Digital Economy Bill Debate

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Chris Bryant

Main Page: Chris Bryant (Labour - Rhondda)
Tuesday 13th September 2016

(7 years, 8 months ago)

Commons Chamber
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Karen Bradley Portrait Karen Bradley
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The hon. Gentleman makes an important point. We are already looking at this and trialling it. The more we can do to use data and digital to enable people to transact more quickly, the better. Clearly, we have the challenges of data protection; we must ensure that people’s data are protected. There is a tension, but it is one that we are acutely aware of and working on.

We can be proud of our successes, but the Government’s ambitions are greater than that. Although 19 in 20 premises will be able to access superfast broadband, one in 20 will not. For that significant minority, the Bill brings good news. Implementation of the new broadband universal service obligation will require the designated communications provider to connect customers on demand at an affordable price. Eventually, technological developments will allow everyone to have a superfast connection, but until then the Bill will provide a safety net, so that by 2020 a minimum broadband speed of 10 megabits per second should be available. [Interruption.] The hon. Member for Rhondda (Chris Bryant) murmurs from a sedentary position, but that is the absolute minimum safety net.

Karen Bradley Portrait Karen Bradley
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I can never resist the hon. Gentleman.

Chris Bryant Portrait Chris Bryant
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The Secretary of State forced me—she virtually begged me—to stand up. I hear all the self-congratulation, and as much as I admire the former Minister with responsibility for the digital economy, the truth of the matter is that the original target was to get all the superfast broadband done by May 2015. That target has not been met, and the new target is December 2017. The Secretary of State is talking about a superfast speed that would not be recognised as superfast anywhere else in Europe, and 10 megabits per second is simply not enough to deliver for this country.

Karen Bradley Portrait Karen Bradley
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I am sure my right hon. Friend the Member for Wantage (Mr Vaizey) will be delighted to be admired by the hon. Gentleman, but the hon. Gentleman is simply misrepresenting the position. Is he saying he is opposed to that position? Is he saying he is opposed to the Bill? Is he saying he is opposed to the measures in the Bill, which will make sure we have the maximum roll-out so everybody has access to broadband?

Chris Bryant Portrait Chris Bryant
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The Secretary of State is asking me questions now. It is normally the other around. If she is going to keep on stimulating me in this way, let me say that, no, I think the Bill should be far more ambitious. We should be making sure that 4G is available to everybody, not have 70% of people in rural areas not getting any 4G at all, and we should have a universal service obligation of 15 megabits per second.

Karen Bradley Portrait Karen Bradley
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The hon. Gentleman should listen to the rest of my speech and then support the measures the Government are introducing. We want to make sure that we deliver—to ensure that there is access to broadband, that there is access to 4G and that everybody is connected.

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Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
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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—

Chris Bryant Portrait Chris Bryant
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And all sizes!

Chi Onwurah Portrait Chi Onwurah
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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.

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John Whittingdale Portrait Mr John Whittingdale (Maldon) (Con)
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It is a pleasure to welcome the Digital Economy Bill, not least because it still has my name on the front of it. Indeed, my right hon. Friend the Member for Wantage (Mr Vaizey) and I can claim a degree of joint paternity on this particular measure.

Chris Bryant Portrait Chris Bryant
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Steady!

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John Whittingdale Portrait Mr Whittingdale
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I do agree. I shall say a few more words about it in a few moments, but I generally agree with the hon. Gentleman. As for the code reforms, these will make it easier for communications providers to maintain and repair their equipment. This is now an essential part of ensuring that we have an adequate infrastructure.

Chris Bryant Portrait Chris Bryant
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The right hon. Gentleman says that it will make it easier for providers to repair, but it will not. It makes it easier for them to put new masts up, but it does not make it easier to repair them, particularly when the groupings of “whips”, as they are called—they enable different mobile companies to use similar masts—are expressly excluded. Does the right hon. Gentleman think it would be advantageous to change the Bill in order to allow them to be included?

John Whittingdale Portrait Mr Whittingdale
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I believe that access to wholesale infrastructure providers’ masts is regulated by Ofcom in any case. We were advised that this was not a significant problem, although we looked at it quite closely at the time. We decided that it was not necessary to extend the provisions to cover wholesale infrastructure providers.

One thing I would say to Ministers is that alongside the reform of electronic communications codes, there have been some welcome changes to planning laws, which will enable higher masts. As we move into the next generation of 5G services, a huge number of very small transmitters are going to be required, which might need to be attached to lamp posts in cities, for example. We do not want to need individual planning applications for every single one. Given that 5G is coming down the track fast, we might need to look at planning laws again. I leave that issue with the Minister.

