Calum Kerr
Main Page: Calum Kerr (Scottish National Party - Berwickshire, Roxburgh and Selkirk)Digital Economy Bill
Calum Kerr Excerpts(8 years, 2 months ago)
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Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)
I welcome the opportunity to speak about such an important Bill, which contains several measures that SNP Members welcome. We welcome long overdue changes in provisions such as the electronic communications code, moves towards greater consumer protections, and steps that are designed to promote more connectivity. However, I know I am not alone in thinking that the Bill’s title is a bit of a misnomer. At a time when the British economy, with its woeful record on productivity, is crying out for a vision to ride the wave of technological change, we have a Bill that is somewhat cobbled together, and is vague and unambitious. Although it contains several welcome measures, it offers little in the way of direction or strategy. The Conservative manifesto pledged to make the United Kingdom a world leader in digital provision—a place where technology would ceaselessly transform the economy, society and government. I ask all Members to consider whether the Bill really lives up to that vision.
We really should contemplate the remarkable next phase of the information revolution. Phenomenal access speeds through fibre and 5G will allow us to realise the potential that is the internet of things. If we get this right and make the most of these opportunities, technology truly can power our economy. In Scotland, the moves that we are making on that front are strong and unequivocal. The SNP is committed to a manifesto pledge of 100% superfast connectivity. We do not see any reason why connectivity—which is of even greater significance in a country like Scotland, which has a low population density—should be determined on the basis of whether people live in rural or urban areas.
Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)
Does my hon. Friend agree that, despite the Secretary of State’s claims in her opening speech that we were soon to have 95% coverage, that does not apply in many communities? Not only is the last 5% often the most difficult and expensive to provide, but the oft-quoted figure is in fact much higher in many of those communities.
Calum Kerr
It is realistic to assume that more like 25% of my own constituency will not be covered. The concentration of the 5% can be great in rural areas in Scotland, in particular.
A theme to which I shall return is the desire for the Government, with our support, to show more ambition. As the right hon. Member for Wantage (Mr Vaizey)—the former digital Minister—put it, they should embrace McBroadband. Never mind your 10 megabits; let us get superfast everywhere. That is a key ambition on which I hope the present Minister can trump his predecessor. Rural areas already have to deal with poor connectivity. We have poor roads and highways; let us not have equally poor digital superhighways, because digital is becoming ever more important. The Government talk about it as a fifth utility, but with that rhetoric—that status—comes a greater responsibility upon them, providers and regulators to provide equality of access. As we talk increasingly of forms of digital citizenship, it is vital that the large swathes of the country that could be left behind do not become left behind as second-class digital citizens.
We welcome the introduction of a universal service obligation, but, as the Scottish Government pointed out in Ofcom’s digital communications review, it is important that the USO is dynamic and capable of evolving over time. Rather than a one-size-fits-all approach, the USO should be framed in such a way that it offers maximum flexibility and does not offer substandard solutions as we try to hit a minimum standard. Ultimately, we want a USO that helps to incentivise network providers to push fibre further and empower communities, perhaps through a voucher scheme or other mechanisms that support local ambition. We want to ensure a framework that does more to improve rural coverage and protects the interests of rural consumers, rather than cementing a digital divide.
The key to an effective USO will be in its delivery. That is a matter that this Bill refers to Ofcom’s technical analysis, but it is worth noting that a simple headline figure of 10 megabits download is flawed. First, a truly effective USO needs to consider not just basic download speed, but upload, latency, data limits and, of course, cost. Everyone should be entitled to a fair standard of broadband, and that is about a lot more than just download speed.
To return to the other point I mentioned, do we really think 10 megabits will be considered sufficient by 2020? Why do the Government think the bar should be set so low? The SNP challenges the thinking that sees 10 megabits as adequate. I found some of the briefings depressing to read, and they smacked of vested interests who, in their desire to leave markets open for future commercial activity, think rural areas should be sacrificed and given a lesser service, which is totally unacceptable.
Beyond any technical aspects of the USO, Parliament should have an ongoing role to play, especially in the matter of funding. I personally believe there is a strong case for an element of public funding, rather than just relying on the industry or an industry levy, but if the option of an industry levy is to be pursued, we would encourage the Government to cast the net as wide as possible, to cover all who benefit from the digital economy.
