Telecoms Supply Chain Review

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Monday 22nd July 2019 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

Good afternoon, Mr Speaker. I am grateful to the Secretary of State for advance sight of his statement and notice of today’s announcement.

In January this year, the Secretary of State said that the telecoms supply chain review was

“not a Huawei specific exercise”.

I am afraid that the report published today may be stretching that phrase to its limits. The Government’s handling of the question of Huawei's involvement in the future of the UK’s 5G network has been defined by one thing: confusion. Rather than this review being published as expected—in March, including a decision on Huawei’s role in our future telecoms networks—we have had a flurry of delays, leaks and rumours.

Today’s further delay on a decision on Huawei means that this confusion will continue, leaving the telecoms industry without the clarity and the public without the confidence they need. A ban on Huawei products could significantly delay the roll-out of the 5G technology that will underpin our tomorrow’s economy. The innovative and green technologies that will form the basis of our future rely on the development and deployment of trusted 5G technology. Our digital infrastructure is already falling behind. The UK lags embarrassingly behind in international comparisons of full fibre roll-out. We are second last in the list of OECD countries, with just 4% of the UK having access to full fibre networks. What Britain needed from this review was not a muddle; we needed a new model for a genuinely world-class digital infrastructure, which we lack at the moment. So this decision must be taken as quickly and transparently as possible, because, whether the Government need to ban Huawei for security reasons or not, the Government have a roll-out target to meet: 5G for the majority of the country by 2027.

We need clarity, one way or another, and the Government should have a plan B for meeting this target if necessary. This review has provided neither. That goes directly against the advice of the Intelligence and Security Committee, which said last week that

“the extent of the delay is now causing serious damage to our international relationships: a decision must be made as a matter of urgency.”

Does the Secretary of State agree?

There are some measures in this review on diversifying the market that are welcome, but this is not an overnight solution, and surely these objectives are best achieved through working with our European partners. Hitherto, the Secretary of State has sought to keep our digital regulation regime in lockstep with Europe. Can he tell us whether the EU is following suit now that the Americans have taken action? If it has not, is he not now concerned that UK digital policy is significantly diverging from that of our closest trading partners?

The situation is indeed complex, as the Secretary of State says. The United States’ recent blacklisting of Huawei has added long-term viability concerns to the existing security considerations. But I am concerned that the future of the UK’s digital infrastructure is being held hostage by transatlantic geopolitics. The question here should be, what is in the UK’s public interest? It should not be, where does this fit into US foreign policy? The British public deserve a trustworthy and modern 5G network that is fit for the future; I fear that, under the new Prime Minister and his Administration, they will get neither.

With your indulgence, Mr Speaker, I will finish on one more point. This could be the last statement that the Secretary of State makes in his current role and, if it is, I would like to put on the record how much my team have enjoyed working with his. I have one phrase for him, from a very great man, who once sang these words:

“For what is a man, what has he got

If not himself, then he has naught

To say the things he truly feels

And not the words of one who kneels

The record shows”—

he—

“took the blows

And did it”

Huawei.

[Jeremy Wright]

The hon. Gentleman was doing so well until the end; I suppose I should be grateful he did not quote:

“Start spreading the news, I’m leaving today”.

First, on the hon. Gentleman’s last remarks, let me say that the feeling is entirely mutual: I have enjoyed working with him and his colleagues. Our constituents expect not just the cut and thrust of debate across this Dispatch Box, which we have also enjoyed, but that we work together where it is appropriate to do so, and I am grateful to him and his colleagues for the spirit in which they have done exactly that.

Let me say a number of things about the hon. Gentleman’s comments on the statement. First, he is right to say that this announcement is about further delay in relation to decisions on Huawei, and I have explained why that delay is necessary. He is entirely right to say that the industry requires clarity and we should seek to give it that. At the moment, we are not capable of offering that clarity, and any decision that we were to take now might end up being different in the future when that greater clarity arrives. It is not a failing of the UK Government that is at work here, but an attempt to understand the actions of the US Administration and the implications of them.

The hon. Gentleman has said that he is concerned to ensure that this should be a decision about the interests of the UK and not the priorities of the US Administration, and I understand that. I can give him the assurance that decisions we take will be decisions in the best interests of the United Kingdom, but he knows that this is a hugely interconnected sector and it simply is not possible to make sensible judgments about telecommunications without recognising those interconnections. What the US Administration do has a significant impact on Huawei, and we have a situation in which Huawei equipment has American components and intellectual property within it. If that equipment is to find its way into the UK telecoms network, of course the actions and decisions of the US Administration are important—hence the necessary delay here.

The hon. Gentleman is also right to say that this is important technology and it can have a huge impact on our economy; he heard what I said about that a little earlier in the statement. He is wrong to say that the fibre roll-out has reached 4% of the country. It has now reached 8%—it was 4% when I arrived in this job and it has now doubled. He is of course also right to say that that leaves us with a considerable distance still to travel. It is important that we do that in a number of ways, with the most important perhaps being to commit fully to a full fibre roll-out: that was a strategic decision that the Government made—again, in the past 12 months.

Finally, the hon. Gentleman makes reference to the discrepancy that there may be in the approach that different EU countries may take. Of course, it would also be right to highlight the approach that other Five Eyes colleague countries may take. A huge variety of approaches is being taken; there is no uniform approach in the EU, with each country taking a slightly different one. The same is true of the Five Eyes nations. We of course want to engage with all our international colleagues, particularly those with whom we discuss these matters on a regular basis, and make sure that we have their input. However, I go back to my earlier comment: in the end, this will be a judgment that we take in the best interests of the United Kingdom.

Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 4th July 2019 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

Perhaps the most difficult part of growing old is the loss of a husband, wife or partner—the person you have shared your every day and every thought with, often over a lifetime. There are nearly 600,000 widowed men and 1.5 million widowed women over the age of 75. An estimated seven out of 10 widows and widowers will lose their free TV licence. That is nearly 1.5 million people who have lost their life partner who will now be stripped of the comfort of their television by this Conservative Government. Can the Secretary of State live with that?

[Jeremy Wright]

The decision that has been made is to transfer that responsibility to the BBC. How the BBC chooses to exercise its responsibility is, as it and we say, its responsibility. The point that the hon. Gentleman makes is a fair one, and it needs to be heard by the BBC as it decides what more it can do to help those who are in particular need or are particularly vulnerable. That is exactly the conversation that I am having with the BBC at the moment, and that we will continue. The decision for the hon. Gentleman is how he intends to back up the pledges that he has so far made to take that responsibility back to the taxpayer, and how he intends to fund that change.

Problem Gambling

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Tuesday 2nd July 2019 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

The whole House is united in supporting the Lionesses in their game at 8 o’clock tonight. The Opposition believe that we must capture the energy created by women’s football; 10 million people will be watching tonight. That is why we think that the next women’s World cup should be added to the “crown jewels” list of free-to-air sport.

I thank the Secretary of State for advance sight of his statement. Last September, Labour announced that we would introduce a 1% mandatory levy on gambling companies to pay for research, education and treatment of problem gambling. We stand by that commitment today: only a mandatory levy will do.

I am glad that the gambling industry has sat up and listened to what we and other campaigners, on both sides of the House, are saying on this issue. Credit where it is due: the big five companies have shown leadership and responsibility, which are sorely lacking in some other parts of the industry. Gambling addiction costs the economy an estimated £1.2 billion a year, yet the amount that the industry currently contributes to treating addiction is paltry.

The voluntary levy, as it currently operates, asks for 0.1% of gambling yield. That target is never met. The industry turns over £14.5 billion a year, yet contributes less than £10 million a year to GambleAware. Some companies contribute amounts that are, frankly, insulting to the voluntary system. SportPesa, which sponsors Everton, and Fun88, which sponsors Newcastle, gave only £50 each last year. Both are white labels of the company TGP Europe. Best Bets gave £5, while GFM Holdings Ltd gave just £1. Given that there are 430,000 gambling addicts, 55,000 of whom are children, that is completely unacceptable and deliberately insulting to those leading players in the industry who are trying to take responsibility. Will the Secretary of State tell us how he will make such companies take more responsibility if not through a mandatory levy?

