Superfast Broadband: Rural Communities

Albert Owen Excerpts

Tuesday 21st February 2017 Westminster Hall

[Mr Carmichael]

I confess that of the many difficulties I have encountered in the years I have been dealing with this issue as a Member of Parliament, that is one I have not come across. However, what the hon. Gentleman describes would frustrate us all. The difficulty is that this problem is now beginning to undermine Government policy across the board. The Government as a whole have an interest in the Minister’s Department taking a lead in driving it out.

We are forever encouraging our farmers to diversify, saying that they should be setting up holiday accommodation and finding different ways to bring people into the countryside and add value to their product. Bluntly, however, that requires good connectivity—without that it will not happen.

I recently had contact with a postmistress in Shetland who tells me that her business as a postmistress is now being adversely affected by the intermittent service and extremely slow broadband speeds that she has to deal with. She says customers at the post office are being seriously affected by long waits because of the internet cutting out. As well as the difficulties that slow broadband speed causes her personally, it is considerably affecting her ability to provide a reliable post office service to that community in Shetland. There is a broad measure of political consensus in the House on the provision of post office services, but again, in the areas where it is most challenging it is being undermined by poor connectivity.

I will offer another couple of examples of how this problem affects my constituents. I recently had contact with one constituent in North Roe, right at the north of Shetland, who told me that in one week he had missed out on approximately £800 of potential grant funding for marine equipment as he was unable to open emails and download attachments. He says that he cannot submit fisheries or crofting forms online and that after 5.30 pm he need not even bother trying the internet, such is the quality of service he gets. The best example I got was also from a resident of North Roe, who told me that he tried to load the BT speed tester on his machine but did not have sufficient connectivity to load the page for the test.

The most interesting example came just this week in a piece of correspondence from a constituent in Westray. For the benefit of younger or newer Members in the House, that was a letter, which is what we used to get from constituents. He tells me:

“Access to broadband is not a luxury these days. We do banking and shopping and book flights to the Scottish mainland on the internet, and we communicate by email. Information that used to be on paper is on webpages now. I wrote to Ofcom about BT’s service and their reply referred me to web pages where I could learn about how to escalate my complaint and seek compensation”.

To load those pages, however, he would be required to go to the library in Kirkwall, which is a nine-hour round trip from his home in Pierowall in Westray.

The difficulty is that broadband roll-out, whether south of the border in England and Wales, or in Scotland through the Scottish Government—in partnership with Highlands and Islands Enterprise and BT in my area—is driven by targets. Indeed, the targets themselves may often be misleading. The next generation of roll-out, however, is not just going to be confined to broadband. For us the opportunities come from the availability of 4G and 5G—whenever that becomes a feature of our daily lives.

The Minister should perhaps be talking to his colleagues in the Home Office about the roll-out of the emergency services network. The contract has been given to EE, and that is going to give it an obvious advantage in having control of infrastructure across the whole country. The opportunity is there for much improved 4G coverage through EE. I give EE credit for the way in which it has engaged with communities, certainly in my constituency, but I hear increasing complaint about its willingness to engage with other mobile companies. It tells me that it does not know what features are going to be found in the design of this roll-out, and that it does not know what the mast heights and positions are going to be. This generational opportunity to improve the service is an opportunity for Government Departments to work together instead of in their own individual silos, to ensure that when that provision is ultimately rolled out it brings the maximum benefit to communities across the whole of the United Kingdom and companies across the whole of industry.

[Albert Owen (Ynys Môn) (Lab)]

The right hon. Gentleman is making a constructive point about the roll-out of mobile telecommunications. Are not the industrial strategy and the Digital Economy Bill an opportunity for the Government to look at this 5% of areas, which will predominantly be rural, that are not included in the target of 95% by 2017? A pilot scheme in the Shetland and Orkney Islands and Ynys Môn would be a great example for that going forward.

[Mr Carmichael]

Indeed; I can think of few areas that would be more suitable. I say that not entirely with my tongue in my cheek, because I suspect that anything that can be made to work in the constituencies and communities that the hon. Gentleman and I represent could be made to work anywhere else.

The understanding I want the Minister to take from today’s debate is that the days of centrally driven, top-down roll-outs are over. They have achieved a significant amount in getting targets met and getting out to the low-hanging fruit, as it were. However, for that remaining 5% of areas there will have to be a different approach altogether.

--- Later in debate ---

[Mrs Sheryll Murray (South East Cornwall) (Con)]

I welcome the opportunity to contribute to this debate, Mr Brady. As a former parliamentary private secretary to the Minister’s predecessor, my right hon. Friend the Member for Wantage (Mr Vaizey), I have an active interest in this issue, both from a policy and constituency perspective. Active, fast, reliable, affordable broadband is vital for families, communities, businesses and public services across my rural constituency. In South East Cornwall and across the UK, superfast broadband is now as essential a utility as water and energy. Indeed, I consider it to be the fourth utility.

