Telecommunications (Security) Bill

Jim Shannon Excerpts

2nd reading & 2nd reading: House of Commons & Carry-over motion & Carry-over motion: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution & Ways and Means resolution: House of Commons
Monday 30th November 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to follow the right hon. Member for Bournemouth East (Mr Ellwood), with his vast knowledge, and other right hon. and hon. Members who have spoken. I thank them for their speeches. I am pleased to have the opportunity to speak on this issue. I spoke about it back in March, when I stated my fear of reliance on Huawei.

Let me quote what I said at that time:

“I am only one of 650 Members of this House, and I absolutely believe in the tenets of democracy, but I will not stay silent. I do not believe that what the Government are doing is in the best security interests of this nation, and if steps can be taken to pare it back, those steps must be taken. We have been known as security giants, and I do not like the idea that we are now standing on the shoulders of Chinese giants. We have stood alone, and can do so again, but it is always best that we stand with our allies. The Chinese may hopefully be strong trading partners post Brexit”—

we will wait to see whether or not that will be the case—

“but by no stretch of the imagination can they ever be considered our allies; their human rights abuses cannot be ignored. This issue is concerning, and we must not leave it here.”—[Official Report, 4 March 2020; Vol. 672, c. 288WH.]

The right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) referred to the Uyghur Muslims and the human rights abuses they are going through—the fact that their right to worship has been abused and that they are subjected to violence, both physical and psychological. As others have mentioned, there is also the question as to whether they are involved in some of the slave labour in Huawei and what it does. We have heard and read the stories in the press about Volkswagen, which refused even to acknowledge the fact that perhaps some Uyghur Muslims had been being used as slave labour. I chair the all-party group on international freedom of religion or belief, and I feel strongly about this issue. It is close to my heart, so I wanted to speak out. I know it is not directly what this Bill is about, but we have those concerns on human rights issues for the Uyghur Muslims, the Christians and the Falun Gong. We know all about the issue of the forced organ harnessing that takes place, and all those three religious groups are part of that.

So I am thankful for the steps taken by the Prime Minister. We all knew that when these steps were taken, there would be the detrimental knock-on effect of narrowing the UK telecommunications market and possibly driving up infrastructure costs, but I still believe this to have been the right decision. I am thankful for the steps that the Minister announced today, and for the support there seems to be across this Chamber for them. This is about building supply chain resilience, with support available for supporting incumbent suppliers. The security of this nation is undoubtedly a red-line issue, and we must protect it at all costs. Everyone has said that, and we mean it, and we want to see that being delivered though this Bill.

Clauses 1 to 14 introduce a stronger telecoms security framework. The Bill amends the Communications Act 2003 by placing strengthened telecoms security duties on public telecoms providers. I am thankful that the Bill purports to enable more specific security requirements to be set out in secondary legislation, underpinned by the codes of practice providing guidance on the security measures to be taken to meet those requirements. I am given to understand that the Bill gives the telecoms regulator, Ofcom, powers to monitor and enforce industry compliance with the duties and specific security requirements. placing new obligations on public telecoms providers to share information with Ofcom that is necessary to assess the security of their networks.

The UK is part of the Five Eyes, along with Canada, Australia, New Zealand and the USA. We cannot ignore that influence, and the sanctions that the US imposed on Huawei. The US first placed it on the entity list on 16 May 2019, citing national security concerns. This sanctioned the company’s access to important US technology for design and production use. While acknowledging the potential impacts this might have on the reliability of Huawei’s products, the Government, on advice of the National Cyber Security Centre, determined this to be a manageable risk. The restrictions to network access imposed on high-risk vendors in January 2020, alongside pre-existing oversight measures, were considered sufficient mitigation strategies.

So the USA clearly saw what the problems and risks were, and took a stand early on, and I am pleased that we are now doing the same. Chinese influence, across the whole of the world, always has a condition, as we see in many countries in Africa and further afield where it is trying to increase its influence. It has an insatiable demand for every country’s resources, but along with that come the conditions and the influence they have on digital and cyber-security. I am deeply concerned about that, as are others.

It is my belief that while not perfect, this Bill puts in place an emphasis on our nation’s cyber-security that is essential.

