Product Security and Telecommunications Infrastructure Bill

Baroness Stowell of Beeston Excerpts

2nd reading
Monday 6th June 2022 Lords Chamber

[Baroness Stowell of Beeston (Con)]

My Lords, it is a pleasure to follow the noble Earl, Lord Devon. I too congratulate my noble friend the Minister on introducing the first of his four Bills in this Session. My noble friend is going to be busy. I also thank the range of organisations which have provided briefing for this Second Reading, whether in written briefing that they have sent us by email or in the various meetings that have been scheduled.

I should start by declaring an interest as chairman of the Communications and Digital Select Committee but also acknowledge the expertise of other speakers in today’s debate. I pay particular tribute to my noble friends Lady Harding of Winscombe and Lord Vaizey of Didcot, both of whom are members of the Select Committee and whose expertise and professional knowledge I rely on a lot.

Like everyone else today, I welcome the Bill. I recognise the importance of full-fibre broadband rollout, both in its benefits to the economy and its importance to levelling up. I want to address just three main points. I support the greater clarification in the Bill so that all providers have the right to access telegraph poles to upgrade the fibre wires run on overhead poles, as so ably described by my noble friend Lady Harding. I recognise the importance of that being clarified in the Bill, because it will be of benefit to all the providers participating in making sure that we have full broadband rollout in the UK.

What I do not support, however, is extending the exclusive rights of Openreach to upgrade its existing network in blocks of flats, or multi-dwelling units. The reason I would not support an amendment brought forward to that end would be because of it embedding an unfair competition. As my noble friend Lady Harding so expertly already explained, it is the arrival of competition that has done most to accelerate the rollout in this country, so we need to keep Openreach on its toes. That would be to the benefit of flat owners and residents, of whom I am one.

The issue which troubles me most is that of resolving the dispute between site providers and mobile network operators over significant falls in rental income and land value. Other noble Lords have already described these falls, which range from 60% at best—I think that is the Government’s estimate—to, at worst, 90%. The noble Earl, Lord Devon, has just described this in some detail.

I am grateful to Speed Up Britain for its briefing and have some sympathy with its argument comparing the value of what we are discussing to that for other utilities, which is the position that the Government have taken in this legislation. However, I also know that the land-value regime for other utilities was established at a time of state ownership and monopolies and that some argue that the regime for utilities is out of date, although I am not suggesting that we revisit that.

I also understand and share the view that the most important gain—and the prize we must all keep our eye on—is faster rollout, especially for these remote communities and those who are currently not served well. However, according to the other lobby group that has already been mentioned today, Protect and Connect, many site owners remain concerned and feel a sense of injustice and unfairness in the way in which they are treated. It seems to me that site owners are being asked to make sacrifices for the benefit of their local communities, but they fear that what is in fact happening is that they are being asked to give up income for the benefit of commercial providers gaining profit. I recognise that both sides are represented by vested interests—my noble friends Lord Vaizey and Lord Hunt referred to land aggregators buying up leases from landowners to gain their own profit. That is why transparency is so important.

As I understand it, the site providers were told that a reduction in their rental income would be reinvested by the mobile network operators in the rollout. Without the economic impact assessment that the Government promised in 2017 and said would happen by June 2022—ie, this month—those site providers who have been most affected are being asked to take on trust that their loss is not another commercial provider’s gain. The noble Lord, Lord Fox, has already outlined the impact of this on bill payers, whose bills are not going down as a result of this, so there are quite a lot of people who want a better understanding of what is going on. I see that the Government rejected a request for such an economic impact assessment during the passage of the Bill in the Commons, and I should be grateful if my noble friend the Minister would explain why. Also, if that is not something that the Government are willing to carry out, what else will they do to provide the confidence that some of these site providers are looking for so that there is not any unnecessary delay to rollout, as has been described is happening because of their sense of events?

As I say, I think that everyone recognises the urgency and importance of rollout, but if this is for the greater good—I believe it is—the Government cannot afford to ignore those who feel that it is happening at unfair expense to them. As I have said on many occasions in your Lordships’ House, levelling up is not just about infrastructure that brings economic equality; it is also about fairness. It seems wrong that a Bill designed to level up is making some of those affected feel that they are losing out. I hope that my noble friend the Minister can do what is necessary to address their legitimate concerns.