Gambling-related Harms

Lord Parkinson of Whitley Bay Excerpts

Thursday 14th October 2021 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, it has been a pleasure to listen to the debate this afternoon. I thank the right reverend Prelate the Bishop of St Albans for securing it. One of the first things I did when I joined your Lordships’ House was join the Select Committee on the Social and Economic Impact of the Gambling Industry, along with him, the noble Lord, Lord Foster of Bath, and my noble friends Lord Smith of Hindhead and Lord Mancroft. I am pleased to have the opportunity early on in my new role to debate this issue, which I know continues to interest a great number of people in your Lordships’ House.

Public Health England’s review is a valuable contribution to our understanding of gambling-related harm and the forms it can take. It is also especially timely. It was an important commitment made following the last gambling review in 2018, and I am happy to assure the right reverend Prelate that its findings will be carefully considered in the Government’s ongoing review of the Gambling Act.

The landscape of gambling, as in many areas of life, has changed significantly since 2005, but the objective of the Act to protect children and vulnerable people from being harmed or exploited remains fundamental to the Government’s vision for the sector. Our Gambling Act review will ensure that our regulatory framework is fit for the digital age. Its objectives include making sure that all those who choose to gamble in Great Britain can do so in a safe way.

The Gambling Commission’s work to strengthen protections is continuing alongside the review. As noble Lords noted, gambling is a leisure activity for most, but it is also clear that many people and their families have their lives devastated by gambling-related harm. The Government are clear that gambling harm is a public health issue, as a number of noble Lords rightly noted, and we treat it as such.

Gambling legislation and Gambling Commission regulation are designed to keep gambling safe for the population as a whole. However, we have more specific measures and targeted interventions to give appropriate protection to children and vulnerable adults. The report shows that the problem gambling rate among adults is 0.5% and has remained stable since 2012, but it is essential that those suffering harm receive the help they need. Our National Health Service has committed to opening 15 new treatment clinics for problem gamblers by 2024, and the industry has committed £100 million for treatment over the same period.

A number of noble Lords, including the right reverend Prelate and the noble Lord, Lord Foster, mentioned the costs of gambling harm. PHE reports found that the annual economic burden of harmful gambling is approximately £1.27 billion but, as my noble friend Lord Smith of Hindhead noted, the report makes it clear that the analysis presented estimates the costs associated with, not caused by, gambling. There are complicated interactions between gambling and mental health problems and, as the report makes clear, alcohol use. Nevertheless, the costs associated with gambling harm are stark, so there is clearly important work still to be done.

As the noble Lord, Lord Foster, said, the report identifies gaps in the evidence base. One of the aims of our review is to make sure that we have high-quality evidence to support regulation. We will work with the Department of Health and Social Care and key parties to address the knowledge gaps identified in the evidence review and improve data collection. He asked whether that would include data from companies. The Gambling Commission is taking forward work on a national data repository with the aim of collecting data for use by researchers; I am pleased to say that it will include data directly from gambling operators.

One area where there is an evidence gap, as was noted by the right reverend Prelate and the noble Baroness, Lady Merron, concerns regional disparities. He will not be surprised to know that my eye alighted on the fact that the north-east had the highest prevalence of at-risk gamblers. However, I also saw that the PHE report was clear that, because of the small numbers it studied, it was not possible to determine those levels with any statistical significance, so that is one area where further evidence is needed and further research needs to be undertaken.

A number of noble Lords including the noble Lord, Lord Sikka, and my noble friend Lord Smith mentioned children. I am pleased to say that children’s gambling participation is in decline. In 2011, 23% of 11 to 16 year-olds said that they had gambled in the past seven days, while in 2019 it was 11%. However, we cannot be complacent. This is why, as my noble friend Lord Smith alluded to, we have increased the minimum age limit to buy National Lottery products to 18. We are also considering other potential measures to protect children and young people as part of our review. If the noble Lord, Lord Sikka, would like to tell me about the website he mentioned, I would be glad to look into why he was able to get through and discuss that with him in further detail.

The noble Lord also talked about online protections more generally. Significant progress has been made in recent years to make online gambling safer, including a ban on gambling on credit cards and new rules to reduce the intensity of online slot games. However, we recognise that more can be done to protect those who gamble online. Our review is looking closely at the case for greater protections for online gamblers, including protections on products and for individuals. The Gambling Commission is also working to improve how operators use data to identify customers at risk of harm and intervene.

The noble Lord, Lord Sikka, asked about the tax arrangements of gambling operators. All companies selling gambling to customers in Great Britain pay UK gambling duties wherever they are based; the remote gaming duty is 21% of gross profit.

The noble Baroness, Lady Bennett of Manor Castle, and my noble friend Lord Robathan mentioned advertising. PHE’s evidence review did not find evidence that exposure to advertising and marketing is a risk factor for harmful gambling. However, operators must advertise responsibly. We are committed to tackling aggressive practices.

[Lord Robathan (Con)]

I should have congratulated my noble friend on his new post, by the way. If advertising does not encourage people to gamble, why are companies spending so much money on it?

[Lord Parkinson of Whitley Bay (Con)]

It is a competitive market and, if people choose to use their money in this way, operators are encouraging them to do it with their specific companies; as private enterprises, they are right to do that. But, as I say, operators must advertise responsibly and we are committed to tackling aggressive practices where we see them. We have called for evidence on advertising and sponsorship specifically as part of our review, and we are looking closely at the issue of sports sponsorship as part of it.

More broadly, on marketing and inducements, we have called for evidence on promotions and offers. One of the things I learned about when sitting on your Lordships’ committee was that the number of customers in VIP schemes has fallen by over 70% since the industry started following new rules on how the schemes should be run from September 2020. Gambling Commission and advertising rules already prohibit inducements which encourage customers to gamble more intensely, and operators are not allowed to market directly to those who have self-excluded or customers showing signs of vulnerability, but this is one of the areas we want to look into in the review.

The noble Baroness, Lady Bennett, asked about loot boxes. The Government are delivering on their manifesto commitment to tackle the issue of loot boxes in video games. We ran a call for evidence last year to understand their full impact and received over 30,000 responses. We are reviewing those responses and continuing to engage with the industry to determine the most robust and proportionate solutions, and our response will set out the next steps that we intend to take.

The noble Lord, Lord Foster, and others mentioned problem gambling in the Armed Forces. The Government are vigilant to the emergence of problem gambling among those serving in our Armed Forces, which includes providing welfare support and financial awareness training. The Ministry of Defence also blocks gambling websites on its networks to reduce their accessibility. PHE’s evidence review found no association between exposure to combat situations and problem gambling, and there is a lack of longitudinal evidence to clarify whether trauma is a risk factor for harmful gambling. However, we welcome further evidence in this area as well, and are taking a close interest in the results of a recent important study from Swansea University looking at gambling participation among ex-service personnel.

The right reverend Prelate mentioned the troubling estimate of over 400 gambling-related suicides per year in the PHE studies. Of course, any suicide is a tragedy. It is important to note that the figure in the PHE report is an estimate based on two overseas studies; we do not know how many suicides in the United Kingdom are linked to gambling. The Department of Health and Social Care is working to improve our data collection and address other evidence gaps on this most important of issues. NHS England is also investing £57 million in suicide prevention through the NHS long-term plan. Investment in all areas of England by 2023-24 will support suicide prevention plans locally and establish bereavement support services. We know how serious these impacts can be.

While the gambling review is ongoing, the Government and the Gambling Commission are not waiting for it to end to take action where it is needed to make gambling safer. In the last 18 months, we have: banned gambling on credit cards; tightened restrictions on VIP schemes; raised expectations of online operators during the Covid pandemic, with increased monitoring and intervention throughout; introduced new rules to limit the intensity of online slot games; and launched a consultation on new rules for customer interaction to protect people who gamble online. The Public Health England review is therefore a timely contribution to our ongoing efforts to prevent gambling harm. It will be considered very carefully as part of our thorough review of the Gambling Act, together with all the other evidence we continue to receive. We will publish a White Paper setting out any proposals for reform and our vision for the sector in the digital age in due course.

I give my thanks again to the right reverend Prelate and all noble Lords who have spoken in today’s debate. I know they will continue to contribute to the debate in this important area.

