Community Broadband Schemes

David Duguid Excerpts

Thursday 15th November 2018 Commons Chamber

[Stephen Kerr]

I completely agree. There is a need for investment to create a truly national all-inclusive infrastructure network.

BT’s lack of investment in solutions for exchange-only connections is an example of what I am talking about. This will continue until we see a real divergence between BT Openreach and BT itself. Openreach should be charged with the delivery of this national infrastructure system to allow Britain to become a truly digital nation and an economy fit for the future.

[David Duguid (Banff and Buchan) (Con)]

I am following my hon. Friend’s speech with great interest. He represents Stirling and we all think of Stirling as being the city of Stirling but it is a large rural constituency much like my constituency of Banff and Buchan, and we face similar issues, as we have discussed. We are often told that what we have to overcome are the technical, geographical and topographical issues, but these same premises have power cables and water lines going through the same topographical areas. It is actually a matter of cost.

[Stephen Kerr]

My hon. Friend makes a good point and I will come on to address some of the issues he has kindly raised.

It amazes me, when I listen to the stories of community broadband groups in my constituency, that community broadband schemes ever happen at all. It was a pleasure to be present at the official launch of the Balquhidder community broadband in March this year. Balquhidder is the resting place of Rob Roy MacGregor, perhaps the glen’s most famous son; he was an outlaw, thief and folk hero. It is a scattered rural community in one of the most beautiful parts of Scotland, which can also now boast one of the fastest broadband connections in the UK.

That is down to David Johnston and Richard Harris, two of my constituents, who belong to Balquhidder and who are real heroes in my eyes. They have shown true determination and grit to get this project through. I have met Richard and David many times and their perseverance and tenacity, and indeed that of the whole community, in the face of immovable slow government and unhelpful bureaucracy is inspiring. It is an example of the power of the people. David Johnston met my right hon. Friend the Member for West Suffolk (Matt Hancock) when he was Minister of State at the Department for Digital, Culture, Media and Sport in Stirling to discuss the project. I invite the Minister to come to Balquhidder to hear Richard and David’s story for herself, because although the project came to fruition this year it started way back in 2007. Their experience was extraordinary; it was of official meeting after official meeting and of a series of ongoing disappointments and setbacks. When they started out, BT and the Scottish Government both withheld critical information from them about where upgrades would be happening and which communities would benefit from public funding. That meant that community schemes the length and breadth of Scotland were held up by indecision and dither.

European state aid rules cover broadband investment. That means that, when an area benefits from state-funded infrastructure, it cannot benefit from a second investment. These European rules narrow the field of Government aid, and that has meant that community schemes have been on hold for years while BT and the Scottish Government try to work out behind the scenes what their priorities and plans are. To some extent, we are still waiting, thanks to the state of dither they are in.

It is worth noting that these rules are widely and regularly ignored by other EU countries. The interpretation around intervention in digital infrastructure is a particularly egregious example of where the rules are not only infuriating but actively detrimental to our economy. Imagine for a moment if the EU told us we could not build a road, install a water pipe or upgrade a railway. It is a basic job of Government to ensure that critical national infrastructure is provided, including broadband infrastructure in rural communities. However, because public money is being used, they must conform to an endless litany of rules and regulation.

A similarly convoluted story is told in the Trossachs area, in a beautiful rural community in Stirling around the village of Brig o’ Turk and the visually impressive Ben Venue. This community pursued a wireless technology solution. It explored interesting and innovative technologies, only to be let down by Stirling Council, which finally scrapped its community broadband group in favour of taking direct political control. That was a regrettable decision and many community groups have expressed their frustration to me about that decision.

Many other issues impact negatively on community broadband schemes. They include the difficulties communities have establishing wayleaves with public sector organisations, especially the Forestry Commission, which see such things as an opportunity for revenue and profiteering, and the withdrawal of the UK broadband voucher scheme, which happened with no notice. That was another regrettable decision that left some communities without a viable scheme to draw resources from and no clarity at the time on what would replace it. I know that a replacement scheme has since come in, but the capriciousness of Government remains a real issue for community schemes.