Provisions on the universal service obligation are also a major step forward. Whether or not the USO is a legal necessity remains to be seen, but it is certainly sensible to put the provisions in the Bill. BT is already saying that it can deliver it without a legal requirement, but this should certainly spur it on in its efforts to demonstrate that that is possible. The hon. Member for Coventry South (Mr Cunningham) raised his concerns about BT. Now is not the occasion to rehearse all the arguments for a digital communications review. Ofcom has, I think rightly, put forward proposals to make a clearer separation between Openreach and BT Retail, but there is still some concern that those proposals do not go far enough. It will be necessary for BT to make it absolutely clear that there is full separation and a level playing field. I say to Ministers that they will want to look at that carefully. If it is not working sufficiently, it will need to be revisited.

Ofcom is obviously playing a key role throughout this process. One measure we thought about for a long time was Ofcom’s request for changes to its appeals procedure. BT has strongly opposed that, but Ofcom believes it to be necessary. One reason why it is necessary is that it has become apparent in recent years that almost every single decision taken by Ofcom is promptly challenged in the courts. Ofcom is not determining these matters; they are being determined by the judicial process that is then triggered by the communications provider. That is not how it was supposed to work, and it has resulted in lengthy delays in putting through some quite important measures. On balance, the change to the nature of the appeals process—the hurdle that has to be met to allow a judicial challenge—is a sensible one. This has become apparent simply because of the number and extent of the judicial challenges that have occurred over the last few years.

Let me say a few words about one or two other measures in the Bill. Copyright is one of them. I am delighted that the Bill equalises the penalties for online and offline copyright infringement. I have brought with me a copy of the Select Committee’s report “Supporting the Creative Economy”, published in September 2013. One of its key recommendations was that the penalties should be equalised, and that it should be made clear that infringement of copyright online was as serious as infringement offline. That will send a clear message, but more still needs to be done.

As my right hon. Friends will know, the Conservative party manifesto stated that we would put pressure on search engines to try to prevent illegal sites from coming up at the top of a search. I know that round-table discussions have been taking place for a considerable time, but it is a matter of great concern that no significant progress has yet been made. In the most recent attempt to find out whether or not there had been an improvement, a Google search was made for “Ed Sheeran Photograph download”, with “Photograph” being one of Ed Sheeran’s most recent songs. Only one of the top 10 listings involved a legal site, and the legal site was YouTube, which, of course, is owned by Google.

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Calum Kerr Portrait Calum Kerr
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Yes, I think he did.

Chris Bryant Portrait Chris Bryant
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Self-praise is no praise.

Calum Kerr Portrait Calum Kerr
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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.

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Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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It is a great delight to follow the former Secretary of State, the right hon. Member for Basingstoke (Mrs Miller). She has shown from what she has said this afternoon and from when she was in office the level of expertise, interest and commitment that she has in this area of work. It is always a delight to hear from the right hon. Member for Maldon (Mr Whittingdale), who, unusually, was a round peg in a round hole when he was appointed to the job, and he got a little bit rounder as the year went on. Seriously, though, it is a delight to hear from him.

We all know as Members of Parliament that we live in a digital economy, because we have so many emails from constituents and others. This email is not from a constituent, but I thought that I would share it with the House. It says:

“Dear RhonddaYfronts,

Just watched you and that other dull dishcloth of an MP on Daily Politics. You both sum up clearly why Labour will never win an election anytime soon. Uninspiring, pathetic career politicians with no substance or gravitas.

Finally, are you still on Gaydar, Grindr, or Scruff? If so, what’s your profile as I quite fancy you.”

Self-praise is no praise.

As the two former Secretaries of State have already acknowledged, the creative industries are absolutely essential to this country. They were worth £87.4 billion to the UK economy in 2015. Creativity lies at the heart of it all, which is why I welcome all the measures that relate to strengthening the intellectual property law. Some 355 million music tracks and 24 million films were illegally downloaded between March and May of this year. We do need to tackle that if we are to protect those who create that value—those who are at the imaginative heart of this country. My only question about clause 26 is whether the definition is strong enough, but that is a matter for us to deal with in Committee.

We also need a strong and independent BBC. This is one of my biggest disappointments with the Bill and everything that has happened since 2015. The BBC is funded by the licence fee in the main. Last year, that amounted to £3.6 billion. That sounds like a lot of money, but it is worth bearing in mind that Sky in that same year had a revenue of nearly £12 billion, three times as much, and £2 billion of profit. I do have one anxiety. I do not expect the former Secretary of State to respond to this, but I think that in his heart he agrees that it was entirely wrong and wholly inappropriate to put the payment of the over-75s’ licence fees on to the BBC. Even more importantly, a part of the Bill breaches the BBC’s fundamental independence, because it turns the BBC into an arm of the Department for Work and Pensions, and that is wholly to be deprecated. In time, I think that the Government will regret that. There is an element of cowardice in that, because if the Government want to get rid of the free television licences, they should do it themselves; it should be a manifesto commitment in a general election, and then they should proceed. To make the BBC carry out the decision-making process on who gets a concessionary licence is wholly wrong. Incidentally, the whole deal happened after a meeting between the former Chancellor and Rupert Murdoch. It just shows that nothing ever changes in this country.

