Universal Broadband Delivery

Matt Hancock Excerpts
Wednesday 20th December 2017

(6 years, 4 months ago)

Written Statements
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Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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The Government have today confirmed that universal high speed broadband will be delivered by a regulatory universal service obligation (USO), giving everyone in the UK access to speeds of at least 10Mbps by the end of 2020.

Following the creation of new enabling powers in the Digital Economy Act 2017, we launched our consultation on the design of the regulatory USO on 30 July 2017. The USO will give households and small businesses a legal right to request a broadband connection from a designated provider who will be obliged to provide a connection, regardless of location, up to a reasonable cost threshold. Having carefully considered the responses, we will set out the design for a legal right to high speed broadband in secondary legislation early next year, alongside our detailed consultation response.

In the summer, we also received a proposal from BT Group plc to deliver universal broadband through a voluntary agreement. We welcomed the proposal and have considered this in detail alongside a regulatory approach. However, we have decided not to pursue BT’s proposal. We believe that only a regulatory USO offers sufficient certainty and the legal enforceability that is required to guarantee delivery of our manifesto commitment to ensure decent broadband access for the whole of the UK by 2020.

Working with Ofcom, we will now move ahead to take the necessary steps to implement the regulatory USO as swiftly as possible. Once we have laid the secondary legislation setting the specification for the USO, Ofcom will then carry out the necessary steps to put the USO in place to bring about faster broadband across the UK.

[HCWS375]

Draft Electronic Communications Code (Jurisdiction) Regulations 2017 Draft Communications Act 2003 and the Digital Economy Act 2017 (Consequential amendments to Primary Legislation) Regulations 2017

Matt Hancock Excerpts
Wednesday 6th December 2017

(6 years, 5 months ago)

General Committees
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Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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I beg to move,

That the Committee has considered the draft Electronic Communications Code (Jurisdiction) Regulations 2017.

None Portrait The Chair
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With this it will be convenient to consider the draft Communications Act 2003 and the Digital Economy Act 2017 (Consequential Amendments to Primary Legislation) Regulations 2017.

Matt Hancock Portrait Matt Hancock
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It is customary to begin by saying what a pleasure it is to serve under the Chair, but this time, Sir Henry, it really is true. I hope that Hansard will note my stress on the word “really”; it is always true, but it is especially true today. This is the first time that I have served under your chairmanship, and I hope the experience will be repeated many times.

The Digital Economy Act 2017, which received Royal Assent in April, included reforms to the electronic communications code, which provides the statutory framework for agreements between site providers and digital communications network operators. The purpose of the reforms in the Act was to make it easier and cheaper for digital communications infrastructure to be installed and maintained. Rolling out digital infrastructure is a critical task that the Government are pursuing, and we want to make it easier.

To ensure a smooth transition to the reformed code, a number of supporting regulations are needed. In addition to the draft regulations before the Committee, regulations to amend secondary legislation and make specific transitional procedures were laid before Parliament on 19 October. Those regulations were subject to the negative procedure and will come into force on the same day as the new code. The reformed code is subject to commencement under a separate statutory instrument, which we hope to introduce before the end of the year to ensure that the new code’s benefits are realised as soon as possible. The draft regulations before the Committee need to be in place as soon as the new code commences.

The draft Communications Act 2003 and the Digital Economy Act 2017 (Consequential Amendments to Primary Legislation) Regulations 2017 will simply amend references in other primary legislation to the existing code and its provisions, replacing them with terminology and cross-referencing that aligns with the new code. This will ensure clarity and consistency across the statute book.

The draft Electronic Communications Code (Jurisdiction) Regulations 2017 will implement one of the key code reforms: transferring jurisdiction for code disputes from the county courts to the lands chamber of the upper tribunal in England and Wales, and from the sheriff court to the Lands Tribunal in Scotland. This reform was strongly recommended by the Law Commission after consultation on the code and is expected to ensure that code disputes are dealt with more quickly and efficiently. Ensuring that our system is effective in tackling communications disputes is incredibly important for getting infrastructure rolled out as quickly as possible.

Hon. Members throughout the House understand the need to ensure that we have high-quality communications in the digital age and can get a mobile signal throughout the country. Although the code and the draft regulations are technical, they are a critical part of delivering that goal. I commend them wholeheartedly to the Committee.

--- Later in debate ---
Matt Hancock Portrait Matt Hancock
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I will briefly reply to put on the record this Government’s record performance on jobs, which the right hon. Gentleman somehow missed out of his assessment of the economy.

I agree with the right hon. Gentleman about the importance of extending digital connectivity. I note with regret the decision made in 2003—I do not know whether he was a Minister then, but under the Labour Administration he supported the decision not to put any coverage requirements on the 3G auctions. That led to the geographic weakness in mobile coverage in this country. We are working doggedly to put that right, and the regulations will help in that. As so often, we are clearing up where Labour made a great mess. I am delighted that today at least, the right hon. Gentleman has decided not to stand in the way of progress. I welcome his decision not to push the regulations to a vote and the cross-party nature of the work to clear up the mess that Gordon Brown left. With that, I am glad that this non-partisan debate can conclude.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Electronic Communications Code (Jurisdiction) Regulations 2017.

DRAFT COMMUNICATIONS ACT 2003 AND THE DIGITAL ECONOMY ACT 2017 (CONSEQUENTIAL AMENDMENTS TO PRIMARY LEGISLATION) REGULATIONS 2017

Resolved,

That the Committee has considered the draft Communications Act 2003 and the Digital Economy Act 2017 (Consequential Amendments to Primary Legislation) Regulations 2017.—(Matt Hancock.)

Cyber Security and Data Protection: Update

Matt Hancock Excerpts
Wednesday 29th November 2017

(6 years, 5 months ago)

Written Statements
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Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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Uber has today estimated that the data breach which occurred in October 2016 has affected approximately 2.7 million user accounts in the UK that were using its service or working for the company in the UK at that time.

Uber have stated that this information included names, email addresses and mobile phone numbers related to accounts globally. Uber have stated they have not seen any indication that trip location history, credit card numbers, bank account numbers or dates of birth were downloaded. Based on current information, Uber have stated that they have not seen evidence that financial details have been compromised.

The Information Commissioner’s Office (ICO) have directed Uber to provide them with technical reports that should help UK authorities, in particular the ICO and National Cyber Security Centre (NCSC), to verify these figures and whether any additional types of personal data have been compromised. The Government expect Uber to co-operate fully and promptly with the ICO and the NCSC.

The ICO and NCSC will continue to work tirelessly with Uber to ensure this information is correct. The Government expect Uber to respond fully to the incident with the urgency it demands and to provide the appropriate support to its customers and drivers in the UK. Uber users should continue to be vigilant and follow the advice from the NCSC, which can be found on their website.

The Government take both the protection of personal data and the right to privacy extremely seriously. It is always the company’s responsibility to identify when UK citizens have been affected as part of a data breach and to take steps to reduce any harm to consumers, and it is welcome Uber has done this.

The Government are strengthening the UK’s data protection regime through a new Data Protection Bill, which will give more powers to the ICO to defend consumer interests and issue higher fines of up to £18 million or 4% of global turnover, in cases of the most serious data breaches.

The ICO, NCSC and other relevant authorities in the UK and overseas will continue to work together to ensure the data protection interests of UK citizens are upheld.

[HCWS287]

Uber: Personal Data Theft

Matt Hancock Excerpts
Thursday 23rd November 2017

(6 years, 5 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Wes Streeting Portrait Wes Streeting (Ilford North) (Lab)
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(Urgent Question): To ask the Secretary of State for Digital, Culture, Media and Sport to make a statement on Government responsibilities and policies for protecting British citizens, following the theft of the personal data of 57 million Uber customers and drivers.

Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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Late on Tuesday, we were notified by the media of a potentially significant data breach of Uber driver and customer data. Uber had failed to tell the UK authorities before it spoke to the media about this. The breach appears to date back over a year and to involve Uber paying criminals money to try to prevent further data loss. We are told that some UK citizens’ data is affected.

We are verifying the extent and the amount of information. When we have a sufficient assessment, we will publish the details of the impact on UK citizens, and we plan to do that in a matter of days. As far as we can tell, the hack was not perpetrated in the UK, so our role is to understand how UK citizens are affected. We are working with the Information Commissioner’s Office and the National Cyber Security Centre, and they are talking to the US Federal Trade Commission and others to get to the bottom of things.

At this stage, our initial assessment is that the stolen information is not the sort that would allow direct financial crime, but we are working urgently to verify that further, and we rule nothing out. Our advice to Uber drivers and customers is to be vigilant and to monitor accounts, especially for phishing activity. If anyone thinks they are a victim, contact the Action Fraud helpline and follow the NCSC guidance on passwords and best practice.

More broadly, the general data protection regulation and the new Data Protection Bill, which is currently before the other place, will introduce a package of tougher measures to address data breaches. Delayed reporting is already an aggravating factor, but the new Bill will require organisations to report breaches likely to impact on data subjects to the Information Commissioner within 72 hours of becoming aware of one. In serious cases, they will also have to notify those affected by the breach. The commissioner will have increased powers to respond in the way that she considers appropriate, including with fines of up £18 million or 4% of global turnover. We are making further assessments as I speak, and we will keep the public and the House updated.

Wes Streeting Portrait Wes Streeting
- Hansard - - - Excerpts

I thank the Minister for that reply. Did I hear correctly that, even after the Government learned about the data breach, they are still not in a position to tell the public how many customers and drivers in the UK have had their personal data compromised? If so, that is outrageous on Uber’s part. Uber apparently paid criminal hackers $100,000 to delete the data and keep quiet, but what assurances do we have that the data of Uber customers and drivers is not in the hands of hackers or criminals today?

UK authorities have acted swiftly since the security breach came to light, so will the Government therefore push for the toughest penalties to punish Uber for this outrageous dereliction of its ethical and legal obligations to the public? Under EU law, Uber could face a fine of €20 million or 4% of its annual global turnover—whichever is greater—but the maximum fine from the ICO is just half a million pounds. Will the Minister review the maximum fines in the UK once we leave the EU? In any case, does he really think that a fine will cut it in this case? Does he think that a company that covers up the theft of data and pays a ransom to criminal hackers can possibly be considered a fit and proper operator of licensed minicabs in our towns and cities? If not, what are the Government going to do about it? When Transport for London finally took action over Uber’s abysmal safety record, the Conservative party handed out leaflets attacking the Mayor. Does the Minister agree that that is not a good look for the Government today, and will he revisit that choice?

Like the Minister, I am pro-tech, pro-competition and pro-innovation, but given that Uber stands accused by the Metropolitan Police of failing to handle serious allegations of rape and sexual assault appropriately, given that Uber has to be dragged through the courts to provide its drivers with basic employment rights and to pay its fair share of VAT and given that we now know that Uber plays fast and loose with the personal data of its 57 million customers and drivers, is it not time that the Government stopped cosying up to this grubby, unethical company and started standing up for the public interest?

Matt Hancock Portrait Matt Hancock
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Licensing taxi companies and private hire companies is rightly for local authorities. This is a data protection issue, and we are dealing with it with the utmost urgency. The hon. Gentleman mentioned fines, and we are currently legislating for the higher fines that I mentioned in my initial response, and that legislation will come to this House after Christmas. As for ensuring that organisations that think that the data they hold on behalf of customers or others has been breached, they already have a responsibility to protect that data. In future, they will have a responsibility to inform the authorities within 72 hours. Delaying notification is unacceptable unless there is a very good reason and is, as I said, an aggravating factor when the Information Commissioner looks into such cases.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
- Hansard - - - Excerpts

I thank my right hon. Friend for his answers. Given the knowledge he has already gleaned from this disgraceful data breach, does he propose to make any further amendments to the Data Protection Bill, which has been brought before the Lords and which will come here in due course, to strengthen the powers to make sure that companies report such breaches at an early stage and take further measures to safeguard customers’ personal data?

Matt Hancock Portrait Matt Hancock
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We can debate that when the Bill comes to this House. As it happens, on our initial assessment, the two most concerning issues—the delay in notification and the need for recourse and fines, not just to punish bad behaviour but to incentivise good behaviour—are already covered in the Bill, but we can have that debate in due course, when we have a fuller assessment of the information and more confidence in that assessment, when the Bill comes before us.

Kevin Brennan Portrait Kevin Brennan (Cardiff West) (Lab)
- Hansard - - - Excerpts

When Transport for London announced on 22 September that it would not renew Uber’s licence in London, Uber emailed its customers the very same day to ask them to protest against the decision. Does the Minister agree that if it could email all its customers then, it should do so now, and begin that communication with an apology?

I would be grateful if the Minister answered the following questions. Can he give us a rough idea—I know he said he was looking into the precise figures—of how many customers and drivers in the UK had their personal information compromised by the hack and what kind of data was compromised? What was the first contact Uber had with the Government and when did it happen? When did he personally become aware of this security breach? In his view and that of the Government, has Uber broken current UK law? If Uber has not done so already, will the Minister or the Secretary of State call Uber into the Department immediately, or over the weekend if necessary, to explain itself and give more information about the breach?

Given the magnitude of the breach, has the Minister satisfied himself about the facts of the case, particularly given that if regulation requires strengthening, we can do it right now in the other place in the Data Protection Bill, as he has pointed out? I think that he said in his answer that he learned about the breach on Tuesday. Can he confirm that despite that, just yesterday in the House of Lords, the Government blocked the ability of consumer groups such as Which? to initiate action for victims of data breaches? Will he commit now—I think that he said he was prepared to make some movement—to reversing that position when the amendment comes before the House of Lords on Report, to show that we are on the side of consumers and employers, not huge corporations that are careless with our data?

Matt Hancock Portrait Matt Hancock
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I will try to address all the hon. Gentleman’s questions. We do not have sufficient confidence in the number that Uber has told us to go public on it, but we are working with the National Cyber Security Centre and the ICO to have more confidence in the figure. He will remember in the Equifax breach that the initial figure suggested went up. We want to get to the bottom of it and will publish further details within days, and if required I will be happy to come before the House to take further questions.

