UK Telecommunications

Matt Warman Excerpts

Tuesday 28th January 2020 Written Statements

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

My right hon. Friend the Secretary of State for Digital, Culture, Media and Sport, Baroness Morgan of Cotes, has made the following statement.

The telecoms supply chain review—laid before Parliament in July 2019—underlined the range and nature of the risks facing our critical digital infrastructure.

The review addressed three questions:

How should telecoms operators be incentivised to improve security standards and practices in 5G and full fibre networks?

How should the security challenges posed by high risk vendors be addressed?

How can sustainable diversity in the telecoms supply chain be created?

The Government are establishing one of the strongest regimes for telecoms security in the world. This will raise security standards across the UK’s telecoms operators and the vendors that supply them. At the heart of the new regime will be the National Cyber Security Centre’s Telecoms Security Requirements guidance. This will raise the height of the security bar and set out tough new standards to be met in the design and operation of the UK’s telecoms networks.

The Government intend to legislate, at the earliest opportunity, to introduce a new comprehensive telecoms security regime—to be overseen by the communications sector regulator, Ofcom, and Government.

The review also underlined the need for the UK to improve diversity in the supply of equipment to telecoms networks.

The Government are developing an ambitious strategy to help diversify the supply chain. This will entail the deployment of all the tools at the Government’s disposal. The strategy has three main strands:

Attracting established vendors who are not currently present in the UK;

supporting the emergence of new, disruptive entrants to the supply chain; and

promoting the adoption of open, interoperable standards that will reduce barriers to entry.

The UK’s telecoms operators are leading the world in the adoption of new, innovative approaches to expand the supply chain. The Government will work with industry and like-minded countries to achieve these goals.

The third area covered by the review was how to treat those vendors which pose greater security and resilience risks to UK telecoms.

The Government have now completed their consideration of all the information and analysis on this subject, and are publishing the final conclusions of the telecoms supply chain review in relation to high risk vendors.

In order to assess a vendor as high risk, the review recommends a set of objective factors are taken into account. These include:

The strategic position or scale of the vendor in the UK network;

the strategic position or scale of the vendor in other telecoms networks, particularly if the vendor is new to the UK market;

the quality and transparency of the vendor’s engineering practices and cyber security controls;

the vendor’s resilience both in technical terms and in relation to the continuity of supply to UK operators;

the vendor’s domestic security laws in the jurisdiction where the vendor is based and the risk of external direction that conflicts with UK law;

the relationship between the vendor and the vendor’s domestic state apparatus; and

the availability of offensive cyber capability by that domestic state apparatus, or associated actors, that might be used to target UK interests.

To ensure the security of 5G and full fibre networks, it is both necessary and proportionate to place tight restrictions on the presence of any vendors that are identified as higher risk.

For 5G and full fibre networks, the review concluded that, based on the current position of the UK market, high risk vendors should be:

Excluded from all safety related and safety critical networks in critical national infrastructure;

excluded from security critical network functions;

limited to a minority presence in other network functions to a cap of up to 35%; and

subjected to tight restrictions, including exclusions from sensitive geographic locations.

These new controls will also be contingent on an NCSC-approved risk mitigation strategy for any operator using such a vendor.

Over time, our intention is for the market share of high risk vendors to reduce as market diversification takes place.

The Government intend to bring forward legislation, at the earliest opportunity, to limit and control the presence of high risk vendors in UK networks, and to be able to respond appropriately as technology changes.

Nothing in the review’s conclusions affects this country’s ability to share highly sensitive intelligence data over highly secure networks, both within the UK and with our partners, including the Five Eyes.

GCHQ have categorically confirmed that how the UK constructs its 5G and full fibre public telecoms networks has nothing to do with how the Government share classified data.

In response to the review, the Government have asked the National Cyber Security Centre to produce guidance for industry in relation to high risk vendors. The guidance sets out how NCSC will determine whether a vendor is high risk, the precise restrictions it advises should be applied to high risk vendors in the UK’s 5G and full fibre networks, and what mitigation measures operators should take if using high risk vendors.

The NCSC has published that guidance on their website at: www.ncsc.gov.uk/guidance/ncsc-advice-on-the-use-of-equipment-from-high-risk-vendors-in-uk-telecoms-networks, as well as a summary of the security analysis conducted for the telecoms supply chain review at: www.ncsc.gov.uk/report/summary-of-NCSC-security-analysis-for-the-UK-telecoms-sector.

The DCMS press release accompanying this written ministerial statement can be found at: https://www.gov.uk/government/news/new-plans-to-safeguard-countrys-telecoms-network-and-pave-way-for-fast-reliable-and-secure-connectivity.

Copies of these documents have been placed in the House of Commons Library.

[HCWS70]

5G Network and Huawei

Matt Warman Excerpts

Monday 27th January 2020 Commons Chamber

[Tom Tugendhat (Tonbridge and Malling) (Con)]

(Urgent Question): To ask the Minister to make a statement on Huawei’s involvement in the UK’s 5G network.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

I thank my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) for this question. I know he has a deep interest in this issue, and my right hon. Friend the Secretary of State has corresponded with him about it over the past few months. She will address this issue herself in the other place later today.

New telecoms technologies and next-generation networks like 5G and full fibre can change our lives for the better. They can give us the freedom to live and work more freely, help rural communities to develop thriving digital economies, and help socially isolated people to maintain relationships, so the security and resilience of the UK’s telecoms networks is of paramount importance. The UK has one of the world’s most dynamic digital economies, and we welcome open trade and inward investment. However, our economy can prosper and unleash Britain’s potential only when we and our international partners are assured that our critical national infrastructure remains safe and secure.

As part of our mission to provide world-class digital connectivity, including 5G, my Department carried out a cross-Whitehall evidence-based review of the telecoms supply chain to ensure a diverse and secure supply base. That review’s findings were published in July 2019 and set out the Government’s priorities for the future of our telecommunications. Those priorities are strong cyber-security across the entire telecommunications sector, greater resilience in telecommunications networks and diversity across the entire 5G supply chain. It considered the UK’s entire market position, including economic prosperity, the industry and consumer effects, and the quality, resilience and security of equipment.

However, in July, the review did not take a decision on the controls to be placed on high-risk vendors in the UK’s telecoms network. Despite the inevitable focus on Huawei, that review was not about one company or even one country. We would never take a decision that threatens our national security or the security of our allies. The Government’s telecoms supply chain review is a thorough review into a complex area that made use of the best available expert advice and evidence, and its conclusions on high-risk vendors will be reported once ministerial decisions have been taken.

The National Security Council will meet tomorrow to discuss these issues. This work is an important step in strengthening the UK’s security frameworks for telecoms and ensuring the roll-out of 5G and full-fibre networks. I know that Members on both sides of the House feel strongly about this issue, and the Government will make a statement to the House to communicate final decisions on high-risk vendors at the appropriate time. We will always put national security at the top of our agenda.

[Several hon. Members rose—]

--- Later in debate ---

[Tom Tugendhat]

Thank you, Mr Speaker. The interest shown in the House demonstrates the interest that many of us have in this question. As the Minister made clear, a decision will be made tomorrow which we will not have any further say on. That decision may or may not nest a dragon in our critical national infrastructure, and it will not be reversible by a future Government with any ease; we will live with this decision for the next 10, 15 or 20 years. That is why this question is so urgent and why I am so glad that you allowed time for it to be asked, Mr Speaker.

The question for us has to be: is the risk worth it? We know the stories about Huawei’s co-operation with the state apparatus of China in countries such as Uganda and Ethiopia. We know stories about its connections to the intelligence services and the police state currently running in Xinjiang. We know that there are strong accusations effectively of tech-dumping, with market subsidies allowing Huawei to compete against other companies on an unfair basis. That might be an example of charity by the Chinese Communist party, but if even the Communist party in Vietnam decides to reject Huawei and set up its own network, perhaps we should beware of strangers and the gifts they bear.

This is a really important decision not only for the UK but for our allies. Today, Germany is making a similar decision. New Zealand and Australia have already made decisions. The Czech Government have already rejected Huawei. Over the coming months, more Governments will be looking at our stance on China when considering the threats that some of their institutions face.