The Secretary of State for Health and Social Care now supports a mandatory levy; Simon Stevens, chief executive of the NHS, supports a mandatory levy; the Gambling Commission supports a mandatory levy; and Gambling with Lives supports a mandatory levy. However, I cannot quite understand from his statement whether the Secretary of State, who has responsibility for this policy area, supports a mandatory levy—does he or not?

We in the Opposition believe that a mandatory levy is the only way to provide the structure and consistent funding that a proper system of research, education and treatment needs, and with the NHS at the heart of the process. In the announcement today, the so-called big five have said they will fulfil the 0.1% donation to GambleAware, but where will the rest of the funding go? Who or what will establish the proper clinical models and guidelines for service provision? Can the Secretary of State tell us how the Government will ensure that the money does not just go on the companies’ pet projects?

After today, we will still have inadequate regulation and a Gambling Act that is outdated and not fit for the digital age. Gambling companies licensed in the UK are sponsoring UK football teams yet operating entirely abroad, behaving irresponsibly and fuelling addiction in countries such as Kenya. Companies are allowing customers to lose tens of thousands of pounds on multiple credit cards in a single sitting. There are companies that bombard customers who try to self-exclude with advertising emails and offers of free bets, then make them sign non-disclosure agreements when they settle.

The gambling market is broken, and it is up to the Government to fix it. We do not need a voluntary patch, but a full overhaul of rules and regulations. I fear that the Secretary of State and the Government will fail in that task.

[Jeremy Wright]

I am grateful to the hon. Gentleman for some, at least, of what he has said. I reassure him on a number of points. First, as he says, he has always been in favour of a mandatory levy that will raise 1% of gross gambling yield. The commitment being made by the five companies in question this morning is to fund 1% of gross gambling yield, so they are offering him what he has asked for. It seems sensible and reasonable to accept that that is what they are doing; I shall come to his other points about where the money goes in a moment.

It is also right, as the hon. Gentleman says, that the rest of the industry needs to do better—I said as much in the statement. It is important that other companies follow the example set by the five who have spoken this morning. They need to take more responsibility in the way that he suggests. As I have made clear, we do not take off the table a mandatory levy, particularly for those companies that are not prepared to proceed on a voluntary basis as the five now are.

I do not doubt that the reason why those five are proceeding in this way is a result of pressure applied by many in this House, including those of us in government who have met repeatedly with them to make clear what our expectations are and to say that, if those expectations are not met voluntarily, they will be met in other ways. I make the same clear to all those companies that have not yet come forward as those five have.

The hon. Gentleman makes the fair point that people will want to know that the funding goes to the right places and does not simply find itself recycled back into the budgets of the five companies. As a result of what has been announced today, there will now be consultation with the NHS, the Gambling Commission, GambleAware and others on where the funding should go. Those organisations, of course, are best placed to indicate where the funding can best be used. Then, of course, it will be for the Gambling Commission to audit how that spending is distributed so that we all know where it is going and we can all judge whether it has been sent to the right places. If it has not, we reserve the right to continue to act in a different way.

Free TV Licences: Over-75s

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Tuesday 11th June 2019 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

(Urgent Question:) To ask the Secretary of State for Digital, Culture, Media and Sport to make a statement on free TV licences for the over-75s.

[The Secretary of State for Digital, Culture, Media and Sport (Jeremy Wright)]

The BBC is a fundamental part of the social and economic fabric of this country. It is important for people of all ages, but particularly for older people, who value television as a way to stay connected with the world.

The Government recognised the importance of the licence fee when we agreed a funding settlement with the BBC in 2015 to provide the BBC with financial certainty to plan over the long term. We agreed to take action further to boost the BBC’s income by requiring iPlayer users to have a TV licence, and we unfroze the licence fee for the first time since 2010 by guaranteeing that it will rise each year in line with inflation.

In return, we agreed that responsibility for the over-75 licence fee concession would transfer to the BBC in June 2020. We agreed a phased transition to help the BBC with its financial planning as it did so. This was a fair deal for the BBC. At the time, the BBC director-general said the settlement represented

“a strong deal for the BBC”,

which provided “financial stability”.

The BBC is operationally independent, so the announcement yesterday is very much its decision, but taxpayers want to see the BBC using its substantial licence fee income appropriately to ensure it delivers for UK audiences, and that includes showing restraint on salaries for senior staff. In 2017-18, the BBC received over £3.8 billion in licence fee income—more than ever before. The BBC is also making over £1 billion a year from commercial work, such as selling content abroad, which can be reinvested. So we are very disappointed that the BBC will not protect free television licences for all viewers aged 75 and over.

The BBC received views from over 190,000 people as part of its broader public consultation, which sought opinions on a number of options. With a number of proposals on the table, the BBC has taken the most narrowly defined reform option. I firmly believe that the BBC can and should do more to support older people, and I am now looking to it to make clear exactly how it will do that.

[Tom Watson]

We found out yesterday just how little a Tory manifesto promise is worth. I have read these words in the Chamber before, but I will read them again:

“We will maintain all…pensioner benefits, including free bus passes, eye tests, prescriptions and TV licences, for the duration of this parliament.”

No ifs, no buts, no wavering—a promise made in 2017 to voters by the Conservative party.

Today, 3.7 million over-75s find that promise in tatters. They have been betrayed, and it is shameful. The Government have the breathtaking gall to blame the BBC for this mess, but passing the buck will not work. The BBC is not the Department for Work and Pensions. Public broadcasters should never be responsible for social policy. My hon. Friend the Member for Rhondda (Chris Bryant) warned in 2015 that this was a “smash and grab raid” by the Government on the BBC. He was right, and now older people are paying the price. There are 1.8 million over-75s who live completely alone, and they will lose their TV licence because of the announcement. How can the Secretary of State justify that? We cannot means-test for loneliness or social inclusion.

What about the very poorest in our nation who are eligible for pension credit but do not claim it? How will the Secretary of State protect them? Two of the Tory leadership candidates—the former Leader of the House and the Home Secretary—have committed to overturning the decision. Perhaps they know how it will look to the rest of the world when we start jailing pensioners who cannot or will not pay the licence fee.

I would like to share some figures with the House: 4,240 older people in Uxbridge will lose their TV licence; 5,970 people in West Suffolk will be affected; and 6,730—the number in South West Surrey. The right hon. Member for Uxbridge and South Ruislip (Boris Johnson) wants to give a tax cut to the very richest, but he will not lift a finger to defend pensioners. The Health Secretary says he cares about social care, but he will not defend pensioners either. The Foreign Secretary tells us that he cares about the chronically lonely, but he will not defend even the loneliest pensioners. Is it therefore any surprise that the country’s pensioners are asking whether the leadership candidates will honour their word and keep their promise, or break it?

This is a test not just of leadership, but of honour, integrity and truthfulness. Does the Secretary of State agree that someone who cannot keep a promise is not fit to be Prime Minister? It is as simple as that.

[Jeremy Wright]

Well, Mr Speaker, it is not quite as simple as that. The hon. Gentleman knows I have a good deal of respect for his passion and his consistency. I accept that he has always argued that it was wrong to transfer the responsibility to the BBC, but the arguments he makes today were better suited to our debate on the Digital Economy Act 2017. Indeed, he made those arguments then—I accept that. However, the argument was had, a vote was conducted and a result was recorded. Consequently, the BBC has the responsibility for deciding what to do about the licence fee concession. That is a fact.

The hon. Gentleman raised several concerns and I will try to deal with them. First, he is rightly concerned about those who are elderly and lonely. I know that he will recognise that the Government have not relied on the BBC to do something about those who are lonely. We are the first Government to appoint a Minister for loneliness, to have a loneliness strategy and to commit £11.5 million to pay for several programmes under the Building Connections fund. The Government take loneliness seriously and have put our money where our mouth is.

The hon. Gentleman also raised concerns about the poorest pensioners. Let me say two things on that. First, as he knows, the Government have put considerable effort into raising pensioners’ living standards. We have increased the basic state pension by significant amounts. It is today £675 higher than if it had simply been uprated by earnings since 2010. In cash terms, that is £1,600 more for every pensioner. We take seriously the responsibility to look after those who do not have means and are pensioners. Again, we have put our money where our mouth is.

