Telecommunications Infrastructure (Leasehold Property) Bill

Chi Onwurah Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion
Wednesday 22nd January 2020 Commons Chamber

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

It is a great pleasure to speak on the Bill as the shadow Minister for Digital. I start by declaring an interest: before entering the House, I worked as a telecommunications engineer for 23 years, rolling out telecoms infrastructure in countries as diverse as Germany and Nigeria, Britain and Singapore. I have a lifelong interest in and passion for digital and technology. I love a good network.

I am afraid that the 10 years I have been in Parliament has coincided with a rapid decline in the quality of our telecommunications infrastructure—not because of my move, but because successive Conservative Governments chose to leave everything to the market. As a consequence, at a time of digital revolution, of which the Minister spoke, when so much could have been achieved, we have instead had 10 wasted years. The last Labour Government oversaw a communications revolution, with first generation broadband reaching 50% of all households within 10 years. Labour understood the importance of supporting both investment and infrastructure competition. Under the Conservatives in the past decade, fibre has reached only 10% of homes and without meaningful support for competition.

Our telecoms infrastructure is letting us down, economically and socially, and it is our towns and villages that are suffering most, with farmers and rural businesses, the poor and the isolated in a digital no man’s land. We have lost a decade, and we need to make up and build out the full-fibre infrastructure that the country needs.

The Conservatives talk about unlocking the whole of Britain’s potential, and we are at the top of the class in business, research and technology, development, science and education, but how can we continue to lead on bottom-of-the-table infrastructure? The OECD ranks us 35th out of 37 countries for broadband connectivity, although ours is the fifth largest economy, and 85% of small and medium-sized enterprises said that their productivity was adversely affected by unreliable connections in 2019.

[Seema Malhotra]

My hon. Friend is making an important contribution to the debate. Does she agree that it is important to assess what this will achieve in practice, and to establish whether we will then be getting anywhere near the levels of full-fibre coverage in leading nations such as South Korea or Japan? Should we not measure the outcomes to ensure that the poorest and most distant communities can have the broadband that they need and deserve, and—as I said earlier—should we not also ensure that affordability remains at the core of the Government’s strategy?

[Chi Onwurah]

I pay tribute to my hon. Friend’s experience and knowledge of the digital sector, which makes her very aware of the importance of ending the current digital divide. I shall say more about that in a moment.

[Jonathan Edwards]

I was glad to hear of the hon. Lady’s expertise in the building of infrastructure. The situation in rural Wales is particularly dire. I could name a host of villages in Carmarthenshire, including Abergorlech, Pont-ar-goth, Brechfa and Llansawel, where there are cables coiled along the posts which have not been connected. Will the hon. Lady please have a discussion with her colleagues in Cardiff so that some progress can be made in improving connectivity in the villages in my constituency?

[Chi Onwurah]

The hon. Gentleman paints a disturbing picture of rural communities that have yet to have the connectivity that they require, but it is also very true of the country as a whole. Telecommunications are not a devolved matter but the responsibility of the UK Government, and we need to look to them to ensure that we have the environment and the investment that are necessary to deliver fibre for everyone.

Sadly, our wasted 10 years in telecoms are not limited to fixed infrastructure. As we have heard, mobile and the softer infrastructure of regulation have also been left to languish, and that will have an impact on the effectiveness of the Bill. Conservative Governments have entrenched the digital divide in the UK: 11 million adults lack one or more basic digital skills, and 10% of households do not have internet access. At this rate, there will still be 7 million people without these skills in 2028, which is tantamount to leaving one in 10 of our population permanently disenfranchised. It is a real issue of social justice: for instance, the West End food bank in Newcastle receives many visits from parents who have been sanctioned because they cannot sign on online.

[Seema Malhotra]

My hon. Friend is continuing to make an excellent speech. Does she agree that it is important to address the issue of notspots as well as the issue of speed of broadband access, and not just in rural areas? Thousands of households even in big cities like London, and more than 1,000 in my constituency, have little or no access to broadband.