Of course, we must work with China and find ways of co-operating in areas such as environmentalism, energy policy and technology, but when we see China’s aggressive moves towards the UN bodies that control the regulation of information and the way in which subsidies are used to take control of important networks, we should be concerned. I hope that the Minister will understand the concern that the whole House feels about Huawei and the idea of nesting that dragon and allowing a fox into the hen house when we should be guarding the wire. I hope that he will see his responsibility clearly.

[Matt Warman]

I agree with some of what my hon. Friend says. He is right that this is a serious and important decision, and it will not be taken lightly by any means. I know that he does not think that I take this matter lightly, and neither does the Secretary of State. He is also right that Parliament should have its say. We are talking about this issue today, but the Intelligence and Security Committee has been writing reports on this since 2013 and made statements as recently as July last year. There have been UQs, and we have had debates in this Chamber and in Westminster Hall. It is right that Parliament expresses its view.

My hon. Friend is right to say that our agencies look carefully at how best we manage this situation and its effects on the global landscape. Britain is in a unique position, so comparisons with other countries can only go so far, but he is right to make those comparisons. I can only reinforce that this decision will be taken with the utmost seriousness.

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

I congratulate the hon. Member for Tonbridge and Malling (Tom Tugendhat) on securing this important urgent question, though I am deeply dismayed that the Prime Minister is not making a statement on this matter, which is of critical national importance. It is difficult not to agree with my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) that the Prime Minister is “doing a runner”. Can the Minister confirm that the Prime Minister will take full responsibility for any decision reached at tomorrow’s National Security Council meeting, and not seek to hide behind his Ministers or the civil service?

Any decision to allow Huawei’s involvement in building our 5G network will require concrete assurances about the integrity and safety of the network. The most recent report from the company oversight committee concluded that it had made “No material progress” on these issues. That was last March. Since then, what assurances have the Government received that the situation has changed? If, as has been reported, the Government’s solution is to limit the company’s involvement to non-core parts of the network, how will that be enforced?

According to Mobile UK, any restriction on Huawei’s involvement could result in an 18 to 24-month delay to the 5G roll-out, at a cost to our economy of up to £6.8 billion. How then will tomorrow’s decision affect the Government’s ambition for the majority of the UK to have 5G mobile coverage by 2027? Part of the reason why the delay would be so long is Huawei is already embedded in our 4G network, so where are our alternative homegrown suppliers? What are the Government doing to build the sector, and does the Minister accept that chronic lack of investment and leadership from the Government has brought us to this parlous situation? Finally, what is he doing to ensure that we are never again dependent on foreign powers to secure our critical national infrastructure and security?

[Matt Warman]

There were a number of sometimes contradictory strands in that statement, but I will attempt to address them all. The hon. Member asked whether the Prime Minister will take responsibility for the decision that is made. Of course he will. The Prime Minister not only takes responsibility for his Government; he takes responsibility for an election campaign in which Labour’s position on national security was profoundly rejected by the British people.

The hon. Member asked how we will enforce any decision. We will enforce it in the same way that we have enforced previous decisions. She also asked what this Government are doing to make sure that we have further investment in our own cyber-security. She will know, as the shadow Secretary of State, just how much this country is investing in cyber-skills, cyber-security and digital skills, and in a whole host of the aspects that have made sure that this is the fifth largest digital economy. I am completely reassured that our position on that will continue to drive such progress.

On the substantive matter, however, it is of course right that we make sure that we address this situation with all the seriousness that it deserves, that we take all the advice from our allies and from our agencies that has been offered, and that we come to a conclusion tomorrow. National security will always be at the top of that agenda.

[Dr Julian Lewis (New Forest East) (Con)]

The Minister hinted at a possible way out of this impasse for the Government when he referred to the Intelligence and Security Committee. I am the only Conservative Member of the House to have taken part in the previous full-scale investigation of Huawei, and we reported in 2013. It is true that there was a statement in July 2019. I have just looked it up, and it was three pages long. Surely the Intelligence and Security Committee is the body that is tailor-made to represent the concerns of this Parliament through an in-depth study and report—both publicly and, in the classified version, privately, as we did before, to Parliament and the Prime Minister, respectively—so that we can come up with a robust, rigorous and resilient solution.

[Matt Warman]

I pay tribute to the 2013 Malcolm Rifkind report; it was a thorough piece of work for that period. And of course my right hon. Friend is right that the ISC is one of many forums that could look at this issue. [Interruption.] For instance, the Select Committee on Foreign Affairs has also looked at our relationship with China. He is right, too, to say that the ISC as an independent body could choose to look at this, and the Government would of course welcome and co-operate fully with any such inquiry.

[John Nicolson (Ochil and South Perthshire) (SNP)]

I thank the hon. Member for Tonbridge and Malling (Tom Tugendhat) for raising this crucial issue. He was right, of course, to say that sovereignty extends beyond land and also includes information. Members from all sides of the House have expressed very grave concerns about establishing such a fundamental part of our digital infrastructure with a Chinese-owned technology giant.

With reports that the Prime Minister will be seeking to include only core parts of the network in any ban, will there be any clear guidance as to what is and is not included in that definition, and in the absence of the Secretary of State—who does not seem to be in the Gallery; I thought she might give us another hand signal to tell us what she feels—what assurances have the UK Government sought to answer concerns on the impact that this could have on the security and autonomy of data in the UK and what measures are in place to ensure that these are completely credible? Is it really the case that this is the only firm capable of providing this technology, and does this heavy reliance on one company not give the Government cause for concern in the event of any future escalation of geopolitical tension or disagreements between the United Kingdom and China?

[Matt Warman]

The hon. Gentleman will of course know that I cannot pre-empt any decision that could be taken tomorrow.

[Chris Bryant (Rhondda) (Lab)]

Go on.

[Matt Warman]

I won’t, but am grateful for the invitation.

The hon. Member for Ochil and South Perthshire (John Nicolson) is also right to say that maintaining the security of this country’s data is one of the many important ways in which we preserve our national security. On his final and most important question, the hon. Gentleman is absolutely right to say that this is by no means the only company that Britain looks to for this sort of infrastructure. That is one of the reasons why we talk about high-risk vendors, rather than one individual company. Success in many ways over coming years looks like a more diverse, more competitive market supplying these things. We already use other companies in UK networks; we should continue to do so to a greater extent.

[Crispin Blunt (Reigate) (Con)]

The strategic goal of our policy towards China must be interdependence, not isolation, in order to reduce the risk of future conflict, so will the Minister confirm that a proper security risk assessment has been made and will continue to be made about Huawei’s role in our adoption of 5G? Will he also confirm that, unless the Americans can make a legitimate security case, we should quietly ignore their current public position that thinly disguises a protectionist trade position built on supposition, and proceed on the evidence? We should also gently let our American friends know that we are not leaving one dependent economic relationship on Friday to immediately enter another?

[Matt Warman]

My hon. Friend invites me to stray perhaps further than my DCMS brief and into global geopolitics. However, he is right to say that we should make this decision with an eye on what our allies have advised us as well as what our agencies suggest, and of course on the global situation.

[Mr Kevan Jones (North Durham) (Lab)]

As a member of the ISC up to the last general election, I can say that the Committee has looked at this. Unfortunately, the ISC is not in being at the moment; it is up to the Prime Minister to call and set up the new Committee? My personal point of view, from the briefings and information that I have seen, is that any risks can be mitigated by our current services. The bigger issue however, which I think does need addressing, is around sovereign capability. In the new defence and security review, what emphasis will be put on sovereign capability, not just in this area, but in a host of other areas? To date, this Government have not been good at investing in sovereign capability. That should be considered rather than simply looking at price as a factor in making decisions.

