Digital Economy Bill

Martin Docherty-Hughes Excerpts

Tuesday 13th September 2016 Commons Chamber

[Karen Bradley]

The hon. Lady makes a very good point. I am aware of that point; it has been raised with me, and I am working on it with the Minister for Digital and Culture to improve the situation. I hope that the hon. Lady agrees that there has been progress in that area, but I fully take the point that we always need to do more. If she will forgive me, I will make some progress now, because I am aware that many right hon. and hon. Members want to contribute to the debate.

When it comes to broadband coverage, we are ahead of our major European competitors. In 2015, the UK maintained its No. 1 position for the widest access to superfast broadband, ahead of Germany, France, Italy and Spain. That connectivity drives business. Edinburgh, for example, has a thriving FinTech sector; Cardiff and Swansea have a particular specialism in cyber-security; Belfast’s strengths include app and software development; and Manchester boasts a world-class digital media cluster. The Government are supporting and enabling that, by providing funding through Tech City and supporting businesses through UK Trade & Investment.

Most fundamentally, we are ensuring that our citizens have the skills to keep the UK ahead. We were one of the first countries in the world to put computer coding in the national curriculum, and we are focusing on digital skills for adults, so that no one is left behind. The House may be interested to know that last year the most popular A-level was mathematics, and I am extremely pleased to hear that it is doing so well in the A-level stakes.

The Government are also digitally transforming. Our Government Digital Service has made us one of the world’s first “digital by default” countries—a model that has been copied around the globe. We are aggressively modernising the way in which the Government interact with citizens. Managing information well brings benefits, such as allowing drivers to share their licence information with insurers and car hire companies, which makes transactions faster. There is a new system to ensure that the electoral roll tallies with benefits data to stamp out fraud, and there are automatic fuel discounts for vulnerable pensioners.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

On sharing information, does the Secretary of State agree that technologies such as blockchain will challenge how we share information and, critically for the financial sector, how we make payments more quickly and get rid of the middle man?

[Karen Bradley]

The hon. Gentleman makes an important point. We are already looking at this and trialling it. The more we can do to use data and digital to enable people to transact more quickly, the better. Clearly, we have the challenges of data protection; we must ensure that people’s data are protected. There is a tension, but it is one that we are acutely aware of and working on.

We can be proud of our successes, but the Government’s ambitions are greater than that. Although 19 in 20 premises will be able to access superfast broadband, one in 20 will not. For that significant minority, the Bill brings good news. Implementation of the new broadband universal service obligation will require the designated communications provider to connect customers on demand at an affordable price. Eventually, technological developments will allow everyone to have a superfast connection, but until then the Bill will provide a safety net, so that by 2020 a minimum broadband speed of 10 megabits per second should be available. [Interruption.] The hon. Member for Rhondda (Chris Bryant) murmurs from a sedentary position, but that is the absolute minimum safety net.

--- Later in debate ---

[Chi Onwurah]

I hope the Minister will not continue to use my speech to make inaccurate points. I am very well aware of the data sharing debate. I am also very well aware that it was rounded off without proper agreement on the conclusions. I look forward to the Minister setting out exactly where the agreement that led to the current proposals was debated and agreed with all the stakeholders. He knows very well that he is unable to do so.

The failure to set out a data framework matters now, but it will matter even more in future because the new generation of technology, such as the internet of things, is going to increase exponentially the generation and use of data. To take smart meters as just one example, when security is designed into the smart energy code for energy metering there is no regulatory framework for the data about our homes: when we start making the tea, what time our children go to sleep and when we lock the back door. The previous Secretary of State for Energy told me that the data would belong to the energy companies. She then retracted that statement, but clearly had no idea who the data would really belong to. I doubt she can tell me more now that she is Home Secretary.

[Martin Docherty-Hughes]

On that very point about data sharing, does the shadow spokesperson not agree that technology such as blockchain will allow individuals and households to maintain specific information that energy companies might require?

[Chi Onwurah]

It is certainly the case that distributed ledger technology can have great applications in promoting openness, and consumer and citizen trust. Again, however, it has to be set out in the right framework with the right principles. We need a progressive ownership framework for data, one that is debated and discussed by everyone, including those not online. The Government must deliver an effective data regulation framework for the digital era. Without that, the digital economy will be hamstrung by peoples’ fears and companies’ confusion.

Unfortunately, that is not the only gaping hole in the Government’s Bill. The Government cannot tell us who will have access to our digital identities. In order to download an app from Google Play, people must have a Google account, which can then be used to identify and control their device. Who owns that identity? The Bill has nothing to say on cyber-security, despite it being one of the critical challenges of the digital economy. The Bill introduces instead bulk sharing of civil registration data, described by one commentator as suspiciously like an ID card through the back door.

The Bill has nothing to say either on work in the digital economy. A new economy brings new types of jobs and a new set of labour relationships. The Uber driver, the Deliveroo rider, the TaskRabbit worker—none of these workers are employed by the companies they work for; they are all managed by algorithms. The Bill does nothing to protect workers from extra-casualised work, compressed wages, few rights and almost no recourse to justice in the new intermediary economy. These firms are the future, but we must protect the workers of the future, too.

It is not only workers who are impacted by algorithms. Uber knows a person is more willing to accept higher or “surge” prices when their phone is about to run out of battery. They say they do not use this information to charge higher prices, but we have no way of verifying that. I am told that one well-known web-dating site has its algorithm optimised for short-term relationships, which maximises its revenue. Do the people paying their fees know that?

These criticisms are not an attack on the digital economy. I am a tech evangelist. I want the UK to see the advantages of a digital Britain, but that means the whole of the UK. Technology brings astounding new opportunities, but millions of people and businesses are left behind because of their lack of digital literacy. In 2014, Santander found that 34% of UK businesses looking to export do not have their own website, and last year ComRes found a quarter of the capital’s firms have little or no online presence.

In addition, the Government are doing little to tackle harassment and threats online. Our lives are increasingly lived on the internet. There would be an outcry if women did not feel safe walking down the street, yet many do not feel safe going online. Now is the time for a Bill to ready the country for the new digital world, but the Government are guilty of another half-hearted attempt to respond to the 21st century.

We shall not oppose the Bill on Second Reading, but the digital economy deserves better. Instead of leaving a positive legacy, the Conservatives will leave us with another missed opportunity—one whose legacy will be with us for decades to come.