Trade (Mobile Roaming) Regulations 2023

Lord Clement-Jones Excerpts

Tuesday 31st January 2023 Grand Committee

[Lord Deben (Con)]

I wanted to ask my noble friend: what advantage does the mobile telephone user get from us having left the European Union? Is this not a rather pathetic doing of a deal with a few countries, when everybody in Britain suffers from having left the European Union and being charged extra? This deal is just with a couple of countries—even Liechtenstein is left out.

[Lord Clement-Jones (LD)]

My Lords, that was a suitable start to my own small intervention. I will not trouble the Minister for too long but I want to strike a note of genuine regret, rather along the lines of what the noble Lord, Lord Deben, said.

It is a very small crumb of comfort to be faced with this order when previously, right across the EU, there were no roaming charges for consumers. As we saw, last July the EU extended the exemption from roaming charges for another 10 years—an extensive period. I suspect we are all now much more aware of what we have lost as a result of leaving the EU, exactly as the noble Lord mentioned.

There is a small consolation offered in this free trade agreement. I do not know whether any negotiations will ever be underfoot again with the EU about taking advantage of its single market and the resulting lack of roaming charges. Maybe the Minister could say whether any kind of initiative was available.

I have only a couple of questions about these new regulations. The Minister talked about the technicalities of wholesale, retail and so on. Obviously, the retail charges—if any—follow from any wholesale charges. How are these charges to be set? What is the basis for them? Norway and Iceland are limited exemptions. Even Liechtenstein did not feel moved enough to join up to this great roaming exemption. Why has Liechtenstein excluded itself from this splendid initiative?

Of course, we support these regulations. I welcome particularly that there is a review. I am greatly in favour of government reviewing its own regulations, and the mechanism in Regulation 13 is very useful, but what does the Minister envisage? Do we do this after a couple of years, after five years, this time next year or never? What is the plan? It is useful at least to have in the department’s diary something that says, “Review these Norway and Iceland regulations”, when somebody has the spare time to do it. I hope that consumers will take great benefit from these regulations.

[Viscount Stansgate (Lab)]

My Lords, I intervene briefly to ask two questions, one of which, about the review, has just been asked. Regulation 13 says that the review has to be within five years but can be in as little as a year. Can the Minister say anything about when the department might intend to consider a review? The subject of roaming charges is of pretty wide interest generally.

Secondly, in respect of the scope—which, let us face it, is modest—am I right in assuming that, under the reconsideration of the trade and co-operation agreement that has been signed and comes up for review in a year or two, this whole area might be an appropriate part of any reconsideration and renegotiation that the UK conducts with the EU?

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[Lord Parkinson of Whitley Bay (Con)]

Even if I had the statistics to hand, I do not think I would be able to satisfy my noble friend entirely. I do not have the numbers to compare UK travellers visiting Norway and Iceland with, say, Bulgaria or any other EU member state. What they have gained, as the UK has gained by our departure from the European Union, is the ability to sign free trade agreements and agreements such as this which allow us to pursue these benefits. They are a model for our co-operation with countries around the world, whether they are in the European Union or not.

Decisions about imposing roaming charges on customers who travel to the EU is a matter for operators themselves. I note that some, including Virgin Mobile and O2, do not so consumers in the UK still have the option of using that network and travelling without any charge to the European Union. I do not suppose any of that fully persuades my noble friend, but I hope it addresses the points that he has raised.

As I say, this represents a world first in a free trade agreement, and we expect it to make a real difference to Britons travelling to Norway and Iceland. It was one of the key and publicly stated achievements of the agreement, when we signed it, to keep costs low for holidaymakers and business travellers going to those countries, and the Government are committed to delivering that aim.

The noble Lord, Lord Clement-Jones, asked about wholesale charges. They are set out in the statutory instrument and took the EU rates as a benchmark. The agreements sub-committee recommended to the joint committee that the current rate found in the EU roaming regulation would be appropriate for the UK, Norway and Iceland. That is consistent with the agreement’s language, which concerns looking at “relevant international benchmarks”. I should say that the sub-committee is made up of officials, while the joint committee is the senior body chaired by Ministers.

[Lord Clement-Jones (LD)]

Thank you—that is really helpful—but will those rates change when the EU benchmark changes?

[Lord Parkinson of Whitley Bay]

That is not set out in the agreement, but, as is set out in it, the joint committee will review the rates every two years, unless it decides otherwise, with a view to determining whether they are still appropriate. An option in any of the reviews could indeed be to follow the rates in the EU and EEA, as the agreement talks about “relevant international benchmarks”, but that will be for the joint committee to decide.

The noble Lord, Lord Bassam, asked whether we plan to legislate to intervene if surcharges are imposed and endure. Obviously, I cannot make commitments on the Government’s future legislative programme, but I can stress the Government’s firm desire to see the benefits of this agreement flowing to consumers in the form of surcharge-free roaming to Norway and Iceland. If that does not happen, the Government have the capacity to intervene, and we will of course keep that under consideration. We will review these in due course, noting the five-year limit set out. I fear I cannot give a more precise timeframe to the question posed by the noble Viscount, Lord Stansgate.

I think that covers all the points raised, but I will consult the Official Report and write if I have missed anything. With that, I commend the Motion.