Product Security and Telecommunications Infrastructure Bill

Chris Elmore Excerpts

Report stage
Wednesday 25th May 2022 Commons Chamber

[Julia Lopez]

Most of the people I have spoken to are already in the market and believe that the change will make a big difference to how they roll out. It is a very competitive market with many new entrants. I am not aware of anybody who is just dipping their toe in the water; because it is so competitive, people are already aggressively in the market. We think that the change will really help to accelerate the roll-out to our constituents of fantastic digital infrastructure of the kind that we all understand is fundamental to driving productivity gains, and to reducing the divide between areas that do and do not have that connectivity.

From the contribution of my right hon. Friend the Member for New Forest West on Second Reading, I understand that his concern relates to the effect of clauses 61 and 62 on landowners who already host telecoms apparatus on their land. I recognise that, ultimately, these changes are likely to lead to reductions in the rent received by landowners with a tenancy protected by the Landlord and Tenant Act 1954 or the Business Tenancies (Northern Ireland) Order 1996. I appreciate that that might not have been expected by those entering into such tenancies at the time they were created, but it is also fair to say that market values change over time, and there is never any guarantee that rents received by a landlord will remain constant or increase.

We have also given careful consideration to the effect of clauses 61 and 62, and have balanced the impact that they might have on landowners with the wider, substantial public benefits that we are pursuing. It is also important to recognise that the changes will not happen until any ongoing agreement expires and comes to be renewed. Furthermore, clauses 63 and 64 introduce separate provisions allowing the landowner to recover compensation for any damage to their land, reduction in its value or reasonable expenses resulting from an operator exercising their code rights.

Clauses 61 to 64 ensure that the 2017 framework will apply to all future agreements. It must be remembered that the code has an underlying purpose, which is to support the delivery of robust digital networks. Our constituents increasingly rely on those networks for critical digital services. Only recently, the National Farmers Union’s digital technology survey found that poor mobile signal and unreliable internet access are hampering farming businesses. We know that rural connectivity is a problem for many organisations, and addressing it is one of our priorities as a Government. The Bill, including clauses 61 and 62, aims to address those issues.

I am sure that my right hon. Friend had only noble intentions when tabling his amendments, but although they may benefit some landowners, they have the potential to penalise entire communities by keeping network costs unacceptably high. Clauses 61 and 62 will help to reduce the digital divide between different parts of the country, as they will help to prevent deployment being cheaper in one area than another.

Finally, I turn to amendments 9 to 11 tabled by my right hon. Friend, which would require a party to use alternative dispute resolution processes before making certain applications to a court under the electronic communications code, including where an agreement granting rights under the code is being sought. The provisions on ADR processes in the Bill aim to create more collaborative discussions between landowners and telecoms operators to ensure that litigation is used only as a last resort. I suspect that that is what the amendments seek to ensure as well. Although I sympathise with the intention behind these amendments, the Government oppose them—first, because they are unnecessary; secondly, because ADR is not appropriate in every situation; and thirdly, because they would be counterproductive to the amendments’ overall intentions.

The Bill requires operators, when requesting rights under the code, to inform the landowners of the availability of ADR. Crucially, it also creates a requirement that if an application is made to a court, the court will be required to take into account any unreasonable refusal to engage in ADR when awarding costs. Those requirements strongly incentivise the use of ADR without the need to make it mandatory. The Government therefore believe the amendments to be unnecessary.

It is also important to note that ADR may not be suitable in certain cases, such as where a disagreement is based on differing interpretations of the law. Such points of law must be resolved in the courts, and mandatory ADR would add cost and time to that process without offering any benefit.

The Government also believe that the amendments would be counterproductive to their own goals. If ADR were compulsory, some parties would be compelled to participate in an ADR process they do not want to be involved in, and so would be less inclined to actively engage in the process. That would increase the risk that ADR would fail, which would mean that parties would have to go to court anyway. If that were the case, all that compulsory ADR would have achieved is to add an additional layer of time and costs for landowners, such as charities, sports clubs and farmers. It should also be noted that, when consulted, a clear majority of stakeholders were not in favour of compulsory ADR. I hope that I have given my right hon. Friend assurance that the provisions regarding ADR in the Bill already represent the most effective way of encouraging its use, and I hope that he will not press his amendments to a Division.

