Telecommunications Infrastructure (Leasehold Property) Bill

Matt Warman Excerpts

2nd reading & 2nd reading: House of Commons & Programme motion
Wednesday 22nd January 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

I beg to move, That the Bill be now read a Second time.

With apologies to T.S. Eliot, it is obvious that the naming of Bills is a difficult matter, but this Bill’s title does not do it justice. The Government are committed to delivering the infrastructure that this country needs, and the Bill is the first step on that road. To continue to channel T.S. Eliot, we know that if we do not deliver that infrastructure, too much of this country will be a digital wasteland.

[Sir Desmond Swayne (New Forest West) (Con)]

The Minister is right: this is the first part of a much greater endeavour. An increasing number of younger people find that they can do without a landline at all, so can he reassure me that this great, expensive endeavour will not be overtaken by the development of new technology, particularly as regards 5G, that will render it obsolete?

[Matt Warman]

I can absolutely assure my right hon. Friend that our approach to connectivity is technology-agnostic, and 5G is very much part of the solution, rather than something leading to the exclusion of connectivity. He is right to imply that we aim to go significantly beyond current demand to pre-empt the sort of problem that would occur if we did not build far in advance.

The Prime Minister and this Government have been unwavering in their commitment to the delivery of high-speed, reliable, resilient connectivity to every home and business as soon as possible. For the United Kingdom to remain at the forefront of the global economy, our businesses and consumers must have access to the tools they need to thrive. Already, our superfast broadband programme covers over 96% of the country and has brought connectivity to more than 3 million premises that would otherwise have been bypassed by commercial deployment.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Labour Members recognise the importance of faster broadband. Indeed, I have worked with previous Ministers on this, and on the issue of notspots in my constituency. Does the Minister agree with me on the importance of the issue to young children, who need to study and do their school homework, and to people working at home? Issues have been raised about that in my constituency. Does he agree that the essential criterion of affordability must also be part of the Government’s strategy?

[Matt Warman]

Yes, the hon. Member is absolutely right. Teachers can only teach at the pace of the slowest broadband in the class if they are using digital technology; we have to be cognisant of that. We, with Ofcom, also have to be determined to ensure that competition continues to preserve the low prices that this country has typically benefited from.

[Seema Malhotra]

May I make a point of clarification? I was talking about children studying at home, and being able to do their homework. That is the issue raised with me by my constituents, particularly in areas where there are leasehold properties.

--- Later in debate ---

[Matt Warman]

The hon. Member is absolutely right. My point about teachers was that when they send pupils home to do their homework, pupils must of course have to have the tools to do it. The pencil is now digital, shall we say?

On that point, the universal service obligation will give people in the UK the legal right to request a decent and affordable broadband connection if they cannot get 10 megabits per second, and we intend to invest £5 billion to ensure gigabit-capable networks are delivered without delay to every area of the country. We are proud of the work that we have done, and continue to do, to support deployment across the United Kingdom, from the Scottish highlands to Cornwall, from Armagh to Anglesey, but the digital revolution is far from finished.

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

Will my hon. Friend give way?

[Matt Warman]

I give way to the former Chair of the Select Committee on Digital, Culture, Media and Sport.

[Damian Collins]

And I am standing for re-election, as the Minister knows.

The Bill gets rid of unnecessary delays in rolling out superfast broadband, which is what consumers want. He will know that in some areas of the country, particularly rural, notspot areas, one of the problems is that alternative providers—say, to Openreach—will not come in and provide superfast broadband because they are concerned that it will be overbuilt by another operator. Are there things we can do beyond the scope of the Bill—things he is working on now—to give more certainty to people who want to invest in the network, but want to make sure that they get a fair return if they do?

[Matt Warman]

Absolutely. My hon. Friend will know that the single greatest barrier to rolling out in the final 20% of the country is the risk of overbuild, which makes roll-out uneconomic and potentially makes using public funds even harder. We are absolutely working hand in glove with Ofcom on that, and to ensure that the system that we design ensures that the money—as my right hon. Friend the Member for New Forest West (Sir Desmond Swayne) said, it is a significant amount—is spent in the best possible way.

Those gigabit-capable connections, by which I mean 1,000 megabits per second and above, will ensure that British businesses can retain their global reach. They will be a catalyst for entrepreneurs in areas such as cyber-security, big data and artificial intelligence, and will support innovation in operations that use cloud services and blockchain technologies. They will transform how and where people work and collaborate.

Perhaps the most exciting promise of gigabit broadband is for consumers, because as we all know, poor internet connections hold people back. They prevent children from doing their homework, the ill from arranging appointments to see their doctors and those who need it most from saving money online. It was superfast broadband that facilitated the rise of Netflix, Spotify and the iPlayer; gigabit broadband, with its improved reliability, resilience and speed, will herald the era of the internet of things, the connected home, integrated transport networks and personalised healthcare, and that is why this Government are committed to investing in it across the country.

[Julian Sturdy (York Outer) (Con)]

I wonder what conclusions my hon. Friend draws from York, which became a gigabit city in 2008, and whether the Government are looking at that example and learning from what has happened in that great city.

[Matt Warman]

York is an exemplar for these sorts of projects. It demonstrates why investment is the right thing to do for the commercial sector, and why it is right for the state to support it. I look forward to the other place seeing the Bill in much more detail. That will happen imminently, I am sure—or maybe not; we will see.

As I say, superfast broadband facilitated the original internet that we are so familiar with, and gigabit will do so much more. It will support older people in staying independent for longer, will allow people to work how and where they choose to a much greater extent, and will make sure that commuters can join up their life in a much more effective way. However, the benefits for businesses and consumers can be realised only if digital infrastructure providers such as Openreach, Virgin Media, CityFibre and many others—increasingly more—can access homes, workplaces and public buildings such as hospitals and train stations. It is for that reason that this Government have made the deployment of gigabit broadband one of our key priorities.

With this Bill, we are taking the first hammer blow to the barriers preventing the deployment of gigabit connectivity. We will similarly take aim at new-build homes that are being built without access to futureproof connections, and we are exploring how we can make it easier for digital infrastructure providers to share the infrastructure of others, and how we can promote 5G mobile services by simplifying the planning regime.

[Daisy Cooper (St Albans) (LD)]

The Minister mentioned delays. I welcome the Bill, although it is overdue, and its objectives. One of our challenges, however, is that up to 3,000 applications a year could be going to the tribunal from suppliers wanting to secure access. The Minister said that he would be taking a hammer to the delays and barriers; what will he do to ensure that the tribunal has the capacity and resources to process those applications and ensure that they go through?

[Matt Warman]

The hon. Lady is absolutely right that the system is only as good as the resourcing behind it. We will explore every option to ensure that the tribunal gets those resources. We are confident that what we are proposing will work—we will make sure that it does—but of course we are open to considering what we can do to make it better as soon as we might need to.

[Seema Malhotra]

I thank the Minister for giving way again. Will he clarify how he envisages the Government working with the devolved Administrations and councils —we should bear in mind the very good work with Transport for London on connectivity through tube stations—so that we get the maximum for the investment made from the public purse?

[Matt Warman]

Telecommunications is a reserved matter, but I have already discussed how the system will work through the equivalent tribunal schemes in the devolved Administrations. The hon. Lady is absolutely right that although bodies such as TfL are not directly affected by the Bill, we are working with colleagues at the Department for Transport to make sure that London and other places get the connectivity that they deserve on public transport. Plans are forthcoming for wider deployment of the wi-fi system that is currently available only in stations.

As I say, the Bill ensures that those living in blocks of flats and apartments—known by the telecommunications industry as multi-dwelling units, or MDUs—are supported in accessing new networks. Operators have raised concerns that multi-dwelling properties are proving exceptionally difficult to connect. As I am sure Members will know, operators require the permission of a landowner before they are permitted to install equipment on a property.

[Mrs Flick Drummond (Meon Valley) (Con)]

I welcome the Bill, which will help those people, but what about commercial tenants in business parks? I am thinking particularly of rural areas such as Meon Valley, where there are problems with connectivity.

[Matt Warman]

My hon. Friend is right that we should not simply look at residential property. We are exploring with the industry what that issue looks like; the Bill has been carefully designed to make sure that it delivers on what both the Government and industry feel is right. Obviously, commercial property is different. It is less prone to the sorts of issues that we are tackling here, but I will be happy to work with my hon. Friend to see what we can do to help Meon Valley in particular.

For those who own their houses, the issue is simple: they request the service and sign a contract, and an operator does the installation. However, for those in flats, whether rented or owned as a leasehold, the permission of the landowner or building owner is required for the common areas—the basement, corridors, stairwells and so on. Currently, on identifying a property in their network build area, operators will attempt to contact landlords, request permission to install, and offer to negotiate a long-term agreement on access. Those wayleaves set out the responsibilities of both the landlord and operator in respect of the installation.

Evidence from operators, however, suggests that across the UK’s major digital infrastructure providers, about 40% of requests for access issued by operators receive no response. That cannot be acceptable. Through inactivity, a building owner can prevent multiple families and households from accessing the services that, as so many people have said, are essential for modern life. The UK’s digital infrastructure providers are already upgrading this country’s broadband network. Failure to address this issue now will give rise to pockets of connectivity disparity. Neighbours will have different connections, based on whether they own a house or flat, and on whether their landlord is engaged or absent. That cannot be fair, and the Government are acting to address it.

