Chi Onwurah
Main Page: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)Digital Economy Bill
Chi Onwurah Excerpts(8 years, 3 months ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I think we can all agree with the Secretary of State that we are living in a digital economy. Indeed, one of the relatively few subjects that can unite the House now is the importance of that economy. It gives me great pleasure to respond for the Opposition on this subject, particularly as a chartered electrical engineer—that is a declaration both of interest and of pride.
The smallest of British businesses can now have global reach through e-commerce. Artisan craft makers can trade on Etsy with very low transaction costs. Even the most niche products can be sold around the world to their fan bases. You may not be aware, Mr Speaker, that there is a T-shirt dedicated to you, with the slogan “Fear the Speaker”, which is available on the internet for your fan base. All markets can be catered for—
Chi Onwurah
Yes, all sizes, as well.
We know that the International Trade Secretary believes that our businesses are lazy, but I know many that are cutting a swathe through the internet, as opposed to the golf course. Greater connectivity can help businesses to work on the move or to use new workspaces rather than traditional ones. We are also seeing new types of work, new products and markets, and digital tools that help current businesses to be more effective. Whether it is farmers relying on GPS to guide their tractors or start-ups using blockchain to address financial inclusion, digital infrastructure, tools, skills and platforms are the building blocks of the British economy.
The good news is that we are a great digital economy—indeed, we are Europe’s leading digital economy. We are only at the start of the digital revolution, with the internet of things, big data and artificial intelligence set to transform the way we live and work. Now is definitely the time to bring forward a Bill to set out the vision and policies to place the UK at the top of the global digital economy. Sadly, this is not that Bill. TechUK, the digital sector trade body, described it as fixing some basics. That was rather generous. The Bill is an excellent example of that old “Yes Minister” trick of putting the difficult part in the title so it can be ignored in the document itself.
There are some good measures in the Bill, so let me begin with those. First, the universal service obligation is a long overdue half-step in the right direction. The last Labour Government left fully costed plans for universal broadband coverage by 2012. [Interruption.] I am afraid that is the truth. Members may not like it, but it is in the documents—I helped write them. The Conservatives’ bungling procurement process and total lack of ambition left many behind, particularly in rural economies. The National Farmers Union and the Countryside Alliance have been vocal in highlighting the Government’s shortcomings so I will add only that it is an absolute disgrace that in 2016 there are still people in this country—one of the richest in the world—who cannot even download an email.
We also welcome some movement on digital consumer rights; making it easier for consumers to switch between mobile, landline, broadband and TV providers will empower them. We are glad that the Bill gives Ofcom the teeth to ensure that customers are automatically compensated for poor service, but we also want it to be given the resources to make sure it can deliver on that—here I make another declaration of interest, as a previous employee of Ofcom.
We also welcome increased protection for children against pornography, something many on the Opposition Benches have campaigned for tirelessly. We will seek in Committee to improve the practicality and effectiveness of the measures proposed. Parents need to be given more information about protecting their children. Critically, there needs to be compulsory sex and relationships education in our schools, so that we can teach young people about healthy relationships. I heard the Chair of the Women and Equalities Committee calling for that this morning.
Tom Brake
I agree that denying children access to online pornography is essential, as is ensuring the privacy of adult users of legal adult sites, and ensuring that the Government’s solution works. Does the shadow Minister have a clear idea of how the Bill deals with foreign sites and free sites?
Chi Onwurah
The right hon. Gentleman raises two very important points. There is no clear idea of how the Bill deals with such sites, in particular sites for which no commercial payment is made. There are also privacy issues throughout the Bill. That is one area on which we will seek to work in Committee.
A 21st-century economy needs the infrastructure to deliver a digital economy, so reform of the electronic communications code is long overdue. Frankly, I am very glad the Government have finally begun to build on Labour’s Communications Act 2003. We are concerned, however, that proposals to lower base station rentals may reduce even further the revenues to funding-starved local authorities and we want to hear how the Government will protect them. Newcastle City Council, for example, stands to lose £300,000 a year, which could go to social care, transport and the skills training my constituents rely on.
