Product Security and Telecommunications Infrastructure Bill
(Limited Text - Ministerial Extracts only)
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Mr Deputy Speaker (Mr Nigel Evans)
I inform the House that Mr Speaker has not selected the reasoned amendment.
The Secretary of State for Digital, Culture, Media and Sport (Ms Nadine Dorries)
I beg to move, That the Bill be now read a Second time,
We are living in the digital age. It is not only our computers and smartphones; Brits young and old have an average of nine connected devices in their house, from smart speakers and TVs to baby monitors and doorbells. We are more connected than ever, and we need to make sure that those connections are fast and secure. The Bill will achieve both those aims. It will take our roll-out of gigabit broadband and 5G to the next level while boosting the protection of citizens across the UK.
If there is one thing we have learned from this pandemic, it is how central technology is to our everyday existence. We need technology to work remotely; we need it to reach our children and to drive scientific breakthroughs and business innovations; we need tech to be interoperable—I struggled to say that—because we are living in a world where our baby monitors, kettles and doorbells will all be able to talk to one another; and we need tech that is secure.
Underneath all that, we need the digital infrastructure to support all those connections—the ones that we make minute by minute, hour by hour and day after day. Such networks are vital for the UK’s future prosperity. We cannot stay at the heart of the global economy if our connections are not world class, which is why the Government have made huge investments in digital infrastructure.
Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
Unfortunately, my constituency has one of the slowest broadband speeds in the UK. In one area in particular, Cilycwm, a WeFibre gigabit scheme has been sitting on the Department’s table for eight or nine months. Will the Department come to a determination quickly so that we can move forward with that scheme?
Ms Dorries
I certainly will. As I am sure the hon. Gentleman is aware, we are moving forward at an absolutely rocketing pace, but I will have a look at the situation in his constituency. I assure him that nothing sits on the Department’s table—it has all gone out to the providers and those going through the procurement process—but I will check on where things are up to in his constituency. If he could contact me with some details after the debate, that would be helpful.
Because the Government have made huge investments, at least 97% of premises now have access to superfast broadband, which is fast enough for a family to stream five different Netflix films in five different rooms in the same house at the same time.
Rachel Hopkins (Luton South) (Lab)
The Secretary of State has just talked about the ability to activate fast broadband in five different rooms, but constituents in my Luton South constituency do not have five devices on which to watch five different Netflix films. Should the Government not be doing more on that basis?
Ms Dorries
We are. The roll out of superfast broadband and gigabit broadband, in respect of which we have covered 65% of the country in just a few years, is levelling up in practice. It is about making sure that anybody who wants access can have it. We are working with Ofcom and the providers to look at left-behind areas in terms of levelling up and how we can increase access to laptops and—this happened particularly during the pandemic, in the first lockdown—how children in particular can access the internet so that they have the same equal access and opportunity as everyone else.
As we have upgraded our networks, we have invested more than £4 billion in our cyber defences since 2016, including by setting up the National Cyber Security Centre. As we all know, the nature of tech is incredibly fast-paced and constantly changing and growing. Monthly broadband usage has doubled since 2018 and continues to rise year on year. But the more we log on, the more open we are to cyber-threats, particularly as new technology—including cutting-edge consumer products such as smart baby monitors—is not always secure by design. To stay ahead of the game we need to keep investing in tomorrow’s networks and to secure ourselves against future threats, which is why we have introduced the Bill.
Let me explain the Bill’s impact in our telecoms networks before I turn to its measures on product security. In 2019, the Prime Minister promised voters a “broadband revolution” and vowed to deliver fast, secure and reliable broadband to everyone in the country. That was an important promise in 2019 but it is even more vital today as we build back from a devastating global pandemic.
We are delivering on our promise. Under this Government, nationwide gigabit coverage has jumped from just 11% at the end of 2019 to 65% today. We have set ambitious targets for the rest of the roll-out and aim to reach a minimum of 85% of homes by 2025 and to get as close to 100% as we can as soon as possible. We are constantly looking for ways to go further and faster with that roll-out. For example, we have already legislated to address the problem of absent or unresponsive landowners, who can hold up the deployment of gigabit broadband in blocks of flats, and we are currently consulting on proposals to amend the building regulations to ensure that all new homes have gigabit from the outset.