This is about commercial realities. The Prime Minister and I made it clear to the industry only last week that we want nationwide access to gigabit-capable connection as soon as possible. Our ambition is to deliver that by 2025.

[Edward Timpson (Eddisbury) (Con)]

We all welcome the Government’s commitment to full-fibre broadband, particularly in Eddisbury, where it remains pretty woeful, but the quality of mobile phone coverage also leaves a lot to be desired. Will my hon. Friend update the House on what is being done through the shared rural network to improve that through a final agreement, and will that include indoor as well as outdoor coverage?

[Matt Warman]

My hon. Friend is right that mobile coverage, while unrelated to the Bill, is an essential part of the connectivity solution. We have committed to the industry concluding its negotiations in the first 100 days of the Government, which takes us to the middle of March, and we are on track for that. On measurement of a network, we have historically been lumbered with standards that are not terribly useful. We need to do more to ensure that we provide the right kind of information to consumers; Ofcom and the Advertising Standards Agency have a hand in that, alongside Government.

If operators are to achieve our ambitious target, they need to get on and deploy their engineers and civil contractors, and to keep them moving to maintain momentum. They cannot afford to keep their teams idle while they wait for a response from a landlord that never materialises; from a commercial point of view, it makes more sense to bypass the property and its residents and deploy elsewhere to prevent that situation. The Bill will create a new application process in the courts that will allow operators, when faced with an unresponsive landlord and with a resident requesting a service, to apply to the courts to gain the rights to install.

It is important to make it clear that the new court application process is a last resort for operators. The key goal of the legislation is to increase the response rate to operators’ requests for access. The Government have always believed—and continue to believe—that the best, most efficient way for operators to install equipment in a property is through a negotiated agreement being reached between the operator and the landlord.

In December 2017, this House passed the Digital Economy Act, which among other things updated the electronic communications code. The code provides a regulatory framework for the relationship between landlords and telecommunications operators and includes provision for the operator to use the lands chamber of the upper tribunal, or its equivalent in the devolved Administrations, to have rights imposed in situations where a landlord is unresponsive.

To the best of my knowledge, as I speak, operators have not sought to use that power to address an unresponsive landlord, in part because they estimate that it will cost £14,000 per application, including legal fees and administrative costs, and take six or seven months in practice, and the outcome would by no means be certain. However, there are estimated to be 450,000 multi-dwelling units in the UK, housing some 10 million people. If operators’ current 40% failure-to-respond rate is projected across the country, we are talking about 180,000 cases and some £2.5 billion in costs. I am sure that Members will agree that the money and effort would be better used delivering better connections. The new process proposed by the Bill is proportionate and balanced, and places an exceptionally low burden on the landlord and a high evidential requirement on the operator.

An operator will be expected to have a tenant in the property who has requested a service. They will have issued multiple requests over 28 days and, thereafter, a final notice that explicitly says that the court may be used to gain access, and they will be able to show evidence of all the above to the courts. A landlord who wishes to take themselves out of the policy’s scope need respond to only one of the operator’s multiple notices. I am sure that hon. Members will agree that responding when someone writes is simply a courtesy. The expectation is that applications made to the tribunal through the provisions in the Bill will allow judges there to make decisions based on operators meeting an evidential threshold. This will allow decisions to be reached quickly and efficiently. Discussions are still ongoing about how we can make the process even faster.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The Minister has said that landlords will have opportunities to respond. If, for whatever reason, they do not respond, and they find themselves in the tribunal, will any costs fall upon them?

[Matt Warman]

The charging landscape will be set in collaboration with the tribunals and—I suspect that the hon. Gentleman will care about this in particular—the devolved Administrations, but the whole point of this regime is for it to be faster and far more affordable than the current regime. As we work with our colleagues in the Ministry of Justice and the devolved Administrations, we will have that at the front of our minds.

If applicants are successful, they will gain interim rights under the electronic communications code in relation to a property. Those rights will allow them to install, maintain and upgrade infrastructure for a period no longer than 18 months and will be accompanied by strictly defined terms regarding their use. These terms, which we have committed to consulting on publicly, will set out the standard to which works must be completed, and will make it clear that care must be taken to minimise the impact on other residents. If an operator wishes to continue providing a service to the building after the interim code rights have expired, and the landlord continues to be unresponsive, applicants may use provisions in the electronic communications code to apply for full rights. Time-limiting the rights to a maximum of 18 months incentivises operators to continue their efforts to contact landowners so as to avoid the cost, time and uncertainty of making a further application to the tribunal. It also ensures that where a landowner does engage, there is sufficient time for negotiations to take place and an agreement to be reached without disruption to residents’ broadband service.

To conclude, this is a technical Bill that achieves a specific purpose, but it does that in the context of the Government’s significant scale of ambition in this area. Gigabit broadband will be the enabling infrastructure of the next century. It will turbo-charge businesses, facilitate innovation and change how we work, live and engage in society, and how society engages with us. It is good for every part of this country, for our economy and for the public. The Government will support every home—every family wanting to shop online, and every pupil wanting to do their homework—whether it is in the middle of a city or the middle of nowhere, and whether it is a mansion, a terraced house or a block of flats. The Government will help them all to be part of this country’s gigabit future. I commend the Bill to the House.

--- Later in debate ---

[Matt Warman]

I thank the Labour party for its support, however grudging. It is important to say what this Government have done over the last 10 years, however the hon. Member for Batley and Spen (Tracy Brabin) describes them; they have fostered the largest digital economy in the G20. That success does not happen by accident; it happens through effective regulation that supports investment from the private sector. We need a proper plan, she said, and we have got one. What the Opposition have is a plan to nationalise BT at a cost of £100 billion—or at least I think that is what they have, because when she was asked that question, I did not hear a full-throated endorsement of the Labour manifesto position. Perhaps she is just positioning herself for her future leader. None the less, I enjoyed her reference to the Spanish Armada and I look forward to an historical tour de force that covers bells and a whole host of telecommunications infrastructure as we work through the passage of this Bill in Committee.

The hon. Lady raised a number of points. We consulted extensively in ending up with this solution. We will, of course, continue to be flexible where we can be to make sure that it evolves if it needs to. It is, as the hon. Lady said, a bespoke process that is dedicated to the telecoms industry. She is right that it would be silly to suggest that this should be treated in exactly the same way as other infrastructure, but we need to bear in mind the fact that digital infrastructure will become progressively more vital, as well as the question of how we line up the appropriate regimes.

[Paul Girvan (South Antrim) (DUP)]

When it comes to the infrastructure for broadband and its delivery, we are at the mercy of very few suppliers or providers. Unfortunately, although they put money into their pockets, they sometimes do not deliver at all to rural communities. That is our problem in Northern Ireland: there is money there, but the providers cannot deliver.

[Matt Warman]

The hon. Gentleman is right that effective competition is absolutely essential to rolling out broadband in the best possible way. I have seen for myself in Dundrum and Belfast a whole host of really excellent work in Northern Ireland, demonstrating not only that it can be done but that it can be done at an even more efficient price than in some parts of the rest of the United Kingdom. Good work is going on that promotes competition. The role of the Government is, of course, to make sure we get maximum value for money across the whole of the United Kingdom.

I pay tribute to both the new Members who spoke for the first time. My hon. Friend the Member for Totnes (Anthony Mangnall) asked us to reimagine what a significant encounter might look like, but, more seriously, elsewhere demonstrated the depth of knowledge and breadth of expertise that he brings to this place. His constituents are lucky to have him, even though he is neither a communist spy nor a mystic—to our knowledge. Just as the Bill represents a significant upgrade for broadband in this country, my hon. Friend is an upgrade on communist spies and mystics, so we pay tribute to him.

I also welcome my hon. Friend the Member for Bury South (Christian Wakeford). He was initially somewhat disparaging about the Bill, and I was worried. But he showed genuine expertise on the topic as well as on antisemitism, one of the most challenging issues of our age. I also pay tribute to his courageous predecessor. I know from his funny and down-to-earth speech that he will be a worthy Member of this place.

Finally, my hon. Friend the Member for Bishop Auckland (Dehenna Davison) said that she had seen two new Members becoming initiated into full involvement in this place; I should say that full involvement comes when one colleague like her says something nice about me while another—who I shall not name—heckles to say that she is probably wrong. Welcome to politics. My hon. Friend is of course right to say that the Bill introduces things that will make a real and meaningful difference—not just in urban constituencies, but across the country. People are living in multi-dwelling units and blocks of flats in all our constituencies.

I am also, of course, happy to discuss some of the other issues that various Members raised in this debate. Some of those will come out in Committee. I was grateful to receive applications from a number of Members to serve on the Bill Committee—we will try to ensure that they do not regret it. It will be an important piece of legislation and I am grateful to them for their expertise in this debate and beyond.

To conclude, I am sure that we can continue to work together across the House to bring this important Bill into law as soon as possible, and on the other legislation that forms the building blocks of a comprehensive plan to deliver gigabit-capable networks across this country.