The hon. Gentleman made a good point about eligibility for pension credit. It is important that all those who are eligible claim it. That is exactly what we, too, believe should happen. My colleagues in the Department for Work and Pensions have been working hard on that. I and they expect the BBC to help us in that task by ensuring that, as the opportunity presents itself, people who do not yet claim pension credit but are entitled to it do so. I hope that we will have the hon. Gentleman’s support in that process.

It is important to stick to the facts and not to scare people unnecessarily. It is important to understand that the change will not happen immediately, but next year, and that those who are entitled to pension credit can still have a free TV licence. It is also important to understand that evasion of the licence fee is not an imprisonable offence. It is helpful if we do not mislead people on those points.

I have said that the Government have put their money where their mouth is in looking after the individuals about whom the hon. Gentleman is rightly concerned. The House and pensioners over the age of 75 have a right to expect the same of the Labour party. If the hon. Gentleman wishes to come here and express his outrage about the transfer of responsibility to the BBC and away from the taxpayer, does he accept that it should be transferred back? If so, where will the money come from? He is offering to commit to £500 million of extra public spending. We are all interested to know where it will come from.

Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 23rd May 2019 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

Good morning, Mr Speaker, and my very best wishes to Jemima and all colleagues’ family members in their thespian endeavours, including my daughter, Saoirse, who has just successfully auditioned to play Nancy in the school production of “Oliver Twist”.

UEFA’s inclusion and diversity policy says the following:

“Everyone has the right to enjoy football, no matter who you are, where you’re from or how you play.”

But next week, Henrikh Mkhitaryan will miss the match of a lifetime because he is from Armenia, and Arsenal fans with Armenian names are being denied visas to travel to Baku. This is a scandal. It is a deeply ugly side to the beautiful game, and if I was Secretary of State, I would make it clear to UEFA that it is completely unacceptable. Will the Minister demand that UEFA ensures that countries that force players to choose between their sport and their safety and that discriminate against travelling fans will never be allowed to host future events?

[Jeremy Wright]

The hon. Gentleman is right: if football is to be for everyone, and we all believe that it should be, that should apply to football in our own country and to football in places where we want our fans to be able to travel. It is important that we engage with UEFA, as we have been doing, to send the very clear message that places where football travels to should be welcoming to those who support football, and politics should have nothing whatsoever to do with it.

There is, as the hon. Gentleman says, the related challenge of whether British fans who are of Armenian descent are able to have a visa to travel to Azerbaijan. That is something that my colleagues in the Foreign Office are picking up, because it is important that all those who want to travel to support their team should be able to do so. If they cannot, football is not achieving what it should.

--- Later in debate ---

[Tom Watson]

A woeful ticket allocation means that the vast majority of fans will not travel to that match or, indeed, to the Champions League final, because UEFA has favoured corporates over fans. Will the Secretary of State condemn UEFA with me today? On this day when the House is divided over Europe, can we unite to condemn UEFA for its disgraceful treatment of football fans?

[Jeremy Wright]

The hon. Gentleman is right that there are not enough tickets available for fans, either on Saturday or next week in Azerbaijan. I think we can agree that as many people who are passionate about their team as possible should have the chance to see them succeed and compete on the European stage, just as they can on the national stage. We believe that it is important to say to UEFA that that is a message we all support. I am grateful to the hon. Gentleman for raising it, so that we can communicate that message with clarity.

It is important that we spread the benefits of the major European competitions around Europe. I do not believe it is right that they should be held in only a small subset of European countries. There are huge economic and sporting benefits to be derived from them, and countries should have access to those benefits, but only if they are prepared to give access to passionate football supporters.

Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 11th April 2019 Commons Chamber

[Jeremy Wright]

I very much agree with my hon. Friend. It is extremely important that youth organisations, particularly the uniformed youth organisations that he describes, have the opportunity to do their important work, which includes helping young people to stay away from knife crime. How they choose to approach that is, of course, a matter for local authorities, but my hon. Friend will know that the Government have ensured additional funding for uniformed youth organisations which, in our view, is the right thing to do.

[Tom Watson (West Bromwich East) (Lab)]

Mr Speaker, it is great to see you looking so jolly this morning.

Yesterday, I met a young woman who racked up a crippling debt of over £100,000 using nine different credit cards in just two days while gambling online. The operators that took her bets, LeoVegas and Casumo, should be held responsible for their disgraceful conduct. Will the Secretary of State agree to meet the young gambler? Does he agree with me that it is time to ban credit card gambling? No one should go into debt to place a bet.

[Jeremy Wright]

I have a good deal of sympathy with what the hon. Gentleman says and huge sympathy with those who find themselves in the position of the individual he describes. I will of course meet her. Indeed, I will try to meet others who have been affected by this kind of gambling. It is important that not just gambling companies but all of us take an interest in the way in which this kind of problem gambling is developing. It is very clear that those who are gambling with money they do not have find themselves very quickly in very serious trouble. He will know that the Gambling Commission is at the moment looking at the specific question of gambling on credit. That is a process we have encouraged. I look forward very much to its conclusions. The Government intend to take action on the back of what it says.

Online Harms White Paper

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Monday 8th April 2019 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

I thank the Secretary of State for his courtesy in giving advance notice of his statement. I also thank the members of the Digital, Culture, Media and Sport Committee for their meticulous work, much of which has made it into today’s document.

Let me outline what I think is at stake. We are at an inflection point in technological and human advance. Data can transform this planet almost beyond our current comprehension. The ideas of John von Neumann, I.J. Good and Ray Kurzweil tell us how accelerating intelligence and artificial intelligence can lead to a technological singularity. On health, for example, it will allow humans to take control of their own cellular biology; cancer patients worldwide will be able to share their data for the common good.

At the heart of this revolution, however, is a public policy question about the legitimate use of our personal data. That legitimate use has been imperilled because a couple of early big data pioneers distorted the market by making crazy amounts of money from targeted advertising and then protecting their market dominance.

These past months, this House has felt more divided than at perhaps any time in our recent history, yet one person and one cause has united elected representatives of all parties throughout the House—Mark Zuckerberg and the urgent need to bring social media giants into line.

It feels like we are living in a digital dystopia: a nightmare where a young girl commits suicide after being exposed to images of self-harm on Instagram; a business model where a massacre can be livestreamed on Facebook and the video shared thousands of times on YouTube; and a horror where a teenager is groomed in an online gaming community and then murdered in cold blood.

These companies are making billions extracting and monetising our personal data, and what do we get in return? Harms, hate speech and fake news filling our timelines and the minds of young and vulnerable people. It is no wonder that New Zealand’s privacy commissioner called the executives of Facebook “morally bankrupt pathological liars” after the company refused to acknowledge any need to change its policies following the Christchurch mosque attacks. I cannot disagree with him.

We found out today that Google avoided £1.5 billion of corporation tax last year. That could have paid for 60,000 nurses for our NHS. This from a company with a net worth of £645 billion. The abuses and harms perpetrated online represent one of the toughest social policy challenges of modern times. It is our duty, as elected representatives and policy makers, to rise to that challenge, and it is to the Secretary of State’s credit that he has clearly taken that duty seriously today.

Labour has already committed to many of the announcements in this White Paper. An independent regulator, a legal duty of care and a tough sanctions regime will support the Government in introducing these measures, but I have no doubt that the industry will fight back. The tech giants are certainly gearing up for a fight, hiring an army of lobbyists who I expect will be in touch with each of us very soon. I hope we can all make a commitment now that these measures will be the minimum standard of regulation and that we will not resile from any of the report’s recommendations.

There is much in this White Paper to be commended, but we also have concerns. Our biggest fear is that the announcements will take months, if not years, to come to fruition. When terrorists are recruiting, children are being exploited and disinformation wars are being waged online, we do not have time to spare. We need action now. Will the Secretary of State commit to bringing forward the legislation on the new regulator in the next parliamentary Session?

There is nothing in this report about protecting our democracy from dark third-party political advertising and those who wish to sow disinformation and discord. Even Mark Zuckerberg has said that Governments need to introduce regulation to protect electoral integrity. Does the Secretary of State admit that this White Paper fails to do that?

The duty of care codes and the codes of conduct sound like very important steps, but the devil will be in the detail. For example disinformation, such as anti-vaccination propaganda, is being spread unchecked in closed groups on Facebook, contributing to a burgeoning public health crisis. Will the Secretary of State explain how this White Paper might tackle that?