At the same time, we are working hard to improve our mobile phone networks, so that people can enjoy world-class connectivity not just when they are at home or work, but when they are out and about. We have agreed a £1 billion deal with the industry to roll out the shared rural network, which is already delivering improved 4G coverage across the UK. Both the operators and the industry remain confident that they will reach 95% of the country by the end of 2025, and we are aiming for the majority of the population to have the next level of cutting-edge 5G mobile coverage by 2027.
James Murray (Ealing North) (Lab/Co-op)
Many of my constituents in Northolt are not able to access faster broadband through a fibre connection. I have repeatedly pressed Openreach on this, and it admitted that one of its cabinets had not been upgraded as it did not meet the commercial criteria. Just last week, I also pressed Virgin Media, which said that it had installed broadband in on Islip Manor Road but not on Islip Manor estate, next door. Will the Secretary of State confirm when, under the Government’s plans, all my constituents in Northolt will be able to access a decent broadband connection?
Ms Dorries
The hon. Member’s question is quite detailed, right down to street names, so I will take it away and we will speak to Openreach. The Department will see what we can do and come back to him, although that is not a promise that we will suddenly be able to connect Northolt. I am interested to hear about individual constituencies, because it is useful to us to know that information. We have not said that everybody is going to have superfast or gigabit broadband tomorrow; we have set dates by which to reach our targets. We will do our very best for the hon. Member, if he lets me know the details of the case he mentioned.
Things like 5G and gigabit have the potential to be truly transformational for people and businesses. They are vital for innovation, and can unlock huge economic and social benefits across every single corner of the country—not just driving our recovery from covid, but boosting our generational mission to level up the UK. We therefore need to ensure that the legal framework underpinning our digital infrastructure encourages and enables the deployment of the latest networks. In 2017, we made changes to that legal framework, implementing reforms to the electronic communications code that regulate installation agreements between landowners and telecoms operators.
Antony Higginbotham (Burnley) (Con)
My right hon. Friend is making an important point about ensuring that we have the infrastructure that we need for the 21st century, not the 20th century. But one of my constituents’ concerns—I know that the constituents of my hon. Friend the Member for Hyndburn (Sara Britcliffe) have a similar concern—is that when private sector providers come in and install new equipment such as telegraph poles, dishes and things like that, if they do not properly engage with residents and the local community, that can blight some of our streets and add unnecessary infrastructure. Does my right hon. Friend agree that when we encourage providers to install such equipment, they should engage with communities and residents, so that we carry people with us?
Ms Dorries
Community engagement and engagement with individual households is vital. People need to know that the connectivity is there. I will look into my hon. Friend’s point and take it further.
Ben Lake (Ceredigion) (PC)
In a similar vein to the hon. Member for Burnley (Antony Higginbotham), I have received a number of concerns from site providers in my rural constituency that have hosted telecommunications infrastructure, in some cases for a decade or more. When the code was last before the House, we were led to believe that the rent reductions would be minimal. However, it has transpired that in some instances, rent offers have been reduced by about 90%. I am interested to know whether the Secretary of State has any comments on that point, and whether there is a way of rebalancing things. We want to ensure that this infrastructure is there to benefit the community, but we do not want site providers to have to sacrifice what is, in many cases, very valuable agricultural land.
Ms Dorries
I am coming to the first point raised by the hon. Member. On his second point, which was about rebalancing, I am afraid that he is probably going to be disappointed.
John Redwood (Wokingham) (Con)
I strongly welcome massive private-led investment in proper broadband, which is what we all need. Could the Secretary of State give guidance to the companies doing it that it is not helpful if they bury cables under main roads, requiring the roads to be dug up again every time they want to improve or mend a cable? Could we not do better, either in ducts or by the side of the road?
