Oral Answers to Questions
Julia Lopez Excerpts(2 years, 1 month ago)
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Iain Stewart (Milton Keynes South) (Con)
The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
The UK Government have a strong record of demonstrating our commitment to minority language broadcasting, to make sure that our broadcasters serve all audiences of the UK nations and regions. My hon. Friend will recall that during his previous role at the Scotland Office we both met MG Alba’s CEO earlier this year. I am grateful to the chief executive for raising the issues of the sustainability of Gaelic language broadcasting and for providing detailed proposals for change. My officials have since been in regular contact with the organisation and I am continuing to talk to counterparts at the Scotland Office. I will have further discussions with MG Alba in due course.
Iain Stewart
I am grateful for that answer. Gaelic broadcasting is not just vital culturally and socially, but delivers a positive economic impact. Its future strength, however, requires public sector broadcast status in legislation, akin to that enjoyed by Welsh language broadcasters. I suggest to my right hon. Friend that the forthcoming Media Bill will be an ideal opportunity to provide that.
Julia Lopez
I entirely appreciate that certainty of future funding and particularly a strong partnership with the BBC are important for MG Alba to deliver for Gaelic speakers. It has legitimate concerns, and I have been examining its proposals in detail. Together with my officials, I am trying to decide whether the forthcoming Media Bill is the best mechanism to address those concerns, or whether the issues are better addressed through the future funding review of the BBC and the subsequent BBC charter review. I assure my hon. Friend that I am very engaged in these issues and want to get to a good solution.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
There was a time when Gaelic was spoken in much of my far-flung constituency; that is not the case today. I regard Gaelic as not just a Scottish but a United Kingdom treasure. I respectfully suggest to the Minister that she might benefit from coming to the Gàidhealtachd, where Gaelic is spoken in the Western Isles, perhaps in parts of my constituency, to see what needs to be done to help it.
Julia Lopez
I thank the hon. Gentleman for his kind invitation, and for highlighting the importance of Gaelic not just as a language but as a cultural asset for our country that we should be proud of. I hope that he feels assured that I have been listening to the concerns of my hon. Friend the Member for Milton Keynes South (Iain Stewart) about MG Alba and wish to ensure that it has a sustainable future.
Mr Virendra Sharma (Ealing, Southall) (Lab)
Helen Whately (Faversham and Mid Kent) (Con)
The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
We are investing £5 billion in Project Gigabit so that hard-to-reach areas can get ultra-reliable gigabit speeds. We have already upgraded over 740,000 premises. National gigabit coverage has therefore rocketed to 71%, up from just 6% in January 2019. We have already launched procurements with a value of over £700 million to deliver gigabit connections to hard-to-reach homes and businesses across the UK. We recently signed our first contracts in north Dorset and Teesdale, with more coming soon.
Helen Whately
My constituents in Throwley and Wichling were incredibly disappointed to find that their bids for gigabit vouchers were unsuccessful, especially after they worked so hard to gather community support. While most people are able to use their broadband to do video calls, work from home, and stream movies and matches, those constituents cannot. Can my hon. Friend assure me that they will be getting fast broadband soon?
Julia Lopez
I thank my hon. Friend for raising this case and for all the work that she and her team did to help those villages. I asked officials to look into this case, and they told me that the broadband supplier responsible for the projects in those villages did not put them forward for consideration as a voucher priority area, on the basis that they were not expected to deliver a gigabit-capable connection faster than our own Project Gigabit procurement in Kent. In good news, I can assure my hon. Friend that we are making very good progress on that procurement and we hope to be able to launch it in the coming weeks.
Sir John Whittingdale (Maldon) (Con)
Harriett Baldwin (West Worcestershire) (Con)
The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
I thank my hon. Friend for highlighting her particular concerns in West Worcestershire. We obviously share her desire to get great connections to everybody as quickly as possible. We are reviewing the voucher scheme and checking that it is working correctly at the moment and seeing whether it can be enhanced. I see from the figures that her West Worcestershire constituency is lower than average on gigabit connections, but we have an active procurement review under way and hope to be able to give her more details on that soon because we will be mopping up all the hard-to-reach areas of her patch.
Rachel Hopkins (Luton South) (Lab)
Mr Philip Hollobone (Kettering) (Con)
We need more full-fibre and gigabit-capable broadband in the Kettering constituency. Can we have it sooner rather than later?
Julia Lopez
I welcome my hon. Friend constantly holding my feet to the fire on Kettering’s gigabit capability. He is actually above the national average, with 88% of premises in his seat having gigabit-capable broadband, but I am glad to say that we are doing more. We will be awarding a procurement next year to try to tackle all those bits we have not yet reached.
Dave Doogan (Angus) (SNP)
Julia Lopez
My understanding is that some of the main challenges come from the Scottish Government’s R100 programme, which is making the roll-out rather challenging. His colleagues in Scotland have asked for Scotland to have more than the per premises cap, basically asking us to give more money to Scotland than we are giving to other parts of the country. I do not think that is fair, and I do not think we should be paying for the mistakes of the regime.
Andrew Bridgen (North West Leicestershire) (Con)
A year ago, I and a number of colleagues from across the House had to intervene when, due to poor governance, Derby County football club went into administration and came within a few days of going out of business before being rescued by local supporter David Clowes. Can the Minister assure the House and all football fans that the recommendations of the fan-led review will be implemented in full, so that we can get better governance in this important industry?
Deidre Brock (Edinburgh North and Leith) (SNP)
Julia Lopez
I confess that, as the Minister for the creative industries, I share some of the hon. Lady’s concerns. I will be meeting my ministerial counterpart who has the Intellectual Property Office in his portfolio to look at this matter, because I appreciate some of the issues the hon. Lady raises.
Andy Carter (Warrington South) (Con)
What steps is the Minister taking to ensure that UK radio listeners are able to find British broadcasters, including the BBC and commercial radio, in a world where access through smart speakers is controlled by global tech companies?
Correction to a Written Parliamentary Question
Julia Lopez Excerpts(2 years, 1 month ago)
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The Minister of State, Department for Digital, Culture, Media and Sport (Julia Lopez)
I would like to inform the House that I wish to correct the formal record in relation to PQ 156485, which was tabled in the 2021-22 Session of Parliament. On 25 April 2022, I issued a response to this written parliamentary question from the right hon. Member for Ashton-under-Lyne (Angela Rayner):
“To ask the Secretary of State for Digital, Culture, Media and Sport, how much her Department spent on (a) focus groups and (b) polling services in 2021”.
It was stated that the Department spent £51,455 (excluding VAT) on distinct focus groups and, more broadly, £403,688.37 (excluding VAT) on research and evaluation services which encompassed the use of focus groups and polling services to some degree in 2021.
However, this information was not comprehensive. The Department spent £110,875 (excluding VAT) on distinct focus groups commissioned to an external supplier in 2021. More broadly, the Department spent £1,259,396.63 (excluding VAT) on specific research and evaluation services, which encompassed the use of focus groups and polling services to some degree, in 2021. There could be other spending on opinion research in the Department, but this is attached to other types of services, such as wider programme spend, and it is not possible to proportion this out.
The Department uses opinion-based research as a key tool to improve our evidence base and inform policy development. It can provide insights into how businesses and households engage with our sectors and the potential barriers that they may face. It is also a useful method for understanding the impact of our policies by collecting views on what works. Notably, focus groups have been utilised as one tool to inform a trustworthy approach to AI and data governance, including for the UK’s algorithmic transparency standard, developed by the Department’s Centre for Data Ethics and Innovation alongside the Central Digital and Data Office. Focus groups and polling services have also been utilised, as part of wider research and evaluation, to support the evaluation of the Birmingham 2022 Commonwealth games and the VCSE—voluntary, community and social enterprise—support package.
This was an unfortunate error when assessing the Department’s financial data and I am confident it will not be repeated.
[HCWS322]
Network and Information Systems Regulations 2018: Second Post-Implementation Review
Julia Lopez Excerpts(2 years, 4 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
Today I am publishing the statutory post- implementation review of the Network and Information Systems Regulations 2018 on the Government’s website. This is the second review of the regulations since their implementation.
The regulations came into force in May 2018. The objective of the regulations is to improve the security of network and information systems which are critical to the provision of essential services and digital services which, if disrupted, could cause significant economic and social harm to people, businesses, and critical national infrastructure.
The Department for Digital, Culture, Media and Sport has assessed the impact, costs and benefits of the regulations, how effective the regulations have been in achieving the original objectives, and whether those objectives remain appropriate for the UK four years on.
The review is clear that the regulations have acted as an accelerator for improvements to the security of regulated organisations. Regulated organisations have shown an increase in the prioritisation of cyber security at senior level, increased investment in cyber security from boards, the introduction or improvement of cyber security policies, improved incident response management, and a greater awareness of aggregate risks.
The review concludes that the regulations are an effective tool to drive good cyber security behaviours. As such, it recommends that the Government retain the regulations to continue to incentivise organisations in scope to make security improvements.
The report also makes recommendations for changes to strengthen and future-proof the regulatory framework, so that it can adapt effectively to the rapidly evolving landscape. These changes were included in my Department’s public consultation on proposals for cyber security-related legislation in January this year. The outcomes of this consultation will be published later this year.
The next statutory post-implementation review of the regulations will be carried out in the next five years.
[HCWS173]
Shared Rural Network
Julia Lopez Excerpts(2 years, 5 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
I wish to inform the House that I have today laid a departmental minute recording the Government’s proposal to enter into an agreement to indemnify Digital Mobile Spectrum Ltd—a subsidiary of four mobile network operators—in respect of costs that may arise if there is a change in the operator of the Emergency Services Network.
The proposed indemnity will be reported as a contingent liability in line with the HM Treasury Contingent Liability Framework and managed in accordance with “Managing Public Money” (MPM).
