Three and Vodafone: Potential Merger

Liam Byrne Excerpts

Thursday 14th December 2023 Commons Chamber

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I beg to move,

That this House has considered the potential merger of Three and Vodafone.

I am grateful to the Backbench Business Committee for making time for this debate on what will be one of the largest mergers we see in this country this year. The merger has profound implications for the security, the costs and the quality of that everyday essential in the lives of our constituents: their mobile phone.

The debate is not simply about a merger; it is on three significant questions about the way in which our economy is now run. First—this is at the heart of the debate and a big question—is our investment security regime fit for purpose in a world where the threats are continuing to multiply? Secondly, are we are prepared to see the good, honest force of competition continue to wither? Thirdly, in a country where business investment continues to disappoint, will the deal help or not?

The facts are pretty straightforward. Three, which is owned by CK Hutchison, and Vodafone have announced a deal to merge. It is a £15 billion deal, which will create the largest operator in the market—bigger than EE or O2. Crucially, it will reduce the number of mobile network operators from four to three, and the merged entity will be enormous. If the merger goes through, it will control half the UK’s mobile spectrum. The Competition and Markets Authority is looking at the competition dimensions, but we need to understand what the Government—either the Cabinet office or the Minister in his place—will do to ensure that the deal is brought in to the Investment Security Unit for the hardest possible review under the terms of the National Security and Investment Act 2021.

The case for the merger has been well rehearsed, and the Business and Trade Committee has taken evidence to try to unpack it. Three and Vodafone say that the deal will create a bigger firm that can compete much more effectively. They say that it will stimulate investment in the mobile network operator market and allow them to eliminate the overlap between their networks and use that money to build a mobile network with 25,000 masts, which will extend mobile coverage into the notspots that are so frustrating for many of our constituents. However, we need answers to some basic questions, and those start with national security, which must always be the principal consideration for us in the House when we look at such questions.

We cannot avoid the fact that the proposed deal will put 49% of the merged Three-Vodafone business into the hands of the CK group. That group is based in Hong Kong and, as such, falls under the ambit of the Hong Kong national security law. As the House knows, once upon a time, Hong Kong was considered meaningfully different from mainland China, but the introduction of the national security law has destroyed Hong Kong’s legal autonomy. It now provides Chinese authorities with the power to demand user data from companies under the threat of fines, asset seizures, or indeed imprisonment.

Furthermore, CK’s leaders are not unconnected to the Chinese state—far from it. Li Ka-shing, the founder of CK Hutchison, has in the past voiced his support for China’s draconian moves in Hong Kong. His son, Victor Li, is a member of the 14th national committee of the Chinese people’s political consultative conference of the People's Republic of China, and is a member of the Chief Executive’s council of advisers of the Hong Kong special administrative region. Mr Li is a supporter of John Lee, the chief executive of Hong Kong and the former police chief who led the efforts to crack down on the pro-democracy protest movement in 2019.

Those facts are completely central to the debate on whether the merger should go through. As the Intelligence and Security Committee has made clear in its brilliant report on China, the problem is China’s whole-of-state approach. In that report, it noted that

“Chinese state-owned and non-state-owned companies, as well as academic and cultural establishments and ordinary Chinese citizens, are liable to be (willingly or unwillingly) co-opted into espionage and interference operations overseas”.

That was its considered judgment.

That warning comes on top of those we have already had from Richard Moore, the chief of MI6, who declared in July that China aims to strike deals with other countries that allow it to capture data on citizens and national projects. He said that

“Chinese authorities are not hugely troubled by questions of personal privacy or individual data security.”

Furthermore, Dr Alexi Drew, in a brilliant report commissioned by Unite the union, found that risks of data transfer and data collection naturally, obviously and directly create risks of surveillance, blackmail and economic intelligence gathering.

Of course, in Three, the CK group already runs a mobile company, but the Three-Vodafone merger will give the CK group a 49% share in a combined company that will run some of the most sensitive mobile and data contracts in the country, including NHS 111, police departments, the Ministry of Defence, the Ministry of Justice, and the monitoring system in the Cabinet Office. The merger will radically extend CK Hutchison’s access to UK telecoms data from 9.5 million users to more than 27 million users—an almost threefold increase in the number of users, and their data, to which the CK group will have access. These are not just worries that we should be debating in this House, but worries that have already prompted our allies to act. On 15 September last year, President Biden announced that the risk of access to Americans’ private data would be a factor in blocking investment deals.

On Tuesday, the National Security and Investment Sub-Committee of the Business and Trade Committee held its first ministerial meetings and hearings with the Minister of State, Cabinet Office, the hon. Member for Wealden (Ms Ghani). That was the first chance that we as a House have had to cross-examine a Minister on the UK investment screening process. In that cross-examination, I put it to the Minister that our investment security process is now out of date, and asked her whether there is a case for updating the investment security regime in the light of modern threats as we now understand them. She said, “Yes”, and also that

“the regime we have at the moment is pretty robust, but it started off a couple of years ago, and we need to be aware of how new technologies could be an issue that we need to incorporate into the process.”

She went on to say that

“I have a personal view; I do think that we should be further investigating the issues around data capability”

and concluded that

“My personal view is that the accumulation of data against citizens of the UK is something that we need to explore if it can be exploited.”

There we have it: the head of MI6 is warning about the risks of China exfiltrating data; our allies are putting up and updating investment security regimes to stop Chinese access to data; and out of an abundance of prudence, we are blocking companies such as Huawei and TikTok because we are worried about Chinese access to data, yet the Vodafone-Three merger would allow a group with strong links to the Chinese state unparalleled access to data that flows through contracts with the Ministry of Defence, the Ministry of Justice and the pan-Government protective monitoring service for the Cabinet Office—

[Navendu Mishra (Stockport) (Lab)]

And the police.

[Liam Byrne]

Along with the police. To cap it all, we now have a Minister warning that our investment security regime is out of date with the threats as we now understand them.

[Sir Julian Lewis (New Forest East) (Con)]

I am very grateful to the right hon. Gentleman for bringing this debate before the House. I am here primarily to listen, rather than contribute, but it is overwhelmingly clear that the relatively new Investment Security Unit is tailor-made to consider a merger proposal such as this one.

However, does the right hon. Gentleman realise that, if he gets his wish and the Investment Security Unit does consider the merger proposal, the Intelligence and Security Committee would be blocked from scrutinising the work of that unit? The Government originally said that all its work should have been overseen and scrutinised by what was the Business, Energy and Industrial Strategy Committee. The unit is now in the Cabinet Office, but even now, we are still not being allowed to scrutinise it. There is something very strange, if not sinister, going on. We have demanded the right to look at the classified elements of that unit’s work.

Finally, if the right hon. Gentleman were allowed into a secure room to look at the documentation that will come before the Investment Security Unit, if it is ever allowed to look at this deal, does he believe that his looking at that documentation without cleared staff, without being able to take notes and without being able to go away and discuss it with anybody else—as we on the Intelligence and Security Committee can do under our special regime—would amount to effective scrutiny of something with such clear security implications?

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[Liam Byrne]

I am very grateful to the Chair of the Intelligence and Security Committee for that intervention. As the Chair of the National Security and Investment Sub-Committee, I have to warn the House that I do not believe we have access to the information that would allow us to scrutinise Government decisions on investment security effectively. His Committee’s report on China put it rather well:

“the Government does not want there to be any meaningful scrutiny of sensitive investment deals”.

It reminded us:

“Effective Parliamentary oversight is not some kind of ‘optional extra’—it is a vital safeguard in any functioning Parliamentary democracy”.

I wholeheartedly agree with the right hon. Gentleman and his Committee. We have not yet finished our scrutiny process for this year, but as it stands today, I cannot give the House an assurance that we have in place an effective oversight and scrutiny regime for matters of significant consequence for the investment and economic security of our country.

The reason this issue is significant is that the hon. Member for Wealden and the right hon. Member for Tonbridge and Malling (Tom Tugendhat) have both been asked whether the Vodafone-Three merger will be assessed under the National Security and Investment Act, and have not responded. The risk is that the Government are now keeping more secrets than the companies involved.

When the Minister who is set to wind up responded to the debate earlier in the year, he said:

“I am sure that the questions raised, which are legitimate ones, will be properly taken into account…if it triggers the process under the National Security and Investment Act.”—[Official Report, 19 September 2023; Vol. 737, c. 502WH.]

In the light of the warnings the House has heard this afternoon, of what we now know about the CK group, of our allies updating their security investment regimes and of the Minister of State, Cabinet Office, the hon. Member for Wealden telling us that she does not think the investment security process is fit for the threats we now face, it is incumbent on the Minister today to assure us that this deal is being called in for the hardest of scrutiny by the Investment Scrutiny Unit in the Cabinet Office. As I understand it, the Act does allow the Minister to update the House on what he is doing, and I call on him to provide us with the information that could put our minds to rest, if indeed the decision is not to block the deal, for which there is a good case.

There are two further points: one is about competition and one is about investment. Successive research that we on the Business and Trade Committee have seen shows that there is a material negative impact on competition when the number of mobile network operators goes from four to three. There was disagreement in the evidence we took as a Committee, but particularly persuasive was the evidence from Professor Valletti, who is the former chief competition economist of the European Commission. He bluntly warned us:

“I have studied it, I have published about it and I have found no evidence that tells us that by consolidating there is more investment. Instead, I have found that every time there is a merger, prices go up.”

His research shows that prices decline slower in markets with three mobile network operators compared with those with four. Unite research confirms that prices are 20% higher in European countries with three rather than four networks.

The final point is about investment. We do not have enough investment in our mobile network infrastructure, which creates big problems for our constituents. Both Vodafone and Three have promised that this will lead to a surge of new investment. The challenge, I have to say, is that the investment being proposed does not look materially bigger than the investment that Three and Vodafone are each already proposing. The risk is that this is funded through 1,000 to 1,600 job cuts, which is the number of job cuts that Unite the union has estimated. Certainly, as Professor Valletti has found, there is not much evidence that consolidating networks improves investment.

The Deputy Prime Minister has called for evidence and thoughts about how the investment screening and security regime needs to be updated. This is an important debate about the economic security of our country in a very different world. We have heard enough about the risks that this new merger presents. We have a black box, frankly, when it comes to the process by which the Government judge these threats. I do not think that that is a satisfactory position for the House to be in. The House needs some reassurance that this proposed merger will get called in under the National Security and Investment Act for the hardest possible scrutiny, and if there is any hint of a risk, let us be prudent and block the deal.

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[The Minister for Data and Digital Infrastructure (Sir John Whittingdale)]

I congratulate the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) both on his appointment as Chair of the Business and Trade Committee and on bringing this issue to the House today. There is no question but that the issues under debate today are very important. The outcome of the possible merger will have implications for thousands of consumers across the country, and the right hon. Gentleman raises perfectly valid questions.

To some extent, this debate is something of a reprise of the one initiated by the hon. Member for Stockport (Navendu Mishra) in Westminster Hall last September. I am afraid that I am likely to disappoint the right hon. Gentleman, because I am not able to add very much on the process to what I said back in September. He will be aware that we have a long-standing and robust system for looking at the competition aspects of mergers and acquisitions. As that is conducted independently of Government, it has always been the case that Ministers do not comment on the competition aspects, but rather leave it for the regulatory body—in this case the Competition and Markets Authority—to make recommendations. Ministers will then reach a decision once that process has been completed.

On the national security implications, we also have an extremely robust system in place, but it has always been the case that the Government do not talk about whether inquiries are taking place. All I can tell the right hon. Gentleman is that, like all other national security matters, we do take telecoms security extremely seriously.

[Liam Byrne]

I am grateful to the Minister for giving way. Things have moved on since the debate sponsored by my hon. Friend the Member for Stockport (Navendu Mishra). On Tuesday, the Minister’s colleague, the Minister for Industry and Economic Security, the hon. Member for Wealden (Ms Ghani), told my Committee that she thought that the investment security regime was not fit to match the threats that we now see. Given that the Deputy Prime Minister has said that there needs to be an overhaul of the investment security regime—he is calling for that evidence—and given that the Minister responsible has said that she does not think the regime is currently fit for the threat that we now face, it is essential that the Minister today is able to give us some reassurance that the questions arising from this merger will be addressed by the Investment Security Unit, not least because Parliament has very limited oversight of the decisions that Government will arrive at.

[Sir John Whittingdale]

The overall question of the efficacy of the investment security process is for the Cabinet Office. The right hon. Gentleman may well wish to pursue his inquiry with the Minister responsible. I have no doubt that my right hon. Friend, who chairs the Intelligence and Security Committee, will also have views about the process that the Government have put in place. All I can say to both Select Committee Chairs is that, in relation to this specific merger, we cannot comment on whether it is currently undergoing scrutiny through that process, but we believe that the process that is available for the examination of mergers of this kind on national security grounds is robust. Beyond that, I cannot really go.

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[Liam Byrne]

This has been an extremely useful debate. Let me conclude it by offering my thanks and congratulations to my hon. Friend the Member for Stockport (Navendu Mishra) on leading this campaign so vigorously. My thanks go to Unite the union for informing the House with such important research on the questions of national security.

Unfortunately, I fear that the debate has raised more questions than it has answered. It is a matter of concern that the Minister cannot tell us how the principles of defending our national security against bad investments apply to one specific case. This is a test case for whether our investment security regime is fit for the threat that we now face. We have heard two Select Committee Chairs tell the House that we, as parliamentarians, cannot assure the House that we can come to a judgment about whether the Government are making good or bad decisions. That is not a happy place for Parliament to be in. I am shocked that the Minister cannot tell us that a Chinese-subservient company is in any way blocked from acquiring access to the data on 27 million citizens in this country. That is a pretty poor state of affairs.