Ms Dorries
An interesting point. I will certainly take that back to BDUK, Openreach and others. We need to ensure that the legal framework underpinning our digital infrastructure encourages and enables the deployment of the latest networks. In 2017, we made changes to that legal framework. Implementing reforms to the electronic communications code—this goes to the point made by the hon. Member for Ceredigion (Ben Lake)—requires installation agreements between landowners and telecom operators. The aim was to make it easier for digital networks to be installed, maintained and upgraded, and now we will go even further. The Bill will update the electronic communications code to deliver on the Government’s ambitions for digital connectivity and levelling up. Specifically, it will do three things: make the most of existing infrastructure; encourage stronger and more collaborative relationships between telecom operators and site providers; and build on previous measures to tackle the issue of non-responsive landowners.
Daisy Cooper (St Albans) (LD)
In my constituency of St Albans there is the Highfield Park Trust, run by a group of volunteers. Since the 2017 reforms, it has lost 98% of its income from hosting a mast because of the telecoms company using its new powers to renegotiate the lease. Does the Secretary of State agree that that poses a real risk to the roll-out of 5G, because in some instances small site owners might decide that it is not worth their while anymore and just evict the telecoms companies? Is she willing to look at the issue again, and at the power imbalance that has arisen from the 2017 reforms?
Ms Dorries
In 2017, the prices were too high and they affected the overall roll-out. The new pricing regime is more closely aligned to those of utilities such as water, electricity and gas, which are fair. In order for us to roll out 5G to future-proof our digital economy and our telecoms, and to reach the targets of ensuring that we have 4G/5G coverage and 100% gigabit roll-out as soon as possible, we need to ensure that telecom providers can access land to establish both masts and the facilities that we need to make it happen. It has to be fair. We are not revisiting the code of 2017; the Bill does not do that. It will stay as it was, and there will not be a revision to the pricing regime. It is important that I make that clear straightaway.
Sir Desmond Swayne (New Forest West) (Con)
The Secretary of State highlighted that the prices were once too high. Now we have had multiple complaints that the prices are too low. Clearly, the question of valuation is at the heart of the matter, so why did the Government explicitly exclude valuation from the scope of the consultation that preceded the Bill?
Ms Dorries
We have listened to landowners. We have not introduced the legislation without involving them in its development. We have included measures in the Bill that make it easier for landowners and operators to use a dispute resolution if landowners feel that they are not getting a fair price. That means greater collaboration, and it makes preposterously low offers less likely. Hopefully, a fair and reasonable price would be agreed. If landowners were not happy with it, it would go to independent arbitration. If they were then unhappy with that, they would have recourse to the courts, which we know would look very dimly on a situation where the telecom providers had been neither reasonable nor fair to landowners. We think that that is a fair and reasonable process.
Making the most of existing infrastructure can play a key role in upgrading services and increasing competition. Under the Bill, operators will have the automatic right to upgrade or share apparatus installed before the 2017 reforms. That will be subject to specific conditions to ensure that the work does not negatively impact landowners. The measures have been considered carefully to deliver significant benefits, while ensuring that there will be little impact on landowners. The Bill also rationalises the way that certain older code agreements are renewed so that they reflect the code as reformed in 2017. This means that there will be greater consistency in how agreements are renewed across the UK. On that basis, the 2017 coding agreements will not be revisited.
All those things will make much better use of existing infrastructure, reducing the need for new installations. That means less disruption with fewer street works and fewer mast installations in both rural and urban settings—something that, I am sure, will welcomed in all parts of the House. We will take away that community disruption. In response to my right hon. Friend the Member for Wokingham (John Redwood), I will take away his point about cables being laid under roads. In the area where I live, it is done under the pavement right outside my house. I would imagine that there is a good reason why that has to happen in some areas, but I will get back to him with what it is.
Secondly, we want to build stronger, more constructive relationships between network operators and potential site providers. We are introducing measures to make it easier for those two parties, when negotiating agreements to install telecoms apparatus, to use an alternative form of dispute resolution if a disagreement arises such as I have set out. This will encourage constructive dialogue between networks, operators and potential site providers. It will help new agreements be reached more quickly and address situations where landowners may feel compelled to accept terms offered by operators.