We welcome measures to improve the ability of consumers to switch providers with maximum ease, and we want to look closely at measures to incentivise quality of service, to ensure these incentives are universal. The Government have missed an opportunity, which I hope they will reconsider, to introduce measures advocated by my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry)—what a magnificent constituency name that is!
Pete Wishart (Perth and North Perthshire) (SNP)
It’s almost as good as yours.
Calum Kerr
Yes, Berwickshire, Roxburgh and Selkirk is very good, too. But self-praise is no praise.
My hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey gained support from Ofcom and the Government for allowing customers who have signed up to mobile contracts to switch or cancel if they find they have inadequate coverage, and I encourage the Government and Ministers to revisit this and consider whether it might be more explicit.
It is not just in the wired world that change is needed. We welcome the long-overdue measures to reform the electronic communications code.
Calum Kerr
You get no praise at all then—pot/kettle, by the way. My eyes are still running at the thought that the love child these Ministers gave birth to was a Christmas tree; that made my eyes water.
We are glad that the long-overdue measures to reform the electronic communications code are being brought forward, especially when we consider that the code has not really changed since the introduction of many of the digital technologies we now take for granted.
While we support these changes, the system that is put in place must have a balanced approach. Providers must not be held to ransom, but, likewise, landowners should be entitled to receive fair compensation. On top of that, when taking forward such extensions to permitted development, we need to ensure an appropriate balance is struck between facilitating the roll-out of such infrastructure and having appropriate planning controls on the impacts of such development on amenity and the environment.
A particular area of concern is the way in which existing agreements will be affected by these changes, as the shadow Minister raised. This is a key area that we will want to look at in Committee. It is vital that where public assets are used for the siting of equipment, the loss of income to the public sector is considered. The Government need to outline how they will reconcile the code with the Treasury’s Green Book requirement to obtain best value from public sector assets. It is important for these measures to take account of who current landlords are. In many instances, they are local authorities or the fire service, for example, and in Scotland not an inconsiderable number are the Forestry Commission. While we understand the Bill is not retrospective, substantial amounts of money could come out of the public purse when contracts come up for renewal.
Of course, increasing coverage is welcome, but a key question that the new code raises is whether mobile operators should be allowed to renew old contracts on the same basis as the new regime, or whether we should have a different regime for renewal. We should also consider commitments on any savings being reinvested in infrastructure.
My party welcomes the fact that independent operators are excluded from the provisions of the new code. Only about a third of UK mast infrastructure is shared, whereas in some countries, such as the United States of America, it is about 80%. It is important as we go into the Committee stage that we do not allow these independent operators to be pulled into this legislation. I agree with the former Secretary of State, the right hon. Member for Maldon (Mr Whittingdale), that this is already covered under Ofcom, and it strikes me as somewhat perverse that at the time when we are having a big discussion as to whether Openreach should be independent, we do something that might damage independent infrastructure in telecoms provision.
We also welcome some of the adjustments the Digital Economy Bill makes to spectrum policy in these islands. Although it highlights fixing mobile coverage, reform of the code will go only so far. The most powerful lever we have remains licensing, so when it comes to the next round of licences, let us look at far greater coverage and consider setting conditions for licences that meet a higher standard in terms of population and geographical coverage. We also encourage the Government to look at how spectrum policy has been developed in other countries, such as Germany where an “out to in” strategy ensures that rural areas, rather than getting left behind, are done first.
The measure contained in the Bill relating to compensation is overdue, especially as the digital communications review laid bare some fairly stark statistics on how poorly the sector has performed in customer service. Disappointingly, but perhaps not surprisingly, there was some pushback against this idea in some of the briefings. However, the sector has had its chance, and everyone recognises the need to improve. It is clear that we need to do something about automatic compensation. We need to reject the arguments from the sector that automatic compensation would inhibit the management and maintenance of good quality networks.