We also welcome proposals to bring aspects of our copyright law into the 21st century, rewarding artists and our creative industries for the huge contribution they make to our economy. Again, we shall seek to test in Committee how effective the proposals will be in practice.
Andrew Gwynne
My hon. Friend touches on an important point. She will know that one proposed change relates to the cable and online transmission of programmes put together by public service broadcasters, and the income they will potentially lose. Will she test the Government in Committee on the timescales for introducing those measures, because I know that the BBC, ITV and other public service broadcasters want the measures in place sooner rather than later?
Chi Onwurah
Absolutely. That is one of the areas on which we will seek much greater clarification.
While celebrating the contribution of the creative industries, we note the Government have not taken the opportunity to update authors’ rights for e-book lending. This part of library lending is growing despite, or perhaps because of, the drastic cuts to library services under this Government, so would now not be an opportunity to update those rights?
There are a number of areas where we have significant concerns. The BBC is one of the cornerstones of our £84 billion creative industries. Its successes are something that we on the Labour Benches celebrate. Protecting the BBC is crucial. The Bill makes policy for funding TV licences for the over-75s the responsibility of the BBC. The National Union of Journalists estimates it will cost the BBC £1.3 billion over five years, and then £750 million each year. That represents a 20% cut in licence fee income, which could pay seven times over for our 30 local BBC radio stations or fund Radio 4 eight times over. It could pay for 30 “Great British Bake Offs”. Ministers would do well to consider that before depriving the British public of their favourite shows. We accept that funding and policy must go together.
The Minister for Digital and Culture (Matt Hancock)
On the crucial issue of “The Great British Bake Off”, of which I am an enormous fan, I hope the hon. Lady will correct what she just said and acknowledge that, after today’s announcement, the programme will remain on free-to-air terrestrial TV, on Channel 4.
Chi Onwurah
I thank, or at least I think I thank, the Minister for that intervention, but it is clearly not going to be on the BBC and that is clearly a question of funding. The Government are cutting funding to the BBC significantly. If that is not going to be the case, I look forward to an announcement from the Government that they are withdrawing those measures. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), the shadow Secretary of State for Work and Pensions, has described this as
“a slippery slope towards further outsourcing of a social security system under siege.”
The Bill is not only notable for its inability to respond to the challenges it sets itself; it should be infamous for not even considering the challenges the digital economy presents. It has little to do with the digital economy itself and much to do with the Government’s culture of cowardice when it comes to addressing the key challenge of the digital economy: data. The only measures on data seem designed to extend the current public sector data sharing chaos to a complete free-for-all. Our data are at risk with this Bill. We do not own the data and we are not safe. Anyone can take them and the Government decide what others should see of them.
The Government want to make sharing public data easier if “benefit” can be shown, but that benefit will be decided without proper public scrutiny—indeed, without any debate. Where has the debate been?
Antoinette Sandbach (Eddisbury) (Con)
A number of fuel poverty initiatives have requested data sharing so that help and assistance can be targeted. Does the hon. Lady not agree with that kind of initiative?
Chi Onwurah
Data sharing, as with much of the new and fantastic technologies of the digital economy, can bring huge benefits to making public and private services more effective. However, they need to be used in the context of a framework where we have a sense of data ethics, data principles and the rights of citizens whether they are in fuel poverty or not. We are perfectly capable of achieving that, but we need a Government with the vision to instigate a debate and to set out the right transparent framework. Unfortunately, the Bill just does not do that. As we saw with the failed care.data attempt at NHS data sharing, when the Government fail to set out a proper and transparent framework the cost is borne by a lack of public trust in those services.
Matt Hancock
Before the hon. Lady proceeds, she might want to acknowledge the two-year open policy-making process that has underpinned the data measures. She is very welcome to participate in that process, but has so far refused to engage.
Chi Onwurah
I hope the Minister will not continue to use my speech to make inaccurate points. I am very well aware of the data sharing debate. I am also very well aware that it was rounded off without proper agreement on the conclusions. I look forward to the Minister setting out exactly where the agreement that led to the current proposals was debated and agreed with all the stakeholders. He knows very well that he is unable to do so.
