Telecommunications Infrastructure (Leasehold Property) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateWednesday 22nd January 2020
(4 years, 11 months ago)
Commons ChamberRead Hansard Text
The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)
I beg to move, That the Bill be now read a Second time.
With apologies to T.S. Eliot, it is obvious that the naming of Bills is a difficult matter, but this Bill’s title does not do it justice. The Government are committed to delivering the infrastructure that this country needs, and the Bill is the first step on that road. To continue to channel T.S. Eliot, we know that if we do not deliver that infrastructure, too much of this country will be a digital wasteland.
Sir Desmond Swayne (New Forest West) (Con)
The Minister is right: this is the first part of a much greater endeavour. An increasing number of younger people find that they can do without a landline at all, so can he reassure me that this great, expensive endeavour will not be overtaken by the development of new technology, particularly as regards 5G, that will render it obsolete?
Matt Warman
I can absolutely assure my right hon. Friend that our approach to connectivity is technology-agnostic, and 5G is very much part of the solution, rather than something leading to the exclusion of connectivity. He is right to imply that we aim to go significantly beyond current demand to pre-empt the sort of problem that would occur if we did not build far in advance.
The Prime Minister and this Government have been unwavering in their commitment to the delivery of high-speed, reliable, resilient connectivity to every home and business as soon as possible. For the United Kingdom to remain at the forefront of the global economy, our businesses and consumers must have access to the tools they need to thrive. Already, our superfast broadband programme covers over 96% of the country and has brought connectivity to more than 3 million premises that would otherwise have been bypassed by commercial deployment.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Labour Members recognise the importance of faster broadband. Indeed, I have worked with previous Ministers on this, and on the issue of notspots in my constituency. Does the Minister agree with me on the importance of the issue to young children, who need to study and do their school homework, and to people working at home? Issues have been raised about that in my constituency. Does he agree that the essential criterion of affordability must also be part of the Government’s strategy?
Matt Warman
Yes, the hon. Member is absolutely right. Teachers can only teach at the pace of the slowest broadband in the class if they are using digital technology; we have to be cognisant of that. We, with Ofcom, also have to be determined to ensure that competition continues to preserve the low prices that this country has typically benefited from.
Seema Malhotra
May I make a point of clarification? I was talking about children studying at home, and being able to do their homework. That is the issue raised with me by my constituents, particularly in areas where there are leasehold properties.
Matt Warman
The hon. Member is absolutely right. My point about teachers was that when they send pupils home to do their homework, pupils must of course have to have the tools to do it. The pencil is now digital, shall we say?
On that point, the universal service obligation will give people in the UK the legal right to request a decent and affordable broadband connection if they cannot get 10 megabits per second, and we intend to invest £5 billion to ensure gigabit-capable networks are delivered without delay to every area of the country. We are proud of the work that we have done, and continue to do, to support deployment across the United Kingdom, from the Scottish highlands to Cornwall, from Armagh to Anglesey, but the digital revolution is far from finished.
Matt Warman
I give way to the former Chair of the Select Committee on Digital, Culture, Media and Sport.
Damian Collins
And I am standing for re-election, as the Minister knows.
The Bill gets rid of unnecessary delays in rolling out superfast broadband, which is what consumers want. He will know that in some areas of the country, particularly rural, notspot areas, one of the problems is that alternative providers—say, to Openreach—will not come in and provide superfast broadband because they are concerned that it will be overbuilt by another operator. Are there things we can do beyond the scope of the Bill—things he is working on now—to give more certainty to people who want to invest in the network, but want to make sure that they get a fair return if they do?
Matt Warman
Absolutely. My hon. Friend will know that the single greatest barrier to rolling out in the final 20% of the country is the risk of overbuild, which makes roll-out uneconomic and potentially makes using public funds even harder. We are absolutely working hand in glove with Ofcom on that, and to ensure that the system that we design ensures that the money—as my right hon. Friend the Member for New Forest West (Sir Desmond Swayne) said, it is a significant amount—is spent in the best possible way.