Our economy, whether urban or rural, is now increasingly dependent on high-quality broadband. I welcome the Government’s commitment to introducing a broadband universal service and the good progress that has been made locally under the superfast project, but it is not good enough. We must strive for 100% connectivity, particularly in isolated rural areas where good internet access is the lifeblood of successful local economies and thriving communities.

I, like many other hon. Members, continue to receive numerous complaints from constituents about poor broadband availability. Unfortunately, many of my constituents do not understand that Superfast Cornwall and, as I alluded to earlier, a partnership between the Lib Dem-led Cornwall Council, the EU and BT are responsible for delivering broadband in my constituency. I will highlight several cases in South East Cornwall that demonstrate the urgent need to provide universal access to superfast broadband.

[Albert Owen]

On a point of clarification, what is the EU’s role? When it works with the Welsh Government all it does is provide funds.

[Mrs Murray]

There was a partnership between the European Union, Cornwall Council and BT. Cornwall was one of the first areas in the country to roll out broadband before the Government undertook their programme, and it was leading on this at one time. Unfortunately, however, the service now being provided to little villages is absolutely dire; they cannot even get a broadband speed of 2 megabits per second.

Cornwall and tourism go together like jam, scones and clotted cream. However, superfast broadband and good internet access is a vital ingredient for running a successful holiday business and retaining and attracting clients. I know at least one small holiday letting business that cannot secure bookings or market effectively due to poor connectivity. That is unacceptable.

Another example of the negative impact of failing communications infrastructure was highlighted to me last week by a local business that is based in Liskeard, although the owners live near the village of Duloe. They are in a notorious broadband notspot and their company operates 24/7 using robotic technology. If the owners had a decent broadband connection, they would be able to look remotely to make sure that the machines are running. Instead, they have to undertake a round trip of an hour and a half to check the machines over the weekend, which is a waste of money and time. The impact on productivity and on the company’s balance sheet should not be underestimated.

Finally, the affordability of high-quality broadband must be addressed. Although I acknowledge that the UK has one of the most competitive communications markets in the world, the cost of business broadband remains too high. An established scrap metal business in my constituency suffers from poor connectivity, meaning that the legally required reporting of vehicles to the Driver and Vehicle Licensing Agency online is virtually impossible. The firm was offered an expensive corporate ethernet solution by BT and Superfast Cornwall. Surely more affordable consumer-style alternatives should be available for small businesses, which work on very tight financial margins. I ask the Minister to consider that carefully and please, please look at how we can ensure that Superfast Cornwall is improving the situation in South East Cornwall and addressing the real notspots.

[Albert Owen (Ynys Môn) (Lab)]

It is a pleasure, as always, to serve under your chairmanship, Mr Brady, and to follow the hon. Member for South East Cornwall (Mrs Murray). I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on how he set out the concerns that many rural communities have across the United Kingdom. There are notspots in urban areas but, as somebody who lives in an urban area during my working week but who goes home to a periphery area, I notice the difference. I can use 4G very comfortably in my London flat but it is difficult to get it in rural areas.

[Alex Chalk]

It comes down to where people are. If they are in a bad area, whether in an urban or rural part of the country, the fact is that they do not have broadband. That is really what matters, not whether they are in a rural or an urban area. It affects people just the same.

[Albert Owen]

I am grateful for that intervention, but I was on the hon. Gentleman’s side when I said that there are notspots in urban areas. However, people there have alternatives. In rural and periphery areas, people rely totally on the roll-out scheme, which has reached 75% in my area. Like the right hon. Member for Orkney and Shetland, I hold regular broadband hubs with communities across my island constituency. We are looking for solutions. We know the problems and issues. On the last occasion, I got the CEO of BT Openreach there to come with his team. He went with the engineers to check the difficult terrains and gave a commitment that there would be 95% coverage by the end of the year.

I have asked the Minister these questions a number of times. Given the Digital Economy Bill and the talk of a universal service obligation by 2020, who will deliver that extra 5%? We in the House of Commons need to join to work together for the 5% club—those not covered by the 95% roll-out, whether in Scotland, Cornwall and other parts of England, Northern Ireland or Wales.

[Mrs Sheryll Murray]

The hon. Gentleman might like to know that the roll-out in my constituency is just over 80% at the moment.

[Albert Owen]

The hon. Lady is contradicting herself. She was saying how poor it was earlier. She is almost leading the way with the Liberal council and the European Union. The Welsh Government work in partnership with the European Union, which specifies certain criteria, including the number of households, which work against some rural communities. However, the Welsh Government have their own policies for those rural communities.

My point is that we need to work together and take a strategic approach. I support the Digital Economy Bill, and I believe that this is a golden opportunity for the Government to work towards helping the last 5% to get broadband at a decent level that can then be improved in future.

[James Heappey]

The point that the hon. Gentleman is making is exactly right. We are talking about the roll-out of superfast broadband, but before the Government race off and start delivering ultrafast, let us make it a priority to ensure that a minimum service of at least 10 megabits per second is available everywhere. We can start doing that now, rather than waiting until the end of the second phase of the Broadband Delivery UK roll-out.