Underlying all the harms, hate and fake news on social media platforms is one central, fundamental problem: the distorted digital market dominated by a small number of data monopolies. These companies surveil our every like and share, extract our data and sell it on to advertisers 10 times over. They are hoovering up companies big and small, suppressing competition and innovation. They are now so dominant that they think themselves too big to fail—untouchable by mere national Governments.

We agree with the Secretary of State that this is only the start, and we respect what is in this White Paper and will work to help deliver it, but the truth is that, until we deal with the fundamental issue of data monopolists dominating the market, we will never really see the end of this digital dystopia.

[Jeremy Wright]

I am grateful to the hon. Gentleman not just for what he has said this afternoon but for the open approach he has taken to the discussion of these matters. As he says, this is one of the toughest policy challenges we face, and I believe we will resolve it only if we are able to work across the House to make sure that what we produce is as robust as it can be.

As the hon. Gentleman also says, there will be a considerable amount of resistance to what is proposed in this White Paper, and we will all need to hold our nerve in the face of that pressure. He asks about legislation, and it is our intention to legislate in the next parliamentary Session, but he will understand that there is a tension between the urgency, which we all accept exists, to tackle these harms and, indeed, to legislate to do so and the need to make sure that we have taken account of the views and the thinking that others can contribute. He knows that I have sought to do that up to this point, and I will seek to do it from this point on. I want to ensure that we make this as robust as we can, that we get it right, that we have understood the detail, and that it will stand up to the kind of scrutiny and pressure that he rightly describes. With that tension in mind, we will move as quickly as we can.

On electoral integrity, the hon. Gentleman heard me say a moment ago that the White Paper does not represent the sum total of the Government’s action in relation to harms on the internet more broadly. He will know that the Cabinet Office will imminently be bringing forward its “defending democracy” piece of work. I hope he will find in that a good deal of the material he referred to. Indeed, while a good number of the Government’s responses to the excellent piece of work produced by the Digital, Culture, Media and Sport Committee are, as he said, dealt with in the White Paper, some will be dealt with in that document.

Disinformation is, as the hon. Gentleman knows, one of the harms that we have identified in the White Paper as needing the attention of the regulator. We believe that a number of things can be done. We will expect the regulator, in its codes of practice and through the duty of care more broadly, to focus on the need to ensure that authoritative sources are prioritised over non-authoritative sources and that fact checking is available. There are other measures that the regulator could take, not least in respect of the point I made about public education. In relation to many of the issues on which disinformation is focused, we believe that the answer, at least in part, is to ensure that our fellow citizens are equipped with the skills they need to understand what they should be looking for to determine what they believe and what they do not. That is a legitimate focus for the regulator.

Finally, the hon. Gentleman mentioned competition, and I understand his focus on that. Again, I make the point that it will be dealt with, but that it will be dealt with elsewhere. He will know about the Furman review, which was recently completed at the Government’s instigation. We will take seriously what Professor Furman and his panel have said, and we will respond in due course. When we do so, the hon. Gentleman will have the opportunity to take the matter up again, and I know he will.

Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 7th March 2019 Commons Chamber

[Jeremy Wright]

Yes. The hon. Lady makes a good point, and I think that we should ask questions about this. It is profoundly unacceptable that material such as this should be available to young people, and older people, and we must worry about the sense it creates of proper relationships and the way in which these types of activity should be regarded by any fundamentally decent society. Of course, we must understand exactly how it has got to this point in relation to this game. As I have said, I welcome the fact that the game has been withdrawn. I think we would all have been having a very different conversation this morning if it had not been.

[Tom Watson (West Bromwich East) (Lab)]

Every major social media platform other than YouTube has taken down Stephen Yaxley-Lennon’s profile because of his hateful conduct. Late on Monday night, Yaxley-Lennon turned up at a journalist’s home and banged on the doors and windows demanding to be let in. After being escorted away by the police, he returned at 5 am and continued his intimidation. The incident was live-streamed. He later warned journalists in a YouTube video to expect a “knock on the door”. Does the Secretary of State think it is right that YouTube and its parent company Alphabet are continuing to give this man a platform?

[Jeremy Wright]

In this House, we all believe in freedom of speech, but we also believe that that freedom of speech has limits, and that when people seek to intimidate others, and potentially to break the law—the description that the hon. Gentleman has given the House this morning is potentially a description of criminal behaviour—it is unacceptable. It is beyond the reach of the type of freedom of speech that we believe should be protected. As I have said, all internet companies and all platforms for this kind of speech need to take their responsibilities seriously, and I hope that YouTube will consider carefully what the hon. Gentleman and I have said, and reconsider its judgment.

[Tom Watson]

I thank the Secretary of State for that answer. Those who have expressed their opinion online will know that doing so can unleash a torrent of abuse designed to make them wonder whether they should speak out at all. This week we have heard of female colleagues having panic buttons installed in their homes because of the death and rape threats they have received. This culture of abuse, intimidation and threats undermines our democracy and the principles of free speech. Will the Secretary of State consider, and even guarantee, that the online harms White Paper will introduce measures to prevent hate figures, extremists and their followers from turning the online world into a cesspit of hate?

[Jeremy Wright]

I will of course consider what the hon. Gentleman has said, but we must ensure that we preserve our ability, online as everywhere else, to debate and discuss issues that are sometimes uncomfortable and certainly controversial. I repeat, however, that no freedom of speech can survive in this country if we do not protect people’s ability to feel free to say what they think, free of intimidation and free of the threat of violence. Those who engage in intimidation or threats of violence should not find succour online or anywhere else.

Cairncross Review

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Tuesday 12th February 2019 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

I thank the Secretary of State for giving me advance sight of his statement. I also thank him for his warm words about the late Gordon Banks, who was not only a great goalkeeper—perhaps the greatest ever to wear three lions—but a true gentleman. Not everyone will know of his contribution to civic life in the Potteries and in Staffordshire as a whole, from support for veterans to dementia care. To the people of Staffordshire, he was not just a sporting hero but a community hero. He will be greatly missed.

As the Secretary of State said, the release of the Cairncross report is a milestone—a small milestone—on the road of our enormous task of addressing digital and news publishing. Finding the right solutions requires creative policies and cross-party partnership, and Opposition Front Benchers are ready to work with the Government where we can. I thank the Digital, Culture, Media and Sport Committee for the rigour of its ongoing work in relation to the harms caused by digital disruption. I look forward to reading its next report, and I commend its Chair, the hon. Member for Folkestone and Hythe (Damian Collins), for maintaining a determined cross-party unity of purpose in the face of corporate obfuscation from companies such as Facebook.

As we have heard, this review addresses an urgent issue: we have lost 6,000 frontline reporter jobs since 2007; newspaper circulation rates have fallen by half; 350 local news titles have closed; and half of Britons are now worried about fake news. Meanwhile, the emerging tech companies continue to increase their bottom lines with ever-increasing advertising revenues, extracting value from content produced by others while taking little responsibility for the destruction they leave in their wake.

Some of the review’s recommendations in this regard are particularly welcome. We said last summer that Labour would extend charitable status to public service journalism, so I am pleased to hear that the Secretary of State has today written to the Charity Commission to pursue that further. We have also publicly supported increased media awareness courses and reporter training schemes, and I am glad to see that the Government might soon be adopting that approach as well. But in other areas I am afraid that the review is barking up the wrong tree.

I understand that the Secretary of State is duty bound by this report to write to Ofcom asking for an assessment of BBC News Online’s market impact, but that could be counterproductive, because while local titles are closing it is the BBC that produces exactly the sort of public interest and publicly trusted content that the review was designed to encourage. Does the Secretary of State therefore agree that it will be a big mistake if the Government choose to pick a fight with the BBC over this, or to raid its budgets even further, rather than tackling the real problem: a distorted digital market?

It seems to me that the problem is clear: savvy tech platforms have developed targeted behavioural advertising that allows companies to direct their products towards certain audiences. Only they can do that, because the data needed to segment markets is overwhelmingly owned by emerging data monopolies, so the only way to reach consumers is through a decreasing number of digital giants. This is all part of surveillance capitalism.

