Advanced Research And Invention Agency Act 2022

Commentary on provisions of Act

The Advanced Research and Invention Agency

Section 1: Establishment of ARIA

11. This section establishes a body corporate called Advanced Research and Invention Agency which is referred to as "ARIA" in the Act and Explanatory Notes.
12. Schedule 1 provides detail on how ARIA is structured and how it will operate.

Section 2: ARIA’s functions

13. This section states that ARIA may, or commission or support others to, conduct scientific research, develop and exploit scientific knowledge and collect, share, publish and advance scientific knowledge. See section 11 (Interpretation) for the meaning of "scientific research" and "scientific knowledge". The ability to perform these activities in its own right, in addition to supporting others to do them, provides the flexibility to enable a wide variety of project and programme structures and arrangements with partners in academic and industry settings.
14. Subsection (1)(a) allows ARIA to conduct scientific research, which will enable it to pursue discovery-focused activities. ARIA may commission or support others to do the same.
15. Subsection (1)(b) empowers ARIA to develop and exploit scientific knowledge which will enable it to use scientific research for the purposes of creating prototypes or introducing products to market. ARIA may commission or support others to do the same. ARIA may take an equity stake in a company with which it has partnered to conduct basic research with the intent of bringing a product to market, for example. ARIA may continue to provide technological input after a product has gone to market.
16. Subsection (1)(c) allows ARIA to disseminate scientific knowledge by convening conferences or seminars, or publish a range of materials for different audiences. ARIA may commission or support others to do the same. These activities may bring people and organisations together which might not otherwise partner for the purpose of advancing scientific knowledge.
17. In exercising its functions to support others, ARIA may provide financial support including making grants, loans, investments in companies or other entities, or any other payments including prizes. The provision of financial support is subject to any conditions which are attached to grant funding given by the Secretary of State to ARIA under section 4. It may also make available rights or other property, for example, a patent that ARIA had obtained. See Paragraph 17 of Schedule 1 for ARIA’s supplementary powers.
18. Subsection 3 allows ARIA to attach conditions to its provision of financial support or making of property available. This subsection gives ARIA a general power to attach the conditions it deems appropriate, although a number of examples of such conditions are listed in particular.
19. In performing the functions in section 2, ARIA is not restricted to activities the United Kingdom (UK). However, ARIA must have regard to the desirability of doing so for the benefit of the United Kingdom through:
    1. contributing to economic growth, or an economic benefit, in the UK;
    2. promoting scientific innovation and invention in the UK; or
    3. improving the quality of life in the UK (or in the UK and elsewhere).

Section 3: Ambitious research, development and exploitation: tolerance to failure

20. This section states that in exercising its functions, ARIA’s may give particular weight to the potential for significant benefits to be achieved or facilitated through scientific research, or the development and exploitation of scientific knowledge, that carries a high risk of failure.
21. ARIA may set highly ambitious research goals which, if achieved, would bring about transformative scientific and technological advances. These advances would yield significant economic and social benefit. As these goals may be highly ambitious it is likely that only a small fraction would be fully realised. The Act allows ARIA to have a high tolerance to project failure.
22. The ambitious research goals may require multi-year programmes of work where pay-back may be highly uncertain and success may not be realised for some years. It is likely that at least a proportion of projects are ones that would not be undertaken by other bodies. ARIA may fund work in areas which are untested and untried, but where it has identified opportunities that best suit its ambitious research goals.
23. In performing these functions, the forms of support undertaken by ARIA may themselves carry high risk, for example, taking equity stake in a start-up company.
24. Although ambitious research goals might not ultimately be achieved, ARIA will take value from project failures, including spillover benefits gained from intermediary outputs. For example, a particular goal may not prove achievable but, in pursuing it, scientific challenges may be partially solved, with wider application, or promising areas of future inquiry and technology development may be identified.
25. Furthermore, in pursuing highly ambitious research goals, ARIA will be able to bring together high-calibre individuals and bodies from across the public and private sector R&D communities which might not otherwise have been brought together. These connections may endure, spurring future innovation under the leadership of ARIA or others.

