Product Security and Telecommunications Infrastructure Bill

(Limited Text - Ministerial Extracts only)

Consideration of Lords amendments
Monday 31st October 2022 Commons Chamber

[The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)]

I beg to move, That this House disagrees with Lords amendment 17.

[Mr Deputy Speaker]

With this it will be convenient to discuss Lords amendments 1 to 16.

[Julia Lopez]

I am pleased to see the progress that the Bill has made since it left this House before the summer, and I am grateful to Members in the other place for their scrutiny of it. Fast, reliable and secure digital connections are the cornerstone of a competitive economy and thriving society, and the sooner the legislation comes into force, the better. As hon. Members will recall from earlier stages of the Bill, its objective is twofold: first, to speed up the roll-out of 5G and gigabit-capable broadband; and secondly, to protect and enhance the security of consumer connectable products, such as monitors, doorbells, connected kitchen appliances and so on, so that users can get their benefits without being exposed to risk. I am confident that the Bill will do just that.

I will start by explaining the need for the relatively straightforward Government amendments tabled by my now former colleague, Lord Kamall, whom I thank and pay tribute to. I will then move on to Lords amendment 17, with which I hope the House will disagree.

Lords amendments 1 to 11 seek to implement recommendations made by the Delegated Powers and Regulatory Reform Committee. Those recommendations relate only to part 1, on product security. The amendments change the parliamentary procedure for two delegated powers from the negative resolution procedure to the affirmative resolution procedure. Those are the powers in clause 3, the power to deem compliance with security requirements, and clause 9, the power to exempt manufacturers from needing to draw up a statement of compliance. The amendments will also ensure that the Secretary of State is able to authorise another person to exercise enforcement functions only by making regulations rather than by agreement. Those regulations will also be subject to the affirmative resolution procedure. We have carefully considered the Committee’s regulations and we are happy to accept those three.

On part 2 of the Bill, on telecoms infrastructure, Lords amendments 12 to 14 would remove the clause formerly known as clause 57 and make relevant consequential amendments to the version of the Bill that this House sent to the other place. That clause was intended to address difficulties that had arisen following upper tribunal and Court of Appeal decisions on the meaning of “occupier”. However, a judgment of the Supreme Court on this very issue was made during the Bill’s journey through the other place, and the judgment resolves the policy concerns that clause 57 was designed to address. As a result, we think it is no longer necessary to retain that clause, and its removal will ensure clarity and certainty for all users of the code.

Lords amendment 15 was made by the Government following a lot of debate and work by my team of officials, and I expect hon. Members on all sides will be pleased to see it realised in the Bill. It gives operators the rights to facilitate two things. First, the amendment makes it easier for a telegraph pole to be shared that is used by an operator other than the operator that owns the pole. Secondly, it makes it easier for the equipment on a pole to be upgraded—for example, by replacing an old copper line with a fibre-optic one.

This amendment is something that many of my hon. Friends and hon. Members, and indeed the telecoms industry, were asking for. Overhead lines are used to provide a substantial proportion of network delivery across the country, and we think the amendment will therefore play a very important role in delivering better services to our constituents. We have listened carefully to stakeholders, and as well as meeting the needs of operators, I can assure hon. Members that we have included safeguards to protect the interests of private landowners and occupiers. For example, the legislation will not provide operators with an automatic right of entry on to private land. I hope that this amendment will therefore be welcomed.

The final Government amendment, Lords amendment 16, concerns an issue that has not yet been discussed in this House, so I should spend a little more time explaining its rationale. The amendment is intended to protect the autonomy and integrity of our national security, defence and law enforcement sites across the country. As it stands, the electronic communications code allows telecoms operators to seek consensual agreements with landowners to install and maintain telecoms equipment on private and public land, including sensitive national security, defence and law enforcement sites. If an agreement cannot be reached, a telecoms operator may seek a court order imposing such an agreement, potentially giving the operator access to those sensitive sites without consent. The code works in this way to make sure that operators can deliver the 5G and gigabit-capable broadband roll-out at pace.

However, this process does raise some national security concerns, including physical security, technical security and legal risks, which I shall go into a little further. On physical security, the presence of engineers and site surveyors on particularly sensitive sites, potentially without proper security clearance, could pose a national security risk. On technical security, the installation of 5G equipment on particularly sensitive Government sites could pose communications and information security risks.

Finally, on legal risks, the courts that consider proceedings under the code are not able to undertake closed material proceedings. That means that classified national security concerns cannot be evidenced properly, which might lead to courts granting access to sensitive sites without a full awareness of the risks. Lords amendment 16 seeks to address those particular national security risks without undermining our ambitious gigabit-capable broadband and 5G roll-out plans. It will confer powers on the relevant Secretary of State to intervene and prevent a court from imposing an agreement sought by an operator.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for her presentation. In relation to personal data—my constituents contact me about it all the time, and probably hers do as well—can we be assured that, through this Bill, personal data will not be available to people who do not have the right to access it?

[Julia Lopez]

I think that is probably for other legislation, but if the hon. Member would like to discuss further with me, perhaps in relation to the Data Protection and Digital Information Bill, I would be very happy to do so.

Turning back to Lords amendment 16, I have to emphasise that it is not a blanket national security exemption. It is a very specific power that will be deployed only rarely, on a case-by-case basis and only when all other routes to a mutually consensual solution have been exhausted.

Finally, turning to the last amendment in the group, I hope the House will disagree with Lords amendment 17. The amendment adds a new clause to the Bill requiring the Secretary of State to commission an independent review of the effect of the electronic communications code and of the Telecommunications Infrastructure (Leasehold Property) Act 2021.

