Three and Vodafone: Potential Merger

Debate between Julian Lewis and Chris Loder

Thursday 14th December 2023 Commons Chamber

[Chris Loder]

I thank the hon. Gentleman for his kind intervention. The right hon. Member for Birmingham, Hodge Hill made a lot of those points, along with my right hon. Friend the Member for New Forest East (Sir Julian Lewis), and I agreed with them earlier in my speech. This area needs much greater scrutiny. I remember not long after first coming to this House a few years ago, we had considerable concern about the behaviour of companies that was taking place, or could take place, that would put our national security at risk. That is why I support the comments made earlier by both right hon. Gentlemen.

[Sir Julian Lewis]

On that point, I recall that in 2021, while the National Security and Investment Bill was going through the House, the Government repeatedly said from the Dispatch Box that in any conflict between economic interest and national security their policy was that national security would come first. That was the whole point of bringing in the legislation. Now it appears that there is even a question mark on whether the structures set up in the legislation will examine this proposed questionable deal, let alone allow it to be effectively scrutinised by Parliament once they have done that examination.

[Chris Loder]

I thank my right hon. Friend for his intervention. He makes a very valid point. I recall the debates we had in the House several years ago and I think they were very meaningful. I hope that my right hon. Friend the Minister will respond to some of the genuine concerns that a number of us in this House have.

In its first line, the Vodafone and Three brief states that the current UK telecoms market—their own industry—is dysfunctional, and that consolidation is needed to remedy that. I regret to say to the House that, having gone through that and some of the excellent briefings received from other organisations, I am not convinced that the merger is the right thing to do. A number of points have been made on national security, competition and the consumer that indicate to me that it is not necessarily in the interests of the country or the consumer. The brief confirms that, talking about billions of pounds—or euros, on the website—which appear to be the only thing they are interested in. It is of huge concern to me that we are going from four operators to three, given the situation we face. I hope my right hon. Friend the Minister will consider what action to take so that the regulator not only has proper teeth to sort out the issues I have mentioned but that in any future decisions genuine consideration is given to whether a potential merger is in the interests of the country and our constituents. I am afraid that at the moment I am not convinced that it is the right thing to do.