Section 4: Grants to ARIA from the Secretary of State

26. This section provides the Secretary of State with a grant funding power in relation to ARIA. The Secretary of State can make grants subject to conditions.
27. ARIA will be funded through grant in aid, through BEIS’ departmental estimate. Conditions are typically attached to grant in aid funding by the Accounting Officer, through letters of allocation and delegation, requiring financial resources to be managed in line with the principles of Managing Public Money, for example.

Section 5: National security directions

28. This section provides the Secretary of State with a power to direct ARIA where it is necessary or expedient in the interests of national security. This could take the form of directions generally or directions in a particular case. For example, the Secretary of State might direct ARIA to stop certain activities or a particular partnership in the interests of national security. A direction may be variable or revoked. ARIA must comply with a direction given under this section.

Section 6: Information

29. ARIA must provide the Secretary of State with information specified for the purposes of or in connection with their functions in relation to ARIA. These include, but are not limited to, national security direction-making powers, the provision of grants to ARIA from the Secretary of State, and Secretary of State appointments of ARIA members.
30. The information provided by ARIA must be provided in a form that is required by the Secretary of State.
31. This section provides that ARIA is not required to disclose information if it contravenes data protection legislation or where a claim to legal professional privilege could be maintained in legal proceedings.

Section 7: Transfer schemes

32. This section introduces Schedule 2, which contains provision about schemes for the transfer of staff and property, rights and liabilities to ARIA.

Section 8: Power to dissolve ARIA

33. This section allows the Secretary of State to make provision by regulations for the dissolution of ARIA at any time after the date on which ten years have elapsed since the passing of the Act. Before making regulations, the Secretary of State must consult ARIA and other persons that the Secretary of State considers appropriate.
34. Subsection (4) makes broad provision as to what the regulations may include. This empowers the Secretary of State to wind up the body completely, for example by transferring assets out of ARIA or extinguishing liabilities held by or owed to ARIA. This may be useful in the event, for example, that ARIA has continuing contracts for office services. In the event that a person suffers loss or damage as a result of dissolution, the regulations may make provision for the Secretary of State or ARIA to pay compensation to that person.
35. Subsection (6) provides that the regulations may transfer employee rights and liabilities, but this may not affect the operation of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).
36. As part of dissolving ARIA, regulations made under this section can modify other legislation, including primary legislation, whenever passed or made. This allows, for example, references to ARIA that might exist in future legislation to be changed or removed, in the event that the power to dissolve ARIA in section 8 is exercised in ten years or more’s time. Definitions of "modify" and "primary legislation" are given in subsection (8).

Consequential amendments

Section 9: Consequential amendments

37. This section introduces Schedule 3, which makes consequential amendments.

General

Section 10: Regulations

38. This section sets out the parliamentary procedures to which the various delegated legislative powers under this Act are subject. Regulations dissolving ARIA made under section 8 are subject to the draft affirmative procedure. Section 10 also sets out the extent of the different regulation-making powers, for example in relation to consequential, supplementary or incidental matters.

Section 11: Interpretation

39. This section explains that "functions" includes powers and duties. "Scientific knowledge" and "scientific research" are also defined. The latter has the same meaning as s.6(1) of the Science and Technology Act 1965. These are broad definitions which include the social sciences.