Those gigabit-capable connections, by which I mean 1,000 megabits per second and above, will ensure that British businesses can retain their global reach. They will be a catalyst for entrepreneurs in areas such as cyber-security, big data and artificial intelligence, and will support innovation in operations that use cloud services and blockchain technologies. They will transform how and where people work and collaborate.
Perhaps the most exciting promise of gigabit broadband is for consumers, because as we all know, poor internet connections hold people back. They prevent children from doing their homework, the ill from arranging appointments to see their doctors and those who need it most from saving money online. It was superfast broadband that facilitated the rise of Netflix, Spotify and the iPlayer; gigabit broadband, with its improved reliability, resilience and speed, will herald the era of the internet of things, the connected home, integrated transport networks and personalised healthcare, and that is why this Government are committed to investing in it across the country.
Julian Sturdy (York Outer) (Con)
I wonder what conclusions my hon. Friend draws from York, which became a gigabit city in 2008, and whether the Government are looking at that example and learning from what has happened in that great city.
Matt Warman
York is an exemplar for these sorts of projects. It demonstrates why investment is the right thing to do for the commercial sector, and why it is right for the state to support it. I look forward to the other place seeing the Bill in much more detail. That will happen imminently, I am sure—or maybe not; we will see.
As I say, superfast broadband facilitated the original internet that we are so familiar with, and gigabit will do so much more. It will support older people in staying independent for longer, will allow people to work how and where they choose to a much greater extent, and will make sure that commuters can join up their life in a much more effective way. However, the benefits for businesses and consumers can be realised only if digital infrastructure providers such as Openreach, Virgin Media, CityFibre and many others—increasingly more—can access homes, workplaces and public buildings such as hospitals and train stations. It is for that reason that this Government have made the deployment of gigabit broadband one of our key priorities.
With this Bill, we are taking the first hammer blow to the barriers preventing the deployment of gigabit connectivity. We will similarly take aim at new-build homes that are being built without access to futureproof connections, and we are exploring how we can make it easier for digital infrastructure providers to share the infrastructure of others, and how we can promote 5G mobile services by simplifying the planning regime.
Daisy Cooper (St Albans) (LD)
The Minister mentioned delays. I welcome the Bill, although it is overdue, and its objectives. One of our challenges, however, is that up to 3,000 applications a year could be going to the tribunal from suppliers wanting to secure access. The Minister said that he would be taking a hammer to the delays and barriers; what will he do to ensure that the tribunal has the capacity and resources to process those applications and ensure that they go through?
Matt Warman
The hon. Lady is absolutely right that the system is only as good as the resourcing behind it. We will explore every option to ensure that the tribunal gets those resources. We are confident that what we are proposing will work—we will make sure that it does—but of course we are open to considering what we can do to make it better as soon as we might need to.
Seema Malhotra
I thank the Minister for giving way again. Will he clarify how he envisages the Government working with the devolved Administrations and councils —we should bear in mind the very good work with Transport for London on connectivity through tube stations—so that we get the maximum for the investment made from the public purse?
Matt Warman
Telecommunications is a reserved matter, but I have already discussed how the system will work through the equivalent tribunal schemes in the devolved Administrations. The hon. Lady is absolutely right that although bodies such as TfL are not directly affected by the Bill, we are working with colleagues at the Department for Transport to make sure that London and other places get the connectivity that they deserve on public transport. Plans are forthcoming for wider deployment of the wi-fi system that is currently available only in stations.
As I say, the Bill ensures that those living in blocks of flats and apartments—known by the telecommunications industry as multi-dwelling units, or MDUs—are supported in accessing new networks. Operators have raised concerns that multi-dwelling properties are proving exceptionally difficult to connect. As I am sure Members will know, operators require the permission of a landowner before they are permitted to install equipment on a property.
Mrs Flick Drummond (Meon Valley) (Con)
I welcome the Bill, which will help those people, but what about commercial tenants in business parks? I am thinking particularly of rural areas such as Meon Valley, where there are problems with connectivity.