The hon. Gentleman asked when I personally knew about the breach. I knew about it when I was alerted by the media. As far as we are aware, the first notification to UK authorities—whether the Government, the ICO or the NCSC—was through the media. He asked whether Uber has done anything illegal under current UK law, which of course would be a matter for the courts, but I think there is a very high chance that it has.

The hon. Gentleman asked about taking action on behalf of data subjects following a data breach. I am strongly in favour of people being able to take action following a data breach, and we are legislating for that. The question debated yesterday in the other place was whether people should have to give their consent to action being taken on their behalf, and the whole principle behind the Data Protection Bill is to increase the level of consent required and people’s control over their own data. The proposed amendment pushed in the opposite direction, which is why we rejected it yesterday, but we will have the debate in this House, too.

None Portrait Several hon. Members rose—
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Mims Davies Portrait Mims Davies (Eastleigh) (Con)
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The situation is extremely concerning not only for London users but for users of Uber South Coast, which operates in and around Southampton. What is the Minister doing to hold to account companies that lose data and then seek to hide from their responsibilities?

Matt Hancock Portrait Matt Hancock
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Not only will we, of course, use the full force of the existing law, but we are strengthening the law to give people more power and control over their data.

Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
- Hansard - - - Excerpts

People across the UK will be shocked that Uber failed to notify the Information Commissioner, the National Cyber Security Centre or the UK Government. Given the current climate, covering up this breach and paying hackers could actually stimulate the growth of cyber-crime. What measures will the Minister consider to hold Uber to account? If people in Scotland are affected, will he work with the Scottish Government and share information with them?

Matt Hancock Portrait Matt Hancock
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Yes, of course I will. We rule nothing out.

Rebecca Pow Portrait Rebecca Pow (Taunton Deane) (Con)
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Obviously, there will be an awful lot of very worried people out there with Uber accounts. Can we please have some reassurance from the Minister that, first, Uber will be held to account and, secondly, that we have the right legislation and structures in place to stop such things happening?

Matt Hancock Portrait Matt Hancock
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Yes, I give the assurance that, at this stage, our initial assessment is that, for Uber customers, the stolen information is not the sort that would allow direct financial crime. People just need to make sure that they do not respond to phishing emails and that they follow NSCS guidance.

Daniel Zeichner Portrait Daniel Zeichner (Cambridge) (Lab)
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Uber’s scandalous disregard for the rights of the millions of people who have entrusted it with their personal data shows that we need stronger protection. There was a suggestion in yesterday’s Budget that there will be a centre for data ethics. Can the Minister shed some light on the centre’s relationship with the Information Commissioner’s Office to ensure that we can deal with these over-mighty companies in the way that my hon. Friend the Member for Ilford North (Wes Streeting) suggested?

Matt Hancock Portrait Matt Hancock
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This is an important subject. The Information Commissioner, of course, is the regulator, and we think that there is a broader question to ensure that the modern use of data is both innovative and follows a decent set of ethics, which is what the proposed centre is all about.

Tom Pursglove Portrait Tom Pursglove (Corby) (Con)
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Does my right hon. Friend intend to have any discussions with his international counterparts, given the international and cross-border nature of the problem?

Matt Hancock Portrait Matt Hancock
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Yes. As I said, we have already had discussions with the US Federal Trade Commission and with the Dutch authorities—Uber’s European headquarters is in Holland, so they are pertinent to the matter.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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The Minister has mentioned the forthcoming data protection regulations, but there is currently no requirement for a private company to report a data breach, although it is recommended. What will the Government do, between now and the introduction of the data protection regulations, to ensure that companies make people aware when their data is stolen?

Matt Hancock Portrait Matt Hancock
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The new data protection rules will come into force on 25 May 2018, and it is important that we get the Bill through before then. The premise of the hon. Lady’s question is not quite right. It is already an aggravating factor if a breach is not reported promptly.

James Cleverly Portrait James Cleverly (Braintree) (Con)
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Market disrupters that not only rely on data but are driven by data will increasingly play an important part in the UK economy. What steps is the Department taking to ensure the confidence of the British public in such data-driven market disrupters?

Matt Hancock Portrait Matt Hancock
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The single best thing anybody in this House can do to try to improve our ability to respond to this sort of issue is to vote for the Data Protection Bill when it comes before this House.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- Hansard - - - Excerpts

I thank the Minister for his response. How will he enable big businesses to grasp their responsibility for private, detailed, confidential and significant personal data? They need to protect it as though it is their very own, and it is clear that at the moment they simply do not do that.

Matt Hancock Portrait Matt Hancock
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There is a lot of sense in what the hon. Gentleman says, and I hope that the action we are taking is everything we can do to keep people’s data safe in response to this incident. More broadly, strengthening the rules will help give people more control over their data and help to punish those who do not have high data protection standards.

Rural Communities in Scotland: Broadband

Matt Hancock Excerpts
Wednesday 22nd November 2017

(6 years, 5 months ago)

Westminster Hall
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Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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This has been a robust debate and I want to answer the points that were made very clearly. The debate was initiated by my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont), and I am delighted that he and the other new Scottish Conservative MPs have done so much over the last few months to put Scottish broadband right under the spotlight. It deserves that attention, because it deserves to be better. I look forward to visiting my hon. Friend’s constituency very soon, as he asked. I will address all the questions that he raised.

I also agree with much of what the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) said, not least that digital is vital for the future economy, and I agree with my hon. Friend the Member for East Renfrewshire (Paul Masterton) that inequalities must not be allowed to emerge. The right hon. Member for Birmingham, Hodge Hill called for accurate descriptions of speeds actually available, and I look forward to progress on that front coming very soon.

My hon. Friend the Member for Angus (Kirstene Hair) argued very strongly that broadband is no longer a “nice to have” but a modern necessity. She explained why it is so important, and how disappointed she and her constituents are that delivery of superfast broadband in Scotland has not been good enough. We need to see an improvement. I wanted to set that out today.

In Scotland, around two-thirds of premises have access to superfast broadband through commercial roll-out by BT, Virgin and others, but one third cannot get it through that commercial roll-out, so after 2010 we introduced a subsidised superfast broadband programme in Scotland, as we did across the rest of the UK. We gave £100 million of UK taxpayers’ money to the Scottish Government to deliver that programme. Today, more than 92% of premises in Scotland now have access. That is good news, but it is well short of the Scottish Government’s target of 95% by the end of the year. Unfortunately, Scotland’s roll-out of superfast broadband is behind the pace of the rest of the UK, where access is now more than 94% and on track to hit 95% by the end of the year. It is also behind Wales, where we also gave funding after 2010, and where the Welsh Government have not bungled the delivery like the SNP Government have in Scotland.

Alan Brown Portrait Alan Brown
- Hansard - - - Excerpts

Will the Minister explain how the allocation of £100 million came about? That £100 million is roughly one third of what is needed to achieve the 95% target, whereas the £520 million allocation to England is half. How did that funding formula come about?

Matt Hancock Portrait Matt Hancock
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The Scottish Government got more than their fair share because they had a higher proportion needing supported rather than commercial access.

Until now, the Scottish Government have been happy to take the credit when things have gone right, but pass the buck when things have gone wrong—we saw more attempts at that this morning—so I am going to set out what has been going on. In 2014, we gave the Scottish Government more than £20 million for phase 2 of their superfast roll-out. Three years later, they have not only failed to sign that contract, but have not even opened the procurement yet. The Scottish Government are three years behind the fastest English local authorities in contracting for their roll-out.

In fact, Scotland is behind every single English local authority, behind the Welsh Government, behind Northern Ireland in getting going on phase 2 of its broadband roll-out. My own county of Suffolk, for example, has not only contracted phase 2; it has already contracted phase 3. There is a similar story in most other parts of the country—but not in Scotland. Worse, the Scottish Government project will not have contracts signed until the end of next year, which will be after the roll-out of phase 1 has finished, so they risk broadband delivery companies downing tools after completing phase 1 of the project, before phase 2 is ready to go. Elsewhere in the country, they got phase 2 going before the end of phase 1.

It is a great cause for regret that the Scottish Government have for more than three years sat on £20 million of UK taxpayers’ money, which could have been used to deliver broadband for the people of Scotland. The hon. Member for Argyll and Bute (Brendan O'Hara) raised the question of that £20 million. We offered it in 2014. A further £60 million is being returned from the first contract because of the level of take-up in phase 1, and another £14.5 million from underspending on that contract, and £30 million from city deals. In total, there is £125 million of UK taxpayers’ money waiting to be spent in Scotland—waiting for the Scottish Government to get on with it. So you can see why we and the people of Scotland are rightly frustrated at the Scottish Government dragging their feet.

Throughout the process, BDUK has offered technical support and assistance to Digital Scotland to try to get things going, but it seems that the Scottish Government’s fixation with pipe dreams of independence has distracted them from the job of delivering to the people they are meant to serve. It is part of a pattern.

As a result of our experience of delivering superfast broadband through the Scottish Government thus far, we have decided that for the next generation of broadband technology—full fibre—we will instead deal directly with local authorities across Scotland, as we do in England. We have already had a fantastic response, and I am looking forward to going to Aberdeenshire next week to see their pilot of a local full-fibre network project and to see progress on a test bed for 5G. I look forward to working constructively with Digital Scotland to deliver on the next steps of the superfast project and with local authorities across Scotland to deliver the next generation of technology that is coming rapidly.

Brendan O'Hara Portrait Brendan O'Hara
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The Minister said a moment ago that BDUK is on hand to offer technical solutions. Perhaps he is coming to my direct question on the problems of GigaPlus Argyll. BDUK offered no solutions; it absolutely abandoned GigaPlus Argyll and ignored me, as the Member of Parliament, on numerous occasions.

Matt Hancock Portrait Matt Hancock
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The hon. Gentleman should have been talking to Digital Scotland, because we gave the money to Digital Scotland to deliver, and for three years it has sat on that money and done nothing with it. What we need from the Scottish Government is not noise, but action for the thousands of people who have seen nothing but buffering while the Scottish Government have sat on their hands and sat on the money.

Brendan O'Hara Portrait Brendan O'Hara
- Hansard - - - Excerpts

So, for clarity, is the Minister saying that BDUK has no role to play in the position of GigaPlus Argyll, despite it having been set up through BDUK? Is he saying that BDUK has no role to play for an elected MP to contact?

Matt Hancock Portrait Matt Hancock
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In future, BDUK and the UK Government will be delivering our full-fibre, next generation technology directly to local authorities in Scotland, instead of through the Scottish Government, because we have been so disappointed with the failure of the Scottish Government to deliver on money that has already been allocated.

Ross Thomson Portrait Ross Thomson
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Aberdeen has suffered from poor digital connectivity for too long. UK Government grants of up to £3,000 to get gigabit broadband are very welcome. Does the Minister agree with me that that investment will help support Aberdeen to continue to compete on the international stage in areas such as oil and gas, food and drink and life sciences? Does he share my belief that Aberdeen City Council would do a much better job of delivering that locally than the SNP Government in Edinburgh?

Matt Hancock Portrait Matt Hancock
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I wholeheartedly support that and I look forward to working with local authorities right across Scotland, of whatever political persuasion, as we have with local authorities across England whatever their political persuasion, and as we have successfully with the Labour Welsh Government, who have delivered better for Wales than the Scottish Government have delivered for the people of Scotland. This is not about party politics; it is about how to best get decent broadband to the people. That is what I care about. We have had failures from the SNP Government, so we are going to go direct to local authorities, and I look forward to working with Members right across Scotland to make sure we can get that delivery.

In the meantime, of course I look forward to working with Digital Scotland on the contracts that are already in place to get to the end of that roll-out. I plead with the Scottish Government to get a move on. We stand ready to help get broadband to the people of Scotland. We will do everything we can to make that happen, but our patience with the Scottish Government when it comes to the next generation of delivery has simply run out.

TV Licence Fee

Matt Hancock Excerpts
Monday 20th November 2017

(6 years, 5 months ago)

Westminster Hall
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Helen Jones Portrait Helen Jones
- Hansard - - - Excerpts

The hon. Gentleman makes a fair point. There is much more to do, and I will come to that in a moment.

Media City has been a huge success and has boosted other creative industries in the region, although it took some time to convince certain people that there are nice places to live that are not in London and that northerners do not keep coal in the bath and ferrets up their trousers.

Helen Jones Portrait Helen Jones
- Hansard - - - Excerpts

The BBC’s natural history unit, which produces excellent documentaries, is based in Bristol. There has been investment in Birmingham and Belfast. As the hon. Member for Solihull (Julian Knight) said, there is a lot more to do. The BBC needs to do much more to reflect the diversity in this country.

--- Later in debate ---
Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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It is a great pleasure to serve under your chairmanship, Mrs Moon. This has been a generally cheerful and thoughtful debate. I would first like to thank the tens of thousands of people who engaged with the petition process and ensured we are debating this issue today. Whether hon. Members agree with them or not, we would not be having this debate if it was not for people signing the petitions. E-petitions are a relatively new innovation in this House—they are less than a decade old—and the fact that we are having this debate and airing these issues demonstrates that the process is working and that our democratic institutions are responding to the citizens we serve.

The hon. Member for Warrington North (Helen Jones) is the embodiment of that principle. I thank her for her introduction. I was interested in how she would speak to the two petitions. She was clear that she did not agree with their thrust, but she faithfully set out the arguments and opened up the debate. If people a sign a petition, it is very important that their views are expressed, even though it is right that Members express their own views. The hon. Lady made an excellent speech. The Churchill quotation that she referred to—she said that the BBC is the worst system except all the others that have been tried from time to time—came up many times during the debate.

Most Members generously supported the BBC’s funding model. Others did so more grudgingly, but did not actually support the petitions. Some said that the BBC is full of lefties. That may well be true now, but it was not always so. The truth is that we fished out the best talent in the BBC, and they are now Conservative Members of Parliament. It is good to see so many of them here today. Perhaps there are only lefties left in the BBC.

