Oral Answers to Questions

Margot James Excerpts

Thursday 1st November 2018 Commons Chamber

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

3. What recent discussions he has had with internet service providers on the occurrence of secondary ticketing websites in search rankings.

[The Minister for Digital and the Creative Industries (Margot James)]

I take this issue very seriously, and I know that the hon. Lady has done fantastic work on it over the years. Ticketing website advertisements must comply with the Advertising Standards Authority code, and those using advertising facilities attached to search engines must also comply with their terms of service to prevent misleading ads and to protect consumers. I am in touch with internet service providers, and they assure me that they are prepared to take action where necessary.

[Mrs Hodgson]

I thank the Minister for her work on this issue and her support for my work on it. According to research by the FanFair Alliance in a study carried out earlier this year, Viagogo was in the top two results on Google in 80 out of 100 searches. Time and again, victims of Viagogo tell me that they have been directed to Viagogo by a Google search. Does the Minister think it is appropriate that Viagogo is still able to buy itself to the top of the Google search rankings while it is facing court action by the Competition and Markets Authority?

[Margot James]

The hon. Lady makes a good point. Viagogo is the subject of legal action by the CMA. However, she might be interested to know that the Advertising Standards Authority has ruled that consumers would not assume that Viagogo was the primary ticketing agent for an event, and that there was therefore nothing in the ad to claim that it was the primary—[Interruption.] If you will permit me, Mr Speaker, I will just say that Google’s conditions state that resellers must prominently disclose themselves as resellers. The hon. Lady can therefore draw her own conclusions from that—

[Damian Collins (Folkestone and Hythe) (Con)]

Does the Minister accept, however, that Google is accepting ads through Viagogo agents that are in breach of consumer protection law and of Google’s own terms of service, and that it is effectively taking money through being party to a fraud by allowing those ads to run?

[Margot James]

I absolutely sympathise with my hon. Friend’s point of view. I have had discussions with Google on this very point. I think it is safe to say that we have a difference of view, but I remain optimistic that the search engines will comply with their own terms and conditions in the end.

[Ian C. Lucas (Wrexham) (Lab)]

Does the Minister agree that it is also important to focus on the supply of tickets, and that we must ask artists and promoters to ensure that they work with venues to restrict the supply of tickets to sites such as Viagogo?

[Margot James]

The hon. Gentleman makes a good point. We have taken a lot of action that is resulting in an improvement in the situation and a reduction in the availability of tickets on these very questionable sites.

[Mr Speaker]

I call Mary Robinson. Not here. I call Andrew Rosindell. Not here. What is going on? Where are our colleagues? I hope that they are well and that they will be back. I call Jack Brereton.

[Jack Brereton (Stoke-on-Trent South) (Con)]

6. What steps he is taking to support the creative industries throughout the UK.

[The Minister for Digital and the Creative Industries (Margot James)]

The creative industries are a great British success story. They generate £91.8 billion for our economy and are responsible for 2 million jobs, so we are committed to supporting all creative businesses. The sector deal that was published earlier this year contains £150 million of private and public sector funding to realise the potential of this great sector.

[Jack Brereton]

I thank the Minister for her response. Will she join me in wishing the ceramics industry every success in its cultural development fund bid to establish an international ceramics centre in Stoke-on-Trent?

[Margot James]

I will certainly join my hon. Friend in wishing the consortium all the very best with its application. The ceramics sector in and around Stoke has been revitalised in recent years. As well as being important in its own right, it is important to many other industries. We have had some excellent bids for the £20 million cultural development fund, and decisions on the projects to be funded are expected early next year.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

What a good day it is: we have got Channel 4 for Leeds. Applause?

Will the Minister look carefully at the campaign that we are running to get more people who are on the autistic spectrum into the creative industries? Quirky people are very creative; let us do more work to get them into those industries.

[Margot James]

I congratulate Leeds on its success in securing Channel 4’s new head office. The hon. Gentleman makes an excellent point. We are already working with the National Autistic Society on a programme to engage young people in coding, which will help them in the creative sector, but more can be done, and I will take his suggestion on board.

[Mr Edward Vaizey (Wantage) (Con)]

In the absence of my hon. Friend the Member for Romford (Andrew Rosindell), I cannot ask the Minister about the Health and Social Care Secretary’s important speech next week about the arts and health. Instead, may I ask whether she, like me, welcomes the astonishing figures that continue to come from the British film industry thanks to the success of the film tax credit? The industry continues to make a huge contribution to our economy.

[Margot James]

I heartily agree with my right hon. Friend. London Film Week marked the launch of the British Film Institute’s excellent report on the massive value of film tax credits to the economy. A third of all global blockbuster films are made in this country, which is a fantastic success story.

[Alison Thewliss (Glasgow Central) (SNP)]

The Minister will also want to congratulate Glasgow on getting Channel 4’s creative hub, which is the culmination of a great campaign led by Stuart Cosgrove, and the council team of Susan Aitken, David McDonald and Colin Edgar. Will the Minister come to Glasgow to see all the brilliant things that the city can offer the creative industries?