[Chi Onwurah]

My hon. Friend has made another important point. Notspots do happen, even in city centres. There are householders who can see Canary Wharf from their windows, but cannot connect with its broadband network. We need to take responsibility for ensuring that we have a network infrastructure of fibre that reaches every home.

This wasted decade in telecoms has made many of us digiphobes. Two decades into the online age, we still do not have any date for the online harms Bill, even though the harms it addresses—children accessing pornography and online grooming—were well identified 10 years ago. Newer harms from algorithms, artificial intelligence, the internet of things—which the Minister did mention—and data dominance are ignored, repeating the mistakes of the past. We need a robust legal framework that deals with privacy, data, age verification and identity, complemented by measures that put in place protections for vulnerable people online, not ones that kick in after they have already been exposed, compromised, abused or scammed.

This wasted decade has allowed algorithms and disinformation to take hold of the news online. It is said that a lie gets around the world before truth has had a chance to get its shoes on. Unfortunately, this Government have taken 10 years just to tie their laces. They have failed to understand the opportunities and challenges of the digital revolution in the way in which the Labour party did. A decade of inaction has seen regulatory and infrastructural failures at the expense of the British people and British businesses.

[Edward Timpson]

The hon. Lady talks about Labour’s record, and we heard about its plans during the general election to nationalise the broadband network. Is that still the Labour party’s policy, and is the £100 billion figure that BT estimates would be necessary to do that something that she would be prepared to admit to at the Dispatch Box?

[Chi Onwurah]

I would like to ask the Minister whether he feels that the current regulatory environment is delivering for businesses and people. Does he feel that a regulatory environment where we have a monopoly—Openreach is a monopoly that is regulated, but not as a monopoly; it still has market share—is the right environment in which to deliver the digital economy that we need? The answer is clearly no. As for the solution to that, I can say with absolute certainty that the Government have absolutely no ideas and, more importantly, no plans to address this. We need to ensure that a monopoly network—which is what Openreach currently is—is enabled to deliver the excellent service, speeds and infrastructure that the whole country needs.

We recognise that the Bill is an acknowledgement by the Government of their current failure and an acceptance that the market as it stands is not delivering, but what is it actually trying to achieve? The Prime Minister has held three different positions on broadband infrastructure in six months. Standing to lead his party, he promised to deliver full-fibre connectivity to all households by 2025.

[Alex Davies-Jones (Pontypridd) (Lab)]

The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) made an important point in highlighting the issues in Wales, and I would ask that the UK Government look at the recent Welsh Labour Government’s review of the superfast broadband project to roll out full-fibre broadband throughout rural premises in Wales, only 16% of which are currently covered.

[Chi Onwurah]

I welcome my hon. Friend. She makes an excellent point: an active Government can really make a difference in ensuring that all their citizens can benefit from broadband. It is a real pity that we do not have such an active Government in Westminster.

As I was saying, the Prime Minister first promised full-fibre connectivity to all households by 2025. Then the Conservative manifesto committed his Government to

“a massive programme of improvements for our roads”—

and—

“gigabit-capable broadband to every home and business across the UK by 2025.”

What is gigabit broadband? However, the Queen’s Speech dropped the 2025 reference altogether, saying only:

“New laws will accelerate the delivery of gigabit capable broadband.”—[Official Report, 19 December 2019; Vol. 669, c. 32.]

I am sure the Minister knows as well as I do that gigabit-capable broadband can be delivered through various forms of infrastructure, not only fibre.

Whichever promise the Government are thinking of keeping, they will not do it through this Bill. As the Minister said, it provides a bespoke process for telecoms network operators to gain access to multiple-dwelling buildings in order to deploy, upgrade or maintain fixed-line broadband connections in cases where a tenant has requested electronic communication services, but the landlord has repeatedly failed to respond to an operator’s request for access. Network builders say that they face significant challenges, and if they cannot identify or do not receive a response to requests for access from the building owner, they cannot proceed with network deployment. According to Openreach, 76% of MDUs miss out on initial efforts to deploy fibre because of challenges in gaining access.