During the lockdown, our increasing reliance on the internet has been made abundantly clear. It is phenomenal that where we have been precluded from meeting to worship, our pastors and praise teams have been able to livestream church services, it has been wonderful to carry out certain MP duties online where applicable, and it has been a life-saver for some businesses to carry on their work at home. This has highlighted the reach of the internet into our lives and the absolutely essential nature of its being secure from cyber warfare and attacks. The Government have said that such an attack is highly likely and would have a high impact. I had a discussion with a gentleman from Northern Ireland who is involved in the Royal Air Force, and he said that the greatest threat that it felt was cyber warfare. This Bill will be a very strong way of addressing that.

We can all sit in this place and say that something needs greater funding. Every aspect of our budget could do with enhanced funding. My grandchildren—indeed, probably my great-grandchildren—will be paying off the coronavirus outgoings their entire lives. We need to take what we have and do the best we can with it. My belief is that on this one, the Government have taken the steps to address my grave security concerns, and while the Bill is not all I would like to see, as others have said, I find myself much more content today than I was in this place in March of this year.

Telecommunications (Security) Bill

Jim Shannon Excerpts

Report stage & 3rd reading
Tuesday 25th May 2021 Commons Chamber

[Ms Nusrat Ghani (Wealden) (Con)]

It is an honour to contribute to this measured debate, Madam Deputy Speaker. I am fearful of lowering the tone, but I have been speaking to the Minister—I congratulate him on the amount of communication he has had with us Back Benchers about our concerns—and when I was thinking about how best I could sum up our dialogue, I recalled that Ronald Reagan once said:

“The…most terrifying words in the English language are: I’m from the Government, and I’m here to help.”

I think that, for a Minister, the most terrifying words are: “I’m a Back Bencher and I really am just here to help”. So without our removing the momentum, we really are here to help.

First, I need to put on record my thanks to my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) for tabling the amendment, which, unfortunately, was not selected today. I also put on record my support for what my right hon. Friend the Member for New Forest East (Dr Lewis) has proposed, with the support and expertise that he can bring to the debate and legislation, and I hope that the Minister can reflect on both those opportunities down the line. There is much to welcome in the Bill, but I fear that technology can sometimes move faster than we can legislate in this country. I want to touch on two issues: one is national security and the other is resilience and diversifying our supply chain.

I will start by being very helpful as a Back Bencher. I know that the Minister may have cast his eyes on a report that I recently produced for NATO. I sit on the Science and Technology Committee and I was tasked to put together a report on science and technology threats, looking particularly at east Asia. In the report, there is a puff box that he may want to reflect on; it talks about South Korea and the amount of work that it has done in innovating and developing new technology so that it is truly resilient in its national 5G infrastructure. I believe that 85 cities will have coverage by the end of 2021, and they are not reliant on any external Government to provide them with that service, so I urge him to go away and look at what South Korea is doing and possibly see how we can become more resilient in this country.

I want to raise the subject of resilience and security because I sit on the Business, Energy and Industrial Strategy Committee and we have been undertaking a report on links back to Xinjiang. However, companies also gave evidence to us that should cause some concern for the Minister, and with regard to this piece of legislation. This is basically about companies headquartered in China that have access to data we are using or manipulating, and to algorithms we are creating here in the UK.

In particular, I want to reflect on the evidence given to the Select Committee from TikTok. We invited TikTok to come in and give evidence about its algorithms and whether it is distorting them to stop information about Xinjiang and Uyghur being out on the platform. Unfortunately, the more we dug into TikTok, the more complex and concerning it got for us.

TikTok is a media company and a platform. Most kids will have access to it, and most people here may have access to it as well. However, it has a very complex ownership structure, which is why it is important that it is reflected somewhere in the Telecommunications (Security) Bill. It is important because TikTok is a subsidiary of a global parent company, ByteDance Ltd, which is incorporated in the Cayman Islands, but there is a China-based subsidiary of the same global parent company called ByteDance (HK) Ltd.

The reason why this should be of some concern is that when we took evidence from TikTok UK’s branch, we were told that ByteDance could in no way have access to UK data and that the two things were completely separate. However, the problem is that we can legislate in this country for what we want to do to keep our country and our people’s data safe, but when a company we are working with has headquarters in China, it has to abide by completely separate sets of rules and regulations, so we end up in a two-tier system.

