Rural Broadband (North Yorkshire)

Lord Vaizey of Didcot Excerpts

Wednesday 8th January 2014 Westminster Hall

[Mrs Anne Main (in the Chair)]

Order. The debate will finish at 5.9 pm. Does the hon. Gentleman have the permission of the Minister and of the Member who secured the debate to make a brief speech?

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)]

indicated assent.

[Julian Sturdy]

indicated assent.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)]

It is a pleasure to serve under your chairmanship, Mrs Main. I congratulate my hon. Friend the Member for York Outer (Julian Sturdy) on securing the debate, and I am pleased to see him joined by my hon. Friends the Members for Skipton and Ripon (Julian Smith), for Harrogate and Knaresborough (Andrew Jones) and for Selby and Ainsty (Nigel Adams). As one can see as the camera pans around, God’s own county is represented by four of the finest elected representatives to be found in any legislature in the world. It is a testament to their power and influence that not a single member of the Opposition has dared to turn up to challenge anything that my hon. Friends have to say.

Now that I have taken my tongue out of my cheek, I must say in all seriousness, for the edification of their constituents and any local journalists watching the debate, that my hon. Friends have been assiduous in lobbying for their constituencies and to secure the best settlement to deliver the best broadband deal for their constituents, because they understand its importance. They have been aided and abetted by John Moore, the chief executive of NYnet, which is the company set up to deliver broadband to North Yorkshire, as well as the excellently led, Conservative North Yorkshire council. It is important to explain to those who might be new to the broadband debate that North Yorkshire was one of the first councils to participate in the Government’s rural broadband programme, because it was oven-ready, as it were, when the programme was announced. That is why, while I will go on to talk about the general success of the rural broadband programme, North Yorkshire stands out as one of the most successful areas.

[Julian Smith]

Just to extend the mutual congratulations slightly, I want to put on the record our thanks to the Minister for being so responsive over the past few years to relentless e-mails and letters from all of us. His responsiveness has made a massive difference.

[Mr Vaizey]

I am grateful, but perhaps we had better stop there, Mrs Main, and get to the substance of the debate, or people will start to turn against us.

North Yorkshire is one of the largest rural broadband projects in the country. It was the first to get under way under our rural broadband programme. We have put almost £18 million into the project, together with more than £8 million of European funding—if I am allowed to say that in public—and £9 million from BT, making a total investment of more than £35 million. The project is now on track to be completed by October this year, which is ahead of schedule. We also recognise the need to do more, and partly in response to the relentless e-mails, letters and conversations, we allocated a further £3 million to North Yorkshire, because that leveraged an additional £5 million of funding from the local council and in European money, allowing coverage to be extended further.

As for what we have achieved so far, the current contract will get 670 cabinets enabled for superfast broadband, which will deliver 168,000 premises as passed. Mindful of the point made by my hon. Friend the Member for York Outer about distinguishing between access to fibre and getting superfast speeds, I can say that that means 150,000 premises achieving speeds greater than 25 megabits. It is important to stress that we distinguish between those who have access to cabinets that have been enabled for superfast broadband and those who actually receive the speeds, because we recognise that some premises are too far from the cabinets to get the designated speeds.

More than half the cabinets have been deployed so far, which is 350, or 52% of the total; 95,000 premises have been passed, or 57% of the total; and 86,000 of those premises receive speeds of 25 megabits or more. By the end of next week, we expect 370 cabinets to have been enabled, so the project is going well. It is important to stress that this has been helped not only by the assiduous nature of the MPs’ holding the Government to account, but by NYnet on the ground and a proactive council, which have been vital. Some people have criticised the way in which we have gone about working with local councils, rather than having a national tender, for example, but having councils that are partners with BT has made a huge difference, because it joins up with things such as planning to ensure that broadband is rolled out all the more speedily.

Despite criticism of the programme, the results are now beginning to speak for themselves. For example, in Rutland more than 9,000 premises have been passed, and we expect that project to conclude by the summer; 95 more communities in Norfolk are now accessing fibre broadband, thanks to the programme; and in Suffolk, 90 miles of fibre cable have been laid, and 10,000 homes and businesses are getting broadband three months ahead of schedule, with a further 2,500 premises in 16 communities getting it in the autumn.

Many authorities are going further than our original target of 90%: Cambridgeshire is going for 98%; Lancashire 97%; Rutland 94%; and Wales, which has passed 100,000 premises and is now six months ahead of schedule, 96%. By the end of 2013, with 43 out of 44 projects signed, half of them already had live coverage. Superfast Cornwall has seen more than 194,000 premises passed by fibre and is aiming for 95% of fibre coverage. Northern Ireland has more than 90% of fibre coverage.

I take this opportunity to pay tribute to BT and its engineers. Over the Christmas period, all of us have seen, or experienced, the horrendous weather that led to trouble with power lines and so on. The flooding still afflicts a great many areas of the country. Throughout that entire period, however, BT engineers were working to meet their milestones. I have been told stories of engineers working with water up to their shoulders as they were preparing to lay fibre, or working in holes where the pumps had to be kept on permanently to keep the water from flooding them, so that the milestones could be met. BT gets a lot of criticism for the programme, but most of it is unwarranted. It is worth our pausing to pay tribute to the work of the BT engineers, in particular over this Christmas period.

On the core points made by my hon. Friends, I would characterise the tone of their remarks as, “It’s going well, but could do better.” We could do better in two or three areas, the first of which might be the allocation of the next £250 million. It is worth making the point that, having allocated a little more than £500 million to reach 90% superfast broadband, the Chancellor has allocated a further £250 million to reach 95%. We want to get that money allocated as soon as possible.

I was not in a hole up to my shoulders in water, but I can assure my hon. Friends that my officials and I and BT were all looking at the issue over the Christmas and new year period. We hope to make an announcement shortly, but I know that they appreciate that we have to get it right and ensure that the money is allocated properly and fairly. I can be certain, however, that good partners like North Yorkshire will, I hope, receive appropriate funding to carry on their good work.

Furthermore, it is important to acknowledge, as I have already done, that there is a difference between a fibre-enabled cabinet and people getting superfast access. I reassure my hon. Friends that we make the distinction. They also mentioned the concern about BT first saying that a cabinet is commercially viable, but then saying that it is not and that it should be part of the rural roll-out. Detailed planning is undertaken, but circumstances on the ground can change, so there needs to be a degree of flexibility and give and take. I can, however, again assure my hon. Friends that when BT finds that a cabinet is not commercially viable and seeks to put it into the rural programme, we do have detailed discussions. Likewise, sometimes there are parts of the rural programme that become commercially viable.

As for clawing money back from BT when take-up is higher, I assure my hon. Friends that where the take-up of broadband exceeds the target set under the contract, we do claw money back. That money is put back into the programme to extend coverage further.

Finally, I assure my hon. Friends that we are also looking at the £10 million that the Chancellor has allocated to us to take superfast broadband from 95% to 100%. That is money for test-bed experiments. It is important to stress that, in particular in rural areas, prices rise exponentially for that very last 5%.

[Nigel Adams]

rose—

--- Later in debate ---

[Mrs Anne Main (in the Chair)]

Order. The Minister needs the remaining 40 seconds to respond.

[Mr Vaizey]

There are individual solutions and it is important that we remain open to them. I receive e-mails from individual providers which claim that they can provide commercial solutions for the last 5%. It is important that we hear from all potential providers, which is why we have set aside that money to stress-test solutions before making that final allocation to get us to 100% superfast broadband.

Question put and agreed to.