[Matt Warman]

The right hon. Gentleman is right to highlight the evidence to which the ISC has pointed, and of which I hope the House will take note. When it comes to sovereign powers, when we assess our national security, there are of course some industries that we should consider of strategic importance. We do that in some areas; I suspect that in future we will consider whether we should do it in others.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I congratulate my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) on his urgent question. Given that we are, in a sense, at war—there is a cyber-war going on in which China is arguably the biggest participant; maybe Russia as well—the idea that we should think of giving a company that is heavily subsidised by China, a country that has set out to steal data and technology non-stop, the right to be in what is essentially a very delicate area of our technology seems utterly bizarre. I was led to believe that the Government would not make that decision. I hope that they will now reject Huawei immediately.

[Matt Warman]

I cannot pre-empt the decision, as my right hon. Friend knows, but it is important to say that our agencies have managed the relationship that he talks about over a number of years and will continue to do so. We should of course pay tribute to them, and I look forward to seeing a decision made that fully engages with all their advice.

[Mr Ben Bradshaw (Exeter) (Lab)]

Can the Minister assure me that this decision, the one on the digital tax and all the other important decisions facing our country will be based on what is in our national interest and not on threats and bullying from the White House?

[Matt Warman]

I can assure the right hon. Gentleman that this Government will always make decisions in the national interest.

[Bob Seely (Isle of Wight) (Con)]

Why is it argued that we can limit Huawei to the periphery of the network, when Australia and the United States do not agree and when the head of Australia’s cyber-agency says that

“the distinction between core and edge collapses in 5G,”

and that

“a…threat anywhere in the network”

is a threat everywhere? Why is it said that the risks are manageable, when our allies say not? Why have previous Ministers claimed that Huawei is a private firm, when in no way is that true? Why are we told that there are no alternatives, when there are? Why are we told that the quality of Huawei’s work is high, when its Cell in Banbury says that its work is sloppy? Why do we need high-risk vendors in our network at all? Whoever controls 5G will significantly affect our rule of law, our data privacy, our security and our freedom to support our allies. We have had so little parliamentary debate on this issue.

[Matt Warman]

There are a number of questions there. My hon. Friend is right to allude to the fact that there are alternatives to Huawei, and we would of course seek to use them as much as possible. He is right to say that we have to consider the unique nature of a 5G network, and that is precisely what our agencies will do when they offer advice to Government. He is also right to say that we have to look at this decision in the round, and that is what we will do.

[Daisy Cooper (St Albans) (LD)]

In addition to legitimate security concerns, the human rights implications of granting access must not be ignored. Huawei has been implicated in mass oppression in China, selling infrastructure that has allowed it to build a surveillance state and disseminate disinformation and racially charged propaganda. To ensure that we continue to defend human rights here and abroad, what steps will the Government take to ensure that all foreign firms wanting to bid for public contracts in the UK or run critical infrastructure are subject to the most stringent human rights impact assessments and also that those assessments consider information provided by our key allies, including the Five Eyes alliance?

--- Later in debate ---

[Matt Warman]

Although the hon. Lady raises issues that are not directly related to national security, she is absolutely right to do so. This country has ensured that it has a robust relationship with all our partners and allies, and with every other country around the world, so that we can have precisely the sorts of conversations that she asks for, because we know just how important they are.

[Jeremy Wright (Kenilworth and Southam) (Con)]

It would be wrong to suggest, would it not, that this decision is simple. It is far from straightforward, but can I ask my hon. Friend to give us two pieces of reassurance about how it will be made? First, will he reassure us that it will be made in accordance with, and not in contradiction to, the advice given by our intelligence agencies? Secondly, will he reassure us that the Government will have considered, and will be able to share with the House, their assessment of the long-term commercial viability of Huawei equipment, given the entity listing decisions of the US Administration?

[Matt Warman]

My right hon. and learned Friend very much invites me to pre-empt the decision. I can, of course, say with absolute certainty that any decision will be made after intense engagement with the advice of the agencies. That will, of course, by its nature, have to consider the long-term consequences of the decision, so the short answer to his question is: yes, and yes.

[John Spellar (Warley) (Lab)]

I am puzzled by the accusations of US protectionism, because European companies, such as Ericsson and Nokia, have a long record of technical expertise. Is not the real problem the Treasury’s short-term doctrine of cheapest is best, even if the company is heavily subsidised and supported by its Government? Why are we putting our security and our economic relationship with long-term allies at risk just to save a few bob?

[Matt Warman]

The right hon. Gentleman is right on one level—there is a cost component to any of these decisions—but these decisions are made primarily by commercial organisations, when it comes to the roll-out of their networks. The Government have a crucial role to play in making sure that they have the best possible advice. As I said, we as a Government will always put national security as the top consideration.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

Is not the long-term strategic question: why have we come to a point where we have no recourse to sufficiently viable and cheap technology of our own, or from any of our allies? Should we not have been developing that for the last 20 years? [Interruption.] A lot happened under the last Labour Government, if I may say so—Huawei got into BT under the last Labour Government. What are the Government going to do now to reverse the trend of technological dependency on China, which is not an ally of ours in upholding western values and western democratic institutions?

[Matt Warman]

It is reasonable to ask how we got here, and one of the answers is decisions made under the Labour Government. However, it is right to say that we have to make sure that the decision that is made tomorrow produces, over the coming years, a more diverse landscape that means that more options are available to this and future Governments. In that context, it is right that we consider our investment in research and development and in building the UK’s home-grown capabilities.

[Stewart Hosie (Dundee East) (SNP)]

It is true that there are clearly documented risks in dealing with certain Chinese companies, including intellectual property theft, theft of industrial secrets, and pressure on Chinese citizens in third countries. Huawei has been involved in our 2G, 3G and 4G networks and it clearly has the capacity to be involved in the 5G network, particularly if any potential risks are mitigated. Will the Minister tell the House if he is aware of any potential risk of Huawei being involved in the non-core part of the 5G network that cannot be mitigated?

[Matt Warman]

In a sense, I think the hon. Gentleman is asking me about an unknown unknown, so I hesitate to get into the detail. However, the principle point he is making about the extent to which we can be confident about our future abilities to mitigate potential problems is at the core of the decision that will have to be made tomorrow.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

We are in a period of constant conflict. The character of war is changing, with terrain being replaced by the digital as the prize. This question is not about today; it is about long-term security and where China is going. In our lifetimes, it will become more militarily, technologically and economically powerful than any other country in the world. It is already causing the splintering of the internet. Does not the issue of Huawei raise bigger questions about where China is going and about the need for greater transparency on the international stage?

[Matt Warman]

My right hon. Friend is very experienced in these matters and gets right to the heart of the issue. The issue of this country’s relationship with other countries of varying friendliness around the world will only become more pressing. We have to make the right decision now.

[Darren Jones (Bristol North West) (Lab)]

I declare my interest as set out in the Register of Members’ Financial Interests.

The issue of internet-connected devices in our critical national infrastructure is related not just to 5G and Huawei, but to water, electricity and supermarket food distribution systems—every part of our way of life. Yet we are caught in the middle of a China, European Union and United States policy approach to developing these technologies. The Minister has been asked a few times today—he has not quite answered the question—what representations he has made to the Department for Business, Energy and Industrial Strategy to include in the Government’s industrial strategy sovereign capability in the manufacturing of technologies. We want absolute reassurance that technologies are safe in our critical infrastructure.

[Matt Warman]

I hoped that I had hinted at an answer earlier. The hon. Gentleman is absolutely right that Britain has to have an eye on the importance to our strategic interests of certain areas of our economy and of certain small companies growing in this country. We will continue to do that. It is a statement of the obvious that the areas where we will have to take an interest will grow over time.

[Harriett Baldwin (West Worcestershire) (Con)]

I invite the Minister, in making this technical assessment, to look at the work of the Worcestershire local enterprise partnership, which has been running a 5G testbed in Malvern for the past two years. In making the security and diplomatic assessment, I ask the Minister to urge the Foreign Secretary to make sure that we have an ambassador in Washington as soon as possible.

[Matt Warman]

My hon. Friend is right that this country is already doing important work in our 5G testbeds and trials programme; Malvern is one of the excellent examples of that. Britain, of course, makes sure that it has the best possible diplomatic network around at all times.

