Debates between Desmond Swayne and Julia Lopez during the 2019-2024 Parliament

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Debate between Desmond Swayne and Julia Lopez
Tuesday 30th January 2024

(9 months, 4 weeks ago)

Commons Chamber
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Julia Lopez Portrait Julia Lopez
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I thank my right hon. Friend for making that simple point. It is one that I am sure will be considered once this case has passed.

Desmond Swayne Portrait Sir Desmond Swayne (New Forest West) (Con)
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Were a media outlet in an authoritarian state, or indeed any other state, to be threatened with foreign ownership, would the Minister responsible be as scrupulous in her answers as my hon. Friend has so properly been with us today?

Product Security and Telecommunications Infrastructure Bill

Debate between Desmond Swayne and Julia Lopez
Julia Lopez Portrait Julia Lopez
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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.

Desmond Swayne Portrait Sir Desmond Swayne (New Forest West) (Con)
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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 Portrait Julia Lopez
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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.

Product Security and Telecommunications Infrastructure Bill

Debate between Desmond Swayne and Julia Lopez
Julia Lopez Portrait Julia Lopez
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I thank the hon. Gentleman for raising the case of his constituent. I would be grateful if he took it up with my officials, as I am keen to look into it. Throughout the passage of the Bill, individuals have raised cases with me. It is fair to say that the number of cases has declined substantially as the Bill has progressed through the House, so I am content that the position is getting much better, but if there are outstanding cases of situations that any MP feels is unfair, I will be grateful if they are brought to my attention.

To return to the case I was making for new clause 1, as with an initial agreement, if a consensual agreement cannot be reached about the additional right needed, operators will be able to ask the court to impose an additional agreement conferring the additional right. Of course, in those circumstances an operator would still have to satisfy the court that its application meets the requirements of part 4 of the code, including the public interest test.

Let me give an example of how the Government intend this to work. An operator may have an existing agreement which contains a code right to install a 3 metre high mast. Subsequently, the operator realises that it needs to install a 5-metre high mast on the same piece of land. That could enable the operator to install 5G technology or to improve or expand its network. The original agreement allowing the 3-metre mast will continue to run for its remaining term, and the operator will ask the site provider to enter into a second agreement, which contains a code right allowing it to install the 5-metre high mast.

Advances in technology occur at pace, whereas a code agreement can last for a number of years. If an operator has to wait until the term of its code agreement is about to expire before being able to obtain additional code rights, it will be unable to install the latest technology on its apparatus, meaning our constituents will be deprived of faster, more reliable services such as 5G and, in time, 6G. We think that the new clause is also vital to give UK businesses access to the technology they need, enabling our economy to thrive. I hope Members will therefore agree that it must be made.

Turning to new clause 2, we want to ensure that disputes relating to the electronic communications code can be dealt with as quickly and efficiently as possible. Currently, paragraph 95 of the code allows the Secretary of State to make regulations that confer jurisdiction on either the first-tier tribunal or upper tribunal in relation to England, but only the upper tribunal in relation to Wales. The current regulations made under paragraph 95 state that all code disputes must commence in the upper tribunal, although in England, appropriate cases may then be handed down to the first-tier tribunal. The first-tier tribunal has greater administrative resources and more judges than the upper tribunal, meaning that code disputes can be processed and heard more quickly.

Moving forward, the Government are therefore considering a greater role for the first-tier tribunal in hearing code disputes, including making further regulations using the power in paragraph 95 of the code where appropriate. The new clause provides the necessary powers so that we can do just that. In future, the Secretary of State will be able to make regulations conferring jurisdiction on both the upper tribunal and the first-tier tribunal in Wales.

The final set of Government amendments is amendments 4 to 7. They have been tabled to make a minor clarification to the text of clause 68 to avoid any unintended interpretation of the legislation. Clause 68 currently makes it clear that an operator can, at any time, give notice in writing to a person from whom they are seeking code rights, stating that the operator wishes to engage in alternative dispute resolution, often known as ADR. However, nowhere is it set out that such a notice can be sent from that person to the operator. The amendments clarify that when an operator seeks code rights from a person, either the operator or that person may give notice to the other expressing a wish to engage in ADR at any time.

Desmond Swayne Portrait Sir Desmond Swayne (New Forest West) (Con)
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I certainly welcome the movement that the Minister has made. I went to table exactly those amendments and was pleased to find that she had beaten me to it. Can I tempt her to go further with respect to my amendment and amendment 4 and require the operator, which has such disproportionate power against the landowner, to engage as a requirement in the alternative dispute procedure from the outset?

Julia Lopez Portrait Julia Lopez
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I am afraid that my right hon. Friend cannot tempt me, and I will say why shortly.