The Bill takes into account the fact that landlords are not always responsive or eager to meet their tenants’ needs, but it is not a hammer blow. Its ambition is laudable, and we will not vote against it, but it will not achieve any of the multiple and contradictory aims that the Minister and the Prime Minister have talked about. It has a number of failings and needs to be significantly improved through scrutiny. First, it does not go far enough. The sector has welcomed the Bill, but not with any great enthusiasm. The trade body techUK says that the Bill

“does not go far enough,”

and that,

“from new builds to street works,”

many issues

“have not been tackled by the Government’s Bill.”

[Charlotte Nichols (Warrington North) (Lab)]

Does my hon. Friend agree that, given other well-known leasehold issues, such as rising ground rents and other charges levied by distant landlords, access should not result in extra service charges and that there might be a need to assess and reform the legal relationship between leaseholders and freeholders?

[Chi Onwurah]

I welcome my hon. Friend to the House and to this debate, and I thank her for that excellent contribution. I was coming to that point, but let me make it now and agree with her. The need for this Bill is a reflection of the broken leasehold system, which Labour has significant plans to reform and change, but which the Government apparently have no intention of doing anything about, despite the misery in which many leaseholders find themselves as a consequence of the actions of freeholders.

I do not expect the Minister to be able to address the leasehold issue—although I hope he will say something about it—but he can address the issue of full-fibre broadband. He must be aware that BT said in its response to the Bill that the Government need to go further. BT said that, with the right fiscal, regulatory and legislative enablers, it would be prepared to commit funding to Openreach to fit 15 million homes with fibre by 2025. That would account for 50% of the 30 million that need to be reached, but that raises two questions. First, where would the other 50% come from? I hope the Minister can share with us his plan—it would be good to see one. Secondly, without the enablers that BT refers to, how many homes does the Minister expect to be reached by BT? We need a plan from the Government before we can have any confidence in their vague promises.

We recognise, as I think the Minister acknowledged, that the internet is now an essential utility for modern life. However, the Government’s “Future Telecoms Infra- structure Review” talked of bringing telecoms operators’ powers into line with other utilities. Does this Bill do that? It is not clear. Electricity and gas operators are empowered under the Rights of Entry (Gas and Electricity Boards) Act 1954 to gain entry to a property at all reasonable times, should the landlord or occupier damage the maintenance of a connection. Where water companies are under an obligation to provide water to a property, they are entitled to enter any premises for the purposes of determining whether or how to exercise their powers, and the same powers are extended to sewerage providers.

However, this Bill gives no statutory right of access to telecoms companies and places no obligation on landlords to facilitate access. I am not saying the Bill should do that, but I am trying to understand how the Government are treating telecoms. It would be nice to have a sense that the Government understand the difference between telecoms and other utilities. Other utilities are permitted to force entry to ensure there is no threat to life or safety. Although I believe online harms are a real danger, I do not believe they are the same thing.

For other utilities, such as energy, there is competition only in the retail layer, not the infrastructure layer. I will come back to that point but, given the Government claim to be encouraging infrastructure competition, it will create complexities that need to be explored. From what I can see, although the Minister talks a lot about exploring things, those complexities have not been considered so far.

Given the confusion on what kind of utility telecoms are, it is not surprising that doubts remain on whether this bespoke process will actually work or have any impact at all. What constitutes a meaningful response from a landlord? Can they just acknowledge the request? There is a question on whether the tribunals will have the right resources and expertise. The Country Landowners Association has observed that there is an existing code of practice. Why is that not working? What assessment has or will be made of the effective impact of these processes and costs on businesses? I understand there has been no impact assessment, and I expect to hear when one will be made.