[Graham Stringer (Blackley and Broughton) (Lab)]

Huawei bought its way into the 2G, 3G and 4G networks by bidding to sell at only a quarter of the price of its competitors. Clearly, that was China trying to take control of the market. Where is the Minister’s scepticism? Not only will our security be at risk from a hostile power if Huawei is allowed into the network, some of which it could switch off even if it was not spying; it wants to control the commercial market as well. Where is his scepticism?

[Matt Warman]

Sometimes when things look too good to be true, be they economic or security-related, we should realise that they in fact are too good to be true.

[Mr Owen Paterson (North Shropshire) (Con)]

I find this absolutely extraordinary. Sir Richard Dearlove, formerly of MI6, has said that there is such a risk, and we know that there is a risk of losing key intelligence from our closest allies. What is the overwhelming advantage of the equipment that makes us consider taking the risk?

[Matt Warman]

As my right hon. Friend will know, a number of eminent former Government employees have spoken out on this issue in the past weeks and years. It is a hugely complex area, but he is, of course, right to imply that we should not put any one interest above our national security.

[Chris Bryant (Rhondda) (Lab)]

We are talking about 5G, but a lot of my constituents would quite like to see some 4G—or, frankly, any G at all.

In China, we face a political party, running a country, that believes it is perfectly acceptable to mount regular cyber-attacks on the network of the House of Commons and on key infrastructure in the UK. It frequently decides to engage in state-sponsored industrial espionage. It is difficult to see that it is a fair and honest broker for us to do business with.

[Matt Warman]

I thought for a moment that the hon. Gentleman was going to welcome the shared rural network that we announced the other week, but he missed that opportunity. He is, of course, absolutely right that we have to put national security at the top of this agenda. That is what we will continue to do. Sometimes, we have to beware of some of the particular concerns around countries such as China.

[Damian Collins (Folkestone and Hythe) (Con)]

The report last year from the Huawei oversight board to the Cabinet Office cited serious and systemic failings in cyber-security in the current Huawei network; even though those had been highlighted to the company, it had no credible plan to put things right. Does the Minister still share today the concerns raised by the oversight board? If the Government do share those concerns from advice they seek, why are they prepared to give a company such as Huawei more work? There are still serious concerns about the work it has already done.

[Matt Warman]

It is the existence of bodies such as the oversight board that demonstrates just how concerned the Government are. That is one of the many aspects that will inform the decision that could be made tomorrow. My hon. Friend is absolutely right: when it comes to the penetration of the network by any one vendor, we should be sceptical about a decision that could look too good to be true.

[Jim Shannon (Strangford) (DUP)]

I agree with the Minister about the necessity of national security above all else, but will he outline the impact on current 5G networks that make use of Huawei equipment, and will he tell us how much influence the United States dossier has had on his decision?

[Matt Warman]

The hon. Gentleman has invited me to pre-empt a decision that has not yet been made, but I can say with absolute certainty that the Government pay very close attention to the advice of all our allies and will continue to do so. As for the impact of Huawei on the current network, the oversight board, and other organisations that were mentioned earlier, will of course ensure that any potentially adverse impact of one vendor or another is managed as well as it possibly can be.

[Alicia Kearns (Rutland and Melton) (Con)]

The first and foremost job of Governments is to keep their people safe. Can my hon. Friend assure me that this Government will always prioritise national security? Has he noted that China allows no foreign involvement in its critical national infrastructure, and does he agree that that should at least give us pause for thought?

[Matt Warman]

I absolutely agree with my hon. Friend. She has a background of real expertise in this area, and she is an asset to the House in that respect. We should of course put national security at the very top of the agenda in all cases, and we should consider the approaches that all countries take to their own critical national infrastructures.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

Let me first thank the hon. Member for Tonbridge and Malling (Tom Tugendhat) for organising what seems to be an unofficial hustings for the Foreign Affairs and Defence Select Committees. It was very good of him. I think that the importance of this issue to both Committees, and to those standing for election as their Chairs, is that the Government have put freedom of religion and belief at the heart of their foreign policy. How, therefore, can they justify granting their investment to a company owned by the Communist party of China, who have been complicit in the brutal suppression of an ancient minority religious group, namely the Uighur Muslims?

[Matt Warman]

I think that some candidates here will be disappointed that the hon. Gentleman thinks it is a hustings for just one Select Committee. However, he is absolutely right to focus on the incredibly important issue of human rights, which is a cornerstone of this country’s foreign policy and will continue to be so. In this instance we will, of course, put national security at the very top of our agenda, but we should never, and will never, forget the very important issues that the hon. Gentleman has raised.

[Mr Jonathan Djanogly (Huntingdon) (Con)]

If Huawei were to obtain the 5G contract and if it were to breach our national security, presumably the priority would be to ensure that the future contract, whoever obtained it, would be at the cost of Huawei. Would it therefore be sensible to seek some kind of bond—if Huawei were to obtain the contract—to ensure that it would pay for someone to replace it quickly if that were necessary?

[Matt Warman]

I think that the hon. Gentleman is inviting me to enter into contractual negotiations already, which I am reluctant to do. However, he is of course absolutely right to say, or to imply, that the decision that will be made will have ramifications for many years. He is right to take that strategic long view, which is what the National Security Council will also do.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Any Members who chose to visit China—and I encourage all colleagues to do so—would, for instance, be advised by our security services not to take their smartphones. They would be told that even if the phones were turned off and the batteries were taken out, they would be compromised immediately upon landing on the Chinese mainland. In that context, how can we explain to our constituents that the Government are even considering allowing Chinese state-backed entities further access to critical UK infrastructure?

[Matt Warman]

The hon. Gentleman is right to refer to that guidance, but it is of course the case that this country is profoundly different from China, and indeed any other country, in that we manage our relationships with mobile phone networks and technology in a very different way. Our agencies will continue to do that, and it is the right thing to do. However, I understand why the hon. Gentleman has raised the comparison, and I know that the National Security Council will consider it during its own deliberations.

[Damian Green (Ashford) (Con)]

I hope, not least in the light of these exchanges today, that when the Cabinet comes to consider the NSC’s recommendations—the Minister talked about the NSC making a decision, but actually the Cabinet should take this decision—it will in this instance decide that security considerations outweigh economic ones. Can my hon. Friend assure me that this country still has the capacity to provide a significant part of its own communications infrastructure?

--- Later in debate ---

[Matt Warman]

My right hon. Friend is right to point out that this is technically a recommendation. He is also right to say that it is hugely important that we continue to provide large chunks of our own expertise, in regard to personnel as much as to the kit itself, and over the coming years, thanks to the investment of this Government in R&D, we will be providing more.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Huawei surveillance technology, as practised in Xinjiang, represents a massive public security cloud that is oppressing hundreds of thousands of Muslims in what can only be described as a repressive dystopian police state. How do we justify importing tools of mass surveillance and mass oppression that could still have foreign control? It just does not seem right.

[Matt Warman]

To a certain extent, the hon. Member pre-empts the next urgent question that you have granted, Mr Speaker, but the principle of what he is talking about underneath that is that 5G is a revolution in a huge number of aspects. We need to get that right when it comes to everything from surveillance to industrial opportunity.

[Neil O’Brien (Harborough) (Con)]

A report in Bloomberg Businessweek in 2018 revealed how Chinese firms had illicitly placed tiny chips on server motherboards intended for other countries. This revealed the impressive and terrifying capabilities of the Chinese state. Does the Minister agree that sometimes strong fences make good neighbours, and that we might legitimately want to trade and have good relationships with China but retain some core capabilities in our own state, in exactly the same way that it does?

[Matt Warman]

My hon. Friend’s quote from a great American poet emphasises that it is important to get these decisions right, but it is also important to ensure that we get the boundaries right, and that is what we have to do, not just for now but for the years to come. That is what the National Security Council will recommend to Cabinet, I hope tomorrow.

[Alex Norris (Nottingham North) (Lab/Co-op)]

Each day in this place, a Minister talks from the Dispatch Box about the importance of building a high-skilled economy, but it does not say much about the Government’s industrial strategy that we are not even considering our own domestic provider in this case. The Minister has said that that will change in time. What year?