I hope that this may be the first of a few debates to come, but I pray that the Government quickly come to some new decisions about how this investment security regime operates in the future. We do not have a small yard and a high fence; right now, it seems that our security regime is a big garden and a low fence. I am afraid that in the world we live in, that is not good enough.

Question put and agreed to.

Resolved,

That this House has considered the potential merger of Three and Vodafone.

Birmingham Commonwealth Games Bill [Lords]

Liam Byrne Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Thursday 11th June 2020 Commons Chamber

The last time that I was aware of it, the Treasury had significant ambitions for productivity improvements in our country. I simply say to the Minister that if the Treasury wants to improve productivity in the UK, it needs to think first and foremost about those at the bottom end of the labour market, who are earning the least. It should ask itself the question, in the context of the Commonwealth games: if we raised our sights and ambitions for people’s wages, would they not have a bit more time to engage in training and development and give themselves a better chance of earning more in future, and more broadly, would it not do the right thing for our country and improve our labour market and economy? It might seem like a big ambition for the Commonwealth Games to have such a positive impact on our labour market, but I think that in sport and in everything else, ambition is nothing to be sorry about.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I will speak in favour of new clause 1 in slightly blunter terms than my hon. Friend the Member for Wirral South (Alison McGovern). The message to the Minister is pretty simple: this is his last chance to tell the House that he shares our ambition that the Commonwealth games organising committee will be accredited as a real living wage employer. He has hummed and hawed about this throughout the passage of this Bill and during his time as a Minister. Today is decision time, and we are looking for a clear commitment from him that the organising committee will be accredited as a real living wage employer.

The Commonwealth games, as my hon. Friend said, is an extraordinary opportunity for our city at an extraordinary time. It will be the greatest Commonwealth games that we have ever seen. I join others in putting on record our profound thanks not only to the chair, John Crabtree, and Mr Ian Reid and the team, but to Ian Ward and Yvonne Davies and the teams at Birmingham and Sandwell councils, as well as the team at West Midlands Combined Authority, for doing the impossible—bringing forward these games in four and a half years, against a timetable of normally seven years, which is what it normally takes to put a Commonwealth games in place. They stepped up when Durban stepped out, and that is why we will be the host—because people were prepared to have that ambition for the festival that my hon. Friend spoke of.

Opposition Members know that we will be judged not just by the medals that we win, but by the lives that we change. This great festival of Commonwealth sport is also for us a great festival of civic spirit. It is a chance for us to reanimate the spirit of one of the great founders of our city, the most extraordinary civic entrepreneur of the 19th century, Mr George Dawson. He was the author of the civic gospel and he inspired six Lord Mayors, including someone called Joseph Chamberlain. He was one of the reasons why we became known as the best governed city in the world, but one aspect of his genius was that he knew that culture, like sport, should be an entitlement for all, not just a privilege for some. But that civic spirit that we want to celebrate with great pride demands that the Commonwealth games organising committee is accredited as a real living wage employer.

Why is this important? Because 571,000 people across our region are paid less than they actually need to live on each week, including, I might say, many of the carers we have been clapping for every Thursday night. Let me tell the Minister the real-world consequences of living in a place where about one in five people are not paid enough to live on. It means that, in constituencies such as mine, more than half of children grow up in poverty. Fifty-three per cent of the children in my constituency live a life of poverty. That means that during the summer holidays, the food banks run out of food—literally. In the second city of the fifth or sixth richest country on earth, food banks are running out of food because people are not paid enough to live on. I challenge the Minister to stand, as I have done, in a food bank in Birmingham and watch the little arms of a nine-year-old boy strain as he picks up the food bags to help his mum carry them home. I ask the Minister to tell me that that experience is not going to scar that child for life, and tell me how many thousands of children in our city, Britain’s second city, are in exactly that position, because so few people are paid enough to live on.

Across our region, only one in 1,000 businesses are accredited as real living wage employers. We need all of them to be accredited, and if we are to achieve that, we need to set an example and that example—the best example available—is the Commonwealth games. That is why we need the organising committee to accredit as a real living wage employer.

The time has come in this debate for a bit of honesty. We know that officials from the Department for Digital, Culture, Media and Sport have said to the organising committee, “Please don’t accredit as a living wage organisation, because it undermines the case that the Government’s so-called living wage is not enough to live on.” Well, as my hon. Friend the Member for Wirral South brilliantly rehearsed, the so-called living wage that this Government introduced is not a living wage; it is a living lie. It is £8.72 an hour, which is not enough to live on. What people need per hour to live on is not £8.72, but £9.30. I know that that 58p per hour does not sound a lot to many people in this Chamber, but over the course of a 40-hour working week, that is worth £23 a week. That £23 extra income a week makes a difference when it comes to taking decisions on heating and eating. That £23 a week extra in the pocket of my constituents lifts children out of poverty; it actually allows people to live. That is why this debate is so important.

We have offered this new clause to the Minister. I am full of hope that he will stand up and cut the argument away from me, by saying that he agrees with it and that the organising committee must now accredit as a real living wage employer. Let me warn him that, if he does not, over the next year, as he knows, I will be mounting something of a political campaign across the west midlands. If this Government refuse to take on board the new clause, I will hang that decision around every Conservative running for office next year in the west midlands from the Mayor down. This is an opportunity for the Government to do the right thing—the right thing against the judgment of history, the right thing for the people of the west midlands and the right thing for those who live their lives in poverty today.

[Catherine West (Hornsey and Wood Green) (Lab)]

May I say how pleasing it is to hear us debating this Bill yet again, as we did in Committee when I was the shadow Sports Minister? I congratulate my hon. Friend the Member for Wirral South (Alison McGovern) for doing such a wonderful job of promoting sport, particularly women’s sport, through her Twitter feed. One of the exciting things about the Commonwealth games is that women’s sport will be up in lights. For the first time in the Commonwealth games, we will have women’s cricket, which will provide a fantastic backdrop and a great example for the many girls who live not just in the midlands, but across the UK, as it will enable them to think of themselves as potential first XI players for the women’s cricket team and even to play internationally.

Following my visit to Birmingham, I want to put on record my thanks not just to my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), who has already spoken today, but to the team at Birmingham City Council, who are the best example of municipal pride, putting on a wonderful show for visiting Members of Parliament. We saw all the exciting preparations going on around the stadium and the swimming pool—that was particularly exciting for me as chair of the all-party group on swimming—which will be finished in Sandwell in time for the 2022 Commonwealth games.

As the Bill has made its passage through the House, this has been a really important time to debate principles in sport: not just ticket touting and how ticketing will be done properly for the Commonwealth games, which I am sure the Minister will come to, but gambling issues and the promotion of alcohol, where the games can promote best practice in stopping some of those rather negative images seen throughout the sporting world.

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[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Nigel Huddleston)]

I thank the hon. Member for Wirral South (Alison McGovern) for tabling the new clause and congratulate her and the hon. Member for Cardiff Central (Jo Stevens) on their appointments to the shadow ministerial team. I look forward to working with them in the run-up to the games and on many other issues. I also thank them for the constructive way in which we have already discussed many issues, which has proven that sport can indeed be a great unifier. Long may that continue.

Members of the House may know that, as an arm’s length body of Government, the Birmingham 2022 organising committee has its pay scales set in line with civil service pay rates. All direct employees of the organising committee are paid above the level of the Living Wage Foundation’s rates. While these rates do not apply to the organising committee’s contractors, I am confident in the steps being taken across the partnership to ensure that an excellent example is being set, and will be set, on fair pay. Of course, all employers must pay at least the national living wage, which has recently risen to £8.72 for the over-25s, and the Government have set an ambition for that to rise to £10.50 by 2025, should economic conditions allow.

Let us not forget, as the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) seems to have done, that under Labour in 2010 the minimum wage was £5.93, compared with £8.72 now. The tax-free allowance was £6,475 under Labour; it is now £12,500. There is a party and a Government that have taken quite a lot of action on raising the standards and wages of the lowest paid in society, and it is the Conservatives. That is a record of which I am proud. Much as the hon. Member may wish to talk about the efforts that he would like to make to raise the living standards of the lowest paid, perhaps he would like to take action. The reality is that, in government, it is the Conservatives that have taken more action than his Government did.

[Liam Byrne]

I am proposing some action that the Minister can take this afternoon. He could tell us whether he is confident, as he just said a moment ago—I think “confident” was the word he used—that contractors across the supply chain will be paid more than £9.30 an hour. Will he just tell the House whether he hopes that the Commonwealth Games organising committee can accredit as a real living wage employer? A simple yes or no will be fine.

[Nigel Huddleston]

I expect—in fact, the Government require—all employers to pay at least the national living wage. That is Government policy. I respect the right hon. Gentleman’s goals and ambitions, but I wish he would stick to the reality of what actually happens in government, rather than playing politics in terms of conversations and ambitions.

In the aftermath of covid-19, the games will be more important than ever in supporting the economic, cultural and social renewal of the west midlands. There will be more than £300 million in procurement contracts for local businesses, support for thousands of jobs and an integrated trade, tourism and investment programme, which will help to ensure that the games are at the heart of recovery efforts across the region.

[Nigel Huddleston]

As I said, the Government’s policy is already for a national living wage. That is Government policy. I understand the ambition and intent of the Opposition. It is the same as the Government’s: to raise the living standards of the lowest paid in society, and that is what this Government are delivering on, instead of just talking about it.

In 2020 alone, £145 million-worth of contracts will be available, with the organising committee continuing to promote these in recent weeks through webinars involving the local chambers of commerce. The trade, tourism and investment programme will showcase the best we have to offer a global audience and strengthen our economic ties with our friends right across the Commonwealth. It will be supported by £21 million of Government funding, ensuring that we can take advantage of the economic opportunities created by the games to deliver on the ambition that Opposition Members have just talked about. The Mayor of the West Midlands, the fantastic Andy Street, also announced just a few weeks ago that the West Midlands Combined Authority had launched a new Commonwealth jobs and skills academy to improve regional skills and employment opportunities through the games. This will be underpinned by a further £1 million of public money.

[Liam Byrne]

Will the Minister give way?

[Nigel Huddleston]

I will give way to the right hon. Gentleman one final time.

[Liam Byrne]

I am grateful, but if the Minister refuses to answer the substance of the argument, I will keep seeking to intervene. While he is on the subject of not playing politics and celebrating the role of the Mayor, will he confirm to the House whether the Mayor of the West Midlands has written to him to ask him to ensure that the organising committee accredits as a real living wage employer? Has the Mayor written that letter—yes or no?

[Nigel Huddleston]

I have no reason to respond to the right hon. Gentleman’s comments. I have a regular and very constructive dialogue with the Mayor of the West Midlands, who is doing everything he can to ensure that the games are highly successful. He has been absolutely pivotal in the success achieved to date, and will continue to do that for as long as he is in office—hopefully for a much longer period of time.

Let us not forget that the Birmingham 2022 games will be the first Commonwealth games with a social values charter. Accordingly, the organising committee has ensured that its procurement processes place added value on promoting those values. Added weight is being given to those companies that prioritise local employment opportunities and skills development. Alongside that, work continues to ensure that local organisations and voluntary, community and social enterprises can benefit from the opportunities of the games.

The best way to improve the economy and pay in the west midlands is to invest in skills and support business growth, which is exactly what the Commonwealth games programme will do. I hope that with those assurances, and taking into account the significant economic uplift that the games will generate for the local and regional economy, the hon. Member for Wirral South sees fit to withdraw her new clause.

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[Alison McGovern]

I welcome the hon. Member to the House. He has worked in the service of a city and a region of our country that is one of the finest anywhere, so I applaud his work in that. I simply disagree with him. I am sure he is right about the situation that tourism businesses are in. The problem is that we need local authorities to be sustainable, so that they can provide the environment in which those tourism businesses can succeed.

[Liam Byrne]

Sometimes it helps to read the clause. If a £1 per night levy will be a significant deterrent for the hotel industry, why is such a tax in place in Austria, Germany, France, Spain, Greece—in fact, most of western Europe? Has it been a significant deterrent to hotel stays in western Europe, in my hon. Friend’s experience?

[Alison McGovern]

In my experience, it has not. My right hon. Friend makes an extraordinarily good point. What I think is a deterrent to the tourism industry is when local authorities cannot afford to fund the things that make events like this a success. Local authorities need the ability to make these events sustainable.

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[Alison McGovern]

I am sure the hon. Lady wants to defend hotels and tourism, as I do, but I simply make the point that I made previously: local authorities are crucial to making sure that the tourism and visitor sector is successful in Birmingham and other boroughs in the west midlands, and everywhere in the country that has a significant visitor economy. The level of austerity and the funding cuts that local authorities have borne to date have been significant and are causing problems and challenges for our ability to host such events. This is a modest proposal in pursuit of the sustainability of such events.

[Liam Byrne]

Is my hon. Friend aware that the Birmingham Hippodrome made significant job cuts this week, that the Birmingham Rep is running a significant deficit this year, and that the Birmingham Museum and Art Gallery is also running a significant deficit? Is she also aware that a crisis in the cultural sector is breaking upon us now? Those institutions will be coming to the Secretary of State next week to ask for his help, so he has a choice: either he can find the money himself or he can support small, common-sense measures such as this.

[Alison McGovern]

I was not aware of the specifics, though it is no surprise to me, because I am aware of the situation in the cultural sector right across the country. My right hon. Friend knows very well that the art collection in Birmingham city is one of my favourites. It is a brilliant art collection that will do a great deal for the cultural offer alongside the Commonwealth games. It is a reason people go to Birmingham. Without funding, such things cannot be sustained, and their loss would fatally undermine the tourism offer in cities up and down our country. Again, I simply say to Government Members that this is a modest proposal. Do they think, at this point in time, that the Treasury and the Conservative Government could do with a few modest proposals to bring in a small amount of income? Might the Minister not therefore consider this seriously?