Let me just reflect on what a company such as ByteDance has to adhere to. I am talking about China’s National Intelligence Law 2017. My right hon. Friend the Member for Chingford and Woodford Green spoke about article 9, and I want to reflect on article 7. It states, and this has been translated into English so it may not be perfect:

“Any organization or citizen shall, in accordance with the law”—

the Chinese National Intelligence Law 2017—

“support, provide assistance and cooperate in national intelligence work, and guard the secrecy of any national intelligence work they are aware of.”

Fundamentally, companies have to hand over data when they are asked, but when they are asked by another Government—say, our Government—they have to deny that they are doing it. I am concerned about how robust our legislation is today or how robust our legislation will be going forward if companies are abiding by separate sets of intelligence laws based in China.

On a similar theme, let us take a closer look at Hikvision in particular. There was a very good recent report by Reuters, which basically states that half of London councils are using Hikvision, even though Hikvision is banned in the United States. Last week, Italian media reported that Hikvision equipment in the country was “communicating with servers” in China despite being on a supposedly closed network. I am not quite sure what “communicating with servers” means, but for me alarm bells are ringing.

The points I want to land with the Minister are: how robust is the legislation we have in place for today, let alone tomorrow, and how can we ensure that the processes to legislate in this country keep pace with the threats we are facing? I suppose the fundamental point is that China has its own National Intelligence Law, which completely contradicts what we are trying to do here in the UK. Does the Minister have any thoughts about how we can ensure that our security is not undermined by China’s National Intelligence Law? What guarantees can the Government give to constantly look at, review and update this, and also to hold to account the companies we may be anxious about?

We seem to be setting up a two-tier system: one for us in the west with the countries we work with, and a completely separate system for China and the companies it wishes to work with. I fear that, unless we put down a marker, we are going to lose out to a country such as China, and I hope that the Minister can comment on that when he comes to the Dispatch Box at the end of the debate.

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate and to follow all the right hon. and hon. Members who have made contributions.

First, new clause 1 is designed to ensure that there is an obligation on Ofcom, in legislation, to report on the adequacy of its resources and assess the adequacy of the measures taken annually by telecommunications providers to comply with their duty to take the necessary security measures. The hon. Member for Wealden (Ms Ghani) referred to security, and I will speak briefly about that shortly. It also requires Ofcom to assess future areas of security risk based on its interrogation of network providers’ asset registries. That does seem to me to be standard, but it is essential that there is regulation and control of these providers, on which so many of us—indeed, probably all of us—rely so heavily. The Minister may well believe that this obligation is already included in the Government’s Bill, and if that is the case, perhaps he will confirm that that is the position. If that is the case, I am sure that that will highlighted subsequently.

I have seen, during the privatisation of water services and other public bodies, that private companies have little desire to provide any more information than is legally required. They just give us the basics of what they want us to know. I believe that there is an obligation for Ofcom to actively regulate, and to do this we must provide adequate funding. To make this happen, is it a funding issue or can we legislate to ensure that they tell us all we need to know? I will consider the words of the Minister on this imperative regulatory function.

I want to echo the concerns of the hon. Member for Wealden, who comprehensively addressed the issues that concern us all. She referred to companies that have their headquarters in China and how that impacts on us here in the United Kingdom. Our duty in this House is to our citizens: to the citizens of Strangford, to the citizens of Wealden and to everyone across the whole of the United Kingdom of Great Britain and Northern Ireland, and we probably all seek assurances on these matters. Again I look to the Minister to do that in his summing up.

New clause 2 relates to the provision of information to the Intelligence and Security Committee. Does the Minister agree that it is imperative that the appropriate Committees have the right information on security matters? I am a firm believer in the need for information share. It has always been my policy to ensure that those around me in my political life, my social life and my personal life are aware of all the issues that concern them. It is also important that MPs have all the information on board. I am also a firm believer in the chain of command. This may well be due to years of part-time service in uniform; I spent 14 years as a part-time soldier. It is really important that the chain of command is in place. However, there are also times when it is in the interests of the nation that not all is revealed, and there will be a reason for some things being classified as top level only. I understand that; I often ask the police about things that have happened back home, and I say, “Don’t tell me anything I don’t need to know, but if you can tell me, and I can tell others, let me know that.”