Matt Warman
My hon. Friend is right that we should not simply look at residential property. We are exploring with the industry what that issue looks like; the Bill has been carefully designed to make sure that it delivers on what both the Government and industry feel is right. Obviously, commercial property is different. It is less prone to the sorts of issues that we are tackling here, but I will be happy to work with my hon. Friend to see what we can do to help Meon Valley in particular.
For those who own their houses, the issue is simple: they request the service and sign a contract, and an operator does the installation. However, for those in flats, whether rented or owned as a leasehold, the permission of the landowner or building owner is required for the common areas—the basement, corridors, stairwells and so on. Currently, on identifying a property in their network build area, operators will attempt to contact landlords, request permission to install, and offer to negotiate a long-term agreement on access. Those wayleaves set out the responsibilities of both the landlord and operator in respect of the installation.
Evidence from operators, however, suggests that across the UK’s major digital infrastructure providers, about 40% of requests for access issued by operators receive no response. That cannot be acceptable. Through inactivity, a building owner can prevent multiple families and households from accessing the services that, as so many people have said, are essential for modern life. The UK’s digital infrastructure providers are already upgrading this country’s broadband network. Failure to address this issue now will give rise to pockets of connectivity disparity. Neighbours will have different connections, based on whether they own a house or flat, and on whether their landlord is engaged or absent. That cannot be fair, and the Government are acting to address it.
This is about commercial realities. The Prime Minister and I made it clear to the industry only last week that we want nationwide access to gigabit-capable connection as soon as possible. Our ambition is to deliver that by 2025.
Edward Timpson (Eddisbury) (Con)
We all welcome the Government’s commitment to full-fibre broadband, particularly in Eddisbury, where it remains pretty woeful, but the quality of mobile phone coverage also leaves a lot to be desired. Will my hon. Friend update the House on what is being done through the shared rural network to improve that through a final agreement, and will that include indoor as well as outdoor coverage?
Matt Warman
My hon. Friend is right that mobile coverage, while unrelated to the Bill, is an essential part of the connectivity solution. We have committed to the industry concluding its negotiations in the first 100 days of the Government, which takes us to the middle of March, and we are on track for that. On measurement of a network, we have historically been lumbered with standards that are not terribly useful. We need to do more to ensure that we provide the right kind of information to consumers; Ofcom and the Advertising Standards Agency have a hand in that, alongside Government.
If operators are to achieve our ambitious target, they need to get on and deploy their engineers and civil contractors, and to keep them moving to maintain momentum. They cannot afford to keep their teams idle while they wait for a response from a landlord that never materialises; from a commercial point of view, it makes more sense to bypass the property and its residents and deploy elsewhere to prevent that situation. The Bill will create a new application process in the courts that will allow operators, when faced with an unresponsive landlord and with a resident requesting a service, to apply to the courts to gain the rights to install.
It is important to make it clear that the new court application process is a last resort for operators. The key goal of the legislation is to increase the response rate to operators’ requests for access. The Government have always believed—and continue to believe—that the best, most efficient way for operators to install equipment in a property is through a negotiated agreement being reached between the operator and the landlord.
In December 2017, this House passed the Digital Economy Act, which among other things updated the electronic communications code. The code provides a regulatory framework for the relationship between landlords and telecommunications operators and includes provision for the operator to use the lands chamber of the upper tribunal, or its equivalent in the devolved Administrations, to have rights imposed in situations where a landlord is unresponsive.
To the best of my knowledge, as I speak, operators have not sought to use that power to address an unresponsive landlord, in part because they estimate that it will cost £14,000 per application, including legal fees and administrative costs, and take six or seven months in practice, and the outcome would by no means be certain. However, there are estimated to be 450,000 multi-dwelling units in the UK, housing some 10 million people. If operators’ current 40% failure-to-respond rate is projected across the country, we are talking about 180,000 cases and some £2.5 billion in costs. I am sure that Members will agree that the money and effort would be better used delivering better connections. The new process proposed by the Bill is proportionate and balanced, and places an exceptionally low burden on the landlord and a high evidential requirement on the operator.