Hon. Members raised the issue of diversity, about which every institution faces questions. The recent revelations, thanks to the transparency measures we introduced, demonstrated some of the concrete changes the BBC needs to make with respect to diversity and equal pay, but that is true for many institutions, including Parliament. It is a fact that, in this debate, there are as many white men from Chester as women.

Helen Jones Portrait Helen Jones
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And white women.

Matt Hancock Portrait Matt Hancock
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My goodness! There are more people from Chester than women in this debate. What is it about the wonderful, great city of Chester that leads to so many people with an interest in one of our greatest national institutions? Chester, the city of my birth, is a great place. I was shocked to hear the hon. Member for City of Chester (Christian Matheson) describe himself as a leftie—he has never given any indication of that before. In this debate, like many others, he is probably closer to the Government position than to that of the leadership of his own party.

I am amazed at how much spare time the hon. Member for Cardiff West (Kevin Brennan) has to watch things on the BBC, to write texts about chaperoning Mrs Balls around the Labour party conference, to watch 1970s music programming and even to appear on Dave. I am delighted that he has spared a bit of time to turn up.

I am grateful that the hon. Member for Argyll and Bute (Brendan O’Hara) declared unambiguously the Scottish National party’s support for the BBC, but he made some unreasonable attacks because he was unhappy about what he perceived to be the BBC’s balance, which is a pity. He might be unhappy with the outcome of the referendum, but I think that the reporting surrounding the referendum truly demonstrated the impartiality to which the BBC is committed. When it comes to the BBC’s representation and its expenditure on programming around the UK, the clue is in the name: the BBC is the British Broadcasting Corporation, and it has a duty to spend money in—and, indeed, to reflect—all parts of the UK. Whether it is the west midlands or each part of Scotland separately, it does that. That is true for Wales, Northern Ireland, the west midlands and cities within Scotland—it is not just about Scotland as a whole. It is the British Broadcasting Corporation, and it rightly serves the UK as a whole.

Brendan O'Hara Portrait Brendan O'Hara
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For the record, will the Minister confirm that he thinks it is acceptable that Wales gets 95% of spend, Northern Ireland gets 75%, and in 2015-16 Scotland got 55%? Is that acceptable?

Matt Hancock Portrait Matt Hancock
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I was just coming on to that. As the BBC’s new regulator, Ofcom will require the BBC to allocate its TV network spend and programme hours based on population, and in Scotland that will mean at least 8% a year. Because the Government represent and govern the whole UK, we are dealing with that point, but the way to do so is to help the BBC ensure that it reflects the whole nation, rather than make unreasonable and mean-spirited attacks on it.

Let me move on to some of the other speeches. My hon. Friend the Member for Eastleigh (Mims Davies) expressed her strong support for the BBC, and in particular for the increased transparency and accountability that we have brought to it. I have enormous respect for her—I consider her a friend—but I want to pick up one little thing. She said that people do not have a choice not to pay the licence fee, but as we discovered from the hon. Member for Kilmarnock and Loudoun (Alan Brown), they do have the choice if they do not watch TV or use the iPlayer. It is not a choice that many people exercise, partly because of how brilliant BBC content is, but they do have it.

Many hon. Members called for more flexibility. As part of the BBC charter renewal, we are introducing a contestable fund, which will ensure more flexibility on how licence fee money is spent on different programming. We will introduce details of the contestable fund shortly.

My hon. Friend the Member for Bexhill and Battle (Huw Merriman) made an excellent speech, and he made a point that I want to pick up. He said that content should be neutral. I think that the language we use is incredibly important. I do not think that the BBC should be neutral; I think it should be impartial. There is an important difference between the two. It should not simply take a neutral position between two stated arguments and split the difference. It should carry out an active, muscularly objective, fact-based analysis of the arguments, then put forward an impartial point. That is actually much harder. It requires more judgment and probably more self-confidence. The BBC should be aiming for true impartiality, based on objective analysis of the facts before it. For instance, my hon. Friend mentioned the slip about universal credit this week. I think that, culturally, the BBC should be appalled when a slip or a factual error is made. It happens, although it is rare. We all make mistakes. The BBC’s attitude should not be defensive; rather, it should be open and responsive to criticism.

My hon. Friend the Member for Eastleigh and the hon. Member for City of Chester talked about “Blue Planet II” and the value that the BBC can put into productions, but there is a bigger point. Of course, the BBC has great production capacity and can set long-term budgets. The poor, poor producers of “Blue Planet II” had to go to the south Pacific twice in two years— we all feel their pain—because they missed those extraordinary scenes of the fish shooting up while they were spawning, which we enjoyed. But that is changing, and the context is changing—the length of the BBC funding settlement is not changing, which is a good thing, but the context is.

The nature of the internet means that people now reach global audiences quickly, with Netflix the best embodiment of that, so the BBC is increasingly competing against production budgets in the private sector that are predicated on a global audience. Hence Netflix can pay an enormous amount for a production, whereas the BBC relies on licence fee income plus commercial income, largely from Worldwide which is the commercial exploitation of BBC content. I agree, however, that the BBC has an opportunity to broaden where it gets such revenues from, and I was interested that the director-general talked recently about how to make the most of the amazing back catalogue and see whether the BBC could monetise it further in order to put more into production. That was discussed by several Members, and it was interesting.

The hon. Member for East Londonderry (Mr Campbell), with whom I have debated this subject in the past, pushed hard for more transparencies, some of which we are bringing in, especially on pay. He also wants greater transparency in commissioning, and we have been through some of the detail of his concerns. As I have said in the past, the BBC must engage with those concerns and ensure that it listens to them, responding appropriately. Also, I always stand by to assist him in getting the responses he needs.

I come now to my hon. Friend the Member for North Devon (Peter Heaton-Jones), who made a brilliant speech—a forensic dissection of the petitions worthy of a journalist of 17 years who trained at the BBC. It was also a brilliant exposition of the BBC funding model—he went further than the hon. Member for Cardiff West who said that if we did not have it, we might not invent it—and how, if it did not exist, we might want to invent it as it is. He also made the point, however, about the need not only for a broader range of people but, crucially, a broader range of people reflecting the whole of Britain.

The BBC has a special responsibility for diversity in its broadest sense, not only in the important protected characteristics such as gender, race, sexual orientation and disability. Those are important, but so is ensuring that BBC, in front of and behind the camera, represents and reflects back to us the nation that we live in. There is no doubt that the BBC is the finest mirror we have on our society. It is incumbent on the BBC, from the programme makers through to those who are on screen, to lead rather than to follow, and to ensure that they represent and reflect the whole of the country they serve.

I will touch on a couple of other points. It is clear to me that this debate has broadly reflected the views of the country. Recently we had a charter review, one of the biggest consultations undertaken by Government. We received 192,000 responses and engaged with more than 300 organisations and experts. The process was overseen by my right hon. Friend the Member for Maldon (Mr Whittingdale) who is no wet blanket and by no means an instinctive cheerleader for the BBC, yet we have come up with a solution that has a broad consensus of support behind it.

Alan Brown Portrait Alan Brown
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The Minister is moving on from the contributions made by hon. Members, but may I remind him that part of my speech touched on the threatening nature of the letters from, and the harassment and intimidation by, TV Licensing? I was hoping that he might respond to that at some point.

Matt Hancock Portrait Matt Hancock
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I am extremely grateful to the hon. Gentleman for reminding me of that, because I had buried the relevant piece of paper underneath an extremely elegant and new description of who is sitting where in the Chamber. The Perry review found that the existing regime is broadly fair and proportionate. However, when it comes to ensuring that those letters are worded appropriately and to their tone, we expect the BBC board to keep that under review, and I am sure that the hon. Gentleman will help. Members across the House have spoken about the tone of the letters, and in no circumstances is it reasonable for people to be presumed guilty until they are proven innocent. The opposite is rightly true in the system we have in this country.

I was talking about the scale of the consultation. The existing model has wide public support: 60% of consultation responses indicated that no change was needed to the licence fee model and only 3% favoured full subscription funding. That has been reflected in today’s debate. We are committed to maintaining that model for the duration of the 11-year charter period, which will provide the BBC with the funding certainty that it needs.

There is also a commitment to considering whether elements of subscription have a role to play in future funding alongside the core licence fee model. It is for the BBC to set the scope of those plans, but we expect progress. The success will be appropriately reviewed to feed into the next charter review process. As my hon. Friend the Member for Solihull (Julian Knight) pointed out, there are ways to add subscription funding on to the core licence fee—BBC Worldwide does that already—and the BBC’s existing content is a huge potential source of wealth.

In wrapping up, let me say that if we assess the value for money of the BBC, for approximately 40p a day we are offered an unrivalled range of services, including seven national TV services, more than 50 radio services and digital services including the iPlayer, as well as some of the further efforts that the BBC makes on education. That represents great value for licence fee payers. The introduction of the contestable fund; the need to consider the future of children’s content, which was raised by the hon. Member for Cardiff West; the need to ensure that local areas of the country are fairly represented; the support for local news; and, in this era of an increasingly disrupted and diverse range of news sources, the need for objective, factual news domestically and around the world, mean that the case for the BBC as funded by the licence fee is incredibly strong.

Ultimately, our democratic discourse and our freedom as a nation are underpinned by having a debate based on an agreed set of facts that can be objectively verified. In this disruptive digital world, the BBC plays a vital role in helping to improve the quality of that public discussion and in enhancing the quality of public understanding. Although I would push it harder on diversity of thought and distinctiveness of programming, the value that the BBC adds to our public debate and of course to our enjoyment, whether on a Saturday night or at any other time, is second to none.

Before I end, let me add that the support for S4C, which was mentioned by the hon. Member for Ogmore (Chris Elmore), is incredibly important. With that, I bring this lively debate to an end. I submit that we have faithfully debated the petitions and I look forward to continuing this debate in the months and years ahead.

Oral Answers to Questions

Matt Hancock Excerpts
Thursday 16th November 2017

(6 years, 6 months ago)

Commons Chamber
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Adam Afriyie Portrait Adam Afriyie (Windsor) (Con)
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3. What steps she is taking to improve broadband speeds in rural areas.

Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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As we have heard, superfast broadband is now available to more than 94% of premises. In 2010, only 42.5% of homes in Windsor had superfast broadband access. Today, that number is just shy of 94%.

Adam Afriyie Portrait Adam Afriyie
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Windsor is a well-connected constituency —particularly given one notable resident—but we do have concerns that some rural and semi-rural areas may need further connectivity. In order to boost the creative, home education and home entertainment markets, does my right hon. Friend agree that developers and local authorities would do well to push on with ensuring that they deliver broadband infrastructure, such as ducting alongside the mains?

Matt Hancock Portrait Matt Hancock
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Windsor is not only well connected, but well represented. My hon. Friend’s point is that it is important that new developments get infrastructure and connectivity right from the start. We have agreed with the Home Builders Federation and major broadband providers that all new large developments of over 30 homes will get good connections, but we are also talking to the Department for Communities and Local Government to strengthen that requirement, because it is pretty absurd to build a new house without the ducting to take fibre all the way to it.

Helen Goodman Portrait Helen Goodman (Bishop Auckland) (Lab)
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I wrote to the Treasury about its £200 million locally led infrastructure fund, but I was passed to the Minister, who passed me to the local authority. The local authority says that the criteria mean that people have to make bids that are too big for a rural area. Will the Minister please look again at that so that my constituents in Teesdale can get the broadband they need?

Matt Hancock Portrait Matt Hancock
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As it happens, I was in Teesside last week talking to local authorities from across the region. We designed the scheme to allow all local bodies of whatever size to bid—district and borough councils, county councils and larger metropolitan areas—so I look forward to engaging with the hon. Lady to ensure that that can be taken forward.

Lord Benyon Portrait Richard Benyon (Newbury) (Con)
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May I suggest that my right hon. Friend comes to the other end of Berkshire to look at what West Berkshire Council has done to try to get to the hardest to reach, particularly in rural areas? Only a fraction of the 72,480 homes do not have superfast broadband or will not have it in the next months. Instead of BT, the council is working with Gigaclear, which is a really effective delivery company.

Matt Hancock Portrait Matt Hancock
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West Berkshire is also extremely well represented, and testament to that is the fact that so much progress has been made on superfast broadband. I love the fact that there are now more and more different providers—not just Openreach and Virgin, but Gigaclear, Hyperoptic and others—that are working to get Britain connected.

Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
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I understand that the UK Government are likely to be taking up BT’s offer of a 10-megabits universal service obligation for the remaining 5% of premises, which is far behind the Scottish Government’s commitment of 30 megabits for 100%, so concerns have been raised about how the two will align. Will the Minister tell us whether he intends to discuss that with the Scottish Cabinet Secretary for the Rural Economy and Connectivity before reaching a decision? Will he take up the suggestion of a UK-wide working group?

Matt Hancock Portrait Matt Hancock
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Yes, I saw my Scottish counterpart last week, and I am going to Scotland in a fortnight to discuss the matter. The problem in Scotland is that we delegated the funding to the Scottish Government, who have contracted more slowly than any English county or the Welsh Government. They need to get on with it.

Neil Parish Portrait Neil Parish (Tiverton and Honiton) (Con)
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Gigaclear is also coming into Devon and Somerset in competition with BT to deliver more superfast broadband. However, the percentage of hard-to-reach people is still big, so we really must concentrate on getting superfast broadband to them.

Matt Hancock Portrait Matt Hancock
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My hon. Friend is dead right. I pay tribute to the work that Devon County Council and Somerset County Council have done together to deliver into some very hard-to-reach rural areas. In contrast to the Scottish contracting, they have been getting contracts out the door in order to achieve connectivity as quickly as possible.

Afzal Khan Portrait Afzal Khan (Manchester, Gorton) (Lab)
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4. What assessment she has made of the effect of the UK leaving the EU on the creative industries.

