Lord Vaizey of Didcot
Main Page: Lord Vaizey of Didcot (Conservative - Life peer)
The Minister for Culture and the Digital Economy (Mr Edward Vaizey)
I do not want the hon. Gentleman to give the wrong impression to the House. When he says that telecoms is a reserved matter, it is the case that the Scottish Government are in charge of the roll-out of superfast broadband in Scotland. He said that the Scottish Government stepped in to top up the money. Every project area in England, Scotland and Wales has provided match funding. It is not as if the Scottish Government came to the rescue; that was always the deal.
Steven Paterson
The Scottish Government are looking after the roll-out of broadband coverage in Scotland. However, telecommunications is reserved in this place, and the Government, of which the Minister is a member, must take responsibility, and I hope that they do.
Steven Paterson
The Minister is responsible for the funding for it.
Despite these efforts, much of Scotland’s rural zones are left in digital darkness, and that frustrates those in my constituency and in many others. The fact that the Scottish Government, a devolved Administration with no responsibility for telecommunications, have had to play such a role in this situation is not acceptable. The roll-out is inadequate for the businesses that I represent. According to Ofcom’s 2014 figures, superfast broadband services were accessible by 75% of the people in the UK. Broken down, that figure was as high as 77% for England, and as low as 61% for Scotland. At the bottom of the scale was Wales with just 55%. There is a clear disparity across the United Kingdom that must be addressed.
In Stirling, a diverse constituency of urban and rural areas, only 57% of people have access to superfast broadband. A constituency that can benefit from a wealth of business opportunities, has a rich cultural and historical heritage and has the potential to expand its tourism industry needs broadband. As technology moves on, we must invest. Stirling, which is a constituency with so much potential, is currently 543rd out of the 650 UK parliamentary constituencies for superfast broadband access, so Members can see why this is such a big issue in my part of the world. Indeed, 2014 figures show that 8% of the Stirling constituency only has access to slow connections—defined by access speeds lower than 2 megabits per second. I hope the Minister will agree that we must make progress on this matter.
It is also important to recognise the efforts of Stirling Council, which joined other local authorities across Scotland in investing in the digital broadband Scotland project. Last year, with all-party support, the council invested £600,000, and it should be congratulated on so doing.
Ofcom currently safeguards the existing universal service obligations for postal and telecommunications services. A similar obligation for broadband providers was announced by the Chancellor, and I welcome that. However, it is important to note that businesses—the majority of which will rely on high bandwidth in order to expand their online presence—will benefit only to a limited degree unless the megabit limit is as high as we can achieve. I do not think that 5 megabits will be high enough and it should be revised upwards.
In conclusion, the UK Government have much to consider in their approach to the investment in broadband. I look forward to following the ongoing debate.
Jo Churchill
My hon. Friend makes a valid point about using what resources we have in a much more intelligent way.
We need to ensure that at the planning stage there is communication between deliverers and providers and that we lay service ducts for broadband as housing and commercial developments are built, a point that several Members have alluded to. The Government are demanding digital platforms for most services, including tourism and education, so we need these things to be happening.
The word “rural” has been repeated in this Chamber time and again today. We should not be disfranchised simply because we have the pleasure of living in England’s beautiful counties. It is right and proper that our cities should have high-speed broadband, but it is not right that we should not.
Jo Churchill
I will indeed. I thank the Minister most kindly for it. However, I also point out that there are still many houses and businesses in my constituency that would be grateful if that largesse reached them too.
Broadband is also needed to deliver medical facilities in a 21st century fashion. A leading medical practice in the constituency has just started trialling the delivery of healthcare online. If we are to save money across the board, we need to take these technologies forward.
Furthermore, the mobile technology in my constituency is also not good. I am lucky enough to have some of the best “not spots” in the country, so we are championing greater coverage down in Suffolk. The A143 has some of the worst connectivity in the country. I recently surveyed my constituents, much as my hon. Friend the Member for Louth and Horncastle (Victoria Atkins) is doing with hers, and found that 30% feel their connectivity is either poor or very poor. When someone is without broadband or mobile coverage and then BT fails, it really is grim.
Jo Churchill
Indeed I will. I see that I have run out of time. I will follow the Minister wherever he drives us to ensure that we have 100% mobile connectivity, as France will have by 2020.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I, too, congratulate the Backbench Business Committee on holding this debate and the hon. Members who have pushed for it. I applaud the many informed and moving contributions that we have heard, particularly from my hon. Friend the Member for Ynys Môn (Albert Owen), my right hon. Friend the Member for East Ham (Stephen Timms), and my hon. Friends the Members for Burnley (Julie Cooper) and for Lancaster and Fleetwood (Cat Smith).
