Telecommunications Infrastructure (Leasehold Property) Bill

(Limited Text - Ministerial Extracts only)

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 19th May 2020 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, the benefit of making one or two Second Reading-style comments at the start of the debate on these amendments has been well proven by what has been said. A lot of context has been brought out, as has the theory underpinning some of the lines of argument. That is all to the good.

I want to make a couple of initial points. I take it as read, and I am sure that the Minister will confirm this when she responds, that we are all supportive of the speedy and complete rollout of a gigabit-capable economy. There is no question about our support in terms of previous chances because we have focused on or around this topic for a number of years now. Indeed, we have had a couple of Bills on it. It is on the record that, on our side of the House, we have tried hard to raise the unambitious USO target, as my old friend, my noble friend Lord Adonis, mentioned. We have also brought forward other measures—they were picked up on by other speakers, including the noble Lord, Lord Clement-Jones—which may have helped us to get a bit further down the line to where we are.

In the Digital Economy Act and subsequent legislation, we asked how to get everyone together on the path and moving toward a gigabit economy. The Government chose to go down the voluntary route. Of course that ended in tears, with very few respondents happy with where they are—so here we are again. I will not go into that in any detail. Having said that, times have changed. Other noble Lords have said it but I am sure that the Minister will agree that the internet’s role has changed as a result of Covid-19. It would have changed anyway but it has certainly been brought into focus because of the crisis. We certainly do not want a situation where individuals or families could be left behind because they have not been given access to gigabit-capable broadband.

Underneath the general points that have been made, there are probably a couple of major positions that we ought to focus on as we go through these amendments. Surely the default position should be that, like water, gas and electricity, gigabit-capable connections should be available to all premises. The acid test for us on this Bill is whether its measures advance that. The noble Lord, Lord Haselhurst, said that there were points that we could agree did bring us forward, but I think the general feeling so far is that perhaps there is not a deep enough cut being taken from those issues.

My second point is: where are the other pieces of legislation that will back this up? Where are the points that address bringing forward access to all properties on the same terms as other utilities? Where are the measures that will help with works that have to be done on a village-wide or town-wide basis in order to get access to cables? When will we get some sense of the overarching position and the legislation for that?

We support the amendments of the noble Lord, Lord Clement-Jones, and the one raised by my noble friend Lord Adonis. There needs to be broader support for legal occupiers to be able to initiate and unblock the process. I particularly liked a comment made in the middle of the debate about the future ownership of Openreach, and I look forward to the Minister’s response.

Throughout all this we are not in any sense saying that the owner of the property is diminished by any proposals to improve the quality of what is available in the premises. However, we clearly need it to be possible for all properties to be supplied with public utilities, and I think the internet has to be regarded as one. If this is not the case, it is up to the Minister to make very clear today why not. Can she address that point? Will she take back, perhaps for further consideration on Report, the wider concern—it was expressed by the noble Lord, Lord Clement-Jones, and the noble Baroness, Lady McIntosh, in particular, but I think was raised by just about everybody—that the Bill actually has not tackled the essential question of who it is talking about when it deals with property rights?

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Barran) (Con)]

My Lords, I thank the noble Lord, Lord Stevenson of Balmacara, for his support and that of his colleagues for the Government’s work in this area; I thank all noble Lords in that regard. I also thank the noble Lords who tabled these amendments, which seek to clarify who is able to make a request for a service, and therefore begin a path for an order process.

The noble Lord, Lord Clement-Jones, and my noble friends Lady McIntosh and Lord Holmes raised questions about our 2025 manifesto target and the impact of Covid-19 on achieving that. As many noble Lords noted, the current pandemic has re-emphasised the importance of digital infrastructure in the UK, and we are fully committed and resolved to deliver on this. Obviously, Covid-19 is likely to have an impact on the pace of the rollout in the short term, but we cannot assume that we cannot recover that, make up ground and still meet our target. We are doing everything we can to assure this, including investing £5 billion in the hardest-to-reach areas such as the rural areas to which my noble friends Lord Haselhurst and Lady McIntosh referred.

Questions were also raised by several noble Lords, particularly the noble Lords, Lord Adonis and Lord Clement-Jones, about investment and competition. I cannot comment on the rumours about the status of Openreach, which is obviously something for the BT Group to announce or comment on, but our understanding from subsequent press reports is that the original Financial Times report was inaccurate. Officals will continue to engage with BT and Openreach, but it is ultimately a private company. [Inaudible.] They also raised a number of other questions, particularly in relation to the status of broadband connections as a utility—if I may, I will comment on those in a later group. Some specific and quite detailed questions were also raised which I will respond to in writing, including the question from my noble friend Lord Holmes as regards learning from previous Openreach rollout.

Turning to the specific amendments, I note that Amendment 6 is similar to an amendment tabled in the other place during the passage of the Bill there. I believe that the noble Lords who have tabled the amendment are seeking to ensure that tenants are covered by the Bill. If noble Lords are indeed seeking clarification on that point, I am able to confirm that as currently drafted, the provisions in this Bill can be used by people who rent their homes. This includes people with assured shorthold tenancy or assured tenancy agreements which, as many noble Lords will be aware, are the most common forms of tenancy agreement. These will include second homes and sub-lets as long as they meet the requirements in the Bill. I will confirm this in writing, but my understanding is that in relation to renewable tenancies—a point raised by the noble Lord, Lord Clement-Jones—if they have the characteristics of a lease, they would not be affected by this Bill. [Inaudible.] They would not be covered by this Bill. I can cover the impact of that in a letter to noble Lords.

Our concern is that the amendments as tabled would have a significant effect on the Bill. They would significantly expand the scope of who is able to make a service request to include anyone who is the legal occupant of a property, tenancy, or a freeholder. For example, the amendment could bring into scope a tenant who rents their property from an individual who is illegally sub-letting the property or a short-term lodger in a single room in someone else’s home. I am sure noble Lords will agree that, while the Government are committed to providing widespread access to fast, reliable and resilient broadband, it is important to ensure that the ability to make fundamental changes regarding the rights over property begins with an individual who has a legitimate interest in the property. Furthermore, Amendment 6 would considerably increase the ambit of the Bill and make it very different from the model which was consulted on. The Bill as drafted already works in respect of tenants, so noble Lords will appreciate the unintended consequences of extending the definition to those who may begin a Part 4A process.

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[Lord Liddle (Lab)]

My Lords, I am grateful for being allowed to intervene. Had I realised the procedure, I would have made some Second Reading remarks myself at an earlier point. I support the Bill. It is a modest measure that takes us nearer what I think should be the public objective of a universal service of high-speed broadband. It therefore has my general support.

There are two points from the Minister’s summing-up on which I would like to press her. The first concerns the question that my noble friend Lord Adonis asked about the future of BT Openreach. I am afraid I did not fully catch what the Minister said in reply because of connection problems, but I regard this as a subject of fundamental public interest. I would like to be assured that the Government will also regard it as such and will not just say, “This is a matter for BT to decide what it wants to do in terms of its own private interests and its shareholders’ interests”. I would like an assurance that this is regarded as a matter of great public interest.