The failure to set out a data framework matters now, but it will matter even more in future because the new generation of technology, such as the internet of things, is going to increase exponentially the generation and use of data. To take smart meters as just one example, when security is designed into the smart energy code for energy metering there is no regulatory framework for the data about our homes: when we start making the tea, what time our children go to sleep and when we lock the back door. The previous Secretary of State for Energy told me that the data would belong to the energy companies. She then retracted that statement, but clearly had no idea who the data would really belong to. I doubt she can tell me more now that she is Home Secretary.
Martin Docherty-Hughes
On that very point about data sharing, does the shadow spokesperson not agree that technology such as blockchain will allow individuals and households to maintain specific information that energy companies might require?
Chi Onwurah
It is certainly the case that distributed ledger technology can have great applications in promoting openness, and consumer and citizen trust. Again, however, it has to be set out in the right framework with the right principles. We need a progressive ownership framework for data, one that is debated and discussed by everyone, including those not online. The Government must deliver an effective data regulation framework for the digital era. Without that, the digital economy will be hamstrung by peoples’ fears and companies’ confusion.
Unfortunately, that is not the only gaping hole in the Government’s Bill. The Government cannot tell us who will have access to our digital identities. In order to download an app from Google Play, people must have a Google account, which can then be used to identify and control their device. Who owns that identity? The Bill has nothing to say on cyber-security, despite it being one of the critical challenges of the digital economy. The Bill introduces instead bulk sharing of civil registration data, described by one commentator as suspiciously like an ID card through the back door.
The Bill has nothing to say either on work in the digital economy. A new economy brings new types of jobs and a new set of labour relationships. The Uber driver, the Deliveroo rider, the TaskRabbit worker—none of these workers are employed by the companies they work for; they are all managed by algorithms. The Bill does nothing to protect workers from extra-casualised work, compressed wages, few rights and almost no recourse to justice in the new intermediary economy. These firms are the future, but we must protect the workers of the future, too.
It is not only workers who are impacted by algorithms. Uber knows a person is more willing to accept higher or “surge” prices when their phone is about to run out of battery. They say they do not use this information to charge higher prices, but we have no way of verifying that. I am told that one well-known web-dating site has its algorithm optimised for short-term relationships, which maximises its revenue. Do the people paying their fees know that?
These criticisms are not an attack on the digital economy. I am a tech evangelist. I want the UK to see the advantages of a digital Britain, but that means the whole of the UK. Technology brings astounding new opportunities, but millions of people and businesses are left behind because of their lack of digital literacy. In 2014, Santander found that 34% of UK businesses looking to export do not have their own website, and last year ComRes found a quarter of the capital’s firms have little or no online presence.
In addition, the Government are doing little to tackle harassment and threats online. Our lives are increasingly lived on the internet. There would be an outcry if women did not feel safe walking down the street, yet many do not feel safe going online. Now is the time for a Bill to ready the country for the new digital world, but the Government are guilty of another half-hearted attempt to respond to the 21st century.
We shall not oppose the Bill on Second Reading, but the digital economy deserves better. Instead of leaving a positive legacy, the Conservatives will leave us with another missed opportunity—one whose legacy will be with us for decades to come.
Mr Edward Vaizey (Wantage) (Con)
I am very grateful, Mr Deputy Speaker, that you only showed me a yellow card, not a red card. I will remember that.
What a pleasure it is to speak in what, I gather, is a co-paternity Bill, conceived on many evenings between me and my right hon. Friend the Member for Maldon (Mr Whittingdale). But I should point out that this is also a vengeful child because five of the nine Ministers who were present in the delivery room are now on the Back Benches or have left Parliament. I hope the Bill is kinder to its adoptive parents.
Let me speak briefly about the most important issue—the introduction of the universal service obligation. What a pleasure it is to hear Members from all parts of the House praise the Minister’s very successful rural broadband programme roll-out, which is bringing superfast broadband to 19 out of 20 homes throughout the UK. They are right to praise it, because it is the most successful Government-sponsored broadband programme in the world, and the Minister should take credit for that achievement.