I am pleased to stand at the Dispatch Box for the first time as shadow Minister for the digital economy.
Chi Onwurah
Well, it has been a long time. Before entering Parliament in 2010 I spent 20 years as an electrical engineer building telecoms networks around the world. I confess to having had a geeky worry that my technical knowledge would suffer as part of the privilege of being elected to the House. The Government have been so ineffectual, however, that my technical understanding remains as relevant as ever. Ministers should be ashamed of that, because it is their failure.
The UK has the sixth largest economy in the world, and is a developed nation with aspirations to lead the digital world. It is a country where Government services are “digital by default”, yet we have heard from many speakers in all parts of the House about the dire state of our digital infrastructure. I am not going to repeat all the terrible tales that we have heard: 1.8 million homes that cannot get broadband; dial-up speeds; businesses unable to do business. The economic benefits of better digital infrastructure—or, in some cases, of any kind of digital infrastructure—have been emphasised. The UK’s productivity problem was mentioned, and it is one of the biggest challenges that our economy faces. We have the second worst productivity in the G7. Ministers contribute to the problem, with a lack of productivity when it comes to providing the digital infrastructure that this country needs. The Government’s own broadband impact study states:
“It is now widely accepted that the availability and adoption of affordable broadband plays an important role in increasing productivity”.
The Minister laughs, but this is serious for many of his MPs. Better infrastructure increases productivity by
“supporting the development of new, more efficient, business models, enabling business process re-engineering to improve the efficiency and management of labour intensive jobs, and enabling increased international trade and collaborative innovation”.
Many Members on both sides of the House have given examples of that. As the new Leader of the Opposition and the new shadow Chancellor told conference this year, at the heart of our forward-looking narrative will be plans for investing in the future, including “investment in fast broadband to support new high technology jobs”.
The Minister for Culture and the Digital Economy (Mr Edward Vaizey)
It gives me great pleasure to respond to this important Back-Bench debate and I congratulate my hon. Friend the Member for Boston and Skegness (Matt Warman) on securing it.
I congratulate the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) on becoming the Opposition spokesman. I have always regarded her as, in effect, the shadow spokesman on this matter. Rather like the new leader of the Labour party and shadow Chancellor, I have left some very unhelpful quotations over the past five years in which I have praised her knowledge and expertise. I obviously resile from them all now that she is the official Opposition spokesman.
I was asked earlier whether this debate felt like groundhog day. I have to say that I have welcomed every single speech from those on the Government Benches—they have been brilliant, original and effective, and have displayed yet again the huge range of talent that exists on our Benches in representing our constituents and putting their issues on the agenda. The point when I thought it was groundhog day was when the hon. Member for Newcastle upon Tyne Central gave her speech. It is 2015 and the Labour party is still talking about a policy that it came up with in 2009. That policy was uncosted, required a tax that did not exist and contained no plans, yet it would have brought only 2 megabits to the country. Quite rightly, when the first Conservative Secretary of State came in, those plans were torn up because we knew that the country wanted 24 megabits. It wanted superfast broadband, which is what we have delivered.
While we have heard a lot of fine speeches from Government Members, I have to mark out the speech by the right hon. Member for East Ham (Stephen Timms) for sheer brass neck. It is astonishing that he talks about BT’s failure, when it was his Government that presided over the digital region project in south Yorkshire, which went bust, resulting in £50 million of taxpayers’ money being written off. The only superfast broadband project that started under his Government was the one in Cornwall, which relied on European money and involved BT. Cornwall is now one of the best connected regions in Europe.
The right hon. Gentleman accused me, because I happened to say that I might be mildly sceptical about the break-up of BT, of cosying up to corporate interests. Of course, those who are calling for the break-up of BT include such small businesses run out of a back bedroom as Sky, Vodafone and TalkTalk. It is absolutely astonishing.
Stephen Timms
The accusation about cosying up to corporate interests came from the Financial Times, not me. Does the Minister not accept, with the benefit of hindsight, that he should have ensured that some of the public subsidy went to a provider other than BT?
Mr Vaizey
The right hon. Gentleman cannot say that BT has me over a barrel when it has just paid back £129 million seven years early, thanks to the contracts we negotiated.