Finally, we are creating a new court process to address situations where landowners are not responsive. This process will provide a quick and inexpensive route for operators to gain access to certain types of land. Again, these measures have been developed to strike the balance between protecting landowners and ensuring that everyone across the UK has access to reliable and quick digital infrastructure.
We need this infrastructure because of the sheer demand on our networks. Just think of all the devices that are in use at this very moment. Millions of people will be switching on their smart TVs to stream a film or a series box-set, unlocking their phones or tablets to call a friend or a relative, or asking their smart speakers to play music or give information. Around this Chamber, right now, many wrists are sporting smartwatches that keep us up to date with the latest news or alert us to the fact that we have a new message from those infamous WhatsApp groups. [Laughter.] Sorry—I just couldn’t resist.
But with every connectable product that enters our lives, the risk of cyber-attack grows. In the first half of 2021 alone, we saw 1.5 billion attacks on connectable products—double the figure for the same period in 2020. Most of us assume that if a product is for sale in the UK it is safe and secure, but thousands of people in the UK have been victims of cyber-attacks. Many of them have lost significant amounts of money or have had their private data hacked and shared, and they have lost trust in the idea that they can connect with one another and go about their daily lives with confidence. This is not just damaging on a personal level; it also has serious implications for our national security. Cyber-criminals now have the ability to use compromised connectable products to attack large infrastructure. We saw this with the 2016 Mirai attack, which targeted anything from baby monitors to medical devices to home appliances to disable internet access across much of the US east coast.
In the past few years, this Government have made significant progress to strengthen the UK’s cyber-security. In 2018, we published a code for manufacturers to improve the security of their own consumer devices. We led the world on this, and that code has since been used by countries such as Australia and India to inform their own product security principles. However, the cyber landscape is constantly evolving and our approach needs to evolve with it if we want to stay safe.
We have reached the point at which legislation is required to protect citizens and networks from the harm posed by cyber-criminafls. Packaged together, the telecoms and product safety measures in the Bill will work in tandem to do just that, creating a reliable, fast broadband while supporting the growth of more secure consumer connectable products.
The Bill will enable the Government to specify a number of mandatory security requirements for smart devices. They will be set out in regulations, but manufacturers are already on notice regarding what the initial three requirements will be. The first is a ban on universal default passwords. Too often, consumer connectable products come with easy-to-guess passwords as their default setting, such as “password”, “admin” or four zeros. That makes them vulnerable to hacking, and risks compromising a user’s privacy and security right from the get-go. Under this new security requirement, all passwords that come with a new device will need to be unique and not easily guessable.
The second mandatory requirement is for manufactured consumer connectable products to provide a public point of contact so that security researchers and others can easily report when they discover security vulnerabilities, flaws and bugs in their devices. Manufacturers can then quickly identify and address any shortcomings in their products. At present, nearly 80% of firms have no such system in place.
Finally, manufacturers will be required to be completely transparent about how often, and for how long, their products will receive security updates and patches. According to the current guidance that is being commonly issued, if we update our computers regularly when asked to do so and use two-step verification, 90% of cyber-attacks can be avoided. The requirement for manufacturers to be transparent about how often their product will receive security updates is intended to help consumers to know at which point they will need to do that.
Businesses will have to give customers that information at the point of sale, and keep them updated throughout. If a product will not be covered by security updates, that must be disclosed. That will enable consumers to have all the facts that they need to make an informed decision about their purchase, to understand when the product they buy could become vulnerable, and to base their decision on whether or not to buy on that information. When the security requirements have not been complied with, businesses will not be allowed to make these products available in the UK. We will be able to monitor, investigate and take enforcement action against non-compliant businesses.
We have been setting consumer standards of this kind for decades. Every product on our shelves has met all sorts of minimum requirements, whether to ensure that it is fire-resistant or to ensure that it is not a choking or suffocation hazard. It should be no different in the digital age. The Bill allows us to protect people across the UK even as the world around us changes. It allows us to keep pace with technology as it transforms our everyday lives. Combined with the measures on the telecoms infrastructure, it will do a huge amount in the coming years to benefit our constituents and society at large.
I hope that Members will show their support for the Bill, and that the benefits can be realised as quickly as possible. I commend the Bill to the House.