UK Fashion Industry

Lord Parkinson of Whitley Bay Excerpts

Wednesday 13th October 2021 Lords Chamber

[The Earl of Clancarty]

To ask Her Majesty’s Government what support, if any, they intend to provide to the United Kingdom fashion industry, in particular to support its work in European Union member states.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, the Government are fully committed to supporting our world-leading fashion industry. We are operating export helplines, running online seminars with policy experts and offering business support through a network of 300 international trade advisers. We are also investing millions of pounds in customs intermediaries and have launched the export support service for UK businesses. We engage closely with the fashion industry, including through the DCMS-led working group on touring, to support the sector to extend its international impact.

[The Earl of Clancarty (CB)]

My Lords, I welcome the noble Lord to his new post. The fashion industry is hugely valuable culturally and economically, yet it faces serious Brexit-related concerns in manufacturing—garment workers should be added to the shortage occupation list—the debilitating cost and red tape of importing materials and exporting goods, and immobility. With visas, work permits, carnets and cabotage, it shares many of the same problems as the music industry. Is the Minister aware that there are now real difficulties getting models to shoots in Europe, the most valuable market, fast enough? How are the Government addressing this multiplicity of concerns, knowing that freelancers and smaller companies will be the first to suffer?

[Lord Parkinson of Whitley Bay (Con)]

The DCMS-led working group is addressing the multiplicity of issues which the noble Earl mentions. The shortage occupation list is of course a matter for the independent Migration Advisory Committee. When it last looked at this, it found that occupations in garment manufacturing did not warrant inclusion, but it will be for that body to keep that under review. The working group on touring includes representatives from across the creative sectors, including the chief executive of the British Fashion Council. We have addressed a number of the sector’s concerns already, such as by confirming that fashion professionals from the UK will not be double-charged for social security contributions, but that engagement and work continues.

[Baroness Bull (CB)]

My Lords, the challenges of Brexit for the fashion sector and the wider creative industries have been clearly enumerated in my noble friend’s Question, but we are repeatedly told that the agreement is a done deal and that unpicking one part would unravel the rest—ironically, an image drawn from fashion. Can the Minister explain why it is now possible for government to demand changes to one part of the UK’s agreement with the EU but not possible to reopen a considerably less contentious part and thereby protect the contribution of the creative sectors to UK jobs and to economic success?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the European Union was very clear in its negotiations and, alas, did not accept the proposals which the UK put forward during them. That is why we are discussing bilaterally with member states these matters and the implications which she and the noble Earl mentioned and providing as much clarity as we can to the industry, including through specific landing pages on GOV.UK to help it navigate the new arrangements.

[Lord Flight (Con)]

My Lords, people working in the fashion sector, as in the creative industries more generally, often have irregular working patterns. Do the Government appreciate that and how have they taken this into account in the visa rules they apply to people working in these important fields?

[Lord Parkinson of Whitley Bay (Con)]

My noble friend makes an important point. On Monday, we launched a dedicated temporary worker route for creative workers, meaning that creative and sporting workers are no longer grouped together in one immigration route. The temporary work route permits a gap of up to 14 days between engagements. In April, the Home Office introduced a mechanism to stop the clock when calculating that 14-day period, so that any time spent outside the UK is not counted towards it. That new arrangement better reflects the working practices of people in the creative sector and, I am glad to say, has been well received.

[Baroness Donaghy (Lab)]

My Lords, the Government were silent on the impact of Brexit on UK services. The sin of omission means that service professionals were not given the full picture. The fashion industry is worth £35 billion and has been seriously impacted, as outlined by the noble Earl, Lord Clancarty. Will the Government try to reach an agreement or a declaration with the EU on visa waivers? As has been said by the noble Baroness, Lady Bull, this would not require a renegotiation of the TCA. Finally, will the Government get a move on with creating craft and design T-level courses to help fill the thousands of vacancies at UK factories?

[Lord Parkinson of Whitley Bay (Con)]

Regrettably, my Lords, we do not believe that a visa waiver is viable. During the negotiations last year, the European Commission argued that EU-wide visa arrangements would have to include binding non-discrimination clauses committing us to waiving visit visas for current and future member states of the EU, which is not compatible with the commitment in the manifesto, on which the Government were elected, to take back control of our borders. Of course, our new immigration system allows us to have and to continue our very generous offer to people working in the creative industries from all around the world—they are very welcome here in the UK.

On T-levels, I am pleased to say that the content for the craft and design T-level has been developed by employers. The appointed awarding organisation is now developing the technical qualifications and assessments, and it will be available for first teaching from September 2023.

[Lord Foster of Bath (LD)]

My Lords, I too congratulate the Minister on his appointment. He will be well aware that the Government are currently considering introducing an international rather than a national intellectual property exhaustion scheme. Many of our very successful exporting creative industries, including fashion, believe that this move could be devastating, some even describing it as an existential threat. Do the Government share their concerns?

[Lord Parkinson of Whitley Bay (Con)]

Sadly, the negotiated outcome which the UK proposed with the EU was not something it was willing to agree in the negotiations before we left the European Union, but the Intellectual Property Office is considering concerns such as those which the noble Lord raises to see whether any changes can be made to the UK’s design systems to address the issue in the future.

[Lord Vaizey of Didcot (Con)]

My Lords, I echo the congratulations offered to my noble friend on his new appointment on the Front Bench. We look forward to seeing him on the front row of many fashion shows at London Fashion Week next week, where he will be an adornment and perhaps even a distraction.

My noble friend will know that many highly successful domestic fashion companies manufacture in this country. They depend on high-net worth foreign individuals coming here and buying their stock. They used to come here because they could reclaim their VAT. The Chancellor has of course got rid of this scheme. Will my noble friend brief himself on the impact this has had on domestic fashion companies and keep engaged with the Treasury, as does our Business Secretary, on this important issue as it develops?

[Lord Parkinson of Whitley Bay (Con)]

I thank my noble friend for his warm words of welcome. He knows better than most how lucky I am to have the job I have just begun.

The issue of VAT is one that my noble friend has campaigned on, both in your Lordships’ House and in another place. We did not have the choice of maintaining the VAT retail export scheme as it was; the choice was between extending it to EU residents, at significant cost to the UK taxpayer, or removing it completely as WTO rules mean that goods bound for different destinations must be treated the same. I will of course look into this further, as he suggests, but my understanding is that fewer than 10% of visitors to the UK use the VAT retail export scheme and that extending it to the EU could increase total costs by up to £1.4 billion a year.

[Baroness Wheatcroft (CB)]

My Lords, following on from the question from the noble Lord, Lord Vaizey, would the Minister inquire whether it was the ability of HMRC to deal with the extra paperwork that it felt would be generated by extending the scheme that actually put paid to it, and whether that is why 40,000 jobs are under potential threat?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

I will certainly follow up with HMRC the point that the noble Baroness raises. I should add that tax-free shopping is still available in store when goods are posted to overseas addresses. People can still avail themselves of that.

[Baroness Merron (Lab)]

My Lords, I welcome the Minister to his place and wish him all the very best. While the fashion and textile industry is a leading contributor to our economy, an engine room for jobs and a standard-bearer for British style and reputation, one could be forgiven for thinking it has been overlooked. Following the warning issued by ASOS and others about the impact of supply chain issues, how would the Minister ensure urgent support to the industry to overcome HGV driver and skilled worker shortages? Looking to the future, what plans are there for a major skills boost, so that we can see more and better clothing made for sale both here and abroad?

[Lord Parkinson of Whitley Bay (Con)]

The sector certainly has not been forgotten. We continue to work very closely with the fashion industry to understand the challenges it faces and to identify new opportunities to develop it. It is a world-leading sector, of which we are very proud. I mentioned the working group which includes the chief executive of the British Fashion Council; that is just one of many ways we have engaged with the sector. My noble friend Lord Frost chaired the Brexit business task force on fashion and textiles in May, we have two trade advisory groups from DIT, and we have hosted a number of online seminars. We continue to engage with the industry, and I look forward to working with the noble Baroness and others as we do so.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, the time allowed for this question has elapsed.

UK Journalism (Communications and Digital Committee Report)

Lord Parkinson of Whitley Bay Excerpts

Wednesday 13th October 2021 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, it is a pleasure to respond to this debate, initiated by my noble friend Lord Gilbert of Panteg, on the report of your Lordships’ committee into the future of journalism in the UK.