Let us look at those contracts. We said that we would deliver superfast broadband to 90% of homes and businesses in the country by the end of 2015. That is exactly what we will do. Three contracts have finished and 38 are ahead of schedule. I remind hon. Members that the reason BT bid for the contracts and that Virgin, for example, did not was that the state aid conditions required open access. Therefore, only companies that were prepared to see their networks used by their competitors were going to bid for the contracts. That is why BT was the only bidder in town.
Many of my hon. Friends have talked about Connecting Devon and Somerset, which did not sign a phase 2 contract with BT. I have sat in a room with hon. Friends and listened to officials from Devon and Somerset telling me that BT was not delivering. I now hear from my hon. Friends that BT is delivering.
As I have said, we have got £129 million back, thanks to the contracts. We are now going further. We have said that we will get to 95% of homes and businesses by the end of 2017. I am confident that we will deliver that as well. New technology and competition will help. Virgin has announced £3 billion of investment to compete with BT’s roll-out. It will get to 3 million to 4 million homes. Sky and TalkTalk are building a network in York to see how it can roll out fibre to premises.
That is a good example of how councils have to partner with telecoms providers, because they have to help with the planning. It is important that we keep the costs down. I hear people complain about the lack of broadband in central London, but Kensington and Chelsea refused to give planning permission to a single green box of BT’s for two years because it did not like the design. Councils have to get with it. As my hon. Friend the Member for South Suffolk (James Cartlidge) said, when we want to put up a mobile mast, we can suddenly find that the landowner has withdrawn their permission because of local objections. If we are going to build this infrastructure, there has to be a bit of give and take. Councils and local communities have to accept that the infrastructure has to be built. We might need to have taller masts and some structures in rural settings.
Now that BT has announced the roll-out of its G.fast technology, I am confident that 10 million homes will get speeds of 300 megabits or more over the next five years. We have the fastest roll-out and take-up of 4G in the world. We inherited a stalled auction programme from the last Labour Government that we had to resurrect and we are now back on track.
It was appalling to hear the hon. Member for Newcastle upon Tyne Central say that we should have a policy like Australia’s, which is massively over budget and involved a huge legal battle over many years effectively to nationalise the main telecoms operator. That pretty much cost the last Labour Government in Australia the election. We will not go down that road—that is for sure.
My hon. Friends are, of course, interested in the remaining 5%. I have written to all hon. Members setting out where broadband has got to in their constituencies in the last quarter, how many homes are being connected and, importantly, how many homes are not being connected. I am prepared to sit down with all my hon. Friends and visit their constituencies over the next six months to discuss areas that are not getting broadband, so that we can work together to deliver it.
Albert Owen
The Minister echoes the success of the Welsh Government in delivering to my constituency because it was a partnership. Will he sit down with Welsh Government Ministers, and others, to see what best practice could be used so that England can follow in the tracks of Wales?
Mr Vaizey
As my hon. Friends will be aware, I should have singled out the hon. Member for Ynys Môn (Albert Owen) because a Labour Government in Wales are responsible for rolling out superfast broadband and—guess what?—according to the Labour party, superfast broadband is brilliant in Wales but terrible in England. I was interested to hear that the hon. Member for Stirling (Steven Paterson) could not make up his mind whether he wanted to condemn or support the roll-out of superfast broadband in Scotland by the Scottish Government and the SNP. I take all such critiques with a great pinch of salt.
Chi Onwurah
The Minister said that I wished for a policy that is the same as that in Australia, but that is not what I said. I said that we needed a target as ambitious as Australia’s and the one in place by the new conservative Prime Minister there.
Mr Vaizey
I am all for targets but let us have some delivery. Australia has an ambitious target and zero delivery. We have a realistic target that we have hit time and again, and we will continue to do so. We have passed superfast broadband to more than 3 million homes and businesses, and when the next figures come out it will be close to 4 million. We must also deal with the last 5%, and by the end of this year we will set out our plans.
It is no secret that we are looking at a universal service obligation, and we will not be tied to some piddling European target of 5 megabits. No, when we look at a universal service obligation we will look at a British universal service obligation to deliver the kind of British broadband speeds that British citizens and businesses require. Over the last four years we have delivered that to more than 3 million homes and businesses, and we are fast approaching 4 million. We are hitting our targets time and again. We may not be able to beat the Australians at Twickenham, but when it comes to broadband we beat them hands down!