Telecommunications Infrastructure (Leasehold Property) Bill

Lord Clement-Jones Excerpts

Report stage & Report stage (Hansard) & Report stage (Hansard): House of Lords
Monday 29th June 2020 Lords Chamber

Moved by

[Lord Clement-Jones (LD)]

1: Clause 1, page 1, line 11, after “premises” insert “(which include premises where a tenant is in exclusive possession)”
Member’s explanatory statement
This amendment would clarify that tenanted premises are included under the provisions of this bill.

[Lord Clement-Jones (LD)]

My Lords, it is a mixed pleasure to be back in the Chamber. In her speech in Committee on 19 May, the Minister said in response to my amendment:

“I believe that the noble Lords who have tabled the amendment are seeking to ensure that tenants are covered by the Bill. If noble Lords are indeed seeking clarification on that point, I am able to confirm that as currently drafted, the provisions in this Bill can be used by people who rent their homes.”


She went on to say:

“This includes people with assured shorthold tenancy or assured tenancy agreements which, as many noble Lords will be aware, are the most common forms of tenancy agreement.”—[Official Report, 19/5/20; col. 1030.]


In her subsequent letter, the Minister said:

“As drafted, this Bill allows a lessee in occupation—i.e. someone who has a leasehold agreement with a person able to confer on an operator or otherwise be bound by a code right—to request that an operator provide an electronic communications service to the premises so occupied. It is that which is the trigger for the whole process set out in the Bill. It is for that reason that the Bill does not use the language of landlord and tenant law, which was one of the—entirely understandable—points made during the first Committee session.”


The Minister then referred to the definition of lease set out in Street v Mountford cited at [1985] UKHL 4:

“An agreement is a lease if it provides for (i) exclusive possession, (ii) of defined premises, (iii) for a fixed or periodic term and (iv) at a rent.”


She said:

“The distinguishing feature of a lease, as opposed to a licence, is that the tenant has exclusive possession of the let property.”


The letter continued:

“My understanding is that a tenant at will could be a person able to make a request that would trigger the Part 4A process… If an agreement for occupation constitutes a lease, then the fact that it is renewable does not change the Government’s intended approach. As I mentioned at the first Committee session ... My understanding is that the impact of that would therefore be that so long as a renewable tenancy has the hallmarks of a lease then it would not fall outside the scope of this Bill. I must stress again, though, that this will be both a matter of substance that will turn on the facts of each case and ultimately, the interpretation of the law will be a matter for the courts.”


All this added some clarity but, in the view of my noble friends and I, not enough. The noble Baroness, Lady McIntosh of Pickering, said quite rightly in Committee:

“Leasehold properties are a very grey and disaffected area of property rights.”—[Official Report, 19/5/20; col. 1025.]


I agree with the noble Baroness. The noble Lord, Lord Liddle, referred to his concern for

“young people, including students, living in short-term lets in multi-occupier buildings—for instance, in old council blocks where someone has bought a flat to rent it out and their main occupiers are students on short-term tenancies.”—[Official Report, 19/5/20; col. 1032.]

This amendment is designed, as crisply as possible, to dispel any lack of clarity or misapprehension to ensure that we have as inclusive as possible a definition of those who could be regarded as tenants, without straying into the territory of licensees or licences, which do not grant exclusive possession. If there is exclusive possession, even if the language of “a licence” is used, the occupier will be covered by the code. I am concerned to ensure that all tenancies are included, even if not, strictly speaking, leases.

Tenancies in the public sector are of a particular nature, and we need to make sure that they are clearly covered. For instance, the amendment would make sure that introductory or probationary tenancies in local authority housing, flexible or joint tenancies, and what are called demoted tenancies are all covered, as well as tenancies by succession and starter tenancies from housing associations. It would include written or verbal agreements. The position of a tenant at will or renewable tenancy, if there is such a residential status, may also demonstrate the need for this clarification. All these tenancies will have exclusive possession and it needs to be made clear that they qualify, for the purposes of the code.

What could an objection to any of these examples be? If the amendment is unnecessary or tautologous, it is innocuous. If I am right, however, and clarification is needed for a number of ordinary tenancies to be covered, the case is made for its inclusion. I beg to move.

[Lord Fox (LD)]

There is nothing I can add to the comprehensive speech of my noble friend Lord Clement-Jones, so I shall sit on my hands.

--- Later in debate ---

I draw your Lordships’ attention to new paragraph 27F(1)(b) of the code inserted by the Bill. It permits an operator who has successfully applied for a Part 4A order to connect not only the property of the individual who made the initial service request but, provided that there is no additional burden on the landowner, all the other premises. In the context of a multiple-dwelling building, that could therefore mean the rest of that block of flats. Therefore, I hope that it is clear that the Bill already makes significant provision for the interests of operators. With that, I ask the noble Lord to withdraw his amendment.

[Lord Clement-Jones]

My Lords, I thank the Minister for her response. I particularly thank the noble Baroness, Lady McIntosh of Pickering, and the noble Lord, Lord Adonis, and the noble Lord, Lord Naseby, for his reflections on tenancies and the complexities of that subject.

I agree with Amendments 2 and 3 in terms of the desirability of expanding the definition of those who have access to fibre broadband. However, I also agree with the noble Lord, Lord Livermore, that perhaps the most convenient point for the examination of expansion of rights under the Electronic Communications Code is at a point of review, such as proposed in our Amendment 7, which we will discuss later.