Mergers and acquisitions by digital giants have meant that over half of all digital advertising revenues in the UK are now hoovered up by two companies, Google and Facebook. This is a duopoly. It is the main cause of the 70% reduction in print advertising revenues that has hit newspaper bottom lines so hard, and the dominant position of these social media giants means that in negotiations with news publishers they do not play fair.

I understand that this is a difficult problem to solve: these are global companies so big that they see themselves as being above the law. So let me say to the newspaper industry that I know the situation looks bleak, and it may be disappointed that there are not harder recommendations in this review, but even in these dark days of Brexit and increasing division in politics there is one man who is uniting this House: Mark Zuckerberg. He insulted us all when he refused to attend the Select Committee on Digital, Culture, Media and Sport. He may think that the UK market and our institutions are not a priority for him, but I hope he knows there is now a new resolve that transcends our party differences to deal with abuses by his company and others.

I appreciate that the Secretary of State has asked the Competition and Markets Authority for a market study of digital advertising, but does he agree that this review was actually tasked with looking at that in its terms of reference? It is not his fault that the review has ducked this part of its responsibilities, but the reality is that commissioning the CMA to look at this kicks the can down the road again.

We need a bolder, quicker approach. Having looked at this problem for a couple of years now, I think there is a position and a process that we could all coalesce around. First, we need to address the immediate symptoms of market abuse caused by the data monopolies: the harms, the hate, and the fake news. To do that we need a new duty of care obligation on social media companies, enforced by a tough new regulator. Last week a Minister indicated that the duty of care could be enforced by criminal sanctions, not just civil penalties, if companies are found to be in breach. Can the Secretary of State confirm that the Government are considering this?

Secondly, we must address the root cause of the problem, which I believe is a distorted digital market. A review by the CMA is all well and good, and we welcome it, but we need to modernise competition laws to make them fit for the data age to really address abuse in the digital market.

Thirdly, once we have dealt with the symptoms and the causes of the problem, we must improve the health of our digital markets by shaping a digital public sphere to bolster our media sector and protect our democracy. I envisage an online sphere where citizens can access trustworthy news from professional reporters and researchers, content from public institutions, central and local government and public service broadcasters, and public services like our great galleries and collections without being surveilled or targeted by advertisers and having to give up their personal data to transact for services. I hope we can commit today to take our lead from the Digital, Culture, Media and Sport Committee and work in a spirit of unity to deal with the destructive dominance of the tech giants.

[Jeremy Wright]

I am grateful to the hon. Gentleman for his comments. I also welcome his undertaking to work with us; there is undoubtedly a broad measure of agreement across the House, and it would be sensible for us to work together. I also agree with what he said about the Select Committee’s work in this space, and we all await its further and final report on the issue of misinformation, which is due imminently.

On the BBC, the hon. Gentleman mentioned two aspects of what the review says. The first was the issue of market impact and the BBC. As I said in my statement, without prejudging the outcome I think it is appropriate to invite Ofcom to see whether more can be done here. I do not imply criticism in that request, but it is sensible for me to follow through on that recommendation of the review. But as the hon. Gentleman will recognise, the review also congratulates the BBC, and indeed the News Media Association, for the development of the local democracy reporter scheme and suggests that it may well be expanded. Again, it would be right for us to pursue that, and it is a recognition of the positive contribution the BBC is making in this space.

The hon. Gentleman also talked about the dominance of Google and Facebook, and that is undoubtedly a stark feature of the review. It is sensible to follow through on the review’s recommendation to involve the CMA, as it clearly has a role in determining whether the processes over which it holds sway are being appropriately applied, but I do not believe we should stop there, which is why I intend to begin a Government-centred review of the broader policy implications surrounding the online advertising market. That will follow on from the Furman review of competition issues which is already under way.

The hon. Gentleman mentioned the work the Government are doing on online harms, and he knows that we are considering a number of the issues he has mentioned, including of course the penalties that ought to be available when online platforms that have understood their responsibilities choose none the less not to exercise them. He also knows that I am committed to ensuring that those penalties are meaningful. He will forgive me for asking him to wait a little longer for the detail, but we will publish the White Paper shortly.

Finally, I agree entirely with what the hon. Gentleman says about the importance of trustworthy news. It is fundamental to our democracy and our society that we can trust what we read, and that there is a means whereby citizens of this country can read proper and informed scrutiny of what those in power are doing. That applies at both national and local level. The purpose of the Cairncross review was always to make a substantial contribution to that debate and to offer some ways forward. I believe it has done that; I have not suggested, and neither has Dame Frances, that it presents all the answers to these very complex problems, but they are problems with which we are right to wrestle as a democracy, and we are right not to let go of the importance of the scrutiny we are all rightly subject to.

Leaving the EU: Mobile Roaming Charges

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 7th February 2019 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

(Urgent Question): To ask the Secretary of State for Digital, Culture, Media and Sport if he will make a statement on mobile roaming charges abroad in the event of a no-deal Brexit.

[The Secretary of State for Digital, Culture, Media and Sport (Jeremy Wright)]

Delivering a negotiated deal with the EU remains the Government’s priority, and that has not changed, but I am sure the House will agree that we must prepare for every eventuality, including a no-deal scenario.

For that reason, we have taken a number of steps as a Government, working with businesses, consumers and devolved Administrations, to make sure that we deliver the best possible outcome in the event of no deal. The Government intend to legislate to make sure that the requirements on mobile operators to apply a financial limit on mobile data usage while abroad is retained in UK law. The limit would be set at £45 for each monthly billing period, which is the same limit that is currently in place. We would also legislate to ensure that customers receive alerts at 80% and 100% of their data usage so that all users can carefully manage that data usage. These would mean ongoing clarity and certainty for consumers.

I know that there is also a concern on the island of Ireland about the issue of inadvertent roaming. This is when a mobile signal in a border region is stronger from the country across the border. The Government intend to retain through UK law the EU roaming regulation provisions that set out how operators must make information available to their customers on how to avoid inadvertent roaming.

The Government are working hard to make sure that everyone is prepared and ready for all outcomes, and I encourage all businesses to read our technical notice, which we published last summer, on mobile roaming in the event of leaving without a deal. We should be clear, however, that surcharge-free roaming for UK customers may continue across the EU as it does now, based on operators’ commercial arrangements.

Leaving without a deal would not prevent UK mobile operators from making and honouring commercial arrangements with mobile operators in and beyond the EU to deliver the services that their customers expect, including roaming arrangements. The availability and pricing of mobile roaming in the EU would be a commercial question for the operators, and many of them, including those that cover more than 85% of mobile subscribers, have already said that they have no current plans to change their approach to mobile roaming after the UK has left the EU.

I hope the steps that I have set out today will reassure the House that the Government are committed to a smooth and orderly transition as we leave the EU. In our telecoms sector, as in all sectors, we are making plans for all outcomes as we leave the EU. That is the role of a responsible Government, and that is what we will continue to do.

--- Later in debate ---

[Tom Watson]

Yesterday, while my team was mapping out a potential cross-party approach to tackling the online harms caused by surveillance capitalism, what was the Secretary of State doing? He was trying to slip out a policy change of national significance that clearly warranted an oral statement to the House. We must thank the HuffPost website that the Government did not manage to sneak it out without scrutiny at the Dispatch Box, and we must also thank you, Mr Speaker, for granting the urgent question.

When mobile roaming charges were scrapped in 2017, it was a great day for consumers. Tens of millions of British holidaymakers travelling to EU countries were told that they were able to “Roam Like Home”. Before then, many had been burnt by huge and unexpected bills for trying to access their emails or sending pictures to their families back at home. As a nation, we were spending a third of a billion pounds just to use our mobiles on holiday. It was so bad that in 2016, the then Minister for the Digital Economy, the right hon. Member for Wantage (Mr Vaizey), said that

“by realising these changes, we’re going to save British consumers millions of pounds a year.”

Today’s announcement shows once again that this particular Secretary of State and this particular Government will cave in to the lobbying might of telecoms companies rather than listening to the voice of consumers who are set to lose out. He said that mobile phone operators had said that they had “no plans” to raise roaming charges, but he and I know—and, more important, voters know—what that phrase really means.