We are bringing this Bill forward first because it allows us to crack on with a plan that we would otherwise have to deliver by waiting for a single, larger piece of legislation. The Bill allows us to address some aspects of a broader challenge, and we will get on with the rest of the plan as soon as possible.

[Chi Onwurah]

rose—

[Matt Warman]

I look forward to encountering the hon. Lady across the Dispatch Box—it would be mean not to give way to her.

[Chi Onwurah]

I was pleased to hear the third or fourth reference, I think, to a plan. Will he share with us when he will publish the plan for gigabit-capable broadband delivery?

[Matt Warman]

We will, of course, be talking much more extensively and consulting on various aspects of the plan, which the hon. Lady will see emerge in good time. We are genuinely keen to be collaborative on many aspects of the Bill, because it is good to see cross-party support for a Bill that we all acknowledge is important. We hope to be able to do the vast majority of any legislation with cross-party support, because that is the right thing to do.

Government Members care passionately about this issue, and I am sure that the same spirit will continue as the Bill makes its passage through the House. This is a real contribution to the agenda of levelling up across the country and bringing digital infrastructure to every school, home and classroom in a way that allows all our constituents to benefit from the infrastructure that they deserve, and from a digital revolution that this Government will foster.

Question put and agreed to.

Bill accordingly read a Second time.

Telecommunications Infrastructure (Leasehold Property) Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Telecommunications Infrastructure (Leasehold Property) Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 6 February 2020.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Mr Marcus Jones.)

Question agreed to.

Telecommunications Infrastructure (Leasehold Property) Bill (First sitting)

Matt Warman Excerpts

Committee stage & Committee Debate: 1st sitting: House of Commons
Tuesday 11th February 2020 Public Bill Committees

[Chi Onwurah]

My hon. Friend makes an excellent point, and her past experience in the IT sector leads her to understand and see the divides that exist—for example, people on lower incomes are less likely to use the internet and have access to broadband. There is also a real rural divide, with our rural telecoms infrastructure not enabling the kind of economic success stories of small businesses that she mentions. Unfortunately, the Bill does not address that. Indeed, many of the operators, such as TalkTalk, Mobile UK and Hyperoptic, have said that we need to upgrade our infrastructure, but the Bill does not address that.

In the last six months the Prime Minister has held three different positions on what kind of telecoms infrastructure we need: when he was standing to lead his party, he promised to deliver “full-fibre connectivity” to all households by 2025; the Government manifesto talked of “gigabit-capable connectivity” by 2025; and the Queen’s Speech dropped the 2025 reference altogether, promising instead to accelerate the roll-out. Will the Minister clarify exactly what the Government’s target is for broadband connectivity? Whatever the target is, and whatever the lofty ambitions are, I am afraid that the Bill will not achieve them.

The Bill is designed to enable people who live in flats and apartment blocks to receive gigabit-capable connections where their landlord repeatedly fails to respond to telecom operators’ requests for permission to install their infrastructure. The network builders say they face significant challenges in connecting people living in flats and apartment blocks when they do not receive a response from the building owner to requests for access. According to Openreach, 76% of multi-dwelling units miss out on initial efforts to deploy fibre because of challenges in gaining access.

The Bill provides a bespoke process for telecoms operators to gain access to MDUs in order to deploy, upgrade or maintain fixed-line broadband connections in cases where a tenant has requested an electronic communications service but the landlord has repeatedly failed to respond to an operator’s request for access. For a telecoms company to install equipment such as cables on public or private land, formal permission through an access agreement with the landowner/occupier is required. Under such an agreement, the landowner grants the communication provider a licence to install, access and maintain equipment on their land. The Bill takes into account the fact that landlords are not always responsive or eager to meet their tenants’ needs.

The measures in the Bill are welcome and the Opposition will not be voting against it. In the context of the lost decade, however, we are truly dismayed by the Bill’s limited scope. It proposes only minor measures to ease infrastructure build-out by giving operators more powers to access apartment blocks when tenants request service. The sector has welcomed the Bill but without any great enthusiasm, saying that the difference it will make will be marginal. The trade body for the tech industry, techUK, says it does not go far enough, stating that

“from new builds to street works”,

many issues

“have not been tackled by the Government’s Bill.”

We have tabled several amendments to improve the Bill, but before I speak to amendment 9, I will briefly mention additional flaws that the Opposition have not sought to fix through amendments. There is the matter of consistency with other regulations. The internet is now an essential utility for modern life and, as such, telecoms operators should possess the same powers as those who provide other utilities, but the Bill does not go far enough on that. We appreciate that the Government acknowledge the necessity of broadening the rights of telecoms providers, but they have not actually done so in the Bill. They have given no statutory rights of access to telecoms companies and placed no obligations on landlords to facilitate access.

Do the Government recognise that the internet is an essential utility, and do they believe that telecoms should be brought into line with other utilities, for which forced entry is permitted on the grounds of ensuring that there is no threat to life or safety? Obviously, that might not be the case with telecoms, but I want to understand the comparison that the Government make between the telecoms utility and other utilities.

The amendment is intended to ensure that operators can apply for a part 4A order only if they intend to supply gigabit-capable broadband. Of course, we need to understand what gigabit-capable broadband is, but I am sure that the Minister will relieve us of that uncertainty. As I said, we have suffered 10 wasted years under Conservative Governments of various types, a unifying theme of which has been a misunderstanding of technology interspersed with a misuse of it.

Given that the Prime Minister has expressed three different positions in six months, what is the aim of the Bill? Does it aim to provide gigabit broadband? On Second Reading the Minister said that the legislation will be a “hammer blow” to crack our woeful broadband nut. I can only assume therefore that the legislation does not serve simply to give operators opportunities to lock in my constituents to slow broadband. The Minister said that it must deliver gigabit-capable broadband, so I cannot imagine that he will have any objections to enshrining that in the legislation by supporting the amendment.

I also seek clarification on whether anything in the Bill confines it to fixed-line operators. Will the Minister confirm whether, under the terms set out in the Bill, it would be possible for a mobile operator to install a mobile base station, for example, for the purposes of delivering gigabit-capable broadband, either to one building or another? How does the Bill ensure, in the case of wireless or mobile broadband, that services are limited to a particular building only?

The amendment would make it clear that the Government are proceeding with their commitment to deliver on gigabit-capable broadband and that the Bill cannot be used to deliver slower broadband, so it will contribute to our broadband infrastructure.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

It is a pleasure to serve under your chairmanship, Mr Davies. I welcome the hon. Lady’s acceptance that the Bill is an important part of the Government’s programme to deliver gigabit-capable broadband as quickly and as far across the country as possible. She is right that we have not got the numbers that some of our European competitors have, although we are now up to 3 million premises with full-fibre broadband in this country—the latest figure is 11%, rather than the 8% that she quoted. None the less, the Government are significantly more ambitious than that, so today we are delivering this narrowly focused Bill that will quickly address a pressing issue that the industry faces. As she also said, the industry has broadly welcomed it.

I will address the main parts of the Bill in the stand part debate later. As the hon. Lady has said, the Bill will introduce, when demanded by occupants of a building, a right for communications providers to access a building to provide a service that is fit for the 21st century when landlords have been unresponsive. It is, as she has said, a pressing issue for the industry that has affected too many tenants already and in part has affected too many tenants because the existing process is overly cumbersome. The Bill introduces a process that is far more speedy and cost-effective for operators.

[Seema Malhotra]

One issue that is not clear to me in the Bill or the explanatory notes is whether there is a time limit within which the operator might need to respond to a request from a tenant. There is more about the operator giving notices to the landlord—the grantor—but what about a deadline by which an operator might need to respond to a request from a tenant?

[Matt Warman]

There is no set deadline imposed on a private commercial organisation because individual operators are not all regulated in the same way. For instance, Openreach is regulated differently. It is a commercial decision for them, and the Government will do all that they can through processes such as this to try to encourage a speedy response. It is for Ofcom to regulate responses, as it does in the complaints procedure. As the legislation comes into force, Ofcom will consider whether response times to complaints might be thought of in the same way.

[Seema Malhotra]

Currently, in the way that the implementation of the Bill is envisaged, if an operator chooses not to respond or takes many months, is there anything in place to sanction or challenge that?

[Matt Warman]

The answer is that at the moment that is one of the problems. The Bill introduces the process by which we might look at whether the responsiveness to requests is something that Ofcom might look at. However, the hon. Lady is right to ask. We want to see a speedy roll-out, and the response from operators is an important part of a speedy roll-out. We are very much on the same page. We would not want to see operators ignoring the requests of potential customers, and I hope that neither would the operators, because in many cases they have a potential commercial opportunity.

Let me address the two specific questions asked by the hon. Member for Newcastle upon Tyne Central. As discussed on Second Reading, we see broadband as an important utility but, as she acknowledged in that debate, it is not the same as other utilities. It is obvious that as time goes on more and more essential services will depend on connectivity. As that situation evolves, we will need to keep it under review. However, she is accurate when she says that the threat posed by a lack of water is different from that posed by a lack of broadband. We should treat them differently; it is horses for courses.