[Margot James]

I totally agree with the hon. Lady that the news is a great success for Glasgow, and I am pleased that Channel 4 made that decision, given the huge talent and creativity in the city. I shall be glad to visit next year to see the progress with my own eyes.

[Sir David Crausby (Bolton North East) (Lab)]

7. Whether he has made an assessment of the implications for grassroots football of the failure of the proposed sale of Wembley stadium.

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[Kevin Foster (Torbay) (Con)]

8. What progress his Department has made on supporting the development of small-scale digital radio multiplex services.

[The Minister for Digital and the Creative Industries (Margot James)]

I recognise the important role that commercial and community radio stations play in the communities they serve, and I congratulate my hon. Friend on the passage of his Broadcasting (Radio Multiplex Services) Act 2017. My Department provided funding for the successful trials of small-scale digital audio broadcasting across the UK, and we have now completed the consultation on detailed proposals for the licensing framework.

[Kevin Foster]

I thank the Minister for her answer. I welcome removing barriers to smaller community and commercial radio stations going digital, but can she advise on when she expects the new licensing system for small-scale multiplexes to be fully in place?

[Margot James]

Having completed the consultation on the new licensing system, we are now working closely with Ofcom on the detailed arrangements, including spectrum planning, on which Ofcom has the lead. Our aim is to bring forward the secondary legislation required for the first stages next year.

[Leo Docherty (Aldershot) (Con)]

9. What recent assessment he has made of the contribution of the digital sector to the UK economy.

[Alan Mak (Havant) (Con)]

11. What recent assessment he has made of the contribution of the digital sector to the UK economy.

[The Minister for Digital and the Creative Industries (Margot James)]

The UK’s digital sector is a global powerhouse, and the most recent official statistics show that the sector has contributed over £116 billion to the UK economy and is growing faster than the average for the rest of the economy by two and a half times. From 2015 to 2016, the digital sector’s contribution increased by 5.8%.

[Leo Docherty]

Does the Minister agree that the remarkable growth of UK digital companies—UKCloud in Farnborough in my constituency was the fastest growing tech company in the UK last year—shows that the digital sector is in rude health?

[Margot James]

I absolutely agree with my hon. Friend. Indeed, I visited UKCloud a few months ago and was extremely impressed by not just its fast growth but its innovation. The UK cloud sector is a strongly performing part of the overall digital sector. Earlier this year I spoke at the UK cloud awards and was very impressed by the success, innovation and growth potential of the cloud sector.

[Alan Mak]

Govtech is a growing part of the digital economy and it can help to boost public sector productivity. What steps can the Department take to help entrepreneurs and start-ups in this important tech sector?

[Margot James]

My hon. Friend puts his finger on an area of tech that will transform our country once it is unleashed through public services. We want to make it easier for Departments and public bodies to work with tech companies, including small and medium-sized enterprises. The Chancellor has announced that we will conduct an artificial intelligence review to examine how Government can make better use of AI to provide valuable services more efficiently.

[Stephanie Peacock (Barnsley East) (Lab)]

Ninety-five per cent. of respondents to my broadband survey are not happy with their service, which is not surprising, given that Barnsley’s broadband speeds are 20% slower than the national average. What are the Government doing to invest in broadband in the north?

[Margot James]

We are doing a huge amount through commercial operations, and the hon. Lady will find that things improve dramatically. Her constituency is only a few steps off the 95% average for access to superfast broadband. I advise her to make sure that people know that they have it. Approximately half the people who have access to superfast broadband do not take it up, because some of them do not realise it is there.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

As well as fast broadband, small tech businesses in my constituency and across the country need the right people to make sure that they grow and continue contributing to the economy. What conversations is the Minister having with the Home Office about the negative impacts of the Government’s immigration policy on attracting and securing the right staff to grow these businesses?

[Margot James]

The hon. Lady will know that we have doubled the number of tier 1 exceptional talent visas to 2,000. We have also announced a start-up visa for entrepreneurs. The other side of the coin, of course, is the huge investment we are making in skills training for people who are already resident in her constituency.

[Scott Mann (North Cornwall) (Con)]

What discussions has the Department had with the Cabinet Office about supporting tech start-ups with local and national Government procurement?

[Margot James]

We have a fantastic organisation, Tech Nation, with which we work closely to build the hubs around the country that directly support SMEs; the British Business Bank also does this and it is now starting a regional network of advisers for SMEs in tech.

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

The tech sector is important, but it is not yet a big enough contributor to the Treasury. Can the Minister tell us what percentage of sales will be paid in the new tax introduced by the Chancellor by the big five tech giants next year?

[Margot James]

My understanding of what the Chancellor announced in the Budget on Monday is that he will be introducing a digital sales tax approximating to 2% of digital turnover. I think the right hon. Gentleman can make his own calculations.