[Matt Warman]

I am tempted just to say “a coming year”, but the hon. Member is absolutely right to say that when it comes to growing our own talent, we have to look around the world and ask what countries other than Britain have done to deliver huge advances in infrastructure such as 5G. We also need to ask how we can ensure that, when it comes to 6G and 7G, a British company is on that spectrum as well.

[Richard Drax (South Dorset) (Con)]

Surely it is essential that we stand shoulder to shoulder with our allies. Huawei is already involved in our telecommunications network, so if the Government decide not to go further, how on earth do we get it out?

--- Later in debate ---

[Matt Warman]

My hon. Friend is absolutely right to suggest that we have to pay due regard to the great relationship that we have with the US, but we also have to pay attention to the unique position that we are in now, in order to determine the best way to manage this not just for the moment but for the long term. I know that that is what the National Security Council will be thinking about tomorrow.

[Ronnie Cowan (Inverclyde) (SNP)]

Let’s cut to the chase. Can the Minister offer this House a 100% cast-iron guarantee that the resilience and security of digital connectivity in the UK will not be compromised by any future deal with Huawei?

[Matt Warman]

The Government will always put the interests of our national security at the very top of their agenda.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does the Minister agree that, however cheaply Huawei is offering this country the benefit of its 5G technology, if as a result of its participation in the project we risk jeopardising our position within the Five Eyes or our access to shared intelligence, Huawei’s price will be too high for us to pay?

[Matt Warman]

My hon. Friend articulates well the value of our national security. This is not just about Britain, but about Britain’s place in the world among our allies. That starts in many ways with Five Eyes, but it goes a lot further. When we make this decision, we must ensure that those considerations are put at the top of the agenda.

[Wera Hobhouse (Bath) (LD)]

Away from security concerns, many communities across the UK, including my constituency, have concerns about the risk to human health. Is the Minister aware of any way in which Huawei is addressing such concerns?

[Matt Warman]

The hon. Lady provides me with an opportunity to point to Public Health England and World Health Organisation advice that properly implemented 5G technology does not pose any significant risk to human health. The often genuinely worried people who have raised such concerns should be pointed to that advice, because the roll-out of 5G will not be done in a way that poses any risks to human health, regardless of the manufacturer involved.

[Henry Smith (Crawley) (Con)]

Robust exchanges have obviously taken place with the United States and we know its opinions, but what discussions have the UK Government had with other Five Eyes allies, such as Australia and New Zealand, which have blocked the use of Huawei in their future 5G network, and Canada, which is still considering its options?

[Matt Warman]

My hon. Friend is right to point to a whole host of countries. Germany is another one that is having a similar conversation, and I was there last week. Such conversations will be ongoing, but we should bear in mind that Britain starts in a unique position. International comparators are valuable, and the words of our allies should be given close attention, but none of them is in the unique position that the United Kingdom stands in at the moment.

[Tim Loughton (East Worthing and Shoreham) (Con)]

From Hong Kong to the horn of Africa, China and its front companies have form in using technology for espionage and cyber-disruption. Given that some of our most important major allies have said no thanks to Huawei, and given that the costs of cyber-attacks can ultimately far outweigh the outlay on networks and hardware, what exactly is the downside of shopping around for a low-risk vendor from a country we can call an ally?

[Matt Warman]

My hon. Friend highlights the dilemma that everybody faces in a world in which there are not as many vendors of this kit as we would all like. We have to balance the primary interest in national security against other things. He is right to say that we must consider the long-term consequences when it comes to cyber-attacks and the reputation of this country’s infrastructure around the world.

[Virginia Crosbie (Ynys Môn) (Con)]

Will my hon. Friend assure me that rural areas and islands such Ynys Môn will not be left behind as we roll out 5G across the country?

[Matt Warman]

That question provides me with the opportunity to welcome my hon. Friend to her place representing that great constituency. Our 5G test beds and trials programme looked at rural areas and constituencies such as hers, so that we ensure that Britain leads the world when it comes to rolling out this technology.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The Minister quite rightly supports the case for open trade, but do we not also need fair trade? When making such decisions, should we not take into account the fact that companies such as Huawei receive significant financial support from the state, which puts western companies at a competitive disadvantage?

[Matt Warman]

My hon. Friend is right to underline just how complex the decision will be, and that is yet another aspect to be considered. It is also important to say that national security will come top of the agenda.

[Gary Sambrook (Birmingham, Northfield) (Con)]

Many Birmingham businesses are hugely excited by the roll-out of 5G, especially because of the productivity and job creation opportunities, but they are also nervous about what they read in the press. Will the Minister assure me and businesses in Birmingham that he will do everything within his power to ensure that the 5G network will be sufficiently safe?

[Matt Warman]

I have spoken to Andy Street, the great Mayor of the West Midlands, about precisely this topic. The roll-out of 5G in the west midlands will bring huge potential benefits to businesses, but of course it will bring no benefit at all if people doubt the security of Britain’s infrastructure, which is why we will always put it at the very top in Birmingham and beyond.

Telecommunications Infrastructure (Leasehold Property) Bill

Matt Warman Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion
Wednesday 22nd January 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

I beg to move, That the Bill be now read a Second time.

With apologies to T.S. Eliot, it is obvious that the naming of Bills is a difficult matter, but this Bill’s title does not do it justice. The Government are committed to delivering the infrastructure that this country needs, and the Bill is the first step on that road. To continue to channel T.S. Eliot, we know that if we do not deliver that infrastructure, too much of this country will be a digital wasteland.

[Sir Desmond Swayne (New Forest West) (Con)]

The Minister is right: this is the first part of a much greater endeavour. An increasing number of younger people find that they can do without a landline at all, so can he reassure me that this great, expensive endeavour will not be overtaken by the development of new technology, particularly as regards 5G, that will render it obsolete?

[Matt Warman]

I can absolutely assure my right hon. Friend that our approach to connectivity is technology-agnostic, and 5G is very much part of the solution, rather than something leading to the exclusion of connectivity. He is right to imply that we aim to go significantly beyond current demand to pre-empt the sort of problem that would occur if we did not build far in advance.

The Prime Minister and this Government have been unwavering in their commitment to the delivery of high-speed, reliable, resilient connectivity to every home and business as soon as possible. For the United Kingdom to remain at the forefront of the global economy, our businesses and consumers must have access to the tools they need to thrive. Already, our superfast broadband programme covers over 96% of the country and has brought connectivity to more than 3 million premises that would otherwise have been bypassed by commercial deployment.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Labour Members recognise the importance of faster broadband. Indeed, I have worked with previous Ministers on this, and on the issue of notspots in my constituency. Does the Minister agree with me on the importance of the issue to young children, who need to study and do their school homework, and to people working at home? Issues have been raised about that in my constituency. Does he agree that the essential criterion of affordability must also be part of the Government’s strategy?

[Matt Warman]

Yes, the hon. Member is absolutely right. Teachers can only teach at the pace of the slowest broadband in the class if they are using digital technology; we have to be cognisant of that. We, with Ofcom, also have to be determined to ensure that competition continues to preserve the low prices that this country has typically benefited from.

[Seema Malhotra]

May I make a point of clarification? I was talking about children studying at home, and being able to do their homework. That is the issue raised with me by my constituents, particularly in areas where there are leasehold properties.

--- Later in debate ---

[Matt Warman]

The hon. Member is absolutely right. My point about teachers was that when they send pupils home to do their homework, pupils must of course have to have the tools to do it. The pencil is now digital, shall we say?

On that point, the universal service obligation will give people in the UK the legal right to request a decent and affordable broadband connection if they cannot get 10 megabits per second, and we intend to invest £5 billion to ensure gigabit-capable networks are delivered without delay to every area of the country. We are proud of the work that we have done, and continue to do, to support deployment across the United Kingdom, from the Scottish highlands to Cornwall, from Armagh to Anglesey, but the digital revolution is far from finished.

[Damian Collins (Folkestone and Hythe) (Con)]

Will my hon. Friend give way?

[Matt Warman]

I give way to the former Chair of the Select Committee on Digital, Culture, Media and Sport.