Finally, it is important that we have proper metrics and measures to assess the economic impact of these games. It could be substantial—it could be substantially positive for the economy—so will the Minister commit to discussing with me a set of metrics that we can agree on to monitor the economic impacts of the games on all the various sectors that Members on both sides of the House have discussed, so that we can make the case that cultural and sporting events do properly benefit the economy? Will he consider this fully and take seriously the question of sustainability for the tourism and visitor economy, which at the moment should be at the heart of all our concerns?

[Liam Byrne]

I, too, wish to speak in support of new clause 2; we would be content this afternoon with a commitment from the Minister that he will explore this proposal with the Chancellor in the spending review, which we know is forthcoming.

I shall give some numbers, because I think they will help this debate. The total cost of the Commonwealth games is about £778 million, about three quarters of which is being provided by Her Majesty’s Government. Some £184 million is coming from Birmingham City Council and its partners, with £25 million going towards the Alexander stadium from the combined authority, plus a further £165 million going to kick-start the housing development, including the athletes’ village, from the combined authority.

I say that because the Minister will be aware of two significant risks to the local contribution, which makes up about a quarter of the budget. First, there is a risk to the local government contribution. At the beginning of the coronavirus crisis, the Prime Minister and the Cabinet said to local authorities up and down the land, “Do whatever it takes to get through this crisis, keep the receipts and we will pay you back on the other side.” The House will be amazed to learn that the deal is now beginning to unravel and the Minister’s Cabinet colleague in the Ministry of Housing, Communities and Local Government is beginning to query whether all the bills will be paid. In a city such as Birmingham, that means we could be confronting a deficit of £164 million this year. That is why the Minister has an obligation to take steps now to de-risk the local contribution to the games.

It is not just Birmingham City Council that is in jeopardy; the combined authority is, too. We revealed just a week or two before the elections were postponed that the Mayor’s budget has a £1.2 billion black hole in it. He has made commitments £1.2 billion in excess of the funds he has available. That is because he failed to get his precept through, he failed to get any movement on supplementary business rates and the funding that was going to novate from the local enterprise partnerships to the combined authority has not come through. In addition, there is a £700 million funding gap on the transport plan, because the Department for Transport is beginning to query some of the transport schemes. The broad point I want to make is that coronavirus has created a significant risk to the local authority contribution, and it would appear that there is a significant risk in respect of the combined authority as well.

[Gary Sambrook]

On the point of commitment, it is cheap to try to bring coronavirus into this, given that we were having this discussion about the city council’s contribution before the pandemic started. I have to remind the right hon. Gentleman that it was the leader of the council, in order to get the Birmingham Commonwealth games through his own group, who made the commitment that the contributions of the city council would not have an impact on the revenue budget. He has gone back on that commitment, one that many Labour councillors are very annoyed about. So does the right hon. Gentleman share my disappointment in the leader of the council who cannot keep his own budget in order?

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[Liam Byrne]

I can scarcely believe what I have heard this afternoon. This council has had its budged halved by this Government over the past 10 years, yet its area is home to some of the worst deprivation in the country. The leadership of the council in the past few years have been miraculous, given the challenges that they have had to go through. They have gone over and above that, helping the country out by offering to host the Commonwealth games when Durban pulled out, and we should be grateful for that, not curmudgeonly, like the hon. Member for Birmingham, Northfield (Gary Sambrook). He should be less curmudgeonly and more welcoming of the leadership the city is providing.

I do not want to let hon. Members escape from the substantial point we are confronting now and going forward. Coronavirus has created a fiscal risk to the city that totals about £164 million, because of the umming and ahhing from the Ministry of Housing, Communities and Local Government. That is not unique to Birmingham. The Local Government Association and Tory and Labour Members alike have written to the Government about this situation. One way we can de-risk it a bit is to have a pilot scheme in which a £1 levy on hotel rooms is created to help to fund some of the brilliant cultural work that needs to go on around the Commonwealth games.

Just so that hon. Members know, we have two risks coming up in the west midlands. The city of culture in Coventry has now been moved from January to June next year and that will run straight into the Commonwealth games, which will start in the summer of 2022. Frankly, it will be a pretty thin affair if all of the cultural institutions in the west midlands have collapsed. I say to the Minister today that they are on the brink of collapse now. The Hippodrome is already firing people. The Rep, which is a signatory to the letter to the Secretary of State from UK Theatre, is running a serious fiscal deficit. Birmingham Museum and Art Gallery is also looking at a serious deficit. In fact, when I convened a meeting with Culture Central from the west midlands last week, they were all reporting significant deficits.

I know that the Minister, because he is a responsible sort, will be working on a rescue plan for the cultural sector. I know that he is going to have difficult conversations with the Chancellor and the Chief Secretary to the Treasury. I know what the other side of those conversations looks like, because I had them with Department for Digital, Culture, Media and Sport Ministers in my time. The Minister’s arm will be strengthened if he is able to bring to the table imaginative proposals such as that in new clause 2. We are not asking for the moon; we are asking for £1 a night. That could, across the region over the course of four or five years, create a fund of about £4 million or £5 million, which could offset some of the costs that are needed and help to save the magnificent cultural institutions in Britain’s second city.

[Catherine West]

My right hon. Friend is making some excellent arguments. Does he remember that during the London Olympics—as a London MP, I remember this well—a series of MPs went to the Government to say that it was an extra thing for our city and therefore more resource, ideas, innovation and creativity were needed? The west midlands taxpayer cannot fund the whole project, so it is well within the remit of every MP in the region to be asking the Government for specific help and this proposal is a particularly imaginative solution.

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[Liam Byrne]

My hon. Friend is absolutely right. It could be that the Minister has a better plan, in which case now is the time to set it down. The letters from the cultural sector are coming to him next week. I hope they will be signed cross-party, because we share an interest in the rich cultural life of Britain’s second city. If this is not the way forward, I ask him please to tell us a better way. If there is not a better way, I hope he will accept new clause 2.

[Nigel Huddleston]

We have discussed the issue of a hotel tax at great length during the Bill’s passage, but may I first say that I completely support and appreciate the comments on the importance of the tourism sector made by the hon. Member for Wirral South (Alison McGovern) at the beginning of her speech? It has perhaps not been recognised as so important partly because of the fragmented nature of the industry, but I assure her that I consider the tourism sector to be of great importance and will be doing everything I can to support it.

The Government have always been clear that the Bill is not an appropriate vehicle for a proposal such as the hotel tax. It is not a money Bill; that would be for Her Majesty’s Treasury to bring forward. My colleagues in the Treasury have been crystal clear that any case put forward for a hotel tax would need to be fully costed, including balancing the additional burdens on businesses. In any event, were such a tax to be introduced solely for the duration of the games, it is estimated that it would raise for Birmingham City Council about £4.5 million to £5 million for the whole year. That would be only a small part of the financial contributions owed by the council and its partners to the games. The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) mentioned the £184 million contribution from Birmingham City Council, and of course central Government will contribute nearly £600 million directly.

[Nigel Huddleston]

I do not believe that the proposal should be taken forward for a variety of reasons. The discussion about the financials of the Commonwealth games was sorted out and agreed some time ago—and it is still agreed.

We should consider the wider context. The tourism and hospitality sector has been impacted by covid-19 and the Government are focused on doing what they can to support the sector throughout this challenging period. As my hon. Friend the Member for Dudley North (Marco Longhi) said, I cannot see how an additional tax would help. Only a few moments ago, the right hon. Member for Birmingham, Hodge Hill lectured me about the importance of £1 and what a big difference that would make. Now he tells me that it is trivial. Which is it? It would not just be £1; it would be another pound and another and another. The potential for incremental increases in that kind of taxation is dangerous.

[Liam Byrne]

I respect the economic argument that the Minister tries to make, but the proposal is for a pilot scheme, which can be governed jointly, that delivers a £1 a night tax. A pound a night in the context of the average hotel bill in Birmingham is frankly pretty insignificant, but across a spectacle as grand as the Commonwealth games, it could mean a significant amount of money. If the Minister has got a better way of de-risking what is now a dangerous fiscal situation for the Commonwealth games, let us hear it.

[Nigel Huddleston]

I will come on to the financial contributions in a moment.

The new clause would or could inadvertently discourage people from staying overnight in Birmingham and the west midlands at games time—the very time we want to welcome the world to the west midlands and when the region is doing whatever it can to increase visitors and the opportunities generated by the games. On top of that, even though we do not charge a tourism tax in the UK, we charge full VAT on hotel stays, which many other countries do not. Many other countries do not charge full VAT rates on hospitality and leisure.

Furthermore, local authorities have a range of existing revenue-raising and fundraising powers that they could explore to support them to meet financial contributions that are associated with events such as the Commonwealth games. Most important, the council has always been clear that it can and will deliver its financial commitments to the games without the need for a hotel tax. As ever, we remain in close contact with the council on all aspects of the games, including the budget. It is also worth noting that early analysis of the financial impact of covid-19 has demonstrated that the additional costs arising from the pandemic can be met from the existing games budget.

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[Mr Mitchell]

I will start where the hon. Member for Wirral South (Alison McGovern) finished, but before I do I congratulate both Front Benchers on, if I may use a sporting analogy, being thrown in the deep end in order to take the Bill through. They both spoke really well about the importance of the games and of the Bill. They also both look very fit and well following the dreadful lockdown, which has affected us all. I may be stretching a point, but perhaps we will see them both training in Sutton Park, which will play such an important part in the games.

The Bill provides an optimistic and encouraging moment because, as the hon. Lady said, it gives us a chance to look beyond the acute challenges that our country is facing at the moment and is genuinely something to look forward to. Boy, are we going to need it. Quite apart from the games, the sport, the fun and the excitement, all of which mean so much to so many people around the world, for us in the west midlands it is about the boost to our local economy, which we all know we must maximise. It is a once-in-a-generation opportunity to create thousands of jobs, new homes and a massive improvement to the public realm.

At a local level in Sutton Coldfield, we are delighted that our historic park is going to come into active use. It is the place where King Henry VIII used to hunt and where soldiers undertook their training in trench warfare before heading off to the western front in the first world war, and it was also visited by Her Majesty the Queen and 30,000 others to celebrate the 50th anniversary of the scouting movement in 1957. In Sutton Coldfield, we will proudly host the triathlon for the games.

In a virtual meeting with the leadership team of the Birmingham 2022 Commonwealth games, I was pleased to hear about the progress. Nearly three quarters of a billion pounds is involved, and it will leave a tremendous legacy. Locally, I was pleased to hear from the leadership of the Commonwealth games committee that co-operation with Royal Sutton Coldfield Town Council under its leader Simon Ward has been going so well.

My constituents will hopefully benefit greatly from the improved infrastructure in our park, which I believe is the largest municipal park in Europe. It will improve the facilities to be used, including for future events. The gain is not just for businesses locally, but for jobs, community projects and volunteering. The games will require 10,000 local volunteers to welcome people from all over the Commonwealth, as well as to perform in the opening and closing ceremonies and to host athletes and teams at sporting facilities for training purposes. In Sutton Coldfield, we are deeply grateful for the opportunities and very excited by the prospects.

We need to ensure, as the Minister made clear, that all the different organisations involved play their part and work together from now on until the games open. I have worked extremely closely over the past three months with Birmingham City Council and, in particular, with the right hon. Member for Birmingham, Hodge Hill (Liam Byrne). He and I co-chair a committee that tries to bring together all the local interests in order that we can tackle some of the problems that affect us across Birmingham.

I will leave others to underline the importance of the council’s role and local government, if I may. Instead, I want to refer to the role of the Mayor and the West Midlands Combined Authority, which is absolutely crucial both for the games and for the legacy. I have seen what the London Olympics have done for the east end of London. In particular, through the legacy that went on afterwards, including with the International Inspiration programme chaired by Lord Coe, I saw the huge ability of sport not only to energise children and improve education, also to help health, education and vaccination in the developing world. There is a huge importance to focusing on the legacy that will follow in all its many forms.

I salute the efforts of Andy Street, our Mayor. He was teased, I think, by the right hon. Gentleman earlier about the so-called black hole in the budget. I have said to you, Madam Deputy Speaker, that I have, through the miracles of modern technology, been able to elicit a response from the Mayor. He said this:

“There is no black hole. Every year, the West Midlands Combined Authority has lived within its budget—both in-year finances and also within investment ceilings. It has been well managed and for example at last week’s board the annual finance review was fully accepted. Citizens of the west midlands have not paid a penny for a Tory mayor, but over £2 billion of new Government cash has been brought into the region since Andy Street was elected. Yes, we are still short of funds for some investments, but they are steadily closing as further new investment comes in.”

Those are the other words of Andy Street, delivered through me to the House on this important point this afternoon.

[Liam Byrne]

That was a fantastic defence of the Mayor, and it only lacks the very best wishes conveyed to the Mayor of the West Midlands on the occasion of his birthday today. None the less, all I would ask by way of intervention is for the Mayor to speak to his finance director, because during the transition talks before the mayoral elections were cancelled, it was not my analysis that revealed the £1.2 billion black hole; it was the analysis of his finance director. Admittedly, it took her three weeks to crunch the numbers and produce that figure. This is a gentle ask, I suppose, that we work together to try to repair this rather large hole that the WMCA finance director herself has identified.