The shared rural network is the Government’s £1 billion deal with four mobile network operators to deliver 4G coverage to 95% of UK landmass by the end of the programme. The Government are investing over £500 million to target hard-to-reach areas where there is currently no 4G mobile coverage from any mobile network operator. The Government funded element of the programme includes upgrades to extended area service mobile telephone masts being built as part of the Home Office’s emergency services network.
As set out in the minute, the proposed indemnity would cover costs of up to £15.2 million which may be required for additional equipment and operating expenses should the terms of a future emergency services network contract cause additional costs to be incurred by mobile network operators in order for them to operate their mobile network in accordance with shared rural network requirements. Any costs incurred as a result of the indemnity will be funded from within shared rural network programme approved funding.
A copy of the departmental minute will be placed in the Libraries of both Houses.
[HCWS122]
“Data: a new direction” Consultation: Government Response
Julia Lopez Excerpts(2 years, 5 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
On 17 June 2022, we published the Government response to the “Data: A new direction” consultation document, and in the Queen’s Speech on 10 May 2022 it was announced that a data reform Bill will be introduced in the third Session of this Parliament.
Data is the driving force of modern economies and, by removing barriers to responsible data sharing and use, we aim to become the world’s No. 1 data destination: an open, welcoming and secure environment where companies from all over the world can innovate and grow, and where responsible data usage improves people’s lives.
It is because we have left the EU that we have the opportunity to build an independent data protection regime that works in the UK’s interests. We have the regulatory freedom to simplify some of the cumbersome parts of the UK General Data Protection Regulation and reduce the barriers of responsible data use.
The new regime will also maintain the fundamental data protection principles established by the UK GDPR. The Government remain committed to ensuring continued, high data protection standards and public trust in data, both of which will continue to be at the heart of our new regime.
The consultation response sets out how we will create a new, flexible, independent regime under which the value of data can truly be maximised. By clarifying data protection rules regarding research, we can give scientists the confidence to use data responsibly and effectively, meaning greater data-driven innovations.
We will remove some of the most prescriptive but unnecessary rules in UK GDPR, which organisations currently must follow to demonstrate compliance. This will reduce the burdens on businesses by giving them the flexibility to protect personal data in ways that work most effectively for their organisations and their clients. By reducing burdens, we can make businesses more efficient and more productive.
We will also use our repatriated “adequacy” powers from the EU to remove inappropriate barriers to the flow of UK personal data overseas, so that we can support trade and scientific collaboration as well as national security and law enforcement cooperation.
We will also make sure that there is better enforcement of data protection and privacy breaches, and we will take firmer action against nuisance callers and make it easier to stop this predatory behaviour to begin with. We will also make sure that data can be used to empower people and improve their lives.
Our reforms will directly benefit the public—we will make it easier for public bodies to share data, making public healthcare, law enforcement and Government services more effective.
The consultation response also sets out reforms to the Information Commissioner’s Office—we will modernise its governance framework with an independent board and require it to take into account the impact of its activities on areas such as economic growth, innovation and competition. We will also make the ICO more accountable to the public and Parliament by setting out a range of key performance indicators and other reporting requirements.
The consultation response recognises that political parties and elected representatives frequently need to process personal data for the purposes of democratic engagement. We intend to create a clearer legal basis for such processing to occur. The intent is to allow MPs, councillors and political parties to undertake democratic engagement that they have done for decades—such as opinion surveys of local residents or targeted letters to constituents—but where GDPR has added unnecessary complexity and confusion. This builds on measures in the Data Protection Act 2018 which received broad cross-party support at the time.
The UK is firmly committed to maintaining high data protection standards, and we will continue to operate a high-quality regime that promotes growth and innovation and underpins the trustworthy use of data. EU adequacy decisions do not require an “adequate” country to have the same rules, and our view is that reform of UK legislation on personal data will be compatible with maintaining free flow of personal data from Europe.
The reforms we have set out will create a new and independent data protection regime that will confer many benefits on people, businesses and researchers, while maintaining high standards of personal data protection. The Government response to the consultation is available on www.gov.uk and I will also place a copy in the Libraries of both Houses.
[HCWS120]
Channel 4 Privatisation
Julia Lopez Excerpts(2 years, 5 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
I welcome the chance to close this debate on the importance of our much-loved cultural institutions, the future of UK broadcasting and the plan to sell Channel 4. I thank hon. Members for their contributions and thoughts.
The motion rightly recognises the role that our broadcasters play in bringing our nation together. There is no better example than the absolutely extraordinary coverage of Her Majesty’s platinum jubilee celebrations. I echo the Secretary of State’s tribute not only to our fantastic DCMS officials, the royal household and our broadcasters for the jubilee coverage, but to every person who participated in the exceptional showcase of British talent, from the glorious eccentricity of the pageant and the precision of the military parades to the musical power of Saturday’s concert and its innovative production, which included breathtaking light displays around Buckingham Palace, complete with drone corgi. It was a magical, delightful, magnificent kaboom of creativity.
I confess that I read the motion with a wry smile, because the hon. Member for Manchester Central (Lucy Powell) has been teasing and tantalising us with Labour’s patriotic pitch in the media for a couple of weeks now. Today, we saw it on the Floor of the House. During the glorious jubilee, the penny finally dropped for the Opposition that British people actually feel rather proud of our country. The hon. Lady has flogged to her leader the idea that the privatisation of Channel 4 is just the wedge issue that Labour needs to convince voters, after five years of campaigning for Comrade Corbyn to be Prime Minister, that it is the party of our most cherished institutions. “We are the patriots!”, she cheers from the Front Bench.
The trouble is that our plan for Channel 4 is not some ideologically driven attempt to dismantle all that is great about British broadcasting, no matter how hard the hon. Lady has tried to mischaracterise it today. It is part of an ambitious and considered strategy to ensure that British public service broadcasters not only survive in a very rapidly changing market, but grow and continue to be relevant to British and global audiences for many years to come, producing the kind of content that delights and informs viewers, underpins our cultural and democratic life and, critically, generates economic growth across our country. The structure of Channel 4, the sustainability of the licence fee and the diminishing value of linear prominence are all issues that have been knocking around for many years, but, as has been discussed at length today, market changes have injected real urgency into this debate, and we will not allow the can to be kicked down the road any further when the future of our public service broadcasters is at stake.
Kevin Brennan
I agree with the Minister on prominence, and in fact the Government should have acted sooner, as I called for them to do several years ago. She talks about kicking the can down the road, but what will happen after 10 years under her plans? Is she not kicking the can down the road for the future of this public service broadcaster by saying that in 10 years’ time anything can happen?
Julia Lopez
I can account for what the Secretary of State and I have done within our roles, and I think we have pushed forward an extremely ambitious set of reforms in the short time we have been in DCMS. This is an exciting time to be in public service broadcasting. I always thank the hon. Gentleman for his contributions because I know he has expertise in this field.
It is this Government and this Secretary of State who have decided to act, bringing forward a comprehensive package of reforms to support our PSBs through the first broadcasting White Paper in 20 years. It is the next step in a long history of support for our creative industries. It was a Conservative Government—under Margaret Thatcher, no less—that established Channel 4 in the 1980s to stimulate independent production and distinctive content. It has worked, and then some. It was a Conservative Government that encouraged Channel 4’s move to Leeds to spread the benefits of the creative sector beyond London. It worked. And it is a Conservative Government that are tackling the limitations of Channel 4’s ownership structure in this new broadcasting landscape, redirecting sale proceeds into a creative dividend to address the skills challenges of now.
Let me just touch on those limitations, because it is important to remind the House of them. Channel 4 is a fantastic broadcaster that has great management, innovative programming, high quality journalism and a diverse audience, but it is uniquely challenged in two ways. First, the publisher-broadcaster restriction means that it cannot own its intellectual property, so it finds itself reliant for 74% of its income on linear TV advertising revenues. Such revenues have fallen 31% sector-wide between 2015 and 2020, and that trend is set to accelerate as audiences move online and change their viewing habits.
Sir Peter Bottomley
Are those the most recent figures that the Department has? Many of us have been asking Channel 4 what its revenues were in the year that finished last year, and the growth in its digital advertising might also be something that the Minister would like to share with the House.
Julia Lopez
We would be very keen to get more information on Channel 4’s business at the moment, as it has been rather difficult to extract.
Secondly, should Channel 4 need to borrow money to keep up with the content investment of rivals, that borrowing would sit on the public balance sheet. In the light of those fundamentals, we are not going to apologise for asking the serious and responsible question as to whether this ownership model and structure is the right one for today’s broadcast challenges. That is something that the Secretary of State outlined today, and it has been expertly set out by my right hon. Friend the Member for Maldon (Mr Whittingdale).
I understand why hon. and right hon. Members want reassurance on this plan, and I want to provide it, but before I turn to some of the points raised this afternoon, I want to tackle some of the outlandish assertions in the article by the hon. Member for Manchester Central in The Yorkshire Post today. She claims that our selling Channel 4 could
“kill off independent film production”.
Let us set aside the fact that we believe any new owner would want to maintain Film4, for all the reasons she cites on its value. She completely underplays the strength and depth of the UK’s booming film industry, ignoring all the other players who support it, including the British Film Institute, with its own film fund, the UK Global Screen Fund, into which the Government channel £21 million to promote and distribute UK film around the world, and the fact that our film sector is doing so well that it cannot keep up with the demand for skills and studios.
