Digital Economy Bill

George Howarth Excerpts

3rd reading: House of Commons & Legislative Grand Committee: House of Commons & Programme motion No. 3: House of Commons & Report stage: House of Commons
Monday 28th November 2016 Commons Chamber

[Mr George Howarth (Knowsley) (Lab)]

I am grateful, Madam Deputy Speaker, and I shall try to comply with your instructions. It is a great pleasure to follow the right hon. Member for Basingstoke (Mrs Miller), who made a powerful case for her amendments. She certainly has my support.

I shall try to be brief as I talk to a narrow and esoteric part of the Bill. Virgin Media has a workplace in my constituency that employs 250 people. The company has a particular concern which I shall take the liberty of connecting to new clause 27, because it is about the position before that measure could take effect. I am not arguing against new clause 27, which would provide individuals with the option of a voucher scheme that would empower them to take up an alternative solution. It has been tabled on the presumption that most individuals would be likely to choose the standard universal service order offering.

My argument is that in order for that proposal to be successful, there needs to be coverage in the first place to enable people to choose one option or the other. There are a number of obstacles in the way of that happening, and the Bill does not resolve the problem. Virgin Media argues that communications providers should, in effect, be treated the same as utility companies when it comes to being granted access rights or wayleaves from landowners to deploy their infrastructure on their land. The Government talk of broadband as a fourth utility, which generally is the case, but the code reform in the Bill is, in the words of Virgin Media, “a halfway house”.

Under the reforms as currently envisaged, broadband companies would face three drawbacks that water companies do not face and, as a result, higher deployment costs, which I shall say more about in a moment. The first drawback is that communications operators have to pay a rent for accessing land, whereas water companies do not. Instead, they have only to compensate landowners for any loss of value. Secondly, water companies have a right to net off any compensation that they pay with any increase in the value of the land resulting from the fact that sewerage is in place. Communications operators do not have that right, although in some cases they might seem to be carrying sewage of a different kind. Thirdly, water companies notify landowners of their intention to deploy by giving 42 days’ notice, whereas communications operators have to negotiate access with landowners who often have no particular incentive to grant it, which can cause huge delays.

[Rob Marris]

I have great sympathy with what my right hon. Friend is saying. We talk glibly about access to telephony being almost a human right in our country. Obviously we need water to live, and having telephony is not a physiological necessity, but in modern life telephony is a necessity. Some 40% of the Bill is contained in schedule 1, which runs to 60 pages and deals with issues relating to that raised by my right hon. Friend. Does he agree that there is a missed opportunity in schedule 1 of dealing with the particular issue that he raises?

[Mr Howarth]

I am grateful to my hon. Friend for pointing that out. Earlier today I waded through schedule 1, after which I was no wiser about its relevance to my argument. He, as a Member with a reputation for having an eye for the fine detail of legislation, will have spotted that in rather less time than it took me.

According to Virgin Media, it costs a communications service provider—Virgin Media or any other—150% more to put in infrastructure than it costs a water company, and 66% more than it costs an electricity company. I do not want to steal the thunder of the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr), although I condemn him roundly for not using new clause 27 as an opportunity to resolve the problem—that is not a criticism, really—but I ask the Minister to consider this problem before the Bill gets to the House of Lords. I have a handy amendment available if he wants one, but if he does not, I shall try to persuade somebody in another place to table it so that the issue can be more thoroughly debated there.

[Claire Perry]

As the House knows, I welcomed part 3 of the Bill on Second Reading, but I did raise, as did many other right hon. and hon. Members, the question of enforcement. We considered the possibility of internet service providers being asked to block sites that disregarded the Government’s requirement for age verification, and I tabled a series of amendments on that point in Committee. I disagree with the hon. Member for Cardiff West (Kevin Brennan) because I think that Ministers absolutely were in listening mode about a manifesto commitment that they were clearly keen to deliver. Against that backdrop, I am delighted to speak on Report by welcoming new clause 28 and Government amendments 35 to 42, which address this critical concern.

The Government had argued for rather a long time that it was disproportionate to make provision for statutory IP blocking because that had been dealt with on a voluntary basis for child pornography—we are all aware of the wonderful work done by the Internet Watch Foundation—and with reference to terrorist material. There was perhaps a hope that internet service providers would voluntarily get involved in blocking sites in the absence of age verification. Many right hon. and hon. Members campaigned for years for the voluntary introduction of family-friendly filters by internet service providers. We have led the world by working across industry and across the Government to produce a sensible set of provisions. We now have online filters that are introduced—in some cases automatically—by ISPs and others on a voluntary basis, and they seem to be working well.

There were, however, significant problems in assuming that ISPs would operate voluntarily. It was not just me and other colleagues in the House who were concerned. Bodies such as Christian Action Research and Education, the Children’s Charities Coalition for Internet Safety, the NSPCC, the British Board of Film Classification, which is now the regulator, and the Digital Policy Alliance were concerned that this sensible provision for age verification would not stick unless there was a more robust enforcement regime.

I am delighted that new clause 1, which I tabled, has been co-signed by 34 colleagues from seven political parties. That demonstrates that although we might like to stand up and shout at each other, our best work is done when we work together on such vital issues. It is a testament to the power of this place that we can work together so effectively to get this done. I know that this is a difficult argument; we have only to look at some of our Twitter feeds to see that. I am no longer on Twitter, but we know from other parts of the internet how difficult these conversations are because they go right to the heart of issues surrounding the regulation of the internet, which grew up, very properly, in a regulation-free environment, and in many respects that environment contributed to its growth and its glory.

Are we asking Governments and companies to restrict legal material for adults? I would argue strongly that the new clause is not about censorship or the restriction of legal access for adults; it is about proving that those who are consuming the material are indeed over 18. The new clause simply puts in place the sort of Government regulation and advice, and corporate socially responsible behaviour, that has been seen in many other industries. Example of that include the watershed in broadcasting, the fact that adult content often sits behind PINs on online media, and restrictions on what children can buy on the high street.

There is also a sense that the argument in relation to child sex abuse images and terrorist material is really not relevant. There is a strong global consensus that images or movie materials relating to neither of those things should be tolerated, so there is no need for statutory compulsion. However, the sites we are talking about, which offer material defined as pornographic, are quite different, because they provide a product that it is generally entirely legal for adults to access, and in many cases entirely reasonable, as there is no sense in which this is a kind of anti-pornography crusade. In that context, it is completely unsurprising that the ISPs made it clear they would not block pornographic sites without statutorily defined age-verification checks. Indeed, in evidence given on 25 October to the Communications Committee in the other place, the director of policy at Sky said of IP blocking under part 3 of the Bill:

“If there is a desire for ISPs to be blocking access to those sites, then legislation is required…If you want ISPs to block, I think they will struggle to do so, unless they are compelled to, and not because they do not want to but because they would probably be breaking the law.”

Indeed, Ofcom gave the Committee a similar message a week later, saying:

“If ISPs were to take any action blocking non-compliant sites, they would do so on a voluntary basis…I think you…have heard from ISPs about the legal difficulties they…would face if they were to undertake voluntary blocking…it would raise issues in relation to net neutrality.”

The second point, which has been widely raised among colleagues, is that there is overwhelming support among the majority of the British public for introducing these age-verification measures robustly. Eight out of 10 people absolutely support this very good manifesto commitment and want it to work. Indeed, the BBFC, which the Minister has chosen to be the regulator—I think all of us absolutely support it as a trusted brand in the space; it is not me or anyone else deciding what is over-18 material, because that will be based on the BBFC’s tried and tested guidelines—said itself that it felt that the regulator needed this power if it was effectively to carry out its work.