I thank the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier) for bringing forward amendments 14 to 17 to clauses 59 and 60. They would expand retrospective rights to upgrade and share apparatus in buildings owned by private landlords, such as blocks of flats, also known as multiple dwelling units or MDUs. I begin by saying that I have considered this issue carefully. I have been lobbied extremely heavily on it by one operator in particular, and I have tested the proposition with my officials, legal advisers and other operators.

I would not like to pre-empt what the hon. Lady might say as to why she tabled the amendments and their perceived need. However, I reassure her, and any others considering supporting them, that as a fellow London MP with many MDUs in my seat I am concerned about the dangers of a digital divide emerging, and I am doing what I can to avoid that circumstance. If I thought that the amendments genuinely helped on that front, I would do all I could to incorporate them, but there is a glaring lack of consensus among the telecoms industry about their need. Indeed, only one operator has contacted me in support of them, while four separate operators and representative bodies have strongly opposed the amendments, arguing that they are anti-competitive. I will talk a little more about that in a minute.

--- Later in debate ---
Julia Lopez Portrait Julia Lopez
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I am grateful to all Members who have spoken in this debate, to the Opposition for their support for the Bill, and to the hon. Member for Ogmore (Chris Elmore) in particular for the very collaborative approach he has taken throughout and his acknowledgement of the improvements we have made. I shall test officials on the further points he makes. I am also grateful to the hon. Member for Midlothian (Owen Thompson) for highlighting the product security parts of the Bill. Some of the detail he seeks will be in secondary legislation. Goods sold in online marketplaces, for instance, are not out of scope, because manufacturers, importers and distributors are covered. I would be happy to come back to him on some of the other points he raised.

On criticism of our roll-out, we are making substantial progress on our gigabit roll-out. We are now up to 68% coverage, up from 9% in 2019. I am open to any proposal to make roll-out go even faster. I have set out why competition is so important to that dynamic and why I think the amendments on MDUs are not the right way to go and could even slow the roll-out. I note the comments on BT Openreach. Other providers tell me that they have great teams negotiating wayleaves, that this is a straightforward process and that extra help on MDUs of the kind envisaged is simply not needed. I am grateful to my hon. Friend the Member for Brigg and Goole (Andrew Percy) for using KCOM as a great example of that, and for highlighting not only some of the good work that Openreach does, but the interesting example of his town deal, which I shall take away with me.

My right hon. Friend the Member for New Forest West (Sir Desmond Swayne) made a typically fruity and passionate speech. We believe our legislation incentivises greater collaboration. I set out in detail earlier why that is the case. We believe that rents were too high. As the need for digital infrastructure increases, we think rents need to become more akin to those for utilities. I should never wish to be accused of seeing property as theft. Indeed, I confess to taking umbrage at my right hon. Friend’s assertion on Second Reading. That is why I have tested his proposition—

Desmond Swayne Portrait Sir Desmond Swayne
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I withdraw.

Julia Lopez Portrait Julia Lopez
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I thank my right hon. Friend. I am glad that I have convinced him of the case. [Laughter.] As I say, I tested his proposition to death and concluded that there may be a case of creative hyperbole. I am glad he has also acknowledged that.

Question put and agreed to.

New clause 1 accordingly read a Second time, and added to the Bill.

New Clause 2

Jurisdiction of First-tier Tribunal in relation to code proceedings in Wales

In paragraph 95(1) of the electronic communications code (power to confer jurisdiction on other tribunals)—

(a) in paragraph (a), at the end insert “or the Upper Tribunal”;

(b) in paragraph (aa), for the words from “, but only” to the end substitute “or the Upper Tribunal”;

(c) omit paragraph (b).”—(Julia Lopez.)

This new clause gives the Secretary of State power to make regulations providing for a function conferred by the code on the court to be exercisable in relation to Wales by the First-tier Tribunal.

Brought up, read the First and Second time, and added to the Bill.

Clause 57

Meaning of “occupier” in relation to land occupied by an operator

Amendment made: 1, page 40, line 11, leave out Clause 57.—(Julia Lopez.)

This amendment is consequential on NC1.

Clause 58

Rights under the electronic communications code to share apparatus

Amendments made: 2, page 41, leave out lines 23 to 25 and insert—

‘(4) In paragraph 9 (conferral of code rights), after sub-paragraph (2) (as inserted by section (Persons able to confer code rights on operators in exclusive occupation)) insert—”

This amendment is consequential on NC1.

Amendment 3, page 41, line 26, leave out “But”—(Julia Lopez.)

This amendment is consequential on NC1.

Clause 59

Upgrading and sharing of apparatus: subsisting agreements

Amendment proposed: 14, page 42, line 11, after “agreement”, insert

“other than with a private landlord”.—(Chris Elmore.)

This amendment, together with amendments 15, 16 and 17, would apply a different regime under the Electronic Communications Code to private landlords, giving automatic upgrade rights for operators to properties owned by private landlords subject to the condition that the upgrading imposes no additional burden on the other party to the agreement.

Question put, That the amendment be made.