Broadband

Debate between Lord Vaizey of Didcot and David Heath

Wednesday 4th March 2015 Westminster Hall

[Mr Vaizey]

I understand the point that my hon. Friend makes. Time is pressing, but I will answer her question now. We were clear about 90% coverage. People can question whether that target was ambitious enough, but when the programme was going well enough, we found more money—the Treasury gave us an additional £250 million—to go to 95%.

I stress that that was not us moving or revising the target. We said, “Phase 1 is going well. We think we can go further. Here is £250 million and we think we can go to 95%, again by 2017.” To answer the question from the hon. Member for Hartlepool, yes, some of those contracts extend beyond 2017. I used to be a lawyer. Thankfully, I am no longer, but, if he has ever met a lawyer, he will know that if they could write into a contract a completion date in 2117, they would do so to give themselves enough wiggle room. However, the end of the contract does not signify when the project is likely to end.

Of course we want to get to 100%, and all the advice we received said that getting to that last 5% could cost £2 billion. Those were, to put it bluntly, back of a fag packet calculations—they were by sophisticated people and on sophisticated fag packets, but that is what they were—so the previous Secretary of State, my Friend the right hon. Member for Basingstoke (Maria Miller), who deserves a lot of credit for the work she did across a range of issues, found £10 million from the Treasury for some pilot schemes, which are now well under way. Some of them are delivering superfast broadband and we are auditing them at the moment.

My hon. Friend the Member for Truro and Falmouth (Sarah Newton) is quite right that satellite is quickly emerging as one of the key solutions for the last 5%. We now want to do an analysis of what that is likely to cost, go to the Treasury with an evaluation, and think how best that can be delivered. That will probably involve some of the smaller providers. That is the plan and hopefully by 2018-19 we can be close to 100% superfast broadband access.

My hon. Friend the Member for Tiverton and Honiton said that he wants the pace to be picked up. We have passed the 2 million homes mark under the programme and we are adding 40,000 homes a week—50,000 a week in some instances. However, this is an engineering project and it cannot be delivered overnight.

I want to talk about competition. We had an open competition: we put in place a state aid approved framework contract and anyone could have bid for the contracts. At the beginning, a consortium led by Fujitsu did indeed bid against BT. However, there are constraints when bidding for such contracts. To take Connecting Devon and Somerset, for example, the aim is to try to connect 360,000 homes, but there are not many players in that space, much as I would wish there to be. If a company takes money from the taxpayer—I think it was the hon. Member for Somerton and Frome who asked who owned the assets—there will be open access, so the TalkTalks of this world will provide their retail services on such networks, built partly by the taxpayer and partly by BT. That is open access. That is why, for example, a player such as Virgin Media, which some might think has the scale to compete against BT, did not want to play in this space, because it does not want to run an open-access network. I again give credit to the last Government for the structural separation of Openreach from BT. Openreach is an open platform to which others are allowed access, at prices that are regulated by Ofcom—

[Mr Heath]

Can I bring the Minister back to his “fag packet”, because one of his problems is that he has raised expectations? In Somerset, we may be a bit rough and ready; we are certainly very rural. However, we do not have big mountains, we are only under water part of the year and it was entirely predictable that the rotten old copper cables that ran three and a half miles from my house to an outhouse in Upton Noble were not going to be sufficient, so I do not understand why that was not factored in originally. Why was the contract not let on the basis of delivering fibre to those communities, rather than on the basis of some notional figure, which has failed to be met?

[Mr Vaizey]

I really fail to understand the point that the hon. Gentleman is trying to make, and I will not invite him to make it again or we could be here all night. In his constituency, 26,000 homes will get coverage under phase 1 of the programme, and nearly 2,500 more homes will get it under phase 2, so we are talking about 28,500 homes in his constituency that will get coverage.

The programme is run by the local authority. To make a blunt point, we are seeking bang for our taxpayer buck. To pluck a figure from the air, if it will cost £50,000 to connect a village of 20 people and one of 200 people, which group will be chosen? That is potentially a political decision as well. One might take a view that connecting those 20 people is better, in the sense that they are at the end of the queue, so let us bring them forward. However, that is something that we also left to local authorities, because we wanted them to partner this programme. It was not for us in the centre of Whitehall to decide between village A and village B.

Oral Answers to Questions

Debate between Lord Vaizey of Didcot and David Heath

Thursday 11th September 2014 Commons Chamber

[Mr Vaizey]

It does not surprise me at all to hear that Northamptonshire is the most enterprising county in England, because it has one of the most enterprising Members of Parliament, and my hon. Friend continues to innovate in his role. I am delighted that Kettering and Northamptonshire reflect the huge boom in businesses—part of the 400,000 extra businesses overall that we have seen created since the coalition came to power.

[Mr David Heath (Somerton and Frome) (LD)]

As far as the south-west is concerned, the growth of small businesses will be dependent on four critical infrastructure issues, all of which fall to the Government to decide within the next few months. The first is the road system, the A303; the second is the rail system and communications to the far south-west; the third is flood defences; and the fourth—the Minister will not be surprised to hear me say this—is access to high-speed broadband for all businesses right across the rural areas of the south-west. Will the hon. Gentleman give a commitment to talk to his colleagues in other Departments to make sure that the south-west gets the infrastructure it needs?

[Mr Vaizey]

I congratulate my hon. Friend on his enterprising approach in getting so many different Departments into one question. I will want to make the case, but it is ultimately the decision of my colleagues in the Department for Transport when it comes to the road structures and of those in the Department for Environment, Food and Rural Affairs when it comes to flood defences. Let me say, however, that broadband roll-out is going incredibly well in the south-west. Cornwall is one of the most well connected counties in England, while Devon and Somerset are not far behind.

Oral Answers to Questions

Debate between Lord Vaizey of Didcot and David Heath

Thursday 3rd July 2014 Commons Chamber

[Mr Vaizey]

After a question such as that, it beggars belief that the Labour party would not have such a man on its national executive committee. On this side of the House, when the hon. Gentleman speaks, we act.

[Mr David Heath (Somerton and Frome) (LD)]

I am tempted to just say to the Minister, “Somerset—get it sorted.” The good news is that two more communities in my constituency—Fivehead and Milborne Port—will be connected over the next few months, but there are a lot of villages in exactly the position described by the hon. Member for Thirsk and Malton (Miss McIntosh) that will not be connected. Does the Minister recognise how critical Somerset’s bid to the superfast extension fund is in filling in some of those gaps and getting broadband to the rural areas that desperately need it?

[Mr Vaizey]

Yes, I do. The whole point of all the completely justified questions that have been asked is that people want broadband. That is why we are putting £1.2 billion into rolling out rural broadband and why total funding of something like £70 million from BT, European funding and Broadband Delivery UK is going into connecting Devon and Somerset. More than 250,000 premises are planned to be networked and we have allocated a provisional £22 million for the next phase.