[Chi Onwurah]

Not for some teenagers.

[Matt Warman]

Yes, I am not sure how I would cope myself, but the principle is the same.

We sympathise with the spirit of the amendment. There is currently little evidence that anyone seeks to install services that are not gigabit capable; if one goes into an MDU, it is almost always fibre that is being installed. However, as the hon. Lady said on Second Reading, being technology-neutral is important and might enable the speedier roll-out of a service. If a group of residents or a telecoms operator sought to install a service that was not gigabit capable, although that is extremely unlikely, I do not think the Government should seek to withhold better broadband from a block of flats, for instance, simply because that is the only option available. Nor do I think, to be fair to the hon. Lady, that that is her intention. We should maintain technology neutrality and the commitment to speed and a possible service sooner rather than later, rather than have the Bill restrict it, when it is in most instances a hypothetical problem—we are not aware of a situation in which a slower service would have been suggested or provided by an operator.

On the hon. Lady’s point about mobile base stations, again the Bill is technology-neutral, but it is important to note that placing a base station on the top of one building usually benefits the buildings around it, as she knows, rather than that building itself. The triggering of the request that the Bill covers would not necessarily be valid because it would be a different building. It does not imply rights to install equipment on a connected piece of land rather than on the building itself. That is an issue we discussed at some length earlier. Both points indicate that although the measure is technology-neutral, it is more likely that it will not apply to either 5G or to base stations.

[Chi Onwurah]

I appreciate the points that the Minister is making, and the tone with which he is making them. Gigabit-capable broadband is technology-neutral. That is the only justification for having the full-fibre broadband that the Prime Minister initially promised. I therefore still do not understand why the Government are reluctant to put that in the Bill. As the Minister says, although there is no evidence of a desire to roll out a network that is less than gigabit capable now, once we have competition for a gigabit-capable network, some operators might seek to capture buildings and deliver broadband that, although better than what we have in some of our areas—the broadband in some areas is very poor—is not actually gigabit capable.

[Matt Warman]

I genuinely sympathise with what the hon. Lady is seeking to do, but her amendment also constrains a Bill that benefits from taking the approach that it does. Technically what she proposes would amend only one part, but amendment 9 would not amend the circumstances under which the part 4A order can be made because they are set out in paragraph 27B. There is a logical inconsistency in what she proposes, but the principle is very much the same as what the Government are seeking.

The hon. Lady would also inadvertently be delaying the roll-out of a service that would be a significant improvement even if it were not gigabit capable, and she undermines the principle of aspects of technology neutrality. Our intention has always been for the whole code to be technology-neutral. There would be no direct benefit from her amendment, although we very much share her ambitions. We want the Bill to benefit tenants whatever the service they request and, with that in mind, although the Government sympathise with her ambitions—

[Seema Malhotra]

I would like some clarification on a couple of points. What might the minimum speed be and would it be out of scope for a part 4A order to be used to upgrade broadband from copper networks to fibre, for example, if broadband were not fast enough for whatever reason? Do these plans sit alongside, or are they separate from, plans to implement the universal service obligation for a decent service broadband speed of 10 megabits per second, which is clearly much less than 1,000 megabits per second?

--- Later in debate ---

[Matt Warman]

I thank the hon. Lady for intervening just as I was finishing my remarks. There is no legislative flaw on the speed of a service that a commercial operator might seek to install, but the market is obviously going upwards rather than downwards. We have seen no evidence that anyone is seeking to install copper, for instance. The direction of travel in the market is clear across the country. When the USO comes into force, it will sit above this legislation. On her question about the scope of the Bill, I can confirm that those matters would be out of scope.

The Government want all networks to be gigabit capable, and through the work that we and Ofcom are doing, everything is moving in that direction, in terms of both market forces and the Government’s legislative programme. Although I sympathise with the spirit of what the hon. Member for Newcastle upon Tyne Central is seeking to do, I ask her to withdraw the amendment.

[Chi Onwurah]

I am grateful to the Minister both for his response and for his sympathy with what we are trying to do, despite his inexplicable reluctance to actually do it.

Part of the Minister’s critique of the amendment is that it is not comprehensive in amending other aspects of the legislation. He is actually critiquing his own Government’s approach, because the problem is that we do not have a comprehensive strategy—or any kind of strategy or plan—to deliver the gigabit-capable broadband of which he and the Prime Minister have spoken. I remain concerned that the legislation may well be used to deliver broadband that does not meet the expectations or the just deserts of British citizens, whether or not they live in apartment blocks.

I look forward to the Minister setting out at some point a plan that enshrines gigabit broadband in our lives, just as the Prime Minister enshrines it in his speeches. I do not believe that it is worth pressing the amendment to a vote. I note that the Minister’s commitment to gigabit broadband is on the record, as is his expectation that the legislation will be used to deliver it. That will have to suffice for today. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Chi Onwurah]

My hon. Friend is right. I seek to understand whether the Government have considered that, and what their plans are to reflect it. As my hon. Friend says, it may be that tenants and leaseholders do want broadband access. We all have busy lives and are not full-time network engineers. They are not necessarily going to focus on that, whereas a mobile operator has the resources and expertise to make such a request. Tenants may feel that they do not want to annoy their landlord further in case they find themselves subject to an eviction notice or something similar. Mobile operators are in a better position to take on the power of the landlord in making that request. Operators acknowledged that potential logjam in the consultation on the Bill. Virgin stated that they would recommend that the Bill remove the requirement for tenant requests to trigger the process and that they typically

“will not attempt to seek a wayleave from a landlord unless…convinced of the prospect of selling services to the tenants within the MDU.”

Virgin also stated that demonstrating a tenant’s interest added another layer of administration to an already costly and bureaucratic process.

The Internet Service Providers’ Association, a trade body, also recommended an amendment to allow operators to use this mechanism where they are met with an “unresponsive” landlord, regardless of a tenant’s requests. ISPA would further recommend that all landlords be compelled to engage meaningfully with the code, regardless of any tenant request.

Why have the Government apparently ignored or rejected the industry’s requests? There may be a number of reasons. Perhaps the Government do not trust telecoms operators to make credible requests, perhaps they are afraid that big operators—given their deep pockets and big legal departments—will capture all the buildings. Perhaps they simply want to reduce the legislation’s scope so that it is less effective than it would otherwise be. Amendment 7 seeks clarification from the Minister of why the circumstances in which requests are initiated are so limited, and why the Minister has not given operators the opportunity to also make the request.

[Matt Warman]

Once again, I absolutely understand the spirit in which the hon. Lady raises the amendment, and I admire her gymnastic ability to bring all the points about leasehold into a telecommunications Bill. It is admirable. She is right to address her point specifically on business parks, and will know that the Bill does include the power for the Secretary of State to expand the types of land covered by the Bill, when there is evidence, to business parks, for instance. We do not have all the necessary evidence to do that. The issue of speedily fixing the problem for MDUs while also having the opportunity to fix the problem for business parks in the future is in the spirit of the Bill. I hope that she understands that it makes sense. She knows that there are almost half a million MDUs in this country. It is important to address that problem as soon as we can.

She will know that the Bill is ultimately about a relationship between a telecommunications provider and an unresponsive landlord. The provision can be triggered by a tenant of a building. That is an important factor. However, she will also be aware that the Bill contains the important concept of the “required grantor”. Proposed new paragraph 27B(1)(c) of schedule 3A to the Communications Act 2003, with which I know we are all intimately familiar, confers on the operator a code right in respect of connected land, or allows a person to be bound by such a code right exercised by the operator. In practice, that means that anyone with an interest in the land will have to be contacted. Therefore, when it comes to the operation of the Bill, there will be an opportunity for communications providers in practice to work with anyone in a building to seek to trigger what they would hope to go on through improved provision of broadband. Ultimately, however, the relationship is between the communications provider and the landlord, or the unresponsive landlord.

I think the hon. Lady seeks to expand the number of people who can have an impact on the process. Obviously, the consent of a freeholder, for instance, would still be required even though the property was sub-let. I hope she understands that, while we envisage everyone being able to trigger the process, the legal mechanism under which it operates ultimately is between the communications provider and the landlord—or the unresponsive landlord or the tribunal.

[Chi Onwurah]

I thank the Minister for giving way. I should say that I am familiar with the electronic communications code, having worked for years with it on my desk at Ofcom. It certainly is not a piece of regulation that I would expect tenants of buildings to be familiar with. Will the Minister clarify whether he is saying that the tenant can make the request, or that the tenant can work with the leaseholder, the freeholder and the telecoms operator to make the request? Can the tenant make the request?

[Matt Warman]

Ultimately, it is for the telecommunications provider to make the request, having been contacted by people with an interest in the building. However, it is important that it does that in the context of the person who is the leaseholder or the freeholder in any particular building. Obviously, there is nothing to stop an individual getting in touch with a potential telecommunications provider and saying they would be interested in taking up a service, but the formal relationship ultimately has to be with the person who has the leasehold or the freehold. It has to be between the communications provider and, in due course, the landlord, responsive or otherwise. I hope that clarifies some of what the hon. Lady asked about.