We have heard that the Bill is a hammer blow. The Government promise to accelerate broadband roll-out but, as we have also heard and as I am sure many Members are aware, mobile is an important part of that and the Bill does not mention it. Some 96% of urban areas can get 4G reception from all four operators, compared with only 62% of rural areas; 5% of the UK landmass gets no mobile coverage whatsoever. Rural mobile coverage is set to increase due to an industry project recently announced by Ofcom, and 5G has finally launched in the UK, so we expect to see network roll-out from the mobile operators.

Mobile UK, the industry body, has called on the Government to ensure that mobile and fixed-line broadband services receive equal focus and attention. Does the Minister have any plans to support mobile network roll-out, or is that to be left to the market?

[Jonathan Edwards]

The hon. Lady is raising an important point about mobile, which has huge potential. We have the technology to bring broadband into the home, but the big issue is the size of the data packages. Families find mobile prohibitive because it uses up their data allowance within a matter of days. Should not the Government work with the mobile companies to ensure these products are far better suited for family use?

[Chi Onwurah]

The hon. Gentleman makes a good point, and affordability is a consequence of the level of competition, of the profits that mobile operators are making and of network capacity. The Government can address all those things, but they are apparently choosing not to do so.

The Government claim to be supporting infrastructure competition, and the “Future Telecoms Infrastructure Review” says that infrastructure competition is most effective at delivering investment. Where is the support for infrastructure competition in this Bill? What requirement is there on landlords and internet service providers to support infrastructure access for more than one telecoms operator? Residents will not be able to choose their supplier, leaving them liable to be fleeced by a single provider.

This is particularly important because of the wasted decade we have seen, which has allowed the re-monopolisation of the broadband network to take place. The last Labour Government delivered infrastructure competition in first generation broadband. It survives to this day, which is why people can get decent broadband from providers such as TalkTalk, Plusnet and Sky, as well as BT, but the Conservative Government gave BT hundreds of millions of pounds of public money, to establish, in effect, a monopoly on second generation superfast broadband. The Government were warned at the time, and not only by me, that that would entrench BT’s monopoly, but Ministers refused even to use the word “fibre”, as if by ignoring it, they could make demand for it go away. Other countries require shared access to building infrastructure. Have the Government examined case studies in other countries, such as France, which has a much higher proportion of MDUs than we have and much better infrastructure access competition? Speaking of MDUs, the definition in the Bill seems to imply that the situation is the same for a two-flat house conversion as for a block of flats with 100 apartments in it. Is that really appropriate?

The Minister mentioned new build. In 2008, I ran Ofcom’s consultation on fibre access for new build, and since then we seem to have made absolutely zero progress. What recommendations or guidance for new build apartments, and what other policies, is he proposing to ensure that new build houses have fibre access? As has been suggested, the huge question overshadowing this is the relationship between leaseholders and freeholders. Leasehold is broken. Labour has promised to end it, but, unfortunately this Government appear to have no meaningful proposals.

In conclusion, telecoms companies need to be able to deploy infrastructure quickly and effectively. Absentee and bad landlords can deprive residents of decent broadband by not co-operating, but telecoms companies should not be able to fleece residents or crowd out smaller competitors, and savings must be passed on to consumers. There is much the Government could be doing to deliver the infrastructure we need. We support the aims of this Bill but fear that the measures are not properly thought through and will not make a significant difference. We need a proper plan to overcome 10 wasted years.

When, last week, I said that Big Ben was the only telecoms infrastructure the Government could plan for, the Minister told me off, saying that, “as an engineer”, I should know that Big Ben “is not telecoms infrastructure”. He clearly does not know his telecoms infrastructure, as bells and beacons were our earliest forms of telecoms, which is, in essence, communicating at a distance, as the Spanish Armada found out. They were supported by public investment—[Laughter.] The Minister laughs, but he knows that we want to make sure that we have public investment to support the telecoms infrastructure, which provides a public good. It is sad that although the Government are happy to leave our infrastructure stuck in the past, they refuse to learn lessons from it. Under the Conservative party, one wasted decade may become two, and the British people will be the biggest losers.

