Broadband in Wales

Chi Onwurah Excerpts

Wednesday 6th July 2016 Westminster Hall

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

It is an honour to serve under your chairmanship, Mr McCabe. It is a great pleasure to respond to the debate for the Opposition. I congratulate the hon. Member for Ceredigion (Mr Williams) on securing this debate on an increasingly important topic. Like the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr), I also congratulate him on the tone and content of his opening remarks, which were an excellent introduction to the subject and to the situation of many of his constituents, as well as many UK citizens in other rural areas. His opening comments were complimentary to the Minister; it would be churlish to suggest that that was in any way connected with the fact that his party was in government, if not in power, when many of the important decisions that are driving our current lamentable situation were taken.

I fear that I have already changed the tone of the debate from one of mutual agreement to one of division, so let me go back to something on which we can all agree—that we wish the Welsh football team every success this evening. Indeed, if the team can defy the odds and march through to the finals of the European championships, and then triumph, perhaps it is not too much to hope that the Minister will defy expectations today and give us some satisfactory answers as to why so many people in Wales—and England and Scotland, for that matter—cannot get a decent internet connection, which I assume the Minister can do on the smartphone that he is looking at so intently. It seems that anything can happen in these extraordinary times, but I must say that concrete answers from the Minister would be an extraordinary conclusion.

We face a period of uncertainty—I am talking about Brexit rather than the football now. As we start to think about our plans for negotiating to leave the European Union, which have already been mentioned—although, astonishingly, I understand that the Government have not thought about them until now—it is time for us to get serious about our infrastructure and productivity and make sure that we have an economy that works for everyone. The economic benefits of better digital infrastructure are well known. The hon. Member for Berwickshire, Roxburgh and Selkirk and I share a background in telecommunications, I believe, and we can both be proud to call ourselves technology champions.

I think everyone would agree that the UK’s productivity problem has been one of the biggest challenges for our economy in recent years. We have the second-worst productivity performance in the G7. The Government’s own broadband impact study states that

“it is now widely accepted that the availability and adoption of affordable broadband plays an important role in increasing productivity”.

It is the Government’s policy to increase productivity, and they recognise the role broadband plays in that. I hope that they recognise the importance of productivity to the Welsh rural economy, as well as throughout the United Kingdom.

Why do we find ourselves in a situation now where so many people cannot get a decent broadband connection? As well as the economic benefits, there are significant social benefits. I mean not simply online gaming but online shopping and new applications in mental healthcare that are supported through digital infrastructure to enable better engagement and improve citizens’ wellbeing. It is unacceptable that some people cannot access those services.

Some people cannot access mandatory Government services and, worse, are penalised for not being able to access online services such as a mandatory job search. The internet opens up a world of education, social engagement and potential economic productivity—it is a window on the globe. All people across the United Kingdom should be able to expect that as a right, yet nearly 6 million people in the UK do not have access to decent broadband, and 130,000 businesses are struggling to make do with a connection of less than 10 megabits per second.

Wales is actually doing better than the rest of the UK for rural and business broadband—as well as in football. In Scotland, 50% of mid-sized businesses do not have access to superfast broadband, while in Wales the figure is “only” 38%. In England, 64% of rural premises are without superfast broadband, while in Wales merely—again, I use that word relatively—half of rural residents cannot access superfast connection speeds, which the European Union has said should be a universal minimum in just four years.

No doubt the Minister will tell us again of an unadulterated success, which is how he characterises the current broadband situation. As my hon. Friends the Members for Ynys Môn (Albert Owen) and for Llanelli (Nia Griffith) have mentioned, Wales lags far behind the other nations in mobile coverage. Only 20% of Wales is covered by all mobile providers, compared with 50% in England. I find that entirely unacceptable.

[Mr Mark Williams]

To allay the hon. Lady’s concerns about any generosity I expressed to the Minister earlier, does she agree that the Government’s mobile infrastructure project has been a complete failure, certainly in Wales?

[Chi Onwurah]

I thank the hon. Gentleman for his intervention. Lamentable as I find the situation when it comes to fixed and universal broadband, the mobile situation shames us as a nation. I take the train from Newcastle to London twice a week, and I am lucky if I can maintain a conversation on a quarter of that journey. On the wonderful occasions when I have had the pleasure and honour of visiting Wales, I have noticed that the mobile coverage is generally unacceptable. As has been mentioned, a constituent going to Hawaii to improve their mobile coverage is testimony to a failure.

Since the Minister took office six years ago, we have seen a series of ad hoc funding announcements. The crown jewel of all of them—the mobile infrastructure project certainly was not considered a jewel by anyone—was the £790 million rural superfast broadband programme, which has been handed entirely to one company. Whatever our criticisms of British Telecom, and I agree that it is unfair to hold BT entirely responsible for the current situation, the way in which the contracts for that tender were set out meant that we would end up in the current situation of monopoly provision. I certainly know that the Minister was informed, and indeed warned, of that possibility on more than one occasion.