Our job as parliamentarians is to scrutinise the Government, to hold Ministers to account and to strive for the good of the nation, and I ask the Minister to clarify why the Government do not feel that new clause 2 is necessary. Does he, for instance, believe that this is already accounted for? If it is, perhaps he could tell us the position on that. I would like to understand the rationale behind withholding information from a regulated Committee and what constitutes high-level information that should be withheld. Again I look to the Minister, as I often do in debates in this House, for a response to satisfy me that new clause 2 is not needed.

My final point relates to amendment 1 to clause 14, which proposes:

“The Secretary of State must, in the process of carrying out reviews and drafting subsequent reports, consult the appropriate ministers from the devolved governments.”

As a Member of Parliament, I have always wished to know what the devolved Administrations are doing. In my case, that relates to the Northern Ireland Assembly. When I saw the amendments and new clauses, I assumed that this provision would have been included as a matter of course. Surely it is a matter of the greatest importance—especially in Northern Ireland, which is fast becoming the capital of Europe’s cyber- security—that the devolved Administrations, and in this case the Northern Ireland Assembly, should have a full understanding of any emerging cases. I say with great respect to everyone else in this Chamber that the cyber sector in Northern Ireland is leaps and bounds ahead of other parts of the United Kingdom. Maybe only the south-east of England can match our level of advancement. We have incredible skills and staff available in Northern Ireland, and the cyber-security sector has grown greatly. So can the Minister reference the mechanism by which this information share can take place without any amendment? Can the Minister confirm that the Northern Ireland Assembly will have a key role to play in this, and tell us how that will work within the legislation before us today?

[Sir John Hayes (South Holland and The Deepings) (Con)]

Chillingly, the head of military intelligence recently concluded that the difference between being at war and being at peace is becoming increasingly blurred. In short, Britain is under perpetual attack.

--- Later in debate ---

[Jim Shannon]

I asked a question to do with the Northern Ireland Assembly and how cyber-security in Northern Ireland will be protected. Can we have an assurance on the Floor of the House today and through Hansard that that will happen?

[Matt Warman]

I will come on to the devolved aspects in amendment 1 in a moment, but it is of course vital that we continue the collaborative relationship with the Northern Ireland Executive and with the Welsh and the Scottish Governments as well.

The Bill places security requirements on individual operators. They are hugely important, but they are not diversification requirements on the Government’s national scale. Defining diversification in legislation would be limiting in a hugely rapidly evolving market. I know that the hon. Member for Newcastle upon Tyne Central understands the need for agility, and putting what she proposes into legislation would run counter to that ambition.

On the devolved Administrations, amendment 1 would require the Secretary of State to consult Ministers from the devolved Governments when reviewing the impact and effectiveness of clauses 1 to 13. As the hon. Member for Aberdeen South (Stephen Flynn) noted, telecoms is a reserved matter under each of the devolution settlements. I say that, however, in the full knowledge that a constructive and close working relationship with each of the devolved Governments is hugely important, be it in Project Gigabit, in the shared rural network, or indeed in matters such as this. I look forward to that collaboration continuing; it will drive forward our connectivity.

I turn briefly to the amendments that were not selected. My right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) has spoken passionately about these matters, both privately and publicly. I do not want to go into a huge amount of detail on amendments that were not selected, but I simply say that the actions the Government are taking in the Bill speak powerfully for themselves.

On the specific matter of issuing designation notices to vendors headquartered in other countries, it is important to consider not just whether the kinds of laws that my right hon. Friend mentions exist, but how the Government in question intend to use them. A friendly democracy may, as indeed many do, have laws that would enable it to yield information and data from companies headquartered within their territory. The conduct of such a Government, and our relationship with them, may reassure us that they would not use those powers to do harm to the UK, but there are other cases where Governments that have these laws have acted contrary to the national interest of the UK in the past. As we set out in the illustrative notice for Huawei, there is a law in China that enables the Chinese Government to collect information from companies headquartered within its territory. As the Foreign Secretary has stated, we know that the Chinese state has in the past used its power to undertake malicious cyber-activity. The designation notice that I mentioned demonstrates how the Government could take those sorts of laws into account when exercising the powers that are already in the Bill.