[Albert Owen]

That is absolutely right. The hon. Gentleman has now reinforced that point, and I agree totally. This is the second debate on the trot in which we have agreed. I want the Minister to know that there is no partisanship. I give the Welsh Government the same concerns that I give the UK Government, because we need to work together. I am not knocking BT Openreach either, because I have been out with their staff and seen some of the engineering difficulties they have to deal with.

The people suffering in the 5% are often not on the gas mains and pay more for their fuel. They pay exactly the same price for their broadband and mobile communications as people in inner cities, and they deserve Governments’—plural—time and effort on their behalf. That is the plea I make to the Minister, who is checking my constituency ratings as we speak. If they are high, I will take credit; if they are low, I will blame others. The 5% need to be considered as a priority. The Government and the Prime Minister have talked about an industrial strategy. Broadband should be part of it. We should be talking about giving businesses across the United Kingdom 21st-century communications to allow them to compete on a level playing field with those in other parts of the country.

I did not intend to speak because I thought that this debate would be over-subscribed. I have pushed my luck in coming here and speaking, but I speak for different parts of the United Kingdom, which are coming together to join me in the 5% club so that we can deliver 100% broadband coverage and better mobile telecommunications across the United Kingdom.

--- Later in debate ---

[Matt Hancock]

Yes. Thanks to the support of my hon. Friend and near neighbour on the Digital Economy Bill, we are now bringing in automatic redress as part of that legislation. Perhaps more important than redress is the need to get the universal service obligation through and into force within the timeframe we have set out.

[Albert Owen]

I am grateful to the Minister for acknowledging the roll-out in Wales and other areas, but does he agree—this not a partisan point either—that take-up is low in much of the United Kingdom? What is he doing with the regulator to ensure greater take-up?

[Matt Hancock]

That is a really important point, especially in relation to Broadband Delivery UK areas that are supported by broadband subsidised by the UK Government and delivered through either a devolved Administration or a council. The higher the take-up, the more money comes back into the contract, and that money can go towards helping more people get superfast broadband. We all have a role to play in driving take-up and ensuring awareness. That is not unreasonable, now that the availability figures are getting higher, and work is going on inside Government on how we can drive take-up higher.

There have been calls for public money to be spent. Some £1.7 billion of public money has been invested in the BDUK programme, and £440 million of funding will be returned for reinvestment, either thanks to programmes being delivered at better value and lower cost than expected—that is sometimes seen as rare in public expenditure, but it has been effective in these contracts—or because the take-up means that money is flowing back into the contracts. That will help to provide coverage for up to 600,000 additional premises, and I expect that further reinvestment funding will also come forward. That has been achieved through excellent contract management, especially with local authorities, as well as strong take-up in many areas. Crucially, that has been above expectations. For instance, in Scotland nearly £38 million has been returned to date as a result of the UK Government contracts for reinvestment, and people who have really low speeds—less than 2 megabits per second—can take advantage of the Better Broadband scheme.

The right hon. Member for Orkney and Shetland set out the case of his caseworker in Shetland who has a speed of 0.3 megabits per second, in contrast with the much higher speed of his London staff. The Better Broadband scheme is a voucher-based system that allows anyone with a speed of less than 2 megabits per second to access funding for a basic broadband contract and connectivity, for instance through satellite, and I recommend that the right hon. Gentleman’s caseworker not only take that up but then email people in his constituency to let them know that the scheme is available. The grant is technology-neutral and can be spent on satellite, wireless or community fibre projects.

I fully understand the frustration of those who do not yet have a good connection. We have talked about some of the figures. Some 81% of South East Cornwall is covered by commercial contracts, but only 83% has access to superfast broadband, meaning that provision through Superfast Cornwall covers only 2% of the constituents of my hon. Friend the Member for South East Cornwall (Mrs Murray). There is clearly much more to do in Cornwall.

In Eddisbury, 82% of premises have access to superfast broadband, but that means that 805 premises have less than 10 megabits per second, including that of my parents—I hear about it all the time. Thankfully, though, a new procurement is in the pipeline in Cheshire, which I hope will cover crucial parts of the county—with no special pleading.

In the constituency of the hon. Member for North Ayrshire and Arran (Patricia Gibson), 87% of premises currently have superfast access, according to an independent study by thinkbroadband.com, and that will rise to 93% by the end of the year. Thanks to the support of the UK Government, 14,000 premises there have already been covered, with several thousand more to come.

The hon. Member for Strangford (Jim Shannon) mentioned the business voucher scheme. We have consulted, following the autumn statement, on a further full fibre business voucher scheme and will respond to that consultation at around the time of the Budget. I understand the success of the business voucher scheme of the past couple of years. The hon. Gentleman mentioned that he had coverage of 79.1%. I would like to put on the record that, according to my figures, it is 79.4%.