Shadow Business Secretary Chuka Umunna MP has written to Business Secretary Vince Cable in light of the proposed Pfizer takeover of AstraZeneca, calling on him to act now to put in place a stronger public interest test and calling for a cross-party approach to make this happen.

The text of the letter is below:

The Rt Hon Vince Cable MP
Secretary of State for Business, Innovation and Skills
1 Victoria Street
London
SW1H 0ET

Dear Vince,

I am writing to you to seek clarity on the plans and process to review the public interest test in light of the proposed Pfizer takeover of AstraZeneca.

You will be aware that there is wide concern, which we share, across the business and science communities about the deal and the implications for science and R&D in the UK and the corollary impact on the economy and our industrial capabilities.

In the House of Commons earlier this week you confirmed that you were “keeping the options as wide as possible” and that “one of the Government’s options would be to consider using our public interest test powers”.

I also note that when you were questioned in response to Ed Miliband’s call for a stronger public interest test which covers cases with an impact on strategic elements of our science base, you said: “Obviously we are looking at this option amongst others”.

Previously, you have also said we must seek to take a much longer-term and strategic view of the UK economy and commissioned the Kay Review which in part looked at takeovers. Clearly, we are now at a watershed moment to make good on those promises to act in a more strategic way for the UK economy.

Under the provisions of the Enterprise Act 2002 you have the power to add further categories to the current public interest test, expanding the circumstances in which the government can issue a public interest intervention notice. This does not require primary legislation. You could therefore include a category, as we have suggested, that covers the maintenance of our strategic R&D and science base. You could implement this now and therefore enable this potential transaction to be assessed against this. We would support you in adding this category and want to work with you in a cross-party way to make this happen.

As I have said there is a strong willingness to work with you to enable a stronger public interest test made a reality. Therefore I would welcome the opportunity for to meet with you at the earliest opportunity to discuss this further.

You will also be aware of Ed Miliband’s call for the government to publish an independent assessment of the impact the potential takeover would have on Britain’s national economic interest. Could you confirm whether you have sought this and, if you have, when this might be published? If this is not being undertaken, can you outline why not?

I look forward to hearing from you.

Yours sincerely

Chuka Umunna MP
Shadow Secretary of State for Business, Innovation and Skills