My second point relates to the final section of the Minister’s legal bit at the end about who is and is not entitled under these arrangements to press for better connections. I shall look at this question in a very practical way. I am very concerned about young people, including students, living in short-term lets in multi-occupier buildings—for instance, in old council blocks where someone has bought a flat to rent it out and their main occupiers are students on short-term tenancies. I should like an assurance that this provision applies to young people and students whatever the basis of their living in that kind of accommodation. It is fundamental that young people have access to high-speed broadband. This has been brought home to me as chair of Lancaster University, where we are now doing our teaching online. Even when the Covid-19 crisis comes to an end, a much higher proportion of university teaching will be online, and this applies to many other vital spheres of life. There is a practical concern here. I ask the Minister to go back to the department, think about all the circumstances in which young people and students rent accommodation in blocks of flats and multi-occupier properties, and say whether they have an untrammelled right to ask for better provision and whether the process will be so rapid that a student on a short-term tenancy will want to see it through.

[Baroness Barran]

I thank the noble Lord for his additional questions and I apologise to your Lordships. There is a certain irony in my signal not being quite strong enough for this Committee stage.

In answer to the noble Lord’s question about Openreach, what I tried to say in response to the noble Lord, Lord Adonis, when he put this point, is that any sale is a matter for the BT Group, but the department’s understanding, based on further articles in the press, is that the original Financial Times article was inaccurate. We continue to engage with BT and Openreach, but ultimately it is a private company, albeit subject to all the competition laws and wider legislation that might be relevant.

In relation to students, the noble Lord makes a very important point. I spent quite a lot of time recently talking to young people, including students, about the impact of Covid on their lives. The points he makes are definitely reiterated by them. As the noble Lord knows, students will live in a range of different types of accommodation with different arrangements. Where they are occupying accommodation such as an assured shorthold tenancy or an assured tenancy, they will be covered by the Bill.

The noble Lord’s wider point was about thinking through the practicalities, which is what my officials have spent much time doing. This was explored extensively in the other place. The balance we need to strike is between the three parties—the landlord, the tenant or leaseholder and the operator—and that is what this legislation seeks to do.

[Baroness McIntosh of Pickering]

I thank my noble friend for her very comprehensive reply to the opening remarks on Amendments 1, 3, 4 and 5. She referred specifically to the hardest-to-reach properties and the sum of money that has been allocated. I repeat here a plea that I have made on many occasions, in the hope that it might be listened to sympathetically. By 2025, the 5% hardest to reach properties, which will inevitably be in rural areas, will, in all likelihood, still not have fast, high connectivity or even fibre broadband. Will the Government look sympathetically on a request to reverse the priorities, to ensure that the 5% hardest to reach will be dealt with first? A great number will indeed be leasehold properties, and many will be tenanted; and many will have residents who are hoping to run rural businesses, or people who are having to work from home at this time. I know that this will strike a particular chord with them.

Given that in areas such as North Yorkshire, the Lake District and Devon, or in any hilly area, you have to deal with the terrain and with the geography of being a substantial distance from the exchange, it seems unfair that these properties—I repeat that many will be leasehold properties—are being disadvantaged and discriminated against. They should be fast-tracked, to allow them greater access to all forms of telecommunication.

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[Baroness Barran]

My noble friend makes an important point. It is something we keep constantly under review and I will take her comments back to my colleagues in the department, so that they are aware of her remarks.

[Lord Adonis]

I am glad that the Minister has a sense of humour. Those of us in this Committee will regard her predicament of having a very weak connection as fully justifying the Bill. I do not know whether she is in a shared property that does not have fibre throughout, but we cannot properly conduct this Committee stage because even among ourselves we do not have a sufficiently strong internet signal, despite having weeks to prepare. This demonstrates why, as a country, we need to get going on this.

I did not pick up the first time round what the Minister said about BT, because of her dropped connection. When she repeated it in response to my noble friend Lord Liddle, she left me somewhat concerned. She said that the stories in the FT were “inaccurate”, but she would not say in what respect; she simply referred to other press comments. I see exactly what she is seeking to do: she is trying to keep clear of revealing to us private information, which the Government or the regulator will surely have, about what is going on in this context. However, I think she will understand that we do not really regard this situation as satisfactory.

As my noble friends Lord Liddle and Lord Stevenson rightly said, although Openreach is formally a private company, our whole understanding is that rolling out enhanced gigabyte connectivity crucially depends on Openreach. If we do not have confidence in its capacity to do this, the Committee will certainly not be satisfied that the Government have a strategy. To be fair, I do not think that the Government themselves would be satisfied with the situation either.

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[Baroness Barran]

I thank the noble Lord for his further questions. To cover the point about Openreach, the noble Lord will be aware that on 15 May the Financial Times suggested that BT was considering the sale of a stake in Openreach to potential buyers, including Macquarie. Officials spoke to BT last week, which confirmed that this was inaccurate. Both Openreach and Macquarie sources have also publicly told the press that this is inaccurate. On his wider point, if the Government became aware that Openreach did not have the capacity to deliver on our target, we would obviously reconsider how best to meet it, but I am not in a position to be able to give any more detail here.

I will also correct something. I hope noble Lords did not understand me to say that potential delays in rollout from the impact of Covid-19 are only short term. At the moment, we understand some of the short-term impacts and we hope we will be able to absorb them, but given that none of us has a crystal ball on how this will all unwind, I wanted to clarify that for the record.

[Lord Clement-Jones]

My Lords, I thank the Minister for her response. As the noble Lord, Lord Adonis, implied, it was ironic that we were talking about fast, reliable, resilient broadband, in the Minister’s words, yet she is the one who has principally suffered from not having it in the course of the debate. I thank her anyway, and I look forward to the letter she will send, which might be a little bit clearer than the reception we had for her response.

I thank noble Lords for their support for the amendments. In particular, the noble Baroness, Lady McIntosh of Pickering, and the noble Lord, Lord Liddle, brought out some of the real issues associated with getting the wording wrong. I say to the noble Lord, Lord Haselhurst, that there is nothing wrong with Liberal with a large “L”. We might want to see the ECC interpreted with a large “L”, not just a small one.

I felt the Minister really did not start off on the right foot when talking about the actual aim—the Government’s objectives. I understand that there may be some delay as a result of Covid-19, but the target was set out in the Conservative manifesto. We have not really had a pledge on that. We have had “as soon as possible”—I think that that was in the Minister’s speech last time—but no pledge that that is the objective and that all the Government’s sinews are being strained to achieve it. That is what we want to see.

On the amendments, we are back to the question of access. As I said, the noble Lord, Lord Liddle, and the noble Baroness, Lady McIntosh, got this right. It is about absolute access for various types of occupier. We should be treating this as a utility. We cannot be talking about this in 19th-century property terms. It is as if we were at the end of the 19th century and beginning of the 20th century, when people were arguing about whether electricity should be installed in their houses. Broadband should take its place alongside gas, electricity and water as an essential utility and we should give suitable powers of access to do that.