The committee’s very thorough inquiry was a valuable contribution to the debate on a very important subject, as the noble Lord, Lord Inglewood, said. Today’s debate has been equally valuable in its thoughtful consideration of the issues and the crucial role of journalism in our society. That is not surprising, given the breadth and depth of experience that noble Lords have brought to bear on the subject. As well as half a dozen past and present members of your Lordships’ committee, we have heard—to mention just a few—from a former chairman of the BBC and ITV, a former director-general of the BBC, and journalists at all levels, with experience at, among others, the Times, the Daily Mail, the Sunday Telegraph and the Economist, as well as the current chairman of the Independent Press Standards Organisation. I suspect that the noble Lord, Lord Jones, is not the only Member of your Lordships’ House whose experience in this area began with a newspaper round. I shall endeavour to address the points that all noble Lords have raised in the debate but, before I do, I thank my noble friend Lord Gilbert for his very helpful scene setting and his kind words of welcome.

A free and sustainable press is a key requirement of a healthy democracy—a point that has come across very forcefully in today’s debate. As reflected in our manifesto commitment, local newspapers in particular are a vital pillar of our communities and of local democracy. They provide a valuable service, fostering democratic engagement, instilling a sense of pride and social cohesion, and holding those who provide public services at every level to account—a point made by the noble Baroness, Lady Wheatcroft, and others. This role is under threat, in the UK and overseas. As one journalist recently put it:

“In many regions of democratic states what goes on in the courts, council chambers, planning committees, chambers of commerce, trade union branches, community centres, sports clubs, churches and schools now goes unreported because local newspapers have gone bust or shrunk to shadows of their former selves. Citizens of most UK towns and cities now have much less information about what’s happening in their localities than their grandparents did.”


As my noble friend Lord Gilbert eloquently set out, journalists around the world are facing very grave dangers as they carry out their vital function as a pillar of democracy—a point that, as the noble Lord, Lord Birt, pointed out, was powerfully underlined by the recent decision of the Nobel prize committee.

The crucial role of journalism at all levels has been further highlighted during the pandemic. As my noble friend Lady Buscombe noted, the press has performed a vital public service in providing trusted news and public health information over the past year and a half, as well as in countering disinformation and misinformation. But the pandemic has also exacerbated many of the industry’s financial challenges, which pose an existential threat to its long-term survival.

As society has shifted online, the sector’s income from traditional print-focused business models has collapsed. Revenues that they are generating online have not yet offset these losses, and government-commissioned research found that total news publisher revenue fell by 50% between 2007 and 2017. This decline was accompanied, over the same period, by a 25% fall in the number of titles and the number of journalists employed.

In response, news providers are seeking to innovate and adapt to changes in the market, while continuing to develop traditional journalistic skills and to produce high-quality content. It is therefore vital that we also consider all possible options in the interests of promoting and sustaining news journalism, so that future generations can be inspired, challenged and engaged by a free and vibrant press.

That is why the Government have made a concerted effort to support the sector in recent years. I welcome the noble Lord, Lord Bassam of Brighton, and others noting that. Using the Cairncross review as our template, we are seeking to address the market failure in the provision of public interest news. We have delivered a £2 million pilot innovation fund, which sought to explore new ways of sustaining the industry in this challenging landscape. We have zero-rated VAT on e-publications, including e-newspapers, and we have extended business rates relief on local newspaper office space until 2025. We have published our Online Media Literacy Strategy, which explores how information literacy can empower users to consider critically the content with which they engage online, as well as support users’ understanding of the journalistic process—which, as the noble Lord, Lord McNally, and others rightly pointed out, is very important. We are establishing a new media literacy task force, which will bring together key parties to take collective action to address key challenges in this area in a co-ordinated way. We will also be legislating for a new pro-competition regime, which will help to rebalance the relationship between publishers and platforms. I will return to this shortly.

In the shorter term, reflecting the financial impact of the pandemic and with a view to ensuring that the sector can continue to carry out its vital role in the provision of trusted news, we designated journalists as key workers during national lockdowns; we included essential print workers in the “reasonable excuse” scheme, enabling them to leave self-isolation for work purposes; we issued guidance to local authorities to ensure the continued delivery of newspapers; and we worked with adtech companies to ensure that the use of keyword blocklisting technology does not disproportionately limit news publishers’ online advertising revenues for Covid-19 related stories. We also implemented a significant public information campaign, across both the national and local press, worth £35 million in its first phase, to ensure that authoritative information about the Government’s response to the pandemic was distributed through reliable channels.

The noble Baronesses, Lady Wheatcroft and Lady Grender, mentioned the Local Democracy Reporting Service. That is independently run by the BBC, which I am pleased to say has committed to continuing the scheme until at least 2027. The BBC announced the creation of 15 new LDRS reporters, taking the total to 165, from July this year. Funds for this increase have come from a reallocation of resources from the BBC’s £8 million per annum local news partnerships budget—but the Government would support any further efforts by the BBC to grow the scheme.

I turn to the particular challenges raised by society’s shift towards digital consumption of media. As recognised in the report of your Lordships’ committee and in the speech of my noble friend Lord Gilbert, online platforms have created new opportunities for journalism but have also challenged established funding models and disrupted the relationship between publishers and their readers.

Last year, the Government committed to establishing a new pro-competition regime for digital markets. At the heart of this regime will be a mandatory code of conduct designed to govern the relationships between powerful online platforms and the businesses that depend on them, promoting fair trading, open choices, trust and transparency. This will make an important contribution to the sustainability of the press. Noting the committee’s calls for urgency on this matter, which we have also heard from the industry, the government consultation on the shape of the regime closed at the beginning of this month. A summary of responses will be published and taken into consideration as we prepare to legislate as soon as parliamentary time allows.

With regard to the question from my noble friend Lord Gilbert and the noble Viscount, Lord Colville of Culross, about incorporating a mandatory bargaining code in the regime, we have not ruled out any options. Our thinking here is informed by the responses to the consultation and by the work of the Digital Markets Unit and Ofcom, which together are looking at how a code introduced under the regime would govern the relationships between the platforms and publishers.

Turning from the economic to the social, the digital shift has also given rise to the spread of illegal content online. To tackle this, as a number of noble Lords mentioned, we are bringing forward the online safety Bill, which will give online platforms safety duties for user-generated content on their services. I am glad that my noble friend Lord Gilbert is among those on the Joint Committee giving this Bill pre-legislative scrutiny. I shall not pre-empt its work today other than to say that this legislation will safeguard access to journalistic content. News publishers’ own websites are not in scope and below-the-line comments on those sites are also exempt. Additionally, the legislation will bring in strong protections for news publisher content and wider journalistic content when it is shared on social media platforms.

As my noble friend Lord Grade of Yarmouth highlighted, copyright is another means of ensuring that publishers are appropriately remunerated for the use of their content. We are monitoring the implementation of the copyright directive and its press publishers’ rights in the EU with that point very much in mind.

The noble Lord, Lord Lipsey, took us back to the Leveson inquiry. Since that inquiry, the media landscape has changed significantly and there now exists a strengthened, independent, self-regulatory system for the press that ensures that it adheres to clear and appropriate standards. We believe that reopening the Leveson inquiry is no longer appropriate, proportionate or in the public interest. Indeed, the Conservative Party manifestos in 2017 and 2019 set out our intention to repeal Section 40 of the Crime and Courts Act 2013. We are exploring options as to how and when that repeal can be effected.

I turn briefly to the broadcasting sector. As Ofcom noted earlier this year,

“trusted and accurate national and regional news”

continues to be among the public’s top priorities for our system of public service broadcasting. Notably, in the first week of the pandemic, the percentage of people who said that they trusted information from the public service channels was over 80%—we should rightly be proud of that. We expect public service broadcasters and their journalists to adhere to the highest standards while respecting their journalists’ right to freedom of expression—noting too that public service broadcasters are operationally and editorially independent. Like your Lordships’ committee, the Government welcome the initiatives taken by individual broadcasters in this regard such as the BBC’s revised guidance for its employees on the use of social media. Public service broadcasting has a long and proud tradition in the UK, delivering trusted news, and it is vital that public confidence be maintained for fair and balanced reporting.