The plethora of Government schemes thrown at communities is also a real problem. Community Broadband Scotland failed miserably in its objective to fund and develop community schemes. Its dithering and ineptitude have caused many community groups to turn away from this path. Then there is the involvement of Digital Scotland Superfast Broadband, which has done some good work but lacks transparency about its priorities and plans. That leaves communities without a clear idea of how they can get involved in bringing broadband to their community. Broadband Delivery UK has been slow to act in Scotland and, as I have said, has left communities high and dry by abandoning schemes and being unclear about its approach to local full-fibre networks in rural Scotland.

I have previously said in this House that I am concerned about the use of the national productivity investment fund for broadband investments, as recently outlined in the Budget speech. That is of absolutely no help to my constituents, or to Scottish constituencies. It is money that will be Barnettised and passed to the Scottish Government and, on past performance, the Scottish Government will not invest the money but continue their dithering.

Of course, this is not the only budgetary issue that affects my constituents. In England, the UK Government have created legislative measures to provide 100% business rates relief on new fibre infrastructure. In Scotland, we still await any like-for-like measure from the Scottish Government. Balquhidder is saddled with this cost, as are community schemes the length and breadth of Scotland. Again, while the UK Government act, the Scottish Government dither. In Scotland, the Scottish Government posture, claiming credit for every good thing, while blaming the UK Government for everything else. How, I ask the Minister, has this been allowed to happen?

Can the Minister assure me that her Department is fully cognisant of its responsibilities for broadband provision in Scotland? My hope is that she is open to my gentle but forthright encouragement that the Department should be seen to be far more active in Scotland than it has been. Scottish taxpayers pay toward expenses in reserved areas such as this, just as English taxpayers do, and it is not right that the UK Government should be handing over this reserved area to the ineptitude of the Scottish Government and stepping away.

We have seen some improvement over the past year, and I pay tribute to Ministers in the Department for their approach, but I hope the Minister will take the opportunity of this debate to commit to further action. The SNP has done with broadband what it has done with every issue: it has turned it into a grievance-inspired wedge so that it can talk about independence. That is as predictable as it is tedious, as the SNP does the same with health, education, transport, finance and agriculture —the list goes on.

Now we come to the real problem with broadband in Scotland. The Scottish Government have led communities down a garden path with promises of a shining city—a digital Jerusalem, if you will—and with their much-vaunted R100 project. The object of this project is to deliver by 2021 broadband services with a speed of more than 30 megabits per second to every household and business in Scotland. I commend to the Minister the Audit Scotland report from the spring of this year. It is bathed in the language we would expect of auditors, but it identified a clear problem with the R100 scheme, in that the timescale is unachievable given that the contract will not be awarded until next year—2019—and the objective is for 2021.

There is no adequate, long-term overall strategy. The Scottish Government’s objective is totally unrealistic. They are touting R100 as a catch-all solution to Scotland’s digital gap, as if saying the word often enough will get everyone to believe that. That approach belies the complexity and difficulty of getting the remaining properties connected to a superfast internet connection.

It is time for the Minister to reassess this issue and the UK Government’s whole approach to broadband delivery, especially in Scotland. Our vision should be for universal fibre-to-premise provision. We all know why that is necessary. We all know it will create jobs and allow people to live in remote and rural areas, such as those that make up most of my constituency. We all know that this is about educating the young, building viable businesses and providing remote healthcare into the future.

We should set an ambition of achieving a fully digitised, connected United Kingdom with a universal service of fibre to premise. That level of ambition will endow the British people with a technological edge. We should support communities to deliver that in every corner of these islands. It is time for the UK Government to really step up to the plate and to deliver for Scotland what the Scottish Government have consistently failed to deliver.