Kevin Hollinrake
Main Page: Kevin Hollinrake (Conservative - Thirsk and Malton)(9 years, 3 months ago)
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Kevin Hollinrake (Thirsk and Malton) (Con)
Thank you, Mr Betts, for giving me the opportunity to speak in the debate. I congratulate my hon. Friend the Member for Tiverton and Honiton (Neil Parish) on securing it. One of our roles as parliamentarians must be to create a level playing field, so that businesses can compete wherever they are situated. I give credit to the Government and to the Minister, because we have seen huge improvements. I am referring to the £1.7 billion of investment, the target of 95% of people getting superfast broadband by 2017 and the fact that we are one of the leading nations in the European Union for broadband access.
However, the issue is not just what we are spending, but where. The key question is whether we have a level playing field. Some 5% do not get good access; they have poor or absent broadband and mobile phone coverage. There is the issue of rural areas gaining access to schemes such as the £3,000 broadband connection voucher scheme, which was aimed only at cities.
As we have heard, broadband is now an essential service. The Institute of Directors names it as its No. 1 priority for businesses. Rural Action Yorkshire says that it is now a “necessity” and that poor mobile coverage and slow broadband make it nearly impossible to run a business. Many businesses in my constituency are struggling to compete. Businesses used to compete just locally, but now businesses compete nationally and internationally. I recently visited a Michelin-starred restaurant in my constituency that is competing against other Michelin-starred restaurants in other parts of the country. If people are sat waiting to be able to book a client in online and the screen will not change, they are losing business. Other companies selling goods online are competing against businesses internationally.
We want to attract great businesses such as architects and graphic designers, but they cannot operate in rural areas with slow broadband, which means that they will relocate out of our areas. They will move to urban areas or places where they will get faster broadband. It is not a level playing field, and that is contributing to a depopulation of young people and businesses, which hampers job creation and investment.
A report by the National Farmers Union recently stated that 40% of farmers are without access to broadband and 90% have no reliable service. Despite that, we expect them to fill in forms, use the common agricultural policy information service, complete VAT returns and manage vehicle tax and animal passports online. North Yorkshire County Council recently announced that its third-stage investment in broadband would still mean that some isolated areas would not get access to high-speed broadband, so those businesses have no prospect of a solution in the foreseeable future.
The position is similar for mobile phone coverage. Yes, there have been improvements, and we are delighted to hear of the £5 billion investment in new masts in our major networks around the UK. On the ground, however, we see little apparent improvement in access to mobile phone coverage.
How do we help rural businesses on to that level playing field? There are solutions, of course. Point-to-point wireless is an effective solution. Fixed-line to wireless and back to fixed-line is another. I am grateful to the Minister for agreeing to meet in October one of my providers, Moorsweb, which provides those excellent solutions in my area. Its business model is contingent on finding long-term customers in its area, but as soon as it achieves market penetration, BT or Openreach can come into the area and take those customers back. As a result, Moorsweb has no long-term customer base, which is a disincentive to it to invest. It is a good, not-for-profit organisation that is keen to deliver a service to local people, but when it invests, there is no long-term return. We need to make sure that such providers have security of commercial opportunity.
Effectively, we have a market failure. The bundling of BT with Openreach almost disincentivises the company from rolling out superfast broadband to industrial estates, where it already has leased lines—
Mr Clive Betts (in the Chair)
Order. I am sorry to cut the hon. Gentleman off, but we have to move on to the next contribution.