I appreciate that amendment 4 is probing, and I understand what the hon. Lady seeks to do. In the usual course of business, any communications provider would seek to expand its network because it knew there was demand. To enable a provider to seek to expand its network without doing any work with a potential tenant that may, in due course, trigger the code would expand that process significantly.

We have tried to take a balanced approach to accessing land to deploy or maintain networks, and it is essential that we try to keep that balance. We believe that allowing operators to access property without the landlord’s agreement is justifiable only in limited circumstances—where a customer has expressly requested a service, or where the operator has taken the steps outlined in the Bill to evidence that it has tried repeatedly to contact the landlord. It seems to me that that combination is the fair and balanced approach, and that if we allowed operators to do that without the consent, in effect, of either an absentee landlord or the people in a building, we would go further than we would reasonably want to. Actually, I think in some ways that would go further than what the hon. Lady suggested, but that would be the consequence of amendment 4.

We remain mindful of striking a careful balance between the rights of both landowners and telecoms operators. The need for a request to come from a tenant is an important element of that careful balance. Ultimately, a tenant, under whatever type of leasehold or contract can make that request. With that balance in mind, I hope that the hon. Lady is content to withdraw both amendment 7 and amendment 4.

[Chi Onwurah]

I thank the Minister for his response, which has given some more clarity, but I am afraid he has not clarified what the situation will be.

Amendment 4 highlights the lack of a coherent telecoms industrial strategy and a plan for the delivery of gigabit broadband to the country. Opening it up to mobile operators could have unforeseen consequences, which the Government apparently have not had the foresight to investigate fully. While limiting it in this way could be detrimental, I see no alternative but not to press amendment 4, because the Government have apparently not investigated the best way of opening this up to mobile operators.

In relation to amendment 7 the Minister talked about leaseholders, freeholders, tenants and customers, but I remain unclear whether tenants—those who are not the leaseholder or freeholder but are occupying the building or the land—who make a request for service from a broadband provider are within the scope of this legislation.

[Matt Warman]

They can make the request but, within the scope of the Bill, there is also a requirement for consent from the freeholder, for instance.

[Chi Onwurah]

I thank the Minister for that. Will he point to where in the Bill it says that a tenant can make the request? I am sorry to put him on the spot, but the Bill seems to refer to leaseholders and freeholders, and I do not see tenants there. That is the reason for amendment 7. On that basis, and in order to provide clarity, I would like to press the amendment to a vote.

[Matt Warman]

My understanding is that, within the context of this Bill, a tenant would absolutely be within the legal definition. I am not pretending that I am wholly answering the hon. Lady’s question, because there is still a requirement for the freeholder, for instance, to be a part of the process.

Question put, That the amendment be made.

--- Later in debate ---

[Chi Onwurah]

I beg to move amendment 8, in clause 1, page 2, line 14, at end insert—

“(f) the proportion of the operator’s network which uses vendors defined by the National Cyber Security Centre as high risk vendors does not exceed 35%.”

This amendment would prevent operators which heavily use high risk vendors from being granted Part 4A orders.

I want to move to an issue that has dominated our discussions on telecoms infrastructure for the past 18 months and is not reflected in the Bill at all: the role of high-risk vendors such as Huawei in the UK’s full-fibre, 5G and gigabit-capable future. The Foreign Secretary recently said that he wanted to

“legislate at the earliest opportunity to introduce a new, comprehensive telecoms security regime to be overseen by the regulator, Ofcom, and Government.”

He also said that the Government would

“legislate at the earliest opportunity to limit and control the presence of high-risk vendors in the UK network, and to allow us to respond as technology changes.”—[Official Report, 28 January 2020; Vol. 670, c. 709-711.]

Just this weekend the Minister’s senior colleagues on the Back Benches continued to express dismay at the rejection of our technological sovereignty.

I therefore want to give the Minister an opportunity to do what the Foreign Secretary called for—I hope that the Minister agrees that a Bill on telecoms infrastructure might be considered the earliest opportunity to legislate—by taking the first step in achieving the aim of limiting the role of high-risk vendors in our telecommunications networks. The amendment would limit the use of high-risk vendors so that

“the proportion of the operator’s network which uses vendors defined by the National Cyber Security Centre as high risk vendors does not exceed 35%.”

The National Cyber Security Centre stated in a recent report that for mobile operators security does not pay, and that market incentives had to be changed to deliver on security. It also made it clear that having high-risk vendors in the network was a risk, which seems obvious, but that the risk could be mitigated if the Government took certain steps, such as limiting the vendors to 35% of the network. The Government have yet to make clear the 35% of which network, when it should happen by and what enforcement powers would apply to the operators that do not meet the requirements. Although the Bill focuses on fixed-line operators, I am sure that the Minister and the Committee are aware that with the convergence of fixed-line and mobile operators, the core networks and aspects of the access network can be shared.

The amendment would prevent operators that heavily use high-risk vendors from being granted rights under code powers. It would therefore send out a clear signal that the Government are serious about following the recommendations of the National Cyber Security Centre, and as a consequence would lead to some monitoring of what is already in place and some reporting of that in order to meet the requirements.

Mr Davies, I am sure you agree—and I hope the Committee agrees—that nothing is more important than our national security. I am equally sure that you will not allow me to set out all the issues raised by the challenges of national security and our mobile networks. I will test your patience by saying that I have been highlighting for years the fact that there is a hole the size of a mobile network in the Government’s cyber-security strategy.

The NCSC says that the market is broken. Well, the Minister will not be able to fix it today, but I do expect him to answer some questions. Will he at least give some practical detail regarding how the recommendations of the National Cyber Security Centre will be implemented? Also, can he confirm that operators that heavily use high-risk vendors will not benefit from code powers, including those enabled by the legislation?

[Matt Warman]

I once again admire the hon. Lady’s ability to get national security matters into the discussion, as she herself to some extent implied, although her doing so was a lot less gymnastic than her peroration on leasehold. Although today is the first opportunity that we have had to talk about telecommunications since the announcement, there will be a far broader important debate on national security and high-risk vendors. That legislation will, of course, overarch many pieces of legislation, including this Bill.

We have listened carefully to the broad debate, both on high-risk vendors and on the amendment. I know that Members are interested in this matter, following the Government’s decision. In that decision, it was made clear that there will be new controls across the board on high-risk vendors, who will be excluded from all safety-related and safety-critical networks in critical national infrastructure, excluded from the security-critical core network functions, limited to a minority presence of up to 35% in the other parts of the network, and subjected to tight restrictions, including exclusions from sensitive geographic locations.

The Government made the decision on high-risk vendors after considering all the necessary information and analysis from the NCSC, industry and our international partners. It was an evidence-based decision, taken on a comprehensive security assessment, and noting the realities of the telecoms market. Members will be given a full opportunity to contribute to the important debate on high-risk vendors when the relevant legislation is brought before Parliament. However, as I think the hon. Member for Newcastle upon Tyne Central knows, to do so for this piece of legislation risks introducing a degree of incoherence in what is an important debate. We will do it in a coherent, sensible way in due course, and I hope that Members are reassured that the Government remain committed to working with Parliament as a whole to protect our future telecoms network, important though this Committee is.

[Seema Malhotra]

This is indeed a very important area. I slightly disagree with the Minister on whether referring to high-risk vendors is to extend the debate on today’s legislation. However, in terms of the implementation of the legislation, and operators and leaseholders going through the process, assuming that those operators obtain permission from the granters, will it be Ofcom that works to ensure that they abide by today’s legislation and the future high-risk vendor legislation?

[Matt Warman]

The hon. Member asks me to pre-empt what will be an important piece of legislation. What I can say is that we will ensure that nothing in today’s legislation could be used to circumvent that broader and more important piece of legislation, because obviously we have to ensure that 35% means 35% in whatever context.

I hope that Members understand that this is a hugely important issue. The Government are intent on doing things in a coherent and sensible way, so that we deal with matters of national security in the appropriate place rather than in a patchwork of measures with bespoke things in such places as this legislation. I therefore hope that the hon. Member for Newcastle upon Tyne Central will withdraw her amendment.

[Chi Onwurah]

I thank the Minister for his response. I understand that he is in a difficult position. He talked of a coherent response from the Government, but it is the lack of any coherence in our telecoms infrastructure that has placed us in this position. My deep and real concern is when the Minister says “in due course”. We know that this form of language avoids any precision as to whether something will happen in the next few weeks, months or years. Telecoms infrastructure providers are taking decisions on their equipment suppliers as we speak. Customers and businesses, but also the public more broadly, are concerned about the security of their broadband networks. The Government have said that there will be a plan to ensure that security, but the only detail we have is that it will come forth “in due course”. Will he give a little more precision?

[Matt Warman]

The hon. Lady asks for coherence, but when I offer it to her she says that she does not like it. It is important to say that guidance from the NCSC is already out there, and the Government are seeking to put that on a statutory footing as soon as possible. The idea that information is not already out there is unfair, not least on the NCSC, which has worked incredibly hard on this. It is now the Government’s role to have a parliamentary debate and put that on the statute book.