I look forward to the letter from the Minister but to say that my amendments affect the clarity of the drafting of the wider Bill is almost laughable, because the drafting of the Bill is not clear. The use of the term “lessee”, which excludes quite a number of different types of occupation and tenancy—as has been pointed out—is not adequate. We do not just have a legal issue; we have a clear access fault line about how we treat broadband and its essential nature. We are going to have have-nots who are not able to benefit from the ECC and that will be greatly regretted, not least by those who are unable to access the kind of service that the Minister herself would like. I do not necessarily take on board the arguments about unintended consequences and occupation. One is being over-cautious in the way that the Bill has been put together, but that is a characteristic of the Bill as a whole. We will, no doubt, come back to this on Report. In the meantime, I beg leave to withdraw the amendment.

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[Lord Clement-Jones]

My Lords, I absolutely support what the noble Lords, Lord Adonis and Lord Livermore, said on this matter. A lot of what we are trying to achieve with our comments on the Bill—clearly there is a great deal of commonality here—is to get the Government to state very clearly what their objectives are and how they will achieve them. This is a very well-worded amendment designed to do just that, so that the operators must commit to a one-gigabit-capable broadband commitment. Amendment 21, when we come to it, has a very similar intention.

The problem is that we seem to be faced with a really slippery objective that we cannot quite get our hands on; the Government have not quite committed to it. We really need to see proper commitment from the Government to full access to the one-gigabit-capable broadband which they absolutely promised in their manifesto. At the moment, there seem to be an awful lot of get-out clauses. That is not satisfactory. We will keep arguing through this Bill for a proper commitment to the one-gigabit-capable broadband promised at the last general election.

[Baroness Barran]

My Lords, I will now respond to Amendment 2 and the points raised by noble Lords.

This amendment would limit the use of the powers contained in Part 4A only to operators installing gigabit-capable services. As the noble Lord, Lord Adonis, stressed, the spirit of this amendment is to test the Government’s commitment to providing gigabit-capable broadband. I am obviously disappointed that he found insufficient the remarks of my honourable friend the Minister for Digital Infrastructure in the other place.

The Government remain completely committed to bringing faster, gigabit-capable broadband to the whole country as soon as possible. Our ambition remains nationwide coverage by 2025. However, we do not believe that we should force consumers to take out specific services.

Clause 1, as currently drafted, supports our ambition. It provides a bespoke process in the courts that will allow an operator faced with a landowner of a premises within the scope of this Bill who repeatedly fails to respond to notices, and a tenant waiting for a service to be connected, to gain interim code rights for the purpose of connecting that building to their broadband service. To limit provision only to services

“that can deliver an average download speed of at least one gigabit per second”

runs the risk, particularly in the short term, of limiting access to better broadband, which, as all noble Lords have agreed, is extremely important.

This Bill, like the Electronic Communications Code, which it amends, is technology neutral and therefore speed neutral. It makes no distinction between the type of service being deployed but recognises the consumer’s right to choose the service they want from the provider they want. Of course, many consumers will want the speed, reliability and resilience offered by full-fibre or gigabit-capable connections, and it should not be the role of government to limit their ability to choose.

In a similar vein, although gigabit-capable services are being rolled out across the UK, they are not yet being deployed everywhere. In practice, the amendment would mean that households in areas yet to be reached by gigabit-capable networks would have to wait—maybe for a long period—even though a superfast or ultrafast service might already be available. Our experience and current practice suggest that an operator would be very unlikely to install outdated technology, and therefore such a delay would be unnecessary and extremely frustrating for consumers.

Finally, were this amendment to form part of the Bill, we consider that it would not have the effect intended by noble Lords. It amends paragraph 27A, which is an introductory provision and explains in very general terms what Part 4A of the code does. The amendment in itself does not amend any of the Bill’s substantive provisions, such as paragraph 27B of the code. Its drafting would not therefore operate within the rest of the Bill.

I understand what noble Lords are seeking to achieve in tabling the amendment. The Government absolutely share the aspiration of achieving gigabit-capable broadband across the whole country, but it is important that the Bill, and the Electronic Communications Code more widely, stay technology neutral for the sake of the consumer’s right to choose and to ensure that we do not allow the perfect to become the enemy of the good.

A number of noble Lords raised the question of the universal service obligation, which is the safety net that we legislated for and which went live on 20 March. It ensures that everyone across the UK has a clear and enforceable right to request high-speed broadband of at least 10 megabits a second from a designated provider and up to a reasonable cost threshold of £3,400. We keep the speed and quality parameters of the USO under review all the time to make sure that it keeps pace with consumers’ evolving needs, and our officials work closely with Ofcom regarding the implementation of the universal service obligation.

With that, I hope that the noble Lord will agree to withdraw his amendment.

[Lord Adonis]

Before I make my concluding remarks, perhaps I may ask the Minister three further probing questions. I am obviously extremely grateful to her for her full response, but she raised three questions in my mind.

First, she raised some technical concerns about the amendment—in particular, that it amends not the code but only the introductory provisions. That raises an obvious question. If I return with this amendment on Report, properly drafted—indeed, I might invite the noble Baroness herself to provide a draft that the Government think is adequate—would the Government then be prepared to accept it? Indeed, if they proposed it themselves, they would not have to accept it.

That is important because there is an inconsistency in the noble Baroness’s argument in respect of the other two points. She said that it is unlikely that operators would want to install what she called “outdated technology”. I take that to mean technology that is not gigabit-capable. Not only is that unlikely but, if they were to do so on any large scale, of course the Government would then not meet their target, which is to have gigabit-capable coverage.

If the Government are committed to their target and believe that operators are unlikely anyway to want to take forward what she calls outdated technology, what is their objection to having this specification in the Bill? I do not understand what it is. I will give the Minister a moment further to consider her answer to that.

I was very concerned about a point she made about the Government being speed neutral. When Matt Warman spoke in the House of Commons, he did not use the phrase speed neutral but said the Government were technology neutral. I am sympathetic to technology neutral but totally unsympathetic—as I suspect colleagues in the Committee will be—to the idea that the Government are speed neutral. Speed neutral means that the Government may not actually be committed to having superfast broadband rolled out across the country in the first place. Indeed, if the Minister considers what she means by speed neutral and elucidates it a bit further for the Committee, it may be that we get to a position where we have underlying concerns about whether the Government are committed to their own target.

Can the Minister tell us what she means by speed neutral? Does she mean that the Government would be perfectly happy to have a national rollout of something less than gigabit-capable coverage? If she does not mean that and is committed, on behalf of the Government, to gigabit-capable coverage—which I think is what the Committee wants to see—why will the Government not accept an amendment of this kind, properly drafted, which does no more than hold them to their own public commitments?

[Baroness Barran]

With regard to the noble Lord’s first point about the technical amendment, he is of course right on one level. We—or, I am sure, the noble Lord himself or his team—could make technical amendments to make sure the Bill is coherent and consistent. We could address those points. However, the central issue is one of not delaying the implementation of the rollout and staying true to technology neutrality. I gather that speed neutral is a consequence of tech neutrality, so it would insert into the Electronic Communications Code a tech-specific provision that does not exist anywhere else in the code. The code is about regulating relationships between operators and landowners, not about technology. I will set out these points clearly for the Committee and the noble Lord in a letter.

