Peter Kyle Portrait The Secretary of State for Science, Innovation and Technology (Peter Kyle)
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I beg to move. That the Bill be now read a Second time.

The Government are using technology to grow the economy and create new jobs in order to empower citizens and deliver a smaller, smarter state, but none of that is possible without data. Successive Governments failed to set out the extraordinary opportunity that data presents. Our citizens have counted the cost in slower growth, fewer jobs and flatlining productivity; in communities that feel less safe because police officers are spending more time filling in forms and less time out on the streets, where we need them; in hospitals, where patients are left waiting longer for the care that they so desperately need; and when people queue up to register the death of a loved one, or struggle to rent new homes without the decades-old documents that they need to prove their identity. An outdated approach to data is holding Britain’s economy back. This Bill will take the brakes off, unleashing a new era of wealth and opportunity for all.

John Whittingdale Portrait Sir John Whittingdale (Maldon) (Con)
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The Secretary of State says that successive Governments failed to act, but is it not the case that this Bill is almost identical to the one that the last Conservative Government introduced, which very nearly made it on to the statute book?

Peter Kyle Portrait Peter Kyle
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I am grateful to the right hon. Gentleman for pointing that out. Indeed, a lot of this Bill is based on the one that his Government introduced. They called a general election, which halted it in its tracks. We offered to get that Bill through in wash-up, but that was turned down by the Government. We are here today to discuss a Bill that his Government could well have got through; of course, they had 14 years to do so. I am grateful to him for pointing that out, and for no doubt supporting a Bill for which he claims so much credit.

The smart data measures in the Bill could make switching energy suppliers as quick and easy as switching bank accounts. Consumers will be able to compare utility prices and find better deals, putting money in their pockets. Businesses will be forced to innovate and improve their services, too. Fast-growing firms will also benefit from the digital verification services that this Bill enables. Today, people spend months waiting to get paperwork sorted for a new job. By helping people to prove who they are without physical documents, we will cut the time it takes to get on the payroll, and give businesses the freedom to get on with growth.

One of the biggest barriers to growth is the appalling state of Britain’s crumbling infrastructure. Today, streets are being endlessly dug up and re-dug up by different firms repairing gas one year and water the next. At the same time, bigger infrastructure projects have stalled and fallen silent for years. By offering a complete and accurate picture of the underground infrastructure, the national underground asset register will strengthen Britain’s building bureaucracy. It will cut the time it takes for workers on site to get the data they need from six days to six seconds. That means that they will be able to get on with building the roads, railways and homes that Britain so desperately needs.

Today, a siloed approach to data is slowing the state down. Patients are put through the same tests again and again, and prescription errors mean that they get the wrong medication. This is simply unacceptable. The NHS has one of the deepest, most diverse datasets in the world, but the people who need that data cannot access it. By introducing mandatory information standards for all information technology suppliers, this Bill will ensure that information can flow safely, securely and seamlessly through the healthcare system.

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John Whittingdale Portrait Sir John Whittingdale (Maldon) (Con)
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It is a pleasure to follow the hon. Member for Scarborough and Whitby (Alison Hume), whose speech was absolutely spot on—I agreed with it completely.

It will not surprise the Government Front Benchers that I welcome the Bill. There are very few parts of it, if any, with which I disagree—perhaps because it bears an extraordinary similarity to the Data Protection and Digital Information Bill introduced by the previous Government, which I spent many happy hours taking through Committee and Report. As the Secretary of State pointed out, unfortunately that Bill fell as a result of the calling of the general election, and I share his regret that it was not possible to get it on to the statute book. That is another reason among many why I regret the calling of the general election at the time chosen by the previous Prime Minister.

Chris Bryant Portrait Chris Bryant
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The right hon. Gentleman refers to all the happy days he had, but I do not think that he really enjoyed the Report stage of the previous Bill. I think—nobody else will notice if he admits it here now—that he did not really like everything that was in the previous Government’s version of the Bill, and that he rather prefers our version.