[Chi Onwurah]

I thank the Minister for that response. He is right that I am seeking coherence in a plan, rather than coherence in rejecting changes to the legislation. The important point is that the NCSC guidance mainly takes the form of excellent blogs written by the technical director, which are very helpful in many ways but do not go into detail about, for example, what the 35% means in practice, how it will be measured, how it will be enforced, who will regulate it and at what point these enforcement measures will start.

I accept that “as soon as possible” is slightly more enthusiastic than “in due course”, and I recognise the difficult position that the Minister is in. While noting my real concerns that to deliver on our gigabit-capable infrastructure we need greater clarity on the role of high-risk vendors as soon as possible, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Matt Warman]

I do not wish to sound less conciliatory than previously, but those matters are already defined in the Bill. I will briefly go through them, but the definitions that the hon. Lady seeks are already in the Bill, which renders the amendment unnecessary.

First, new paragraph 27B(1)(d) makes it clear that a request notice is a notice in accordance with paragraph 20(2) of the electronic communications code. That sub-paragraph is clear that it constitutes a notice in writing from the operator to a person setting out the code, rights and terms of agreement sought by the operator. The notice states that the operator is seeking the person’s agreement to those terms. In addition, the hon. Lady will know that Ofcom already produces template paragraph 20 request notices to ease the burden. I am confident that the request notice is already defined.

Secondly, the hon. Lady asks about the response. That answer lies in new paragraph 27B(4), which makes provision for how the required grantor—the landlord, as we might say in common parlance—responds to the operator. That provision states clearly two ways in which a landlord can respond: he or she either

“agrees or refuses, in writing”

or

“otherwise acknowledges the request notice in writing.”

That makes it straightforward and transparent for landlords. The amendment risks upsetting that balance by unnecessarily introducing additional regulations.

I am confident that those terms are already defined and I consider that it would be unhelpful for us to make additional requirements.

[Chi Onwurah]

I thank the Minister for his clarification regarding the request. I acknowledge that there is detail on requests, as requests have been required previously, as the Minister said. With regard to the response, the term “otherwise acknowledges” is quite broad. Given that the next step is to go to a tribunal, which will incur costs, it would be helpful to have greater clarity on that term.

[Matt Warman]

The important point is that there has to be a formal response “in writing”. By definition, in responding a landlord ceases to be unresponsive. This legislation aims to deal with unresponsive landlords.

[Seema Malhotra]

It would be an interesting exercise to go through all the different ways in which one could respond, but we would then be here for the afternoon session. The purpose of the Bill is to speed up the process for residents to secure superfast broadband. New paragraph 27B(4)(a) reads

“agrees or refuses, in writing, to confer or otherwise be bound by the code”

and so on. A response will surely be either an agreement or a refusal, or a point of clarification. The “otherwise acknowledges” could be as simple as an email saying, “I have received your notice.” For the purpose of speeding things up rather than providing new ways in which blocks could be put in place, it is important that the Minister provides further explanation of what is intended to be covered by “otherwise acknowledges” and how it helps, given the clarity of 27B(4)(a).

[Matt Warman]

I come back to my central point, which is that the Bill addresses the problem of landlords who do not respond. Ultimately, it does not confer a right to install equipment against the will of a landlord. Once a landlord engages with the process, they are not considered unresponsive and are not covered by the Bill. Obviously, a landlord has the right to prevent access—either through prevarication or by withholding permission—in almost all circumstances, whether for telecommunications infrastructure or for anything else.

I completely understand what the hon. Member for Newcastle upon Tyne Central is seeking to do, but ultimately the things that she wants defined are already defined on the face of the Bill, and they will clearly not benefit from being separately defined again. It is important that we are consistent with the electronic communications code and, although I sympathise with the hon. Lady’s desire to see broadband rolled out wherever it can be, I ask her to withdraw the amendment.

[Chi Onwurah]

I thank the Minister for his response. He said that the Bill does not confer a right to install equipment against a landlord’s will, and I am concerned that that effectively means that tenants do not have a right to superfast or gigabit-capable broadband, which I would argue is an increasingly important part of modern life. We joked earlier about the difference between access to water and access to broadband, but for many people broadband is an absolutely essential part of their working and social lives, and a forward-looking Government would ensure that citizens have a right to gigabit-capable broadband. Although the universal service obligation confers some rights, it does not deal with recalcitrant or unwilling landlords.

[Seema Malhotra]

Does my hon. Friend agree that there could be a compromise or third way on this? The terms of new paragraph 27B(4)(b)—

“otherwise acknowledges the request notice in writing”—

are superfluous if a landlord is seeking to push action further down the road. If that is an incentive for landlords to engage less positively with those seeking to build networks, would the Minister at least consider reviewing—if not deleting—sub-paragraph (4)(b)? If responses from landlords fall considerably under that option, rather than agreeing or refusing with the reasons that one would expect in a positive dialogue, will the Minister consider whether that option should stay in the Bill?

[Matt Warman]

rose—

[The Chair]

As a matter of procedure, the Minister may wish to respond to the intervention by way of intervention, which I would welcome.

[Chi Onwurah]

Thank you for that guidance, Mr Davies. I want to emphasise that my hon. Friend makes an excellent point. I am sure that the Minister will agree that the Committee should look for a compromise that allows this important legislation to pass. Landlords may be eccentric and unwilling in their responses, and people’s gigabit-capable broadband should not depend on that. If the Minister is interested in intervening, I will happily give way.

[Matt Warman]

I am delighted to intervene spontaneously. Essentially we are having a conversation about whether there is a universal right to internet access, and whether that should be something that people can request by one means or another. That concept has been widely explored in many ways. It is surely not right to introduce a universal right of access for people who happen to live in blocks of flats via a small route intended to speed up one process. If we wanted to do that, we would surely seek to do it in a coherent and wide-ranging way, rather than in an incoherent way that I am sure the hon. Lady would criticise at great length.

[Chi Onwurah]

That is an interesting response from the Minister, because having coherent legislation—I think the Opposition called it a “digital bill of rights”—was exactly what we sought, in order to protect citizens and offer them the kinds of digital rights that are required in the digital age. We have not had such a response from the Government; we have incoherent and ad hoc legislation. That was one part of the argument being made.

My hon. Friend the Member for Feltham and Heston mentioned another part of the argument. Landlords are individuals, and we have all had experience—I certainly have—of landlords who were eccentric or who responded in ways that were unresponsive. Perhaps it would be a positive step to consider how the legislation works in practice. If unresponsive landlords are an issue, will the Minister at least commit to reviewing the situation?

--- Later in debate ---

[Chi Onwurah]

Well, I am glad you do not find it strange, because it reflects what I am afraid experience has taught me—that the present generation of Conservatives appears to be willing to sacrifice competition to vested interests. Under the Bill one operator could capture a building, roll out infrastructure to that apartment block and fleece the tenants there for ever—having had the first mover advantage in a block, and/or having installed infrastructure so that other competitors cannot install further infrastructure. Examples of that might be using very small ducts, or taking up all the equipment space in a basement.

The amendment would ensure that tenants could not be locked into a particular operator, by requiring that it should be possible for the infrastructure to be shared easily. It would give Ofcom the duty to define what “easily” means. Having worked for Ofcom, as I have said, I know that that can be done quite easily.

Other countries require shared access to building infrastructure. Has the Minister looked at that? Both France and the Netherlands have a much higher proportion of apartment blocks than we do in the UK. As I am sure Members of the Committee are aware from visiting those countries, proportionately many more people live in apartment blocks, and their approach to broadband regulation has ensured that there is better access for competition through a requirement for infrastructure sharing. Could not the Government take stock of those pre-existing solutions, just across the channel, to respond to some of our competition concerns?

Ofcom is taking steps to promote infrastructure competition in what is known as ducts and poles. At this point I should probably declare another interest, in that I was responsible for Ofcom’s 2009 survey of the availability of duct and pole infrastructure. I hoped that it might be taken up a little more quickly than this. Companies laying high-speed fibre cables for broadband and mobile networks may benefit from greater access to Openreach’s telegraph poles and underground tunnels under decisions announced last year by Ofcom, so I would like the Minister to confirm whether similar ease of access can be a part of the Bill. The opportunity to let rival companies access the new buildings when a company such as Openreach provides access represents a real opportunity to increase competition in the market and avoid operator lock-in for what is an essential utility, as the Minister has said. Will the Minister confirm, therefore, that in the spirit of recent Ofcom initiatives we can also extend the scope of the Bill?

[Matt Warman]

I can return to my conciliatory tone, in the sense that in this case we are interested, through both Ofcom and the Department, to see what can be done on infrastructure sharing. The hon. Lady is right that it is potentially a hugely important initiative, and I enjoyed her account of her 2009 duct and pole work; but she is also right to say that the work is still ongoing, because it is a hard thing to do and it is important that we take a coherent approach to it. In that spirit, I am afraid I would argue that we should be coherent in our approach to infrastructure sharing across the piece, rather than simply introducing a separate regime for people living in multiple dwelling units.

The Bill aims to support leaseholders to access the services they request from the providers they want. It already ensures that leaseholders are not per se locked in to services provided by a single provider; nothing in the Bill prevents a leaseholder with an existing gigabit-capable connection from one service requesting an alternative network to come in and request code rights as well. The Government cannot and should not compel independent commercial companies to alter the way they choose to deliver their services unless there is evidence that a problem exists. That problem is one that we are looking at more broadly.