The hon. Lady says that the sale of Channel 4 will lead to the move of more jobs back to London. I remind her that the BBC has committed to increasing its spend across the UK, that non-London production spend will remain in Channel 4’s remit and that ITV, Sky and Channel 5 all have large operations beyond the capital. There are so many centres of excellence outside London in our production sector that there are huge incentives to keep investing in our regions. She goes on to denigrate channels that are motivated by what she appears to see as a dirty word, profit, over public service. I wonder if she understands that those two things are not mutually exclusive. ITV and Channel 5 are all privately owned public service broadcasters. Indeed, since Channel 5’s sale to Viacom, it has gone from strength to strength, producing some fantastic, distinctly British content. As detailed in the White Paper, she will also understand that Channel 4 will remain a public service broadcaster, with quotas for independent production and the remit protected. We believe that getting private capital into the organisation will allow it to commission more, not less.
I now turn to the contributions of others. My hon. Friend the Member for Folkestone and Hythe (Damian Collins) made the excellent point that Channel 4 itself has suggested a joint venture as a way forward, which would change the relationship with the independent production sector. Implicit in that is that the status quo cannot hold because of the changing dynamic of the market—the strong headwinds he cited—with the shift to online, inflation in production costs and so on.
The hon. Member for Ochil and South Perthshire (John Nicolson), in his waspish speech, suggested that we are trying to make Channel 4 like Netflix or Amazon. That is not the case. We are saying that those businesses are changing the market, and we need to equip Channel 4 to deal with that.
The Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley), suggested that we the taxpayers, as owners, should listen only to Channel 4 on whether it wants to change. I refer him to the absolutely fascinating contributions from panellists to the Lords Communications and Digital Committee inquiry on the licence fee, and the challenge they cited about small-c conservatism in media organisations.
My hon. Friend the Member for Aberconwy (Robin Millar) touched on this in his superb speech, including on the reticence we often find in organisations about changing and trying to come to terms with some of the challenges they face. I think there is an urgency to this debate on sustainability that we are taking on. He also mentioned Channel 4’s vulnerability to shocks because of its structure.
I enjoyed the speech of the hon. Member for Cardiff West (Kevin Brennan). It was fun, but it was a wholly inaccurate artistic interpretation of the advice of officials who have provided extensive analysis of some of the market dynamics that they think provide a real challenge here. Incidentally, I sometimes find myself imagining alternative scenes in the Opposition offices, with the shadow Secretary of State saying, “Do you know that Channel 4 is the only broadcaster capable of keeping the film, TV and creative industries and the regions going, and also producing content that audiences actually like?”
The Chairman of the Select Committee, my hon. Friend the Member for Solihull (Julian Knight), recognised the importance of getting private sector capital into the business to allow it to grow. I assure him that we want Channel 4 to continue to produce news. It is part of a genuine suite of support for the creative economy. The hon. Member for Luton South (Rachel Hopkins) reduced these critical media reforms to a “petty vendetta”, and I can assure her that that is not the case. Channel 4’s sale is part of a package of media reforms that the sector has asked for.
As my right hon. Friend the Member for Maldon pointed out, it is in our interests to see Channel 4 thrive. It is because of those interests that we want to drive these reforms, and we believe that Channel 4, in thriving, can invest more in content. He talked about the cut in content spend that we have seen over the last year or so, and he also highlighted the superb Lords report. My hon. Friend the Member for Folkestone and Hythe gave an important account of the trends in play and the need for a radical reset of Channel 4’s role.
The hon. Member for Canterbury (Rosie Duffield) talked about the independent producers, and I want to reassure her that we also value the distinctive content and see that as part of the sale process. I also want to assure my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) that we have digested the consultation responses fully. We put a lot of departmental resource into doing that.
In so far as there is any ideological drive, I was interested in the challenge from my hon. Friend the Member for Mansfield (Ben Bradley)—a deeply unfashionable view in this House, it seems, too often—that private sector capital going into a business is a good thing because it can grow businesses, create jobs and drive innovation. Fundamentally, it can also provide content of the kind that audiences—too little discussed, I think, in this debate—love.
The right buyer for Channel 4 will be one that shares our ambition for the business and our belief in what makes it special. As I say, I note the concerns of the hon. Member for Canterbury about its distinctive content. I want to assure her that we are not trying to change the distinctive role Channel 4 plays; we are seeking to give it the best set of tools and the freedom to flourish and thrive long into the future. That is why the Government will move ahead with plans to move Channel 4 out of public ownership to become a free-to-air, privately-owned public service broadcaster.
The Government today have been accused of cultural vandalism, including by the hon. Member for Warrington North (Charlotte Nichols). Let me say that the greatest act of cultural vandalism would be to let our public service broadcasters wither on the vine due to the small-c conservatism of the Opposition or an attitude that there is nothing to see here for our PSBs, particularly given the jobs and the values at stake. We want our public service broadcasters to have a long-term future and, through our media Bill and our broadcasting White Paper, we have the plan to deliver just that.
Question put and agreed to.
Resolved,
That this House supports the UK’s much loved cultural institutions, which are celebrated around the world while creating jobs and growth across the country; in the Jubilee year supports world-renowned British broadcasting which brings the country together in celebration; believes that the Government should reverse its decision to sell Channel 4 as it will undermine the UK’s world leading creative industries and the delicate ecosystem of companies that support them; and calls on the Government to ensure that, if the sale does go ahead, Channel 4’s headquarters continue to be based in Leeds and its remit ensures that it continues as a public service publisher-broadcaster, commissions over 50 per cent of its content outside London, continues its significant investment in new independent British films and funds quality news content which is aired at prime time.
Oral Answers to Questions
Julia Lopez Excerpts(2 years, 6 months ago)
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Helen Morgan (North Shropshire) (LD)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
We are making excellent progress on delivering the biggest broadband upgrade in UK history, so that we have fast, reliable digital infrastructure for decades to come. In the past three years, national gigabit coverage has rocketed from 6% to 68%, we are investing £5 billion so that people in hard-to-reach areas can get ultra-reliable speeds, and we have already upgraded more than 600,000 premises. We also have £500 million-worth of contracts out for tender covering areas from Cumbria to Cornwall.
Helen Morgan
Under this Government, broadband speeds are anything but levelled up. For example, the average download speed in North Shropshire is just 49 megabits per second. In Tiverton and Honiton it is just 43 megabits per second, which is half the national average of 86 megabits per second and 60% slower than the average speed in London. The Prime Minister reportedly cracks jokes about this behind closed doors, but if the Government truly care about rural Britain, why are they leaving it in the digital slow lane?
Julia Lopez
I thank the hon. Lady for her question, but I do not share her characterisation of what is happening. I am pleased to say that there is almost 99% superfast coverage in her North Shropshire constituency, which is above the national average. Shropshire is also included in lot 25 of Project Gigabit, so those areas that are not covered by the very fast commercial roll-out of our gigabit scheme will be out for procurement—we expect it to happen in the next year—in order to build to those harder-to-reach premises.
In the meantime, if there are any premises in North Shropshire that can receive vouchers, I recommend that the hon. Lady’s constituents apply for them. I am also pleased to say that Shropshire Council is supporting a local top-up fund to supplement our voucher subsidy and has invested £2 million to date. As I say, I do not agree with her characterisation of the progress we are making.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
I know that my hon. Friend shares my and my constituents’ frustration at the failure of the Scottish Government and their ironically named Reaching 100% scheme to deliver for people in Scotland. [Interruption.] It is six years late and millions of pounds over budget, notwithstanding the protestations of the hon. Member for Paisley and Renfrewshire North (Gavin Newlands). What is the Department doing to help level up broadband connectivity for my constituents in rural Scotland?
Julia Lopez
The situation in Scotland is, admittedly, tricky. I have talked to my counterpart in the Scottish Government, and the Scottish Government’s strategy prioritises some of the islands and seeks to have greater spend in some of those hard-to-reach areas than we have in parts of England. I cannot ask people in other parts of the country to suffer for decisions made by the Scottish Government on the areas they are prioritising. I am keen to continue working with the Scottish Government on trying to get connectivity to Scotland, because I share my hon. Friend’s passion for that, but we are also looking at what we can do for the very hardest-to-reach premises, a number of which are in Scotland.
Chris Elmore (Ogmore) (Lab)
It is a pleasure to see you in the Chair this morning, Madam Deputy Speaker.
A staggering 1.1 million people struggle to afford the most basic broadband and mobile services, and the pandemic has only reinforced the fact that broadband is now truly the fourth utility. Our day-to-day lives cannot function without it. Inflation is now running at 9%, and broadband packages have risen by 12%. With the roll-out stagnating, prices rising and household incomes being squeezed, why did the Government and Ofcom allow Openreach and other providers to raise network prices above inflation, hitting consumers and raking in profits, without real investment in full fibre?
Julia Lopez
I completely agree with the hon. Gentleman that such services are now key utilities. As he will know, we debated the Product Security and Telecommunications Infrastructure Bill yesterday, in which we are seeking to bring down rents to reduce prices for operators and, therefore, for consumers.
The hon. Gentleman will also be aware of the great work we did on social tariffs with providers throughout the pandemic. The Secretary of State recently wrote to providers to understand what more the Government can do to promote those social tariffs. We have also been working with the Department for Work and Pensions to roll out social tariffs to even more people, particularly those on universal credit.
Greg Smith (Buckingham) (Con)
It is pleasing, week on week, to see more and more villages in my constituency getting fibre-to-the-premises broadband, but many small operators tell me that the “Equinox” Openreach discount on the wholesale price is having a distorting effect on the speed of roll-out from those smaller operators, particularly to rural communities. Has my hon. Friend modelled the impact that that discount is having on the market? What can her Department do to fix it?
Julia Lopez
I thank my hon. Friend for raising that important regulatory issue, which is actually led by Ofcom. It has been raised with me by altnets, and it is of concern. The Government want as much competition in the market as possible, as we think that is speeding up roll-out. The commercial sector is going great guns on this. I appreciate his concerns, and this week I met Councillor Martin Tett in the Buckingham constituency to talk about what more we can do to speed up the roll-out to my hon. Friend’s constituents.
