Rural Phone and Broadband Connectivity

Debate between Alan Reid and Robert Smith

Tuesday 3rd February 2015 Commons Chamber

[Mr Reid]

My hon. Friend is correct. We all knew for months, if not years, in advance that NATO was meeting in south Wales. His comments clearly indicate that BT looks for excuses to declare MBORC.

As several hon. Members have mentioned, BT Openreach is in the privileged position of having a monopoly on landlines. It should not be able to dodge its responsibilities for months simply by declaring MBORC. Will the Minister look at the regulations again?

The universal service obligation is supposed to guarantee a landline service no matter where one lives, and my constituents are quite rightly fed up being told that if they lived in Glasgow their phone line would be repaired quickly, but that they will have to wait months because they live in a rural area. I hope the Minister will look at the regulations again. Heavy fines need to be levied for failure to repair faults in a reasonable time and for not turning up to appointments. If BT was faced with heavy fines, it would be compelled to employ enough engineers.

[Sir Robert Smith]

It also transpires that Openreach pays compensation to service providers, but not all service providers necessarily pass that compensation on to the end user. Perhaps if there was more of a compensation culture the management would be more efficient about maximising repairs.

[Mr Reid]

My hon. Friend makes a good point. Fines are necessary to encourage companies to carry out their responsibilities properly, and not just use the cop-out of declaring MBORC.

On mobile phones—the problem is not just with landlines—Vodafone cannot escape criticism either. Its performance in carrying out repairs has been poor. For example, last summer it took 18 days to repair a fault on the isle of Islay, and another fault on Islay in December took even longer to repair. These are not isolated cases. There is now yet another fault on Islay that is taking ages to repair, and there have been several instances in other parts of Argyll and Bute of long delays. When challenged, Vodafone dodged responsibility by blaming the many other companies involved in tracking down and repairing faults.

A mobile phone service is not a luxury these days, but a necessity—for example, if someone’s car breaks down on a quiet country road or a farmer has an accident. I am aware of a farmer who broke a leg. He was conscious and able to use his mobile phone, but because he had no signal, he had to lie in severe pain until somebody found him. That shows the importance of mobile phone coverage these days. It is an essential, not a luxury.

I am pleased the Government have reached an agreement with the mobile phone companies. It means that the latter will be investing at least £5 billion over the next three years to extend coverage and improve signal strength, and that the number of places not covered by mobile coverage will reduce by two thirds. However, I will keep fighting for 100% coverage and speedy repairs, because speedy repairs are as crucial as the original investment. It is no good having a box-ticking exercise with an investment strategy, and then failing to maintain the service. Constituents with contracts with Vodafone are entitled to use the service. Leaving everything to the market is no good, because the mobile companies and BT Openreach would simply concentrate on the densely populated areas and ignore the highlands and islands. The Government should introduce performance standards for repairs and fine companies that fail to meet them.

Having criticised Vodafone for its failure to carry out repairs in a reasonable time, I want to congratulate it on its Rural Open Sure Signal programme, which will bring mobile phone coverage to several villages in my constituency. However, I urge it to follow up the initial investment and all the publicity with a proper repair service, because that investment is no good if the system does not work.

I was pleased when in 2013 the Government gave Arqiva a contract to build mobile phone masts in places where there was no signal. The new masts were supposed to be up and running by the end of this year, but from the experience of Argyll and Bute, this programme seems to have badly stalled. The last time I met Arqiva, it could not say where in my constituency the new masts were to be sited or when they would be constructed. We need more transparency, and I hope the Minister will tell Arqiva to publish its intentions now. We need to know where the masts are going and when they will be put up.

Bringing superfast broadband to rural areas is vital. I am pleased that more than 20% of the Government’s investment in superfast broadband—more than £100 million—was given to the Scottish Government to bring superfast broadband to rural areas in Scotland. However, delivery was left to the Scottish Government, and they gave the contract to BT Openreach. Cables have been laid and some addresses have been connected to the new superfast broadband, but most of Argyll and Bute is extremely frustrated that neither the Scottish Government nor BT can tell them when, or even if, they will get broadband. Some people on very slow speeds tell me they do not want superfast broadband; they just want a decent broadband service.

The Scottish Government and BT must be much more open and tell people when, or if, their home or business will be connected to fibre-optic broadband. Not knowing what is happening prevents people from making other arrangements, such as wireless or satellite. Given these failings, I must congratulate a local organisation on its initiative. Mull and Iona Community Trust, well led by its extremely enterprising general manager, Moray Finch, is leading the way with a project that will deliver superfast broadband by wireless to parts of Mull and Islay, as well as to the islands of Iona, Colonsay, Lismore, Luing and Jura, and to Craignish on the mainland. MICT has done very well, but that same type of project should be going on throughout Argyll and Bute, because in many places it is simply not practical to deliver superfast broadband via fibre-optic cable. I want the Scottish Government to follow the lead of the Mull and Iona Community Trust and work with community groups throughout Argyll and Bute to deliver superfast broadband everywhere in the constituency.

It is not just in remote rural areas that problems arise. BT promised that the town of Dunoon in my constituency would get superfast broadband paid through BT’s own resources last year. However, this was postponed without any announcement—it was only when people started complaining that we found this out—and it is supposed to be happening this year, but there is still no sign of anything happening. Some constituents receive extremely slow broadband speeds of well under a megabit in some cases. It is high time that BT got the work done and gave my constituents a decent broadband service.