[Mr Deputy Speaker (Mr Nigel Evans)]

Let us have the usual courtesies respected during maiden speeches. I call Anthony Mangnall to make his maiden speech.

--- Later in debate ---

[Matt Warman]

The hon. Gentleman is right that effective competition is absolutely essential to rolling out broadband in the best possible way. I have seen for myself in Dundrum and Belfast a whole host of really excellent work in Northern Ireland, demonstrating not only that it can be done but that it can be done at an even more efficient price than in some parts of the rest of the United Kingdom. Good work is going on that promotes competition. The role of the Government is, of course, to make sure we get maximum value for money across the whole of the United Kingdom.

I pay tribute to both the new Members who spoke for the first time. My hon. Friend the Member for Totnes (Anthony Mangnall) asked us to reimagine what a significant encounter might look like, but, more seriously, elsewhere demonstrated the depth of knowledge and breadth of expertise that he brings to this place. His constituents are lucky to have him, even though he is neither a communist spy nor a mystic—to our knowledge. Just as the Bill represents a significant upgrade for broadband in this country, my hon. Friend is an upgrade on communist spies and mystics, so we pay tribute to him.

I also welcome my hon. Friend the Member for Bury South (Christian Wakeford). He was initially somewhat disparaging about the Bill, and I was worried. But he showed genuine expertise on the topic as well as on antisemitism, one of the most challenging issues of our age. I also pay tribute to his courageous predecessor. I know from his funny and down-to-earth speech that he will be a worthy Member of this place.

Finally, my hon. Friend the Member for Bishop Auckland (Dehenna Davison) said that she had seen two new Members becoming initiated into full involvement in this place; I should say that full involvement comes when one colleague like her says something nice about me while another—who I shall not name—heckles to say that she is probably wrong. Welcome to politics. My hon. Friend is of course right to say that the Bill introduces things that will make a real and meaningful difference—not just in urban constituencies, but across the country. People are living in multi-dwelling units and blocks of flats in all our constituencies.

I am also, of course, happy to discuss some of the other issues that various Members raised in this debate. Some of those will come out in Committee. I was grateful to receive applications from a number of Members to serve on the Bill Committee—we will try to ensure that they do not regret it. It will be an important piece of legislation and I am grateful to them for their expertise in this debate and beyond.

To conclude, I am sure that we can continue to work together across the House to bring this important Bill into law as soon as possible, and on the other legislation that forms the building blocks of a comprehensive plan to deliver gigabit-capable networks across this country.

We are bringing this Bill forward first because it allows us to crack on with a plan that we would otherwise have to deliver by waiting for a single, larger piece of legislation. The Bill allows us to address some aspects of a broader challenge, and we will get on with the rest of the plan as soon as possible.

[Chi Onwurah]

rose—

[Matt Warman]

I look forward to encountering the hon. Lady across the Dispatch Box—it would be mean not to give way to her.

[Chi Onwurah]

I was pleased to hear the third or fourth reference, I think, to a plan. Will he share with us when he will publish the plan for gigabit-capable broadband delivery?

[Matt Warman]

We will, of course, be talking much more extensively and consulting on various aspects of the plan, which the hon. Lady will see emerge in good time. We are genuinely keen to be collaborative on many aspects of the Bill, because it is good to see cross-party support for a Bill that we all acknowledge is important. We hope to be able to do the vast majority of any legislation with cross-party support, because that is the right thing to do.

Government Members care passionately about this issue, and I am sure that the same spirit will continue as the Bill makes its passage through the House. This is a real contribution to the agenda of levelling up across the country and bringing digital infrastructure to every school, home and classroom in a way that allows all our constituents to benefit from the infrastructure that they deserve, and from a digital revolution that this Government will foster.

Question put and agreed to.

Bill accordingly read a Second time.

Telecommunications Infrastructure (Leasehold Property) Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Telecommunications Infrastructure (Leasehold Property) Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 6 February 2020.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Mr Marcus Jones.)

Question agreed to.