Telecommunications Infrastructure (Leasehold Property) Bill

Debate between Bob Seely and Nickie Aiken

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 10th March 2020 Commons Chamber

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

I think we all share some concerns that the Government seemed to be more amenable to moving their position last week than they are this week. At the end of the debate last week, the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Boston and Skegness (Matt Warman), who kindly responded to us, said that

“we will work to move towards no involvement of high-risk vendors”—[Official Report, 4 March 2020; Vol. 672, c. 299WH.]

in our system. I am unsure whether the Secretary of State has said the same thing today, and we would all be grateful if he clarified whether that statement made by the Minister is still a live statement or whether he is effectively rowing back from what the Minister said.

I speak in favour of the amendment tabled by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) because I believe that high-risk vendors should not be in our critical national infrastructure. This is for reasons of national security, which have been eloquently put, as well as for a whole host of other reasons, including human rights, data privacy, the rule of law and economic competition—a critical one just mentioned by my right hon. Friend the Member for Wokingham (John Redwood).

One of the most concerning elements of this entire sorry saga has been the litany of questionable claims. One of the problems of being a new Member—I speak in part to the good people behind me—is that we want to trust Ministers and although I hold these Ministers in high regard, I believe they have unfortunately been handed a poisoned chalice. There has been a great deal of misinformation in the past—none of which they are responsible for—but it is worth putting this on record with as many sources as possible, so that we can be absolutely clear what the argument is about.

My right hon. Friend the Member for Chingford and Woodford Green talked about Huawei being a private firm, because that is one of the claims that it has made. Sir Andrew Cahn described Huawei as being

“the John Lewis of China”,

and, frankly, I treat that description with the derision it deserves. The academic Chris Balding has made a study of the ownership structure of Huawei, and he has stated:

“Technically, the firm known as Huawei is Huawei Technologies. Huawei Technologies is 99% owned by Huawei Investment Holdings.”

He went on to say that Huawei Investment Holdings was a vehicle of the Chinese trade unions. Chinese trade unions are a public or mass organisation. Public organisations do not have shareholders. An example of a public organisation in China is the Communist Youth League. So, despite the laughable claims in this country and elsewhere that Huawei is a private company—and it is trying to sue people in France who are claiming the same thing, let it be known—Huawei has the same relationship to the Chinese state as the Communist Youth League.

Can Huawei be safely limited to the periphery of 5G networks? The core versus periphery argument has been well laid out by Opposition Members. The Australian Signals Directorate says that

“the distinction between core and edge collapses in 5G networks. That means that a potential threat anywhere in the network will be a threat to the whole network.”

I have been talking to Dr Ian Levy and other good, knowledgeable people from the NCSC. They dispute some of this, and they try to provide technical analysis, while that is not correct. I note what the US Secretary of State, Mike Pompeo says, on the advice of the National Security Agency. He says:

“Because 5G networks are largely software-defined, updates pushed to the network by the manufacturer can radically change how they operate.”

So if a network is run by an untrusted vendor, that vendor can change what the network can do quite easily using software updates.

[Nickie Aiken (Cities of London and Westminster) (Con)]

I absolutely understand my hon. Friend’s concerns. My concern, though, is that we have made promises to this nation in the last general election about the need to improve our gigabit broadband, so how are we going to do that?

[Bob Seely]

The simple answer is that 5G and broadband are entirely different subjects, but I thank my hon. Friend for her question.

We have asked questions about state or industrial espionage issues with Huawei. We have been offered a no-spy agreement by Huawei and China. They promised not to spy on us. The idea that we would ever ask Ericsson for a no-spy agreement is nonsense. What would Ericsson ever want to know? How much IKEA furniture we were buying? So the idea of having to ask for a no-spy agreement is in itself rather dubious.

China has a dreadful reputation for IP theft and cyber-attacks. Just last month, members of the Chinese Liberation Army were indicted in the United States for the Equifax consumer credit hack, in which the personal details of 12.3 million Britons were stolen in addition to those of tens of millions of Americans. In 2015, cyber-attackers from China stole the sensitive personal data of 21.5 million US federal employees. Perhaps they are doing that because they want to buy everyone a birthday present, but somehow I doubt it.

There have been specific scandals in relation to Huawei. The African Union reported that every night between 2012 and 2017, computer systems installed by Huawei sent information from the African Union headquarters to China. As Secretary of State Pompeo says:

“As a matter of Chinese law, the Chinese government can…demand access to data flowing through Huawei…systems.”

Nobody has ever denied that that includes Huawei systems in western states and the United Kingdom. Is there a security risk? Is there an industrial espionage risk? The answer, without doubt, is yes.

The Government repeatedly reassure us that the spooks say it is okay. I respectfully take issue with that, for the following reasons. The proof of the pudding is in the detail, and what politicians say about what they have been told is sometimes not the case.