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Lucy Frazer Portrait Lucy Frazer (South East Cambridgeshire) (Con)
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5. What progress her Department has made on digital infrastructure investment for the next generation of mobile and broadband communications.

Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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As well as the current generation of technologies, we have provided more than £1 billion of funding to support the next generation of digital infrastructure, including investment in full-fibre networks and 5G testbeds, so that we are ready to ensure that we are ahead of the pack as 5G is developed.

Lucy Frazer Portrait Lucy Frazer
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Given the number of companies in and around Cambridge that specialise in technological innovation, the growth of agritech in east Cambridgeshire and the rural nature of Cambridgeshire as a whole, does the Minister think that South East Cambridgeshire would be an excellent place to hold some of the 5G trials?

Matt Hancock Portrait Matt Hancock
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My hon. and learned Friend has been assiduous in putting the case for Cambridgeshire, because of the combination of amazing high-tech growth in Cambridge itself and its rural hinterland, as an area where we can really test these technologies. I look forward to working with her and with Connecting Cambridgeshire to see whether we can make that happen.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
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As well as fibre and base stations, data is a key part of digital infrastructure. The Minister claims that his Data Protection Bill will put people in control of their own data, but it systematically strips various groups, including immigrants, of any control. What is he doing to ensure that people can actually control their own data?

Matt Hancock Portrait Matt Hancock
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I am slightly surprised by the question, because we have introduced the Data Protection Bill, which is currently in the other place, to give people much more control and consent over their data and to ensure that in the UK we have a system that supports the use of data in a modern way while strengthening privacy. No doubt we will have a debate when the Bill comes to this House, but it is great that the Bill has cross-party support.

Colin Clark Portrait Colin Clark (Gordon) (Con)
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Does the Minister agree that it is vital to invest in digital infrastructure if we are to raise productivity, particularly in rural areas like Gordon in northern Scotland?

Matt Hancock Portrait Matt Hancock
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Absolutely. Not only are we ensuring that we roll out the current generation of technology—we are pushing the Scottish Government to deliver on that—but for the next generation of technology we will deliver directly to local authorities in Scotland, rather than going through the Scottish Government, because we want to make sure that Scotland does not get left behind, as it has this time round.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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The Minister will be aware that some 63,000 premises in Northern Ireland cannot get a download speed of 10 megabits per second, and 94% of those premises are located in rural areas. Through our confidence and supply agreement with the Government, we secured an extra £150 million for broadband. Can the Minister indicate what discussions have taken place with the Assembly to ensure that the roll-out continues?

Matt Hancock Portrait Matt Hancock
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We have been putting a lot of work into trying to ensure that we get a faster roll-out in Northern Ireland, and I am happy to meet the hon. Gentleman to talk about the details. The passing of the Northern Ireland Budget Bill this week will help to deliver that, and it will help to ensure that we have the structures in place. I am determined to make sure that Northern Ireland continues to get connected.

Jo Stevens Portrait Jo Stevens (Cardiff Central) (Lab)
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6. What recent discussions she has had with S4C on its future funding.

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David Hanson Portrait David Hanson (Delyn) (Lab)
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9. What steps her Department is taking to tackle cyber-attacks.

Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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Protecting the UK from cyber-attack is a tier 1 national securing issue. We are investing £1.9 billion in cyber-security, and this year we opened the National Cyber Security Centre to lead the nation’s efforts.

David Hanson Portrait David Hanson
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The Prime Minister has been clear this week that the Russian authorities have been meddling in elections and using social media inappropriately. What extra steps is the Minister taking following those allegations, and has he raised them directly with the Russian authorities?

Matt Hancock Portrait Matt Hancock
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The Prime Minister has been clear—as she set out on Monday night, with more details provided by the National Cyber Security Centre on Tuesday—that we know what the Russians are doing and we are not going to let them get away with it.

Damian Collins Portrait Damian Collins (Folkestone and Hythe) (Con)
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Does the Minister agree that companies such as Facebook and Twitter should respond to the Digital, Culture, Media and Sport Committee’s request to supply any evidence of Russian-backed activity or fake news interfering with British politics to Parliament so that we can scrutinise it?

Matt Hancock Portrait Matt Hancock
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Yes. This is an incredibly important issue and the Select Committee is taking a lead to ensure that evidence is brought to light. We will of course investigate all the evidence we see and take action where appropriate.

Liam Byrne Portrait Liam Byrne (Birmingham, Hodge Hill) (Lab)
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There are now widespread reports of a wave of cyber-attacks, possibly backed by Russia, aimed at subverting our democracy. What conversations has the Minister had with social-media firms about the existence of evidence of Russian interference in the EU referendum and the general election?

Matt Hancock Portrait Matt Hancock
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We have discussions with social media companies on a whole range of issues, including this one, and we discuss the impact of social media on political campaigning around the world. Of course, we cannot solve an issue such as this without working with the social media companies, because they provide the platforms on which a lot of the communication occurs.

Liam Byrne Portrait Liam Byrne
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Well, that was a pretty high-level answer. If we are to stop the cyber-attacks on our democracy, it is important that the right agencies have the right powers. The Electoral Commission tells me that it does not have the power to investigate foreign spending in elections. Will the Minister assure us that the Government will co-operate fully with the Mueller inquiry into Russian cyber-attacks on democracy? Will he begin preparations now for an American-style honest ads Act, so that the right agencies have the right powers to stop these cyber-attacks in their tracks?

Matt Hancock Portrait Matt Hancock
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The right hon. Gentleman makes important points. At this stage we are considering all options and looking at all the evidence. We will say more when it is appropriate.

Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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T1. If she will make a statement on her departmental responsibilities.

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Imran Hussain Portrait Imran Hussain (Bradford East) (Lab)
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T6. In September, the NEC Group agreed to operate the Bradford Odeon as the largest mid-sized venue outside London. This could attract a further quarter of a million visitors to Bradford. Does the Minister agree that this shows a huge confidence in Bradford, and will he look at bridging the funding gap after the local authority has added extra funds? Will he also meet me to look at the restoration of this world-class site?

Matt Hancock Portrait Matt Hancock
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I shall be delighted to meet the hon. Gentleman. I know about the exciting proposals. We are very strong supporters of music venues in Bradford and across the country. This gives me the opportunity to warmly welcome the decision of the Met to abolish form 696, which has done so much to prevent a diverse range of live music. Significant pressure was brought to bear and, thankfully, the Met has now taken that decision. That is in London, but I also want to work with the hon. Gentleman to deliver music venues in Bradford.

Kevin Foster Portrait Kevin Foster (Torbay) (Con)
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The Minister responsible for tourism will be aware of the importance of the industry to Torbay. It may seem strange to say this in winter, but many people will soon be starting to think about their summer holidays. What work will he do to ensure that people think of coming to Britain’s great coastline next summer when they book their holiday at Christmas 2017?

John Grogan Portrait John Grogan (Keighley) (Lab)
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T7. Will Ministers look at the situation whereby the 2018 winter Olympics would in their entirety be a listed event, with the expectation that they would be shown on live free-to-air TV, as before, in their entirety? In fact, most of the live coverage will be on Discovery’s Eurosport without, as yet, any reference to Ofcom.

Matt Hancock Portrait Matt Hancock
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The listed events regime is incredibly important to ensure that the nation’s favourite sports are seen on public service broadcasting channels. We do not have a proposal to change the listed events regime as it is working pretty well, but I will look into the specific details mentioned by the hon. Gentleman.

Mims Davies Portrait Mims Davies (Eastleigh) (Con)
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I am passionate about getting more women into sport, especially girls in the Eastleigh constituency and across the UK. This Government have done great work with the “This Girl Can” campaign. We must, though, ensure that everyone taking part in sport is properly protected. What is the Department doing to ensure appropriate safeguarding for all children participating in sport?

Points of Order

Matt Hancock Excerpts
Tuesday 31st October 2017

(6 years, 6 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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Whether it is incompetence or discourtesy, one knows not, but I think that most people would be interested to know, because of course it could happen to the constituent of any Member. The Minister is poised ready like a panther to pounce, and it would be a pity to disappoint the right hon. Gentleman. Let’s hear the fella.

Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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Thank you, Mr Speaker. As the Minister responsible for this policy area, I would be very happy to meet the hon. Member for Torfaen (Nick Thomas-Symonds) and see what we could do to ensure that he gets the appropriate response to his constituents’ concerns.

John Bercow Portrait Mr Speaker
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Ordinarily I find that if one is sufficiently persistent and demonstrates by one’s behaviour—entirely lawfully, I hasten to add—that there is no question of one’s going away, an institution will, in the end, tend to think that it is best to respond. I have had some modest experience of these matters in the past when seeking to secure a refund for a very elderly constituent in relation, I think, to a satellite dish. In the first instance, the company thought it proper simply to ignore my representations, but I made approaches with notable and perhaps spectacular regularity, as a consequence of which, in the end—this was probably 15 years ago—my constituent was able to seek redress. I never secured anything remotely approximating an apology from the company, but in a sense that mattered not. My constituent got his refund, and I rather doubt that the company would have tried to play the same game, at any rate in relation to any of my constituents, again. If I was able to succeed, I am confident that the hon. Member for Torfaen (Nick Thomas-Symonds), with due persistence, will also be able to do so.

Leaving the EU: Data Protection

Matt Hancock Excerpts
Thursday 12th October 2017

(6 years, 7 months ago)

Commons Chamber
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Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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I beg to move,

That this House has considered Exiting the European Union and Data Protection.

The digital revolution through which we are living is bringing about the fastest pace of change that any generation has ever seen. With advances in technology accelerating, it is likely that this current pace of change will be the slowest that any of us will experience probably for the rest of our lives. This vast change brings with it big opportunities. We have opportunities to communicate, innovate and organise in ways that were simply inconceivable just a few short decades ago. It also brings with it challenges: to harness the technology for good; to mitigate harm; and to make sure that everyone can benefit.

Underpinning this revolution is the fact that the cost of storing and transmitting data has collapsed faster than at any time since the invention of the printing press, and perhaps at any point in history. The new technology then cut the cost of storing information from the cost of a handwritten manuscript to the cost of print, and the revolution now has cut the cost from that of print to the almost infinitesimally small cost of data storage. Data is therefore the fuel of this new digital economy, and getting the rules on data right is mission-critical for strength in the future.

As well as being fuel for change, data is a massive stimulant for our economic growth, jobs creation and innovation. The UK has Europe’s largest and most dynamic digital economy, attracting approximately £28 billion in technology investment since 2011. The UK also has the largest internet economy of all G20 countries, emphasising the fact that data is rapidly transforming our lives, and creating exciting and innovative opportunities right across the world. The impact is, of course, much broader than just in the tech industry itself. Data underpins social interactions: a Skype call to a family member on the other side of the world; our cultural collaboration, as performances are broadcast across borders; and almost every other part of economic activity, and almost all trade. The importance of the digital economy as a catalyst for job creation and innovation continues to increase exponentially, so it is vital that data is kept secure. Our approach to data protection as we leave the EU is straightforward: we wish to ensure the unhindered free flow of data between countries, if that data is held securely and privacy is respected.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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I very much agree with the points that the Minister is making and the ambition he is setting out. Will he commit to securing an adequacy agreement from the EU, so that the free flow of personal data, which he rightly says is important, can continue?

Matt Hancock Portrait Matt Hancock
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I pay tribute to the right hon. Gentleman’s extensive understanding of these issues, not only from his time as a Minister but since. His understanding is so good that he has correctly anticipated the next page of my speech. That is exactly what we are seeking, because it is strongly in the mutual interests of the UK and the rest of the EU that such an arrangement is put in place.

Having just set out my punchline, perhaps I can describe the build-up to it. The goal is for data to be unhindered when security and privacy are respected. It must be unhindered, so that trade and communication can be effective and so that we can innovate in the use of information, including through advanced techniques such as machine learning and artificial intelligence. But data can be unhindered only where it is appropriate for it to go—with data held securely and privacy respected—which means where there are high standards of cyber-security and data protection.

On cyber-security, the 2017 British Chambers of Commerce digital economy survey reveals that at least one in five UK firms were subject to a cyber-attack in 2016, with larger firms more likely to be hit. As more and more citizens, and the wider economy, rely so heavily on digital technology, it is vital to keep data safe from cyber-attack. On the other side of the coin from strong cyber-security is strong data protection. The UK has been a world leader in data protection for a long time, combining privacy with support for dynamic data-driven innovation. We are determined to ensure that, after our exit from the EU, the UK remains a global leader, promoting both the flow of data internationally and high standards of data protection.

For more than a generation, the Data Protection Act 1998 has been regarded as the gold standard in the world. That Act, which was based on European rules set out in 1995, was the result of a piece of work that started under the then Conservative Government, with the legislation enacted by the subsequent Labour Government. That demonstrates the cross-party approach that has been taken to data protection in the UK. Technology marches on, however. It is almost 20 years since the 1998 Act, but the legislation needs to be kept up to date in this changing world. The Data Protection Bill, which had its Second Reading in the other place earlier this week, will modernise data protection legislation, giving citizens more rights over their data while allowing businesses to use modern data management techniques. It offers greater transparency and accountability, thus giving people more reassurance about how their personal data is used by businesses and organisations. Increased accountability and public confidence in how data is used can enhance the digital economy for the benefit of all.

To return to the point made by the right hon. Member for East Ham (Stephen Timms), the Bill will prepare Britain for Brexit. It will extend the EU’s general data protection regulation—GDPR—and bring into UK law the law enforcement directive. It will extend the principles of GDPR into many areas of our domestic law, which will help to ensure that we prepare the UK for the future after we have left the EU. The implementation of the Bill will ensure that we preserve the concepts of the Data Protection Act that have served us so well. We will aim to ensure that the transition for businesses, individuals and charities is as smooth as possible, while complying with the GDPR and the law enforcement directive in full. That means we will be as well placed as possible to achieve the unhindered flow of data with the EU through something akin to the adequacy deal mentioned by the right hon. Gentleman. That is strongly in the interests of both sides in the negotiation.