[Mr Mitchell]

It is extremely decent of the right hon. Gentleman, given his current position, to send his best wishes to the Mayor on his birthday. I am sure the Mayor will receive them, if not from one of us Conservative Members then over the airwaves. I reassure the right hon. Gentleman and the House that the Mayor of the West Midlands needs no lectures on financial success, financial ability or financial probity: he ran John Lewis, one of the most respected and most brilliant retail organisations in the country. I have no doubt whatsoever that we are all grateful for that experience, which he is sharing with the people of the west midlands through his mayoralty.

The Mayor has personally lobbied for £21.3 million to support the TTI—tourism trade and investment—programme to maximise the Commonwealth games opportunity, and that is, of course, in addition to the Mayor’s pivotal role in securing for Perry Barr, in respect of the games, £165 million of housing infrastructure fund money, which will help to regenerate a swathe of north Birmingham and leave a legacy of additional housing. All that was agreed in the March Budget this year, and last week, on 5 June, the West Midlands Combined Authority signed off a further £2.6 million as a regional contribution to the programme.

Given the current economic impact of covid-19, all that will have even greater significance, as it will enable us to raise the profile of the region’s businesses and to promote trade and work to secure jobs. In that respect, I particularly welcome the focus that the Mayor, the WMCA and all its partners have placed on using the opportunity of the games to accelerate and improve regional skills and employment opportunities. To help to achieve that, we have the new Commonwealth jobs and skills academy; the Mayor has put £1 million of the devolved adult education budget into funding technical skills for the development for the games.

The £100,000 skills hub in Perry Barr, in partnership with the main contractor, Lendlease, is very encouraging. We know that the construction industry in our region will need 50,000 more trained staff by 2030. The hub, funded by the WMCA, offers local people free skills training and a guaranteed job interview once a 20-day course has been completed. We hope the programme will help 4,600 young people and 2,600 unemployed people to gain skills, experience and then jobs. The games will also benefit, along with the rest of us in the region, from the wider transport investment programme that the Mayor is promoting, including the expansion of the metro network and investment in the rail network.

Having looked at severely local and regional aspects and aspirations, I wish to end by considering the international dimension, to which the hon. Member for Wirral South referred towards the end of her speech, and the Commonwealth itself. By ensuring that the world-class games succeed and bring pleasure to millions, perhaps billions, of people around the globe, Britain underlines the community of nations that is the Commonwealth. It is a north-south organisation, a family of countries co-operating in many different ways. At a time when narrow nationalism is rampant and the case for the international rules-based system is severely on the back foot, let us hope that the games will remind us all that we have much to gain from international co-operation and much to lose when the structures that sustain it breakdown.

[Liam Byrne]

What a marvellous opportunity to follow a marvellous speech, which I felt hit almost all the right notes.

The Commonwealth games that we will host in Birmingham in the West Midlands will be the greatest Commonwealth games that the world has ever seen. It will be not only the most spectacular festival of Commonwealth sport, but a magnificent festival of our civic spirit—the civic spirit that helped to build our city in the 19th century and propelled our city to become the second city of this nation. I very much hope that the games will not be the last word in the renaissance of culture and sport in our region; they will be just a first step.

If there is one ideal that I hope we can put centre stage, it is the words that Jo Cox gave us: that we have more in common than anything which can ever divide us. I hope that will be the animating spirit of these games. As the youngest city in Europe, I hope we can use that ethos and ethic to act as an inspiration for a revolution in the youth work we have across our city. On Second Reading, I called for the creation of a young Commonwealth leaders’ programme, because, as a city of 160 different nationalities, we need to look to the next generation to help lead the business of bringing a diverse city together to live and play well. I hope we will find it in ourselves to put youth workers back in every ward, with safe spaces for our young people, to connect the inspiration of “more in common” to the great, animating festival of the Commonwealth games so that a young generation will work not only to bring our communities together but to strengthen the relationships in Birmingham and the west midlands with Commonwealth countries around the world. I am grateful to the high commissioners from around the Commonwealth who have begun to talk through that programme with me.

I hope that these games are the catalyst for a transformation of disability sports. As many people know, our city is home to the Royal Centre for Defence Medicine: a place that, frankly, works miracles. I hope that in due course we can bring that centre together with the Commonwealth games team to create, in our green heart of Britain, the great new centre for the Invictus games for the years to come. That is a practical thing that we could do quickly and well.

I hope that these games are the catalyst for an extraordinary cultural renaissance in our part of the world. We are looking forward to an extraordinary decade with not just the city of culture in Coventry, starting most likely in June next year, but the Commonwealth games and then the arrival—when it is finally built—of High Speed 2. There could be an extraordinary transformation of the cityscape in our city region. As the right hon. Member for Sutton Coldfield (Mr Mitchell) said, this is an optimistic moment and the Bill will give the decade an extraordinary kick-start.

[John Spellar (Warley) (Lab)]

Following on from what my right hon. Friend and the right hon. Member for Sutton Coldfield (Mr Mitchell) said, this Bill is of enormous importance not only for the future of Birmingham and the wider west midlands but for the here and now. As we face a tidal wave of redundancies, this boost to the construction sector, keeping our construction workers in work now, will be enormously important for the long term.

[Liam Byrne]

My right hon. Friend is absolutely right, and that is the second big point I want to make. This is a partnership. I am grateful for the investment that the Government have made, which will not just help unlock the greatest festival of Commonwealth sport that we have ever seen but bring 5,000 new homes to the constituency of my hon. Friend the Member for Birmingham, Perry Barr (Mr Mahmood), who I know is watching us. That gain, however, would not be happening without the leadership of Ian Ward and the team at Birmingham City Council. Together, the city council is putting in about £184 million. It had the political courage to step up to the mark when Durban pulled out. Given the halving of Birmingham’s budget in the last 10 years, that was a brave act, a courageous act and a wise act. We will be grateful for that political decision for decades to come.

My right hon. Friend puts his finger on something critical. In the debate we just had on new clause 2, the Minister did not betray much sense of how the world had changed. I hope he will reflect on that remark and what he has heard this afternoon. If the Bank of England is correct—you never know. it might be—we will see unemployment in our region rise by 192,000 next year, to 320,000. That will put unemployment in our region at the highest level we have seen since 1987. The fiscal maths tells us that we need a capital kick-start of about £3.5 billion to deal with unemployment of that significance. As I said in earlier debates, our cultural institutions are crying out to the Secretary of State for Digital, Culture, Media and Sport for help. The DCMS must look at the realities of what is going on in the sector and work with the Chancellor to do whatever is necessary to de-risk our bridge from where we are now to the beginning of the city of culture next year.

The prize is significant. I agree with the right hon. Member for Sutton Coldfield that this Bill is an optimistic moment. This is a once-in-a-generation opportunity for us, but it has to lift a generation out of unemployment, out of poverty, out of hunger, and out of hopelessness. We have to make sure that, when the eyes of the world —of 1.5 billion people—are on us in 2022, we dazzle them not simply with an extraordinary spectacle of sport, but with an extraordinary society that, together, we have built.

Birmingham Commonwealth Games Bill [Lords]

Liam Byrne Excerpts

2nd reading & 2nd reading: House of Commons
Monday 9th March 2020 Commons Chamber

[Nigel Huddleston]

I thank my right hon. Friend for his comments. I can assure him—I will come to this later in my speech—that the financial governance of the games is very strong. Again, we are working with all stakeholders to make sure that we can deliver on time and on budget—both on the time commitment and on the financial commitment.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

In the spirit of this debate and the cross-party nature of the spirit required to ensure the success of the games, I hope the Minister will at some point in his remarks reflect on the extraordinary strength of character required for a council that has lost £700 million of funding over the last few years to deliver the games not in the usual seven years, but in four and a half years. Let us unite around a shared endeavour to make this a success.

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[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

It is a great pleasure to follow the hon. Member for East Devon (Simon Jupp); he spoke with wit and flair and it was good to see him put Ministers on notice that he will be a doughty fighter for his constituency. It was good, too, to follow the hon. Member for Redcar (Jacob Young). We Opposition Members miss his predecessor greatly, but I know that Mo Mowlam would have appreciated the humanity and humility that he showed in an excellent maiden speech.

It is a great pleasure to speak in this debate, because in a Second Reading debate we debate the principles of the Bill, and we cannot debate the principles of this Bill without debating the ethos of the games that we wish to host. The ethos of the games is generosity, which is why I shall start with first things first, and put on record the gratitude that the House feels not only to the chairman of the games, John Crabtree, and the chief executive, Ian Reid, but to Ian Ward and the team and officers at Birmingham City Council, along with Yvonne Davies and the team at Sandwell Council, for working miracles to step in when the bid from Durban failed. They have tried to do something spectacular, which is to put together a plan for the games in four and a half years, when normally it takes seven. The thanks of this House go out to everyone in the west midlands who has been involved in pulling together the plans for what will be the seventh Commonwealth games held on these islands. The games that we plan to showcase will be the greatest Commonwealth games in history—and not just because they will be held and showcased in the most diverse, innovative and creative heart of the Commonwealth: in the west midlands and in Birmingham.

The investment brought to our region is desperately needed. Some £800 million, about a quarter of it raised locally, is desperately needed. The facilities that have come are very welcome: I was delighted to look around the fantastic new Alexander stadium with my hon. Friend the Member for Hornsey and Wood Green (Catherine West); there is the fabulous new aquatic centre, which will be built in Smethwick; and of course there is the extraordinary new village that will be built in the constituency of my hon. Friend the Member for Birmingham, Perry Barr (Mr Mahmood), with 1,500 new homes—the down payment on an extraordinary new development of 5,000 homes—that will, in total, bring to the great, lucky constituency of Perry Barr some half a billion pounds of investment. Let no one go away from this debate without understanding clearly that my hon. Friend the Member for Birmingham, Perry Barr is the greatest negotiator in this Chamber on behalf of the people he serves.

Our challenge is not simply to deliver the games and to deliver the investment, but to ensure that what is a great festival of sport is also a great festival of and a great renewal of our civic spirit. This is a once-in-a-generation opportunity, and a generation should be lifted by opportunity—lifted out of poverty, out of unemployment and out of under-investment. We Opposition Members will fight like tigers to ensure that the games are a hand up for a community and not a handout for corporate sport. The Opposition know that our success will be judged not simply by the medals that we win, but by the lives that we change. We on this side of the House know that this festival of the Commonwealth games must be a festival of the civic gospel, too, which is why I turn to the father of the civic gospel: Mr George Dawson.

The story of George Dawson is not so well known today. He was a radical preacher—born in Portsmouth, I believe—who in the late 19th century made his home on Edward Street in the constituency of my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood). From the pulpit he preached with extraordinary power, but he was the father of civic inventiveness in our city of Birmingham. He founded the arts club and the free Birmingham Daily Press. He was the driving force behind the Shakespeare Memorial library. He was determined to ensure that our new city of Birmingham was not simply a city that was a democracy, but a city that had a democracy of culture. That inspired the great words that still sit above the free Shakespeare library:

“The time has come to give everything to everybody”.

That democratic ethos is what should inspire our approach to the games.

George Dawson had an extraordinary congregation: around 12 of them went on to be city councillors and around six of them went on to be lord mayors, including one Joseph Chamberlain. Together, they ensured that at the end of the 19th century our city was known as the best-governed city in the world. That is the ethos that should shape our approach to this Bill. With that in mind, what would George Dawson say about the Bill that the Minister has presented to us this afternoon? Well, the first thing he would say is that the games should be built in a genuinely inclusive way. That is why my hon. Friend the Member for Batley and Spen (Tracy Brabin) says that we will try to amend the Bill to include our determination to ensure that the Commonwealth games is an accredited living wage employer. Why is that important to us? It is because, across our region, 571,000 people are paid less than what they need to live on. That is one in four workers in our region. Only one in 1,000 businesses in our region is actually accredited as a living wage employer. That is why we are determined to make sure that ours is the first living wage region in the country, and why we want to see the Commonwealth games lead the way. I hope that the Minister will agree to the amendment and not seek to have it voted down by Members on his Benches.

I hope that the Minister gets a chance to discuss this matter with Mr Lee Barron, our fabulous general-secretary of the TUC in the midlands, who is bringing together a Commonwealth collective to argue the case for a much stronger social charter, but accreditation of the living wage is absolutely front and centre of our demands.

Secondly, I hope that the Government will bring forward a report that ensures that, in the village, we will deliver at least 471 homes for social rent. Why is that important? It is because the number of homes that we have built for social rent in our region has fallen by 80% since 2010. We are building council homes so slowly that it will take us until 2052 to clear the council waiting lists. That is why I hope that, when the Minister comes to Birmingham, he will meet Saidul Haque and the Citizens UK team, which has been defining some of our demands to make sure that the village that we build on the games site is genuinely a village of homes that everyone can actually afford.

The third thing that I think George Dawson would have done in this debate is to quiz the Minister on how we make sure that the Commonwealth games genuinely creates a new foundation for disability sports. We are so proud that the Commonwealth games is coming to Birmingham, and we are also proud of the Royal Centre for Defence Medicine, which sits just seven miles south of the Alexander stadium. I hope that, when the Minister next comes the Birmingham, he will ask for meetings with people at the Royal Centre for Defence Medicine and with the Commonwealth games team to inquire how we can create a genuine foundation for the Invictus games in our city for years to come. The Commonwealth games has a proud record of inclusivity, but we want to use it as a catalyst for transforming the strength, power, depth and stretch of the teams and the facilities that we have in our city for disability sports.