An operator will be expected to have a tenant in the property who has requested a service. They will have issued multiple requests over 28 days and, thereafter, a final notice that explicitly says that the court may be used to gain access, and they will be able to show evidence of all the above to the courts. A landlord who wishes to take themselves out of the policy’s scope need respond to only one of the operator’s multiple notices. I am sure that hon. Members will agree that responding when someone writes is simply a courtesy. The expectation is that applications made to the tribunal through the provisions in the Bill will allow judges there to make decisions based on operators meeting an evidential threshold. This will allow decisions to be reached quickly and efficiently. Discussions are still ongoing about how we can make the process even faster.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The Minister has said that landlords will have opportunities to respond. If, for whatever reason, they do not respond, and they find themselves in the tribunal, will any costs fall upon them?
Matt Warman
The charging landscape will be set in collaboration with the tribunals and—I suspect that the hon. Gentleman will care about this in particular—the devolved Administrations, but the whole point of this regime is for it to be faster and far more affordable than the current regime. As we work with our colleagues in the Ministry of Justice and the devolved Administrations, we will have that at the front of our minds.
If applicants are successful, they will gain interim rights under the electronic communications code in relation to a property. Those rights will allow them to install, maintain and upgrade infrastructure for a period no longer than 18 months and will be accompanied by strictly defined terms regarding their use. These terms, which we have committed to consulting on publicly, will set out the standard to which works must be completed, and will make it clear that care must be taken to minimise the impact on other residents. If an operator wishes to continue providing a service to the building after the interim code rights have expired, and the landlord continues to be unresponsive, applicants may use provisions in the electronic communications code to apply for full rights. Time-limiting the rights to a maximum of 18 months incentivises operators to continue their efforts to contact landowners so as to avoid the cost, time and uncertainty of making a further application to the tribunal. It also ensures that where a landowner does engage, there is sufficient time for negotiations to take place and an agreement to be reached without disruption to residents’ broadband service.
To conclude, this is a technical Bill that achieves a specific purpose, but it does that in the context of the Government’s significant scale of ambition in this area. Gigabit broadband will be the enabling infrastructure of the next century. It will turbo-charge businesses, facilitate innovation and change how we work, live and engage in society, and how society engages with us. It is good for every part of this country, for our economy and for the public. The Government will support every home—every family wanting to shop online, and every pupil wanting to do their homework—whether it is in the middle of a city or the middle of nowhere, and whether it is a mansion, a terraced house or a block of flats. The Government will help them all to be part of this country’s gigabit future. I commend the Bill to the House.
Matt Warman
I thank the Labour party for its support, however grudging. It is important to say what this Government have done over the last 10 years, however the hon. Member for Batley and Spen (Tracy Brabin) describes them; they have fostered the largest digital economy in the G20. That success does not happen by accident; it happens through effective regulation that supports investment from the private sector. We need a proper plan, she said, and we have got one. What the Opposition have is a plan to nationalise BT at a cost of £100 billion—or at least I think that is what they have, because when she was asked that question, I did not hear a full-throated endorsement of the Labour manifesto position. Perhaps she is just positioning herself for her future leader. None the less, I enjoyed her reference to the Spanish Armada and I look forward to an historical tour de force that covers bells and a whole host of telecommunications infrastructure as we work through the passage of this Bill in Committee.
The hon. Lady raised a number of points. We consulted extensively in ending up with this solution. We will, of course, continue to be flexible where we can be to make sure that it evolves if it needs to. It is, as the hon. Lady said, a bespoke process that is dedicated to the telecoms industry. She is right that it would be silly to suggest that this should be treated in exactly the same way as other infrastructure, but we need to bear in mind the fact that digital infrastructure will become progressively more vital, as well as the question of how we line up the appropriate regimes.
Paul Girvan (South Antrim) (DUP)
When it comes to the infrastructure for broadband and its delivery, we are at the mercy of very few suppliers or providers. Unfortunately, although they put money into their pockets, they sometimes do not deliver at all to rural communities. That is our problem in Northern Ireland: there is money there, but the providers cannot deliver.