[Damian Collins]

And I am standing for re-election, as the Minister knows.

The Bill gets rid of unnecessary delays in rolling out superfast broadband, which is what consumers want. He will know that in some areas of the country, particularly rural, notspot areas, one of the problems is that alternative providers—say, to Openreach—will not come in and provide superfast broadband because they are concerned that it will be overbuilt by another operator. Are there things we can do beyond the scope of the Bill—things he is working on now—to give more certainty to people who want to invest in the network, but want to make sure that they get a fair return if they do?

[Matt Warman]

Absolutely. My hon. Friend will know that the single greatest barrier to rolling out in the final 20% of the country is the risk of overbuild, which makes roll-out uneconomic and potentially makes using public funds even harder. We are absolutely working hand in glove with Ofcom on that, and to ensure that the system that we design ensures that the money—as my right hon. Friend the Member for New Forest West (Sir Desmond Swayne) said, it is a significant amount—is spent in the best possible way.

Those gigabit-capable connections, by which I mean 1,000 megabits per second and above, will ensure that British businesses can retain their global reach. They will be a catalyst for entrepreneurs in areas such as cyber-security, big data and artificial intelligence, and will support innovation in operations that use cloud services and blockchain technologies. They will transform how and where people work and collaborate.

Perhaps the most exciting promise of gigabit broadband is for consumers, because as we all know, poor internet connections hold people back. They prevent children from doing their homework, the ill from arranging appointments to see their doctors and those who need it most from saving money online. It was superfast broadband that facilitated the rise of Netflix, Spotify and the iPlayer; gigabit broadband, with its improved reliability, resilience and speed, will herald the era of the internet of things, the connected home, integrated transport networks and personalised healthcare, and that is why this Government are committed to investing in it across the country.

[Julian Sturdy (York Outer) (Con)]

I wonder what conclusions my hon. Friend draws from York, which became a gigabit city in 2008, and whether the Government are looking at that example and learning from what has happened in that great city.

[Matt Warman]

York is an exemplar for these sorts of projects. It demonstrates why investment is the right thing to do for the commercial sector, and why it is right for the state to support it. I look forward to the other place seeing the Bill in much more detail. That will happen imminently, I am sure—or maybe not; we will see.

As I say, superfast broadband facilitated the original internet that we are so familiar with, and gigabit will do so much more. It will support older people in staying independent for longer, will allow people to work how and where they choose to a much greater extent, and will make sure that commuters can join up their life in a much more effective way. However, the benefits for businesses and consumers can be realised only if digital infrastructure providers such as Openreach, Virgin Media, CityFibre and many others—increasingly more—can access homes, workplaces and public buildings such as hospitals and train stations. It is for that reason that this Government have made the deployment of gigabit broadband one of our key priorities.

With this Bill, we are taking the first hammer blow to the barriers preventing the deployment of gigabit connectivity. We will similarly take aim at new-build homes that are being built without access to futureproof connections, and we are exploring how we can make it easier for digital infrastructure providers to share the infrastructure of others, and how we can promote 5G mobile services by simplifying the planning regime.

[Daisy Cooper (St Albans) (LD)]

The Minister mentioned delays. I welcome the Bill, although it is overdue, and its objectives. One of our challenges, however, is that up to 3,000 applications a year could be going to the tribunal from suppliers wanting to secure access. The Minister said that he would be taking a hammer to the delays and barriers; what will he do to ensure that the tribunal has the capacity and resources to process those applications and ensure that they go through?

[Matt Warman]

The hon. Lady is absolutely right that the system is only as good as the resourcing behind it. We will explore every option to ensure that the tribunal gets those resources. We are confident that what we are proposing will work—we will make sure that it does—but of course we are open to considering what we can do to make it better as soon as we might need to.

[Seema Malhotra]

I thank the Minister for giving way again. Will he clarify how he envisages the Government working with the devolved Administrations and councils —we should bear in mind the very good work with Transport for London on connectivity through tube stations—so that we get the maximum for the investment made from the public purse?

[Matt Warman]

Telecommunications is a reserved matter, but I have already discussed how the system will work through the equivalent tribunal schemes in the devolved Administrations. The hon. Lady is absolutely right that although bodies such as TfL are not directly affected by the Bill, we are working with colleagues at the Department for Transport to make sure that London and other places get the connectivity that they deserve on public transport. Plans are forthcoming for wider deployment of the wi-fi system that is currently available only in stations.

As I say, the Bill ensures that those living in blocks of flats and apartments—known by the telecommunications industry as multi-dwelling units, or MDUs—are supported in accessing new networks. Operators have raised concerns that multi-dwelling properties are proving exceptionally difficult to connect. As I am sure Members will know, operators require the permission of a landowner before they are permitted to install equipment on a property.

[Mrs Flick Drummond (Meon Valley) (Con)]

I welcome the Bill, which will help those people, but what about commercial tenants in business parks? I am thinking particularly of rural areas such as Meon Valley, where there are problems with connectivity.

[Matt Warman]

My hon. Friend is right that we should not simply look at residential property. We are exploring with the industry what that issue looks like; the Bill has been carefully designed to make sure that it delivers on what both the Government and industry feel is right. Obviously, commercial property is different. It is less prone to the sorts of issues that we are tackling here, but I will be happy to work with my hon. Friend to see what we can do to help Meon Valley in particular.

For those who own their houses, the issue is simple: they request the service and sign a contract, and an operator does the installation. However, for those in flats, whether rented or owned as a leasehold, the permission of the landowner or building owner is required for the common areas—the basement, corridors, stairwells and so on. Currently, on identifying a property in their network build area, operators will attempt to contact landlords, request permission to install, and offer to negotiate a long-term agreement on access. Those wayleaves set out the responsibilities of both the landlord and operator in respect of the installation.

Evidence from operators, however, suggests that across the UK’s major digital infrastructure providers, about 40% of requests for access issued by operators receive no response. That cannot be acceptable. Through inactivity, a building owner can prevent multiple families and households from accessing the services that, as so many people have said, are essential for modern life. The UK’s digital infrastructure providers are already upgrading this country’s broadband network. Failure to address this issue now will give rise to pockets of connectivity disparity. Neighbours will have different connections, based on whether they own a house or flat, and on whether their landlord is engaged or absent. That cannot be fair, and the Government are acting to address it.

This is about commercial realities. The Prime Minister and I made it clear to the industry only last week that we want nationwide access to gigabit-capable connection as soon as possible. Our ambition is to deliver that by 2025.

[Edward Timpson (Eddisbury) (Con)]

We all welcome the Government’s commitment to full-fibre broadband, particularly in Eddisbury, where it remains pretty woeful, but the quality of mobile phone coverage also leaves a lot to be desired. Will my hon. Friend update the House on what is being done through the shared rural network to improve that through a final agreement, and will that include indoor as well as outdoor coverage?

[Matt Warman]

My hon. Friend is right that mobile coverage, while unrelated to the Bill, is an essential part of the connectivity solution. We have committed to the industry concluding its negotiations in the first 100 days of the Government, which takes us to the middle of March, and we are on track for that. On measurement of a network, we have historically been lumbered with standards that are not terribly useful. We need to do more to ensure that we provide the right kind of information to consumers; Ofcom and the Advertising Standards Agency have a hand in that, alongside Government.

If operators are to achieve our ambitious target, they need to get on and deploy their engineers and civil contractors, and to keep them moving to maintain momentum. They cannot afford to keep their teams idle while they wait for a response from a landlord that never materialises; from a commercial point of view, it makes more sense to bypass the property and its residents and deploy elsewhere to prevent that situation. The Bill will create a new application process in the courts that will allow operators, when faced with an unresponsive landlord and with a resident requesting a service, to apply to the courts to gain the rights to install.

It is important to make it clear that the new court application process is a last resort for operators. The key goal of the legislation is to increase the response rate to operators’ requests for access. The Government have always believed—and continue to believe—that the best, most efficient way for operators to install equipment in a property is through a negotiated agreement being reached between the operator and the landlord.