Brendan O'Hara Portrait Brendan O'Hara (Argyll and Bute) (SNP)
- Hansard - - - Excerpts

The Minister said “something akin” to an adequacy deal. Will he explain what that might mean?

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Matt Hancock Portrait Matt Hancock
- Hansard - -

Yes, of course. Our future relationship with the EU will be bespoke. We want to make sure that the flow of data is unhindered, so we effectively seek an adequacy deal, but that is currently scheduled to be negotiated as part of the future relationship. Whether it is enacted through the formal EU mechanism of an adequacy deal or as part of the negotiation is, in a sense, immaterial. What matters is the unhindered free flow of data between the two regimes.

Wes Streeting Portrait Wes Streeting (Ilford North) (Lab)
- Hansard - - - Excerpts

No one would dispute the worthiness of the Minister’s intentions, but the UK will none the less cease to be a member of the EU’s safe data zone following Brexit, which will make it more difficult for banks and other businesses to transfer data between the two jurisdictions. Will the Minister give some reassurance to businesses that are having to make decisions between now and Christmas and into the first quarter of the new year that we will secure the transitional arrangements that businesses need and thereby give them certainty that they will be able to continue to operate as they do now, not only when a deal on our future relationship is signed, but in the crucial transitional period?

Matt Hancock Portrait Matt Hancock
- Hansard - -

That is our objective, but I have one difference with the premise of the hon. Gentleman’s question. He said that our leaving the EU will make things more difficult, but that is not necessarily so, because we seek a relationship that, in terms of the unhindered flow of data, is as high quality as the one we have now. We of course need to secure that as part of the negotiations, and we need to secure it as part of the transitional arrangements as well. Indeed, as we set out in a paper published in August, we are looking at an enhanced mechanism that is not just the normal adequacy deal that other third countries have, but one that enables continued technical engagement between the Information Commissioner and European bodies to ensure that our technical capabilities can continue to inform the future development of data protection standards inside the EU. I did not simply say that we seek an adequacy deal full stop, because we are looking into having a deal that not only reflects a normal third-country adequacy deal, but goes further and ensures that we have a stronger technical relationship between our regulator, the Information Commissioner and the European regulators.

Vicky Ford Portrait Vicky Ford (Chelmsford) (Con)
- Hansard - - - Excerpts

The UK has more than 10% of data flows, more than three quarters of which are with the EU, and more than 40% of the data centres in Europe are in the UK, so does the Minister agree that it is in the interests of European businesses to secure data adequacy—or data adequacy within a new free trade agreement—as well as in the interests of British businesses?

Matt Hancock Portrait Matt Hancock
- Hansard - -

I agree wholeheartedly and strongly with my hon. Friend, who is an expert in these matters, having just arrived in the House from the European Parliament, where she was a rapporteur on some of the key committees that made a number of the important decisions in this policy area. She is absolutely right. The unhindered flow of data will take place between two regimes that are harmonised, because we are bringing into UK law the GDPR, which is obviously European legislation. It is in the strong interests of the UK and the EU to ensure the unhindered free flow of data after Brexit.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
- Hansard - - - Excerpts

I thank the Minister for so generously giving way. I just wanted to press him on the point that he made about the engagement that will happen at a technical level. In practice, does that mean that our standards will be maintained in tandem with those in the EU, and that therefore there will be no difference between the two?

Matt Hancock Portrait Matt Hancock
- Hansard - -

What it means is that the arrangements are harmonised right now. Should the Data Protection Bill become an Act, as I sincerely hope it will—it does have cross-party support—our existing arrangements at the point of exit will be harmonised. What happens after that will depend on the negotiation of our future relationship, with the UK being sovereign. The point is to ensure that the technical details are informed by high-quality UK technical considerations and the capability of the Information Commissioner’s Office. This is, of course, subject to negotiation. We set that out as something we wanted to consider when we published the paper in the summer, but, as the right hon. Gentleman may have heard, we are not yet on to negotiating our future relationship, although we are looking forward to that happening.

During the summer, we published the future partnership paper, which sets out how we ensure the continued protection and uninterrupted exchange of personal data between the EU and the UK. The purpose of setting that out was to offer stability and confidence to businesses, public authorities, charities and individuals. My message to business in particular is very clear. We understand how important this matter is. We know that it is in the strong self-interest of the UK and the EU to get a good deal that involves the unhindered free flow of data. The new partnership should protect the privacy of individuals and respect the UK’s sovereignty, including the UK’s ability to protect the security of its citizens and to maintain and develop its position as a leader in data protection. Ensuring that we protect privacy while also allowing for the innovative use of big data so that the UK can be a world leader in artificial intelligence are the joint goals of the Data Protection Bill.

Darren Jones Portrait Darren Jones (Bristol North West) (Lab)
- Hansard - - - Excerpts

On the point about what the general data protection regulation provides as an opportunity, does the Minister recognise that it will actually be implemented through a statutory instrument under the European Union (Withdrawal) Bill? Does he agree that we should therefore have a debate in the House on that SI when we get the opportunity?

Matt Hancock Portrait Matt Hancock
- Hansard - -

I am sure that the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), will have heard that point—this is a bit like a return to business questions from earlier. Parliamentary procedure is a matter for that Bill, but the hon. Gentleman has made his case. It is very important that the element of the GDPR that is directly applicable and therefore not in the Data Protection Bill is brought into UK law. However, we have designed the Bill so that that can slot directly in, meaning that once we leave, the UK should have a fully consistent, full-spectrum data protection regime under our legislation.

The new relationship should also not impose unnecessary additional costs on businesses and must be based on the objective consideration of evidence. Furthermore, because many of these issues are technical, we will continue to seek ongoing regulatory co-operation between the EU and the UK on current and future data protection issues. By doing that, we will build on the opportunity of a partnership between global leaders on data protection and continue to protect the privacy of individuals. As the paper that we published in the summer reiterates, it is important that we provide clarity and certainty for businesses and individuals as soon as possible, so that data flows are not disrupted when the UK leaves the EU. In addition, this is part of a wider global debate about the flow of data, because it is also incredibly important that we get right our data relationship with the United States, Japan and others.

Tom Brake Portrait Tom Brake
- Hansard - - - Excerpts

The Minister is being very generous with his time. I am sure that he is aware that the people of Gibraltar are concerned about the impact of the disruption of data flows. Gibraltar holds many data servers, and people there are very concerned that there might be longer-term impacts on their businesses. Can the Minister say anything about that?

Matt Hancock Portrait Matt Hancock
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Gibraltar is, and will continue to be, part of the United Kingdom. The Under-Secretary of State for Exiting the European Union leads on issues relating to Gibraltar. He will have heard those concerns and will be able to respond to them in detail. In a sense, all this shows why it is so important to get this agreement right.

Tom Brake Portrait Tom Brake
- Hansard - - - Excerpts

I thank the Minister for giving a detailed response. I just wanted to put on record my interest in relation to Gibraltar so that it is not missed.

Matt Hancock Portrait Matt Hancock
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I am glad that I gave the right hon. Gentleman the opportunity to do so.

A strong relationship on data is beneficial to citizens as it will reassure them that their personal data is subject to robust protection. Maintaining the flow is also important. Once we have left the EU, we will continue to play a leading global role in the development and promotion of appropriate data protection standards with trading partners right around the world.

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

I am glad that the Minister is committed to seeking this adequacy agreement. Does he recognise that one step that will make that a bit harder—perhaps significantly harder—is the fact that under the terms of the European Union (Withdrawal) Bill, article 8 of the European charter of fundamental rights will no longer be part of UK law? That creates uncertainty about how our data protection law will work. Appeal decisions frequently refer to the actual article, which is part of UK law at the moment. Will he therefore support amendment 151 to the Bill, which would oblige the Government to put back into law the clear assertion that everyone has a right that their personal data is protected?

Matt Hancock Portrait Matt Hancock
- Hansard - -

I thought that the right hon. Gentleman might raise that. I understand his amendment and the reason behind it, which is to ensure that what we are trying to achieve is achieved. However, the removal of the charter from UK law should not affect the substantive rights of individuals when their data is processed, because the charter is not the source of the rights contained within it. The charter was intended only to catalogue rights that already exist in EU law. As he knows, there is not a charter of fundamental rights in the same way in UK law, and it is not necessary. Although I agree with the purpose and intent of what he is trying to achieve, which is to make it as likely as possible that we achieve the adequacy deal and the high-quality arrangements that we are seeking, the amendment is not necessary because of the nature of the charter.

I hope that I have managed to answer Members’ questions. Although I look forward to the debate, I think that we can see strong cross-party agreement on the importance of a high-quality data relationship with the EU once we have left, on ensuring that that works for citizens, businesses and individuals, and on ensuring that we can build on that relationship, which underpins so much in our modern economy.

Kevin Brennan Portrait Kevin Brennan (Cardiff West) (Lab)
- Hansard - - - Excerpts

First, let me apologise for my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) who has recently joined our team and would normally be speaking on these matters. He is currently fulfilling a prior obligation to speak at the Council of Europe in Strasbourg. It is nice to have him on our team as we served together in the Cabinet Office in government, along with my hon. Friend the Member for West Bromwich East (Tom Watson), and we all look forward to serving in government again very soon in the Department for Digital, Culture, Media and Sport.

If I may, I will just correct the Minister, who inadvertently misinformed the House. Of course, Gibraltar is not part of the United Kingdom. It is an overseas territory. It is technically part of the European Union, although it is obviously excluded from the customs union and the common agricultural policy.

Matt Hancock Portrait Matt Hancock
- Hansard - -

The hon. Gentleman is quite right. Of course, Gibraltar is part of the UK family. I should have been clearer about that, but I am glad that we have cleared that up.

Kevin Brennan Portrait Kevin Brennan
- Hansard - - - Excerpts

As ever, the Minister is modest enough to accept when he makes a mistake and correct the record.

There are few debates that are more important than those concerning trade, especially in the context of the decision of the UK to exit the European Union with all the impact that that could have on the UK economy. As the Minister quite rightly said, in the 21st century there is nothing much more important to trade than data. As we have heard, 43% of EU tech companies are based in the United Kingdom and three quarters of the UK’s cross-border data flows are with other European Union countries. These data flows are essential for UK trade. Approximately half of all trade in services is enabled by digital technologies and the associated data flows.

Effective modern data protection laws that set down strong rights and protections are vital if the public are to have any trust in the use of personal information within the digital economy, the delivery of public services and the fight against crime. Ensuring that the public can trust that their data is handled safely, whether in the public or private sector, is important for us all. We need to get the Data Protection Bill right—as the Minister pointed out, the Bill has been introduced in the other place and is there as we speak—to implement the new European Union rules on data protection contained in the general data protection regulation. If we do not get it right, people will not benefit to the fullest extent from the new digital services that are coming online all the time. I am sure that the Minister will be pleased that the Opposition welcome the Bill. We deeply regret that the Government opposed our previous attempts to strengthen data protection at the time of the passage of the Digital Economy Act 2017, just a few short months ago, but better late than never. In scrutinising the Data Protection Bill, we will ensure that it is not too little, too late.

So far, the Government have talked the talk about their commitment to unhindered, uninterrupted data flows post-Brexit, but the Data Protection Bill does not really set out fully how they plan to deliver on that promise. Even if the Bill succeeds in bringing UK law into line with the EU’s data protection framework by the deadline of 25 May 2018, it does not necessarily mean that the Bill provides for the future. On leaving the EU, the Government will need to satisfy the European Commission that the UK’s data protection framework provides an “adequate level of protection”. The Government and the Minister today seem to be saying that achieving a positive adequacy decision will be easy, but it might not be as easy as the Minister indicated.

Under article 45 of the general data protection regulation, the European Commission is required to consider a number of issues including, among other things, existing surveillance practices. As Lord Stevenson said in the other place on Tuesday, several commentators have indicated that the current activities of British intelligence services could

“jeopardise a positive adequacy decision”

since data protection rules

“do not offer an equivalent standard of protection to that available in the rest of the EU.”—[Official Report, House of Lords, 10 October 2017; Vol. 785, c. 129.]

Lord Stevenson asked the Government how they might square this circle, but unfortunately received no answer. I understand we will have the intense and unusual pleasure of a second contribution from the Minister in this debate—I foreshadow that by indicating to the House that I will also seek permission to respond on behalf of the Opposition in a similar fashion—so perhaps he could answer that question during his closing remarks.

The Government seem to have lost sight of the need to ensure continuity during the transition period and beyond. They must have measures in place to reassure all those businesses that have taken advantage of the UK as the gateway to Europe that they will pass the adequacy test and ensure that stability and certainty. Given that we need a new data protection regime for sharing data across the channel and the Irish sea, we may as well get this new regime right for consumers as well as businesses. At a time of increasing concern about the misuse of personal data by certain companies, is not there a need for a far more stringent regulatory structure than that contained in the Data Protection Bill?

Colleagues in the other place have already remarked that the tech giants that dominate the digital economy and the market for data have, for too long, got away with portraying themselves as purely neutral platforms. They are not, as each of their business models—not to mention their share value—is predicated on the data flows that they generate and monetise. It has become a cliché, but in a very real sense data is the new oil in the economy.

We should also speak about children in the context of data protection. The Minister did not mention this part of the Government’s plans in his remarks, but I hope he refers to it when he sums up. Children and young people are at the leading edge of the online world, with 75% of 10 to 12-year-olds and 96% of 13 to 18-year-olds using social media sites, with Facebook ranked at the top. Sadly, this has resulted in children and teens being treated as data assets by business, with their personal data stolen and sold without informed consent on a regular basis. That cannot be right. The Data Protection Bill represents an opportunity to right this wrong, but the current drafting of the Bill does not give us much cause for hope in that area.