Mr Steve Baker (Wycombe) (Con)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
My Department is playing an active role in delivering the national cyber strategy 2022, backed by £2.6 billion of public money. That includes a focus on enhancing the nation’s cyber-skills. The UK Cyber Security Council was launched by the Department last year and received its royal charter in early 2022. It will play a key role in building world-leading skills architecture for the cyber profession. We are also ensuring that tech is designed in a secure way, and our new Telecommunications (Security) Act 2021 is helping to protect the most vulnerable parts of UK networks and services.
Mr Baker
Given that fraud is one of the main purposes of cyber-attack, will the Government take the advice of the Royal United Services Institute to make cyber-security and tackling fraud a national security priority, so that the full apparatus of our security establishment can be brought to bear against overseas fraudsters?
Julia Lopez
My hon. Friend raises an important issue. Tackling fraud needs a co-ordinated response from Government, so although policy on fraud is led by the Home Office, I assure him that the Government as a whole are taking significant action. I mentioned our national cyber strategy. We have also secured funding so that the UK intelligence community can set up a dedicated anti-fraud mission, and later this year we will publish a new strategy to address the threat. The Department recently introduced the Online Safety Bill, which will tackle some forms of online fraud and fraudulent advertising, and that will be built on by a wider online advertising programme.
Andrew Gwynne (Denton and Reddish) (Lab)
Cyber-threats come in lots of guises, ranging from spreading misinformation to undermining democracy, stealing data and intelligence, and fraud, as we have just heard from the hon. Member for Wycombe (Mr Baker). Perhaps the most serious threat is the downing of critical infrastructure. What assessment has the Minister made of both the threats on downing critical infrastructure in the UK and how we overcome and challenge the people who seek to do it?
Julia Lopez
I thank the hon. Gentleman for taking this issue so seriously. We, as a House, need to give great consideration to it. We have a number of new powers in place, including the National Security and Investment Act 2021, which gives us greater powers to look into some of the investments being made in this area. On critical national infrastructure, he will understand that I cannot go into great detail, but I simply wish to assure him that I spend a great deal of time on that issue. The more that consumers and businesses depend on our critical national infrastructure, the greater attention the House needs to pay to it, and I assure him that I am doing a lot of working in that space.
Catherine West (Hornsey and Wood Green) (Lab)
Peter Grant (Glenrothes) (SNP)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
The Government consulted extensively on the future of Channel 4, and the views from a broad range of industry stakeholders informed our policymaking and final decision. As a Scottish MP, the hon. Member may be particularly interested to know that I met STV and MG Alba about the broadcasting White Paper, which included the proposal to privatise Channel 4. My officials also recently met representatives from the Scotland Office and the Scottish Government. We are at a unique turning point in public service broadcasting. We think we have the chance to make Channel 4 bigger and better, while preserving what makes it so special.
Peter Grant
When the Secretary of State was asked by the Digital, Culture, Media and Sport Committee why she wanted to privatise Channel 4, she said that it was because it was costing the taxpayer too much in subsidies. I think she was the only person in the room who was labouring under that particular delusion. Given that that excuse has gone, is it not time to come clean and say that the Secretary of State’s mission against Channel 4 is to do not with making it a better broadcaster, but with trying to shut down a broadcaster that has a nasty habit of broadcasting the truth, in particular truths that the Secretary of State might prefer not to be made known?
Julia Lopez
I thank the hon. Gentleman for his question, but I know the Secretary of State’s reasoning for this decision better than he does. He also mis-characterises what was said at the Select Committee. He will be aware that Channel 4 is uniquely dependent on linear advertising, that it cannot own its own content, and that its borrowing sits on the public balance sheet. We think we have an opportunity to free it from some of those constraints to allow it to invest more in content to get private sector capital into the business, and we think that that will help to grow Channel 4, so that it can invest more in the businesses that he purports to care about.
Sir Peter Bottomley (Worthing West) (Con)
The Secretary of State said that she wanted to remove the straitjacket from Channel 4. Except for the opportunity to borrow, which I did not know Channel 4 had asked for, the only straitjacket is the public service remits. Will those be reduced in any way?
Can the Minister kindly tell the House why the aim to compete with Amazon and Netflix should be one of the purposes of Channel 4, especially if either Netflix or Amazon, or a similar-sized foreign-owned organisation, might buy Channel 4?
Julia Lopez
This is not necessarily about allowing Channel 4 to compete in exactly the same way as Netflix and Amazon; it is about understanding the changing market dynamics that those companies are creating. As I said in my previous answer, Channel 4 is uniquely constrained. Its borrowing would sit on the public balance sheet, but it also cannot own its content. We believe that in today’s market, it needs to be able to own its content in order to have much greater flexibility in how it runs its business, and getting private capital into the business would help it to do that. While people can bury their heads in the sand about the fundamental dynamics in the market, we are taking some difficult decisions, which we think are the right decisions to secure not only the future of the business, but the future of the kind of content that audiences in this country love.
Madam Deputy Speaker (Dame Eleanor Laing)
I call the shadow Secretary of State, Lucy Powell.
Lucy Powell (Manchester Central) (Lab/Co-op)
Yet again, the Secretary of State fails to come to the Dispatch Box herself to defend one of her own flagship policies, despite publishing a media White Paper and the Government consultation and tweeting over recess that she was selling Channel 4 off without coming to this place. Perhaps the Minister can clear up some of the confusions about the level of support for the Government’s plans. Despite the impression the Secretary of State gave at her recent Select Committee hearing, is it not the case that according to the Government’s own report, even when the 38 Degrees responses are removed, only 5% of respondents agreed that Channel 4 should be privatised? What is more, the majority of stakeholders are also against the sell-off. So can the Minister tell us who, apart from a small coterie around the Prime Minister, actually supports their plans?
Julia Lopez
I think the hon. Lady has been living in a different world. Only last week or the week before, the Secretary of State was grilled for three hours in Select Committee and took endless questions on Channel 4’s future, and—[Interruption.] I have to answer the questions that are put to me. We do not have advance sight of which ones the hon. Lady will come on to. I will simply say that the fundamental facts of the market dynamics that I have set out remain. In the consultation that she cites, a huge number of responses were to the 38 Degrees redrawing of the questions we set. We have the responsibility as a Government to look at the long-term trends in this business and to make a decision about what is best for the business, for the taxpayer and for UK audiences and creative industries. That is the sole thing driving the decisions we make in this space.
Lucy Powell
Sorry, but I thought it was Ministers who decided which questions they responded to, not the other way around. It was their decision to do it this way. [Interruption.] The question about Channel 4 is on the Order Paper.
Is it not the truth that the Secretary of State made up her mind long, long ago, based not on the evidence or the responses, but on her own ideology and a petty vendetta against Channel 4’s news coverage? The evidence is compelling: privatisation is bad for levelling up, bad for the skills pipeline, bad for the independent production sector and bad for our world-beating creative industries. Just like the forthcoming BBC licence review, is not this process just a sham? She does not listen to evidence, the industry, the public or many of her own Back-Benchers. Why does she not drop the ideology, support British jobs and British broadcasting, and stop the sell-off?
Julia Lopez
I would simply say that that is not the truth. This is not a decision driven by ideology; it is about what is best for our creative sector, what is best for audiences and what is best for the taxpayer. I am sure the hon. Lady will have plenty of opportunities to have ding-dongs with the Secretary of State on those issues in the forthcoming media Bill debate.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
Greg Smith (Buckingham) (Con)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
We are in regular contact with Ofcom and the radio industry on these issues, and I would be happy to meet my hon. Friend to discuss the matter further, so that I understand the interest driving his question.
Christine Jardine (Edinburgh West) (LD)
Stoke-on-Trent: Video Games Enterprise Zone
Julia Lopez Excerpts(2 years, 6 months ago)
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The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
Thank you for your chairing this debate, Dame Angela. I am grateful to my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) for highlighting the important role that the video games industry plays in supporting very high-skilled jobs and levelling up across the UK. I appreciate the characteristic forcefulness with which he makes the case for his exciting vision of Silicon Stoke.
As my hon. Friend says, something is stirring in Stoke. It is a fantastic city with a very bright future and, through our investments in gigabit broadband—another area that I lead on—it is one of the best connected places in the UK. It is represented by three MPs who have great belief in and passion for the place they represent, and it has great local leadership from Councillor Abi Brown and one of our nation’s youngest Lord Mayors, Councillor Hussain.
I am glad to see Stoke’s three MPs in the Chamber—they are giving Teesside a run for its money as a powerful parliamentary lobby. They are united in their efforts to keep building on the city’s success story and proud history in the creative industries. I pay tribute to my hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon) for her close working with Stoke-on-Trent College, Staffordshire University and creative businesses such as Carse & Waterman. I also pay tribute to my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), who was banging and clattering his pottery drum for the city in the dark days of the previous Parliament, long before these two 2019 upstarts came along.
I want to set out how we are supporting the video games sector to build on very strong growth, and how we think video games can contribute to our mission of levelling up the country. I will also talk about the importance of skills in achieving those goals. It is great to hear about the really strong partnership working between local MPs, councillors and educators in Stoke.
Jack Brereton
Can my hon. Friend the Minister think of a possible reason why the video games industry would not locate to Stoke-on-Trent? I cannot think of a single one.
Julia Lopez
I agree. With great digital connectivity and the partnership working between central and local government, there is a great story to tell about Stoke. It is certainly something that I will take back to my Department after the debate, as we look at the initiatives we are focusing on in the creative industries.
The video games sector, as my hon. Friend the Member for Stoke-on-Trent North rightly pointed out, is flourishing. It contributed about £2.8 billion to the UK economy in 2019, and that is reflected in the number of people employed in the sector, which has grown from 13,000 in 2011 to 27,000 in 2019.