[Lord Adonis]

I am extremely grateful to the Minister for her last point about setting this out in a letter. It is very important to the Committee that the Government do so. I do not at all like this idea of speed neutrality, which implies that the Government’s target might not be worth the paper it is written on and that Parliament is about to grant the Government powers that in principle we support but whose purpose will not necessarily be met unless we can maintain the commitment to gigabit-capable coverage. I think the Minister understands that, because, while she said that speed neutrality is a consequence of technology neutrality, she has not said that the Government are not committed to gigabit-capable coverage across the country.

If the Government are committed to gigabit-capable coverage nationwide, it follows logically that it is not speed-neutral. The Committee is looking forward to hearing, in the Minister’s reply, how the Government will square that circle. What she says in that regard will have a big bearing on how we take this matter forward at Report, but on that basis, I beg leave to withdraw this amendment.

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[Lord Clement-Jones]

My Lords, I have put my name to the amendment in the name of the noble Lord, Lord Stevenson, who is correct in saying that the purport of our amendment, Amendment 8, is very similar. I was struck by the Minister’s implying that, if we are not careful, consumers will be forced to take a service. That is not the situation. What we want to do, as far as possible, is to facilitate the laying of fibre across 100% of the country. Consumers can well make up their own minds about whether to enter into a consumer contract. We need, as far as we can, to facilitate the operators in what they do. Just as with electricity—we have had several references to the utilities aspect—people should have access to this. I cannot understand why the Government are not making a distinction between laying the infrastructure and then entering into consumer contracts for the supply of internet services; the distinction is readily understood.

I accept that the Bill introduces a new process for operators to gain access in cases where a tenant has requested a service and the landlord is unresponsive. This will, of course, be helpful for deployment but it depends on a tenant requesting a service rather than supporting the proactive laying of cable ahead of individual customer requests. That means that operators’ teams may not be able to access buildings in areas where operators are currently building, or plan to build, so they will be less effective in supporting rapid deployment. That is what the Bill is ostensibly about: facilitating the deployment of fibre. The most efficient building process is when operators can access all premises in a given area, rather than having to return to them when a building team may have moved many miles away.

Operators say that if they were able to trigger this process without relying on a tenant request for service, they would be able to plan and execute deployment much more efficiently—in effect, proactively building in these MDUs at the point where their engineering teams are in place, rather than waiting for a tenant to request a service. Both these amendments are pure common sense; I hope that the Minister will accept them.

[Baroness Barran]

My Lords, I thank the noble Lords for tabling these amendments, which would allow telecommunications operators to apply to the courts for a Part 4A order without requiring a “lessee in occupation” in the property making a request for a service. I appreciate the intention behind the amendments, but we are concerned that both have the potential to undermine the balance between the rights of the landowner, the rights of the operator and the public interest.

The noble Lord, Lord Stevenson, referred to our comments in the Future Telecoms Infrastructure Review but we then consulted publicly on the policy in this Bill. What is here in the Bill reflects the outcome of that consultation. The Bill, like the rest of the Electronic Communications Code, was designed to create a fair and balanced framework to underpin the relationships between telecoms operators and landowners. We believe that it works because it is balanced and gives the interests of all sides careful consideration. We believe the Bill continues that balance. Where a landowner is unresponsive, for whatever reason, it is important to ensure that an interest other than that of the operator is being considered by granting an order which potentially impinges on an individual’s property rights.

This is the reason for the requirement that the lessee in occupation of the property actively requests that a telecommunications service be delivered. This is integral to the policy. This request is an unequivocal demonstration that the interests of parties other than the operator alone are reflected and goes to the heart of the Bill’s carefully crafted work, taking into account and balancing the respective interests of tenants, landowners and operators. Some network operators may well welcome the freedom of being able to judge for themselves what is and is not in the public interest and the ability to gain access to a property simply by proposing to make a service available. That freedom is what these amendments would give them. However, I hope noble Lords will agree that without any accompanying constraint on such a freedom, such a system could be capable of being abused, and that is a risk the Government are not willing to accept.

I am also mindful that these amendments would mark a significant shift from the policy that was consulted on, and that is something to be particularly cautious of when dealing with issues around property rights. With that in mind, I beg the noble Lord to withdraw his amendment.

[The Deputy Chairman of Committees]

No other noble Lords wish to intervene on this amendment.

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[Lord Livermore]

My Lords, Amendments 9 and 14 were tabled in the House of Commons, leading to a commitment that we will shortly consider a further Bill on telecommunications infrastructure security. Given the urgency with which the department claimed to be dealing with this matter, the retabling of these amendments provides us with an opportunity to see what, if any, progress has been made.

Let me be clear that the Labour Party supports the swift but safe rollout of 5G technology. Fully embracing this technology could fundamentally change how we live and work, creating countless opportunities for new forms of communication, entertainment, and so on.

Operators are very keen to get on with the job of rolling out 5G. As we have heard on a number of occasions, the previous lack of clarity over the role of high-risk vendors led to different companies taking different approaches. Some decided to press ahead, gambling on their mix of equipment, whereas others awaited more detailed guidance. The result is that, much like fixed broadband, we are not where any economy of our size should be. This has been compounded by the extraordinary conspiracy theories over the safety of 5G, which saw hardware targeted in the early stages of the Covid-19 pandemic. I know the Minister strongly criticised these myths at Second Reading and I hope she will do so again today.

As I mentioned previously, we have been promised an additional Bill to deal with the issue of security and high-risk vendors. We welcome this announcement but would like more detail on the timescales involved and the proposed scope of the legislation. As my Commons colleagues pointed out during their consideration of this Bill, concerns around Huawei have arisen because the Government have failed to nurture this sector here in the UK. Our lack of expertise and capacity in this country has left operators reliant on know-how and technology from overseas, including from high-risk vendors.

We have been told that there is a plan in place to reduce the market share enjoyed by these vendors. However, this will not happen overnight, and it certainly cannot happen without a proper, robust strategy, coupled with meaningful investment. I hope, therefore, that the upcoming Bill will not be about only security, as vital as that is. It needs to give us opportunities to debate the bigger picture. If, when the Bill is published, the direction of travel is still not entirely clear, we will need to use that process to shed more light on how the Government intend to get to their end destination.

We want to work with the Government to make 5G happen both quickly and safely, and to improve other forms of digital connectivity. We want to work with operators to ensure users right across the UK can enjoy the very best services. I hope that these amendments, coupled with the others we are discussing this afternoon, can be the start of a productive dialogue about how we make that happen.

[Baroness Barran]

My Lords, I have listened carefully to the debate on this amendment and thank all noble Lords for their extraordinarily high-quality contributions. I particularly thank the noble Baroness, Lady Falkner of Margravine, for her speech introducing the amendment.

As my noble friend Lady Morgan of Cotes explained, this is a matter of huge importance, in relation to both the security and resilience of our telecoms networks and the important and troubling human rights issues that the noble Lord, Lord Alton, covered in relation to the Uighurs. I fear that my comments now will not do justice to this issue, but I would like to put on record my recognition of his work in this area.