As noble Lords mentioned, the Government are undertaking a strategic review of public service broadcasting. The review, whose terms of reference can be found on GOV.UK, is looking at what a modern public service broadcasting system should contribute to economic, cultural and democratic life across the United Kingdom—which clearly includes accurate and impartial news and indeed current affairs programmes, as the noble Lord, Lord Birt, rightly underlined.

The Government have also announced plans to legislate to make it a legal requirement for major online platforms to carry public service television, including news, and to ensure that it is easy to find. In doing so, these changes will give effect to a government commitment, and the recommendation of your Lordships’ committee in its earlier report on public service broadcasting, to implement a new prominence framework in line with Ofcom’s recommendations.

Noble Lords also raised a number of points regarding the workforce of the journalism industry. Your Lordships’ report noted the importance of ensuring that people from traditionally underrepresented backgrounds who aspire to go into journalism are not put at a disadvantage, and that this is important in building confidence in our news media. Ofcom’s latest diversity report on TV and radio, published last month, illustrates that there is still a lot of room for improvement and that greater progress is needed particularly in the retention and development of diverse talent. We also acknowledge that the BBC needs to improve its culture with a new emphasis on accuracy, impartiality and—as my noble friends Lady Meyer and Lord Gilbert and the noble Baroness, Lady Fox of Buckley, pointed out—diversity of opinion to ensure it does not succumb to groupthink and become detached both from criticism and the values of all parts of the nation that it serves.

While we do not propose to amend the statutory framework for diversity reporting in broadcasting as recommended by the committee, there are other levers that we can use to help to address such concerns, including through our support for apprenticeships. For example, we recognise the challenges of offering apprenticeships in sectors where more flexible working patterns are prevalent, such as in the press. In August, we launched a £7 million flexi-job apprenticeship fund, enabling apprentices to work across a range of projects and with different employers to gain the full skills and experience they need. As the noble Lord, Lord Bassam, rightly said, this is about broadening the base of an important industry.

I noted the points raised by the noble Viscount, Lord Colville of Culross, about the challenges facing freelancers. The Government have committed to strengthening the powers of the office of the Small Business Commissioner, who provides a vital free service to support small businesses with issues relating to payments and disputes. The recent consultation on the proposed new powers for that office closed in December and an analysis of those responses is under way. The Government will of course respond and set out their next steps, but I will ensure that the points that the noble Viscount raised are noted by colleagues in the Department for Business, Energy and Industrial Strategy.

My noble friend Lady Buscombe mentioned the importance of court reporting. The Government and the judiciary both recognise the important role that journalists play in ensuring our legal system is open and transparent and, indeed, that justice is not just done but seen to be done. That is why we have updated our guidance so that journalists, at the discretion of the court, may be permitted to record proceedings in court as an aide-memoire. We have published guidance for court and tribunal staff on how to facilitate court reporting and established a national media working group which, alongside regional such groups, brings together media representatives, court officials and staff from the Ministry of Justice to discuss ways to promote media access to our judicial processes.

The noble Baroness, Lady Wheatcroft, asked for an update on the appointment of a new chairman of Ofcom. As noble Lords know, the previous Secretary of State made the decision to re-run the process to appoint the Ofcom chairman, as permitted under the Governance Code for Public Appointments and following consultation with the Commissioner for Public Appointments. An announcement on the launch of a new campaign will be made as soon as possible. It will be fair and open and run in compliance with the Governance Code for Public Appointments. In line with the code, all candidates who feel they meet the selection criteria can submit an application, including those who have applied for the first competition.

For all of the challenges it faces, the long history and modern vibrancy of journalism in the UK should be a source of great pride. Its role in democracy has never been more important. That is why the Government will continue to support the industry to sustain itself and thrive through an unprecedented period of change, whether that is through our world-leading pro-competition regime for digital markets, our work to set the global standard for safety online while safeguarding access to journalistic content or our work to explore what a modern public service broadcasting system should contribute to economic, cultural and democratic life. My noble friends Lord Vaizey of Didcot and Lord Grade of Yarmouth asked for action this day and desk-banging. I hope that what I have set out today gives them and other noble Lords a sense of some of the actions that we are already undertaking as well as our appreciation of the work that still needs to be done. Today’s debate and the report of your Lordships’ committee have been an important and impressive contribution to that ongoing work, and I look forward to working with noble Lords in that endeavour.

Telecommunications (Security) Bill

Lord Parkinson of Whitley Bay Excerpts

Committee stage
Thursday 15th July 2021 Grand Committee

[Lord Fox (LD)]

Once again, this is a short but important debate, and one of a continuing series. In response to the noble and gallant Lord, Lord Stirrup, we had a short discussion that, to some extent, was crying over spilt milk about why industrial capacity in telecommunications in the United Kingdom is where it is. I think the noble Earl, Lord Erroll, largely agrees with me that it is to do with the purchasing decisions made by near-monopolistic private sector companies based on price. If that is not a lesson for the Government to take forward, we are all doomed anyway.

To turn to the detail of these two amendments, as both the noble Baroness, Lady Merron, and the noble and gallant Lord, Lord Stirrup, have set out, they are about people. Without overrepeating it, I come to the point I was talking about earlier, which is that BEIS is going through a similar process. It is setting up a unit that is supposed to scan the entire industrial landscape for supposed security problems and alert the Minister to decisions that should be made about the future of those companies. These people will have many of the same skills and face many of the same issues, going forward.

First, does the Minister think there is a sufficient pool of people available to cover both these units? Is it sensible to have two units operating in parallel to, and probably in isolation from, each other, with the BEIS unit setting up a telecoms capability, which DCMS will also have? Perhaps the Minister can tell us what conversations are going on between DCMS, Ofcom and BEIS to avoid that duplication. We have already heard that there are too few people so, frankly, it does not make much sense to have two departments competing for the same people.

More broadly, the noble Baroness, Lady Merron, is completely correct that there is a huge issue with the availability of people. Unless the Government pick up major programmes to train and retrain people and look at skills that are completely necessary to move forward, we will be left high and dry without the skills we need to create the sorts of industries that the noble and gallant Lord, Lord Stirrup, suggested we need. That will take time, so perhaps the Minister can say what the plan is. What is the process and what discussions are going on with trainers, universities and employers to deliver the skill set we need?

Of course, we would want to review all this annually, which is why these amendments are here, so the Government necessarily come to Parliament to explain how they are getting on and what they are doing. I am sure the Government do not want us to be suspicious of what they are doing, and the best way to avoid that suspicion is to be open and transparent, rather than try to operate in a black box.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, these amendments, both tabled by the noble Baroness, Lady Merron, highlight the two important issues that our short debate covered—the role of Ofcom in relation to the Bill; and skills and training, and their effect on telecoms security. I am pleased to have the opportunity to outline some of the work that has already been done in these areas, which I hope explains why we consider these amendments not to be needed.

Amendment 26 would require the Government to complete a review of, and publish a report on, the impact of levels of skills and training on the security of the telecoms network and supply chain. It would require the Government to publish the report within six months of Royal Assent.

The Government certainly agree that it is crucial that public telecoms providers and organisations such as Ofcom have access to people with the skills that they need to keep our networks safe. DCMS published research this year as part of its annual survey, Cyber Security Skills in the UK Labour Market, which found that 50% of UK businesses have a basic technical skills gap. It also found that they do not have confidence in their ability to carry out basic cybersecurity functions and do not outsource these skills.

That is why the Government have a range of programmes already in place to support the growth of cybersecurity skills. Over the past five years, work funded by DCMS has supported over 160,000 young people to forge a career in the cyber sphere. The department has also funded a range of schemes to help adults or career changers to acquire new skills, most recently through the Cyber Launchpad initiative and projects sponsored through the fast track digital workforce fund.

Clearly, there is still much more work to be done to close the cyber skills gap. However, we are making progress. When compared with the 2018 survey, Cyber Security Skills in the UK Labour Market 2021 found that organisations were less likely to report a basic cyber skills gap in areas such as firewall configuration, restricting administrator rights and patching.

Specifically on skills in the telecoms sector, we know that telecoms providers need to have access to people with the right skills to ensure that their networks and services are secure, as the noble and gallant Lord, Lord Stirrup, rightly said. That is why we are creating a pipeline of these skills for the future, with telecoms apprenticeships currently available across the sector, and over 4,500 people starting this year alone.