The reason the EU introduced free roaming in the first place was the fact that the telecoms companies could not be trusted to give consumers a fair deal, so let me ask the Secretary of State some questions. Why has he decided that the price of no-deal Brexit is better paid by consumers than telecoms companies? What binding commitments has he asked companies to give to ensure that consumers are not hit by high roaming charges in the event of a no deal? Can he guarantee that if, by luck or by skill, the Prime Minister gets her deal through, consumers will not pay roaming charges in future? When has he summoned the telecoms chief executives to talks at the Department, and if he has not done so, will he do so this weekend to ensure that consumers can receive their guarantees?

This is how holidaymakers have been hit by Brexit chaos. First, the value of the pound has plummeted, thus increasing the cost of family holidays. Secondly, we will have to pay for visas to travel to the EU. Thirdly, we will be hit by a Brexit bill to use our mobiles abroad. If the Secretary of State does not want to go down in history as the Minister for the Tory triple whammy tourist tax, I suggest that he adopts a different course.

[Jeremy Wright]

The hon. Gentleman expressed a commendable interest in my diary for yesterday. Let me remind him that I was having meetings on the subject of online harms, which he and I had discussed on what I thought was a cross-party basis some time before he made his speech yesterday. I was also spending some time discussing problem gambling with the banks and with the all-party parliamentary group on gambling related harm, which is led by his hon. Friend the Member for Swansea East (Carolyn Harris).

I know that the hon. Gentleman cares about both those subjects and would wish me to spend time on them, but he need not worry, because I have also been spending some time on this subject. Having done so, I can tell him that it will be discussed by this House because this is an affirmative statutory instrument. The Government have set out their view that it should be an affirmative statutory instrument, which will give the House an opportunity to debate this subject, so the hon. Gentleman or one of his colleagues will be able to discuss the matter in some detail when that debate is reached.

The hon. Gentleman says that we are caving in to the mobile phone operators, but the reality is that when we leave the European Union—that is what is going to happen, because the Government and the Opposition, if I understand their current position correctly, intend to respect the outcome of the 2016 referendum—it will not be possible for the UK Government to force our rules and expectations upon EU mobile phone operating companies. So if those companies choose to charge British mobile network operating companies at a wholesale level, one of two things will happen: either that cost will be passed on to those who are using their mobile phone abroad, or it will be spread across all mobile phone users on that network. That is the choice.

The decision we have made is to ensure that consumers are given the best possible protection in the event of leaving the EU with no deal. I have made it quite clear that that is not the Government’s intention, however. We worked very hard to get a deal, and we would be grateful for the hon. Gentleman’s help on that, but it is important to recognise what we can do and what we are doing. We are making sure that those elements of the current EU regime that can be transferred into domestic law are transferred into domestic law. Making sure that consumers cannot spend more than the amount that is currently provided for in EU law without understanding that they are doing so is an important consumer protection, as is letting people know how much of their data they have already used. That is what we can do, and that is what we should do in the event of no deal.

If the hon. Gentleman is concerned, as I am sure that we all are, to avoid some of the unpleasant consequences of no deal, the good news is that he can help. He and his colleagues can vote for a deal. We are still waiting for the Opposition to take a responsible position on avoiding the no-deal consequences that they come to the House to complain about.

Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 31st January 2019 Commons Chamber

[Jeremy Wright]

I of course would wish to say that I am sure that my hon. Friend is being unfair to our former colleague, but I can tell him that I spoke to Sir Nick last week and I am happy to tell the House what I told him, which is that when the White Paper is published he and everyone else, including Facebook, will see that the Government’s intent is to set out with clarity what the responsibilities of online companies like Facebook are, how they should meet those responsibilities and what will happen to them if they do not.

[Tom Watson (West Bromwich East) (Lab)]

I agree with the Secretary of State that the White Paper should provide remedies for dealing with hate speech; the real test will be whether it protects our children. Last week, we heard of the tragic case of a young girl taking her own life after being exposed to harmful material about depression and suicide online. This week, we have learned that online bullying has doubled. If I got to talk to Nick Clegg, I would tell him that, rather than focusing on protecting children, Facebook and others are focused on profiting from children. This morning, the Science and Technology Committee has called for a legal duty of care on social media companies, and we support that important report. Will the Secretary of State confirm that he supports that call, and will he state explicitly that it has to be underpinned and enforced by a regulator that has teeth?

[Jeremy Wright]

I am grateful to the hon. Gentleman for what he says about Molly Russell and others who have been affected. As he knows, she is sadly not the first of these cases and she is unlikely to be the last. I should like to take this opportunity to pay tribute also to her father, who I am sure the whole House would agree has not only dealt with his loss with immense dignity but sought to ensure that that loss was not in vain and that people will make the changes that we all agree are necessary.

On the point about a duty of care, the hon. Gentleman knows, because we have discussed it, that this is something we are considering carefully. We are also keen to ensure that whatever structures the White Paper sets up can be enforced. Although it is right to point out that some social media companies have done some things in this space that we should applaud, it is clear that there has been nowhere near enough activity yet, and it would be wrong to assume that this House or this Government can sit back and allow the social media companies to do this voluntarily, so there will be further action, and the hon. Gentleman will see it set out in the White Paper. I look forward to his comments and the House’s reassurance on this; we will want to hear what everyone in the House and beyond has to say. As I said earlier, this is ground-breaking stuff and the UK should be proud to be able to do it first, but we must do it right. That means that the views, opinions, knowledge and expertise of many more must be included in the process.

Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 13th December 2018 Commons Chamber

[Jeremy Wright]

The hon. Lady makes a fair point about means-testing, and whenever means-testing is proposed, that consideration must be accounted for. The right approach is to allow all those who wish to do so to comment on those consultation options, and for the BBC properly to consider them and decide what to do next. That is now its responsibility. The Government’s expectation is clear as, I suspect, is that of many Members across the House.

[Tom Watson (West Bromwich East) (Lab)]

Mr Speaker, this will probably be the only chance I get to wish you, your family and the staff of the House a happy Christmas. We are very grateful for the work you have done for us this year. Thank you. I welcome the Under-Secretary of State for Digital, Culture, Media and Sport, the hon. Member for Eastleigh (Mims Davies), to her new position. I am sure she will fill the big shoes.

The Campaign to End Loneliness found that four in 10 older people say that television is their main company. That is a sad Christmas story indeed. Is the Secretary of State aware of how many older people in his constituency are set to lose their free TV licence if the provision becomes linked to pension credit?

[Jeremy Wright]

It will not be my last opportunity to wish you a happy Christmas, Mr Speaker. I will get to that later.

I am sure the hon. Gentleman is about to tell me the answer to the question he has just asked, which of course supposes a certain outcome to the consultation and the decision-making process at the BBC. I do not think we should make that supposition. It is right for the BBC to consider its options. It is now its responsibility to decide what to do on this matter. It is right for it to consider its options and then propose what it wishes to do. We will all have the opportunity to contribute to that discussion. I know he will do so, and I will too.

[Tom Watson]

As the Secretary of State does not know the answer I will tell him, because I think he needs to know: 6,060 households in his area could lose their free TV licence if it is means-tested. Many thousands of people in Kenilworth will lose their TV licence despite a Tory manifesto, on which the Minister stood for election, promising that a Tory Government would maintain all pensioner benefits, including free TV licences for everyone over 75. The Government may have devolved welfare cuts to the BBC, but the Secretary of State will not be able to devolve responsibility for this impending policy disaster. Will he now admit, on the record to this House, that the Government have broken a manifesto pledge and he has broken his promise to all those people in his constituency?

[Jeremy Wright]

No, of course not, because that has not happened. Let me just say again to the right hon. Gentleman that he is positing a hypothetical situation. It has not happened. It is important that the BBC gets the chance to consider the right way forward. All that he says about the importance of television to those who are elderly, particularly those who are lonely, is quite right, but no decision has been made yet. It is right to give the BBC the space in which to make it. That is the right way forward.

Johnston Press: Administration

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Monday 19th November 2018 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

(Urgent Question): To ask the Secretary of State for Digital, Culture, Media and Sport if he will make a statement on the impact of Johnston Press going into administration.

