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Energy Bill

I thank the noble Lord, Lord Puttnam, for tabling the amendment, to which I was pleased to be a signatory. The issues are simple. Our nation is international and operates effectively in a global economy. We are proud of that, and lead many parts of the world, including Europe, in that sense. However, that leadership and globalisation—that openness—requires certain standards for businesses and business ownership. They consist of the classic capital model of decisions being made on the commercial and financial basis of a return to shareholders, whoever they may be, and on a degree of transparency in the whole area of company and corporate reporting. However, there are good reasons to look at that more closely in certain sectors. The defence sector is clearly one and so, increasingly, is the energy sector. Over the past few years, energy security has rightly become a more important and highly regarded area, which we understand better than ever before is important to our national security. I am the last person who would want a clause that could be used for a nationalist, protectionist reason; that is always an issue with this type of clause. It is a question of balance. I will be particularly interested to hear the Government’s response to the possibility of organisations taking over strategic sectors of our energy industry where there is a political rather than commercial objective. Where there is a politically driven agenda, or a sovereign wealth fund whose shareholding and strategic company aims have no transparency whatsoever, there must be a balance between energy security and the open market capitalism and globalisation that this country would generally be proud of. That balance is important in this area, and I welcome this amendment.