I worked at the same company as the shadow Minister, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), some years ago—a Canadian company called Nortel. I did not have the technical expertise she has, but even I know that when you build a network, you build it to be secure and resilient and you build it in such a way that it can be upgraded and maintained. Perhaps the operators think that everyone in this House can be hoodwinked by a couple of technical excuses, but let me assure them that we cannot. This is clearly an area in which policy will have to evolve. We need to come up with a scheme that is fair but we also need to look at the behaviour of the operators and look for the improvements that the Bill is intended to drive. It is not meant to be penal; it is meant to drive improvement.
When we talk about customer service, we also need to consider the changed world in which we live. In the days of telephony, the question was simple. It was a binary system that either worked or it did not; it was either on or off. In the age of the internet, things are far more complex. A headline download speed is not a guaranteed download speed. Services are contended, and I would contend that that highlights the need for services to be granular. We should look at the average speed that a customer can expect, as well as the maximum speed. People would then have a clear choice and be able to sign up for a service that does what it says on the tin.
The SNP welcomes the introduction of age verification for online pornography, but we have concerns around how the measure will be enforced. We will need to look carefully at this in Committee. With so many sites based overseas, the challenge of tackling non-compliance will be complex. The Government should consider going further and look at steps such as transaction blocking in response to non-compliance. They also need to do more to put in place incentives for compliance, and we should consider measures that would offer the regulator the option of blocking sites that are non-compliant. We welcome the provisions in the Bill, however.
We share the Opposition’s reservations about the outsourcing of policy on TV licences to the BBC. In Scotland, we have recently classified loneliness as a health issue, and clearly benefits relating to those in old age have a significant role to play in tackling this. We recognise that the Government’s decision to pass the baton on this policy to the BBC is based on a financial settlement, but we want to challenge the thinking in this whole area when the Bill reaches Committee.
We believe that public sector broadcasting always needs to be challenged and updated, but we acknowledge its unique role in society and we are fundamentally supportive of it. We therefore welcome the repeal of section 73 of the Copyright, Designs and Patents Act 1988 and recognise the importance for public service broadcasters of having the ability to realise the value of the content they create. This is a long overdue step and we join the calls from across the House for the Secretary of State not to hesitate in putting these powers in place.
On intellectual property, we are supportive of the changes in the Bill that will give the protection of intellectual property online a status that is equivalent to the regimes in place for offline material.
Pete Wishart
I am glad that my hon. Friend has reached this part of his speech. Like me, he welcomes the move to make an online infringement the same as a physical infringement, but does not the Bill need to do more? We really need to tackle the culture of the major search engines and the value gap between those who create the wonderful content that we have in this country and those in big tech who earn money from it. Does he agree that we need to introduce measures in Committee to tackle that issue?
Calum Kerr
I absolutely agree with my hon. Friend, and I look forward to tabling specific amendments in Committee.
We on these Benches also offer our support, albeit with reservations, for the measures in the Bill relating to digital Government and information sharing. We welcome the recognition that the Government need to move towards being “digital by default”, and we understand the huge benefits for citizens and for Governments that new approaches to digital and information sharing can bring. Our concerns relate to how these measures will be executed and implemented.
Securing the trust of citizens will be vital in harnessing the power of data to improve the workings of the Government, but we do not want to offer the Government a blank cheque on these matters. We have concerns about the lack of detail on how citizens’ data would be put to use and what form of protection would be put in place to cover areas such as human rights, privacy and data ownership. There is a clear logic, on a purely technical matter such as the universal service obligation, in enabling legislation to allow the detail to be defined by an external agency, but this is an area that requires ongoing parliamentary oversight and it is not clear at this stage how such an obvious democratic requirement will be met.
Scotland already has a well-established data linkage framework and a set of guiding principles designed to proportionately balance the risk to confidentiality against the public benefit of using data for research. The Scottish Government will want to be fully involved in the development of the relevant codes of practice that will govern the disclosure, use and processing of information under these powers. In summary, we welcome several measures in the Bill, which covers a wide range of areas, but we are committed to pushing for much greater clarification and, where we can, for much more ambition as the Bill moves into Committee.
