the councils. The amendments in this group focus on ensuring that we preserve the good things about the councils today while adding the benefits UKRI can bring.
Amendment 479A relates to the structure of the individual councils. Today, they have distinguished independent chairs working with chief executives and relatively large councils made up of distinguished academics, businesspeople and other members. The independent chair is in line with Sir Adrian Cadbury’s advice on governance in his 1992 report: it avoids the concentration of power in one individual, while allowing the chief executive to both present to, and listen to, the high-quality debate at council meetings, without at the same time having to manage the meeting; it ensures that views which the chief executive may not agree with are well aired and discussed; that all relevant issues are included on the agenda; and that all council members are enabled to play their full part. Sir Adrian was looking at the problems of the finance sector but the general principles are valid here too. If these councils are to be engaged in important business, as we all intend they should be, these principles are of particular concern. The presence of an independent chair, rather than a research council head in the role as executive chair, will give the council roles higher perceived
status than simply of an advisory board reporting directly to the chief executive. That will help to maintain the high quality of individuals who compete for appointment to these roles. It will also give the chief executive a critical friend and mentor and provide the council with a senior independent voice into the chief executive of UKRI if the council is concerned about the way things are going.
That is particularly important as regards the independent chair of Innovate UK. At Second Reading, many speakers from all sides of the House, including the noble Baronesses, Lady Neville-Jones, Lady Young of Old Scone, Lady Garden and Lady Rock, and my noble friends Lord Mair and Lord Broers, emphasised the importance of maintaining the business focus of Innovate UK. This was captured in the royal charter of its predecessor, the Technology Strategy Board, which was a body established,
“for purposes connected with research into, and the development and exploitation of, science, technology and new ideas”,
for the benefit of,
“those engaging in business activities in Our United Kingdom”.
Amendment 481A would ensure that the independent chair of Innovate UK came from business, along with the majority of ordinary council members, in line with the earlier remarks of the noble Earl, Lord Selborne. Amendments 481B to 481D would introduce consequential changes.
Amendment 482A would require UKRI to establish an executive committee including all the councils’ chief executives. This seems, in any case, very likely to be something that any new chief executive of UKRI would want to do, but putting it on the face of the Bill, giving it recognition as a key part of the governance and indeed the intelligence of UKRI, would reassure the community in relation to the ongoing importance of the individual research councils. It would also emphasise the important and influential roles of the heads of the new research councils. I beg to move.