Fourthly, let us try to make sure that the legacy of our Commonwealth games is not simply nice new facilities, but lives and a generation that are changed once and for all. Crucially, how do we use the games to bring forward a new generation of leaders? We have had cuts to the youth service in our region two and a half times harder than anywhere else in the country, so let us look at the money that the Chancellor announced for youth services— some £500 million over the years to come—and have £100 million of it in the west midlands. Let us put it together with the legacy team from the Commonwealth games and create a young Commonwealth leaders programme where, in every single ward in our region, we equip, train and give a platform to a young leader to show how we can bring together communities for the future, animated by that spirit that we have more in common than that which divides us. Let us bring forward the investment in a generation of young leaders who not just bring our community closer together, but strengthen the links between our region and those of Commonwealth countries.

[Mr Khalid Mahmood]

I appreciate what my right hon. Friend is saying about the young leaders programme. We have more than 160 nationalities living in Birmingham. The Commonwealth programme will be hugely welcome and hugely appreciated, but, more importantly, it will provide the leadership for the next generation, and I thank him for raising that.

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[Liam Byrne]

I am grateful to my hon. Friend, who represents one of the youngest constituencies in our country. His constituency has suffered greatly as a result of cuts to youth services over the past few years. Let us use the possibilities of the Commonwealth games to begin turning that around. The final thing I think Dawson would say if he were here is that we should use available tickets to reward our local heroes. That has been suggested by my hon. Friend the Member for Hornsey and Wood Green, and is one of the great ideas to come from the hosting of the Olympics. We in the west midlands would appreciate having the chance to honour the people who make the world of difference to the city and region that we share.

We are so proud to be a poster child of a diverse community that lives together well. We are so proud that we will have the eyes of 1.5 billion people on us. We want to dazzle them, not simply with the greatest Commonwealth spectacle of sport that the world has ever seen, but with the kind of society that we have helped to build—a society that is dedicated to the Commonwealth principles of democracy, tolerance, inclusivity and peace, a society that we will have built not just with words, but with deeds.

--- Later in debate ---

[Gary Sambrook]

I was worried for a moment that my hon. Friend was about to quiz me on my knowledge of clause 26—I was starting to panic—but I am sure the Minister will have heard his intervention.

As well as the neighbouring local authorities, Highways England has also complained about the impact the removal will have on local people. This is not just a party political point, or opposition for opposition’s sake; as proven by the comments of the hon. Member for Birmingham, Perry Barr, this is a cross-party issue that is really impacting on Birmingham. It is literally the only source of negative publicity around the games and unfortunately the only bit that is wholly the responsibility of the city council.

I am also concerned that the village will not provide enough social and affordable housing locally. The last figure I heard was that only 4% of the housing on the site was to be social housing, which was six percentage points lower than the 10%—

[Liam Byrne]

I think the latest figure is 22%, not 4%.

[Gary Sambrook]

I thank the right hon. Gentleman—I will have a look afterwards. A couple of months ago, the figure was only 4%, but I will have a look at that.

[Liam Byrne]

Keep up.

[Gary Sambrook]

I will do.

In conclusion, we need to ensure that the legacy of the games in Birmingham includes that ripple effect of regeneration around the city as far south as my own constituency and provides the jobs and skills we desperately need. Let us hope that the legacy does not include 40 years of debt for the city council because unfortunately it has been unable to manage a budget yet again.

--- Later in debate ---

[Nigel Huddleston]

With the leave of the House, Madam Deputy Speaker, I thank hon. Members for their remarks and contributions and for the constructive tone of the debate on both sides. I shall endeavour to respond to as many of the matters raised as possible, but some may have to wait for Committee, which I am sure will be exciting.

The UK has a strong track record in hosting successful major sporting events. London 2012 is the most obvious example, but let us not forget that in recent years we have staged the 2014 Glasgow Commonwealth games, the 2015 rugby world cup, the 2017 world athletics championships, and the 2019 netball and cricket world cups, as well as the UCI road world cycling championships, to name but a few. I know that Birmingham 2022 will be just as successful and will rightly earn its place on this illustrious and growing list.

I welcome the cross-party support that the Bill and the games have received, both in this House and in the Lords, and the consensus across the House on the need to maximise the benefits of the games for our constituents, for Birmingham, and for the west midlands. We must remember that the games will be staged in record time. The organisers and, indeed, the House, need to be utterly focused on delivery of their contributions, and I am confident that we shall be. We can now all count down to the games in live time over the next 870 days, with the unveiling today of a countdown clock sponsored by Longines in the heart of Birmingham’s iconic Centenary square, as the hon. Member for Birmingham, Edgbaston (Preet Kaur Gill) mentioned.

The games will be a catalyst for change in Birmingham and the west midlands, and the benefits will be lasting—felt long after the 11 days of sport are over. We are working with games partners to secure a lasting legacy from the games that begins to benefit the region right now. In addition to the lasting physical legacy and fantastic facilities that the games will leave, the Government are working with games delivery partners and local stakeholders in the region to harness the power of the games to leave a wider social legacy. As well as being a catalyst for physical change in the city, our mission is to harness the power of the games to bring people together, improve health and wellbeing, help the region to grow and succeed, and put Birmingham and the west midlands truly on the map.

A wealth of opportunities will be created for the people of Birmingham as a result of hosting this event. As well as creating more ways to get involved in sport and culture within the local community, the games will create new jobs, volunteering positions and opportunities, particularly for young people, to develop skills, as mentioned by many hon. Members, including the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), the hon. Member for Birmingham, Perry Barr (Mr Mahmood), and my hon. Friends the Members for North Warwickshire (Craig Tracey), for Wolverhampton South West (Stuart Anderson), for Dudley South (Mike Wood), and for Birmingham, Northfield (Gary Sambrook).

The organising committee intends to create a wide range of entry-level positions for apprentices and to establish an in-house training academy, which will host three cohorts from autumn 2020, January 2021, and April 2021. The Department for Education recently announced a £20,000 investment in Birmingham to encourage more young people to become volunteers and coaches in sports clubs and the local community in the run-up to the games. In partnership with the Spirit of 2012, the organising committee recently confirmed the launch of a new £600,000 west midlands challenge fund, which will award grants to local organisations that create projects that bring disabled and non-disabled people together to participate in arts and cultural activities.

The Government and all our games delivery partners are committed to delivering a fantastic, memorable and lasting legacy from the games. I am grateful to my hon. Friends for their insightful contributions on this matter. I will keep the House updated on progress. Before I respond to key matters raised in the debate—

[Liam Byrne]

When the Minister does so, will he clarify for the House whether anyone in his Department has told the organising committee that it should not become an accredited living wage employer? I tabled a parliamentary question on that, and it is fair to say that the answer was not crystal clear.

[Nigel Huddleston]

I shall indeed come on to those comments, and I am sure that we shall discuss them in Committee.

Before I respond to the questions asked by colleagues, I should like to praise the three maiden speeches that we heard, from my hon. Friends the Members for Redcar (Jacob Young) and for East Devon (Simon Jupp), and the hon. Member for Stockport (Navendu Mishra). I hope you will forgive me, Madam Deputy Speaker, but as a sports Minister, my key comment is “Back of the net, gentlemen!” They did a fantastic job, and their constituents will be proud of what they have done today. They have represented them well, and they were incredibly articulate.

My hon. Friend the Member for Redcar mentioned quite a few things that I was not expecting—California, Winkie’s Castle, and sustainability. We will all remember him forever for his hard hat, which I hope is on his official parliamentary picture for many years to come. My hon. Friend the Member for East Devon gave a clear warning that the Treasury can expect many requests for cheques from his constituents over the coming years, and the hon. Member for Stockport mentioned many things in his contribution, including Engels, football and hats. He also mentioned the inequality in his constituency, and I am sure that he will be a champion for his constituents for many years to come.

I turn to other contributions. The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) commented on the Barnett formula. The UK Government contribution to the Commonwealth games budget is indeed subject to the Barnett formula, which the Treasury will apply in the normal way, as set out in the statement of funding policy—not in the way he wishes, but in the normal way.

The hon. Member for Washington and Sunderland West (Mrs Hodgson)—not surprisingly, as she is a great champion of these issues—commented on ticketing provision and enforcement. As she knows, the Government are committed to tackling fraudulent practices in the secondary ticket market and support the work of enforcement agencies in that area such as the Competition and Markets Authority, trading standards, and the advertising industry’s regulator, the Advertising Standards Authority.

We are working with the organising committee, local authorities, trading standards and West Midlands police to develop a co-ordinated approach to enforcing the provisions. More generally, the Government are working closely with national trading standards to ensure that they have adequate funding to tackle consumer detriment in the ticketing market. The hon. Lady and I, and others, will work on this phase over the coming weeks and months.

My hon. Friends the Members for Eddisbury (Edward Timpson) and for Gedling (Tom Randall) mentioned volunteering. Birmingham 2022 is committed to delivering volunteer programmes that are inclusive and diverse and that deliver a real and lasting legacy to the city, the region and the community. My hon. Friend the Member for Gedling spoke powerfully about his own experience in the 2012 games. He also mentioned games lanes. It is too early to say what temporary measures might be needed, but it is possible that temporary restrictions on sections of roads near games locations might be required. Any temporary measures will try to minimise disruption for transport users.

The hon. Member for Birmingham, Perry Barr and my hon. Friend the Member for Birmingham, Northfield both mentioned many other transport issues. I cannot answer all of them today and, of course, they know that some of those questions are largely matters for the local council, Birmingham City Council, and the combined authority to consider, but we will facilitate discussions, encourage co-operation where possible and engage with the Department for Transport and other bodies where appropriate.

With regard to the velodrome facilities mentioned by my hon. Friend the Member for Dudley South (Mike Wood), I understand that British Cycling is working with Birmingham City Council on research into the overall cycling facility needs in the west midlands. That research will be published in the coming weeks.

The hon. Member for Hornsey and Wood Green (Catherine West) and several others mentioned broadcasting. We know that the Commonwealth Games Federation and Birmingham 2022 are committed to ensuring that as many people as possible can access the games via their TV, mobile phone, computer screen and tablet. As it is a listed event, broadcasting rights for the Commonwealth games must already be available to the qualifying free-to-air terrestrial broadcasters. The games have had excellent live coverage for many years on free-to-air television. The organising committee is in the middle of a competitive commercial process with potential rights holders that cannot pre-empt the outcome of those negotiations.

Many Members raised the question of a hotel tax. As they would expect, there is a constant dialogue between Government and the council on all aspects of the games, including the budget. Birmingham City Council is committed to meeting its financial contribution for the games budget and it has published a plan for doing so without the need for a hotel tax. This will obviously be an ongoing debate, but it is worth noting that any new tax is ultimately a decision for the Treasury. It would also set a precedent, which we would have to consider carefully. Any such tax would also need to be balanced against the additional burdens on businesses in the hospitality sector, which, as we know, is facing challenging times at the moment. With my tourism hat on, I have to say that I am not convinced of the argument for a hotel tax at the moment.

With regard to the games village, we have confidence that all the games partners will play their part in delivering a truly world-class Commonwealth games in 2022. Birmingham City Council is currently finalising its full business case for the village, and a review of anticipated expenditure and funding arrangements is due for discussion by its cabinet on 17 March. I would like to reassure the House that we continue to work closely with the council and the rest of the partners to ensure that we have a great games.

Several Members raised the question of the living wage. I am confident that the games are already setting an excellent example on fair pay. The organising committee’s pay scales are set in line with civil service pay rates and all direct employees of the organising committee will therefore be paid above the level of the Birmingham living wage, and of course, all organisations awarded games contracts will be required to pay at least the Government’s national living wage. I am pleased to say that the national living wage is set to receive its biggest cash increase, rising by 6.2% from 1 April. Alongside this, we also need to consider the wider picture, which I have mentioned earlier, and we are ensuring that there will be lasting benefits for those living and working in the region, with many skills-enhancing opportunities.

There is a real commitment to ensuring that sustainability is a key pillar of the planning and delivery of the games. The organising committee has signed up to the UN sports for climate action framework, which aims to combat climate change and raise global awareness and action through sport. This is a proud first for the Commonwealth games movement and a key commitment to working towards our global climate change goals. The organising committee is in the process of developing its sustainability strategy for the games, and it will be released in the spring.

Regarding sponsors, the House will agree that it is critical that we raise sponsorship for the games in order to manage the public sector investment. Securing sponsorship and granting authorisations to associate with the games are a matter for the organising committee. It is still early days in terms of securing sponsorship partners, with three announced to date, but I would like to provide reassurance that my Department is in active discussions with the organising committee on the importance of promoting the games and their value through its sponsorship programmes. All potential sponsors will have to demonstrate their alignment with Birmingham 2022’s vision and mission, and an ongoing commitment to social values set out in the organising committee’s social values charter.

This is clearly a great opportunity for the United Kingdom. There is already great excitement and interest in the games not only in Birmingham and the west midlands but right across the country. We have many matters still to discuss, and I am looking forward to working with Members across the House in Committee to ensure that this important legislation reaches the statute book very shortly.

Question put and agreed to.

Bill accordingly read a Second time.

Shared Rural Network

Liam Byrne Excerpts

Monday 28th October 2019 Commons Chamber

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I thank the Secretary of State for advance sight of her statement. May I start by welcoming her professed enthusiasm for pulling this country out of the cyber slow lane? However, having read her statement, I am afraid to say that, on close examination, it would appear that our Teletext Tories will have to do rather better than this.

Let me start, for the benefit of hon. Members, with the points on which we agree. It is surely right that we dramatically step up the efforts to pull the country into the 21st century. We were a leader once. Now the networks that we have, like the targets that we have set, are well behind the best in the world; so while today’s progress is, I suppose, welcome, it is really half of a half-measure, when what was needed was a bold 10-year national switchover plan to deliver ubiquitous gigabit per second access to every corner of the country.