The creation of the UK telecoms lab, as announced by my right honourable friend the Secretary of State in the other place last November, will facilitate knowledge sharing and promote skills development in telecoms security. The lab will collaborate with DCMS, the National Cyber Security Centre, the newly established UK Cyber Security Council and industry. It will develop and deliver training packages and support the establishment of professional bodies and communities. I hope that these initiatives demonstrate how seriously the Government take the task of supporting telecoms skills, and cyber skills in particular, and why we feel that the review proposed in the amendment is not needed.

I will speak more broadly about our skills agenda. The Department for Education has targeted specific investment in key areas of learning, such as science, technology, engineering and mathematics—STEM—and technical and digital subjects, which could support careers in telecoms. That includes: £2.5 billion of investment in the national skills fund to support adults to retrain and gain the skills they need for the future; nearly £2.5 billion made available for high-quality industry-designed apprenticeships; £500 million a year towards T-levels; up to £290 million to establish institutes of technology across the country, which will be the pinnacle of technical training; and a new £18 million growth fund to support further and higher education providers to expand high-quality higher technical education.

The noble Baroness, Lady Merron, asked about the impact of skills on the removal of Huawei equipment. We have no plans or intention to delay the 2027 target for the removal of Huawei equipment from 5G networks. Indeed, BT, for example, has already shared in the media that it is making good progress on removing Huawei from 5G networks, starting in Hull. We believe that we are on track.

Amendment 23 would require Ofcom to publish an additional statement as part of its annual report, under paragraph 12 of the Schedule to the Office of Communications Act 2002. This statement would contain information about the adequacy of Ofcom’s resourcing, and telecoms providers’ compliance with their security duties. It would also contain Ofcom’s assessment of any future or emerging risks to telecommunications networks, identified by interrogating telecoms providers’ asset registries.

I reassure the Committee that this amendment is also not needed. The Bill already contains a range of reporting mechanisms that will ensure that Ofcom’s role can be properly scrutinised. I will address three of these mechanisms in particular.

First, Ofcom will need regularly to report to the Secretary of State under new Section 105Z, providing information to assist him with the formulation of policy on telecommunications security. New subsection (4)(a) makes it clear that this report must include information on providers’ compliance with the duties imposed on them by the Bill.

Secondly, Ofcom will need to report on telecoms security in its annual infrastructure report. Clause 11 specifies that this should include information on the extent to which providers are complying with their security duties under new Sections 105A to 105D. Thirdly, by virtue of Clause 14, the Secretary of State will need regularly to report to Parliament on the effectiveness and impact of the new telecoms security framework.

The amendment would address three issues. I will take each in turn. The first concerns Ofcom’s resources, on which the noble Baroness, Lady Merron, began. As my noble friend the Minister mentioned at Second Reading, Ofcom’s security budget for this financial year has been increased by £4.6 million. This funding will allow Ofcom more than to double its headcount of people working on telecoms security, ensuring it has the necessary capacity to deliver its new responsibilities under the Bill. The noble Baroness asked specifically about staffing. Ofcom will work with a recruitment partner to secure the specific cyber skills needed to implement this work. This will include seconding in technical expertise to develop its capability further.

As we discussed earlier in the Committee, Ofcom will also work closely with the NCSC, which will share its expertise to support Ofcom’s implementation of the new regime. The noble Baroness mentioned the relationship between Ofcom and the National Cyber Security Centre. As she noted, the two organisations are in the process of developing a memorandum of understanding and have published a statement summarising how they intend to work together. The three key principles set out in that statement are, first, that the NCSC will provide expert technical cybersecurity advice to Ofcom to support implementation of the new telecoms security framework; secondly, that Ofcom and the NCSC will exchange information where necessary and permitted by law; and, thirdly, that the NCSC will continue to provide incident management support during serious cybersecurity incidents to telecoms operators and to Ofcom as necessary. That statement can be found on Ofcom’s website.

The second area of the amendment is a requirement for Ofcom’s annual report to include information on providers’ compliance with their duties under new Sections 105A to 105D. This reporting would duplicate provisions elsewhere in the Bill. Ofcom is already required to report publicly on providers’ compliance with those duties in Clause 11.

The final point in the amendment is about publishing information on emerging and future security risks. This has also been accounted for in the Bill. New Section 105Z(4)(f) already requires that Ofcom report to the Secretary of State any emerging risks it becomes aware of in its annual report on security. The noble Baroness asked about informing the public. It would be at the discretion of the Secretary of State whether to publish this information.

I can assure the Committee that Ofcom takes a forward-looking approach to regulation to ensure that it is robust in the face of market and technological developments. For example, its recent Technology Futures report looked at innovative technologies that will shape the communications industry, with input from the world’s leading technologists.

I hope that I have provided assurance that adequate and detailed reporting requirements for Ofcom are already outlined in the Bill. As I have set out, it already includes provision for reporting on Ofcom’s work, so additional requirements about skills and training are not necessary. I hope that the noble Baroness will therefore be content not to press her amendments.

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[Baroness Merron (Lab)]

My Lords, I thank the noble Lords, Lord Clement-Jones and Lord Fox, for tabling this amendment. I do not have too much to add to this brief and interesting debate, but I take the opportunity to thank the Constitution Committee for its report on the Bill.

At Second Reading the Minister said:

“Oversight of the Investigatory Powers Act regime by the Investigatory Powers Commissioner is considered appropriate because of the potential intrusion into the private lives of individuals as a result of the use of covert powers. The national security powers in this Bill are very different from those in the Investigatory Powers Act”.—[Official Report, 29/6/21; col. 747.]


However, she did not say why it would be wrong for the commissioner’s remit to change. This is the one point I put to the Minister, and it would be helpful to have a response.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I thank the noble Lords, Lord Fox and Lord Clement-Jones, for tabling this amendment. As the noble Lord, Lord Fox, says, the noble Lord, Lord Clement-Jones, is a victim of the speedy progress we have made in this Committee.

Like them, I recognise the importance of proper oversight and scrutiny in the use of the Bill’s powers. The amendment they tabled aims to give the Investigatory Powers Commissioner oversight of the Secretary of State’s power to issue designated vendor directions. The Bill already contains effective mechanisms for oversight of the Secretary of State’s use of those powers to give a designated vendor direction or designation notice. It requires the Secretary of State to lay copies of designation notices and designated vendor directions before Parliament. That will provide Parliament with the opportunity to scrutinise their use.

As the Committee has heard, on very rare occasions the Secretary of State may choose not to lay a designation notice or direction before Parliament because to do so would be contrary to the interests of national security. Where this is the case, the Digital, Culture, Media and Sport Select Committee will be able to view such directions and notices, so there will be oversight there.

On the legal point that the noble Lord, Lord Fox, raised, designated vendor directions and designation notices are subject to ordinary judicial review principles. The Secretary of State will issue designation notices and designated vendor directions only where they are necessary in the interests of national security and the requirements in the directions are proportionate.

The Investigatory Powers Act 2016 provides a frame- work for use by the security and intelligence agencies, law enforcement agencies and other public authorities to obtain communications and communications data. The role of the Investigatory Powers Commissioner is independently to oversee the use of these powers, ensuring that they are used in accordance with the law and in the public interest. The regime set out in the Investigatory Powers Act is not directly comparable with the new powers and framework set out by this Bill, as the noble Baroness, Lady Merron, noted. The reason for that is that oversight of activity by the Investigatory Powers Commissioner, as authorised by the Investigatory Powers Act, is considered appropriate because these powers often involve balancing important questions regarding the right to privacy.

The national security powers in this Bill are very different from those in the Investigatory Powers Act. They focus on protecting public telecommunications networks and services from the threats posed by high-risk vendors. That is different from questions about individual citizens, their communications and their communications data. That is why we respectfully disagree with the suggestion by the Constitution Committee of your Lordships’ House and feel that it would not be appropriate for the Investigatory Powers Commissioner to have an oversight role in respect of this Bill.

Briefly, that is why the Government disagree with this amendment and hope that the noble Lords, Lord Fox, will be content to withdraw it.

Racism in Sport

Lord Parkinson of Whitley Bay Excerpts

Tuesday 13th July 2021 Lords Chamber

[Lord Faulkner of Worcester (Lab) [V]]

My Lords, I welcome and endorse the tribute paid by the Minister and my noble friend Lord Coaker to Gareth Southgate and the England team. They are genuine role models in whom we can all take a great sense of pride. The Minister will recall that she answered an Oral Question from me on this subject on 23 March. She said:

“The police already have a range of legal powers to identify individuals who attempt to use anonymity to escape sanctions for online abuse.”


