Telecommunications (Security) Bill

Baroness Northover Excerpts

Committee stage
Tuesday 13th July 2021 Grand Committee

Taking a co-ordinated approach with allies will help to protect against these threats, making it harder for the Chinese Government to single out any one country for retaliation. Earlier collective action could have prevented the later expensive U-turns. The Government’s own estimates calculate that belated Huawei decisions cost £2 billion, excluding the broader economic cost of the delayed rollout of the 5G network caused by changing policies. Belatedly and at great cost, that was the right thing to do, but let us not make the same expensive and dangerous mistakes again. The amendments seek to better protect our national interests in concert with our allies in the free world. I beg to move.

[Baroness Northover (LD) [V]]

My Lords, we move into the scrutiny of the Bill, which seeks to balance the need for the United Kingdom to be at the forefront in technological development and connectivity—requiring the fastest and most efficient broadband, for example—with the need to ensure that we do not inadvertently open ourselves to malicious actors or states as we do so. It is therefore appropriate that the first group of amendments seek to strengthen the security side, recognising the complexity of modern threats. The noble Lord, Lord Alton, has as ever laid out the case extremely clearly and in detail, and I look forward to the noble Baroness, Lady Barran, replying as comprehensively. He has long made sure that in the Lords we delve deeply into these issues as we challenge the Government and hold Ministers to account.

These are sensible amendments intended to set the Bill in the context of what our allies are doing, drawing from their knowledge and experience and, as the noble Lord said, most importantly, working together. They propose actions that should be happening anyway but which we know can be easily set aside or overlooked as Governments address many pressing issues. Amendment 1 includes a duty to review telecoms vendors

“which are prohibited in other jurisdictions on security grounds”.

It is important that we both learn from other jurisdictions and act together. We have seen how China, for example, seeks to pick off states, as in its recent threat to ban Australian beef on the basis of what it had judged to be interference in its internal affairs. We also saw the Foreign Minister of New Zealand at first indicate that her country should go its own way in relation to China, clearly worried about China’s possible actions, before stepping back from that position in recognition of the fact that we really are stronger together.

There are clear risks. We see Canadian citizens used as pawns in a wider concern about Huawei. As China becomes ever more dominant economically, and under its current leadership, resistance to its positions will become ever more difficult. We have been unable even slightly to hold it back in relation to Hong Kong, and it is therefore vital that like-minded countries work together. Therefore, there are two reasons for seeing what other like-minded countries are doing: first, to see what risks they identify and, secondly, to decide whether we should act together, as we would hope they would act when we saw risks. We are of course in a weaker position globally as we are out of the EU, which has strength in numbers and economic power.

Amendment 20 would expand the powers to include ownership or investment, and this clarifies further where risks might be; for example, through the investment clout of certain players. This is clearly vital.

Amendment 27 would require the Secretary of State to review the UK’s security arrangements with countries banned by a Five Eyes partner and decide whether to issue a designated vendor direction or take similar action with regard to the UK’s arrangements with that company. This updates previous legislation where this risk was not so apparent as it is now, with the hugely increased economic and other associated power, for example, of China. Of course, the Five Eyes of the US, Canada, Australia, New Zealand and the UK are very much aligned on this. Certainly, the risks identified by the Five Eyes should be front and centre in our thinking. I would say that we should add in the EU. Had we still been in it, we would have had that major sphere of influence to strengthen our position further. That makes these amendments even more important.

As the noble Lord, Lord Alton, laid out, we have become very dependent on China in many areas. That is true not only in the area of the Bill but in the new green industries, for example. We need to be much more strategic than we have been in this regard up to now. As he also set out, we cannot build our business on human rights abuses even up to genocide.

I am sure the Minister will say that these amendments are not needed as all these actions will be taken, but they are tabled to make sure that they are. We know that this has not happened adequately up to now; we need to strengthen the Bill, as the noble Lord, Lord Alton, has stated. I therefore look forward to the Minister’s reply.

[Lord Naseby (Con)]

My Lords, I apologise to my colleagues that I was not able to speak at Second Reading. I am quite clear, as I suspect we all are, that the security of the UK’s telecoms infrastructure is vital. Sadly, we come pretty late to the scene. The expansion of 5G and full-fibre broadband should have happened years ago, so this is not before time.

I read economics at Cambridge and looked at a number of aspects of economic expansion there, particularly in relation to business sectors. It is all very well saying that we will try to prevent the supply chain to the UK network being dependent on a limited number of suppliers. That may be a good idea in theory, but I just reflect that we have a national grid which is every bit as important as 5G; we have one or two aircraft manufacturers, and we have a couple of shipyards, so I just wonder whether there are a whole lot of suppliers out there for the telecoms world—there will be others who are better qualified than me to judge that. However, it is clear that we need to identify areas of risk, and Huawei is clearly one of them.

I would just ask a couple of simple questions. The noble Baroness, Lady Northover, mentioned Five Eyes. Is there a co-ordinating structure for Five Eyes in relation to this particular structure? If so, where is it based, what is our contribution to it and who exactly is doing it?

Some of our colleagues may have read the recent trading standards report that has just come out—I read it only last evening. A massive number of scams is happening at this point in time and we are dealing with the trouble they cause.

Amendment 20 refers to

“a specified country or … sources connected with a specified country, including by ownership or investment”.

I have worked overseas, including in a fair number of countries in south Asia such as Pakistan, India and Sri Lanka, so I ask: who on the ground will actually be doing the work? Quite frankly, I know of nobody in any of our high commissions capable of doing that sort of analysis. Do we have a floating investigatory system? How are we going to judge the evidence properly?

On Amendment 27, we need to take care, clearly, but we must recognise that there may be a valid opportunity in a company that has upset the host Government. You and I would not know the situation, but we should be aware of that fact.

I am a bit sceptical about the security check. I made a freedom of information inquiry—it was nothing to do with telecoms—and, at the end of the day, the reason given for not producing all the evidence following my FoI request was the security of the country. It was never explained in words of one syllable—or indeed in any syllables at all—what aspect of my inquiry would affect the security of the UK. I would like to know this from the Minister: are we relying on Five Eyes or are we relying on Ofcom? Who is it specifically that will be doing this analysis?