I thank my hon. Friend the Member for Wealden (Ms Ghani) for her work on the NATO Science and Technology Organisation. We very much welcome her preliminary draft report. I would like to express the Government’s commitment to deepening our co-operation with partner nations such as Japan and the Republic of Korea.

I thank all hon. Members on the Government Benches, and indeed on the Opposition Benches, for their constructive engagement throughout this debate. This is an important Bill that enjoys strong cross-party support, in the main. The sooner we can pass it, the sooner we can set about the crucial work of ensuring that our public telecoms networks are secure and resilient. I commend the Bill to the House.

Telecommunications (Security) Bill

Jim Shannon Excerpts

Consideration of Lords amendments
Monday 8th November 2021 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

I am extremely grateful for your pithiness.

[Jim Shannon (Strangford) (DUP)]

The Bill seeks to enhance security provisions that all Members of this House must recognise are much needed. Clear consensus has been achieved—it has been hard-fought—that cyber-attacks on the telecommunications infrastructure pose a significant threat to national security and that legislation is needed to strengthen the security framework. The Government and the Minister are endeavouring to protect the state and its citizens. This is an absolutely necessary law that will make a clear improvement, but more can and must happen.

I believe that the Bill is needed not only to safeguard this great nation from cyber-terrorism, both domestic and external, but to ensure that we can continue to attract jobs and investment from those who seek to utilise the skills and experience of our workforce. As I have said numerous times in this House, Northern Ireland is fast becoming the cyber-security centre of the world, with companies from Europe, America and elsewhere making use of our low business rates and our high skillset. To continue to attract that investment and those jobs, we must really be on top of our game; I believe that the Bill will play an important part in that. Could the Minister give some indication of her discussions with Ministers in the Department for Business, Energy and Industrial Strategy on the Bill’s economic benefits for all regions, particularly Northern Ireland?

We all want to secure jobs, but we cannot allow any and all companies to have access to our networks. I believe that the protections in the Bill are imperative against those who may unscrupulously seek to carry out espionage on either a corporate or a national security level. Along with many others, I had concerns about the Huawei deal and its impact on the essential Five Eyes agreement; I was pleased by the decision that the Government ultimately made for all our security. There is a lesson to be learned and I trust that we have all learned it.

I agree that it is imperative that a clear and precise code of conduct is permitted, so I support the Government’s further amendment to ensure that a code of conduct is encompassing and far-reaching. That is right and proper, and I fully support it.

[Andrew Rosindell (Romford) (Con)]

I rise to speak in favour of Lords amendment 5, which was tabled by Lord Alton and Lord Blencathra.

The Five Eyes alliance is one of the most important strategic alliances that the UK shares. It is one of the world’s most comprehensive intelligence-sharing alliances, bringing together nations that have a strong bond forged through our shared history and values. The Government have recently taken a great stride towards strengthening our relationship with two of our Five Eyes partners, Australia and the United States, through the AUKUS agreement. I believe that Lords amendment 5 would further strengthen our ties with those great allies and ensure that we look to the future of the security and resilience of our telecommunications network.

Telecommunications networks have become the foundation of our economy, allowing business, Government and communities to connect and share information. This ability to connect and communicate is now a fundamental part of the way in which our society operates. Only last year, however, the Government were still considering using the services of a Chinese company, Huawei, to manage the introduction of 5G technology in our country. That was deeply worrying, owing to the complete subservience of the Chinese tech companies to the Chinese Communist party. The unholy alliance of these so-called private companies and an authoritarian Government who have no respect for basic values such as privacy has allowed the CCP to increase internal surveillance to a level never seen before. We would be foolish to think that the CCP would not have used its access to the information accumulated by Huawei through its involvement in our 5G roll-out, given the immense levels of intelligence that it would have been able to gain from that.

This debacle of Huawei shows that we must be extremely careful in protecting the security of our vital infrastructure. Letting companies that are so intertwined with a malign Government manage the implementation of our telecommunications systems would be no less than an act of national self-harm. If one of our close strategic allies makes the decision to ban a telecommunications company from operating within its borders, it will have a good reason for doing so. Taking the time to consider the rationale for such decisions will cost us little, whereas I worry that not doing so could be catastrophic for our national security. I hope that this House will approve amendment 5, as it will send a clear message that technology companies that work against our national interest will not be allowed to operate in the United Kingdom. I hope that the Minister will reconsider the Government’s position.