The Government have chosen to derogate from the general data protection regulation, as the Minister mentioned, by setting the minimum age for a child consenting to the processing of personal data at 13 years of age, rather than 16. Why have they chosen to derogate in that fashion? As John Carr, a member of the executive board of the UK Council for Child Internet Safety, which was set up under the last Labour Government, has noted, perhaps the age of 13 was chosen because when Ireland—where the big social media companies are based—decided on 13 years of age, the UK’s decision was all but irrelevant. Does the Minister agree with that? If that is not the case, what is his explanation for why the Government chose to make this derogation? They claimed in their statement of intent published in August:

“Child online safety is one of the top priorities for this government”.

If so, 16 would have been a better age, as Sonia Livingstone, professor of social psychology in the department of media and communications at the London School of Economics, has argued.

Some people might argue that a lower minimum age is good for younger people’s participation in the digital world, but evidence from the regulator, Ofcom, shows quite clearly that fewer than half of 12 to 15-year-olds can identify an online-sponsored result, let alone understand how companies exploit their personal data. If the Government insist on staying the course with regard to this derogation, they must at the very least guarantee to the House today that they will ensure a significant increase in media education and digital literacy among young people. I hope that the Minister will refer to that in his response. This returns us to the responsibilities of social media and other online businesses.

While we may debate where the minimum age of consent should be fixed, the fact that the Bill does not place any requirements on these companies to prevent under-age access to their services is a glaring oversight, especially from a Government who claim that child online safety is one of their top priorities. The Leader of the House so memorably described Jane Austen in this Chamber not so long ago as

“one of our greatest living authors”—[Official Report, 20 July 2017; Vol. 627, c. 1004.]

To paraphrase Jane Austen, it is a truth universally acknowledged that the Government are making a complete Horlicks of the article 50 negotiations, as we saw again just this morning. At least, they have now taken up our policy.

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Matt Hancock Portrait Matt Hancock
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Just on a point of English language, it is clearly not a truth universally acknowledged, because I do not acknowledge it.

Kevin Brennan Portrait Kevin Brennan
- Hansard - - - Excerpts

Well, at least the Minister did not claim that Jane Austen was our greatest living author—I will give him credit for that.

I give the Minister and the Government credit for taking up our policy of having a transitional period with regard to Brexit to give themselves a little more time. The price of getting data protection wrong would obviously be enormous, because so many companies rely on transmitting data across the single market.

For many years, we have talked of the four freedoms—the free movement of goods, services, capital and people—but there is a fifth freedom, because, in reality, we have created one of the world’s leading regimes for data transfer, which has allowed our tech companies to grow, flourish and prosper. It would be a disaster if any division, dithering or incompetence around the Brexit negotiations now imperilled that achievement.

The Government have set themselves a very tight schedule for passing the Bill into law before the end of April 2018. As I have indicated, the Opposition will support the main principles of the Bill, but there is a great deal of work still to be done, with several areas needing to be scrutinised, and the Government need to be prepared to amend the Bill to rectify some of the inadequacies I have indicated during my remarks.

All of us in this place owe it to the public, and especially to children, to get this legislation right. We cannot afford to fail just because of the dysfunctionality at the heart of the Government, and I hope the Minister will not be complacent on that score.

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Brendan O'Hara Portrait Brendan O’Hara (Argyll and Bute) (SNP)
- Hansard - - - Excerpts

At the start of this week, the Prime Minister told the United Kingdom to be prepared for the possibility of a no-deal Brexit. The warning was clear and unambiguous that with gridlocked negotiations a no-deal Brexit was becoming increasingly likely. Of course, the effects of a no-deal Brexit would be catastrophic. The consequences for our economy, our trade and our EU citizens are obvious, and they have been well documented. Less obvious, and among the multitude of hugely important issues that rarely make the headlines, is the impact on data protection of the UK leaving the European without a deal.

Data protection has been described by The Economist and others as:

“The world’s most valuable resource”.

The hon. Member for Cardiff West (Kevin Brennan) described data as “the new oil”. Currently, the UK Government define data protection as the controls on how personal information is used by organisations, businesses or the Government. Everyone responsible for using data has to follow strict rules, and they must make sure that the information is used fairly and lawfully. Information that is held on individuals can include their name, address, credit history, employment history, salary details and even internet browsing history. I am sure that right hon. and hon. Members would wish some, if not all, that information to remain as secure as possible. Robust and strict data protection is therefore absolutely essential to avoid any improper use of that information, whether for online fraud or identity theft, and to keep it from falling into the hands of people or organisations with which we would rather not share it.

Data protection may not be something that we think about every day—indeed, it may not even cross our minds from one year to the next—[Interruption.] Perhaps that is not the case for my hon. Friend the Member for Glasgow North (Patrick Grady). Whether we think about data protection on a daily basis or not, its importance is not diminished. That is why it is absolutely vital that the level of data protection we currently enjoy as EU citizens is guaranteed on day one of Brexit, so that businesses and individuals can continue to rely on existing data flows. It is no exaggeration to say that millions of jobs across Europe rely on data protection and data processing to a greater or lesser extent.

As the Minister acknowledged, the security we receive from our data protection legislation already has a distinctly European flavour, originating as it does from the 1995 EU data protection directive, which was adopted into UK law in the Data Protection Act 1998. Since then, the way in which we create, collate, access and use data has changed enormously, as has the amount of data we create as individuals and as a society. In recognition of that, in 2016 the EU introduced a new legislative framework for data protection: the general data protection regulation, of which we have heard so much, and the police and criminal justice directive. Both those pieces of legislation form the basis of the Data Protection Bill that is in Committee in the other place. The regulations will apply in member states from 2018, and EU member states are required to transpose the directive into national law by the same date.

The Scottish National party agreed with the Minister when he said in February that the GDPR was a “good piece of legislation”. We were pleased that it was included in the Queen’s Speech and that the Government made it clear that our current data protection framework would be amended and made compatible, so that we can adopt the new regulations. We very much welcome the Government’s move to implement the GDPR, giving people more power and control over their own data.

In normal circumstances, I believe that that piece of legislation would be relatively uncontentious. However, as it has done and I believe it will continue to do, Brexit makes the subject of data protection hugely problematic. If we are to leave the EU in March 2019, what is the future for our newly agreed and freshly implemented cross-border, pan-European arrangement with our EU partners? What will be the consequences for businesses and individuals if the UK suddenly finds itself on the outside without a deal to continue the free flow of data not just with the European Union, but with the safe nations with which the EU has secured a reciprocal deal? At a stroke, could the United Kingdom lose its right to exchange data with the United States, a nation on which the Secretary of State for International Trade and President of the Board of Trade seems to be pinning so much hope for our future trade?

We are in an era in which geographical boundaries for data do not exist. Today, as probably every speaker in this debate has said, almost half the large EU digital companies are based in the UK, and a remarkable 75% of cross-border data flow out of the UK is with EU countries. We also have significant data flow with the United States, which occurs because we enjoy access to the EU’s privacy shield agreement. There is no such thing as sovereignty where data is concerned. Currently, we are a signed-up member of an international network committed to safeguarding data. In this global economy, the unfettered free flow of data across international boundaries safely and without delay, cost or detriment is absolutely essential, not just for individuals and businesses but for agencies that need to work across international boundaries. We have heard about many of those agencies today, and they deal with matters such as crime prevention, disease control and national and international security.

For the UK to be able to take full advantage of the continued free flow of data with the rest of the European Union post Brexit, the most straightforward route would be for the EU to issue an adequacy decision. An adequacy decision, as we have heard, is given to a third country—a country that is outside the EU and the EEA—to allow it to operate securely and freely within the framework of the GDPR. It can be given to countries that meet the required standard of data protection, a criterion that currently applies to the United Kingdom. The problem is, however, that an adequacy decision is designed for third countries, and the UK is not—yet—a third country. Indeed, it will not be one until the end of the Brexit process. There is no existing legal mechanism to enable the EU to award an adequacy decision to a country in advance of its leaving the EU. As the leading data protection lawyer, Rosemary Jay, said, the EU has to go through a legislative process, and it is simply not in the EU’s gift to do this in an informal way. I cannot comprehend what the Minister meant when he said that he sought “something akin to” an adequacy deal.

Matt Hancock Portrait Matt Hancock
- Hansard - -

The negotiation of the EU’s future relationship with the UK is not some sort of informal approach; it is a very formal set of talks. We hope that it will lead to a good deal, which we hope will include this area. That is exactly what I meant.

Brendan O'Hara Portrait Brendan O'Hara
- Hansard - - - Excerpts

I thank the Minister for his point, but I stress again what Rosemary Jay said: the Commission has to go through a legislative process, and it is not within the EU’s gift to do this in an informal way. There could be a further complication in the UK’s achievement of an adequacy decision. As the hon. Member for Cardiff West said, ahead of granting an adequacy decision the European Commission is obliged to consider a variety of issues, such as the rule of law, respect for human rights and legislation on national security, public security and criminal law.

That being so, there is a very strong suggestion that the Investigatory Powers Act 2016 may jeopardise the ability of the UK to receive a positive adequacy decision. The Investigatory Powers Act has already been accused of violating EU fundamental rights. Eduardo Ustaran, the internationally recognised expert on data protection law, has said:

“What the U.K. needs to do is convince the Commission—and perhaps one day the European Court of Justice—that the Investigatory Powers Act is compatible with fundamental rights. That’s a tall order”.

While the Government are understandably desperate to secure an adequacy decision, the harsh reality is that a lengthy and challenging legal process may have to be undertaken before that happens.

I fear the Government are in denial about this. Indeed, when questioned by the Culture, Media and Sport Committee back in February about what would happen on the day after Brexit if we do not have an adequacy decision in place, the Minister said:

“we seek unhindered data flows but we want that to happen in an uninterrupted way—that is to say, on the morning on which we have left the European Union, it is very important that our data rules work, so that there is an uninterrupted system in place”.

He is absolutely right—I could not agree more—but that did not answer the question about what happens if we do not have such an adequacy decision in place on the day we leave.

Just yesterday, at the Digital, Culture, Media and Sport Committee, I asked the Secretary of State a very similar question about the need to have an adequacy decision in place when the UK leaves the EU. Her answer was that she was

“very hopeful of getting that deal”.

I am sure she is and I wish her well, but at the moment there is no deal in place. The longer negotiations are at a stalemate, while we continue without the legal mechanism to get a third country deal, and, given the issues in relation to the Investigatory Powers Act, securing the agreement the UK needs and absolutely desires is becoming less and less likely.

Another potentially huge problem arises if we do not secure an adequacy decision by the day on which we leave the European Union, because not only will we be outside the EU and isolated from the other 27 member states, but we will also be outside the EU-USA privacy shield agreement. The consequences of that happening may be unthinkable for UK businesses and individuals, but it is absolutely incumbent on the Government to think the unthinkable and to be adequately prepared for it. Putting all their eggs in the one basket of hoping to secure a negotiated adequacy decision is a very high stakes game, so I again ask Ministers: where is the plan B should there not be an adequacy decision? What assessment has been made of the UK not having such a decision in place on the morning on which we leave the European Union, and when will Members of the House be able to see that plan B and that assessment?

Nobody wants such a situation to arise—we want a deal to be struck—but even if the Government’s faith is rewarded and we do secure an adequacy decision, the UK faces another problem. As the GDPR evolves over time, as it surely will, the UK, to maintain its membership, will be required to amend its data protection law to keep in line with European law. The EU charter of fundamental rights and freedoms is now central to EU data protection law, and the charter is interpreted by the European Court of Justice, yet clause 6 of the European Union (Withdrawal) Bill quite clearly states that EU courts will cease to bind UK courts and tribunals following withdrawal. I suspect that if the UK does manage to secure an adequacy decision, to keep it, it will have to fall into line with the European Union Court of Justice.

As I said at the start, we welcome the Bill as a move to ensure that people have more control over their own data and to bring the legislation into line with the huge technological advances since the 1998 Act. We welcome the commitment to implementing the GDPR and to the UK remaining fully involved in protecting EU citizens’ data post-Brexit. We question, and we will continue to question, the Government on how they can take this forward when an adequacy decision is not guaranteed and while there are still unresolved issues about the Investigatory Powers Act, at the same time as they are seeking to remove the UK from the jurisdiction of the European Court of Justice.

Of course, it does not have to be this way. The best, easiest and most straightforward way to ensure that there are no disruptions to data flows between the UK and the EU after Brexit is for the United Kingdom to remain a full member of the single market. The agony and the fear for millions of businesses and individuals of being cut off from both Europe and America if we do not secure an adequacy decision could be avoided by our staying in the single market. Why put people and businesses through this?

After all, no one in any of the nations of the United Kingdom voted to leave the single market. In fact, two of the four nations of the United Kingdom voted to remain in the European Union. We are in this situation because of the Conservative party’s extreme interpretation of Brexit, and that is why we are now actually having to prepare ourselves for what, hitherto, was unimaginable—a no-deal Brexit, with the catastrophic consequences that it will inevitably have for our society and our economy.

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Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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I am pleased to follow the hon. Member for Stirling (Stephen Kerr) and will pick up on one or two of his points.

David Cameron has a great deal to answer for. To win support from his party’s right wing for his leadership bid in 2005, he promised during the leadership campaign to withdraw Conservative MEPs from the European People’s party, the main centre-right grouping in the European Parliament, and he delivered on that commitment after the European elections in 2009. By pushing his MEPs to the fringes in the European Parliament, he significantly reduced British influence there and more widely in the EU’s structures, which meant that Britain did not get its way in Europe on an increasing number of issues, by contrast with previous Governments, both Labour and Conservative. The referendum result—the decision to leave the EU—was the inevitable outcome of that spiral of loss of influence, kicked off by his commitment in 2005.

One way to look at the referendum is as a choice between sovereignty and prosperity. In the referendum, the country chose sovereignty, and of course that was a wholly honourable choice to make, but we need to be honest now about the resulting loss of prosperity. Leaving the EU, if it is seen through in the way envisaged now, will make us poorer. Ministers need to stop pretending otherwise, for their own sakes, as well as for the sake of the country, because once the reality becomes clear, the punishment inflicted on the Conservative party will be all the greater if people have not been told what is ahead.