On the point that the noble Lord, Lord Livermore, just raised, I can reiterate that the Government continue to condemn those spreading myths about the links between 5G and Covid-19. There is no basis for those assertions.

Turning to the substance of this amendment, it is clearly an issue that the Government consider to be of paramount importance, as this House knows. The Government conducted a comprehensive review into the telecoms supply chain to ensure the security of our networks. The review set out that we will introduce one of the toughest regimes for telecoms security in the world, and I reiterate that high-risk vendors never have been and never will be in the most sensitive parts of our networks.

As my noble friend Lady Morgan said, this decision was taken with enormous care, given its importance. As my right honourable friend the Secretary of State said recently in the other place in relation to a similar amendment to the Bill, the Government will introduce legislation to establish this new regulatory framework as soon as possible.

This legislation will establish stronger national security powers to allow the Government to impose stringent controls on the presence of high-risk vendor equipment in the UK’s 5G and full-fibre networks. It will be a crucial step forward in implementing the conclusions of the Government’s review into the telecoms supply chain, which was underpinned by careful security analysis by our world-leading cybersecurity experts. It will implement a new and robust security framework that ensures the UK’s telecoms critical national infrastructure remains secure now and in the future, which I know is what is behind the amendment of the noble Baroness. Officials are working to develop that legislation as quickly as possible.

I am grateful to the noble Lord, Lord Clement-Jones, for agreeing with the Government that that piece of legislation will be the right opportunity to debate telecom security and high-risk vendors in detail. I hope that this gives your Lordships some reassurance that the Government remain absolutely committed to working with Parliament to ensure the security of our networks.

I understand that the intention of Amendment 9 is to impose a timetable for an effective ban on the use of equipment from high-risk vendors. However, our reflection is that, in practice, this amendment would not necessarily result in the removal of high-risk vendors from the network. Rather than incentivising operators to remove high-risk vendor equipment from their networks, operators could simply not make use of the powers in this Bill, thereby creating a barrier to many families living in blocks of flats who cannot access the benefits unlocked by new broadband services while having no practical impact on the presence of high-risk vendors in the UK’s telecom networks. That is clearly not something, listening to your Lordships today, that this House would like to see happen.

This Bill, in terms of its practical operation, is about access for fixed-line providers and not 5G services. Therefore, the impact of this amendment would not only be more limited in its practical implications than I believe the noble Baroness intends but could slow down the rollout of full-fibre networks and prevent the UK economy seeing the benefits that nationwide access to faster broadband networks could bring.

Amendment 14 is aimed at obliging telecoms operators who exercise Part 4A code rights to set out publicly plans to remove high-risk vendors from their networks to the satisfaction of a regulator. The Government have consistently made it clear that the security of our telecoms infrastructure is paramount. I know that the House shares this view. The amendment touches on details which will need clarification when we come to the telecoms security Bill, such as details around the information that plans should contain any sanctions and what would constitute satisfaction to a designated regulator. That is work to be done in the telecoms security Bill.

We have made evidence-based decisions in relation to high-risk vendors based on the world-class expertise of the National Cyber Security Centre. It has always been the Government’s position that operators should pay due regard to the NCSC’s advice on reducing their Huawei equipment to the recommended level as quickly as practicable. However, the Bill is neither the right place to put an obligation on operators to set out detailed plans, nor to designate an appropriate regulator to assess those plans. As I have made clear, the Government are committed to implementing a framework for telecoms security that is right for the UK’s specific security needs and takes into account the advice we have received from our cybersecurity experts.

This is an important debate which needs full consideration by Members in both Houses and the forthcoming legislation to implement the new telecoms security framework is the right vehicle to do that. The Government are committed to ensuring full consideration by Members in both Houses. On a personal note, I find it a real privilege to take part in a Committee with Members who have such expertise in the technology, security and human rights aspects. I know that my colleagues in the department will be keen to work with noble Lords as we progress with the security Bill and our ambitions to achieve faster broadband rollout. With that, I hope that the noble Baroness will feel able to withdraw her amendment.

[The Deputy Chairman of Committees]

My Lords, the noble Lords, Lord Adonis and Lord Alton of Liverpool, have expressed a wish to speak again, so I will call them in order and the Minister will answer after each noble Lord has spoken.

[Lord Adonis]

My Lords, I shall make a brief comment and ask a question in response to what the noble Baroness has just said. She and the noble Baroness, Lady Morgan, both talked about assessments of telecoms and infrastructure security that have been made historically. Does she accept that relations with China are dynamic and appear to be particularly so at the moment, in dealing with the Covid epidemic and its fallout, which could have a significant bearing on future relations, not only with us but with the West. Are the Government cognisant of that?

Because I have not been following these things very closely, my question is this. Have the Government given a categorical undertaking to introduce a telecoms security Bill before the summer?

[Baroness Barran]

I think the noble Lord knows that the Government are absolutely cognisant of how international relations with multiple partners, including China, evolve. The current situation is obviously unprecedented. Forgive me, but I must ask the noble Lord to repeat his second question.

[Lord Adonis]

My question was: have the Government given a categoric undertaking to introduce a telecommunications security Bill before the summer?

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[Baroness Barran]

I apologise to the noble Lord. We have said that we will introduce the Bill as soon as possible, but the Covid situation has caused some disruption to the parliamentary timetable. The commitment to do it as quickly as possible stands, however.

[Lord Alton of Liverpool]

My Lords, first, I thank the Minister for the way she has responded to the debate, particularly her remarks about how important this question is. What she just said to the noble Lord, Lord Adonis, is particularly interesting. If there has been slippage in the legislative timetable, and I recognise the reasons for it, surely that makes it even more important that this paving Bill—that is what this is, effectively—is the right place to address these questions. If it is not, they will go off into the future and we know that the future can be the long grass.

It is the age-old argument about the right place and the right time but, given the Minister’s welcome remarks about the importance of this issue, may I ask her to do one thing between now and Report? I would be very grateful if she could assure the Committee that she will liaise with the noble Lord, Lord Ahmad of Wimbledon, at the Foreign Office and the noble Baroness, Lady Williams of Trafford, at the Home Office about our obligations, referred to in my remarks, under Section 54 of the Modern Slavery Act 2015. These require any company with a turnover of more than £36 million to publish details of what steps they are taking to prevent modern slavery. Perhaps in that period there could also be a meeting with me, my noble friend Lady Falkner and the Independent Anti-slavery Commissioner, who was appointed by the Government. He could come in and talk further to the Minister about our obligations and why we really need to act now, rather than push the matter off into the future.

[Baroness Barran]

I shall answer that in two ways, if I may. Of course, I would be delighted to meet the noble Lord in conjunction with my noble friends Lord Ahmad and Lady Williams, and with the noble Baroness, Lady Falkner, if she wishes to join. We can pick that up after the Committee. I assure the Committee that there is no loss of will or momentum on the Government’s side about the telecoms security Bill. Purely practical issues prevent me giving a firm date for its introduction.

[Baroness Falkner of Margravine]

My Lords, I start by thanking the Minister for the manner in which she has dealt with this Bill. I will take up that offer of further conversations on it. In the meantime, I shall briefly address some of the issues raised by noble Lords.