The Department for Digital, Culture, Media and Sport is incredibly proud to support the growth of our creative businesses, and we are doing a lot of work to ensure that the games sector, in particular, can thrive. We are putting together a £50 million creative industries programme—a sector vision—as part of our spending review settlement, and I will take away some of the really exciting ideas that have been put forward. That includes up to £18 million invested in the Create Growth programme, which will help high-growth, creative businesses access finance across six regions in England outside London so that they can reach their growth potential. We will be announcing the regions for the Create Growth programme this summer. That builds on the success of our £400 million Creative Scale Up pilot programme, which to date has supported more than 200 businesses across three regions, increasing a total aggregate turnover of £13.5 million.
We have also announced specific support for the video games sector through a £800 million expansion of the UK Games Fund, which will accelerate the growth of the UK games industry. Since 2015, the fund has supported more than 190 early-stage video game development projects, and supported businesses that have the potential to grow and flourish. That builds a strong vibrant SME developer community. I am interested to hear some of the ideas that have been put forward, and I very much encourage small businesses in Stoke to apply for that programme.
My hon. Friend asked what more we can do to support local businesses through tax incentives. Obviously, a lot of this is outside my remit, but we recognise that the future growth of the games sector requires us to maintain our competitive edge in tax reliefs. We must ensure we that continue to be an attractive place to do business, given the global competition. Our games tax relief has strengthened the UK’s reputation as one of the leading destinations across the world to make video games, and it has really worked. Since it was introduced in 2014, it has supported 1,640 games, with UK expenditure of £4.4 billion. In 2020-21, the relief supported the development of 640 games. We have to ensure that we continue to be internationally competitive. We keep all these tax incentives under close review, and I will continue those discussions with the Treasury in advance of any economic statement.
In the 1970s, “Dungeons & Dragons” coined the term “levelling up” for when the player reached certain milestones. Since then, the notion has become a central feature of many popular video games. We take that forward as a mission in our levelling-up agenda. We think the creative industries play a critical role in supporting regions across the UK, and game development has been key, from Sheffield to Leamington Spa, from Newcastle to Bristol, and from Knutsford to Dundee. Some 55% of game development roles are outside London and the south-east, so it truly is a UK-wide industry. Video game clusters are engines for local economic growth and jobs throughout the country. The £39 million Creative Industries Clusters programme, run by the Arts and Humanities Research Council, has supported Dundee’s video games cluster through InGAME. I am keen to look at the lessons we can learn from that to see whether any of them can be applied to Stoke. The funding has created 337 new companies since 2020, and created or safeguarded 477 jobs.
We are committed to continuing that kind of cluster work and I want to see that success replicated in Stoke. It is great to see the investment in the Ceramic Valley enterprise zone and the announcement last week about the £56 million levelling-up funding that will be going to development opportunities in Etruscan Square and the transformation of Stoke’s Spode site.
We are also working extremely hard on digital connectivity. We invested more than £8.5 million through the local full-fibre network project, which has helped to incentivise commercial investment in the region, including the VX Fiber plan, which will be targeting more than 30,000 properties for a gigabit-capable connection. For those not in line for the commercially or publicly funded roll-out, we will be investing more in Project Gigabit. The procurement for Staffordshire, which includes Stoke, is anticipated to cover another 70,800 premises and will be taking place later this year.
Alongside robust growth and relentless innovation, we need to make sure that the skills are in place to help the video games industry reach its full potential. That is why we are working very closely with some of the bodies that my hon. Friend the Member for Stoke-on-Trent North mentioned. Our creative careers programme has given 27,000 young people hands-on experience with industry, through immersive events and work experience opportunities. The next phase of that programme, with a three-year grant competition launched this month, will launch fully later this year and do even more to support people, particularly those from lower socioeconomic backgrounds.
Specialist skills are needed to support video games, from development and production to art and sound design. In Stoke, there are a range of further and higher education study opportunities in place for routes into the video games industry, from diplomas in games design and programming at Stoke-on-Trent College, to games courses at Staffordshire University and Keele University. I know that Staffordshire University, in particular, provides an excellent pathway to a career in gaming. The university won the 2021 excellence in university and industry collaboration award from the UK video games industry trade association, TIGA—you say tigger, I say tiger; I am not entirely sure which one is correct, but we should probably call the whole thing off. The award is supported by a partnership with UK Games Fund’s Tranzfuser programme, which supports graduates to take an idea for a game to a playable reality.
Staffordshire University was the first university in the UK to offer a degree in e-sports in 2018, and now offers postgraduate courses too. That shows that Stoke-on-Trent remains committed to becoming a hub for gaming. I am really interested to hear more about the e-gaming stadium and hope to learn more as the proposal is developed.
I am pleased to see that funding from the Build Back Better scheme has been secured to create a virtual reality hub for Stoke-on-Trent College. We continue to invest in important opportunities for young people across the United Kingdom to get the resources and knowledge they need to progress exciting careers in the creative industries. I look forward to working with my hon. Friends to support regional hubs, not only to keep local talent, but to attract new talent from across the country.
As we have already said this morning, Stoke is a great place to do business, with low office rents, great digital connectivity and inspired leadership. With a vision like Silicon Stoke, there is a really exciting future that we can build here. I will take away some of the comments on tax reliefs. We will continue to work in partnership with local colleges and I want to look at the potential for a creative cluster. With the levelling-up funding in place as well, all kinds of things are going on here. I say to businesses across the UK, “Go to Stoke; it has got inspired parliamentarians who are working very closely with us in Government and with a diligent and energetic local leadership.”
Jonathan Gullis
We would love to welcome the Minister to meet the Silicon Stoke board members, and to have a joint MPs’ roundtable with leading actors in the sector—some are in Stoke and some are not—so we can help get the message out about why Stoke is a great place to be.
Julia Lopez
I thank my hon. Friend for his generous invitation, which I am sure I will be able to take up shortly. I commend him and my hon. Friends the Members for Stoke-on-Trent South and for Stoke-on-Trent Central for their passionate vision for the great city that they represent. I thank them for the debate today.
Question put and agreed to.
Product Security and Telecommunications Infrastructure Bill
Julia Lopez ExcerptsWednesday 25th May 2022
(2 years, 6 months ago)
Commons ChamberRead Full debate Product Security and Telecommunications Infrastructure Act 2022 View all Product Security and Telecommunications Infrastructure Act 2022 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 25 May 2022 - (25 May 2022)
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
I beg to move, That the clause be read a Second time.
Madam Deputy Speaker (Dame Rosie Winterton)
With this it will be convenient to discuss the following:
Government new clause 2—Jurisdiction of First-tier Tribunal in relation to code proceedings in Wales.
Government amendments 1 to 3.
Amendment 14, in clause 59, page 42, line 11, after “agreement”, insert
“other than with a private landlord”.
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.
Amendment 15, page 43, line 39, at end insert—
“(5B) Paragraph 17 of the new code (power for operator to upgrade or share apparatus) applies in relation to an operator who is a party to a subsisting agreement with a private landlord, but as if for sub-paragraphs (1) to (6) there were substituted—
‘(1) This paragraph applies where—
(a) an operator (“the main operator”) keeps electronic communications apparatus installed on, under or over land, and
(b) the main operator is a party to a subsisting agreement in relation to the electronic communications apparatus.
(2) If the conditions in sub-paragraphs (3), (4) and (6) are met, the main operator may—
(a) upgrade the electronic communications apparatus, or
(b) share the use of the electronic communications apparatus with another operator.
(3) The first condition is that any changes as a result of the upgrading or sharing to the electronic communications apparatus to which the agreement relates have no adverse impact, or no more than a minimal adverse impact, on its appearance.
(4) The second condition is that the upgrading or sharing imposes no additional burden on the other party to the agreement.
(5) For the purposes of sub-paragraph (4) a burden includes anything that—
(a) has an adverse effect on the person’s enjoyment of the land, or
(b) causes loss, damage or expense to the person.
(6) The third condition is that, before the beginning of the period of 21 days ending with the day on which the main operator begins to upgrade the electronic communications apparatus or (as the case may be) share its use, the main operator attaches a notice, in a secure and durable manner, to a conspicuous object on the relevant land.
(7) A notice attached for the purposes of sub-paragraph (6) must—
(a) be attached in a position where it is reasonably legible,
(b) state that the main operator intends to upgrade the electronic communications apparatus or (as the case may be) share its use with another operator,
(c) state the date on which the main operator intends to begin to upgrade the electronic communications apparatus or (as the case may be) share its use with another operator,
(d) state, in a case where the main operator intends to share the use of the electronic communications apparatus with another operator, the name of the other operator, and
(e) give the name of the main operator and an address in the United Kingdom at which the main operator may be contacted about the upgrading or sharing.
(8) Any person giving a notice at that address in respect of that electronic communications apparatus is to be treated as having been given that address for the purposes of paragraph 91(2).
(9) Any agreement under Part 2 of this code is void to the extent that—
(a) it prevents or limits the upgrading or sharing, in a case where the conditions mentioned in sub-paragraphs (3), (4) and (6) are met, of any electronic communications apparatus to which the agreement relates that is installed on, over or under land, or
(b) it makes upgrading or sharing of such electronic communications apparatus subject to conditions to be met by the operator (including a condition requiring the payment of money).
(10) Nothing in this paragraph is to be read as conferring a right on the main operator to enter the land which the main operator would not otherwise have, when upgrading or sharing the use of the electronic communications apparatus.
(11) References in this paragraph to sharing electronic communications apparatus include carrying out works to the electronic communications apparatus to enable such sharing to take place.
(12) In this paragraph—
“the relevant land” means—
(a) in a case where the main operator has a right to enter the land, that land;
(b) in any other case, the land on which works will be carried out to enable the upgrading or sharing to take place or, where there is more than one set of works, the land on which each set of works will be carried out;
“subsisting agreement” has the meaning given by paragraph 1(4) of Schedule 2 to the Digital Economy Act 2017.’”