May I ask her what those sanctions are and what progress has been made in making football a specific priority in the hate crime unit looking at online discrimination against protected characteristics, as specified under the Equality Act 2010? She spoke about imposing a duty of care on social media companies with

“clear systems of user redress and strong enforcement powers from Ofcom.”—[Official Report, 23/3/21; col. 724)

[Lord Parkinson of Whitley Bay (Con)]

I am sorry to interrupt the noble Lord but half the time for this PNQ has already lapsed and we need to make more progress.

Telecommunications (Security) Bill

Lord Parkinson of Whitley Bay Excerpts

Committee stage
Tuesday 13th July 2021 Grand Committee

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to noble Lords who have taken part in the debate on these amendments, which seek to require regulations and codes to reflect advice provided by technical advisory boards and a judicial commissioner. The amendment to Clause 2, tabled by the noble Baroness, Lady Merron, requires any regulations made under new Section 105D to reflect advice provided by the existing Technical Advisory Board to the Home Office and a judicial commissioner. Similarly, the two amendments tabled by the noble Lord, Lord Clement-Jones, would require regulations to reflect advice provided by a new technical advisory board and a judicial commissioner.

Each of these amendments concern regulations made under new Section 105D and codes of practice issued under new Section 105E. I appreciate that noble Lords are seeking to ensure that any regulations and codes of practice are appropriate and proportionate before they are made or issued. However, there are several difficulties with what they propose. First, Clause 2 already requires the Secretary of State to make these measures only when he actively considers that they are appropriate and proportionate, under the wording of subsections (2) and (4) of new Section 105D. To ensure that is the case, the Secretary of State would have to consider relevant advice, which could include technical security assessments provided by the National Cyber Security Centre. The noble Baroness, Lady Merron, asked whether the advice would be published. As is usual practice, we would not publish advice given to the Secretary of State on the new framework, but we will consult on the code, and we feel that is the best and appropriate way in which to draw together the views of all relevant parties and their expert advice.

Advice to the Secretary of State could also include relevant representations by public telecoms providers. To reassure the Committee on this point, we have received helpful feedback from telecoms providers on the illustrative draft measures that were published in January. DCMS continues routinely to engage with telecoms providers about this Bill and telecoms security more widely.

Similarly, Clause 3 requires that any codes of practice are finalised only after consultation with affected providers. The process of consultation, when taken together with the fact that codes can only give guidance on legal obligations and not expand their scope, as noble Lords noted, means that any final codes in effect will be appropriate and proportionate. The noble Lord, Lord Fox, asked whether it was enforceable by law. It is guidance, not law, but the code has certain legal effects, as set out in Clause 3. In that context, further advice from a technical or judicial panel would therefore be unnecessary.

We understood the amendment proposed by the noble Baroness, Lady Merron, to refer to the Technical Advisory Board to the Home Office. That board provides advice regarding the reasonableness of obligations imposed on telecoms providers under the Regulation of Investigatory Powers Act 2000 and the Investigatory Powers Act 2016. Each of these amendments risks confusing two separate sets of security arrangements.

Section 227 of the Investigatory Powers Act provides for the Prime Minister to appoint the Investigatory Powers Commissioner and judicial commissioners. The role of the Investigatory Powers Commissioner is to authorise and oversee the use of the investigatory powers, in the public. The Investigatory Powers Act regime is not comparable with the new framework set out by this Bill. Oversight of the Investigatory Powers Act regime by the Investigatory Powers Commissioner is considered appropriate because of the potential intrusion into the private lives of individuals as a result of the use of covert powers.

The powers to make regulations under this Bill are very different to those in the Investigatory Powers Act. They are focused on protecting public telecoms networks and services by improving the security practices of telecoms providers—so those two sets of arrangements should not be confused. Indeed, there are specific provisions in the Bill designed to ensure that it does not adversely affect lawful activity carried out by law enforcement authorities and the intelligence services under the Investigatory Powers Act. The judicial commissioner would therefore be the wrong body to advise the Government on the Bill’s regulation-making and code-issuing powers. For those reasons, the Government are not able to accept these amendments, but I hope that that explains why and reassures the noble Lords sufficiently for them to be content not to press their amendments today.

--- Later in debate ---

[Lord Fox (LD)]

I thank the Deputy Chairman and apologise for speaking across him. I am a bit intrigued by the comment of the noble Lord, Lord Parkinson, on the subject of legal enforceability. He is correct to say that, as new Section 105H states, the

“provision of a code of practice does not of itself make the provider liable to legal proceedings”

—but it would not be liable only when the provision was not in force in time or when it was not legal. However, you would not bring a legal case anyway when it was not relevant or in force, so, to all intents and purposes, where the code is in force and relevant, it is legally enforceable. Therefore, it is legally enforceable.

[Lord Parkinson of Whitley Bay (Con)]

First, if I may, I will take back the point made by the noble Lord, Lord Fox, about new Section 105H under Clause 3; I will write to him to, I hope, alleviate any concerns and confusion. There are certain legal effects set out; I will write to him to clarify the point about legal enforceability.

I am grateful to the noble Lord, Lord Clement-Jones, for his appreciation. Part of the confusion here may be that two technical advisory boards are mentioned in these groups of amendments. As I think he noted, the one set up under RIPA has a different function, but we are certainly not being dismissive of the points that have been raised. Indeed, as I said, we have spoken to the industry and received helpful feedback from telecoms providers on the illustrative draft measures that were published in January. We will also be glad to look at the information that he mentioned—the views that have come his way—to make sure that these are reconciled; if he is happy to share them, we will look at them and come back him.

[Baroness Merron (Lab)]

I thank all noble Lords for their contributions. In view of the pandemic restrictions on the numbers that might sing in a choir inside, it is dangerous now to say that we are singing from the same hymn sheet—as the noble Baroness, Lady Barran, will recall from her time at the Dispatch Box. I do not know whether we would count as amateur or professional, so perhaps I could venture in that direction, but there is a sense among noble Lords of wanting to strengthen the Bill by ensuring that the Secretary of State has the best technical advice.

I thank the Minister, the noble Lord, Lord Parkinson, for his response. However, I take from it that a technical advisory board is not required. I share the confusion that was referred to earlier by the noble Lord, Lord Clement-Jones. On the one hand, in the previous set of amendments, we were advised that this is so technical that it is not appropriate for a particular aspect of parliamentary scrutiny, yet suddenly, it seems, it is not quite as technical but we need further advice. I am reminded of the words of the then Lord Chancellor, Michael Gove, who we will recall commenting in a debate over Brexit that we have “had enough of experts”; I suspect the Minister will have picked up from the amendments today that we feel we have not had enough of experts. I hope he will reflect on the fact that these amendments seek to assist the Secretary of State, and to assist this Bill to do the job it is here to do to very best effect. With that, I beg leave to withdraw the amendment.

--- Later in debate ---

[Baroness Merron (Lab)]

I thank the noble Lords, Lord Fox and Lord Clement-Jones, for these amendments. As before, it is a pleasure to follow their contributions and that of the noble Earl, Lord Erroll.

On the codes of practice and Amendment 10, I understand the importance of not wanting to put undue burdens on businesses. We should make particular reference to the exceptionally difficult and testing times that businesses and the economy have had to suffer over the past year due to the pandemic. Obviously, a balance needs to be considered. We have to ensure that if the codes are going to be used, they are the most effective way of implementing security measures. How will the Government consider the impact of codes on businesses? For example, will there be specific consultation about undue costs in respect of businesses?

The concerns that we have heard in this debate give a further nod to concerns about lack of parliamentary oversight, which is missing from the codes. I again say gently to the Minister that by giving parliamentarians the opportunity to provide scrutiny there might also be the ability to review the impact on businesses.

Amendments 16, 17 and 21 would ensure that Ofcom’s new powers in the Bill were subject to requirements in Sections 3 and 6 of the Communications Act 2003. Section 3 focuses on the general duties of Ofcom, while Section 6 focuses on reviewing regulatory burdens. It would be helpful to hear from the Minister whether the Bill has been deliberately drafted for the new powers to fall out of scope of those sections in the Communications Act and, if so, why.