John Whittingdale Portrait Sir John Whittingdale
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Although the hon. Gentleman and I had a robust but nevertheless amicable exchange on Report, it was in fact his colleague, the hon. Member for Barnsley South (Stephanie Peacock), who took that Bill through Committee. It was not until Report that the Conservative Government decided to add measures to the Bill—measures that I fully supported, of course, but which nevertheless made the task a little more difficult, as they resulted in a lack of agreement across the Chamber, which had previously pertained throughout the passage of the Bill. It is a pleasure to debate these matters again, and, indeed, to see not just the hon. Gentleman but some of the officials who laboured to take that Bill through Committee with me, and are now tasked with doing it all over again.

One point about the Bill that the Secretary of State did not refer to is that a lot of it seeks to improve the working of data protection law in this country and make data more accessible while safeguarding important privacy rights. However, the fact that we are able to make changes to improve our data protection laws is a consequence of Britain no longer being a member of the European Union—otherwise, we were trapped by the GDPR requirements. This is an example of where we can draft legislation to benefit people in this country and not have to accept top-down imposed legislation from Brussels—another reason why I was an enthusiastic supporter of the previous Bill.

One issue that featured a lot during the previous debate, and which I am slightly surprised has not been mentioned so far, is whether the changes made in the Bill would in any way jeopardise data adequacy recognition by the EU. [Interruption.] I am sorry; the hon. Member for Harpenden and Berkhamsted (Victoria Collins) did mention it, but the Secretary of State did not. Data adequacy is an important issue, and concern has been expressed outside the House that the Bill might put it at risk. We were very keen to ensure that that was not the case, and we worked closely—as I am sure the Minister continues to do—with the Information Commissioner, John Edwards, who has a lot of experience in this field, having previously overseen the data protection regime in New Zealand, which enjoys data adequacy but is not identical to GDPR. I am sure, given that this Bill is so similar, that there is no risk to data adequacy, which is of importance to many large firms.

The Bill covers a lot of other areas that we regarded as important and which have remained largely unchanged, such as the operation of the Information Commissioner’s Office, digital identification, the national underground asset register, the electronic use of the register of births and marriages, the extension of smart data use, automated decision making, and the retention of information where required by coroners after child deaths. All those areas were included in the previous Bill, and I am delighted that they are still there in this one.

Joe Robertson Portrait Joe Robertson (Isle of Wight East) (Con)
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If I may, I will take this opportunity to explore some of my right hon. Friend’s knowledge and expertise in this area. Will he comment on the balance in this Bill between safeguards on the one hand and freedom on the other? I would be interested in his thoughts.

John Whittingdale Portrait Sir John Whittingdale
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If my hon. Friend is referring to data protection, it is a careful balance. People are rightly concerned that their data is protected and that they should have privacy rights, and there are campaigning organisations out there that have examined the Bill and expressed concern. We were careful to ensure that the standards of data protection required were maintained, and I am sure this Government take the same view.

At the same time—this is where there are small differences between the previous Bill and this Government’s Bill—we were keen to ensure that data protection did not impose unnecessary burdens, particularly on small businesses. There were one or two areas where we were able to slightly relax the definitions and to reduce the burden on business, but this Government have taken a different view. They are relatively minor and relatively technical areas, but there are things such as the definition of “vexatious and excessive”, which was an issue that occupied a lot of discussion. The Government have now removed that and reverted to the previous definition, which we felt was unnecessarily burdensome. There is also the whole area of subject access requests that would occupy a huge amount of firms’ time in trying to respond to them. We felt there needed to be at least some safeguard to prevent those becoming, as we defined it, vexatious, so I regret the fact that the Government have not proceeded with that element.

However, those are relatively minor areas, and in large part the Bill is one that previously enjoyed cross-party consensus when it went through this Chamber in the last Parliament and that I suspect will continue to enjoy cross-party consensus as it moves into Committee in this Parliament. The Secretary of State is no longer with us, but I hasten to add that I am not volunteering to serve on the Public Bill Committee. Having previously endured many hours doing so, I do not particularly want to repeat that experience.

Perhaps in part because the Bill enjoys a lot of support across the House, there is inevitably a particular element about which there is real concern, and that is the area of copyright protection and artificial intelligence. It is worth saying that that was not originally in the Bill at all, and I congratulate Baroness Kidron, who managed to persuade the Clerks in the other place to allow her to move the amendments to insert it into the Bill, and it is now part of the Bill. I think those amendments are very important, and I very much welcome them.