I was grateful to the noble Lord, Lord Adonis, for his support. Yes, these amendments are very close to those tabled in the House of Commons. They are certainly in scope of the Bill, and he will be reassured to know that Chi Onwurah supported them in the House of Commons in February and March, and in fact moved one of them.

I think the noble Lord, Lord Adonis, mentioned the new US-Australia trade war when he meant, I think, the China-Australia trade war. I say that just for the Hansard record. I think that is what he meant. I will leave it at that.

I was enormously grateful to the noble Lord, Lord Alton, for his speech. He has great knowledge of human rights around the world. He is right to say that we have collaborated over a very long period on the situation of the Chinese Uighurs. It saddens me that that seems to have dropped off the agenda completely in the light of the Covid story. From what I read on the internet, those people have higher rates of infection and they were infected in their internment camps and so on. It is something we must continue to watch.

I come specifically to the comments made by the noble Baroness, Lady Morgan of Cotes. I accept that the Bill is a less than ideal vehicle for the passage of these amendments, but I reiterate that they are not wrecking amendments of any sort. They are to strengthen the Government’s hand and to give predictability to providers about the necessary risks that face them as we go forward. She said that the manifesto target was part of the levelling-up agenda to improve connectivity, but I do not believe that United Kingdom citizens who have their personal details stolen or their financial details sold on the dark web and suffer losses would be grateful to the Government for having rolled out 5G perhaps 24 months sooner than if they had used an alternative provider. She and the Government may find themselves on the defensive when such things happen.

The noble Baroness also said that she believes that the decision is right in its assessment of risk, but future risk is always best approached tentatively, after careful evaluation. The most important thing is that the best way to evaluate risks is to have conversations with others who have been victims of the malpractice, particularly when the others are your trusted friends.

That brings me to the remark I find almost patronising on her part, when she warned us that those supporting the Bill in the House of Commons were perhaps part of an agenda to do a trade deal with the US—in other words, she was implying that those of us supporting the Bill here, particularly me, are being naive in our support for the discussions that took place in the Commons. I have pointed out that I do not think that one could accuse Mr Jeremy Corbyn, who added his signature to the Bill, of being desperately keen to do a trade deal with the US, or of being one of the usual suspects in terms of the European Union research group. I can reassure her that not only have I served on the National Security Council, but I first went to China 42 years ago, and I know it fairly well. So I am not walking into this with my eyes closed.

Let me also say, as I am looking at the noble Lord, Lord Clement-Jones, on the screen and having been reminded of his Huawei connection, that perhaps I needed to have declared that I serve as a vice president of the APPG on China, along with the noble Lord, Lord Clement-Jones, who is the vice chairman, if I recall correctly. So I have been engaged in Parliament in a very positive way with China as well.

It is almost trivialising to suggest that the motivation of lawmakers trying to improve legislation in the House of Lords is somehow guided by groupthink, or by a desire to fall into a certain line. All lawmakers across the House are motivated by the desire to do the best by the country, and there is nothing more important when trying to do the best by a country than caring for its national security.

I come to the noble Lord, Lord Livermore, and his questioning of the telecoms security Bill that the Minister has reassured the House will come to us shortly. In response to the question from the noble Lord, Lord Adonis, Mr Oliver Dowden gave repeated reassurances in the House, but only after some considerable pressure, that the Bill would be brought back before the summer.

I would actually be entirely content to deal with the context of the telecoms security Bill only when the House returns in full form, so that we can have the appropriate scrutiny of the Bill that we need in the proper manner. That Bill is of such critical importance to our national security that this virtual proceeding, and allowing Bills to go through on the basis of their being possibly uncontroversial, simply will not do. I say to the Minister that I would rather the Bill came back somewhat later than when the House is not ready to receive it in full, in the normal way.

Let me conclude by thanking the Minister for her very positive tone. I accept that she is eager to engage with those of us who have concerns and reservations, and I will go away and read her comments on these amendments more carefully, and will then consider my response and whether I will bring the amendments back on Report or not. On that basis, I beg leave to withdraw the amendment.

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[Lord Livermore]

My Lords, I am grateful to the noble Lord, Lord Clement-Jones, for tabling and introducing this amendment. It is relatively straightforward, but it could have far-reaching consequences for operators.

As the noble Lord outlined, the Bill currently defines “connected land” as being in common ownership with the target premises. Operators who have contacted us have expressed concern that this will limit their ability to roll out new technology, particularly in rural areas, where infrastructure may have to cross multiple fields to reach the desired building. They believe that removing the common ownership provision will also help accelerate their deployment of high-speed services to small businesses and other commercial properties.

Given our previous debates on the economic benefits of improving connection speeds, we should ensure that this Bill facilitates such work. There was clearly a rationale for including this provision in the Bill, so I hope that the Minister will be able to clarify the position and its practical impact on the provision of new connections. Should she accept that the requirement may have unintended consequences on the ability of operators to roll out new infrastructure, I hope that officials can look again at the detail and engage with the sector to address its concerns.

[Baroness Barran]

I thank the noble Lords, Lord Clement-Jones and Lord Fox, for tabling this amendment. The noble Lord, Lord Clement-Jones, asked for a positive and ambitious response—I think those were his words. I hope to give him a positive response, but I fear that it will be a practical one.

This amendment seeks to understand our thinking on the key concepts of connected land and common ownership, and the impact of this link on the speed and ease of the rollout of gigabit-capable broadband. As the noble Lord, Lord Livermore, outlined, the concepts of connected land and common ownership form a vital underpinning of the Bill.

It may be helpful to noble Lords if I give a slightly more technical explanation of the concept of connected land. In technical terms, let us consider land in respect of which an operator wishes to have code rights, which we will call Land A. In order for Land A to be “connected land”, it must satisfy both limbs of the definition set out in paragraph 27B(3) of the code. It is not enough that it is used for access to, or otherwise in connection with, the target premises—limb (b). Land A must also be in common ownership with the target premises—limb (a).

The concept of common ownership as drafted in the Bill therefore stands and falls with the need for Land A to be held or used for access to, or otherwise in connection with, the target premises, as contained in limb (b).The definition of “common ownership”—as set out in paragraph 27I(2) of the code, towards the end of Clause 1—will catch two pieces of land which have the same freeholder, or which are held under a lease of any sort by the same person. It will also catch two pieces of land where the same person owns an interest in each but at a different level; for example, where a person owns the freehold of one but is the lessee of the other. I am happy to give practical examples of that point if that would be useful to your Lordships.

The connection set out in paragraph 27B(3) of the code is a conjunctive test, so both limbs (a) and (b) are needed for the concept of “connected land” to work. Without that, the essence of the concept of connected land is removed, and it is completely integral. The amendment would remove the requirement for the land to be in common ownership, thus allowing operators to use this policy on any land that exists between their exchange and the target premises. In practice—this is the key reason why the Government do not support the amendment—it would give operators code rights to access land where a landlord was not responsive. A landlord who has no connection to the properties where the operator is going to make their installation could be opened up to potential Part 4A orders, which we believe is disproportionate.