It is true that the Government and the Minister are now finally waking up to the need to improve digital infrastructure. My hon. Friend the Member for Ynys Môn was very clear about where blame for the current situation lies. He was more modest about taking credit for the change in the Government’s approach and tone. The broadband challenge is now becoming the issue for the Minister that it should have been in the previous Parliament. I am concerned about that, because many Tory MPs find their mailbags bulging with complaints, and he is responding belatedly to that criticism from his own side. While we have potential solutions to the problem today, there is no solution for the incompetence that preceded it. People in Wales and beyond still do not know when they can expect the much vaunted universal service obligation to cover them and what that means for them practically.

I would be grateful if the Minister addressed the many excellent questions raised by my hon. Friends the Members for Ynys Môn and for Llanelli, and by the hon. Members for Berwickshire, Roxburgh and Selkirk and for Ceredigion. The Digital Economy Bill, published yesterday, is a real opportunity to address these issues and get Britain on the right track when it comes to infrastructure and digital rights for digital citizens. I am afraid that it will be a missed opportunity.

I would like the Minister to answer the following questions. Has he given up on hopes for competition—a word that appears only once in the Bill, in brackets—in the communications market? After the bungled attempts to reform the electronic communications code in 2015, why will this time be any different? What is his long-term vision for our digital infrastructure? We have heard about the importance of fibre. He seems to find it difficult to mention fibre, and certainly to set out when and how the UK will have universal fibre provision. How will the USO be funded? What talks is he in to ensure that that funding requirement does not fall disproportionately on rural areas?

Finally, will the Minister explain concisely exactly how the Digital Economy Bill will improve connectivity in Wales? The Bill will, I take it, be what passes for a vision for our digital society. That must include digital inclusion for rural areas in Wales and for my constituents in Newcastle who cannot afford the current superfast broadband provision. I hope he will set out his vision for ensuring that we have the digital infrastructure that we deserve and need in Wales and in the country as a whole.

[The Minister for Culture and the Digital Economy (Mr Edward Vaizey)]

I am grateful for the opportunity to speak under your superb chairmanship, Mr McCabe, and I thank the hon. Member for Ceredigion (Mr Williams) for this important debate about broadband.

Let me echo the words that were said about tonight’s football match, which is an incredibly important game. Unfortunately, I will be at the Art Fund museum of the year dinner with the Duchess of Cambridge, but I know that her father-in-law is particularly keen on a Welsh victory tonight, as is the whole country. Gareth Bale sits firmly in midfield in my fantasy league team and Sam Vokes is a striker, so we are hoping for a good result tonight.

If the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr) thinks a Welsh sporting achievement and Andy Murray managing to make it to the quarter finals will rub English noses in it, let me remind him of the England rugby team and its 3:0 whitewash of Australia. It does not stop there either: perhaps we should talk about the test victory over Sri Lanka—I do not think Scotland plays cricket, but they may a bit. Of course, today Mark Cavendish won his 28th stage in the Tour de France, thus matching the record of the great cyclist, Bernard Hinault. [Interruption.] I see the Clerk leaning over to you, Mr McCabe, saying that I am out of order—that I have gone off the subject of broadband—but thousands of Welsh people tonight will be watching television and perhaps through a broadband connection, thanks to me.

[Chi Onwurah]

I admire the way the Minister has manged to segue from football back to broadband. Does he agree that it is to be hoped that all those in Wales watching the match tonight do not stream it from broadband connections, as their pleasure is likely to be interrupted regularly by the circle of death?

[Mr Vaizey]

No. I encourage them to watch it online. They can watch it online, on their iPads or on ITV Player.

Let me turn to the subject in hand. I have been in this job for six years and it may feel like wading through treacle, but when I hear someone as distinguished as the hon. Member for Ceredigion say those four words, “vast improvement in provision”, it makes those six years of hard labour worth it, because we have made a difference. I will come to some serious points, but I want to say that we have achieved a great deal and I will explain where we are.

I have always made the point that we had targets we wanted to achieve. We never said 100% of people would get superfast broadband under our programme. We said 90% would get it by the end of 2015 and we achieved that with 4 million additional homes and businesses, which will be 5 million by the time the programme effectively ends at the end of 2017. We have already completed 36 of the 44 phase 1 projects and we are well into phase 2, and on track to get to 95% by the end of 2017.

People seem to forget the baseline we started from when the programme was on the way. In Wales, fewer than one in three homes had access to superfast broadband in 2011, yet by the end of phase 2, which finishes this time next year, 96.7% will have been reached. This project alone will have provided access to superfast broadband for almost 750,000 homes in Wales. Half of all homes will have broadband because of this project. The figure is already almost 600,000 homes. The audited figure is 582,300, so we have probably passed 600,000 because we are always three months behind in auditing the figures.

It is worth remembering that in the constituency of the hon. Member for Ceredigion, for example, no superfast broadband was provided commercially—he reminded the House that I had made that point previously. Even though his figures are below the national figures and therefore look poor, it is telling that 55% of homes—20,000—in his constituency that now have access to superfast broadband have it because of this programme. Another 10,000 will be added by the middle of next year, with 85% superfast coverage in 30,000 premises that would not have been covered. Coverage in constituencies of Members across the House ranges from a lowly 79% in that of my hon. Friend the Member for Brecon and Radnorshire (Chris Davies)—luckily he has left the Chamber, so I can mention that figure publicly—up to around 92% in Ynys Môn.