I received an unsolicited email—it is a rare thing—from the director of the broadband programme in Oxfordshire. He pointed out that Oxfordshire is at 93% with 15 months of the programme still to go. Five million pounds has already come back to the county council from the Government funding and there is £2.8 million further to come—around £8 million of the public sector investment of £40 million, and he thinks that perhaps we will get it all back because of gainshare and take-up. He says:
“I cannot think of any large scale public sector contract which has delivered on time and under cost. Very good contract to work with in protecting the public purse and incentivising successful outcomes.”
I do not have a mains sewer in my house. I recall the comments of my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst). We must remember that the broadband programme is an infrastructure programme. You do not just flick a switch and deliver broadband. You have to dig up roads; you have to do engineering work. Openreach, especially the programme director, Bill Murphy, deserves a huge amount of praise for what has been achieved.
I confess that I am utterly confused by those people who want to break up BT and Openreach. Why would one simply adopt the campaign of BT’s competitors? Why would one wish to break up a highly successful British company, post-Brexit when we need all the champions we can get? Why would one break up a company that has delivered such a successful programme? In the words of the chief executive of Virgin Media, an able competitor of BT, “If you want better broadband, pick up a spade.” That is my message to TalkTalk, Vodafone and Sky, who all seek for their own reasons to break up a great British company.
I have two things to say to the Minister. I firmly believe that Openreach can deliver the USO, but it will need his help in easing regulation, particularly for long line VDSL. I also hope that Broadband Delivery UK will continue its excellent work and become a taskforce. A lot of the 5% that still has to be reached is in inner-city areas, and that is usually because of bureaucratic obstacles stopping the roll-out of broadband which have nothing to do with technical challenges. A good and effective BDUK, helping roll-out in cities, would be hugely helpful.
I echo the calls about the frustration with new build. I remember dealing with Linden Homes in my constituency. For the princely sum of £6,000 it could have delivered broadband to all its customers in a multimillion pound development. It point-blank refused to do so. The attitude of too many developers is shocking. The Government refused to change the planning laws when I was a Minister. Perhaps we should look at that again.
The reforms to the electronic communications code are long overdue; we took far too long to bring them forward. They apply just as much to mobile. I recall mobile operators telling me that when they wished to upgrade a 3G mast to a 4G mast at a site in an airport, the rent went up from £50,000 to £250,000. We must reduce the cost of rolling out broadband infrastructure, whether mobile or fixed, and we cannot have our cake and eat it. I heard the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) talking about the loss to the public sector of the £300,000 that Newcastle City Council might lose, but the gain for Newcastle City Council in easing planning restrictions would be better coverage in Newcastle for her constituents and, importantly, for her local businesses, who create jobs and wealth in Newcastle. We cannot allow the landowners to ride roughshod over this Bill, perhaps in the other place. We must reduce the cost of infrastructure roll-out. We need to continue to look at planning reform, particularly, as my right hon. Friend the Member for Maldon said, with the roll-out of 5G.
Chi Onwurah
I thank the right hon. Gentleman, an excellent former Minister, for giving way and it is good to hear a Conservative Member of Parliament taking on the landed vested interests, as it were, but will he say how this Bill will ensure that the benefits of reduced rentals accrue to the users of mobile phones, not simply the mobile operators?
Mr Vaizey
Benefits will accrue to mobile phone users through improved coverage. The hon. Member for Rhondda (Chris Bryant) mocked the mobile infrastructure roll-out plan. He got his facts wrong, but that brought home the huge cost and complexity of building those networks. Anything we can do to reduce the cost of roll-out will help the consumer in terms of coverage and, hopefully, cost.
I fully support the measures on age verification and the upgrading of the offence of copyright infringement. It is interesting that hon. Members on both sides of the House have called for a general debate on internet regulation, which is what that is. It will come more and more to the fore. I echo the comments of my right hon. Friend the Member for Basingstoke (Mrs Miller) and others. It is almost impossible to deal with social media companies. They are like giant children. Suddenly they have 300 million users or 1.2 billion users, and they have to make up some of the regulation as they go along. There was the recent controversy when Facebook banned the iconic photograph of the child in Vietnam. The Government need to work, and work quickly, with those organisations, but even bringing them to the table causes some difficulty.