Section 12: Extent

40. This Act extends to England and Wales, Scotland and Northern Ireland.

Section 13: Commencement

41. See paragraphs 63-64 below.

Section 14: Short title

42. This section is self-explanatory.

Schedules

Schedule 1: The Advanced Research and Invention Agency

43. Paragraph 1 sets out that ARIA is separate and distinct from the Crown. ARIA’s property does not belong to, nor is being held by ARIA on behalf of, the Crown.
44. Paragraph 2 describes ARIA’s membership. Executive members include the Chief Executive Officer, the Chief Financial Officer and between two and five other members. Non-executive members comprise the Chair, the Government Chief Scientific Adviser and such other members which the Secretary of State may appoint. The board must comprise a majority of non-executive members as a matter of good governance.
45. Paragraph 3 explains that executive members are appointed by the chair after consultation with non-executive members. The Secretary of State may refuse consent for the appointment only if the Secretary of State considers it necessary or expedient in the interests of national security. The first Chief Executive Officer is to be appointed by the Secretary of State. This paragraph makes provision requiring executive members to be members of ARIA staff (either employees or secondees).
46. Paragraph 4 explains that the Chief Executive Officer is appointed for a fixed term of not more than five years. A person cannot be appointed as the Chief Executive Officer more than twice.
47. Paragraph 5 states that an executive member ceases to be a member upon ceasing to be a member of ARIA’s staff and may resign from office by notifying the chair. The Secretary of State may remove an executive member from office if necessary or expedient in the interests of national security.
48. Paragraph 6 states that, subject to the provisions of Schedule 1, non-executive members may hold and vacate office in accordance with the terms of their appointments. Non-executive members may resign by notifying the Secretary of State. The Secretary of State has authority to remove a non-executive member on the grounds of continuous period of absence of more than six months without permission, inability or unfitness to carry out the functions of the office, or such other grounds as the Secretary of State considers appropriate. This paragraph does not apply to the Government Chief Scientific Adviser (GCSA) as an ex officio non-executive member.
49. Paragraph 7 sets out that ARIA must pay non-executive members such remuneration as the Secretary of State may determine. ARIA must pay, or make provision for paying, such sums as the Secretary of State may determine in respect of allowances or expenses. Where a person ceases to be a member of ARIA, ARIA must pay compensation of an amount determined by the Secretary of State if he or she determines that the person should be compensated because of special circumstances.
50. Paragraph 8 explains that ARIA may, subject to paragraph 3, appoint employees and make other staffing arrangements as it considers appropriate, including secondments to ARIA. Sub-paragraph (7)(a) provides that the Secretary of State has power to determine those matters relating to the first Chief Executive Officer which are mentioned in sub-paragraphs (2) to (6) including remuneration and terms of employment. Sub-paragraph (7)(b) confers responsibility on the chair to determine, with the consent of the Secretary of State, after consulting with other non-executive members, matters relating to any other executive members (including future Chief Executive Officers). Sub-paragraph (7)(c) confers responsibility on ARIA to determine, with the consent of the Secretary of State, matters relating to any other employees or secondees who are not members.
51. Paragraph 9 provides ARIA powers to establish committees, which may in turn establish sub-committees. These committees may include persons who are neither members of ARIA nor members of ARIA’s staff. ARIA may pay allowances and expenses to any person who is a member of a committee or sub-committee but is not a member of ARIA or a member of ARIA’s staff with consent of the Secretary of State.
52. Paragraph 10 allows ARIA to determine its own procedures. It states that the quorum for a meeting of the board is half the number of its members. Paragraph 11 states that the Secretary of State may by regulations make provision about the procedures to be adopted for dealing with conflicts of interests of members of ARIA or members of committees. Paragraph 12 states that the validity of proceedings of ARIA, or a committee or sub-committee, is not affected by a vacancy or defective appointment.
53. Paragraph 13 enables ARIA to delegate functions to individual members, staff, or committees or sub-committee to the extent and on the terms that it determines.
54. Paragraph 14(1) requires ARIA to maintain financial accounts and clear records in relation to them. It also requires ARIA to prepare a statement of its accounts for each financial year. Sub-paragraph (2) requires that ARIA’s annual statement of accounts complies with directions provided by the Secretary of State as related to its contents and form, and methods and principles of preparation. Sub-paragraph (3) requires that copies of the accounts must be sent by ARIA to the Secretary of State and the Comptroller and Auditor General as soon as is practicable after the end of the financial year to which the statement relates. Sub-paragraph (4) requires the Comptroller and Auditor General to examine, certify and report on each statement of accounts and provide a report and certification to the Secretary of State. Sub-paragraph (5) requires the Secretary of State to lay a copy of ARIA’s report and certified statement before Parliament.
55. Paragraph 15 requires ARIA to produce a report on the exercise of its functions during each financial year. The annual report is to be produced and finalised as soon as is practicable after the end of the financial year and sent to the Secretary of State. The Secretary of State is required to lay the report before Parliament.
56. Paragraph 16 sets out that on those occasions where ARIA’s seal is being used, its use needs to have been authorised by the signature of a member of ARIA or the signature of another person authorised by ARIA. This provision does not apply if the document signed with the law of Scotland.
57. Paragraph 17 should be read alongside section 2 of the Act. It allows ARIA to do anything necessary or expedient for the purpose of, or in connection with, the exercise of its functions. In particular, it allows ARIA to borrow money, acquire and dispose of land, accept gifts, form and participate in partnerships and joint ventures, and form companies. This list is non-exhaustive. These powers may be subject to conditions which are attached to grant funding given by the Secretary of State to ARIA under section 4.
58. Paragraph 18 states that references to the GCSA include a person for the time being acting as such. References to staff relate to ARIA employees or those seconded to it. This paragraph also permits the Secretary of State by regulations to change references to the GCSA in the Schedule in the event that the office of GCSA is renamed or abolished, for example.
59. Paragraph 18 also provides a description of ‘financial year’. The financial year is the period from the date that ARIA is established to the second 31 March following that date. Each subsequent period of 12 months from that point constitutes a new financial year.