This amendment, together with Amendments 14, 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.
Amendment 16, in clause 60, page 44, line 4, after “land”, insert
“not owned by a private landlord”.
This amendment, together with Amendments 14, 15 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.
Amendment 17, page 45, line 14, at end insert—
“17B (1) This paragraph applies where—
(a) an operator (‘the main operator’) keeps electronic communications apparatus installed on, under or over land owned by a private landlord,
(b) the main operator is not a party to an agreement under Part 2 of this code in relation to the electronic communications apparatus, and
(c) the electronic communications apparatus was installed before 29 December 2003.
(2) If the conditions in sub-paragraphs (3), (4) and (6) are met, the main operator may—
(a) upgrade the electronic communications apparatus, or
(b) share the use of the electronic communications apparatus with another operator.
(3) The first condition is that any changes as a result of the upgrading or sharing to the electronic communications apparatus to which any existing agreement between the operator and the landlord relates have no adverse impact, or no more than a minimal adverse impact, on its appearance.
(4) The second condition is that the upgrading or sharing imposes no additional burden on the landlord.
(5) For the purposes of sub-paragraph (4) a burden includes anything that—
(a) has an adverse effect on the person’s enjoyment of the land, or
(b) causes loss, damage or expense to the person.
(6) The third condition is that, before the beginning of the period of 21 days ending with the day on which the main operator begins to upgrade the electronic communications apparatus or (as the case may be) share its use, the main operator attaches a notice, in a secure and durable manner, to a conspicuous object on the relevant land.
(7) A notice attached for the purposes of sub-paragraph (6) must—
(a) be attached in a position where it is reasonably legible,
(b) state that the main operator intends to upgrade the electronic communications apparatus or (as the case may be) share its use with another operator,
(c) state the date on which the main operator intends to begin to upgrade the electronic communications apparatus or (as the case may be) share its use with another operator,
(d) state, in a case where the main operator intends to share the use of the electronic communications apparatus with another operator, the name of the other operator, and
(e) give the name of the main operator and an address in the United Kingdom at which the main operator may be contacted about the upgrading or sharing.
(8) Any person giving a notice at that address in respect of that electronic communications apparatus is to be treated as having been given that address for the purposes of paragraph 91(2).
(9) Nothing in this paragraph is to be read as conferring a right on the main operator to enter the land which the main operator would not otherwise have, when upgrading or sharing the use of the electronic communications apparatus.
(10) References in this paragraph to sharing electronic communications apparatus include carrying out works to the electronic communications apparatus to enable such sharing to take place.
(11) In this paragraph ‘the relevant land’ means—
(a) in a case where the main operator has a right to enter the land, that land;
(b) in any other case, the land on which works will be carried out to enable the upgrading or sharing to take place or, where there is more than one set of works, the land on which each set of works will be carried out.”
This amendment, together with Amendments 14, 15 and 16, 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.
Amendment 12, page 45, line 18, leave out clause 61.
This amendment removes clause 61 of the Bill, which gives operators the ability to calculate rent based on ‘land value’ rather than ‘market value’ when renewing tenancies to host digital infrastructure on private land.
Amendment 13, page 46, line 42, leave out clause 62.
This amendment removes clause 62 of the Bill, which gives operators the ability to calculate rent based on ‘land value’ rather than ‘market value’ when renewing tenancies to host digital infrastructure on private land in Northern Ireland.
Amendment 9, in clause 68, page 58, line 38, leave out from “must” to “one” in line 39 and insert “use”.
This amendment, along with Amendments 10 and 11, seeks to ensure that operators engage in the alternative dispute resolution process by making it mandatory.
Government amendments 4 to 7.
Amendment 10, in clause 68, page 59, line 12, leave out from “must” to “one” in line 13 and insert “use”.
This amendment, along with Amendments 9 and 11, seeks to ensure that operators engage in the alternative dispute resolution process by making it mandatory.
Amendment 11, page 59, line 34, leave out from “must” to “one” in line 35 and insert “use”.
This amendment, along with Amendments 9 and 10, seeks to ensure that operators engage in the alternative dispute resolution process by making it mandatory.
Government amendment 8.
Julia Lopez
It is a pleasure to be making such good progress on this Bill, which seeks to deliver world-class connectivity to our constituents and to improve the security of the devices that we all rely on. I will start by explaining the need for the Government amendments tabled in the name of the Secretary of State, as those amendments are relatively straightforward. I will then move on to the more substantial matter of the remaining amendments, which I suspect right hon. and hon. Members are keener to discuss.
Beginning with new clause 1, as I explained on Second Reading, some operators with apparatus on land are currently unable to follow an existing statutory process to renew their agreement once it comes to an end. These operators also cannot use the code to get an entirely new agreement, because only the occupier of land can grant code rights. An operator already occupying land clearly cannot enter into an agreement with itself. Clause 57 was intended to ensure that operators could obtain code rights from another party in these circumstances, but subsequent engagement with stakeholders has made it clear that the clause as drafted would not cover all scenarios and that a more focused approach is required. Some operators would still find themselves effectively stuck once their agreements ended, with no means of renewing their agreement and no reasonable or practical means of obtaining a new code agreement. This can have negative consequences for consumers, and as such it is unacceptable. New clause 1 therefore replaces clause 57.
The new clause will ensure that all operators in exclusive occupation of land who do not have a statutory renewal option can still seek a code agreement. The person who can grant those code rights will usually be the owner of the land, although the new drafting makes provision for less straightforward situations. As well as resolving the problem of “stuck” operators, new clause 1 also assists operators with an existing, ongoing agreement. Where such operators need additional code rights that are not already provided by their current agreement, the new clause ensures they can seek such rights. Currently, some such operators are unable to do so because they are in occupation of the land.
John Redwood (Wokingham) (Con)
Will my hon. Friend confirm that operators still need to get the agreement of the landowner or someone else who is empowered to grant that right, so that there is no muddle or confusion?
Julia Lopez
Yes. They will be allowed to take out a new agreements, but they still have to be under the existing regime.
To be clear, this will not let an operator unilaterally change, or ask the court to impose a change to, the terms or duration of their current agreement. It allows an additional code right to be conferred on the operator via a new, separate code agreement.
Dave Doogan (Angus) (SNP)
I think we all accept the need to be able to protect continuity of service, but my constituent, Mr Ramsay, is on the receiving end of some very strong tactics by Telefonica, which is looking to reduce the value of his lease agreement by about 90%, by £5,000 from about £7,000. What does the Minister suggest my constituent do under the weight of that corporate might? It is a David and Goliath situation.
Julia Lopez
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.
Sir Desmond Swayne (New Forest West) (Con)
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
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.
Andrew Percy (Brigg and Goole) (Con)
I welcome the Minister’s rejection of those amendments. In my area, we have KCOM, which is a strong local performer. Had it not been for KCOM, most of my constituents, who are on the dual network, where it can be KCOM or Openreach, would not be anywhere near to getting gigabit broadband. We therefore do not want to see any changes that will give BT Openreach an advantage or preference over other providers, such as KCOM, which have got their acts together and got gigabit broadband delivered to our homes.
Julia Lopez
I thank my hon. Friend for raising the great work of KCOM and the importance of competition and how it is driving roll-out. It is changing the dynamic in the market, very much for the better. I am mindful of how we drive extra competitiveness in this field, because that is what is getting us the roll-out and the digital connectivity that our constituents need and demand.
Amendments 14 to 17 are, I think, identical to the proposals tabled in Committee. As I explained then, upgrading and sharing electronic communications apparatus offers substantial benefits. We specifically recognised that in our 2017 reforms and in the new upgrading and sharing rights that clauses 59 and 60 will create. However, as I also explained, any legislation concerning work affecting private land has to take careful care to strike the right balance between public benefit and individual rights. The automatic rights introduced in 2017 were developed to maintain that balance.
Even more careful consideration is needed for legislation that applies retrospectively. It is for that reason that clauses 59 and 60, which have retrospective effect, include tighter restrictions on the rights they confer on operators. Under those clauses, operators will have automatic rights to carry out only limited activities that will not have adverse impacts on the land in question or impose any burden on anyone with an interest in the land. However, conferring these rights will facilitate activities such as crucial upgrading work on cables installed underneath land. Industry stakeholders have confirmed that this has significant potential to provide homes and communities with gigabit-capable connections at pace. The public benefits are therefore substantial, with little to no impact on private individuals.
Further expanding these retrospective measures, as proposed by the amendments, would require us to revisit two fundamental points: first, what would the public benefit be, and, secondly, what would the impact be on individual landowners’ rights? We have considered that carefully, and we do not think that the case has been made for the changes that the amendments propose.
Looking first at the impact on landowners’ rights, if apparatus can be upgraded or shared without material alteration to land or property—for example, if works are carried out solely on or within apparatus, such as a duct—impact on the land can be negligible. Upgrading equipment in a building almost always involves some direct impact, however small, on the building. We think that works that have an impact on property should require either agreement from the landlord or imposition by the courts through the processes provided for in the code.
In any event, if an automatic right of the kind envisaged was introduced, operators would still have to successfully engage with the landlords for logistical purposes, such as to arrange access to the property or to discuss any potential health and safety issues or need for repairs. If these conversations must take place, and we think that they should, it seems sensible that the operator should at the same time ask permission to carry out the works. That brings us again to the question of whether the expanded automatic rights, as proposed by the amendments, would be proportionate. There are other ways that operators can upgrade equipment in multi-dwelling units. They can already ask for the rights to do so, and measures are being introduced that will enable them to resolve matters quickly and cheaply.