Several hon. Members rose—
Sir Alan Haselhurst (Saffron Walden) (Con)
I am grateful for this opportunity to make a contribution to the debate on the Second Reading of the Bill. I cannot help feeling the need to pinch myself when we have a Bill of this nature before us. It seems like only yesterday that we were attending protest meetings in our constituencies at which concerned parents expressed the view that the erection of a mobile telephony mast would endanger their children’s health. Similarly, it seems like only the day before yesterday when we could not have imagined that the provision of broadband would create the amount of weekly correspondence to MPs that I and many colleagues now receive.
I welcome the measures in the Bill to improve the coverage of mobile telephony. Vast tracts of my constituency are untouched by a mobile signal, and that position is becoming increasingly ridiculous. I remember being on a visit to one of the poorest states in India to witness the Department for International Development-supported installation of a basic sanitation system, and I happened to glance at my mobile phone. I noticed that it had a very strong signal—much stronger than the signal in large parts of my constituency.
I do not want to talk about the history of the Bill, or to delve into the role of BT and its relationship with Openreach, but I look forward to the Bill reaching the statute book in a form that will ensure universal broadband coverage that provides a level of service that is, as far as possible, future-proof. Of course I welcome the universal service obligation. I remember thinking, when the former Prime Minister first announced this, that a universal service obligation sounds good until we remember that many properties in this country do not have access to water through a publicly supported main and have to make private arrangements, and that many properties do not have contact with mains sewerage. We must be careful and ensure that universal will mean universal for broadband.
I keep saying to constituents that the more populous areas of the country being favoured in BT’s roll-out is understandable—more income will come in and so on—but that does not take account of changes in the structure of society and in business practice. Reference has already been made to some emerging new needs. It is ludicrous that new businesses in the countryside, often occupying redundant farm buildings and working at the highest end of technology, are somehow relegated to the back of the queue when their contribution to the economy is of enormous potential. The Government and their various agencies are also increasing the amounts of data required to be dispatched and submitted electronically. Those who have read the National Farmers Union submission will know how farmers are supposed to be able to download and upload vast amounts of information. Students are increasingly reliant on submitting coursework through electronic means. There is also a growing habit, not unhelpful in dealing with pressures on public transport, of busy executives working from home for part of their week and expecting the same level of connectivity as in their city or town office. For all those reasons, we must ensure that universal means universal.
Anyone who buys a television set these days is like to buy one that is 4K UHD-enabled and with many gadgets. There will be more unrest among people who want a decent television and to take advantage of better clarity and so on if they find that the TV does not do what it says on the tin because they do not have a basic broadband service upon which they can rely.
Calum Kerr
The right hon. Gentleman raises some interesting points. Unlike sewerage and water, broadband can be delivered wirelessly, so does he agree that there is really no excuse for the universal service not being universal?
Sir Alan Haselhurst
Of course I agree with that; I am trying to argue that universal should mean universal. Ten megabits, which is frankly insufficient, is an average figure, and we all know what has been done with average figures on car fuel consumption. The 10 megabits figure must be taken with a slight pinch of salt, and we should aim for a higher standard. If we do not recognise that, we are committing people who live in rural areas to forever playing catch-up.
My other worry relates to the unevenness of provision and not simply between town and country. People are bewildered, if not downright angry, that while they are expected to wait for a 10-megabit download speed—which is perhaps all right if they, like many, get less than 2 megabits at the moment—they hear about other parts of the country, some of them rural, receiving vastly better speeds of up to 100 megabits. They say, “Why is this happening? We hear that there is a roll-out, but when will it ever reach us?” One difficulty is that the superfast roll-out depends heavily on BT’s established network, which creates anomalies. One village in my constituency has three boxes, two of which have been converted to enable a decent broadband service. The third mysteriously has not, yet it serves just as many people as the others. That creates anger in a village that is acknowledged as being rural because people ask, “Why aren’t we being treated the same?” Technical answers about historical reasons are provided when that question is asked.
There has been growth in the number of niche providers that are prepared to offer deals to people living in scattered communities. It is important that that is encouraged, but I also hear that embedded in the roll-out programme is a measure stating that if a commercial company has said that it will provide a service in a given area, no one else can touch it and the company is almost inviolate for a period of time. That cannot be right if we are talking about the urgency of getting broadband rolled out universally.