[The Secretary of State for Digital, Culture, Media and Sport (Jeremy Wright)]

As the House will know, on Friday Johnston Press confirmed that it was going into administration. Johnston Press has debts of £220 million that were due to be repaid in June next year. It operates, as the House knows, titles at local, regional and national levels. It has explored a range of refinancing options over the past 18 months, including a debt-for-equity swap with bondholders. In October, it entered into a formal sales process, but no suitable buyer was found. On Saturday, it was announced that the newspapers and assets owned by Johnston Press would be acquired by JPI Media, a new consortium established of Johnston Press creditors. JPI Media has said that the operation of the newspapers and websites will continue. It has also said that the debt will be reduced to £85 million, repayable by the end of 2023, and that it will be injecting £35 million into the company to help it operate, including supporting the transition to digital. It has also released a statement saying that the situation will have an impact on employees and pension holders on the defined pension scheme, and that it is working through what this will mean for about 250 current members of staff who are impacted. The Pension Protection Fund has been notified. As the House knows, this is a fund set up by the Government to provide pension benefits to members of defined-benefit schemes whose sponsoring employers have become insolvent. The PPF, with the assistance of the trustees of the scheme, will assess whether the scheme needs to enter the PPF.

Over the weekend, I spoke to David King, formerly the chief executive of Johnston Press and now the chief executive of JPI Media, and today I spoke to its head director. They set out that they believed this move was the best course of action for the long-term future of their staff and titles and that the only alternative would have been liquidation and redundancies. Like Members from across the House, I am committed to a vibrant and free press. Johnston Press, with more than 200 titles and 2,000 staff serving communities across the UK, plays a significant part in that—three of these titles serve my constituency. Its future sustainability is therefore very important to us all.

My deepest sympathies are with anyone who is facing uncertainty as a result of the changes. However, it is important to note that the takeover may come under the rules as set out in the Enterprise Act 2002. Under that legislation, where it appears that a relevant merger or takeover situation arises, the Secretary of State can consider, in a quasi-judicial capacity, whether it raises media public-interest considerations. As such, I am sure that the House will understand that at this stage I will not set out any views on the impact of this specific transaction.

What is clear is that this is an example of the challenges faced by the newspaper industry more broadly and in particular of the challenges faced by local papers. Such papers help to bring together local voices and shine a light on important local issues, in communities, courtrooms and council chambers. It is clear, though, that such papers have to make difficult decisions to try to adapt to the changing market. At this challenging time for print journalism, we are working hard to ensure its sustainability. In March, we launched an independent review, chaired by Dame Frances Cairncross. It will look into how the production and distribution of high-quality journalism can be sustained in a changing market, with a particular focus on the online space. Dame Frances’s report and recommendations will be published early next year. Next week, the Minister for Digital and the Creative Industries will host an open session with Dame Frances, so that Members of this House and of the other place can share their views on these important issues.

At national and local levels, a press that can hold the powerful to account remains an essential component of our democracy. That is what this Government are working to support.

[Tom Watson]

I, too, spoke to David King this weekend. Like many right hon. and hon. Members from Government and Opposition parties, I was alarmed at the plans for Johnston Press to go into administration. This centuries-old British company has more than 200 newspapers that report vital local, regional and national news and hold the powerful to account. Although, as the Secretary of State says, the buy-out by JPI seems to have averted the imminent closure of those publications, their long-term future, and that of hundreds of jobs, is far from certain.

This is part of a bigger, long-term global strategic question: in this digital age of information abundance, how can local democracy be preserved through quality local journalism? Since 2005, 200 local newspapers have closed and we have lost half all local journalists. For 10 years, we have seen the impact of digital disruption on local journalism. After eight years of the current Administration, all we hear is the Secretary of State referring to a process that they currently articulate as the Cairncross review.

Whilst Ministers prevaricate and hold open sessions, the tech oligopolies have consolidated their media advantage by dominating digital ad revenues. They continue to avoid fair taxes and will pay less once the Government’s corporation tax cuts are introduced under the Finance Bill. Some have even allowed criminal data breaches on their platforms. Worse still, they sneer at Parliaments around the world that try to hold them to account. I remind the House again that even Rupert Murdoch showed greater respect for our democratic institutions than Mark Zuckerberg, who refused to appear before our Digital, Culture, Media and Sport Committee.

Specifically on the Johnston Press, which is a victim of the long-term strategic changes in the media market that the Secretary of State’s colleagues, including the Parliamentary Private Secretary, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), who is chuntering from a sedentary position, seem to think are funny—

[Tom Watson]

Or the hon. Member for Mid Worcestershire (Nigel Huddleston), sitting next to him, then.

Will the Secretary of State confirm that no one currently on a pension from Johnston Press will receive a shortfall in payments? Will the Government step in if they are going to? Will the pension regulator assess what obligation the new entity has to those employees set to lose out?

I understand that JPI Media was apparently established back in September. When was the Secretary of State made aware of that, because, clearly, the writing was on the wall for Johnston Press when the new entity was established, and what meetings has he or his ministerial team had since the creation of JPI Media, to protect the interests of Johnston Press workers?

There is a crisis in local newspapers that we have known about for many years and that, whatever our politics, it is all our civic duties to address. The Secretary of State has been in post for only 134 days. In that time, he has overseen the resignation of a respected Minister, made an obvious and humiliating policy climbdown on fixed odds betting terminals, while ignoring what everyone knew would be the inevitable crisis in local news. He should have given a statement to the House today, not been dragged here to give a woeful answer in an urgent question. After 134 days in post, he needs to wake up and stop sleeping on the job.

[Jeremy Wright]

Let me start by agreeing with the hon. Gentleman that this is indeed a long-term problem that requires some long-term solutions. As he rightly says, local papers have been closing since 2005, but, if my memory serves me correctly, it was not my party in government in 2005; it was his. It really will not do for him to bring what is a serious issue—and a long-term one, as he says—to this House and try to make it into a bit of political point scoring against the current Secretary of State. I do not mind, but those who are affected by these changes will want to hear something a little more constructive from him and the Labour party.

Let me answer the pensions question. The hon. Gentleman asks me about current pensioners. As far as I understand it, they will not be affected. Anyone in receipt of their pension now will continue to be paid. The changes will affect those who are currently in employment, and we believe that there are 250 or so in total.

The next point that the hon. Gentleman makes is that this problem was apparent for some time. He is right, of course, and, as I said in my response to him, the problems affecting local media have been apparent for some time. They are structural problems, which is precisely why we believe that the right approach to take is to ask for an independent assessment of those structural problems, which Dame Frances Cairncross is carrying out and which will be completed shortly. When it is, we have asked Dame Frances to give clear indications of what she believes the answers may be so that we can consider what action a Government can properly take. That is the right approach to what is a structural and long-term problem, as he says.

In answer to another of the hon. Gentleman’s questions, I indicated to him in my initial response that I have had a conversation with David King, as he did over the weekend, and I spoke to JPI’s lead director today. Those are the conversations that I have had since this announcement was made on Friday. He seems to suggest that the Government should do more. He will be aware that, in addition to the Cairncross review, we have made concessions on business rates for newspapers, and we have looked at other ways in which we can help. He will be well aware that local papers were very clear that if the Government had brought into force section 40 of the Crime and Courts Act 2013, they would be significantly affected by it. Indeed, Johnston Press itself responded to the consultation on this matter. The hon. Gentleman may have seen what it said, but, in case he missed it, let me remind him. It said that the impact of section 40 could cost its business £6.7 million. It went on to say that it would force many of its papers that operate on the slimmest of margins to become unprofitable and that they would therefore have to be closed.

I respect the hon. Gentleman’s position on section 40. It is long held and, by him, deeply felt. What he cannot do is come to this House and accuse the Government of doing too little to help local papers when he himself would take action that would profoundly damage them.

Points of Order

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Monday 19th November 2018 Commons Chamber

[Mr Speaker]

The short answer is that every hon. and right hon. Member is responsible for the veracity of what he or she says in the House. The corollary of that is that if any Member has erred, and if it is a matter not of opinion but of indisputable fact, it is incumbent upon that Member to correct the record. I do not know whether the Secretary of State thinks he has erred, but there is recourse available, either now, if the facts of the case are clear, or after reflection. The Secretary of State is not under any obligation to come to the Dispatch Box, but if he wishes to do so, he can.

[The Secretary of State for Digital, Culture, Media and Sport (Jeremy Wright)]

Further to that point of order, Mr Speaker. Perhaps I should simply say this. I, too, will check the record, but I recall saying that I gave my understanding of the current situation. I think that I also undertook to make sure that that was correct, and I shall do so.