Matt Warman
The hon. Gentleman is right that effective competition is absolutely essential to rolling out broadband in the best possible way. I have seen for myself in Dundrum and Belfast a whole host of really excellent work in Northern Ireland, demonstrating not only that it can be done but that it can be done at an even more efficient price than in some parts of the rest of the United Kingdom. Good work is going on that promotes competition. The role of the Government is, of course, to make sure we get maximum value for money across the whole of the United Kingdom.
I pay tribute to both the new Members who spoke for the first time. My hon. Friend the Member for Totnes (Anthony Mangnall) asked us to reimagine what a significant encounter might look like, but, more seriously, elsewhere demonstrated the depth of knowledge and breadth of expertise that he brings to this place. His constituents are lucky to have him, even though he is neither a communist spy nor a mystic—to our knowledge. Just as the Bill represents a significant upgrade for broadband in this country, my hon. Friend is an upgrade on communist spies and mystics, so we pay tribute to him.
I also welcome my hon. Friend the Member for Bury South (Christian Wakeford). He was initially somewhat disparaging about the Bill, and I was worried. But he showed genuine expertise on the topic as well as on antisemitism, one of the most challenging issues of our age. I also pay tribute to his courageous predecessor. I know from his funny and down-to-earth speech that he will be a worthy Member of this place.
Finally, my hon. Friend the Member for Bishop Auckland (Dehenna Davison) said that she had seen two new Members becoming initiated into full involvement in this place; I should say that full involvement comes when one colleague like her says something nice about me while another—who I shall not name—heckles to say that she is probably wrong. Welcome to politics. My hon. Friend is of course right to say that the Bill introduces things that will make a real and meaningful difference—not just in urban constituencies, but across the country. People are living in multi-dwelling units and blocks of flats in all our constituencies.
I am also, of course, happy to discuss some of the other issues that various Members raised in this debate. Some of those will come out in Committee. I was grateful to receive applications from a number of Members to serve on the Bill Committee—we will try to ensure that they do not regret it. It will be an important piece of legislation and I am grateful to them for their expertise in this debate and beyond.
To conclude, I am sure that we can continue to work together across the House to bring this important Bill into law as soon as possible, and on the other legislation that forms the building blocks of a comprehensive plan to deliver gigabit-capable networks across this country.
We are bringing this Bill forward first because it allows us to crack on with a plan that we would otherwise have to deliver by waiting for a single, larger piece of legislation. The Bill allows us to address some aspects of a broader challenge, and we will get on with the rest of the plan as soon as possible.
Matt Warman
I look forward to encountering the hon. Lady across the Dispatch Box—it would be mean not to give way to her.
Chi Onwurah
I was pleased to hear the third or fourth reference, I think, to a plan. Will he share with us when he will publish the plan for gigabit-capable broadband delivery?
Matt Warman
We will, of course, be talking much more extensively and consulting on various aspects of the plan, which the hon. Lady will see emerge in good time. We are genuinely keen to be collaborative on many aspects of the Bill, because it is good to see cross-party support for a Bill that we all acknowledge is important. We hope to be able to do the vast majority of any legislation with cross-party support, because that is the right thing to do.
Government Members care passionately about this issue, and I am sure that the same spirit will continue as the Bill makes its passage through the House. This is a real contribution to the agenda of levelling up across the country and bringing digital infrastructure to every school, home and classroom in a way that allows all our constituents to benefit from the infrastructure that they deserve, and from a digital revolution that this Government will foster.
Question put and agreed to.
Bill accordingly read a Second time.
Telecommunications Infrastructure (Leasehold Property) Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Telecommunications Infrastructure (Leasehold Property) Bill:
Committal
(1) The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 6 February 2020.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Proceedings on Consideration and up to and including Third Reading
(4) Proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.
Other proceedings
(7) Any other proceedings on the Bill may be programmed.—(Mr Marcus Jones.)
Question agreed to.