Far from improving competition in access to gigabit services, the amendment may actually have the unintended consequence of doing the opposite. As the hon. Member knows, much of the cost of connecting premises is in the initial installation. The amendment could therefore seriously undermine the case for operators to make that initial installation, as they risk being undercut by second or third movers who would not have to bear the same costs. Forcing network builders to deploy in a way that allows competitors easy access is likely to benefit only the largest players in the market.

While I sympathise with the aim of the amendment, I do not think the hon. Member seeks to entrench the position of any one large operator further. Part 3 of the code already provides for operators to be able to upgrade electronic communication apparatus and to share use of such apparatus with another operator, should they wish.

The hon. Member might alternatively be seeking to test our thinking about the terms of what an agreement to be imposed might look like. It is worth saying that the process of that agreement is dictated in paragraph 27E(6) of the code, which makes it clear that before we make regulations in relation to the terms that she has discussed, which will be under the affirmative resolution procedure, we must consult interested parties, including operators. The Bill already envisages that the views of interested parties such as other operators will be invited before the details of a regulation are made.

I hope that the hon. Lady understands that we are looking at this more broadly, that we are seeking to do it in the coherent way that I know she is so keen on and that we are going to look at making sure that that is fair and compatible with our other approach. It would surely not be right potentially to restrict the advantage of investment in a particular MDU in a way that could actually discourage that investment in the first place and leave people stranded without the broadband that the whole Bill is intended to produce. With that in mind, while I sympathise with what the hon. Lady is seeking to do, I hope she understands that what she is proposing does not actually do what she seeks to do and could hold back some of the progress that we seek to make with the Bill. I ask that she withdraw the amendment.

[Chi Onwurah]

I want to continue in the conciliatory tone that the Minister has returned to, so I start by saying that I welcome his clarification that nothing in the Bill prevents a tenant who already has a broadband service from making a request for another broadband service and so invoking the code rights that the Bill gives. I know that that will be welcomed by tenants who have an unacceptable service or receive bad customer service, of which there are unfortunately far too many.

I welcome that clarification, but I cannot be so welcoming of the rest of the Minister’s speech, which raises many issues of competition and economics within the telecoms network sector, with which I am very familiar. When he says that the amendment would not do what I am looking to do, I am afraid that we will have to agree to differ on that. I find it strange that I should say this to him, but the key difference is that Opposition Members do not believe that there is a contradiction between investment and competition, which was the implication of his comment that the amendment, by opening up access to competitors, might chill investment. All the evidence shows—I again refer him to Labour’s example of unbundling local loop—that competition drives investment; it does not chill investment.

I think the Minister was trying to say that a small operator looking to put infrastructure into a 100-apartment block would do so only if it knew that it had exclusive access to that building for a number of years, to recoup its investment, which means that he acknowledges that tenants of that block would likely be locked into using that operator. However, smaller operators could benefit from having easy access to infrastructure installed by larger operators.

On that basis, the Minister’s comments do not reassure me. I gently say to him and the Government that saying that we cannot take measures now because at some point in the future we will have a coherent framework is partially what got us into this position of incoherent ad hoc responses to legislation that is obviously obsolete. While we cannot solve all problems with this legislation, we can at least help to solve problems for tenants and leaseholders in apartment blocks by ensuring greater opportunities for competition. As such, I will press my amendment to a Division.

Question put, That the amendment be made.

--- Later in debate ---

[The Chair]

We now come to the question that the clause stand part of the Bill. Members who have not spoken may want to make a short speech, but I am not requesting it.

Question proposed, That the clause stand part of the Bill.

[Matt Warman]

I will be considerably briefer than I would be in a normal stand part debate, because we covered a lot of ground in discussing the amendments. However, suffice it to say that the purpose of the Bill is to create a bespoke process for telecoms operators to seek access to leased premises, starting with MDUs in cases where a landlord repeatedly fails to respond to an operator’s requests for access. As we have discussed, part 4A is the crux of the Bill. To be brief, new paragraph 27A is an introductory provision that explains the ambition of a court making an order imposing an agreement that provides rights under the code between an operator and a landlord. That will be where: first, those rights are required in respect of land that is connected to the lease premises; and secondly, the occupier or another person with an interest in the land has not responded to repeated notices given by the operator seeking agreement to confer or otherwise be bound by those rights.

The Bill sets out the time period between giving and receiving notices, and it is only in the case of unresponsiveness that an operator is able to apply for a part 4A order. Crucially, an effect of new paragraph 27D is that a landlord who responds in writing to any of the operator’s notices will come out of the scope of the part 4A process, as we discussed at some length earlier. The Bill makes it clear that access rights may be used only for the purposes of providing an electronic communications service to the target premises.

Therefore, I hope that you will agree, Mr Davies, that this clause, in terms of both its length and the matters contained within it, is central to the Bill and to the policy underpinning it. It provides a much-needed process that will play a large part in ensuring that many tenants are part of this Government’s nationwide gigabit broadband upgrade.

[Chi Onwurah]

I am disappointed that the Minister has not seen fit to accept any of the amendments that we have put forward.

[Matt Warman]

I accept the spirit.

[Chi Onwurah]

The Minister indicates from a sedentary position that he has accepted the spirit, and I welcome his conciliatory tone in that respect. I hope that the clause will achieve its objectives by making it easier for telecoms operators to gain access in order to deploy gigabit infrastructure. I remain convinced that this will not do much to make up for the time lost in deploying gigabit-capable infrastructure and that, in rejecting our amendments, the Minister has lost an opportunity to improve the Bill. However, we accept that the Bill is positive and will support the clause.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2

Related amendments

Question proposed, that the clause stand part of the Bill.

[Matt Warman]

Clause 2 is a brief but important clause that introduces the schedule that makes related amendments to two pieces of legislation to complement the Bill. That legislation is the Communications Act 2003 and, contained within it, the electronic communications code and its related jurisdiction rights.

[Chi Onwurah]

I rise simply to say that we are happy for clause 2 to stand part of the Bill.

Question put and agreed to.

Clause 2 accordingly ordered to stand part of the Bill.

Schedule

Related amendments

[Matt Warman]

I beg to move amendment 2, in the schedule, page 9, line 17, at end insert—

“(10A) In paragraph 95(1), after paragraph (a) insert—

(aa) in relation to Wales, the First-tier Tribunal, but only in connection with proceedings under Part 4A;”.

This amendment is consequential on Amendment 3.

[The Chair]

With this it will be convenient to discuss the following:

Government amendments 3 and 1.

New clause 1—Report on resources to deal with proceedings arising under Part 4A of the code—

“The Secretary of State must prepare and publish a report on the adequacy of the resources available to First-tier Tribunal to deal with proceedings arising under Part 4A of the electronic communications code and must lay a copy of the report before Parliament within six months of this Act receiving Royal Assent.”

[Matt Warman]

At its heart, the Bill is about making it faster and cheaper for digital infrastructure providers to seek rights to install their services in leasehold properties. The Bill is also concerned with not permitting consistently unresponsive landlords to stand in the way of receiving the connectivity that households need. The Government have tabled three amendments that respond to helpful suggestions, first made by the senior judiciary of both the first-tier and upper tribunals. Our amendments also respond to the welcome interventions made by hon. Members on Second Reading—I am glad to see some of those Members here today.

Without these amendments, applications would commence in the upper tribunal in England and Wales and the Lands Tribunal for Scotland, and would be dealt with in the county court in Northern Ireland. Commencing cases in the upper tribunal is a reasonable route, because it aligns the new process with the electronic communications code. The process still works in principle, but we should also ensure that it works as well as possible in the real world to deliver the faster, cheaper outcomes that we seek. We continue to be mindful that, with up to an estimated 2,650 cases per year in England and Wales, we need to hear cases at the most appropriate level.

Presently, the upper tribunal hears cases and makes determinations in respect of disputes concerning the interpretation. As such, the Government need to continue to work with that tribunal and its equivalents elsewhere. The need to ensure that the upper tribunal has the capacity to deal with the part 4A applications was raised on Second Reading. The matter has also been the subject of discussion between my officials and their counterparts at the Ministry of Justice, as well as senior members of the judiciary from the relevant chambers of the first-tier and upper tribunals.

The number of part 4A cases is estimated to be significant. The upper tribunal, with just two judges, would not have the bandwidth to deal with that volume of cases, regardless of the fact that the applications are expected to be relatively straightforward. While the process as drafted continues to work in principle, therefore, in practice we agree with the representations that we have heard that placing an additional burden on the upper tribunal would not necessarily provide us with the resources that we need. We are grateful to senior members of the judiciary from the first-tier and upper tribunals with whom my officials met.