I fully support the measures on data sharing. That is a huge prize, but we must recognise the concern of consumers about having their private data used. This is about using anonymous data and breaking down the barriers between Departments, which can only benefit citizens.
Let me briefly echo one or two concerns. I had a huge amount of sympathy with what the hon. Member for Rhondda said about free TV licences being imposed on the BBC. It had nothing to do with Rupert Murdoch, by the way, and everything to do with saving money on the welfare bill. It is wrong that we are leaving the decision on free television licences to the BBC. It should be a decision for the Government. There are plenty of ways of updating and refining the way in which the free TV licence currently works, without getting rid of it. The Government should take back not the cost of the free TV licence, but responsibility for the policy.
As Ofcom takes on BBC regulation, I have some concerns that if it takes on the regulation of BBC websites, we will see press regulation by the back door. The press has been assiduous in not allowing its websites to become quasi-broadcasting sites, which would therefore be regulated by Ofcom. With Ofcom regulating the BBC, we must be cautious that we do not inadvertently bring in statutory regulation of the press, which I would oppose.
Matt Hancock
My hon. Friend raises an important point. I see 10 megabits as the absolute minimum, but the definition of what has been advertised in the past for high-speed broadband is a really important issue. This is not an area of statutory regulation, because we do not have statutory regulation for advertising. The Advertising Standards Authority makes the rules. It is consulting on changing the so-called “up to” definitions in advertising to make sure that there is a tighter definition so that people get what is advertised. I think it is fair to say that, should that change go through—it is a non-statutory area—it would be widely supported across the House.
Fibre to new homes was raised by many Members, so let me give this answer. In January, it will become law that superfast broadband needs to be supplied to new homes. There is a commitment to provide fibre to sites with more than 100 new premises. This is a big step forward. Lots of people asked questions about it; secondary regulations went through; the reason it is not in the Bill is that we think we have made the progress needed to ensure that we deliver in this space.
Likewise, many people asked about agreements on landowners’ rights under the electronic communications code, which I agree is an incredibly important step forward. I pay particular tribute to my right hon. Friends the Members for Maldon and for Wantage for driving this through. The new code will be a baseline that removes a lot of the room for dispute. It will apply only to new contracts, but many if not most contracts and agreements for siting masts will remain on commercial terms. It will not be required to use the new code; the new code will be the baseline from which the negotiations can take place.
Let me touch on the Opposition Front-Bench contributions. I felt that the two Labour contributions were well informed and the agreement on the vision was very positive. I would like to react to a few points. Sadly, I thought there was a rather shrill position on data sharing, and I was slightly disappointed with it. Given that we have had two years of open policy making and a full public consultation, it was a bit of surprise to hear that the Labour Front-Bench team was not involved.
The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) was wrong about the Communications Act 2003 when she said that measures build on Labour’s Act and that it was a pity that no progress has been made since 2003. Actually, this Bill builds on the Telecommunications Act 1984. The hon. Lady was also a bit muddled over the BBC. When she argued for more BBC spending power, I was not sure whether she wanted the licence fee to be put up. I think that making costs for phone masts lower is an important part of rolling out the infrastructure to make sure that we get as much coverage for 5G and 4G as possible. We can take up all these points in Committee.
Chi Onwurah
I shall try not to match the number of interruptions that the Minister made during my opening speech. Given that he referenced me directly, however, let me say that the Communications Act 2003 revised the electronic communications code. I know because I used to work with it beside me at Ofcom. I shall try not to be shrill in pointing out to him that if he is seriously asserting that he has fully consulted the public on data sharing, I shall hold him to that in the responses that he will see coming to the policies that he is putting forward to extend data sharing in ways that the public do not yet understand and will not like when they do fully understand the way in which their personal data will be shared.
Matt Hancock
The data-sharing elements of the Bill are designed to improve public services, to make sure that we can tackle fraud and to have better statistics in this country. I think the public will broadly support the aim, for instance, to better target support for those who have difficulty paying for their energy costs. I look forward to taking this debate on further.
Finally, let me touch a little more on the support for victims of online abuse and the question of the link to it.