Finally, what of the public benefit? Members made the point in Committee that residents in blocks of flats urgently need gigabit-capable connections, particularly if we are to meet our levelling-up ambitions in urban areas, as well as in rural communities. I have explained that the code already contains provisions that would enable operators to seek rights to upgrade apparatus in buildings. In contrast, an automatic right could have adverse impacts that have perhaps not been fully explored. Members suggest that there is consensus in industry that these changes are needed, but that is not the case. I have received direct representations from many fibre providers that strongly oppose these proposals. They say that the proposals would create an unfair advantage for operators with equipment inside buildings, with potentially anti-competitive effects.
I hope that gives the hon. Member for Hackney South and Shoreditch assurance that the provisions in the Bill on retrospective rights to upgrade and share represent a balanced approach, and that there are substantial measures in place and under way to connect residents of multi-dwelling units. I therefore hope that she will not press her amendments to a Division.
Finally, I will address the amendments tabled by my right hon. Friend the Member for New Forest West (Sir Desmond Swayne). First, amendments 12 and 13 seek to remove clauses 61 and 62 from the Bill. This is another matter that I am familiar with. Indeed, as I suggested in response to an intervention, I have had conversations with him and other hon. Members about particular cases, as well as with the campaign group that represents landowners on the issue.
The Government recognise that, since 2017, there have been problems between some landowners and telecoms operators, and a level of discontent about the result of the valuation regime change, but we want to bring that regime more in line with that of other utilities, and we believe there are significant benefits to doing so. I must say that I have found little evidence in recent weeks and months to suggest that the regime requires a radical overhaul.
I have encouraged more collaborative discussions between operators and landowners. I have looked into specific cases, and concluded that the measures that we are introducing to encourage more collaborative negotiations will help to tackle many of the problems that I have seen. Significant information about cases has not always been forthcoming when asked for, but if hon. Members would like to discuss constituency cases, I am always happy to receive the details. Fundamentally, we need a legislative framework that keeps costs low, so that we can encourage investment and protect consumers from price increases. The code valuation framework to calculate the sums payable to landowners by operators, which was introduced in 2017, aimed to achieve that. We maintain that the overall framework creates the right balance between the public need for fantastic digital infrastructure and making sure that landowners receive a fair payment for allowing their land to be used. The purpose of clauses 61 and 62 is to make sure that the valuation framework applies consistently across the UK and to all agreements the code applies to.
John Redwood
I certainly support the Minister in the belief that the more competitive the industry, the better the results that we will get. Has she had representations from people who would like to enter the market about whether the change would make them more likely to do so?
Julia Lopez
Most of the people I have spoken to are already in the market and believe that the change will make a big difference to how they roll out. It is a very competitive market with many new entrants. I am not aware of anybody who is just dipping their toe in the water; because it is so competitive, people are already aggressively in the market. We think that the change will really help to accelerate the roll-out to our constituents of fantastic digital infrastructure of the kind that we all understand is fundamental to driving productivity gains, and to reducing the divide between areas that do and do not have that connectivity.
From the contribution of my right hon. Friend the Member for New Forest West on Second Reading, I understand that his concern relates to the effect of clauses 61 and 62 on landowners who already host telecoms apparatus on their land. I recognise that, ultimately, these changes are likely to lead to reductions in the rent received by landowners with a tenancy protected by the Landlord and Tenant Act 1954 or the Business Tenancies (Northern Ireland) Order 1996. I appreciate that that might not have been expected by those entering into such tenancies at the time they were created, but it is also fair to say that market values change over time, and there is never any guarantee that rents received by a landlord will remain constant or increase.
We have also given careful consideration to the effect of clauses 61 and 62, and have balanced the impact that they might have on landowners with the wider, substantial public benefits that we are pursuing. It is also important to recognise that the changes will not happen until any ongoing agreement expires and comes to be renewed. Furthermore, clauses 63 and 64 introduce separate provisions allowing the landowner to recover compensation for any damage to their land, reduction in its value or reasonable expenses resulting from an operator exercising their code rights.
Clauses 61 to 64 ensure that the 2017 framework will apply to all future agreements. It must be remembered that the code has an underlying purpose, which is to support the delivery of robust digital networks. Our constituents increasingly rely on those networks for critical digital services. Only recently, the National Farmers Union’s digital technology survey found that poor mobile signal and unreliable internet access are hampering farming businesses. We know that rural connectivity is a problem for many organisations, and addressing it is one of our priorities as a Government. The Bill, including clauses 61 and 62, aims to address those issues.
I am sure that my right hon. Friend had only noble intentions when tabling his amendments, but although they may benefit some landowners, they have the potential to penalise entire communities by keeping network costs unacceptably high. Clauses 61 and 62 will help to reduce the digital divide between different parts of the country, as they will help to prevent deployment being cheaper in one area than another.
Finally, I turn to amendments 9 to 11 tabled by my right hon. Friend, which would require a party to use alternative dispute resolution processes before making certain applications to a court under the electronic communications code, including where an agreement granting rights under the code is being sought. The provisions on ADR processes in the Bill aim to create more collaborative discussions between landowners and telecoms operators to ensure that litigation is used only as a last resort. I suspect that that is what the amendments seek to ensure as well. Although I sympathise with the intention behind these amendments, the Government oppose them—first, because they are unnecessary; secondly, because ADR is not appropriate in every situation; and thirdly, because they would be counterproductive to the amendments’ overall intentions.
The Bill requires operators, when requesting rights under the code, to inform the landowners of the availability of ADR. Crucially, it also creates a requirement that if an application is made to a court, the court will be required to take into account any unreasonable refusal to engage in ADR when awarding costs. Those requirements strongly incentivise the use of ADR without the need to make it mandatory. The Government therefore believe the amendments to be unnecessary.
It is also important to note that ADR may not be suitable in certain cases, such as where a disagreement is based on differing interpretations of the law. Such points of law must be resolved in the courts, and mandatory ADR would add cost and time to that process without offering any benefit.
The Government also believe that the amendments would be counterproductive to their own goals. If ADR were compulsory, some parties would be compelled to participate in an ADR process they do not want to be involved in, and so would be less inclined to actively engage in the process. That would increase the risk that ADR would fail, which would mean that parties would have to go to court anyway. If that were the case, all that compulsory ADR would have achieved is to add an additional layer of time and costs for landowners, such as charities, sports clubs and farmers. It should also be noted that, when consulted, a clear majority of stakeholders were not in favour of compulsory ADR. I hope that I have given my right hon. Friend assurance that the provisions regarding ADR in the Bill already represent the most effective way of encouraging its use, and I hope that he will not press his amendments to a Division.
Chris Elmore (Ogmore) (Lab)
You will be aware, Madam Deputy Speaker, that I have spent at least the last five and a half years as an Opposition Whip encouraging brevity, so I do not intend to keep the House too long. I will keep my remarks short and hopefully to the point. As I said on Second Reading and in Committee, I will not pretend that the Opposition do not support the wider principles of the Bill. I thank the Minister for the constructive way in which she has engaged on it with me from the outset.
I turn to the new clauses and amendments. New clause 1 is an improvement on the Government’s first attempt to change the definition of “occupier”, but the changes put forward are still not watertight when it comes to preventing unintended consequences. The new clause does not address the underlying issue that operators could theoretically use it in situations other than when existing agreements have expired, which could lead to financial consequences for small site providers who have been hard done by since the electronic communications code review in 2017. More work is needed when the Bill moves to the other place to ensure it does not unintentionally punish site providers further. We have no issue with the proposal in new clause 2 that grants the Secretary of State power to make regulations that provide for a function conferred by the code on the court to be exercisable in relation to Wales by the first-tier tribunal.
I will speak to amendment 14 on behalf of my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier). She sends her apologies to the House; she is chairing the Public Accounts Committee. We have checked with the Clerks and the Speaker’s Office to check that that is appropriate. That amendment, and the consequential amendments 15, 16 and 17, seek to apply a different regime under the electronic communications code to private landlords. They would give operators automatic upgrade rights in respect of properties owned by private landlords, subject to the strict condition that the upgrading imposes no additional burden on the other party to the agreement.
The growing digital divide in our towns and cities has only been exacerbated by the pandemic. The Government’s broadband target has been downgraded twice, and the Digital, Culture, Media and Sport Committee doubts that the current 85% gigabit target will be met. The backlog is due to the difficulty in accessing a high number of properties, a disproportionate number of which are flats, whose absentee landlords have little to no incentive to respond to requests to upgrade and improve connectivity.
Andrew Percy
Indeed, but as my right hon. Friend will know, Brigg and Goole is of course the most important place in this country, and I am therefore particularly exercised by what happens there. He is absolutely right, though: that competition, which is also seeing the KCOM network expanded and rolled out in his constituency in the northern bit of East Yorkshire, is really very important. That is not to say that BT Openreach does not have an incredibly important role to play—of course it does, and I praise it for its work in getting gigabit broadband expanded across the country, but some of its behaviour raises questions.
The shadow Minister, the hon. Member for Ogmore (Chris Elmore), who moved amendment 14 and spoke to the group I am referring to, brushed aside concerns about private property rights and the claims that BT Openreach and others will potentially have greater powers than the police to enter private property. He said that that would all be on the basis of no loss or damage. Well, that is all fine, but it is a fairly high bar in loss of personal property rights—or a low bar, depending on how you want to think of it. I was not exactly comforted by his dismissal of people’s legitimate concerns around one provider having particular rights to access property that others would not have. On that basis, I urge the Government to reject and oppose those amendments.
Julia Lopez
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—
Julia Lopez
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.
Julia Lopez
I beg to move, That the Bill be now read the Third time.
The Romans built the roads, the Victorians built our canals and railways, and our generational challenge is to make sure that the UK has world-class digital infrastructure. That is not just about the needs of today, when we depend on reliable connections for online meetings, television streaming or calling friends and family. We are rolling out, at breakneck speed, full-fibre networks that will last for decades and cater for tomorrow’s needs, alongside more extensive wireless infrastructure to end the frustration of terrible signal and slow downloads.