May I just ask the Minister—I hope that he will be able to respond later—when will we get the draft charter? Lord Ashton of Hyde said in the House of Lords that its publication would be in September. I hope that the Government are not intending to publish it when the House is not sitting, but they therefore have only two more days, and then we are meant to have a debate in October. [Interruption.] The former Secretary of State will doubtless tell us. [Interruption.] Perhaps the right hon. Member for Wantage (Mr Vaizey) will tell us later when he gets the chance.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Mr Vaizey, I was thinking of calling you next. If you want to go down the list, carry on and I will ensure that it happens.

Chris Bryant Portrait Chris Bryant
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It is always good—is it not, Mr Deputy Speaker?—to see the right hon. Gentleman doing abject.

The digital economy is important beyond just the creative industries. We have the highest rate of contribution to our GDP of any country in Europe. Some 11% of jobs in the UK are now related to the digital economy, and that part of the economy has grown two and a half times faster than any other part. The digital economy also plays to our national strength in terms of the English language, music, drama, sport and gaming. Nevertheless, I worry that the present Government—maybe we did it when we were in government as well—are always wanting to pat themselves on the back, when actually it will be difficult, despite constant striving, to ensure that everyone can participate. There are still lots of people who have just 2 megabits per second. There are people who, when they have 10 megabits per second, will have contention rates that make it very difficult indeed for them even to use iPlayer effectively. I hope that the ministerial team will not want to keep congratulating themselves.

As I said, in many rural areas, including in my constituency, 70% of people have no access to 4G. The former Prime Minister has now left the House, but his obsession with Polzeath was never matched by success, because Polzeath still has terrible mobile coverage. As far as I can see, unless someone wants to correct me, the mobile infrastructure project was a complete waste of money—£150 million spent on 75 masts. That is £2 million per mast, by my rough arithmetic, and that is if all of them were built. It would be nice to know what has happened there.

I support the measures on pornography, to protect young people from images that would be inappropriate for them, but I, like the right hon. Member for Maldon, think that it is too unclear how that will be achieved. If you just ask, “Are you over 18?” it is a bit like going to the United States of America and being asked, “Are you now, or have you ever been, a member of the Nazi party of Germany between 1933 and 1945?” I suspect that not many people say yes.

The right hon. Member for Basingstoke is absolutely right about online abuse. I commend her for the work that she and others have done through her Committee and elsewhere. It is very important because many people, especially women, are finding that the internet is not a safe and happy place to be. It is far from happy. She is right that there is no clear definition of online abuse. The Crown Prosecution Service guidelines are inadequate and are preventing police from investigating in many instances where they should be taking action.

A Demos study earlier this year showed that in just three weeks, 6,500 women were called “slut” or “whore” in the UK on Twitter alone. Half of teachers now report that they receive online abuse either from parents—which is scandalous enough—or from their own pupils, and very little action is taken.

Many Jewish colleagues in the House have had absolutely hideous abuse—the kind of abuse that one would have thought ended in 1945, yet it now seems to be around as part of a supposedly acceptable political discourse.

There are real jurisdictional problems. I reported an instance relating to someone who was making death threats to me into my office and, more importantly, wanted to put antifreeze in halal meat in Sainsbury’s. When an attempt was made to prosecute, because the person was based in Germany, the German police refused to act, on the basis that it was just a British politician being attacked by a British national who happened to be in Berlin. I hope that the Government will examine some of these jurisdictional issues. Facebook, Apple and many others are far too slow in co-operating with the police, and I believe that what counts as evidence of ownership of a site is far too indistinct.

The internet can be an echo chamber, turning mild annoyance into a claustrophobic fury, and under the cloak of anonymity, people think they can get away with anything. We need to put a stop to that.

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Matt Hancock Portrait Matt Hancock
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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.

Chris Bryant Portrait Chris Bryant
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Several Members referred to when the draft charter for the BBC will be published. I hope that this Minister will be able to say, as former Ministers were suggesting from sedentary positions—and are now with prim faces—when this might be. Will it be tomorrow or the day after? Will the Minister also guarantee that there will be a debate here and in the House of Lords before the charter is implemented?

Matt Hancock Portrait Matt Hancock
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The hon. Gentleman tempts me on the BBC charter. I can tell him that it will be published shortly, and that there will be a debate in both Houses to take note of it, which is the normal process.