In December 2017, this House passed the Digital Economy Act, which among other things updated the electronic communications code. The code provides a regulatory framework for the relationship between landlords and telecommunications operators and includes provision for the operator to use the lands chamber of the upper tribunal, or its equivalent in the devolved Administrations, to have rights imposed in situations where a landlord is unresponsive.

To the best of my knowledge, as I speak, operators have not sought to use that power to address an unresponsive landlord, in part because they estimate that it will cost £14,000 per application, including legal fees and administrative costs, and take six or seven months in practice, and the outcome would by no means be certain. However, there are estimated to be 450,000 multi-dwelling units in the UK, housing some 10 million people. If operators’ current 40% failure-to-respond rate is projected across the country, we are talking about 180,000 cases and some £2.5 billion in costs. I am sure that Members will agree that the money and effort would be better used delivering better connections. The new process proposed by the Bill is proportionate and balanced, and places an exceptionally low burden on the landlord and a high evidential requirement on the operator.

An operator will be expected to have a tenant in the property who has requested a service. They will have issued multiple requests over 28 days and, thereafter, a final notice that explicitly says that the court may be used to gain access, and they will be able to show evidence of all the above to the courts. A landlord who wishes to take themselves out of the policy’s scope need respond to only one of the operator’s multiple notices. I am sure that hon. Members will agree that responding when someone writes is simply a courtesy. The expectation is that applications made to the tribunal through the provisions in the Bill will allow judges there to make decisions based on operators meeting an evidential threshold. This will allow decisions to be reached quickly and efficiently. Discussions are still ongoing about how we can make the process even faster.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Minister has said that landlords will have opportunities to respond. If, for whatever reason, they do not respond, and they find themselves in the tribunal, will any costs fall upon them?

[Matt Warman]

The charging landscape will be set in collaboration with the tribunals and—I suspect that the hon. Gentleman will care about this in particular—the devolved Administrations, but the whole point of this regime is for it to be faster and far more affordable than the current regime. As we work with our colleagues in the Ministry of Justice and the devolved Administrations, we will have that at the front of our minds.

If applicants are successful, they will gain interim rights under the electronic communications code in relation to a property. Those rights will allow them to install, maintain and upgrade infrastructure for a period no longer than 18 months and will be accompanied by strictly defined terms regarding their use. These terms, which we have committed to consulting on publicly, will set out the standard to which works must be completed, and will make it clear that care must be taken to minimise the impact on other residents. If an operator wishes to continue providing a service to the building after the interim code rights have expired, and the landlord continues to be unresponsive, applicants may use provisions in the electronic communications code to apply for full rights. Time-limiting the rights to a maximum of 18 months incentivises operators to continue their efforts to contact landowners so as to avoid the cost, time and uncertainty of making a further application to the tribunal. It also ensures that where a landowner does engage, there is sufficient time for negotiations to take place and an agreement to be reached without disruption to residents’ broadband service.

To conclude, this is a technical Bill that achieves a specific purpose, but it does that in the context of the Government’s significant scale of ambition in this area. Gigabit broadband will be the enabling infrastructure of the next century. It will turbo-charge businesses, facilitate innovation and change how we work, live and engage in society, and how society engages with us. It is good for every part of this country, for our economy and for the public. The Government will support every home—every family wanting to shop online, and every pupil wanting to do their homework—whether it is in the middle of a city or the middle of nowhere, and whether it is a mansion, a terraced house or a block of flats. The Government will help them all to be part of this country’s gigabit future. I commend the Bill to the House.

--- Later in debate ---

[Matt Warman]

I thank the Labour party for its support, however grudging. It is important to say what this Government have done over the last 10 years, however the hon. Member for Batley and Spen (Tracy Brabin) describes them; they have fostered the largest digital economy in the G20. That success does not happen by accident; it happens through effective regulation that supports investment from the private sector. We need a proper plan, she said, and we have got one. What the Opposition have is a plan to nationalise BT at a cost of £100 billion—or at least I think that is what they have, because when she was asked that question, I did not hear a full-throated endorsement of the Labour manifesto position. Perhaps she is just positioning herself for her future leader. None the less, I enjoyed her reference to the Spanish Armada and I look forward to an historical tour de force that covers bells and a whole host of telecommunications infrastructure as we work through the passage of this Bill in Committee.

The hon. Lady raised a number of points. We consulted extensively in ending up with this solution. We will, of course, continue to be flexible where we can be to make sure that it evolves if it needs to. It is, as the hon. Lady said, a bespoke process that is dedicated to the telecoms industry. She is right that it would be silly to suggest that this should be treated in exactly the same way as other infrastructure, but we need to bear in mind the fact that digital infrastructure will become progressively more vital, as well as the question of how we line up the appropriate regimes.

[Paul Girvan (South Antrim) (DUP)]

When it comes to the infrastructure for broadband and its delivery, we are at the mercy of very few suppliers or providers. Unfortunately, although they put money into their pockets, they sometimes do not deliver at all to rural communities. That is our problem in Northern Ireland: there is money there, but the providers cannot deliver.

[Matt Warman]

The hon. Gentleman is right that effective competition is absolutely essential to rolling out broadband in the best possible way. I have seen for myself in Dundrum and Belfast a whole host of really excellent work in Northern Ireland, demonstrating not only that it can be done but that it can be done at an even more efficient price than in some parts of the rest of the United Kingdom. Good work is going on that promotes competition. The role of the Government is, of course, to make sure we get maximum value for money across the whole of the United Kingdom.

I pay tribute to both the new Members who spoke for the first time. My hon. Friend the Member for Totnes (Anthony Mangnall) asked us to reimagine what a significant encounter might look like, but, more seriously, elsewhere demonstrated the depth of knowledge and breadth of expertise that he brings to this place. His constituents are lucky to have him, even though he is neither a communist spy nor a mystic—to our knowledge. Just as the Bill represents a significant upgrade for broadband in this country, my hon. Friend is an upgrade on communist spies and mystics, so we pay tribute to him.

I also welcome my hon. Friend the Member for Bury South (Christian Wakeford). He was initially somewhat disparaging about the Bill, and I was worried. But he showed genuine expertise on the topic as well as on antisemitism, one of the most challenging issues of our age. I also pay tribute to his courageous predecessor. I know from his funny and down-to-earth speech that he will be a worthy Member of this place.

Finally, my hon. Friend the Member for Bishop Auckland (Dehenna Davison) said that she had seen two new Members becoming initiated into full involvement in this place; I should say that full involvement comes when one colleague like her says something nice about me while another—who I shall not name—heckles to say that she is probably wrong. Welcome to politics. My hon. Friend is of course right to say that the Bill introduces things that will make a real and meaningful difference—not just in urban constituencies, but across the country. People are living in multi-dwelling units and blocks of flats in all our constituencies.

I am also, of course, happy to discuss some of the other issues that various Members raised in this debate. Some of those will come out in Committee. I was grateful to receive applications from a number of Members to serve on the Bill Committee—we will try to ensure that they do not regret it. It will be an important piece of legislation and I am grateful to them for their expertise in this debate and beyond.

To conclude, I am sure that we can continue to work together across the House to bring this important Bill into law as soon as possible, and on the other legislation that forms the building blocks of a comprehensive plan to deliver gigabit-capable networks across this country.

We are bringing this Bill forward first because it allows us to crack on with a plan that we would otherwise have to deliver by waiting for a single, larger piece of legislation. The Bill allows us to address some aspects of a broader challenge, and we will get on with the rest of the plan as soon as possible.

[Chi Onwurah]

rose—

[Matt Warman]

I look forward to encountering the hon. Lady across the Dispatch Box—it would be mean not to give way to her.

[Chi Onwurah]

I was pleased to hear the third or fourth reference, I think, to a plan. Will he share with us when he will publish the plan for gigabit-capable broadband delivery?

[Matt Warman]

We will, of course, be talking much more extensively and consulting on various aspects of the plan, which the hon. Lady will see emerge in good time. We are genuinely keen to be collaborative on many aspects of the Bill, because it is good to see cross-party support for a Bill that we all acknowledge is important. We hope to be able to do the vast majority of any legislation with cross-party support, because that is the right thing to do.