The Bill is one tool that we need to deliver great connectivity for everyone, and I am grateful for the cross-party recognition of the importance of our task. The Government also recognise that greater connectivity brings the greater threat of harm to individuals, organisations and networks through an increased risk of cyber-attack. If networks and devices are not secure or trusted, we undermine their potential benefit to people and businesses.
I thank the consumer group, Which?, for its campaign that supported the development of our Bill. Not only are our measures important to protect people’s online security when enjoying the benefits of technology, but they will help to protect people’s personal safety. I particularly thank Jessica Eagleton of the domestic violence charity, Refuge, for her compelling evidence at the Public Bill Committee. The Bill is backed by industry experts and I thank them for their input. Other countries are already following suit, and with this Bill, the first domestic piece of legislation in the world to introduce security requirements of connected products, we are global leaders in the cyber-security landscape.
In short, this Bill is vital to the success of our digital economy in the decades ahead. Once passed, its measures will make the UK a better connected place and more resilient against cyber-attacks. Before it moves to the other place, I extend my thanks to the departmental officials for their work preparing the Bill; to the Opposition for their pragmatic and collaborative approach; to the members of the Bill Committee and the witnesses for their commitment; to the parliamentary Clerks, without whose efforts we would not be attending this debate; and to Members from across the House, including my Parliamentary Private Secretary, my hon. Friend the Member for Clwyd South (Simon Baynes), for the scrutiny and support they have provided. I look forward to seeing this important piece of legislation come into force. I commend the Bill to the House.
UK Songwriters and Composers
Julia Lopez Excerpts(2 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Media, Data and Digital Infrastructure (Julia Lopez)
I thank the hon. Member for Cardiff West (Kevin Brennan) for securing this debate and for superbly highlighting the enduring talent and ingenuity of Britain’s songwriters and composers, the value of their creativity in and of itself, and the cultural and economic capital they generate for our nation. I also congratulate him on his election to be the new chair of the all-party parliamentary group on music.
I am also grateful to the hon. Gentleman for highlighting the incredible night on Saturday, when we had the most perfect result we might have hoped for at Eurovision. I congratulate Sam Ryder on his performance and on restoring our reputation for Eurovision mightiness.
If the hon. Gentleman has noticed a modest uptick in his Spotify stats this week, it is because I researched this debate to the mournful strums of “The Wrecker of Wick” and “The Clown & The Cigarette Girl,” two of his great contributions to the British catalogue of compositions. Should his bandmate, my right hon. Friend the Member for East Yorkshire (Sir Greg Knight), one day retire, I stand ready to dust off my drumsticks to fill the gap in his magnificent band, MP3/MP4.
From the Beatles to Kate Bush, and from Ed Sheeran to Sam Ryder, the work of UK songwriters and composers is a prized national asset that resonates with audiences all over the world, giving us tremendous soft power globally. I suspect we will shortly see that talent showcased at the platinum jubilee concert. Their skills are vital not only to the music industry but to the creative industries as a whole, including advertising, film and television. The hon. Gentleman cited the role of the BBC, and I recently met its head of pop music to discuss how the BBC nurtures creative talent.
I also thank the hon. Gentleman for highlighting the importance of music, musicians and composers to wellbeing during the pandemic, when many people found solace in music. At this juncture, I would like to thank an important charity in my constituency, Singing for the Brain, which does fantastic musical work with dementia sufferers.
As the hon. Gentleman highlighted, Monday marked the start of Ivors Week, a celebration of UK songwriters and composers hosted by the Ivors Academy. I am very excited to attend the Ivor Novello awards tomorrow alongside the Secretary of State for Digital, Culture, Media and Sport. I was pleased to hear about the Ivors Academy’s new diploma. That ceremony will place a spotlight on the economic value of music to the UK economy. As UK Music has calculated, the sector employs more people than the steel and fishery industries combined. However, it does face challenges, partly as a result of the pandemic and because of how technology is changing the economic model in the sector.
The hon. Gentleman has been a powerful voice in this House about the ways in which the rise of digital technology is bringing about dramatic changes to the UK music landscape. The advent of streaming has undoubtedly revolutionised the way in which we consume and engage with music, but it has also had a profound impact on the industry. That shift has significantly altered how creators earn an income, as royalties from streaming largely replace music sales as the dominant source of that income. That shift has called into question the business models operated by platforms. I am aware that campaigns such as #brokenrecord, which is led by the Ivors Academy and the Musicians’ Union, highlight concerns about the distribution of streaming royalties. The Government want the UK music industry, including songwriters and composers, to be able to flourish in the digital age. In response to concerns raised by his Committee, the Select Committee on Digital, Culture, Media and Sport, in its inquiry on streaming, we are undertaking a wide-ranging programme of work to delve into the evidence and find solutions to the issues highlighted by the inquiry.
I have recently met key stakeholders, such as the British Phonographic Industry, UK Music and Warner Music Group, to discuss the music streaming debate and how creators can be further supported. The Secretary of State has also engaged closely on these issues. The major record labels play an important role in helping artists, including emerging talent, so that they can connect with audiences and thrive in the streaming era. As the hon. Gentleman will be aware, they have now each announced that they will disregard unrecouped advances from pre-2000 contracts and pay more to more artists for streaming, which was one of the recommendations from the Select Committee’s inquiry. I know that that was greeted positively by artist representatives.
We think that those kinds of industry initiatives are a step in the right direction to make sure that the streaming market is fairer, but we are looking at what else we can do and whether further action will be necessary. Similarly, although we agree with many of the issues raised by the Committee in its inquiry, we want to ensure that any action is based on the best available evidence. The Minister for science, research and innovation, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Mid Norfolk (George Freeman), and I have written to the Select Committee this week with an update on the work under way. In advance of the hon. Gentleman receiving that letter, let me update him by saying that the Intellectual Property Office is now working alongside industry experts to develop solutions to issues around contract transparency and music metadata, one of the issues he highlighted today. That will have an impact on the way in which songwriters and composers are remunerated for their work on streaming. We have also commissioned independent research on the impact of potential legislative interventions aimed at improving creator remuneration.
The Centre for Data Ethics and Innovation is progressing work on the effects of algorithms on music consumption and the potential impacts on music creators. It is also exploring how streaming services can better communicate with creators and mitigate against potential harms for those groups. The hon. Gentleman cited the Competition and Markets Authority. It is undertaking a market study into music streaming, which will add value to and complement the Government’s programme of work, and could help inform any future intervention. That CMA market study was launched in January 2022, as he will know. An update is due in July, with the study scheduled to conclude in January 2023. We are encouraged by the progress of the programme of work so far, with industry stakeholders engaging constructively and taking the issues seriously.
Another key income stream for our composers and musicians comes from live music. As the hon. Gentleman highlighted, the live music scene is undergoing a period of recovery, in the wake of a very difficult experience during the pandemic, and we are working hard to support it. I am glad to reflect on where we stand today compared with the grim situation that faced us over the Christmas period with omicron, when the team and I were talking through the needs of the live music sector in emergency support meetings. I am glad that some of the worst fears highlighted at that time have not come to pass and that we have been able to open up the economy, which has been crucial in getting that income flowing into venues again. But we also want to build on existing schemes to continue to support the live music sector. Since the national lottery project grant’s “Supporting Grassroots Live Music” scheme launched in 2019, the Arts Council has made 253 awards, and invested £4.7million in venues and promoters through that fund. That has supported everything from upgrading equipment and offering free rehearsal spaces and mentoring, to refurbishing bathrooms and staging family-friendly gigs. That is separate to a lot of the support that we put in during the pandemic and via the cultural recovery fund. I am pleased to say that the Arts Council has confirmed that the fund has been extended until 31 March 2023. That will, thanks to national lottery players, provide a £1.5 million ringfenced fund that will support the grassroots live music sector.
Not only are we seeing domestic recovery from the pandemic, but we are a major presence on the international music scene. We are the largest exporter of music in the world after the USA, with around one in 10 of all tracks streamed globally being by a British artist. That is incredible. The sector’s high export capacity and its ability to access international audiences will continue to elevate the UK on the global stage, forge new international relationships and enable us to promote British values around the world.
Alongside the work I have outlined, we continue to provide export support for the UK’s creative industries through a range of export-support programmes, including the international showcase fund and the successful music export growth scheme, which provides grants to music companies to help them with marketing campaigns when they look to introduce successful UK music projects overseas.
We are looking at what more we can do as part of the wider creative sector vision—to be published in the summer —on support for UK creative talent. As part of that sector vision, we are working with the industry to build a more resilient workforce, and we have co-funded research from the Creative Industries Policy & Evidence Centre to look into the job quality and working practices of the creative industries. That will help us to better understand some of the really tricky issues that affect the workforce in the creative sector, including in respect of freelancers and creators, and particularly when it comes to job security, remuneration, professional development and wellbeing. As I say, the sector vision is due to be published this summer. We hope to use the document as the basis of a longer-term strategy that takes us up to 2030.
The hon. Gentleman made an important point about investing in the future of music makers to make sure that our music success story continues. We want to make sure that all young people engage with music, and we plan to do so through the implementation of a national plan for music education. The NPME strategy sets out our vision for all children and young people to learn to sing, play an instrument and create music together, and to have the opportunity to progress their musical interests and talents, including professionally. We are confident that such initiatives will help to provide the next generation of aspiring creators with the tools and knowledge they need to achieve their full potential. I hope to make further announcements on the subject when we have finished that piece of work.
I think everyone present would agree that the work of songwriters and composers is not only crucial to the success of our music industry but hugely beneficial to the UK’s culture and economy. That is why we will continue to work alongside the industry to seek solutions and make a tangible difference. We will also continue to celebrate and commend the work of UK songwriters and composers. I wish the Ivors Academy and every participant in the awards tomorrow the very best of luck.
Question put and agreed to.