[Sir Desmond Swayne (New Forest West) (Con)]

It is the Minister’s belief that the Bill will be a remedy for the problems in the market. She will acknowledge that, while there are only a few of us in the House who do so, there is a rather larger number out there who believe that it will make a bad situation significantly worse. The Lords amendment at least gives the opportunity of finding out who is right about this—whether it is her belief that the situation will be better or mine that it will be worse. It will put some proof into the pudding. Why must she resist it?

[Julia Lopez]

I shall set out my reasons for resisting now, but I am afraid I am not of the same opinion as my right hon. Friend on this issue. I have looked at it at length: I have looked at casework and the numbers of renewals, and I believe a review would simply cause a great deal of delay, which would further stymie roll-out.

[Selaine Saxby (North Devon) (Con)]

I thank the Minister for her intervention on this. Does she agree with me, as chair of the all-party group on broadband and digital communication, that the industry is desperately concerned that this review amendment will wreck the intentions of the Bill, and in constituencies like mine in North Devon will simply slow down the roll-out of this vital infrastructure further?

[Julia Lopez]

I agree and I thank my hon. Friend for making the point. It seems sensible and benign, but it would significantly delay roll-out and create a great deal of uncertainty.

I understand why Members in the other place tabled this amendment. Its aims are noble, but it is impractical and unnecessary and would have a disastrous effect on investment in telecoms infrastructure, leading to a slow-down in getting great connectivity to the places that most need it, particularly rural constituencies. The Government and Ofcom already produce regular reports on coverage targets and competition, and to that extent the amendment is unnecessary and would duplicate effort.

On the subject of coverage and targets, we are making great progress. We have listened at length to the concerns in both Houses and among stakeholders, and we of course understand that there are tensions between landowners and operators that must be resolved, albeit a lot of progress has been made since 2017. This Bill tries to resolve some of the challenges, particularly by introducing more collaborative negotiations and a greater use of alternative dispute resolutions.

The prospect of another full-scale review of the code framework would have the opposite effect, exacerbating existing tensions by prolonging that debate about valuation. The result would be a cooling effect on the market, with landowners and operators reluctant to conclude agreements until the review was completed. That would seriously delay the delivery of digital services, including gigabit-capable connections and 5G coverage, which so many of our constituents tell us they need and which hon. Members hold me to account for every day because those things are important to economic growth and social wellbeing in their constituencies, particularly rural ones. I urge hon. Members not to stitch further delays into the process through the uncertainty created by a review. For these reasons, although amendment 17 is well-intentioned, it is disproportionate and unhelpful, and I hope the House will disagree to it.

I am nearly at the end of my speech, but I want to thank all Members who have contributed to debates on this Bill, especially the hon. Member for Barnsley East (Stephanie Peacock) and her predecessor the hon. Member for Ogmore (Chris Elmore). Parliamentary scrutiny here and in the other place has provided the Government with much food for thought, allowing us to refine and improve the legislation, and I am pleased that Members on both sides of the House support the objectives of this much-needed Bill in recognition of the importance of digital connectivity to the people and communities we serve and the security of the products that will be increasingly present in their lives.

[Stephanie Peacock (Barnsley East) (Lab)]

Labour has always broadly welcomed the principles of this Bill and has supported amendments, whether Government or Opposition-led, that strike a sensible balance. That remains the case today, and as such I welcome the Government amendments before us. I will instead focus my remarks on amendment 17 on a review of the electronic communications code.

Labour stands firmly behind the aim of improving roll-out. Digital connectivity is a necessity, not a luxury in this day and age. In order to participate in society—from banking to shopping, to education and using public services—access to the digital world is crucial for people of all ages and in every corner of the country. As such, it is vital that we facilitate the building, maintaining and upgrading of digital infrastructure that allows for this connectivity.

The last Labour Government delivered on this belief, ensuring the creation of infrastructure that brought first-generation broadband to around 13 million households by 2009, but unfortunately over the last 12 years roll-out simply has not gone as far or as fast as we would like. Both broadband and 5G roll-out have been woefully slow, and the Government have repeatedly reduced their targets. We therefore support the aim of part 2 of this Bill, to speed up roll-out to the levels needed. The amendment that calls for a review of the electronic communication code is proposed with the firm intention of boosting rather than jeopardising roll-out. It would ensure that a balanced evidence base is built surrounding the changes made to regulation in the last five years so that concerns held by both landowners and operators can be addressed objectively and in the public interest.

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[Julia Lopez]

I thank hon. Members for their contributions and for the wide-reaching support for the Bill, as that shows recognition of its importance.

The 2017 reforms were introduced to drive roll-out and were designed to make rents more akin to those for a key utility. There were, no doubt, issues after 2017 that led to protracted negotiations and examples of poor practice by operators, some of which we heard in Committee, but I am confident that we are now reaching market equilibrium, and renewal numbers are increasing year on year.

We believe that the Bill will lead to further progress, and we are making great progress on the roll-out. Our national gigabit coverage was 6% in 2019 and it is now more than 70%; 4G coverage is at 92%; and we met our 5G target five years early. We review the situation. We have monthly stakeholder meetings that have led to a new national connectivity alliance between operators and landlords. I assure the House that I am not on the side of either operators or landlords in the negotiations; I am on the side of people with poor connectivity. That is the lens through which I view the amendments and such people are our motivation, plain and simple.

I thank the Bill team and all the officials across many Departments who have worked hard over the past couple of years to reach this stage. The Bill will help people up and down the country to access the digital services that they need, and to do so securely. If the hon. Member for Strangford (Jim Shannon) would like me to, I shall take up the issues in his constituency. Beyond that, I commend the Bill to the House.

Question put, That this House disagrees with Lords amendment 17.

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22:01

Division 85

Ayes: 268

Noes: 132

Lords amendment 17 disagreed to.