Government Members care passionately about this issue, and I am sure that the same spirit will continue as the Bill makes its passage through the House. This is a real contribution to the agenda of levelling up across the country and bringing digital infrastructure to every school, home and classroom in a way that allows all our constituents to benefit from the infrastructure that they deserve, and from a digital revolution that this Government will foster.

Question put and agreed to.

Bill accordingly read a Second time.

Telecommunications Infrastructure (Leasehold Property) Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Telecommunications Infrastructure (Leasehold Property) Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 6 February 2020.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Mr Marcus Jones.)

Question agreed to.

Oral Answers to Questions

Matt Warman Excerpts

Thursday 16th January 2020 Commons Chamber

[Tracey Crouch (Chatham and Aylesford) (Con)]

1. What steps her Department is taking to roll out full-fibre and gigabit-capable broadband to every home and business throughout the UK by 2025.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

I begin by paying tribute to the former right hon. Member for Loughborough, who is now Secretary of State for Digital, Culture, Media and Sport from the Lords. She is still very much the Secretary of State, and following her elevation, she will shortly be watching us from the Public Gallery. She will take questions—[Interruption.] She will be here shortly. She will take questions in the Lords herself next week.

I also pay tribute to my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch). She asks about one of the few areas in the Department for Digital, Culture, Media and Sport for which she was not responsible, but she knows how vital gigabit broadband will be across the whole country. Finally, I pay tribute to the British people for rejecting Labour’s economically and technologically illiterate broadband policy at the election.

[Tracey Crouch]

The Government’s ambition for full fibre is to be applauded, but while coverage is generally good across the majority of my constituency, I still receive regular complaints from residents and businesses that are unable to access even superfast broadband, including in significant pockets of urban areas such as Chatham, Aylesford, Ditton and Snodland, as well as more rural villages, where residents are deeply frustrated at the lack of coverage. With so many people and businesses reliant on access to decent broadband, what assurances can the Minister give that the future roll-out of broadband infrastructure will address those more localised notspots and that they will not simply be left behind?

[Matt Warman]

My hon. Friend is right that notspots are by no means confined to rural areas. Through the Government’s voucher scheme, we are covering all of the country, and the 2025 commitment to gigabit broadband remains. The crucial issue is the universal service obligation, of which she will be aware. Fifteen per cent. of her constituents get less than the 10 megabit limit. They will benefit from that later this year.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

This is my first questions session shadowing the Digital Minister, who, as a former tech journalist, knows something of his subject—and as a former telecoms engineer, so do I. We both know that in towns, villages and cities, everyone is suffering the consequences of a wasted decade. Under Labour, we rolled out first-generation broadband to half of all homes within a decade. But today, full-fibre broadband only reaches a mere 10% of homes, and we languish at the bottom of all the international tables. The Prime Minister has promised full-fibre broadband for everybody in five years. Does the Minister have a plan for that? Who will be delivering it? How much will it cost? Will it really be fibre or just gigabit capability—or are Big Ben’s bongs the only telecoms infrastructure that he can plan for?

[Matt Warman]

As an engineer, I think the hon. Lady will know that a bell is not telecoms infrastructure, but we will leave that to one side. The important issue that she raises is one on which there is some cross-party agreement. We are completely committed to rolling out gigabit-capable networks across this country. That means building on the work of the superfast programme to ensure that we deliver the infrastructure needed across the country. The plan for that will come forward. I hope she will welcome the news that, immediately after questions, we will be heading to No. 10 to meet the broadband providers, to ensure that the industry can come together to deliver the best possible infrastructure, which this country needs.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

The universal service obligation is welcome to my constituents in Suffolk and to many rural residents, but for rural businesses, the basic service commitment may well not be enough. What more can the Minister do to support rural businesses that need a large amount of broadband capacity to support their staff and expand their businesses?

[Matt Warman]

My hon. Friend is right to welcome the universal service obligation. Schemes such as our gigabit broadband voucher scheme allow businesses to access the far faster speeds that they need, and there is provision in due course to review whether 10 megabits is sufficient for the USO. I would like to see it go up as soon as it can.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

Will the Minister congratulate my constituents who are involved with Broadband for the Rural North—B4RN—which prides itself on delivering full-fibre gigabit broadband, not just gigabit-capable broadband, to thousands of properties in my constituency? Phil Hughes from B4RN tells me that it is much cheaper sometimes to deliver this broadband in very rural areas than in semi-urban areas, where “in pavement” build is needed. Can the Minister clarify that the Government’s new gigabit voucher scheme will also work for smaller, community interest companies such as B4RN?

[Matt Warman]

The hon. Member is absolutely right that B4RN does really great work and has been doing so for a number of years. It has a huge amount of expertise that I hope we can learn from when it comes to working across the country. One of the issues that we will be raising at the summit that I mentioned, which we will be heading to shortly, is street works. It is very important that that does not hold up works unnecessarily. She is of course also right to say that the voucher scheme needs to apply equally across the country in a way that works wherever people live.

[David Duguid (Banff and Buchan) (Con)]

My constituency of Banff and Buchan is among those with the lowest coverage of superfast broadband in the whole United Kingdom. Aberdeenshire Council applied to the UK Government for additional support. One of the reasons it was declined, it was told, was that it was assumed that that would be covered by the Scottish Government’s R100 programme—the Reaching 100% programme. Now that the Scottish Government have admitted that this is going to be at least two years behind, can we revisit the coverage in places such as Banff and Buchan, with support from the UK Government, to make up for the shortfall left by the Scottish Government?

[Matt Warman]

My hon. Friend is right to highlight the deeply disappointing delays to the R100 scheme administered by the Scottish Government. I will shortly be meeting my Scottish counterpart, Paul Wheelhouse, again to see how the Government can help the Scottish Government to go further and faster, because they certainly need to.

[Ruth Jones (Newport West) (Lab)]

2. If she will make it her policy to maintain free TV licences for people over the age of 75.

--- Later in debate ---

[James Wild (North West Norfolk) (Con)]

T5. While I warmly welcome the pledge to deliver gigabit broadband, many of my constituents in Grimston, Heacham, Brancaster and other places have yet to receive speeds of 10 megabits per second. Will the Minister confirm that the plans are ready to deliver minimum speeds from March, and that the Government will hold BT to account to do that?

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

My hon. Friend is right that we must ensure that the 10-megabit universal service obligation is delivered on the ground. We will of course continue to talk to the two providers— BT and KCOM—to ensure that it is there when it needs to be in March this year.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T4. The Scottish Government received just £21 million of UK Government funding for broadband—3.5% of the total funding in Scotland—with the other £580 million being paid by the Scottish Government. Despite the nonsense we often hear in this Chamber, broadband is a matter reserved to the UK Government. Will the Minister therefore explain why the UK Government are failing properly to fund broadband in Scotland?

[Matt Warman]

The hon. Lady is right that we hear a lot of nonsense in this Chamber—primarily from the SNP Benches. It is deeply disappointing that the Scottish Government’s delivery of R100 has been delayed again. The UK Government have provided significant amounts of funding, and we will continue to work with the Scottish Government to provide the help they so clearly need.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

T7. The Conservative-led Stoke-on-Trent City Council is working to roll out full fibre broadband across the Potteries with this Government’s unique funding. Given that Staffordshire University is a pioneer in game design and video production and that this new Conservative Government will be rolling out full gigabit broadband across the country, does my hon. Friend agree that silicon Stoke is a real possibility?

[Matt Warman]

Silicon Stoke is certainly a real possibility, and my hon. Friend is right that that is in part due to this Government’s £5 billion commitment. I welcome the council’s work with certain companies, which shows that if we look further than the usual suspects, we can get action on the ground that delivers huge economic growth.

[Kerry McCarthy (Bristol East) (Lab)]

T6. The EU copyright directive could be of real help to those who make perhaps a modest living in the creative industries. Actors who appeared in shows such as “Casualty” or “Holby City”, for example, would find it easier to get the repeat fees to which they are entitled. Will the Government assure us that the directive will be transposed into UK law as soon as possible?