I want an end to the confusion and I want a greater degree of clarity to be introduced for people so that they understand what they can expect and how they can go about getting it. We need more local initiatives to identify alternative ways of getting superfast broadband. I have seen examples in my constituency of concerned citizens getting together and forming a working group to consider how to get broadband delivered. We should be helping them with that, not necessarily with subventions, but by letting them know how to go about it—perhaps through local authorities. We should not favour one company over another, but simply say, “These are the ways in which you may be able to get broadband faster than through the main roll-out.” That would help to diminish the growing frustration and uncertainty and would help us to enhance coverage. If the increasing number of pathways to broadband were better advertised and better explained, the Government would help more people than just through the broad roll-out programme. Everyone should feel part of our digital economy if we are putting legislation through under that name. To put it another way: we should all be in it together.
Antoinette Sandbach (Eddisbury) (Con)
I very much welcome this opportunity to take part in the debate. Like many of my parliamentary colleagues, I agree with the majority of the principles outlined in the Bill. However, I must caution that it is the way in which they are applied that will ultimately make the difference. In my rural Cheshire constituency, many people feel left behind. There has been huge progress with Connecting Cheshire, but 18,000 households in my constituency remain without access to superfast broadband. At present, they feel that providers can bat around excuses and let themselves off the hook without explaining why my constituents are living in digital blackspots. Those households also seem to be the ones without a mobile signal. That digital exclusion represents a double whammy for them.
We have seen banks being hauled up for mis-selling PPI insurance. I would quite like to see mobile companies being hauled up for mis-selling contracts to customers such as those in my constituency who, more often than not, cannot get a signal. They are being sold 3G and 4G contracts even when the providers know that no such service exists in their area. The chief executives of many of the phone companies have openly written to me to say that they provide only a 2G service there. I urge the Secretary of State to close that loophole and to ensure that the Bill makes provision for those people either to get out of their contracts quickly or to access the 3G or 4G service that they have paid for.
In relation to broadband blackspots, Connecting Cheshire offers a voucher that allows access to satellite broadband. I would like the Bill to offer the opportunity for technology-neutral vouchers, so that customers can decide whether to use them to obtain a wireless connections through radio broadband. That is a very effective provider of broadband that can, in many areas, provide a solution to the last 5% of customers. I have heard many other Members call for those who are at present excluded to be the first to be brought in under any new contracts, and I would like to add my voice to those calls.
Like many others who have spoken today, I have farmers in my constituency who cannot upload the information that they need on, for example, cattle passports or on claiming their single farm payments. More and more VAT returns can now be completed online, and digital exclusion really affects those peoples’ businesses, given the amount of time they have to spend working with a really rubbish connection. This is hugely costly to us as a nation.
I also want more sense from BT. Old connections to exchanges can often run over many miles through copper wire. However, modern developments mean that there are often much closer exchanges that may already be fibre-enabled, but there is no power to require BT to move exchanges. I want that loophole closed so that constituents who are closer to a modern exchange can get connected.
Calum Kerr
I absolutely agree with the hon. Lady on vouchers. My worry is that a USO through BT will have a minimum standard or that a satellite USO will just hit the minimum. With a voucher system, communities would be empowered to come together and could use it as a foundation to aim higher than 10 megabits and get fibre to premises. We must not lock the scheme down and restrict the creativity of people in our communities.
Antoinette Sandbach
I hope that Connecting Cheshire will allow communities to band together and use vouchers in areas where superfast broadband has not yet been delivered. I urge the Secretary of State to allow that flexibility and to require BT to provide the money that would otherwise have been available for connection. I welcome the USO—it is a great step forward—but it must be set at 15 megabits and must also include minimum upload speeds.
Finally, on protecting children, we have heard much about age verification, but an NSPCC report indicated that eight children a day are being groomed online—not through access to child pornography, but through social media. Ofcom needs much better powers to deal with online child grooming and social media sites, such as Instagram, Facebook and Twitter. When someone is below the age of consent—under 16—there should be parental access or some form of parental portal, but that is completely absent from the Bill. I appreciate that that is difficult when ISPs are located abroad, but with the problem of eight children a day being groomed online not being substantively addressed, other than through the valuable work of organisations such as Childline, we need to be able to close the door that allows abusers into children’s bedrooms.