There are other, technical points which could affect the powers in the Bill with the amendment as currently drafted. Paragraphs 27I(2) and (3) seek to define “common ownership” and “relevant interest”. This was designed to ensure that the Bill worked within the different ideas of land ownership in Scotland. The amendment would render those paragraphs ineffective and affect the efficacy of the Bill, particularly in Scotland.

While I recognise that operators are encountering significant problems gaining access rights in situations other than multiple dwelling buildings, this Bill is not the right vehicle for a change as profound as this. My officials have engaged with them, and representatives of landowners, on these points and we are considering what, if any, action could be taken to support delivery if evidence emerges that further interventions are necessary. With that reassurance, I hope that the noble Lord will agree to withdraw the amendment.

[The Deputy Chairman of Committees]

I understand that the noble Lord, Lord Fox, has indicated that he wishes to speak after the Minister.

[Lord Fox]

I thank the Minister for her anatomical explanation of the situation. Large lumps of Victorian and Georgian cityscapes have been converted into a multiplicity of dwellings and flats, many of which are going to find themselves unable, within the definitions of limbs (a) and (b) and the rules set out in the Bill, to request access. Is that correct? There is obviously complicated ownership in all such places: perhaps the need to go through one flat to get to another; there may be leaseholds and freeholds muddled up. However, the point of the Bill should be to get gigabit broadband capacity to as many people as possible, rather than rule out everybody except a very pure clay of candidates. Perhaps the Minister is grasping—albeit eloquently—at the wrong end of this stick.

[Baroness Barran]

I thank the noble Lord for pressing this point. I cannot comment on the specifics of different layouts. As he noted, this is a very complicated area. We have tried to listen to operators on the issue of unresponsive landowners more widely and they have highlighted difficulties where there are owners of third-party land which the operator needs to cross in order to deploy their equipment.

As I said, we are very concerned that the risk of a non-responsive landlord and the operator then getting code rights would be disproportionate and would unbalance the Bill. However, the noble Lord makes a fair point about the spirit of the Bill being to open up access. We certainly share that goal and I will take his points back and consider them further.

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[Lord Fox]

I agree with the two previous speakers. The Bill would mean that a landlord could be considered responsive simply by acknowledging the request notice in writing without taking the engagement further. In fact, it is pure territory for what I would call passive-aggressive obfuscation—a serious of meaningless letters going back and forth but leading, in the end, to absolutely nothing. It would mean, in the end, the operator being unable to meet the needs of the potential customer. Frankly, the operators have so many other options at the moment that they would simply walk away and go where it is easier to install, leaving yet another person disfranchised from the digital economy. We have heard from operators that they are identifying landlords who will potentially act in this way.

Again, this is a proving amendment; I thank the noble Lord for moving it. What constitutes a meaningful response that moves this forward? Put simply, a passive-aggressive, obfuscatory approach will mean that, in the end, a bad landlord or a landlord who really does not want to enfranchise their tenants will win.

[Baroness Barran]

My Lords, I thank noble Lords for tabling the amendments, which would require a landlord to respond to the substantive point of the notice—that is, providing access. The amendments seek to examine our thinking on allowing a landlord to remove themselves from the scope of Part 4A simply by responding to the operator’s notice. The Government understand and appreciate the intention behind the amendments, but there is the potential for unintended consequences, if the noble Lord, Lord Clement-Jones, will forgive me for saying so.

The Bill was created to address the specific problem of the repeatedly unresponsive landlord. That is what telecoms operators have told us is one of the biggest issues they face when it comes to rolling out networks. The Bill was not intended to offer a solution to instances where a landlord may take longer than the operator would like to agree to the terms proposed in their request notices. The noble Lord, Lord Fox, gave the example of the passive-aggressive landlord, but there could be absolutely fair instances where a landlord sends a holding response because they are seeking legal advice. The Bill gives flexibility for that, but its real focus is on incentivising landlords and operators to engage with each other in the first place. We believe that the Bill, as drafted, reflects that crucial distinction.

As was discussed in the debate on previous amendments, we are aware of the challenges that some operators face in reaching agreements with landlords. We have held numerous discussions with a wide range of stakeholders since the implementation of the reforms to the Electronic Communications Code in December 2017, and we continue to do so, but we do not think that this Bill is the appropriate vehicle for addressing the wider range of ongoing access issues. Any broader changes to the code would need to be carefully considered and consulted on, but if we saw sufficient evidence that there is a problem, we would of course consider what intervention to take.

--- Later in debate ---

[Lord Fox]

I am grateful to the noble Lord, Lord Adonis, for introducing this, because it throws up a sort of paradox—although the noble Lord did not mention it—and I am interested to know the Government’s view on it. In certain categories of installation government money is going across either directly or through local authorities into investment in installation and hardware. Are the Government suggesting that state-subsidised and state-supported hardware would not be mandatorily interchangeable?

[Baroness Barran]

My Lords, I thank the noble Lords, Lord Adonis, Lord Griffiths and Lord Stevenson of Balmacara, for tabling Amendments 15 and 16. As I have said several times in Committee, the aim of the Bill is to support lessees in occupation to access the services they request from the providers they want. As drafted, we believe the Bill already ensures that they are not locked into services provided by a single provider. Nothing in this Bill prevents a person with an existing gigabit-capable—or indeed any—connection from requesting another service from another network provider. Nothing in the Bill prevents such a provider from requesting code rights from a landlord. If the landlord repeatedly refuses to engage with that provider, then, as we discussed earlier, that provider could apply for a Part 4A order of their own to deliver the service.

I understand that operators may be concerned that certain of their competitors may install their digital infrastructure in such a way as to physically prevent others installing their own. However, we consider that this issue could be better dealt with through the terms of an agreement imposed by a Part 4A order. Those terms are to be specified in regulations made subject to the affirmative resolution procedure. Noble Lords will be aware that the Delegated Powers and Regulatory Reform Committee recently considered the Bill and concluded that there was nothing in it to which it wished to draw the House’s attention. Noble Lords may also be aware that that particular regulation-making power is subject to a consultation requirement that is expressly set out in the Bill. This reflects our concern and commitment to get this crucial aspect of the Bill’s practical operation right. The Bill therefore already envisages that the views of interested parties will be invited before the regulations are made.

With each operator undertaking works in a slightly different manner and there being a number of differences between network infrastructures, it is exceptionally difficult to place into primary legislation a requirement for operators to undertake works in a specific way or in a way that cannot easily be circumvented, for example by an operator stating that it was not “reasonably practicable” to select and install apparatus. Furthermore, far from improving competition and access to gigabit services, the amendment may have the unintended consequence of doing the opposite.

The noble Lord, Lord Adonis, referred to the words of my honourable friend the Minister for Digital Infrastructure in the other place, when he said that much of the cost to operators of connecting premises is in the initial installation. The noble Lord challenged whether this was an anti-competitive statement, if I followed his comments accurately.