An official in Germany put it to me like this a few months ago: “If you want the benefits of the single market, you have to obey the rules of the single market.” Ministers continue to tell us that we can have the benefits but no longer obey the rules, but that will not be the outcome of these negotiations. It could not possibly be because, if it was by some fluke the outcome, Germany and lots of other Parliaments in the EU would surely vote it down when asked to decide on the deal.

This week, we have at least had some recognition of that reality from the Prime Minister. She has announced that in the transition period from April 2019 we will continue to obey the rules. The writ of the European Court of Justice and the free movement of people will continue into the transition period. As far as I could understand it, the announcement in her statement on Monday seemed to be that we would stay in the single market and the customs union, other than in name. I presume that this is a face-saving device to avoid the embarrassment of a clear U-turn. It would be much better to be honest and commit to staying in the single market and the customs union during the transition period at least, as argued by my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), the shadow Secretary of State for Exiting the European Union, and my right hon. Friend the Leader of the Opposition. The Prime Minister’s announcement does at least hold out the prospect of delaying the damage to our prosperity for a couple of years, but we need to recognise that that will not avoid the damage to our prosperity altogether.

The challenge is perfectly illustrated by the subject that we are debating this afternoon, and I welcome the fact that the Government have given us the opportunity to have this debate. Mr Speaker characterised my interest in a different area of policy earlier this week with the phrase, “some would say anorakish”. How much more that applies to the area of policy that we are debating this afternoon. The Minister was absolutely right in his opening remarks to underline just how important this policy area is for our prosperity. It underpins the wellbeing of the economy. Indeed, there is growing evidence that one of the reasons why we have failed on productivity growth in the UK in the past few years by contrast with other countries is that the internal management of companies in the UK has been digitised to a lesser extent than elsewhere. If we are to make progress on that—it is vital for our prosperity that we do—then data communications will be even more important in the future than they have been in the past.

I very much enjoyed and appreciated the contribution of the hon. Member for Bromley and Chislehurst (Robert Neill), who chairs the Select Committee on Justice. He underlined, quite apart from the economic considerations, how vital it is for our security and safety that we can continue to communicate personal data with other European Union countries.

The Minister was right to make the point at the outset that our data protection laws in the UK originated with an EU directive in which the UK was very influential. The Conservative Government who negotiated that directive had a powerful voice at that time. Sadly, as I explained earlier, more recent Conservative-led Governments have had a much less powerful voice.

Matt Hancock Portrait Matt Hancock
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I agree with the right hon. Gentleman that the British MEPs had a strong influence on the GDPR as it was developed in Europe. One of the reasons the GDPR is a good piece of legislation that we can happily bring into UK law is because of that influence. We had that influence after we had left the EPP, so perhaps he will withdraw his earlier comments. As for this argument about lack of influence, the chair of the justice committee in the European Parliament is a British Labour MEP, so is he saying that the lack of influence that he describes is because of the Labour party?

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

No, certainly not. I am delighted that my Labour colleagues in the European Parliament have retained their place in the Socialist group and therefore their influence. The problem for Britain has been that, by leaving the EPP, Conservative MEPs have had much less influence. I am not saying that they have not had any influence—that is not at all the point I am making—but they have had a great deal less. Therefore, the British Government have been much less able to get their way in Brussels than previous Conservative and Labour Governments, and that is what inexorably led to the referendum result.

The key foundation stone for data protection regulation in Britain has been article 8 of the European charter of fundamental rights, which states:

“Everyone has the right to the protection of personal data concerning him or her.”

The European Union (Withdrawal) Bill—the Minister and I had an exchange about this earlier in the debate—removes the charter of fundamental rights from UK law, so article 8 will no longer apply. The Select Committee on Exiting the European Union took evidence on that point from lawyers yesterday. Sir Stephen Laws, former first parliamentary counsel, argued that the removal of article 8 was a good thing because nobody can quite know exactly what it really means, so that we end up with judges deciding in appeal cases, which makes the law uncertain. He made a very reasonable case. Far better, he said, for Parliament to decide the detailed law and regulations, so that everyone knows where they stand.

However, Dr Charlotte O’Brien of York Law School pointed out that in practice, judges deciding points of data protection law in Britain often refer explicitly to article 8. A reading of their judgments suggests that article 8 frequently sways the decisions that they reach, so it is likely that its removal will mean that their future judgments will be different from those that they have made up until now. We can have an interesting debate about which arrangement is better, and, as I have said, I think that Sir Stephen Laws made a perfectly good case. Our problem, however, is that we have to achieve a declaration from the European Commission that UK data protection law is adequate. That is crucial for the future of our economy.

Matt Hancock Portrait Matt Hancock
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A point that I hope will reassure the right hon. Gentleman is that EU jurisprudence will be brought into UK law through the European Union (Withdrawal) Bill, although EU jurisdiction will no longer continue.

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

The proposal is that article 8 will not be there any more. The problem is this: where in the European acquis, which is being brought into UK law, is the clear statement that everyone has the right to have their personal data protected? It is not there, and if it is not there, it will be significantly harder for the European Union to recognise that UK data protection law is adequate.

Matt Hancock Portrait Matt Hancock
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This is an incredibly important point, so I am grateful to the right hon. Gentleman for allowing me to intervene. The right is there: it is in the GDPR, which will be brought into UK law through the Bill.

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

The problem is that it is not. There is no clear assertion anywhere in UK law—other than, at present, in article 8—that everyone has the right to have their personal data protected. As I have said, and as was said in the Select Committee yesterday, judges, when making judgments on these matters in appeal cases, often refer to the wording of that article to reach their conclusions.

There is a perfectly good case for arguing that it is better not to have these slightly vague declarations, because the law is clearer if it is all spelt out in legislation that has gone through Parliament, but our problem is that that is not how the matter is looked at in Brussels. Over the next year and a half or so, the Minister has to persuade people in Brussels that our data protection is adequate, and if we no longer have a clear statement in UK law that everyone’s personal data is protected, that task will be a good deal harder.

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Darren Jones Portrait Darren Jones
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I agree with that sentiment. Dare I say it, but very few Government Members are present? Although my right hon. Friend the Member for East Ham said this may be an anorak issue, it is in fact crucial to our economy, our new civil liberties and the type of country we want to live in. We should be having such a debate, and I again restate our request that we should do so in this House not only on the Data Protection Bill, but on the GDPR statutory instrument.

I am looking forward to the Data Protection Bill and I am excited about the Committee stage, but I will take this opportunity to address some of the strategic issues that many Members have mentioned: first, the basis of data protection law in the European charter of fundamental rights, on which I will not revisit the arguments already made but will, I hope, add something interesting and new to the debate; secondly, the incoherence between the necessity to mirror EU law and the Government’s illogical policy approach on Brexit; and lastly, the rights and protections of children.

First, as we have heard in this debate, the Government have made it clear that the European charter of fundamental rights will be revoked under the European Union (Withdrawal) Bill. The Minister said that the GDPR in effect says the same thing, but article 8 of the charter, which underpins the GDPR, is referenced in article 45 of the GDPR. If the GDPR is referencing out to statutory, fundamental rights and we take that anchor away, we must replace it elsewhere. I will therefore support the amendment to the Bill proposed by my right hon. Friend the Member for East Ham, to ensure that that happens.

Matt Hancock Portrait Matt Hancock
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I am sorry to intervene, but I have already explained that because European jurisprudence is being brought into UK law, references to the charter in existing case law will be brought into UK law, which satisfies the hon. Gentleman’s demand.

Darren Jones Portrait Darren Jones
- Hansard - - - Excerpts

With respect to the Minister, I am not persuaded that that will be agreed by the European Commission. Of course ECJ jurisprudence will be Supreme Court jurisprudence in this country and will be referenced by judges in that Court, but without a statutory anchor ensuring that the fundamental right is, in their view, in favour of the consumer and the data subject, we risk divergence on the application of the rules.

I want to mention the right of collective address. Under the GDPR, bodies can campaign and bring actions against data controllers in the interests of consumers and data subjects as a whole. This works very well in other areas of the law in this country, such as the Consumer Rights Act 2015. Under that Act, Which?, as a private enforcer against unfair terms, can act on behalf of consumers. For some reason, the Government have decided not to adopt such an approach in the Data Protection Bill. I look to the Minister in his closing remarks to explain why he does not think organisations should be able to bring actions for collective redress on behalf of data subjects. Many data subjects may not be able to enforce their own rights as individuals but rely on such organisations to act in their interests.

On fundamental rights more broadly, I am still confused. I hope that the Minister will provide clarification in this final debate of the week by showing how, although we must maintain fundamental rights, we are also removing them. It is much like being in the single market and leaving it, much like being in Europe but not being in Europe, and much like protecting fundamental rights and not protecting them. What is the answer? The Data Protection Bill seeks to ensure transparency and accountability, and in the light of that theme, I hope the Minister will respond on fundamental rights.

Secondly, if we are successful in seeking an adequacy agreement, it is then for us to maintain equivalence as part of that developing area of EU law, as other Members have said. That will require the UK to adopt the decisions of the newly created European Data Protection Board, which is subject to the jurisprudence of the European Court of Justice. Yet the Government insist that we can be both in and out, which is ludicrous, as I have said. They also say that we can be in it without being subject to the rules, but we know that that is a fallacy. Will the Minister confirm whether the Government’s policy is to get an adequacy agreement either this year or next year, only for it to be revoked in a few years’ time because we do not want to be subject to the jurisdiction of the ECJ? We must be subject to its jurisdiction if we are to maintain adequacy, but we will be forever on the cliff edge of being concerned that adequacy will be removed—as it was from the United States of America by the European Commission—and that is the risk our businesses, our consumers, our charities and others fear.

Lastly, I wish to address the rights and protections of children. I will return to this topic in detail on Second Reading. It is a great disappointment that the European Union has backtracked and pulled back slightly on this issue, so that instead of having a harmonised rule saying that children deserve extra protections—especially in the context of understanding how their use of online products and services means giving over personal data, how that personal data is profiled and how advertising is targeted on children—the European Union decided to provide member states with a range of ages to choose from, from 13 to 16.

As my hon. Friend the Member for Cardiff West (Kevin Brennan) said, the UK opted for the age of 13 as the minimum GDPR requirement. I think that is the wrong decision and, according to polls by YouGov, 80% of parents agree with me. However, I encourage us to be intelligent about the way we regulate to support children. It is obvious that if we put in these frameworks children may find ways to use the systems anyway. No doubt there are a number of children under the age of 12 and 13 using social media sites today. We must make sure that the regulation is—dare I say?—with the kids. It needs to make sense and it needs to work properly. I look forward to having that debate and no doubt a shared aim.

As we prepare for the arrival of the Data Protection Bill, this is the first glimpse of a major piece of proposed legislation that highlights the enormous challenges with implementing Brexit. It is not just an issue of primary law for many of the issues we have talked about today; it is about clear rules and about compliance by those subjected to it. On clear rules, I refer to comments made by the Baroness Lane-Fox on Second Reading in the other place, when she pulled out a particularly entertaining section the Data Protection Bill, which reads:

“Chapter 2 of this Part applies for the purposes of the applied GDPR as it applies for the purposes of the GDPR… In this Chapter, ‘the applied Chapter 2’ means Chapter 2 of this Part as applied by this Chapter”.

Other than that sounding like something out of the “Yes Minister” comedy series, it says to me, as a former lawyer, expense. People will be concerned—quite frankly, charities and other groups will be terrified—about getting this wrong. They will have to endure huge compliance costs in trying to implement what should be clear rules into their business.

Following on from what the hon. Member for Chelmsford (Vicky Ford) said—she is not in her place—on compliance and guidance from the ICO, I stress this point with the Minister: many businesses want to do the right thing. They wait on guidance from the ICO and others to tell them what the law means and how they will seek to enforce that law. However, much guidance has either been delayed or is not yet with us. The guidance that has been provided is not, in many cases, sufficiently clear either. We must support the ICO properly to ensure it can provide that service, and we must make sure that people know how to comply with the law.

The UK is, as we have heard, one of the world’s leading digital economies. Bristol is one of the largest digital economies outside of London, and we lead the way on these issues in the world. We have the opportunity to set the tone in becoming a global hub for the world’s digital economy based not only on trust, accountability and security, but on business innovation and leadership. I look forward to helping the Government in this House to get that right.

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Matt Hancock Portrait Matt Hancock
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With the leave of the House, Madam Deputy Speaker, I shall reply for the Government to this excellent debate. I shall try to answer the points made, unconventional as that might seem.

The subject of the debate could not be more important. The digital revolution is one of the biggest things happening to this country and the world. Indeed, I think the digital revolution as a whole is bigger than Brexit. The right hon. Member for East Ham (Stephen Timms) thought this would be an anorak-like debate, but hoped it would not. Well, I think we could liken the debate to an anorak because in some circumstances anoraks are incredibly important. The debate may have been detailed and technical in parts, but it is vital to get these things right for our country’s future.

As others have said, what a pleasure it was to hear the fine maiden speech by the hon. Member for Warwick and Leamington (Matt Western). He even introduced a word that I had never heard—camoufleurs. What a description! He spoke well of his new constituency, especially the design industry, and the gaming industry that is so important there. He spoke of history and the future. As the Minister for the gaming industry and for VR and AR, I am thrilled to hear that he will continue to champion them; I look forward to engaging with him often.

I was delighted to hear that Leamington is the happiest place to live. Funnily enough, I thought that was Suffolk. I give the hon. Gentleman a gentle warning about hostages to fortune: he very gently and elegantly took the credit for Leamington’s being the happiest place in the country, so now we all know where to look if it all goes wrong.

I almost called the Labour Front-Bench spokesman, the hon. Member for Cardiff West (Kevin Brennan), my hon. Friend because we have spent so much time together in Committee in the past. I look forward to doing so again in future. I was surprised to learn two new things about him. I am astonished that he has university-age children; he looks as though he has barely left university himself. And he says he is delighted that the former Member for Warwick and Leamington, Chris White, is no longer in the House because he is a double. He can imagine how I felt when Mike Hancock was defeated!