[Liam Byrne]

I can tell the Minister that, based on last year’s sales, next year the big five will be paying 0.01% of their sales in tax. That is the Treasury forecast in the Red Book, but even the Office for Budget Responsibility says that that is highly uncertain, and it will be outweighed by the cut in corporation tax to 17%. So is it not true that she has conspired with the Treasury to give a free pass to some of the wealthiest firms on earth?

[Margot James]

I have had no discussions with the Treasury on that matter. [Hon. Members: “What?”] No, I have not. The right hon. Gentleman has alleged that I have had discussions, which I have not. To answer his substantive point, the Treasury expects to raise £1.5 billion over the next four years; 2% is a start and he should know that other countries are planning to take action, but no country has yet done so. Therefore, I suggest that the UK is taking the lead on this. We hope for international action, which will land a bigger hit, but at this stage international action is not forthcoming so we are taking action unilaterally—

[Mr Speaker]

I am sorry but we have a lot to get through and people really do have to be able to blurt it out.

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[James Duddridge (Rochford and Southend East) (Con)]

T2. What assessment has the Minister made of the UK’s ability to support any bright new businesses starting up in our regional towns, particularly start-up tech businesses, and to help them grow?

[The Minister for Digital and the Creative Industries (Margot James)]

We do indeed have many bright new businesses across the UK. Research published a week ago by Tech Nation showed that British cities such as Manchester and Cambridge have the same number of tech companies now valued at $100 million, and that, I think, shows that we as a nation are really supporting small and medium-sized enterprises in their growth aspirations.

[Kevin Brennan (Cardiff West) (Lab)]

It is disappointing that the Minister who led the review that concluded that high-stakes fixed odds betting terminals were a social blight is not here with us this morning, although, contrary to what the Secretary of State said, I understand that Patrick Kidd of The Times is reporting that she is actually with the Chief Whip at the moment, and not in transit, as he hinted. May I ask him whether when he hinted to the Digital, Culture, Media and Sport Committee that he was minded to delay the reduction in stakes on fixed odds betting terminals he had actually read the 78 pages of the devastating report, which his ministerial colleague had dedicated three years to compiling?

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[Scott Mann (North Cornwall) (Con)]

T3. I will try to be brief, Mr Speaker. The all-party parliamentary group for rural business recently recommended mobile data roaming for areas that are quite isolated, such as my constituency of North Cornwall. The group reckons that this could boost mobile data by 8%. Will the Government apply pressure in this regard to ensure that my constituents get the best coverage?

[Margot James]

I heartily agree with my hon. Friend’s concerns. I was delighted that the Budget confirmed that there is now £200 million to kick-start connectivity for superfast broadband around the edge of the country, and the Red Book shows that one of the places that this process will start is in my hon. Friend’s county of Cornwall.

[Hannah Bardell (Livingston) (SNP)]

May I join my hon. Friend the Member for Glasgow Central (Alison Thewliss) in welcoming Channel 4’s hub, which is great news for Glasgow and the Scottish screen sector?

Will the Secretary of State apologise to the families who have been blighted by gambling-related harm due to the delay in the announcement of reducing the fixed odds betting terminals maximum stake to £2? Will he look into diverting the £1.8 billion bonus that is going to bookies to the affected families instead?

[Mike Wood (Dudley South) (Con)]

T4. As well as the world’s best beer, one of the things that brings people into our pubs is live music. What assessment has the Minister made of the importance of the music industry’s contribution to our economic and cultural health?

[Margot James]

It is a vibrant industry. Just today, UK Music has published a report showing that the music industry is outstripping the rest of the economy in terms of growth, and I know that it is doing very well in my neighbouring constituency of Dudley South.

[Helen Goodman (Bishop Auckland) (Lab)]

T6. A few months ago, some vandals burned down Spennymoor cricket club in my constituency. It is proving very difficult to get the insurance money and raise enough funds for a rebuild, so will the Secretary of State tell me where we could get some money so that a second season is not lost for the young people in the area?

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[Mary Robinson (Cheadle) (Con)]

Many thanks, Mr Speaker, and apologies.

Next week, I will be holding Cheadle’s ScamSmart event to inform local residents about how to deal with consumer protection and address nuisance phone calls. Does the Minister agree that the bosses of companies that bombard people with unsolicited phone calls should feel the full force of the law and be directly liable for fines, to prevent them from doing this in future?

[Margot James]

It is a pleasure to see my hon. Friend, who raises a very important issue. Nuisance calls are not a victimless crime; they are a source of fear and intimidation to many older people and vulnerable groups. So I agree that those who flout the law on a persistent basis should be held to account, and that means directors being personally liable. That is why we have just completed a consultation on how we bring this into force, and company directors will face, potentially, fines of up to half a million pounds if it is decided on.

[Several hon. Members rose—]

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[Margot James]

The hon. Gentleman is right that we are hoping for greater transparency from the BBC. Ofcom recently identified this as an area for improvement in its report on the BBC.

The Attorney General was asked—