At our most generous, we welcome the commitment to 95% 4G coverage, because it is better than the 91% that we have today, but I am afraid that still leaves a 4,681 square mile area of the country where coverage will be non-existent or not good enough. As Members know, that is an area twice the size of Norfolk and much bigger than our largest county, North Yorkshire. Nor, it would appear, will progress be as rapid as was promised. In its manifesto, the Conservative party promised 95% coverage by 2022. Now the Secretary of State says it is 2025, and the industry briefing issued this morning says that will not be achieved until 2026.

Nor is the proposal as well financed as is needed. Ofcom says that the cost of sorting out all the notspots in the country is between £3 billion and £6 billion, yet just £1 billion has been announced, half from industry and half from Government. At best, it is half of a half-measure. Nor, it seems, is the deal with the industry actually done. As the Secretary of State made clear in the rapid canter through the final paragraphs of her statement,

“the Government’s support does not make a legally binding arrangement or contract and does not create any expectation that Government will act in that way.”

That is known as the small print; in this House, we call it, at best, a running commentary on what she is doing in the office this week. It is a running commentary on half of a half-measure that is four years late and leaves an area of the country twice the size of Norfolk without the coverage it needs. Members will therefore forgive us for not applauding this announcement from the rooftops.

However, to take this announcement seriously for a moment, which is more than the Chancellor obviously has, I suppose we should trouble the Secretary of State with some questions on her running commentary on half of a half-measure. Her Majesty’s Government have already backtracked on their commitment to full fibre roll-out by 2025. Can she reassure the House that this measure, such as it is, will not be diluted any further? Will she bless us with some interim targets? Perhaps they could be knocked together. If so, are we likely to see them any time soon? She told us today that the paperwork is not going to be signed until 2020, but she says that Ofcom has announced that it is moving ahead with a consultation on the spectrum auction, without coverage obligations. Why is Ofcom proceeding with that, given that the Secretary of State is commending this different approach to us this afternoon? Under the plans will consumers be able to access a choice of all four network operators in the 95% area that she has sketched out? Finally, I suppose the Secretary of State should be asked to tell us whether she agrees with Ofcom that £3 billion to £6 billion is going to be needed to eliminate all notspots in the country. If she does agree, will she explain why she is not bringing that proposal to us this afternoon?

Today our network ranks not as the first, second or third best in the world, but as the 26th. Some Eighty per cent. of our constituencies do not enjoy 4G coverage from all big four operators. I know the Secretary of State has done her very best today to dress this up, but we should call it what it is: too little, too late, for a country that deserves far better. [Interruption.]

[Nicky Morgan]

I thank the right hon. Gentleman—I think—for the response to the statement. The paltry support he got from those on his Benches when he sat down showed that they did not think much of it either. It was a typical grudging response from the Labour party, rather than a recognition that this is a significant step forward for consumers and for our constituents. Just to answer some of the questions he put on behalf of the Labour luddites in this House, let me say that the 95% target for 2025 is achieved by getting to just over 92% by 2026. This is a clear commitment given by the four mobile network operators, and it is actually much better than achieving it either through the spectrum auction or through any other roaming proposals. It is right that we should see that this is delivered properly and comprehensively across the UK, rather than rushing, although we are clear about the 2025 target.

On interim targets, we are obviously going to wait for industry to say how quickly it is able to do the roll-out, but I was clear in my statement to say that many areas will see this coverage much more quickly.

On the letter from Ofcom, it is obviously a decision for Ofcom as to whether to carry on with the auction coverage. However, I suggest that the right hon. Gentleman read Sharon White’s letter, because she is very clear that by following this proposal and sharing infrastructure,

“the four operators can deliver much greater improvements in coverage at less cost than they could do individually”,

and:

“We believe this is an efficient way of improving coverage which should provide a better experience for consumers than other alternatives like rural roaming.”

The right hon. Gentleman asked whether all four were included in the 95%, and that is absolutely the case.

This is a significant moment for improving mobile connectivity, which is absolutely essential to making sure that the UK plays its part in being able to develop, use and innovate the technologies of the future. I would hope that all those who hope for coverage in areas such as the west midlands, which is leading the charge in terms of the 5G test beds, under the brilliant mayoralty of Andy Street, could celebrate rather than offer this grudging response today.

Oral Answers to Questions

Liam Byrne Excerpts

Thursday 3rd October 2019 Commons Chamber

[Matt Warman]

I hesitate to speak on behalf of the Secretary of State in response to every aspect of that question, but I am confident that she does not need to bring a man to answer questions for her.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

We would have a world-class regime for shutting down fake news and disinformation if we had courts that were actually accessible in the fight against misbehaviour by big tech. The breakthrough in the Court of Appeal yesterday, in the case of Richard Lloyd, shows just how hard it is to bring to account big tech firms, like Google, that have clearly misbehaved. So when the Minister brings the online harms Bill to the House—he might tell us when he expects that to happen—will he look again at the proposals that we will table in Committee to make it far easier to bring class actions against some of the biggest firms on earth? He has the chance to level the legal playing field against big tech; will he tell the House that he is determined to seize it?

[Matt Warman]

We are absolutely determined to tackle these vital issues, because we know that the behaviour of social media companies is not always acting in the best interests of all our constituents. Of course we will look at any proposals that are advanced by the Labour party, but it is important to say that we need to get this right, and that requires us to work with industry, as well as against it.

Internet of Things: Regulation

Liam Byrne Excerpts

Thursday 3rd October 2019 Westminster Hall

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

What a fantastic debate we have had this afternoon. I congratulate my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) very warmly on securing it. I am extremely glad that she started with a brief account of the industrial revolution, which started in 1712 when the Newcomen steam engine was demonstrated at Dudley castle, a day that we commemorate every year on Black country day.

The debate that unfolded subsequently illustrated an important point. The steam engine was not perfected until James Watt joined Matthew Boulton at the Soho manufactory. It was 1789 before the first rotary steam engine was sold to a man called Peter Drinkwater, who created the first steam-powered textile factory and lit the spark on a textile revolution in Manchester, which was the beginning of Manchester’s claim. Peter Drinkwater’s factory manager was a man called Robert Owen, who went on to found New Lanark mill in Glasgow. It was 1825 before steam technology was incorporated into Locomotion No.1, which was set to work on the Stockton to Darlington railway. The point is that it was 113 years over which the steam revolution unfolded and began to transform every aspect of this country, including our economy.

The speech made by my hon. Friend the Member for Dagenham and Rainham (Jon Cruddas) was important in setting the wider stage and the bigger story, because the new technology required a revolution in law and regulation. Over the course of the 19th century there was not one factory Act but 22 different factory Acts and Bills, and over this century there will no doubt be just as many different attempts to reform, revise, regulate, legalise and make lawful or unlawful different aspects of the technology that we are debating here today. So my hon. Friend the Member for Dagenham and Rainham was right to say that what is needed from the Government is a plan for a just transition. We now understand what “just transition” means when it comes to climate change, but we need a plan for technology just as much, just as we need a plan for just transition given the new trade conflicts that are now ensuing. The rise of temperature, robots and conflicts will define our economy over the next 20 or 30 years, so we need not only just transition but just transitions, and at the moment we have nothing from the Government to tell us how that journey will be steered over the years to come.

As the Minister knows, because he was at the sharp end of these debates during the proceedings on the Data Protection Bill, which became the Data Protection Act 2018, our approach is rooted in a particular philosophy. Our inspiration is the work of Amartya Sen and the work that he set out first in “Development as Freedom”. Over the course of the revolution in this century, we must ask ourselves what capabilities we want every citizen in this country to have.

Adam Smith talked about how a man might need a linen shirt to go out in public. That was something that people needed in order to participate in civilised society at the time when Adam Smith was writing. These days the capabilities that people need will be different. We therefore have to ask ourselves what those capabilities are and how we turn them into rights. That is why, given the complexity and the regulation and re-regulation that is to come in this century, it would be wise now to set out a document of first principles. We believe that a Bill of digital rights will make the business of regulating far simpler over the next 50, 60, perhaps 113 years. Who knows what the life cycle of this debate might be?

We set out in the debate some of the rights that we think should feature in a charter. We set them out because we wanted to have a debate, and I am pleased to be able to have a bit of that debate this afternoon. I think that some of the issues are uncontested; I think we agree on equality of treatment and on the right to security. I also think we agree on the right of free expression, although we believe that we should incorporate lessons from Germany, which has pioneered the NetzDG legislation to take out hate speech online. I think we agree on equality of access, although, as my hon. Friend the Member for Newcastle upon Tyne Central said, ideas such as the national education service are important here, because of course they will transform rights to digital literacy. We believe in universal digital literacy; we believe that it is a fundamental right for the 21st century. We also believe in a right to privacy; I believe that is uncontested.

However, what is perhaps not agreed on is the kind of rights to algorithmic justice that my hon. Friend the Member for Cambridge (Daniel Zeichner) insisted on during the Committee stage of the Bill that became the Data Protection Act 2018. Crucially, we also believe that there should be some kind of right of ownership and control of data that is created through our use of technology. That was absolutely at the heart of the speech by my hon. Friend the Member for Newcastle upon Tyne Central. At some point, the Government will have to step up and provide some answers as to what they think about this issue. I hope that the Minister will begin that business of stepping up in about five minutes’ time.

These charters—these bills of rights—are meaningless without two further pieces of the puzzle. The first is an effective system of powerful regulation. We are now facing off against some of the biggest, wealthiest and most powerful companies on earth, yet the regulatory infrastructure that we have today would be described by Sidney Webb as a mish-mash: Ofcom; the Information Commissioner’s Office; the Competition and Markets Authority; the Payment Systems Regulator; the Financial Conduct Authority; the Advertising Standards Authority; and the Independent Press Standards Organisation. There is a slew of non-regulatory advisory bodies.

Something like 13 different advisers and regulators have some kind of bite in relation to what happens online. They all do an important job and they are all staffed by excellent people. My hon. Friend used to work for one of them—indeed, she helped to set it up—so she knows very well how long it takes to set up a regulator or to merge regulators. Consequently, we are not calling for some kind of bonfire of the quangos here. What we are asking for is for some proper thought about how those 13 different regulators and advisory bodies might number something closer to one—not one, but not 13, either. We believe that we will have to start bringing these regulators together, if we are to concentrate the firepower that is needed to take on the biggest and most complicated regulatory challenge in human history.

[Chi Onwurah]

I thank my right hon. Friend for giving way and for the excellent comments that he is making, which have raised some of the key issues we face. In 2002-03, the then Labour Government held a wide-ranging review of the communications sector and the many regulators that existed for television, for radio and for spectrum, etc. Then, in concert with the industry sector, civil society and so on, they developed a plan to bring them all together in Ofcom. That process took time, but it also built consensus and agreement about what the key challenges were. In addition, it enabled the right technical talent to come together. Could that not be a model for developing the right regulatory approach to these challenges?

[Liam Byrne]

It absolutely could and it absolutely should, because the truth is that that work will have to happen at some point, so all we are arguing about is when and how. It is inconceivable that we will have 13— now 14—different regulators and advisers; the Data Protection Act 2018 brought in a new organisation, or institution, which is the Centre for Data Ethics and Innovation. We cannot keep multiplying these regulators and allowing them to proliferate.

Equally, however, we cannot take the approach that was taken back in 2010-11, when the Government sought to wipe out many different quangos. They had their bonfire of the quangos and it sounded excellent in the pages of The Daily Mail. Of course, in practical terms, it was a bureaucratic disaster and many of the efforts to abolish organisations that were doing an important job had to be reversed. It was a complete waste of time, energy and money, at a time when civil service bandwidth was under tremendous pressure. So what we are asking for is a road map—a proper one—with a timetable to be debated, in order to bring together the regulatory firepower that is needed to hold to account the biggest companies on Earth.

There is a final piece of the puzzle. We have discussed rights and regulators; the third piece of the puzzle is redress. If we do not have accessible forms of redress, this debate is a waste of time. Yesterday, in the Court of Appeal, the three senior judges handed down a challenge to the Minister by saying that the process that we suggested during the passage of the Data Protection Act 2018 for class action should be implemented. My key question to the Minister is whether he will introduce what is required under that 2018 Act, which is the review that was promised of opt-out class actions, given the advice that was handed down to him in the judgment on Lloyd v. Google in the Court of Appeal yesterday.

For those who have not seen the case, it began in November 2017 and was brought by Mr Richard Lloyd on behalf of millions of iPhone users who, he alleges, had their personal data taken between 2011 and 2012. The Court of Appeal basically ruled that that representative action could now proceed. It found that personal data has economic value—the principle at the heart of the contribution of my hon. Friend the Member for Newcastle upon Tyne Central; that a violation of that right to privacy was a damage; that individuals do not need to demonstrate pecuniary loss and distress; that a loss of control of personal data is the same loss and the same interest, as if there had been economic loss or economic damage; and finally, and perhaps most importantly for the Minister, that representative actions, in which people opt out rather than opt in, are effectively the only way in which such claims could be pursued.

The judges have underlined the argument that we underlined a number of months ago in the Committee that considered the Data Protection Bill and which is at the core of this debate: if we do not have redress, those rights, even the rights that we have enshrined in the Act, are meaningless. We are talking about humble individuals taking on some of the biggest firms on earth. The only way those rights can be made a reality is if we allow effective remedies in court. We have now heard from the judges that those effective remedies are most likely to be class actions. I look forward to the Minister confirming that he will introduce that review forthwith, so that we can at least begin to make some progress on the critical issues that my hon. Friend the Member for Newcastle upon Tyne Central has highlighted to the Chamber.