Probably my first comment in response to the Minister is that I would not really have started from here regarding the way in which the definitions are provided under the Electronic Communications Code. That is borne out by the very fact that on many occasions in the Commons and in Committee here we have debated the width or not of the definition of “lessee” and “lease”. We have tried to refine that and make sure that what it covers is utterly clear beyond peradventure. I believe that it is important to send a very clear signal to tenants who rent that they are covered by the Bill.

The noble Lord, Lord Livermore, was also correct to say that, if the Government felt so strongly about it, they should have offered an amendment of their own. We need to be absolutely clear about who has access to the rights under the Bill. We need to make that simple and put it on the face of the Bill. As I said earlier, if, according to the Government, our proposal is belt and braces and is not necessary, there is no harm in that, because it would give a clear signal and the interpretation of the Electronic Communications Code would be that much clearer. Therefore, I wish to test the opinion of the House.

--- Later in debate ---

[Lord Fox]

My Lords, this amendment addresses a real issue. We have seen in the past that control of the final few yards into a house or the ownership of a switch in a box on a street has prevented the smooth changing of vendors and complicated the lives of consumers. We should not be replicating this control as we go forward, so the amendment deserves a positive response from Her Majesty’s Government. I am sure that in future there will be examples where the cost of initial installation causes operators to want contracts in excess of 18 months, but that should always be covered by commercial concerns, not locked in by technology. So we on these Benches are interested to hear whether the Government have sympathy with the amendment and, if they do, how that sympathy will be manifested.

[Lord Clement-Jones]

As ever, my noble friend Lord Fox and the noble Lords, Lord Holmes and Lord Stevenson, have put their finger on the issues. I was going to ask the Minister how she thought the question of open radio access networks fitted into this picture, but I will not.

[The Deputy Speaker]

Let us see if we can get the noble Lord, Lord Adonis, back. No? In that case we will hear from the Minister.

--- Later in debate ---

[Baroness Wilcox of Newport (Lab) [V]]

This amendment would serve a necessary purpose: the delivery of 1 gigabit per second broadband to every home by 2025. It is an ambition stated by the current Prime Minister, but what is the hesitation? The lack of bold leadership and ambition to get this done is of concern. Amendment 7 builds on an amendment tabled by Liberal Democrat colleagues in Committee but is significantly wider in its scope.

A review of the impact of the Act would require consideration of the suitability of other parts of the Electronic Communications Code in facilitating the Government’s aim of universal access to high-speed broadband. It is clear from some of the stories and examples raised during this Bill’s passage that for a variety of reasons there are significant obstacles to meeting the Government’s target. As such, I hope the Minister will recognise that Amendment 7 is designed to be helpful and to bring us closer to the destination that we all agree on.

The country has a mountain to climb after the serious damage sustained to the economy during and after this health pandemic. Millions of lives will be affected by the implications of unemployment and a contracting public sector. The UK, ill prepared for the onset of the virus and constantly playing catch-up during it, has to try to regain momentum in delivering a fair and balanced economy to benefit the majority of its citizens. The recovery programme that must be implemented after the pandemic will be utterly dependent on how we connect ourselves and the wider world. As it is expected that working from home will continue for some and develop and reproduce, we need good and reliable internet speeds across the country to support this. The universality of the service, so that it is available to all irrespective of location, is also an important point, raised previously by my noble friend Lord Adonis.

The mix of cybersecurity-focused big business, a critical mass of small enterprises and GCHQ-recognised academic excellence, promoted by the Welsh Government’s strategy, is presently located in my home city of Newport.

There must be an evaluation of the impact, over at least a six-month period, to aid the recovery of the economy after Covid, and residents of houses in multiple occupation should not be treated less favourably in any aspect that inhibits the rollout of this vital public service. While steps to improve rollout of new infra- structure to multiple-occupancy dwellings is welcome, I ask the Minister what plans the Government have to deal with issues in rural areas. I therefore speak in favour of the amendment.

[Lord Clement-Jones]

My Lords, the purpose of the amendment is extremely clear and should be welcomed by the Government. It is to ensure that the code is fit for the purpose of delivering the Government’s own manifesto commitment—and that personally expressed by the Prime Minister—of 1 gigabit per second-capable broadband to every home by 2025.

However, in the Minister’s letter to me about comparative rights of entry for different utilities—I thank her for it—she describes it as the Government’s ambition to deliver gigabit-capable broadband to every home and business “as soon as possible”; that is my emphasis. All of us, whether at Second Reading or in Committee, have described the importance of delivering what we must now call ultrafast broadband by any appropriate technology by 2025, particularly in the light of the demonstration through the Covid-19 lockdown of our increasing dependence for remote working, education and many other aspects of life on good broad- band connectivity, as the noble Lord, Lord Stevenson, described.

It is clear that the Electronic Communications Code needs regular review to ensure that this vital objective is met and that operators have all the rights of entry they need. It is all the more important given that, as all of us know, previous pledges and commitments have not been met—and, this year, we can hardly celebrate the arrival of a universal service obligation of a miserable 10 megabits per second.

I am glad that we have started a genuine debate around whether we can describe broadband as a utility and what the appropriate rights of entry are. The amendment is by no means prescriptive on the point, but it should definitely be a matter of consideration on review, particularly given that, unlike with electricity, gas and so on, the rights of broadband operators are only ever temporary in the code at the moment. The amendment would be an extremely valuable addition to the Bill.