Schedule 2: Transfer schemes

60. This Schedule gives the Secretary of State powers to make property transfer schemes and staff transfer schemes to ARIA. Permitted transferors under such a scheme would be the Secretary of State or United Kingdom Research and Innovation (UKRI). Such a scheme may be made at any time.
61. A staff transfer scheme may make provision which is the same as or similar to TUPE.

Schedule 3: Consequential amendments

62. Paragraph 1 inserts "Advanced Research and Invention Agency" at the appropriate place in Part 2 of the Table in paragraph 3 of Schedule 1 to the Public Records Act 1958. This means that any records produced by ARIA from the moment of its creation should be treated as public records and be subject to the restrictions and principles governing public records.
63. Paragraph 2 inserts "Advanced Research and Invention Agency" at the appropriate place in Schedule 2 to the Parliamentary Commissioner Act 1967. This means that ARIA is listed as one of the bodies that can be subject to investigation by the Parliamentary Commissioner for Administration (Parliamentary Ombudsman); the body that is responsible for investigating the administrative actions of central government departments and public authorities.
64. Paragraph 3 inserts "Advanced Research and Invention Agency" at the appropriate place in Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975. The Act prohibits certain categories of people from becoming members of the House of Commons, and the provision therefore means that members of ARIA and members of ARIA staff, committees and sub-committees are prohibited from becoming members of the House of Commons and vice versa.
65. Paragraph 4 inserts "Advanced Research and Invention Agency" at the appropriate place in Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975. The Act prohibits certain categories of people from becoming members of the Northern Ireland Assembly, and the provision therefore means that members of ARIA and members of ARIA staff, committees and sub-committees are prohibited from becoming members of the Northern Ireland Assembly and vice versa.
66. Paragraph 5 means that, for the purposes of the Income Tax (Earnings and Pensions) Act 2003, ARIA will be treated in the same way as a body which is a "public authority" for the purposes of the Freedom of Information Act 2000.
67. Paragraph 6 inserts "Advanced Research and Invention Agency" at the appropriate place in Part 1 of Schedule 19 to the Equality Act 2010 under the heading "Industry, business, finance etc", thus making ARIA a body subject to the provisions of that Act.
68. Paragraphs 7 to 11 mean that, for the purposes of the Small Business, Enterprise and Employment Act 2015, ARIA will be treated in the same way as a body which is a "public authority" for the purposes of the Freedom of Information Act 2000.
69. Paragraph 12 means that, for the purposes of the Enterprise Act 2016, ARIA will be treated in the same way as a body which is a "public authority" for the purposes of the Freedom of Information Act 2000.
70. Paragraphs 13 to 15 and 18 mean that, for the purposes of the Data Protection Act 2018, ARIA will be treated in the same way as a body which is a "public authority" for the purposes of the Freedom of Information Act 2000, and the UK GDPR is updated to reflect the amended definition of "public authority" in the Data Protection Act 2018.
71. Paragraph 16 means that, for the purposes of the Social Security Contributions (Intermediaries) Regulations 2000 and the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000, ARIA will be treated in the same way as a body which is a "public authority" for the purposes of the Freedom of Information Act 2000.
72. Paragraph 17 amends the definition of "contracting authority" of the Public Contracts Regulations 2015 and the Public Contracts (Scotland) Regulations 2015 to exclude ARIA. This means that the obligations in these regulations which apply to a contracting authority will not apply to ARIA