Product Security and Telecommunications Infrastructure Bill

Baroness Merron Excerpts

2nd reading
Monday 6th June 2022 Lords Chamber

[Baroness Merron (Lab)]

My Lords, I am grateful to the Minister for introducing the Bill—perhaps not the most snappily named one this House will ever deal with but nevertheless extremely relevant to our daily lives—and to noble Lords who have participated in this debate, all of whom, like me, are keen to ensure that it does the job it is here to do. One thing I am sure we can agree on across all sides of the House, as the noble Lord, Lord Arbuthnot, observed, is that it has been an enjoyable, enlightening and educational debate. I hope it will contribute to improving the Bill from its current form.

This is a very important debate because, despite some steps forward, the issues around product security and telecommunications infrastructure are not entirely in the right place, so we have another opportunity before us to improve that situation. We also find ourselves dealing with the very complex nature of regulation in this field. This is perhaps highlighted by the very nature of the Bill: it runs to nearly 70 pages, yet its scope is relatively narrow. Given the pace of change in this sector, as the noble Earl, Lord Devon, observed, it is quite possible that parts of this legislation will need updating before we have even got to the end of the process of which we are in the beginning stages.

On Part 1, improving the security of so-called smart products is a sensible and long-overdue step. We have all been aware of the risks associated with these products for some time. While some are theoretical, many are extremely real. We are witnessing an increasing number of attempts to take control of smart devices to commit fraud, carry out surveillance or initiate other forms of cyberattack. The Government’s previous commitment—I believe from 2016—was to ensure that a “majority” of these products would be “secured by default” by 2021. I would be grateful if the Minister could comment on whether he believes that target has been met.

As a wider observation, until now the Government have very much been relying on voluntary codes over and above statutory duties. Given the risks to both personal and national security, this seems a light-touch approach to take with producers, importers and sellers. Surely, these things should not be left to chance.

As I alluded to previously, we have concerns that the Bill might not capture new waves of technology, some of which are already making their way into homes across the nation. Given the considerable efforts to future-proof the Online Safety Bill, can the Minister comment on whether it is possible to do the same in respect of this Bill and its provisions? As noble Lords have expressed during this debate, we will no doubt need to use Committee to better understand how the new system will operate, but it is important to say that I can confirm from these Benches that we generally support Part 1 of the Bill.

However, the Minister will not be surprised to hear that, like other noble Lords, we have rather less enthusiasm for Part 2. There are many concerns around the rollout of new broadband and 5G networks. The Government are lagging behind their target, even though that target has repeatedly been watered down, from full-fibre nationwide to gigabit-capable connections for 85% of homes. The Minister has asserted that the Bill will improve the situation but we remain unsure whether it will do so. If anything, we fear that some of these measures—particularly the tensions that they will create within the sector—will slow the process down.

The Bill does nothing to improve the rollout of infrastructure in communities where commercial viability is in doubt. This problem is by no means new, yet seemingly no answer to it has been provided in the context of the Bill we are debating today. Indeed, to give one example, the Minister in another place suggested that the best way to avoid an entrenched urban/rural digital divide is for MPs to provide lists of streets with access issues. This does not seem an all-embracing strategic approach; I think we are all aware that any good constituency MP worth their salt will have been doing that in any case for many years. However, there has been little to no improvement on the ground. If there is no money to be made, operators are not interested in providing fibre cables in remote villages or erecting mobile masts to cover not-spots.

The last time DCMS made major changes to the Electronic Communications Code, back in 2017, telecoms companies were allowed to reduce the rents paid to landowners who host phone masts and other pieces of equipment. Ministers believed that these rents, which were often only a couple of thousand pounds per year, were too high. Promises were made that reductions would not exceed 40% but the reality is that many landowners have seen rents cut by 90% or more. The result is that many community centres, sports clubs, churches, farmers and local authorities are being deprived of the sums they believed they were entitled to and had planned for. These individuals and organisations entered into the agreements in good faith, yet the law forbids them taking the masts down when payments are slashed.

The impacts of this have been felt, even in the Prime Minister’s own back yard. Hillingdon NHS Trust used to receive nearly £2 million per year from telecommunications rental fees. Following the 2017 reforms, that not only fell to £211,000 but Vodafone demanded a £300,000 repayment. Although not all the sums involved are so large, they are nevertheless significant in their impact. For example, Billericay Rugby Club was being kept afloat thanks to an annual rent of £8,500. It now receives £750 a year. It would be helpful to know from the Minister how this can be explained to local people who use facilities such as those at Billericay Rugby Club.

After all, hosting telecommunications equipment means providing 24/7 access to property, which surely deserves adequate remuneration. It is hard to believe the argument that global companies such as EE and Vodafone were unable to pay the higher charges, despite having done so for years with no issues. I would welcome the Minister’s comments on this.

As we have heard in the course of this debate, the number of legal challenges has grown exponentially, but rather than addressing the legitimate concerns of landowners, it seems that the Government’s answer is to introduce a new layer of bureaucracy. At a time when we need new infrastructure, Ministers should be incentivising the involvement of small landowners, not making enemies of them. Will the Government undertake an urgent review of this situation and commit to bringing forward sensible changes to the code in due course?

I know that the Government say that the revised valuation guidance is fair, so it would be very helpful—I hope that the Minister can do this—to see the department publish the evidence base so that we can all see it. Of course, DCMS committed to carrying out a broad review of the 2017 reforms, but as far as I am aware, that information has not been made public. Can the Minister provide an update today? If the department is so convinced of its position, what is the harm in producing the evidence, so that we can see it, in the interests of transparency?

Of course, it is not just the rents fiasco that is holding us back. There are still practical and legal issues around the provision of new or upgraded equipment for multiple-dwelling units, as my noble friend Lord Bassam referred to. The Government sought to address this several years ago by introducing new rights for tenants in leasehold properties. We welcomed that Bill, and it has no doubt helped some, but it has not proved to be a silver bullet.

It is ludicrous in this day and age that many people living in flats have worse digital connectivity than those living in houses, as the noble Lord, Lord Holmes, referred to. The type of property that we rent or buy should not determine the extent to which we can receive digital services. Noble Lords will know that this matter was subject to amendments in another place which served to highlight the level of disagreement among service providers themselves. This is no doubt an area we will explore in Committee, but in the meantime can the Minister share the Government’s current thinking on this? If operators cannot agree on a way forward, what is going to be done about it?

To conclude, I think we all want to achieve the same things. We need to have the highest possible safety standards for the broadest range of products, and we want government and industry to combine to provide the fastest, most reliable networks for the largest number of people—but we do not believe that the Bill as drafted achieves these aims. There will be areas, of course, where the Government are able to convince us otherwise, but I hope that there will be areas where the Minister will see fit to work with us to make sensible changes. We stand ready to play our part in ensuring a fair, successful and secure rollout of fibre and 5G.