[Chris Elmore (Ogmore) (Lab)]

You will be aware, Madam Deputy Speaker, that I have spent at least the last five and a half years as an Opposition Whip encouraging brevity, so I do not intend to keep the House too long. I will keep my remarks short and hopefully to the point. As I said on Second Reading and in Committee, I will not pretend that the Opposition do not support the wider principles of the Bill. I thank the Minister for the constructive way in which she has engaged on it with me from the outset.

I turn to the new clauses and amendments. New clause 1 is an improvement on the Government’s first attempt to change the definition of “occupier”, but the changes put forward are still not watertight when it comes to preventing unintended consequences. The new clause does not address the underlying issue that operators could theoretically use it in situations other than when existing agreements have expired, which could lead to financial consequences for small site providers who have been hard done by since the electronic communications code review in 2017. More work is needed when the Bill moves to the other place to ensure it does not unintentionally punish site providers further. We have no issue with the proposal in new clause 2 that grants the Secretary of State power to make regulations that provide for a function conferred by the code on the court to be exercisable in relation to Wales by the first-tier tribunal.

I will speak to amendment 14 on behalf of my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier). She sends her apologies to the House; she is chairing the Public Accounts Committee. We have checked with the Clerks and the Speaker’s Office to check that that is appropriate. That amendment, and the consequential amendments 15, 16 and 17, seek to apply a different regime under the electronic communications code to private landlords. They would give operators automatic upgrade rights in respect of properties owned by private landlords, subject to the strict condition that the upgrading imposes no additional burden on the other party to the agreement.

The growing digital divide in our towns and cities has only been exacerbated by the pandemic. The Government’s broadband target has been downgraded twice, and the Digital, Culture, Media and Sport Committee doubts that the current 85% gigabit target will be met. The backlog is due to the difficulty in accessing a high number of properties, a disproportionate number of which are flats, whose absentee landlords have little to no incentive to respond to requests to upgrade and improve connectivity.

[Ruth Edwards (Rushcliffe) (Con)]

I have complete sympathy with the intention behind the amendments and with what the hon. Gentleman is trying to do, but many providers whom we have spoken to throughout the Bill’s passage oppose them on the grounds that they will give the incumbent provider an advantage. Is he concerned that an unintended consequence of his amendments might be to make it more difficult for new competitors to enter the market and provide our constituents with the services that they need?

[Chris Elmore]

I welcome competition in the market, but I would say to the hon. Lady that we now have broadband blackspots in parts of central London, and 15% of the constituency of the hon. Member for Hastings and Rye (Sally-Ann Hart) has these MDU blackspots. This is affecting constituents up and down the land, and the demand from all our constituencies, particularly because of the pandemic, is that we require the very best sector-leading broadband. It cannot simply be the case that some operators say this must happen and some say it should not happen, therefore nothing is resolved.

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[Sir Desmond Swayne]

May I take it therefore that, if Madam Deputy Speaker is minded to allow separate decisions on my amendments, the hon. Gentleman will support them?

[Chris Elmore]

I can tell the right hon. Gentleman that we supported this in Committee. Sadly, the Members on his own side did not. I would be very glad if he pushed the amendments, through your good offices, Madam Deputy Speaker, and if he did so, I am sure we would all row in behind him. What the Minister and the Government Whips do could be a different conversation altogether, but I do not think that worries him anymore.

I now turn to Government amendments 4 to 7 and the right hon. Gentleman’s own amendments 10 and 11. We welcome amendments 4 to 7 to ensure that a person with whom an operator is seeking a code agreement may at any time give the operator notice that they wish to engage in alternative dispute resolution in relation to a prospective site-sharing agreement. While the pace of new agreements between landowners and operators has slowed down in recent years, small landowners have been unable to afford the cost of going to a tribunal to try to defend their property rights. When the Bill moves to the other place, we hope that a debate can continue on the possibility of making ADR mandatory, as suggested by amendments 10 and 11, for telecoms operators before threatening to take landowners to court for an agreement to be imposed.

As I have said from the start and certainly many times in Committee, we are not against this Bill, which is a welcome step in the right direction. However, there are certain areas that need to be tightened and improved, and I hope their lordships will have a full debate and bring forward much-needed amendments to ensure that we deliver the very best broadband roll-out right across the United Kingdom.