--- Later in debate ---

[Matt Warman]

The hon. Lady pre-empts my next point: all of this is predicated on consent. The consumer has to understand that they are giving up their data for a particular purpose and a particular benefit. As the hon. Member for Dagenham and Rainham (Jon Cruddas) said in what was a fascinating speech—albeit one where I wondered if I had at times transcended, if not humanity, at least this debate—these are fundamental issues that have effects far beyond what we might think of in an arcane debate about the ownership of data. I commend the approach that says we are dealing with issues that go far beyond a debate about technology, which will have an impact on huge aspects of humanity itself, whether we get them right or wrong. That is why it is important to consider them in that wider way.

The hon. Lady was right to point out that, in some ways, the internet of things represents a whole new chapter of how technology is becoming more common in our homes and making our lives easier and more enjoyable, but potentially also more fraught with decisions that we need to be aware we are making. I will trump the hon. Lady’s numbers: Statista says that by 2025, there will be 75 billion internet-connected devices worldwide—I am sure other analysts are available to provide even higher numbers. In our estimates, that translate to some 15 devices per household by next year. The internet of things is very real; it is already with us.

[Liam Byrne]

Before the Minister moves on, I just want to clarify one point. Is it his position to accept that data that is generated as user data does have an economic value, but that it is basically fine for the individual to surrender that economic value through the way in which they consent to use a service?

[Matt Warman]

I feel like the right hon. Gentleman is going to accuse me of wilfully misunderstanding his question, but it is obviously fine for an individual to choose what they do with their own data. If that involves, as he puts it, surrendering the data for a particular purpose, that is their decision to make. I am not sure that that is quite the question he was asking. The point about consent being absolutely in the hands of the user is the most important one to make. That is why the cyber-security of the products that the hon. Member for Newcastle upon Tyne central referred to is so hugely important, in many ways; it is why we have put so much effort into delivering the code of practice for consumer IOT security.

The hon. Lady mentioned the sale of potentially insecure devices, which is one of the key planks that we are seeking to address. People want to have implicit trust in their devices and they need to have confidence in how their data is being used, not just when they first purchase that device but into the future as well.

[Liam Byrne]

The Minister is helpfully helping me join some dots. Why does he think that it is right for the Government to intervene to ensure that the consumer has particular cyber-security protections but not to ensure that the consumer enjoys any particular economic protections, for example around the value that is created through third-party use of their data?

[Matt Warman]

It is obviously about a balance between different situations. The Government, in a host of ways, provide a degree of opportunity for the kind of protection that the right hon. Gentleman seeks. In other fields there are already opportunities for redress in extreme circumstances. In some ways he and the hon. Member for Newcastle upon Tyne Central are asking for greater coherence in this space, and others. It is precisely for that reason that my Department is developing the strategies that they both referred to. On the one hand he seems to attack the bonfire of the quangos, but on the other he seemed to want fewer regulators, so I am almost reduced to asking what his favourite number is.

[Liam Byrne]

My point is simply that according to the Chancellor of the Exchequer I will soon not be allowed to sell my labour for less than £10.50 an hour. The Government have put a floor on the economic freedom that I enjoy, and that is giving me a degree of economic protection. Why does not the same principle apply to the way in which my data as opposed to my labour is exploited?

[Matt Warman]

That is a philosophically interesting question but it is also obvious that at the moment data is readily given up in exchange for a service. I am not sure whether the right hon. Gentleman would therefore seek to put a value on the service and say, “That service, whether offered by Facebook or whoever, should not be worth less than a certain amount.” That seems to be the logical conclusion of his argument, which is why I say it is perhaps more an interesting philosophical question than a practical one.

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[Matt Warman]

Essentially I agree with the hon. Gentleman that it is obvious that not everyone reads the terms and conditions of every single thing they have signed up to for any website; but it seems to me that Government’s role in this space is not to stop people making those decisions. It is to make sure that people have a better understanding of the decisions they make, and that they trust the companies that are doing whatever it may be with their data. That obviously requires us to put certain constraints on the behaviour of companies, as we do in every other circumstance. However—and I do not think the hon. Gentleman is suggesting this—it should surely not be for us to say that people should not be allowed to make certain decisions. I think that on the Government side of the House we would be keen to free people up to make whatever decisions they reasonably want to make.

[Liam Byrne]

The Minister is being incredibly generous and this is the last time I shall intervene. To round out the picture that my hon. Friend the Member for Cambridge (Daniel Zeichner) is presenting, network effects mean, obviously, that in social media land we have monopolies—or, if not monopolies, certainly oligopolies. It has long been an established principle of consumer welfare protection that there should therefore be some kind of price protection. In a debate about how we protect and enhance the economic welfare of the citizen if we do not recognise a defined value for their data—which they are not freely surrendering into a free market, but giving over to a monopoly—surely the quid pro quo is some kind of price regulation on the other side. The Minister cannot have it both ways.

[Matt Warman]

The right hon. Gentleman raises a lot of points in one short paragraph. I understand what he accuses me of seeking, when he speaks of having it both ways. Actually the services that are offered digitally, ostensibly free, are different from services in a physical world where we might talk about the kind of monopoly that he has mentioned. In that sense, all he is doing is underlining why we need to get things right, in a way where the digital challenges are understood, without reinventing the wheel and pretending that all online challenges are necessarily different from those in the physical world. It is an emerging picture, which is why I refer back to the technology innovation strategy that we published in June 2019 and that includes new measures, such as the Spark procurement programme, to enable Government and the wider public sector to benefit from new digital technologies and the service that can be provided by stimulating the UK’s world-leading tech sector. It is also why we set up the Centre for Data Ethics and Innovation, which will allow us to consider how we might best benefit from those opportunities and ensure that we seek not to design in the kind of prejudices that the hon. Member for Newcastle upon Tyne Central mentioned. One of its first papers is on smart speakers and voice assistants and on how industry and Government can work together to ensure that the products do what they are supposed to and that users consent to them.

We should also be mindful that the 75 billion devices, or however many there turn out to be, will have a physical environmental impact. I am therefore pleased that as part of its resources and waste strategy, the Department for Environment, Food and Rural Affairs has committed to updating the existing guidance for local authorities on managing the collection of smart items and similar electricals. That might sound like a minor point, but it is probably less minor than others.

The hon. Lady mentioned the Prime Minister’s speech at the United Nations General Assembly. I am not delivering the rhetorical flourishes that he delivered late at night at the UN, but it is important to say that he made that speech in that location because this country is already a world leader in this area in so many ways. It is right that our Prime Minister is addressing these issues and the legitimate public concern.

It is also right that, as several hon. Members have mentioned, when we seek to regulate in this area and on online harms, we in this country and across the parties should be proud that the UK is a liberal democracy that seeks to lead the way. We have an opportunity to shape a global debate, as my Opposition counterpart, the right hon. Member for Birmingham, Hodge Hill, observed.

In some ways, the greatest thing we can do is use Britain’s status in this area and on the world stage to try to develop global standards. The hon. Member for Newcastle upon Tyne Central mentioned those of the ETSI, which in its way is world-leading: it seeks to produce standards that can be replicated or mirrored globally, addressing some of the coherence that risks arising in the area. She says that we are not providing leadership and quotes the Prime Minister’s speech, but I say that his speech demonstrates the existing status of Britain’s leadership in the area already. If I am being kind to her, although we disagree on several minor issues, I should say that she too would agree that Britain has a huge opportunity to capitalise on its place in the world on this issue.

In June, we published a White Paper, “Regulation for the Fourth Industrial Revolution”—we are sticking to that number, although I understand that there is a dispute over whether it is correct. It confirms that the Government will establish the regulatory horizons council to identify the implications of precisely the sort of technological innovation that the hon. Lady spoke about, and to advise the Government on regulatory reform so that we can take exactly the kind of steps that she highlights.

In that process, security should not be an afterthought; it has to be embedded. Thus far, we have taken the approach of working with industry, and industry is now saying to Government—the hon. Lady will have heard these calls as well—that greater clarity, particularly in regulation, will help consumers and the industry itself. Many of the internet-connected devices that are currently on the market still lack even the most basic cyber-security provisions. Some 90% of 331 manufacturers that supply the UK market and that were reviewed in 2018 did not use a comprehensive vulnerability disclosure programme up to the level that we would expect; I think that hon. Members on all sides would agree that that is unacceptable. Organisations have a duty of care to their customers, to help make sure that they can access and use their internet-connected products safely.

Although Government have previously encouraged industry to adopt a voluntary approach, it is now clear that decisive action is needed to ensure that stronger cyber-security is built into these products by design. That is why we launched our consultation on secure consumer IOT in May. That consultation built on the extensive work to which I have referred. It allows us to talk about minimum security principles for connected devices, which my Department elaborated on in the document published last year. Our focus will be on ensuring that there is a baseline of cyber-security built into all consumer IOT products by design, to eliminate the most harmful practices.

These are, I freely admit, low-hanging fruit. We wish we did not have to tackle issues such as forbidding the use of universal default passwords, ensuring that manufacturers provide a contact point for security researchers, and making sure that consumers are informed at the point of sale of the minimum length of time for which security updates are provided for their device. Those measures address some of the issues raised by the hon. Member for Newcastle upon Tyne Central, and we would like to go further in due course. We will respond on what that will look like as soon as possible after the consultation.

We are advocating a staged approach to enforcing those principles through regulation. Obviously, there is always a balance to be struck between regulation and legislation, and in this case I think it will be a bit of both. We will publish the formal response to our consultation on the regulatory approach later this year, but we are mindful of the urgency of this work. Our approach must keep pace with the technological change identified by the hon. Lady. We have said that we will review the code of practice every two years. The development of the code of practice may not sound exciting, but as the hon. Lady acknowledged, and as the hon. Member for Dagenham and Rainham said, these things are hugely far reaching, even if they do not sound as exciting as some people might wish, because then they would attract the attention they perhaps deserve.

There is major business support for our approach, including from the signatories to the cyber-security tech accord. I always hesitate to say “major business support”, because businesses will not always necessarily greet with enthusiasm the actions of a sensible regulator. Some would say that this is a sign of success. We will develop the strategy, but ultimately the security of the internet of things is a global challenge and it requires a global effort to get it right and to shape those norms.

In February 2019 we worked closely with international standards bodies and the National Cyber Security Centre to make sure that we publish the ETSI standard to which the hon. Lady referred, though without the complementary tone it deserves. None the less, I understand her point.

We do not think it is right to expect all users of all internet-connected devices to become cyber-security experts, and we recognise the need to take from them the burden of differentiating between good and bad. That is why we have been clear with industry what good practices will look like, and we wish to support manufacturers of all sizes to embed them and to support retailers to make sure that they are obvious.

Online Abuse

Liam Byrne Excerpts

Monday 29th April 2019 Westminster Hall

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Ryan. I, too, congratulate Katie Price and her family on bringing forward the petition. I pay tribute to my hon. Friend the Member for Warrington North (Helen Jones) for an outstanding speech to introduce the debate. It was brilliant because it was based on a thorough analysis of the petition. It is good to see the Petitions Committee working in exactly the way that it should.

I do not want to say too much, because our position on how to tackle this problem has been rehearsed with the Minister a number of times over the last year and a half, but there are three or four things that I want to put on the record. First, it is worth remembering that the scale of abuse is staggering. Three quarters of people with learning disabilities and autism say that they have been victims of hate crime. That is a comprehensive failure as a society and a country to keep our neighbours safe. God knows what sacrifices we have made over the last 50 or 60 years in the defence of democracy and free speech. We live in a country where some of our neighbours are hounded out of those privileges; we have to look at ourselves and conclude that we have so much more to do.

The policing environment for online hate is failing comprehensively. There is a very old concept in policing known as keeping the Queen’s peace. Online, the Queen’s peace is simply not observed. I disagree slightly with the right hon. Member for Arundel and South Downs (Nick Herbert) because it is simply inconceivable ever to expect a police force to police this waterfront. Some time ago, people started producing memes of what goes up online every 60 seconds. As far back as 2017, the statistics were half a million tweets, 500 hours of video and 3.3 million Facebook posts. There is no way any police force on earth will police that waterfront and keep it safe and sound to protect and preserve the Queen’s peace throughout that space. Therefore, we have to put the onus back on some of the most profitable companies on earth.

In the last reported quarter, Facebook made something like £5 billion of net earnings. That means that in the course of this debate, it will have made more than £3 million of profit. It is one of the biggest and most valuable companies on earth, yet it gets away with supporting—not orchestrating or colluding in, but certainly enabling—the abuse of fellow citizens of our society. The time has to come when we say to the wealthiest titans on earth, “Enough is enough.”

[Nick Herbert]

The right hon. Gentleman should not traduce what I said. I was quite clear that action needed to be taken across the board, and that social media companies had to accept responsibility. I did not say or seek to imply that the police could police the range of abusive comments across social media. Where they trespass into the criminal, law enforcement agencies do have a responsibility to act, and we need to ensure that they are capable of doing so.

[Liam Byrne]

I am grateful for that because I believe we are on the same page. I agree with the right hon. Gentleman that the police forces in this country will need to be radically reconfigured. The time when a police constable might turn up to a burglary and advise how to target harden the home should be about to go, because the cyber-security of the property and the family in question will often be much more important. At the moment, however, in Birmingham we cannot get police to investigate even violent abuses because there are no police—they have been cut in the west midlands to the smallest number since the force was created in 1974. That is a debate for another day.

Four significant changes need to happento the online regulatory and policing environment. I think the Government have accepted the first: there needs to be a duty of care on social media companies. The concept of duty of care is quite well established in law. Its legal tradition goes back to the early 1970s and it is tried and tested. If I went out and built a stadium here in London and filled it full of people, there would be all kinds of rules and regulations that would ensure that I kept those people safe. If I went out and built a similar online stadium and filled it full with all kinds of nonsense, no such regulations would bite on me. That has to change. We have to ask these firms to identify the harms their services and products might cause and to do something about them, and we have to hold them to account for that.