What review process will be faced in respect of Ofcom’s new powers? It is very important that, when new powers are given, there is an opportunity to review, reflect and amend, and to keep a close eye on whether those new powers are doing the job intended.

[Lord Parkinson of Whitley Bay (Con)]

I thank the noble Lords, Lord Fox and Lord Clement-Jones, for these amendments, and all noble Lords who have spoken in the debate. The amendments focus on the need for the regulations and code of practice to be proportionate, and to ensure that the duties of Ofcom are carried out in a transparent and similarly proportionate way.

I turn first to Amendment 10, tabled by the noble Lord, Lord Fox. This amendment to Clause 3 seeks to ensure that codes of practice are necessary and proportionate to what they are intended to achieve, and do not place an undue burden on telecoms providers. The Bill already includes provisions in Clauses 1 and 2 to ensure that security duties placed on public telecoms providers in the primary legislation and specific security measures set out in regulations must be considered to be appropriate and proportionate by the Secretary of State. The code of practice will provide the technical guidance on the steps that public telecoms providers should take to meet their security duties. I certainly agree with the noble Baroness, Lady Merron, about the extra—and indeed extraordinary—work that providers have done over recent months to keep us all in contact during the pandemic.

To help ensure that technical guidance in the code of practice is appropriate and proportionate, Clause 3 requires the Secretary of State to publish a draft version of the code of practice before it is issued, and to consult on its contents. This public consultation will take place after the Bill has attained Royal Assent; it will enable the voices of telecoms providers of all sizes—as noble Lords rightly pointed out—the wider sector, Ofcom, and any other affected groups to be heard and taken into account before the code of practice is finalised. Subsequent versions of the code of practice, which will be revised as technology evolves and new threats emerge, will also be subject to the same process of consultation before being issued.

An impact assessment is also being conducted for proposed secondary legislation to be laid as part of the new framework, which will take into account the initial cost assessments from providers to ensure that the framework is balanced and proportionate. The precise make-up and design of each provider’s network remains a commercial decision. The Bill makes it clear that providers are responsible for the security of their own networks and services; providers also remain responsible for deciding how they recover their costs. As such, we expect the costs of ensuring adequate security to be met by individual providers.

I turn to Amendments 16, 17 and 21, tabled by the noble Lord, Lord Clement-Jones. These seek to apply Sections 3 and 6 of the Communications Act 2003 to Ofcom’s duties and powers under Clauses 5, 6 and 19 of this Bill. Section 3 of the Communications Act sets out Ofcom’s general duties; these include a duty on Ofcom to have regard to the need for transparency, accountability and proportionality when carrying out its functions. Section 6 of the Communications Act requires Ofcom to review the burden of its regulation on telecoms providers. These are all principles that we think are essential to the functioning of the new security regime created by this Bill. I am glad to repeat the reassurance given by my noble friend in her letter, which the noble Lord, Lord Clement-Jones, mentioned, that Ofcom is already bound by its general duties in Sections 3 and 6 of the Communications Act when carrying out its security function under new Section 105M, and when using any of its powers in this Bill. This will include Ofcom’s power to carry out an assessment of public telecoms providers’ compliance with their security duties under Clause 6 of this Bill, and powers for Ofcom to give inspection notices under Clause 19. As my noble friend said in her letter, if Ofcom fails to carry out its security functions in line with these duties, it could be subject to legal challenge.

The provisions in the Bill already ensure that the regulations, code of practice and duties of Ofcom are proportionate. Therefore, we do not think that these amendments are necessary, and we hope that noble Lords will be happy not to press them.

[Lord Clement-Jones (LD)]

My Lords, I thank the Minister for that—he pierced through the gloom of the afternoon, giving an assurance that existing duties of Ofcom will cover the new powers.

I think we have a Pepper v Hart situation that works for the other aspects on the code of practice. It is not just the regulations and the duties and powers of Ofcom that are subject to it; the way in which the code of practice will be drawn up is covered also by the duties under Sections 3 and 6 of the existing Act. I very much hope so, and I need to take away and read what the Minister had to say.

European Football Championships: Travel

Lord Parkinson of Whitley Bay Excerpts

Monday 21st June 2021 Lords Chamber

[The Deputy Speaker (Lord Haskel)]

My Lords, the time allowed for this Private Notice Question has elapsed.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I believe that 15 minutes are allowed for a Private Notice Question, so there is time for the final question.

[The Deputy Speaker (Lord Haskel)]

I am so sorry. I call the noble Baroness, Lady Fox.

--- Later in debate ---

[The Deputy Speaker (Lord Haskel)]

My Lords, all supplementary questions have been asked.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am glad that injury time allowed the noble Baroness, Lady Fox, to get her question in.

Dormant Assets Bill [HL]

Lord Parkinson of Whitley Bay Excerpts

Committee stage
Monday 21st June 2021 Grand Committee

Moved by

[Lord Parkinson of Whitley Bay]

6: Clause 2, page 3, line 8, leave out “were” and insert “are”
Member’s explanatory statement
This would correct an inconsistency between Clause 2(2)(a) and corresponding provisions elsewhere in Part 1, such as Clause 8(2)(a).

[Lord Parkinson of Whitley Bay (Con)]

My Lords, on 14 June the Minister tabled minor and technical amendments that, as she has explained to the Committee, are needed to ensure that the Bill works properly. These included changes for clarity and consistency and updates to references and consequential amendments. My noble friend set out these amendments, along with some further detail, in her letter to all noble Lords on the same date.

The changes relating to consistency can be grouped into two categories. The first, including Amendments 6, 10 and 12, seeks to ensure consistency of language in the insurance and pension transfer provisions. This includes a change of tense to align with other transfer provisions. These amendments would change references to a person to whom the benefits or proceeds

“were payable immediately before the transfer”

to a person to whom they are

“payable immediately before the transfer”.

The other change to the insurance and pension transfer provisions is to correct a minor terminological error in Clause 7(5)(c), which should refer to the “benefits” rather than the “proceeds”, aligning with the pension benefits mentioned in the opening words of Clause 7(5).

The second category, including Amendments 34 to 37, seeks to ensure consistency of language in references to shareholders. In particular, it would change references to the individual in whose name the share was “held” to the individual in whose name the share was “registered” so that there could be no doubt that the Bill refers to the same individual. I beg to move.

--- Later in debate ---

[Lord Bassam of Brighton (Lab) [V]]

My Lords, I have nothing to add except that government Amendment 12 is described as a “verbal error”. I am not quite sure that you can have a verbal error in a piece of written legislation; perhaps the Minister can help us with that one.

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the noble Baroness and the noble Lord for their support and brevity. As I said, these are minor amendments.

The noble Lord, Lord Bassam, alighted on “verbal”. I changed that word in my opening to this short debate to “terminological”; I hope he agrees that that is a bit clearer. Either way, I hope he sees that it is de minimis.

Amendment 6 agreed.

--- Later in debate ---

Moved by

[Lord Parkinson of Whitley Bay]

11: Clause 7, page 6, line 43, leave out “the person mentioned in subsection (2)(a) or” and insert “a person mentioned in subsection”
Member’s explanatory statement
This would correct two minor errors in Clause 7(3)(b)(ii). The reference to subsection (2)(a) is unnecessary and should be removed. And “a person” at the beginning is more accurate than “the person”, as there may be no person of the kind mentioned.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, again, these amendments relate to the minor and technical amendments about which the Minister, my noble friend Lady Barran, wrote to your Lordships on 14 June.

Amendments 66 to 72 are consequential amendments to the schedules to other pieces of legislation. Amendment 66 would amend references in the Financial Services and Markets Act 2000 to an “authorised reclaim fund”; it would also amend the regulated activities order to ensure that it reflects the wider activities of a reclaim fund provided for by the Bill.

Amendments 67 to 71 would amend the Dormant Bank and Building Society Accounts Act 2008. Amendment 67 would ensure that the provisions made in Clause 17(1) of the Bill, on trust and fiduciary duties, apply to banking assets. Amendments 68 and 69 would clarify that the Reclaim Fund is to transfer money from unwanted assets to the National Lottery Community Fund while being able to retain the amount it needs to meet regulatory requirements or expenses. Amendment 70 would remove an unnecessary reference to the deduction of expenses from surplus funds. As these have already been identified as surplus and therefore available in full for transfer to good causes, no further deductions would be needed. Amendments 71 and 72 would ensure that the 2008 Act refers to all types of eligible pensions benefits.