Mr Deputy Speaker (Mr Nigel Evans)
I do not think there could be a better birthday present than being in the Chamber today and listening to this Second Reading debate. Happy birthday, Jeff Smith!
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
I thank all hon. Members for their valuable contributions to this debate. I am pleased that the Bill commands cross-party support, which underlines the commitment of this House to make sure that every household and business in our country can access faster digital connectivity and feel assured that our tech is secure. I pay tribute to my hon. Friend the Member for Boston and Skegness (Matt Warman) for laying the foundations for this Bill and for bringing his expertise to bear in today’s debate.
This Bill comes at an opportune time when cyber-attacks are on the rise and the pandemic has underlined the increasing importance of digital connectivity to how we live, work and socialise. The quality and security of that connectivity has an impact on people’s life chances today and even more so in the future, so we have to grip these issues now. That is why we have to view fantastic telecoms infrastructure as more akin to a key utility, notwithstanding the need for different regulatory approaches.
In that way, this should not be seen as a dry debate about technology. I appreciate the valiant attempts to spice up this debate, which is about people and how we give them and their communities the fundamental tools to live good lives and prosper. These networks are vital for the UK’s future competitiveness. We cannot stay at the heart of the global economy if our connections are not world class, which is something we want not just for pockets of our nation but for every community.
We must not see a digital divide emerge between well-connected urban areas and poorly connected rural areas. I know how passionate Members are about the connectivity of their regions, and I welcome their highlighting of the challenges. I pay particular tribute to my hon. Friend the Member for North Devon (Selaine Saxby), who is tireless in her pursuit of better broadband for her county. I encourage ongoing engagement with my Department so that we get high-quality intelligence about what is really happening on the ground as our operators roll out new networks and upgrade existing. I ask my hon. Friend the Member for Eddisbury (Edward Timpson) to write to me in detail with some of his concerns about particular streets in his constituency.
As tech becomes a central driving force for our economy and our society, we have to be able to trust it without ordinary citizens needing deep expertise in cyber-security. That is why we want to make connected devices more secure by design, whether baby monitors or malevolent toasters, as highlighted by the hon. Member for Ochil and South Perthshire (John Nicolson)—perhaps not as perilous a nightmare as that offered by my hon. Friend the Member for Rushcliffe (Ruth Edwards), who discussed pictures of nude US Presidents. Cyber-attacks continue to be a serious and current threat to businesses and states, but this is also increasingly a phenomenon that is affecting all sorts of organisations, from local authorities and public bodies to individuals. The hon. Member for Ogmore (Chris Elmore) raised an important point about the service of cyber officials and the tremendous work they do, and I echo his words.
My right hon. Friend the Member for New Forest West (Sir Desmond Swayne) made a typically zesty contribution, but I am glad that he has at least accepted that we ought to be debating these issues, as yesterday he was considering not allowing that. He is very concerned about lowered rents for landlords who are hosting telecoms infrastructure. We have discussed these issues in person. As he knows, the electronic communications code was changed in 2017. I should make it clear again—I know this will disappoint hon. Members—that we are not seeking to alter that pricing structure again. In our view, the prices being paid for rights to install communications apparatus prior to 2017 were much too high, and with digital communications becoming an increasingly critical part of daily life, that really needed to be addressed.
The argument has been made that delays in digital deployment are primarily a result of changes to the code in 2017 because the amounts offered by some operators are reduced, thereby disincentivising landowners from letting land be used. We do not think this is the case. We maintain that the 2017 valuation provisions created the right balance between public need for digital communications and landowner rights.
But that is not to say that the valuation changes did not create challenges, and the Bill is designed to make a positive difference to some of the David and Goliath situations raised by my hon. Friend the Member for Stroud (Siobhan Baillie). To help ensure that fair outcomes are reached, we are introducing changes to encourage more collaborative discussion. The alternative dispute resolution provision will offer a particularly useful means of tackling situations involving either unreasonably low offers or unrealistically high payments. I am none the less happy to continue this discussion as the Bill progresses through the House.