The hon. Member for Cardiff West asked some serious and important questions. First, he raised the question of parental consent at the age of 13. There is flexibility in the GDPR legislation to set the age of parental consent at any age between 13 and 16. In the UK that age is effectively 12 at the moment—although it is not set in the same way—which means that we are raising the age. We of course recognise the fundamental role that the internet plays in the lives of teenagers, and we agree that it is vital to educate children, not only on the positives of the internet—coding has been in the curriculum for three or four years—but on the risks. The internet safety strategy published yesterday stated that we will do more to educate children about safety, but online platforms also give children educational and social resource, and the rules need to be realistic if they are to work. We do not want to introduce an unworkable rule.

This is a balanced judgment, but I believe we were right when we chose the age of 13. It was suggested that we did so because the Irish Government decided on 13, but the point about GDPR is that what matters is whose data it is, so it is not a question of the dataset in which the data is stored; it is a question of how old the child is.

The hon. Member for Cardiff West, and several other hon. Members, asked about the adequacy of our national security legislation. We are already compliant with EU law on data protection, with the Intellectual Property (Unjustified Threats) Act 2017, and we will be after exit. We are confident that that legislation should not present a significant obstacle to negotiations, not least because we have one of the most robust oversight frameworks in the world, and we brought in judicial oversight as part of the move from the Data Retention and Investigatory Powers Act 2014 to the Investigatory Powers Act 2016.

We heard an excellent speech from my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), who argued that how data rules relate to finance is a huge issue to be tackled. He is absolutely right, and we do have regular discussions with the financial sector. None of us should forget his point that it is in the interests of both the UK and the EU to get things right. We will help to ensure that Gibraltar has market access to the UK, which my hon. Friend cares about. That may require a degree of regulatory equivalence, and he knows that those discussions are ongoing. Our intention to maintain the data relationship for law enforcement purposes is clear, which is why we are putting the law enforcement directive into UK law as part of the Data Protection Bill. We want to continue to have a strong partnership with the EU. There is no legal barrier to the EU establishing an international agreement giving third countries access to SIS II and the European Criminal Records Information System. We are exploring a full range of options, but much of the detail will obviously be down to the negotiations.

I am delighted that the Scottish National Party supports our approach, and I am grateful for the support of both the Scottish Government and the SNP Members here. When the hon. Member for Argyll and Bute (Brendan O’Hara) said that what I had said previously was absolutely right, I started to worry a little—we do not usually hear that, from the SNP Benches—but he then asked specifically about a no-deal scenario. In the annex to the paper we published in the summer, we outlined other ways to ensure the flow of data, and we do consider all options. There are alternative means of legal transfer of data, but we fully expect a good deal. The hon. Member for Strangford (Jim Shannon) made the same point, but he stressed that this is about not just the future EU-UK relationship, but the UK’s relationships all around the world and our ability to get strong trading relationships underpinned by data that is protected with good cyber-security.

My hon. Friend the Member for Stirling (Stephen Kerr) argued powerfully that data protection must be based on trust—my hon. Friend the Member for Chelmsford (Vicky Ford) made a similar point—and mentioned the advantage of future flexibility in a position in which Britain can lead across the world. He mentioned our history on that topic and the computer Manchester 1, which my mother worked on, and Stirling’s growing digital economy. He asked us to raise our eyes to the horizon and ensure that we get this right across the world.

Like the hon. Member for Cambridge (Daniel Zeichner), my hon. Friend the Member for Stirling asked about the EU-US privacy shield and post-Brexit data flows. We of course want to maintain the current protections for UK citizens under the privacy shield after exit. We want to ensure that data flows between the UK and third countries with EU adequacy decisions, like the US, can continue on the same basis. That is part and parcel of what we are trying to achieve.

The hon. Member for Cambridge also asked about dialogue with the EU on the future partnerships paper, and that is ongoing. For example, the Secretary of State for Justice is at the Justice and Home Affairs Council this week and will be speaking about that paper, setting out in particular the argument that we are approaching Brexit from a point of harmonisation. Keeping the Data Protection Bill harmonised with the GDPR will be critical as we take the Bill through both Houses, and I am glad for the Opposition’s support in maintaining that position.

The right hon. Member for East Ham made a characteristically excellent speech. I hope he is not on the Bill Committee, and I mean that as a compliment. However, he was wrong about the loss of influence, and my hon. Friend the Member for Chelmsford, who was in the European Parliament at the time, pointed out just how influential both Labour and Conservative British MEPs were in ensuring that we got a good piece of GDPR legislation.

I want to make it absolutely clear that our goal is an agreement that builds on the existing model of adequacy. We are seeking an arrangement at least as strong as adequacy—stronger, in fact. There was a bit of debate about whether how I put things in my opening speech implied that we were moving off adequacy. We are not. I say again that we are seeking an arrangement at least as strong as adequacy—stronger, in fact—as part of the negotiation.

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

Does the Minister recognise that the absence of article 8 will make his goal harder to achieve? He said that we can look elsewhere in the body of European law, and it is all terribly vague and badly defined. The problem is that that will not convince the Commission—and it is the Commission that he has to convince about adequacy.

Matt Hancock Portrait Matt Hancock
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I think the right hon. Gentleman is wrong on this point, which no doubt we will debate during the passage of the Bill. We know of no other jurisdiction with an adequacy deal that has been required to put the charter into law. Such a requirement has not been imposed anywhere else, so there is no reason for it in this case. The charter is a summary of laws present elsewhere and we are bringing the jurisprudence into UK law. Our goals are the same; in a sense, the question is a legal one. The fact that such a requirement has not existed in any other adequacy arrangements implies that the issue should not be problem for us, not least because of our strong legal basis for bringing GDPR into UK law.

On mail and direct marketing by post, I should like to correct the right hon. Gentleman slightly. Data controllers will need a legal basis for this under GDPR, but article 6 sets out a number of potential legal bases, not only consent. That does not change the reality on the ground from the current data protection arrangements. I hope that I have provided adequate reassurance.

The right hon. Gentleman and the hon. Member for Leeds North West (Alex Sobel) raised article 8, as did others. I am clear about the strength of the assurance that I have given and I hope that Opposition Members accept it. When private businesses consider their future arrangements, I hope that Members on both sides will make clear our determination to get a deal that is as good as adequacy, if not better. We want people to continue to do business and thrive here in the UK.

My hon. Friend the Member for Chelmsford, whom I have mentioned a couple of times, made a powerful and informed speech. Of course we think that the passenger data transfer is important; the referendum does not change how important it is. The EU already has third country arrangements in place with others, so we see no reason why the issue cannot be fixed. I am also sure that Chelmsford is a happy place to live; I wonder whether that is down to my hon. Friend or her ebullient predecessor.

I also agree with my hon. Friend that we must be vigilant and not gold-plate the Data Protection Bill through Information Commissioner’s Office guidance. No doubt we will discuss that during the passage of the Bill. I have regular conversations with the ICO about exactly that issue. We want guidance to come out early. In some cases, the ICO is having to wait for guidance from the Commission and that causes the delay—it is not the fault of the Information Commissioner. But we do want guidance to be in clear, simple language, not gold-plated, and to come out as early as is reasonably practicable. I thank the Information Commissioner and all her team for her excellent work.

Darren Jones Portrait Darren Jones
- Hansard - - - Excerpts

The Minister says that the guidance should come out early, but it is already too late in respect of direct applicability of the general data protection regulation for many businesses, which may need to carry out major systems changes if guidance says something that they are not expecting based on interpretation of the article. Will he say to the ICO that, where guidance is late and that makes it harder for organisations to make those changes, there will be some leeway when it comes to enforcement?

Matt Hancock Portrait Matt Hancock
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The hon. Gentleman speaks like a true lawyer. The hon. Member for Cardiff West said that the hon. Gentleman had been outed as a lawyer during this debate—my goodness, he outs himself as a lawyer from the first moment he strikes his posture in this Chamber. He is obviously a lawyer and that latest point only proves it further. The ICO has already said that, and it is well worth reading the Information Commissioner’s Cambridge speech from a couple of months ago, which set out that reassurance. The hon. Gentleman asked about timing and complained about there not being an agreement already. We want to get on and discuss the future relationship, and the Government have made that clear; it is the European side that is blocking progressing on to the future relationship. I hope that we can get on and discuss it forthwith.

Wera Hobhouse Portrait Wera Hobhouse
- Hansard - - - Excerpts

As I have said, we have been in Brussels and heard time and again from different sides that it is up to the UK Government to break that deadlock. There are two issues where they are free to break it; this is particularly the case on the money issue, but Government Members do not want to face that, because even a penny to pay in compensation or in the divorce bill will not be good enough. That is why we are in deadlock and we cannot move on.

Matt Hancock Portrait Matt Hancock
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The hon. Lady is wrong about that. She is also wrong to have said that there is no certainty about the future UK data protection arrangements, because there is and we are putting it into law: it will be the GDPR, plus the Data Protection Bill, which is before the other House. Although she was completely wrong, I am grateful for her intervention.

This has been a very productive debate and I am grateful for the largely very well-informed and detailed discussion, all of which has been good natured. I look forward to continuing this over the months ahead. There is a shared mission in this House to have a high-quality data agreement with the European Union to make sure we have high-quality data protection and the free flow of data. I hope I have given assurances about the actions we are taking to deliver that and to support the digital economy, through Brexit and beyond.

Question put and agreed to.

Resolved,

That this House has considered Exiting the European Union and Data Protection.

Oral Answers to Questions

Matt Hancock Excerpts
Thursday 14th September 2017

(6 years, 8 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
John Whittingdale Portrait Mr John Whittingdale (Maldon) (Con)
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4. What progress her Department has made on establishing a public service broadcasting contestable fund.

Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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As part of the BBC charter review, the first part of which took place under my right hon. Friend’s wise leadership, the Government committed to establish a pilot for a new contestable fund. The Government’s consultation closed earlier this year, and we will publish the response and the next steps in due course.

John Whittingdale Portrait Mr Whittingdale
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While I recognise the BBC’s huge contribution to public service broadcasting, does the Minister agree that some TV genres are underserved and that a public service broadcasting contestable fund could increase competition and innovation? Will he confirm that the Government intend to go ahead with a pilot in due course?

Matt Hancock Portrait Matt Hancock
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Yes, I agree with everything my right hon. Friend said, and I can confirm that that pilot will be going ahead.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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I love the BBC, even though Sarah Sands, the new editor of the “Today” programme, and Nick Robinson seem to be destroying that programme at the moment. I therefore start with a prejudice, but when I look at the sort of deals that have always been favoured by Conservative Members who want to privatise by the back door, I see MediaCom, Singapore and the black hand of international companies such as the Murdoch empire.

Matt Hancock Portrait Matt Hancock
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I normally think the hon. Gentleman is sensible, but today he seems to have avoided that. The contestable fund is about ensuring that we have a great diversity of success in broadcasting in our nation. As for the “Today” programme, I thought Nick Robinson’s broadcasts from Silicon Valley yesterday were superb. They were all about the interesting changes that are going on in the world and the economy due to artificial intelligence and digital. I thought that was another excellent direction for the BBC to be taking.

John Bercow Portrait Mr Speaker
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Stella Creasy? Not here. I call Kelvin Hopkins.

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Nusrat Ghani Portrait Ms Nusrat Ghani (Wealden) (Con)
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T4. Many businesses in Wealden are forced by BT to depend on slow, unreliable broadband, and they get appalling service if they are ever unlucky enough to have to contact the company. Can the Minister update the House on progress to improve rural broadband, especially in Wealden?

Matt Hancock Portrait The Minister for Digital (Matt Hancock)
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Yes, I can. More than 90% of homes and businesses in Wealden now have access to superfast broadband, and 16,000 homes and businesses get that because of the Government’s support for the roll-out. We recognise that that leaves just under 10% without it, which can be incredibly frustrating, so we are bringing in a universal service obligation. At the weekend, we announced a further amount of just over £600 million for the roll-out of superfast broadband to make this country fit for the modern age.

Gavin Newlands Portrait Gavin Newlands (Paisley and Renfrewshire North) (SNP)
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T2. Scottish politics can be rather tribal, but yesterday Scottish politics united in support of Paisley’s bid to become the UK City of Culture in 2021. Paisley’s bid is now Scotland’s bid. The final stage of the competition is looming, and a win for Paisley would create a bigger legacy than a win for anywhere else. Will the Minister join us in supporting Paisley 2021?

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Mims Davies Portrait Mims Davies (Eastleigh) (Con)
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We simply must take steps to protect online users, particularly through education about online responsibility. How will the Government’s Data Protection Bill, which I welcome, benefit people in terms of the data held about them? I am thinking in particular of the use of children’s data and consent.

Matt Hancock Portrait Matt Hancock
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The Data Protection Bill, which we published in the other place today, is about giving citizens more power over their data while ensuring that data can be used innovatively and effectively. It also introduces new powers to protect minors and to allow people to request the deletion of their data on social media sites at the age of 18, ensuring that they are more in control of their online data.

Alistair Carmichael Portrait Mr Alistair Carmichael (Orkney and Shetland) (LD)
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I welcome the inclusion of “Digital” in the Department’s title. However, despite that bold and innovative step, the availability of superfast broadband in Orkney and Shetland remains disappointingly low. I suspect that the roots of the problem lie in how the contract was tendered under the Broadband Delivery UK system, so will the Minister work with the Scottish Government to ensure that the mistakes in that process are learned?

Matt Hancock Portrait Matt Hancock
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I am also delighted that “Digital” has been added to the Department’s title. The Scottish Government have been the slowest of all the different organisations around the country to contract the broadband that we so desperately need. That is why Scotland is behind. We are offering technical support, but they are behind every English county and behind both the Welsh Government and Northern Ireland Government, and they need to get a move on.

The Attorney General was asked—