The other amendments—Amendments 11, 32, 38 to 41, 43, 47 to 49, 73, 74 and 76—would ensure that cross-references to the Bill are correct. I beg to move.

[Baroness Kramer (LD)]

My Lords, I will again be brief but I went nearly mad trying to track some of these amendments through. I accept that they are consequential but I have one question. FSMA 2000, an Act with which I have spent far too much of my life, will—after these amendments—now use the phrase “unwanted asset money”. Are the Government comfortable that we do not have a problem with the word “unwanted”? There is a difference between dormant money and money that is unwanted. We all know that the reclaim process is critical but I want to be sure that we have not got ourselves into any tricky corners with all of that. That is my only comment; the intent is obviously consequential.

[Lord Bassam of Brighton (Lab) [V]]

My Lords, I too am broadly satisfied with this collection of amendments, although they raise some questions about the initial drafting. I made a point about that at the outset of this afternoon’s deliberations. I just wonder why we have to amend the definition of “third party” by government Amendment 47. Also, what is not right—this is in government Amendment 49—with the definition of “repayment claims” that requires amendment? Perhaps the Minister could help us with that.

[Lord Parkinson of Whitley Bay (Con)]

Again, I am grateful to the noble Lords for their support, particularly given the large number of amendments, albeit small ones. To answer the question of the noble Baroness, Lady Kramer, the use of “unwanted asset” is the intended terminology. “Unwanted” is different from “dormant”.

On the question raised by the noble Lord, Lord Bassam of Brighton, if he will forgive me, given the speed of progress on this group, it might be better if I make sure that I have understood it and write to him with a full answer so that he has that before Report. With that, I commend these amendments to the Committee.

Amendment 11 agreed.

Public Service Broadcasting (Communications and Digital Committee Report)

Lord Parkinson of Whitley Bay Excerpts

Thursday 27th May 2021 Lords Chamber

[Baroness Fox of Buckley (Non-Afl)]

My Lords, one premise of the report that I found very stimulating is that public service broadcasters are

“struggling to achieve their mission to serve all audiences in the face of increased competition”

from streaming services

“and changing viewing habits.”

This could identify the wrong problem, and it ignores the elephant in the room. There is a serious issue of broadcasters failing to serve all audiences, but I do not think it has much to do with video on demand. There is a much more profound identity crisis, and I am glad that the Government’s public service broadcasting advisory panel has tried to dig a bit deeper and ask whether, as has already been mentioned, the concept of public service is needed and, if so, what a modern PSB should look like.

That is a bit more like it, because it seems to me that, especially in the last five to six years, there has been a growing chasm between public service broadcasters and the public. More and more of the public feel alienated from mainstream media and often feel that they are being done a disservice by PSB channels. It seems significant that we are about to see the launch of a new channel, GB News, which has already been maligned and demonised in this place. It is being launched on 13 June. The director of news, John McAndrew, described GB News’s aims as free, fair, impartial and Ofcom-regulated, arguing:

“We can sense a real hunger for something fresh and different in television news and debate.”


He is right.

It is worth noting that this new channel is headed up by Andrew Neil. He was one of the best public service news broadcasters at the BBC—but they did not know how to use him and lost him. GB News is a start-up that has attracted presenters and production talent from across the PSB landscape, and a whole swathe of young producers and employees—diverse, passionate and eager to make a difference—recruited by an enthusiasm for the project of covering stories and voices neglected by PSB channels rather than by some special HR-designed diversity charter. I think it is exciting and although, according to one noble Lord we have heard, we should be worried because of its foreign owners—my goodness, xenophobic or what?—what is to say that GB News is not a new kind of public service broadcasting? We should at least allow it to shake up any complacency.

I want to focus especially on the problems of the BBC. The BBC is an institution whose ideals I love and want to defend, but I find it increasingly hard to do so. It feels as though somewhere along the line it lost track of its public service mission. I do not doubt the BBC’s commitment to serve and reflect communities across the country but, sadly, this is conceived in rather a technical way by focusing on regional production sites and programmes commissioned outside the M25. That is all good, but why then in the same month last year did we hear of £25 million cuts to established regional programmes while a pledge of £100 million was made to a new diversity initiative? I worry that obsessing about a particular interpretation of “diversity” does not serve all audiences and does not stress what we have in common but rather plays on differences.

My fear is that there is a balkanising of audiences going on by attempting to tailor programmes to different demographics and identity groups. It is true that this reflects one aspect of modern Britain—the divisive and essentialising identity politics so fashionable in metropolitan echo chambers. It can lead to the crassest form of programme making. Look at how broadcasters do not so much cater for 16 to 34 year-olds as chase after them, flattering and fawning to prove that PSB is relevant. It is excruciating witnessing the resulting soft bigotry of low expectations. Look at the tangle that Radio 3 and the Proms get into. “Add a bit of grime and rap and the audience will love us,” you feel them saying. Too many PSBs seem convinced that the young are an undifferentiated blob with the attention span of a gnat. The irony is that what the young are watching on streaming services are complex, nuanced, challenging long-form documentaries and drama series.

Another problem that I have with the focus on diversity is that too often it neglects diversity of opinion and thought. Even though Tim Davie, the BBC director-general, used the word “impartiality” 11 times in his inaugural speech, the most common complaint that I hear about the BBC is that it is partial by offering a narrow worldview. The problem with the present strategy is that it assumes that a Geordie or Yorkshire accent means diversity—but you can talk metropolitan orthodoxies with a northern voice, believe me. The BBC may have dumped received pronunciation, but its embrace of a suite of received opinions feels even more stifling and condescending.

Often the BBC cannot hear itself. It just does not realise that it is tone deaf about diverse values and worldviews that it does not share. This became apparent to me personally in 2016. I was a panellist on Radio 4’s “Moral Maze” for 20 years. I have done all the current affairs and news programmes that the BBC has to offer—a bit of a “BBC luvvie” if you want. No doubt I was seen as a bit of a maverick, but I was accepted on the scene. However, when I mentioned that I was going to vote leave, it was met with disbelief. “But you’re an intelligent, well-educated person, Claire,” said one senior producer—and from then on, in studios and green rooms, a growing sneer. And that sneering was even more viscerally observed by audiences.

The virtually unanimous view that Brexit was a foolish, backward and inexplicable idea meant that those called public service broadcasters did not have a clue what the public were thinking and were totally shocked at the referendum result. Many news reports before and since that democratic vote have given the impression that PSBs just do not like the public.

It is sometimes suggested—it has already been said here—that anyone who makes such criticisms is whipping up grievances and fuelling a culture war. I often think it is the other way around, and I worry that the BBC is inadvertently behaving like an activist in the culture wars. There are endless examples: the bizarre statement from “Countryfile” about the UK countryside being a “white environment”, and the “Rule Britannia” saga at the BBC Proms.

It was not the Defund the BBC campaign that clipped a section of a BBC Sounds podcast featuring two young women hectoring older white women for being “Karens” who should educate themselves about their white privilege, saying, “get out of the way” and ordering them to “basically leave”. The BBC eventually deleted the clip after a backlash, but what was it thinking? “Educate yourselves, you Karens” makes the old-fashioned, patrician Reithianism sound positively egalitarian.

The BBC is owned and paid for by the public, and it has a moral duty, not just a financial one—

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am sorry to interrupt the noble Baroness, but this is a time-limited debate.

[Baroness Fox of Buckley (Non-Afl)]

Do not be complacent, or public service broadcasting will not survive.

Telecommunications Infrastructure (Leasehold Property) Bill

Lord Parkinson of Whitley Bay Excerpts

3rd reading & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords
Thursday 28th January 2021 Lords Chamber

[The Deputy Speaker (Lord Haskel) (Lab)]

I have a request from the noble Lord, Lord Alton, to ask a short question.

[Lord Parkinson of Whitley Bay (Con)]

I think that might be from the previous group. The noble Lord, Lord Alton, is not in his place. He wanted to ask the Minister a question on the first group, but I think the message he sent was delayed in reaching the Woolsack electronically.

[The Deputy Speaker (Lord Haskel) (Lab)]

I call the Minister, the noble Baroness, Lady Barran.