Broadband and mobile phone services are essential these days. Investment in infrastructure and much speedier action when faults occur are essential. The Scottish Government and BT must drastically improve their performance to bring superfast broadband to Argyll and Bute as a matter of urgency. BT and Vodafone must drastically improve their performance when repairs are needed. The loss of both landline and mobile phone services in Argyll and Bute this winter has been unacceptable. I call on the Government to beef up the regulations so that phone companies can be fined for poor performance when repairs to the phone infrastructure are needed.

Universal Postal Service

Debate between Alan Reid and Robert Smith

Thursday 17th July 2014 Commons Chamber

[Mr Alan Reid (Argyll and Bute) (LD)]

I congratulate the Backbench Business Committee on giving us time to debate this important issue, and my constituency neighbour, the hon. Member for North Ayrshire and Arran (Katy Clark), on introducing it in a very measured and sensible way. It is a pleasure to follow the hon. Member for Ynys Môn (Albert Owen), although I must correct him on one point. Before Postcomm introduced licence conditions for Royal Mail, it had refused to deliver to the lighthouse he mentioned, so not everything was perfect in the past.

The universal postal service is obviously extremely important to my constituency, with its scattered population and its many islands, and to all rural constituencies in the country. Royal Mail has an extremely dedicated work force, who go out in all weathers to deliver the mail, often up muddy tracks and in very difficult conditions, and they have a detailed local knowledge that private rivals simply do not have, as in the example given by my hon. Friend the Member for West Aberdeenshire and Kincardine (Sir Robert Smith).

I supported the Postal Services Act 2011 because it enshrined the universal service obligation into law. That means that Royal Mail is legally obliged to deliver to every home and business in the country, as well as to collect from every post box in the country six days a week, at the same price throughout the country. To back up the legal requirement, the Act imposed on the regulator, Ofcom, the legal responsibility to ensure the sustainability of the USO.

We must remember that competition is not new—it did not just start with the 2011 Act—because it was introduced more than 10 years ago by the previous Government, who, in an all-too-familiar story, gold-plated a European directive. Competition means that delivery companies can cherry-pick cheap-to-deliver urban areas, and leave Royal Mail the more expensive job of delivering to sparsely populated rural areas, such as my constituency. As has frequently been pointed out, Royal Mail relies on its cross-subsidy from profitable urban routes to sparsely populated rural routes.

TNT Post has made most use of the ability to cherry-pick the areas to which it is cheapest to deliver. Its end-to-end business has expanded rapidly since it started trials for the service in west London in April 2012. According to Royal Mail, TNT aims to cover about 42% of UK addresses by 2017. As well as cherry-picking areas, companies such as TNT can also cut costs by delivering only on certain days of the week.

[Sir Robert Smith]

That point is very important. The Ofcom argument is about volume, but such companies are cherry-picking the very high margin, good-quality business.

[Mr Reid]

My hon. Friend makes an important point. Some forms of high-volume business mail incur lower costs than for people sending Christmas cards or postcards. Obviously, if a company has high-volume mail from a big organisation coming into its system, that is much easier for it to deliver.

In fairness, it should be pointed out that Royal Mail has some advantages. For example, it has a nationwide infrastructure and benefits from economies of scale.

Royal Mail is very concerned about TNT’s plans and sees them as a threat to its ability to deliver the USO. We must always remember that Royal Mail is a private company with a duty to maximise the revenue for its shareholders. Therefore, it may or may not be crying wolf. It is Ofcom’s responsibility to decide whether Royal Mail is crying wolf.

Ofcom has many tools at its disposal to protect the USO. It could impose regulatory conditions on other operators to level the playing field. For example, it could require other providers to deliver over a larger geographical area than just a small urban area or to deliver on more days in the week. Ofcom also has the power to introduce a universal service fund. It can review whether delivering the universal service places a financial burden on Royal Mail and determine whether it is fair for Royal Mail alone to carry that burden. However, that cannot be done before October 2016 without Government direction.

Fuel Prices

Debate between Alan Reid and Robert Smith

Tuesday 15th November 2011 Commons Chamber

[Mr Reid]

I agree with the hon. Gentleman, and I hope that he will give credit to the Government for what they are doing on fuel duty on islands. The high price of fuel obviously has a great impact on people’s living standards, and makes it difficult for anyone trying to run a business on an island or in a remote rural area.

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

My hon. Friend is making the important point, which has come out again and again in the debate, that people in remote rural areas in constituencies such as ours have no choice but to use a car. Does he agree that, in the long run, the Government will have to look at a system of variable road user pricing that is based on the choices available and that will enable essential users to pay a lower price?

[Mr Reid]

I certainly agree with my hon. Friend.

There has always been an environmental argument for higher fuel prices, in order to persuade people to use public transport rather than a car. That argument works fine in a city with plenty of bus and train services, but it falls down completely in a rural area, and particularly in a remote rural area such as Argyll and Bute, where in places there is a bus service only on school days. That might be okay for getting schoolteachers to and from work, but it is no good for anyone who needs to be at work outside school hours. The advantage of road user pricing would be that more could be charged for driving on city roads, with a much lower price for driving on a remote rural road. The problem with fuel duty is that it is a blunt instrument, in that the same level of duty is charged in all parts of the country, irrespective of whether public transport alternatives exist or not.