The hon. Member for Bury North (Mr Frith) referred to the fact that the previous Government had not acted in this area, and he is right. The Conservatives did not act because we felt, and continue to feel, that the law on copyright is clear and does not need changing. This Government have proposed to change the law to bring in the text and data mining exception. That will create the opportunity for AI to take, scrape and ingest creative content, of the kind the hon. Member for Scarborough and Whitby mentioned, using an exception that the Government are bringing in. It was proposed under the last Government, but I can tell the House that the last Government rejected it precisely because we felt it would drive a coach and horses through copyright law and do real damage to the creative industries.

Sam Carling Portrait Sam Carling (North West Cambridgeshire) (Lab)
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The right hon. Gentleman’s speech is very helpful, and he is making some useful points. The shadow Minister would not give us any clarity about his party’s position on the opt-out mechanism, so could he help: what is the Opposition’s position on that? Do they support it—yes or no?

John Whittingdale Portrait Sir John Whittingdale
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I am very happy to address that. I am not on the Front Bench, but I will tell the hon. Member my view, which is very clear: I have profound reservations about the opt-out, which reverses the whole principle of copyright law. The owners of rights will have to go and say that they do not want to have their rights taken away from them, otherwise there is a right for others to use their content. I would prefer to see an opt-in or, in actual fact, a licensing method whereby rights holders could agree, if they wished to do so, that their content could be used.

Pete Wishart Portrait Pete Wishart
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If only the right hon. Gentleman were on the Conservative Front Bench on these issues, we would have a little bit of clarity, but he is absolutely spot on. There is no issue with copyright at the moment and no confusion about what is required in the law. All the Government are doing is trying to create some sort of smokescreen so that they can start to dismantle and water down our copyright regime. What does he think about those attempts, and will he join the rest of us in standing up for the copyright regime as it stands, where there is no question about its legality?

John Whittingdale Portrait Sir John Whittingdale
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I assure the hon. Gentleman that I have no wish to replace my hon. Friend the Member for Havant (Alan Mak), who is doing an excellent job. Nevertheless, the hon. Gentleman and I have been involved in discussions on copyright for many years, and I share his view. Indeed, I welcomed the debate that we had in this place just a couple of weeks ago on the creative industries, where a lot of these arguments were rehearsed, and the Minister helpfully agreed that there is no workable opt-out technology available.

The existing opt-out, which the European Union has suggested, simply does not work. On top of that, it is unenforceable. The Minister and the Secretary of State have suggested that they would not proceed unless a workable opt-out could be developed. It would be a first if it were. In any case, I am opposed to opt-out in principle, but it is at present practically impossible to introduce. I hear the Secretary of State talking about the technology companies working to bring a workable solution forward, but I hope that the Minister will again make clear that the Government will not proceed unless there is a viable, workable technological solution that allows rights holders to make clear that they do not wish to have their works used by artificial intelligence training models, and have that enforced.

Chris Bryant Portrait Chris Bryant
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I think it might be easier if I respond to that now. Yes, I completely and utterly agree with the right hon. Gentleman. That is our settled view. We want to get to a process where there is more licensing of content, and we have said that repeatedly. It is one of the aims of our consultation. He says that copyright does not need changing, but the amendments tabled by Baroness Kidron in the Lords do change copyright law. We will somehow have to square that circle at some point during the Bill’s progress.

John Whittingdale Portrait Sir John Whittingdale
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The amendments that Baroness Kidron tabled put in clear terms what we believe the law is already. A number of cases are going through, and the hon. Member for Scarborough and Whitby referred to one in America. That important judgment said that AI training did not constitute fair use. That was an American court, but previously we had been told that America was ahead in encouraging and promoting the use of this technology. It is reassuring that even in America, they recognise the importance of protecting creative works. A news publisher brought forward that case.

It is important that we recognise that creative industries in their broadest definition are affected by this issue, and the newspaper publishers are particularly anxious about the consequences. One of Baroness Kidron’s amendments, which is now in the Bill, emphasises the importance of transparency, and I know the Minister agrees with that, but it also requires companies to make clear, in meeting the transparency requirements, exactly what kind of activity the web crawlers are involved in.