[Tom Watson]

Further to that point of order, Mr Speaker—

Fixed Odds Betting Terminals

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 1st November 2018 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

(Urgent Question): To ask the Secretary of State for Digital, Culture, Media and Sport to make a statement on the Government’s new approach to fixed odds betting terminals.

[The Secretary of State for Digital, Culture, Media and Sport (Jeremy Wright)]

The Government do not have a new approach to fixed odds betting terminals. The reduction in stakes for fixed odds betting terminals is an important change and it is the right thing to do, but there are several factors to consider in determining the date from when it should take effect. The most important, of course, is to do this as soon as possible to prevent further harm. The Government were urged in an early-day motion in June this year and by the all-party group on fixed odds betting terminals not to wait until April 2020 to do so, and we have not done so. But it was also right to consider planning to reduce the effect of job losses for those working in betting shops on the high street and allow time for that planning to take effect.

It also has to be recognised that, right though this change is, money for public services coming from the use of FOBTs has to be replaced, or public services will have less funding. The Chancellor has decided to do that with an increase in remote gaming duty, and it is right that that increase happens at the same time as the FOBT stake change. There also needs to be a proper period of notice after the setting of that new rate before the change to remote gaming duty takes effect. The Government have therefore concluded that October 2019 is the best date to make both changes.

However, the Government have always made it clear that the issue of problem gambling is complex and cannot be addressed through these measures alone, so work has been continuing to strengthen protections around gaming machines, online gambling, gambling advertising and treatment for problem gamblers. The Gambling Commission launched a consultation on protections around online gambling last month. This examined stronger age verification rules and proposals to require operators to set limits on consumer spending until affordability checks have been conducted. There will be tough new guidance from the Committee of Advertising Practice on protecting vulnerable people, with further guidance on protecting children and young people introduced before the end of the year. Public Health England will carry out a review of the evidence on the public health impacts of gambling-related harm and, as part of the next licence competition, the age limit for playing national lottery games will be reviewed to take into account developments in the market and the risk of harm to young people.

While we want a healthy gambling industry that contributes to the economy, we also need one that does all it can to protect players. This is a significant change that will help to stop extreme losses by those who can least afford it, and we are taking decisive action to ensure that we have a responsible gambling industry that protects the most vulnerable in our society.

[Tom Watson]

It was a very good day for both sides of this House back in May when the Minister for Sport and Civil Society, the hon. Member for Chatham and Aylesford (Tracey Crouch), announced this document and that the Government would reduce fixed odds betting terminal stakes. Everyone on both sides of the House was led to believe that that cut would take place in April 2019, at the start of the new tax year. Why was that? Because in answer to a written parliamentary question, the Minister herself said that the enabling statutory instrument would be taken this autumn and verbally confirmed, in a minuted meeting of the all-party group on FOBTs, that that would be the case.

On Monday this week, the Chancellor announced that the cut in stakes would be further delayed by six months. This is extremely disappointing, not least because the Secretary of State’s predecessor also implied to the hon. Member for Inverclyde (Ronnie Cowan) that April would be the date.

Research shows that half of people struggling with problem gambling have had thoughts of suicide. The bookmakers will pocket an estimated £900 million because of this delay. This amounts to a betrayal of the promise made by the Secretary of State’s two predecessors and of the Government’s own three-year review, which was meticulously conducted by the hon. Member for Chatham and Aylesford. When the Government themselves have admitted the social blight of FOBTs, it seems incomprehensible and inconceivable that they would delay a policy supported by many people on both sides of the House and in both Chambers.

Has the Minister resigned? If not, why is she not here answering this urgent question or sitting by the Secretary of State on the Front Bench? She has presumably had time to freshen up since travelling on the red eye from the US.

When did the Secretary of State read the report on gaming machines and social responsibility measures? He failed to answer the question earlier in oral questions from my hon. Friend the Member for Cardiff West (Kevin Brennan). Had he read it when he indicated to the DCMS Select Committee that the policy could be delayed? What discussions did he have with the hon. Member for Chatham and Aylesford before he decided to delay the policy? On what dates—I have informed his office of this question—did he meet the hon. Member for Shipley (Philip Davies), a well-known advocate for the industry, to discuss FOBTs?

The hon. Member for Chatham and Aylesford did the right thing in announcing this policy, and the House supported her, as did those working to eradicate gambling addiction. In capitulating to the gambling industry, the Secretary of State has not just let the victims of gambling addiction down; he has let his own team down, and ultimately he has let himself down.

[Jeremy Wright]

My hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) is doing an outstanding job as the Sports and Civil Society Minister, and the hon. Gentleman is right that she deserves a large part of the credit for the substantive change the Government are making—a decision, by the way, that the last Labour Government did not make and which now falls to us to make. He asks why she is not answering the urgent question. The urgent question is about a change in Government policy. As I have explained to him, there is no change in Government policy, and anyway I take responsibility for policy made in this Department. The Government collectively make decisions on these matters, as in the case of the decision I have explained to the House.

The issue of the timing is important, so let me try to explain it again. The hon. Gentleman is right that the Government announced in May that their intention was to reduce FOBT stakes from £100 to £2. As I have made very clear, that was the right decision to make, but they did not set out at that time the point at which the change would be implemented. He says that everybody knew it would be in May 2019. That is his argument to the House today. I remind him of the text of early-day motion 1440, dated 20 June 2018—after the announcement in May—and which has 48 signatures on it:

“That this House…notes with equal concern that the stake is not due to be reduced until April 2020”.

In addition, we heard representations—understandably —from the all-party group saying that April 2020 would be too late. We agree, hence the decision taken is not to make this change in April 2020, but to make it earlier. I have heard language twisted to various uses in this place, but the idea that a move from April 2020 to October 2019 is a delay is going a little far. It is not a delay. [Interruption.]

Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and Jeremy Wright

Thursday 6th September 2018 Commons Chamber

[Tom Watson (West Bromwich East) (Lab)]

As the Secretary of State will know, 300 newspapers have closed in the past decade and there are 6,000 fewer local journalists than there were in 2007. That is hardly surprising, given that two companies, Facebook and Google, control nearly 60% of global online advertising revenues, using content created by local journalists, playing their role in our democratic system. Does he think that that duopoly is healthy for journalism and local democracy in the UK?

[Jeremy Wright]

I am grateful to the hon. Gentleman for that. The position he sets out and the problem he raises is one of the most serious we face, certainly within my Department and, arguably, beyond. He will appreciate that I want to understand this issue properly before I start to set out any decisions. This is an issue where cross-party discussions are useful and I hope we will be able to have those discussions together—perhaps even live, rather than on Twitter. It would also be helpful to have the conclusions of the Cairncross review, of which he will be aware. I met Frances Cairncross yesterday to talk through some of her preliminary thoughts on the way in which her investigations are proceeding, and I look forward very much to what she has to say on the issues he has raised.

[Tom Watson]

I thank the Secretary of State for that answer. I know he is new to his brief, but I was hoping that his Front-Bench team could provide more reassurance on the protection of voters and consumers, and show more interest in protecting the music industry and local newspapers. The problem seems to be that the Government as a whole are either unwilling or unable to deal with the market dominance of the big tech giants. The Opposition believe that these companies are running rings around Governments, legislators and regulators. There is no better example of that than Mark Zuckerberg’s cowardly refusal to appear before the Digital, Culture, Media and Sport Committee. Even Rupert Murdoch did that. Does the Secretary of State agree that the time is now right for a new single, powerful regulator to take on the big tech giants and redress this huge imbalance of market power?

[Jeremy Wright]

Well, the other aspect that the hon. Gentleman has not mentioned but about which I know he shares my concern is the range of online harms, on which we can realistically expect more assistance from the tech companies than we currently get. We need to think about a whole range of areas. The truth is that the tech economy has changed dramatically, as has the online companies’ power. The hon. Gentleman will understand that I want to make sure that whatever the actions this Government and this country take, they are properly thought through. That is for two reasons: first, they will be substantially attacked, and the hon. Gentleman knows that; and secondly, I very much hope that they will be an example to the world, and that will be so only if we have thought them through properly and designed them carefully, so that they are robust under scrutiny. He has my reassurance that that is exactly the process with which I intend to engage.