My right hon. Friend the Member for New Forest West suggested that the Government are on the side of rapacious telecoms operators over landlords. I wish to assure him that that is not the case. We are getting good digital infrastructure to as many people as possible, as quickly as possible. I challenge the idea raised by my hon. Friend the Member for North Dorset (Simon Hoare) that the telecoms operators are making a quick buck out of the networks they build. These are long-term investments, and the Government are pushing them very hard to deliver more, including by stripping high-risk vendors from their networks and rolling out infrastructure to communities that are not within easy reach.
I dare to suggest that some of the rarer and more emotive cases about community organisations receiving reduced rents are being used by certain lobbyists, some of whom are former Labour MPs, to obscure a larger, pretty hard-nosed commercial interest from companies that have bought up large numbers of telecoms sites and are concerned about receiving a lower return on their investment. Some of the same interest groups that oppose rent changes have written to me to express their support for better connectivity in rural areas. We should therefore not pretend that better connectivity does not rely on better access to sites and more realistic pricing for network operators who wish to deploy their services. Some hon. Members have pushed for the Bill to go further, particularly in relation to renewals and operator rights. Our policy aims align with that; we just need to make sure that the legislation is working as we hope. If amendments are required in Committee, we will actively consider them.
The hon. Member for Manchester Central (Lucy Powell) mentioned the recent report by the Public Accounts Committee on gigabit roll-out.
I thank the PAC for its detailed work. It expressed concerns about the absence of legislation, but here is the legislation, which the Secretary of State and I have championed since our arrival in the Department, building on the fantastic work of my predecessor. We have also launched a series of procurements in the hardest-to-reach areas and Building Digital UK will soon be established as an executive agency to drive that work. I am glad that the impact is already being seen in areas such as Eddisbury.
On the product security part of the Bill, I welcome the expertise of my hon. Friend the Member for Rushcliffe and I encourage her to engage in the new national cyber strategy, because we would benefit from some of her points. The hon. Member for Manchester Central expressed concerns about whether we are taking future technological developments into account. There are a number of secondary provisions in the legislation. Technologies are changing all the time and it is important that the legislation can change with it.
Finally, the Bill is not a silver bullet to address all the cyber challenges that we face. It is an important tool in our arsenal. The UK has established global leadership in the area and we are the first to develop domestic legislation that creates cyber-security requirements for consumer connectable products. The Bill will allow us to protect people across the UK, even as the world changes around us, and to keep pace with technology as it transforms our everyday lives. Combined with the measures on telecoms infrastructure, it will do a huge amount in the coming years to benefit our constituents and society at large.
I am sure that we can continue to work together to bring this important piece of legislation into law as soon as possible. We care passionately about connectivity for every community in our country and I am sure that the same spirit will continue as the Bill makes it passage through the House.
Question put and agreed to.
Bill accordingly read a Second time.
PRODUCT SECURITY AND TELECOMMUNICATIONS INFRASTRUCTURE BILL (PROGRAMME)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Product Security and Telecommunications Infrastructure 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 Tuesday 29 March 2022.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings 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 Third Reading.
Other proceedings
(7) Any other proceedings on the Bill may be programmed.—(Michael Tomlinson.)
Question agreed to.
PRODUCT SECURITY AND TELECOMMUNICATIONS INFRASTRUCTURE BILL (MONEY)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Product Security and Telecommunications Infrastructure Bill, it is expedient to authorise:
(1) the payment out of money provided by Parliament of:
(a) any expenditure incurred by a Minister of the Crown under or by virtue of the Act; and
(b) any increase attributable to the Act in the sums payable under any other Act out of money so provided;
(2) the payment of sums into the Consolidated Fund.—(Michael Tomlinson.)
Question agreed to.
PRODUCT SECURITY AND TELECOMMUNICATIONS INFRASTRUCTURE BILL (CARRY-OVER)
Motion made, and Question put forthwith (Standing Order No. 80A(1)(a)),
That if, at the conclusion of this Session of Parliament, proceedings on the Product Security and Telecommunications Infrastructure Bill have not been completed, they shall be resumed in the next Session.—(Michael Tomlinson.)
Question agreed to.