Newspaper publishers depend upon search, and it is important that the search engines can find and flag up their content, because without that they will not get the audiences they need. That is a different exercise from training for ingestion and AI-created content. If the Bill is about requiring transparency, the amendments passed in the Lords seek to achieve that, and I hope they will be preserved, because it is important that we have that transparency, not just as a general principle but in detail in that way.

Two weeks ago, the Minister gave some welcome assurances, and he has done so again this afternoon. We need to continue the debate. As he said, if the Government proceed, legislation will be required in due course, which we will obviously want to examine carefully.

A view has been expressed on behalf of the creative industries and publishers that while the Minister and other members of the Government have been open to discussions, the Secretary of State has not met them, so I was pleased to hear him earlier give the assurance that he would meet them, because this is of such vital importance to them.

As my hon. Friend the Member for Havant said, there is a lack of any economic impact assessment on the proposals in the consultation paper. I hope that the Government will produce such an economic impact assessment.

This is a subject that was not intended to be included in the Bill—I welcome the fact that it is—but it is obviously one that we will debate again many times.

Chris Bryant Portrait Chris Bryant
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In Committee.

John Whittingdale Portrait Sir John Whittingdale
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Perhaps outside Committee as well. I will rely on my colleagues who serve on the Committee to carry out the work at that point as well. I thank the Minister for his willingness to engage and assure him that we will continue to do so.

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Pete Wishart Portrait Pete Wishart (Perth and Kinross-shire) (SNP)
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It is an absolute pleasure to follow the hon. Member for Stirling and Strathallan (Chris Kane). He was spot on in reminding us that data has always existed in various forms throughout the centuries, whether in volumes or in little things that we can plug into a computer. The only difference now is that all that data is scraped and ingested into huge machines, which regurgitate it into some form that only they will decide. The hon. Gentleman was also spot on in reminding us about his work at Central FM, a very fine radio station. This hon. Member is always available for interviews at any time that Central FM comes a-calling.

This is an alright Bill. It is good. It is quite fine. It is reasonable in its approach and intent. It is a good shot at trying to redefine our data regulation laws. It will do a good job of ensuring that our public services are more aligned and mainstream, and that access is available to all our constituents. However, it is a much better Bill because of some of the amendments made in the House of Lords. The amendments that were added at the later stages went further on child protection in online data and looked into deepfakes, which was particularly helpful, and I congratulate our colleagues down the corridor on bringing them forward. It is a much better Bill because of the amendments that were delivered by Baroness Kidron on copyright and transparency. They significantly improved the Bill to make it something worth defending and protecting. I hope that that will be the main mission as it continues to go through this House.

You will know, Madam Deputy Speaker, that it is unusual for me to congratulate our be-ermined unelected friends down the corridor, but this oiky Nat will doff his cap to their lords, their ladies, their barons and their earls, because they have done a good job at shaping the Bill. It is certainly a much better Bill than it was on Second Reading down the corridor.

I have a few issues with the Bill. There are concerns about the security of some of this data. I am particularly worried about some of the relationships within the EU-UK partnership, and I just hope that whatever is proposed in the Bill does not drag us further away from the mainstream when it comes to the European Union. The right hon. Member for Maldon (Sir John Whittingdale) and I agree about most things when it comes to the creative sector, but we do not agree about the European Union and the benefits of this country leaving it. I am a passionate remainer, and I hope that at some point I will be able to take our country back into the European Union, as a proud member of the Scottish National party; my intention and ambition is that we go back into that fantastic union of nations that has done so much to enrich our culture and our lives.

John Whittingdale Portrait Sir John Whittingdale
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The hon. Gentleman is right that we do not agree on this particular issue. Of course, were we to rejoin the EU, we would then be bound by its legislation on this very issue, which includes the opt-out.

Pete Wishart Portrait Pete Wishart
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This is where the right hon. Gentleman and I do profoundly disagree. I look at this arrangement and the partnership across the European Union as a positive—it is a good thing. We were major contributors to some of the EU directives put forward on copyright and artificial intelligence. They miss us, and we miss them; we were just so much better when we were in partnership. I think we will just have to respectfully agree to disagree as we go forward on this particular issue.