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[Chris Elmore]

I do not intend to detain the House for long. Her Majesty’s Opposition recognise that the first duty of any Government is to keep their citizens safe. That is why we are supporting the security elements of the Bill, which were developed by the Department in conjunction with the National Cyber Security Centre. As the digital sphere becomes ever more integral to our lives and livelihoods, it is of the utmost importance that citizens across the United Kingdom are protected from malign actors. We believe that the Bill will make some significant progress in that regard.

Although we think that measures in part 1, such as the ban on default passwords, are of paramount importance and will no doubt bring benefits, we have concerns about a number of other areas. The legislation establishes, through regulations, three core security requirements for “connectable products”. Rather than those three security requirements being left to be defined in future, we believe that they should be expressly set out in the Bill. That would speed up the entire process and ensure that consumers are protected sooner rather than later.

Similarly, we would like the Secretary of State for Digital, Culture, Media and Sport—it is a pleasure to see her in her place—if she is not too busy trashing another one of our great British institutions, to prepare and publish a report on the security risks to UK connected products. During an oral evidence session on the Bill, Professor Madeline Carr, a cyber-security expert, told us that she would not have an Alexa in her house due to the security risks and that there is nothing in the Bill that would change her mind. Due to that statement by an industry expert, and the prominent role that cyber-warfare is playing throughout the conflict zones of the world, we think that it is very much in the national interest to know how secure our connected products are, and we call on the Government to go much, much further.

The Prime Minister came into office promising “full-fibre” broadband by 2025. Due to a lack of application and grip from the Prime Minister and the Government that he leads, that target was quickly downgraded to full gigabit broadband by 2025. In what was a surprise to absolutely no one who follows this Administration closely, the target was downgraded again to 85% gigabit-capable broadband by 2025. There are still huge doubts—voiced by the Digital, Culture, Media and Sport Committee, the Public Accounts Committee and industry—that even that twice-reduced target will yet be achieved, selling Britain short at every opportunity.

I take no pleasure whatever in pointing out those failures. Indeed, I believe that they are hugely damaging to the future economic potential of our country and to the UK’s social fabric. That is because a digital divide exists in our country and it is only getting worse. One such divide is the fact that, when it comes to digital connectivity, many communities in rural and semi-rural areas, including my Ogmore constituency, are being left behind completely. With the increase in working from home and schoolwork being done over the internet since the pandemic, the Government urgently need to get a grip on this critical issue.

In detailing the Government’s failings when it comes to our telecommunications infrastructure, I think of our own Sir Tim Berners-Lee, who had a vision of the internet being “for everyone”. However, the Government’s inaction is ensuring that that is currently not the case. In 2010, the Labour party left behind a world-leading sector for communication and mobile phone roll-out. The Government have stagnated and stalled over the past 12 years and have failed to build on Labour’s success.

I repeat what I have said throughout the passage of the Bill: I support the Bill’s aim of both increasing the security of our connected devices and speeding up the roll-out of our telecommunications infrastructure. Our point of contention is that the Bill, as currently constituted, does not do either as well as it could. It does not deliver what people in this country desperately need: improved broadband.

As the Bill makes its passage to the other place, we hope that the issues raised about it can be taken up by their lordships to ensure that the improvements can be made and, hopefully, some amendments won. I echo what the Minister said about the constructive nature of our debates—I am not sure that we will be able to continue that with other Bills that she and I may spar over in the months ahead, but I am sure we will try.

I thank the Clerks and all House staff who worked so diligently during the Bill Committee, including the evidence sessions. I thank the witnesses for their expert advice, which was truly valuable. I thank my staff, including Alex Williams and James Small-Edwards, who did an enormous amount of work—I do not have the luxury of civil servants, but perhaps one day soon—[Interruption.] The Secretary of State says “Dream on”. She has certainly been having a few dreams of her own of late that are not working very well, particularly for the Prime Minister. I pay tribute to my staff, who have worked diligently during this process, and I thank all the Members who have played such an integral part in ensuring that the Bill passes through the House with civility and good humour throughout.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Scottish National party spokesperson, Owen Thompson.