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[Lord Adonis]

I am extremely grateful to the Minister. As she says, there are drafting issues, but I am sure that if they were the only concern we would all be happy for the Government to do the drafting for us. There seems to be a contradiction in the Government’s position. May I ask the Minister to clarify it? Is she saying that under the Bill as drafted, and the terms of the agreement with the proposed Part 4A order, alternative operators will or will not have easy access to new infrastructure? To prevent people unfairly undercutting initial investors, it is important that they should not. It is not clear to me and that point seems to go to the heart of the Government’s argument. Are they arguing that operators will have easy access, so that what is proposed here is irrelevant; or that operators will not have easy access, which is intentional because if they did, there would be undercutting? Which of those is the Government’s position?

[Baroness Barran]

The Government’s position is that there is fair access, in that any provider can apply for a Part 4A order of their own to deliver a service. Alternative operators have equal access to the existing operator or other alternatives.

[Lord Adonis]

That is a very helpful response because it seems to indicate a possible way forward in a redrafted amendment that underpins fair access. In my proposed new sub-paragraph (3) to new paragraph 27F, instead of saying

“that alternative operators can easily install the hardware”

it should say that they can install their hardware on a fair basis. My sub-paragraph (4) would then be the definition of fair, to be provided by Ofcom. I do not want to press the Minister too far, but can she at least undertake at this stage to look at such an amendment, without making any commitments to come back on Report, and write to me about it?

[Baroness Barran]

What I am saying is that we believe that we already have a fair system and that this could best be explored in the accompanying regulations. However, I will be happy to write to the noble Lord on the point.

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[Lord Fox]

Amendment 17 seeks to remove the 18-month time limit, while Amendment 19 seeks a mechanism that would extend it. Both amendments are guided by the same curiosity. In a sense, what was driving the Government’s objective in including the limit of 18 months? As the noble Lord, Lord Stevenson, asked, why was the period of 18 months chosen? Why not 20, 16 or 28? What was the economic analysis that arrived at 18 months? In consulting with operators, what was it that any operator said that encouraged the Government to put this clause in? I cannot imagine it was anything, so I can conclude only that it was about what grant is set. We are back on the same balance of the equation in terms of where the Bill balances itself between the granters and the operators, who are essentially the champions of the consumer in this process.

Can the Minister explain what it was that the granters, landlords and owners put to the Government that pushed them into putting in this 18-month time limit? As the noble Lord, Lord Stevenson, said, it will seriously compromise the investment prospects for operators, particularly in difficult or harder-to-reach areas––possibly places like where I come from in Herefordshire. Why would an operator invest huge sums of money without any security, knowing that in 18 months’ time that investment could be written down to zero? These amendments together are all part of the same spirit of inquiry. What was the Government’s thinking when this was included in the Bill?

[Baroness Barran]

I thank noble Lords for tabling Amendments 17 and 18. I will do my best to address the very valid points raised.

I will clarify the intention of the amendments. Amendment 17 seeks to examine the rationale for placing a maximum time period of 18 months for the interim code rights granted under a Part 4A order in the Bill. Amendment 18 would require the Government to consult on the maximum time period for which the interim code rights should last. I want to highlight, in response particularly to the point made by the noble Lord, Lord Stevenson of Balmacara, that the Government have already consulted on the principle that there should be a period during which code rights arising from this Bill should last.

In the original consultation for this policy in October 2018, we proposed that these rights should be enjoyed until an agreement was reached with a landowner. A number of responses to that consultation made compelling arguments that we should consider imposing a maximum time limit. This was to ensure that operators continued to engage with landowners to try to reach a permanent agreement, and to ensure that the important balance of rights was maintained. I hope noble Lords agree that an indefinite time period could risk being open to abuse, deliberate or otherwise, and importantly potentially leave both landowners and operators with great uncertainty.

It was never the intention that this process should replace the existing process under the code, by which an operator can apply to the court to have permanent code rights imposed. That process requires the judiciary to carefully consider the merits of the case before it, and to make a judgment on which rights should be imposed, and potentially any compensation or consideration to be paid. The process envisaged under a Part 4A order requires the judiciary––in this case, the First-tier Tribunal––to be satisfied that the evidential requirements laid out in the Bill have been met.

This leads us to the maximum 18-month time limit that we have settled on. Following consultation and subsequent stakeholder engagement with representatives of operators and landowners, they informed us that, in practice, when a landowner does not respond to requests for access, if an operator continues to make attempts to engage, the majority of landowners will eventually respond within approximately 12 months. Setting a slightly longer time period gives the operator a degree of flexibility. Another reason for the decision to set the time limit for the Part 4A interim code rights at 18 months was to provide certainty to consumers. Most consumer broadband contracts last for either 12, 18 or 24 months. Placing the time limit at 18 months, depending on the speed with which the operator can enter the property after a successful application, will allow consumers to enter into a standard contract for either 12 or 18 months, enjoy the special discounts offered by retail broadband providers for those taking out such fixed-term deals, and be confident that their service will be uninterrupted for its full duration.

I ask your Lordships to note that the Bill contains a clear power to make regulations to specify the period for which code rights arising from the making of a Part 4A order are to last. New paragraph 27G(3) of the code, as inserted by Clause 1 of this Bill, makes clear that the specified period is to be no more than 18 months, and it will be for the regulations made under that power to specify the period itself.

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[Lord Fox]

I thank the Minister for her answer; I felt the language was revealing. Perhaps I am confused and the legislation has confused me, but the way in which she described the process was as if she was trying to calm down someone who did not want this to happen, rather than encourage someone who did. “No more than”, “a maximum of”—this is language that I would use if I were trying to pacify someone who did not want this to happen, which perhaps is what is happening. She mentioned that there had been a number of responses that led to the 18-month period being adopted. Perhaps she could indicate, without revealing exactly who those responses were from, which sector they came from—was it the operators, or was it landowners and potential granters of this technology?

I think that to use legislative nit-picking, if the Minister will excuse the phrase, to unseat probing amendments such as Amendment 19 is a little below the belt. The idea is not to complete a work of drafting genius; it is to get the Government to commit time to produce something that instils some flexibility into the Bill and provides an opportunity to extend things when they need to be extended and puts the courts and due process, if noble Lords will excuse the phrase, in place in order for that to happen.

[Baroness Barran]

I thank the noble Lord for his remarks. Just to clarify, I am sorry if the language sounded pacifying. The noble Lord will remember that in an earlier amendment I talked about the spirit of the Bill being about incentivising communication between landowners and operators. The aim of this is to bring clarity and certainty to all involved, including consumers.

In the consultation we had responses from landowners and local authorities. The noble Lord will not be surprised to know that some who responded thought this was too short a period and some that it was too long, so this feels like a bit of a Goldilocks moment. There is a balance to be struck between the flexibility that the noble Lord rightly points to and clarity and certainty. Based on the consultation responses that we received, we hope that we have achieved that balance.

[Lord Stevenson of Balmacara]

I am very grateful to all those who have contributed, particularly the Minister, whose detailed explanation deserves further consideration and I will read it very carefully in Hansard. I am also delighted to have escaped at least one amendment that did not get criticised for having unexpected consequences, so I must have got something right on that one.

This is very difficult to get right and I appreciate the difficult issues that have been raised. I will reflect on what has been said. In the meantime, I beg leave to withdraw the amendment.