The second idea is much tighter regulation of hate speech, which the Government have not yet accepted the need to look into. We have raised a number of times in debates like this the approach taken by the Ministry of Justice in Germany. Its Network Enforcement Act—or NetzDG law for short—has created a much more effective policing environment for tackling online hate speech, and it has done so in a way that keeps Germany well within its Council of Europe obligations on protecting free speech. It is time we looked at that because, as the report that has come through from the German Ministry of Justice shows, it is beginning to work.

I am told that something like one in seven Facebook moderators now works in Germany. Google, Twitter, Facebook and YouTube have had to take down a significant amount of hateful material. Looking across the Council of Europe space at the countries that are signatories to the European convention on human rights, which includes the protection of free speech, it appears that Germany is leading the way in creating an effective policing environment to tackle hate speech. Surely, it is time for the Government to look at that a little harder.

The third thing we need is a different kind of regulator. Again, I think the Government have accepted that. There are something like nine different regulators with some kind of regulatory, policing or overwatch powers in the internet space. That is too many. We are not saying they need to be boiled down to one, but that number needs to be closer to one than to nine. That means we have to overhaul the regulators, so we are looking forward to seeing a new Bill whenever we see the Queen’s Speech and a new legislative programme for the next Session.

The final change we need, which is more long term, is a bill of digital rights for the 21st century. The reality is that the online world is going to be regulated, re-regulated and re-regulated again over the course of this century. It is therefore important that we set down some first principles that provide something of a north star to guide us and give companies a bit more predictability as we navigate the changes ahead. At the core of that bill of digital rights should be the right to universal digital literacy. Ultimately, as a country, we are all going to have to become more digitally literate so we can start putting back in place some of the norms and boundaries of the civilised discourse that once were the hallmark of democracy in this country.

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[Margot James]

That is an excellent suggestion. I am happy to put that to my hon. Friend the Minister for Sport, and if the hon. Lady and the hon. Member for Warrington North, who chairs the Petitions Committee, would like to attend that meeting, we will set that up. Yes, we will definitely invite all football authorities to that meeting.

The hon. Member for Warrington North also talked about the effect on moderators. Thousands of people are now employed by tech companies to moderate content and make decisions on whether it crosses the threshold and should be taken down. We are looking more and more to systems of artificial intelligence to do as much of that job as possible, precisely for the reasons she set out. It is a horrendous job to do, and I imagine that over time it ends up affecting the moderators’ mental health. On a positive note, 75% of the 4 million videos that YouTube has taken down in, I think, the past six months were identified and removed via artificial intelligence. That does offer us some hope for the future.

[Liam Byrne]

The Minister is being generous. The only danger with introducing such statistics, which all the social media companies are desperate to put into our hands, is that it creates the impression that somehow they are doing enough when they are not. We will never get to a solution to this problem by relying on voluntary action. That is why the law needs to change, and enforcement needs to change.

[Margot James]

I certainly agree with the right hon. Gentleman. I am sorry if I gave that impression; I wanted to offer up some hope that over time more and more solutions for removal will be technological so that moderators, who have a terrible job to do, do not have to spend their working lives wading through this horrendous content. To clarify, that is absolutely not at all to say that companies are doing enough. They are doing more, but it is by no means enough as yet.

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[Margot James]

I see that we have had a change of Chair. It is a pleasure to serve under your chairmanship as well, Mr Austin.

Coming back to the point made by my right hon. Friend the Member for Arundel and South Downs, we intend that the new system of regulation will take some of the burden off the police and place it on to the tech companies. Those companies should be accountable for taking care of their users by eliminating such content, hopefully before it comes online but certainly very swiftly after it is reported.

The law in Germany, which the shadow Minister referred to, requires content to be taken down within 24 hours of companies knowing about it; if it is later than that, swingeing fines can be applied. We want to create an environment in which companies deal with matters themselves and use less and less of our valuable policing time for the privilege.

As I mentioned earlier, we have committed to developing a media literacy strategy—one of the proposals made by Glitch—to ensure that we have a co-ordinated and strategic approach to online media literacy education. We have published a statutory code of practice for social media providers about dealing with harmful contact, and we have consulted on the draft code with a variety of stakeholders, including people with disabilities. The code includes guidance on the importance of social media platforms having clear, accessible reporting processes and accessible information on their terms and conditions, highlighting the importance of consulting users when designing new software, new apps and new safety policies.

There has been some discussion about whether the law itself is adequate, particularly with regard to hate crime. I will say a few words about the Law Commission’s review. In February last year the Prime Minister announced that the Law Commission would undertake a review of current legislation on offensive communications to ensure that laws are up to date with technology. The Law Commission completed the first part of its review and published a report at the end of last year. It engaged with a range of stakeholders, including victims of online abuse, the charities that support them, legal experts and the Government. The report concluded that abusive communications are theoretically criminalised to the same or even greater degree than equivalent offline behaviours—I did not necessarily accept that verdict myself—but practical and cultural barriers mean that not all harmful online conduct is pursued through criminal law enforcement to the same extent that it is in an offline context. I think the consensus in this room is that that is definitely the case.

The Government are now finalising the details of the second phase of the Law Commission’s work. The Law Commission has been asked to complete a wide-ranging review of hate crime legislation in order to explore how to make hate crime legislation more effective, including whether it is effective in addressing crimes targeting someone because of their disability. I urge Members present and organisations that might be taking an interest in this debate to give their input to the review.

[Liam Byrne]

Before the Minister finishes, I am grateful for the opportunity to ask her whether she thinks that the Law Commission’s work is going to finish in time to allow her to bring a Bill before the House in the next Session.

[Margot James]

I am afraid that I cannot give the right hon. Gentleman that assurance. We are not sure when the next Session will commence, but I fear that the timing of the second phase of that work means that it will not be carried out in time to form the basis of much-needed changes to the law, which I hope the Law Commission will propose. We might have to wait until the following Session. Having said that, the Law Commission might have an opportunity to provide some interim results from its inquiries, and there is nothing to stop an hon. Member introducing a private Member’s Bill, should the opportunity arise, to look closely at the subject and bring something forward for debate.

This review of hate crime is very necessary. One of today’s contributions mentioned the fact that hate crime is aggravated by certain characteristics, including disability, but that might not go far enough. These matters and a review of hate crime are part of the remit of the second phase of the Law Commission’s work. I will also be suggesting to the Law Commission that it looks at the issue of online gender-based hate crime. As the hon. Member for West Ham mentioned, a significant amount of online abuse is misogynistic—it devalues women, it degrades them sexually and it amounts to gender-based hatred. There is a powerful case for women to be afforded the same legal protection against misogynistic online abuse as that given to people with other protected characteristics over which they have no control.

In conclusion, I thank Members for their thoughtful contributions and the Petitions Committee for the huge amount of work it has done on this vital subject. I look forward to continued engagement from across the House as we develop the proposals set out in the online harms White Paper.

Oral Answers to Questions

Liam Byrne Excerpts

Thursday 11th April 2019 Commons Chamber

[Jeremy Wright]

The hon. Lady is right that the sanctions available to the regulator will be important here. The White Paper includes a number of options. We will want to look at remedial notices and at fines, potentially comparable to General Data Protection Regulation fines, which, as she knows, are very substantial indeed. We will also want to consider individual director liability and, at the top end of the scale, internet service provider blocking for those websites that refuse to co-operate with what the regulator requires.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The rocket fuel for fake news and disinformation is the tidal wave of dark money flowing into dark ads that are targeted with psychographic precision. Vote Leave has admitted breaking the rules—cheating by pumping in way over the odds during the referendum campaign—but the Secretary of State has done nothing to ensure that we have the transparency we need ahead of a possible second referendum. Will he think again and bring in the honest ads Act we have proposed, so we can finally see who is paying for what—not least the dark ads targeted at Members of this House?

[Jeremy Wright]

As I am sure the right hon. Gentleman will recognise, it is important that the Government act collectively on this matter. As I indicated to the hon. Member for Sunderland Central (Julie Elliott), we will shortly see some work by the Cabinet Office, which will deal with some of the questions around transparency that he perfectly fairly raises. However, I hope he will also accept that this Government have given the Information Commissioner additional powers to enable her to take the sorts of actions that he would wish to see taken. Of course, it is for the Electoral Commission and the Information Commissioner to act in these spaces.

Draft Mobile Roaming (EU Exit) Regulations 2019

Liam Byrne Excerpts

Tuesday 26th February 2019 General Committees

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Gray.

In front of the Committee is another example of how ill-prepared the Government are for a no-deal situation, which is why the Prime Minister should have moved much earlier to take no deal off the table.

The draft instrument enshrines several important proposals, such as the need for transparency to protect consumers, but it falls hopelessly short of the level of consumer protection we ought to be able to promise our constituents in the event of a no-deal Brexit. In particular, it proposes an extraordinary degree of deregulation, which will allow the protection against exorbitant roaming charges to be stripped away from our constituents in the event of a no-deal Brexit.

I do not accept the Minister’s argument that it was too difficult to broker some kind of agreement with UK mobile companies, which are big, global and highly profitable firms. I therefore do not accept that the consequences that she spelled out will come to pass if we do not pass the draft instrument. That is simply a failure of policy work and of political imagination.

The Opposition cannot support a draft instrument that will shear away protections that many of our constituents have against exorbitant charges while travelling through Europe. We will therefore oppose the draft regulations.

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[Margot James]

I thank Members for their remarks. We are supportive of the regulations because we believe, given that the country has decided to leave the European Union, that we are at least protecting consumers against bill shocks and inadvertent roaming.

The right hon. Member for Birmingham, Hodge Hill asked why we cannot impose a price control. If we were to try to do that, it would result in either the company’s entire user base having to accept higher prices or individual users who partake in roaming having to pay higher prices. For the benefit of consumers, we have put in place the monthly cap of £45, at which point they are notified that they are running towards a higher bill. They then have to exercise choice as to whether they want to use more data or use their phone further during their travels.

[Liam Byrne]

The Government are prepared to accept caps on energy prices, yet they are not bringing that principle to mobile phone policy. If we have energy caps, why can we not have mobile phone caps?

[Margot James]

I recall that an argument against energy caps was that they would establish a precedent. The Competition and Markets Authority found a vast amount of consumer detriment in energy. Many things were tried to get energy companies to be fairer in their billing practices. In the end, a price cap was agreed. It is too soon to assess the outcome of that decision, and it is certainly too soon to apply it at random in other markets.

We have introduced safeguards and the Regulatory Policy Committee assessed the impact assessment and made a conclusion on whether prices may rise in the future. I appreciate the comment by the hon. Member for Linlithgow and East Falkirk that the fact that companies have no plans to introduce price rises is no guarantee, but those companies have made that statement of good intent. They do not want to raise prices for their consumers. We must not force operators so that they are not effective in the future.

I have explained why we have not introduced price controls. It is a commercial matter—this is a market. We have sought to provide as much protection as possible, but the ultimate protection against roaming charges lies with the country staying in the single market, which it has taken the decision not to do. In those circumstances, the regulations are the best possible outcome for consumers, and I commend them to the Committee.

Question put.

Draft Data Protection, Privacy and Electronic Communications (Amendments Etc.) (EU Exit) Regulations 2019

Liam Byrne Excerpts

Thursday 14th February 2019 General Committees

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Evans. The draft regulations are a wise precaution, although it is slightly ironic that Her Majesty’s Government are presenting us with what is basically a foundation stone for the permanent customs union and free trade agreement on data that we have been advocating for the United Kingdom in the round. I look forward to Government Members, including the hon. Member for Wycombe, presenting a united front this morning on laying this important foundation stone for a critical part of our customs union with our nearest neighbour.

The draft regulations are a wise precaution because 43% of tech companies in Europe are based in our country and three quarters of our cross-border data flows are with our European neighbours. In introducing them, the Minister is dramatically constraining this country’s ability to strike free and unfettered trade agreements with other countries around the world, because on the critical issue of data, she is locking us into the European Union’s provisions. The Opposition fully support that approach, but we have five important questions for her to answer. The draft regulations are just one piece of the jigsaw, so it is difficult for us to sign them off without having due regard for the full picture of regulation required.

Regulation 8 will write into UK law a derogation from GDPR rules on age. As the Minister knows, the GDPR gives countries latitude to lower from 16 to 13 the age at which consent is deemed to have been given; she is now writing the 13 limit into UK law. During the passage of the Data Protection Act, the Opposition were not particularly comfortable with that approach, which she is asking the Committee to sign off before presenting her much anticipated White Paper on internet harm. Since she is asking us to sign off a derogation that will lower the age of consent to 13 before we know what legal provisions will safeguard our children against bad social media firms, perhaps she could say a little more about whether Her Majesty’s Government agree with the duty of care architecture that we proposed before Christmas.

Furthermore, the draft regulations will be meaningless unless the Information Commissioner has the resources to enforce them. The Minister managed to get through her speech without saying anything about the additional resources that the commissioner will enjoy in order to enforce such a critical part of our regulatory architecture. Nor did she say anything about whether the draft regulations will increase our chances of getting an adequacy agreement with the EU, about whether they will accelerate the timetable for getting such an agreement, or about her Department’s contingency plans in case there is no adequacy agreement.

The Opposition broadly support the draft regulations; indeed, we think that a permanent customs union for data should be replicated across the piece for UK trade with the European Union. However, the Minister has important questions to answer before we can give the draft regulations our consent.