In the light of those considerations, the amendments provide for applications for part 4A orders to commence in the first-tier tribunal in England and Wales and the sheriff court in Scotland. I hope that Committee members agree with that important change. In comparison with the small number of judges that I mentioned, 15 salaried judges and an additional 125 fee-paid judges sit in five courts across England, and 142 sheriffs preside over 39 courts in Scotland, so the change significantly increases the resources available and addresses some of the concerns expressed, sensibly, by hon. Members from both sides of the House on Second Reading. I am glad that we have found a sensible way forward that increases the resources available. It is a sensible and pragmatic move that has a significant effect but does not alter the principle of the Bill.

New clause 1 proposes that a report be made to make it clear that we have the necessary resources. As I said, we are confident that applications for part 4A orders will, in due course, be heard on the papers—without the need for an oral hearing—and our intention is for the process to be as low in burden as possible. Of course, we will monitor the resourcing of the first-tier tribunal to ensure that it has the capacity to dispense with those cases. Ultimately, that information can be obtained in a number of ways, such as by tabling parliamentary questions or through the fact that the proceedings are public.

Again, we sympathise with the intentions of the hon. Member for Newcastle upon Tyne Central, but it is clear from the amendments tabled in my name that we are already addressing the substance of what she asks. Ultimately, the information that she seeks is already widely available in equivalent cases and will continue to be in future, so introducing an additional administrative burden would neither provide more information nor be a sensible use of resources. I hope that she will withdraw the new clause in that spirit.

[Chi Onwurah]

It is a pleasure to respond positively, and not just in spirit but in practice, to the Minister’s amendments. They respond to concerns that we raised on Second Reading and those raised by others about increasing resources. The number of judges available to consider those requests and cases leaves much to be desired. Hopefully the Government’s amendments will make the limited scope of the Bill more effective, so we are happy to accept them.

New clause 1 responds to that by acknowledging that our judiciary is under severe strain at every stage. The new clause is designed with accountability and transparency in mind, so that we can see the impact of the new legislation on the resources available. The legislation sets out new legal functions. As with all good legislation, we must ensure that the new mechanisms are robust and well-resourced to ensure that the legislation does what it is meant to do, and does not fail when it makes contact with reality.

The new clause would require a report on resources to deal with proceedings arising under part 4A of the code be prepared and published within six months of the Act receiving Royal Assent. It aims to ensure that we see the impact on our judiciary. Although the information may be available, I am sure that the Minister is aware that nothing concentrates minds as much as laying a report before Parliament for scrutiny by right hon. and hon. Members. That gives an opportunity to see how the legislation works in practice. I am sure the Minister is proud of the legislation and the impact it will have, so he must welcome the opportunity to speak to that in the House.

We do not have an impact assessment for this legislation. It is a short Bill, but that does not mean that its impact may not be important. When I spoke to operators, they estimated that it might cost around £30,000 to take a request through the tribunal. That is their estimate—I have not seen any Government figures to confirm whether they consider that to be high or low, but that would have been a welcome part of an impact assessment. The sum of £30,000 for a tribunal to access an apartment block with 10 apartments means an additional cost to the operator of £3,000 per customer. That has an impact on the business case for that investment in the first place.

--- Later in debate ---

[The Chair]

We will adjourn by 11.25 am.

[Matt Warman]

I take the hint, Mr Davies. I will briefly address a couple of issues raised by the hon. Lady. The cost of an application by an operator will be determined by the court, but we anticipate that the application fee will be under £500. She might have been including the cost of investment, which by definition is an investment that the operator is seeking to make by applying through the code.

[Chi Onwurah]

To clarify, I am not including the cost of investment. From talking to operators, on top of the cost of applying they will have lawyers’ fees and internal costs. Those are the costs that I have been told about—not the cost of the infrastructure, but the cost of going to tribunal for an organisation, as part of its daily operating costs.

[Matt Warman]

None the less, the legislation cuts a tribunal process from several tens of thousands of pounds to a £500 fee, which is indisputably a significant reduction.

The hon. Lady talked about focusing the minds of Ministers. I would say gently that parliamentary questions, oral questions and indeed Westminster Hall debates also focus minds. I look forward to celebrating the success of the Bill through that means, rather than through the proposal set out in the new clause.

Amendment 2 agreed to.

Amendment made: 3, in the schedule, page 9, line 22, leave out paragraphs 4 and 5 and insert—

“4 The Electronic Communications Code (Jurisdiction) Regulations 2017 are amended as follows.

4A In regulation 2(1) (interpretation), after the definition of “the code” insert—

‘“Part 4A proceedings” means proceedings under Part 4A of the code;’.

4B (1) Regulation 3 (conferral of jurisdiction on tribunals) is amended as follows.

(2) The existing text becomes paragraph (1).

(3) In that paragraph—

(a) in the words before sub-paragraph (a), after “Subject to” insert “paragraph (2) and”;

(b) for sub-paragraphs (a) and (b) (including the final “and”) substitute—

“(aa) in relation to England and Wales, the First-tier Tribunal and the Upper Tribunal, and”;

(c) omit the words after sub-paragraph (c).

(4) After that paragraph insert—

“(2) Functions are exercisable by the First-tier Tribunal under paragraph (1)(aa) only—

(a) in connection with relevant proceedings in relation to England that have been transferred to the First-tier Tribunal by the Upper Tribunal, and

(b) in connection with Part 4A proceedings (whether in relation to England or Wales).

(3) Any provision of the code which confers a function on the court is, to the extent that the function is exercisable by a tribunal under this regulation, to be read as if the reference to the court included reference to that tribunal.”

4C (1) Regulation 4 (jurisdiction for commencement of proceedings) is amended as follows.

(2) In the heading, for “relevant” substitute “certain”.

(3) The existing text becomes paragraph (1).

(4) After that paragraph insert—

“(2) Part 4A proceedings must be commenced—

(a) in relation to England and Wales, in the First-tier Tribunal, or

(b) in relation to Scotland, in the sheriff court.”

5 The amendments made by paragraphs 4 to 4C do not limit the provision that may be made by regulations under paragraph 95 of the code.” —(Matt Warman.)

This amendment provides that proceedings under new Part 4A of the Code must be commenced in the First-tier Tribunal (in relation to England and Wales) or in the sheriff court (in relation to Scotland), instead of in the Upper Tribunal or the Lands Tribunal for Scotland respectively.

Question proposed, That the schedule, as amended, be the schedule to the Bill.

[Matt Warman]

I shall be brief. The schedule sets out related amendments to other legislation which were introduced by clause 2. It contains the amendments to section 402 of, and schedule 3A to, the Communications Act 2003, also amending the electronic communications code. We have already discussed the consequences of the schedule so, with that, I commend it to the Committee.

Question put and agreed to.

Schedule, as amended, accordingly agreed to.

Clause 3

Extent, commencement and short title

Amendment made: 1, in clause 3, page 7, line 21, leave out—

“amendment made by paragraph 4 of the Schedule extends”

and insert—

“amendments made by paragraphs 4 to 4C of the Schedule extend”.—(Matt Warman.)

This amendment is consequential on Amendment 3.

Question proposed, That the clause, as amended, stand part of the Bill.

[Matt Warman]

The clause makes an important provision in respect of the Bill’s territorial extent and commencement. As Members may be aware, telecommunications is a reserved matter in all three of the devolution settlements. The territorial extent of the Bill is to England and Wales, Scotland, and Northern Ireland, but there is one exception: the amendment made by paragraph 4 of the schedule, which extends only to England and Wales, and Scotland because the statutory instrument being amended by paragraph 4 does not extent do Northern Ireland. It is important to have that on the record. I commend the clause to the Committee.

Question put and agreed to.

Clause 3, as amended, accordingly ordered to stand part of the Bill.

[The Chair]

We now come to—

[Matt Warman]

On a point of order, Mr Davies. I will briefly do the customary thing of thanking the Bill Committee members who have had such a full and compressed day. I also thank all the officials who have worked so hard on the Bill and you, Mr Davies, for such brilliant chairmanship.

[The Chair]

Thank you to everyone involved.

Telecommunications Infrastructure (Leasehold Property) Bill

Matt Warman Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 10th March 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

I beg to move, That the Bill be now read the Third time.

Today we have had an important debate on an important Bill. The Government have heard loud and clear the points made in all parts of the House. As we move towards the telecoms security Bill, we will engage intensively with colleagues across the House to make sure that we make our case at every possible level, and we will underline the fact that we will always put national security at the very top of our agenda.

Although this is a short and technical Bill, it is an important one. Fast, reliable, resilient broadband connections are the lifeblood of our economy and our society, and ensuring that every home and business can access these connections is a priority for this Government. It is vital if we are to create the conditions where anyone can succeed and thrive, regardless of their background or their postcode, as my right hon. Friend the Secretary of State said. The Bill sends a clear message that this must be a priority for landowners because fast reliable broadband is good for their residents. Connectivity can create thriving technology scenes in rural areas. It can enable closer relationships for the socially isolated. It can open people up to a world of inspiration and education.

This Bill demonstrates that this Government are serious about doing what it is necessary to do to ensure that everyone, wherever they live, is part of a levelled-up United Kingdom. It shows that the Government will create an environment that promotes investment and encourages deployment, and will not shy away from making the changes necessary to ensure that every household can access the connectivity they need from the provider they want.

This is a vital Bill that is critical to the success of our digital economy in the decades ahead. I thank Members from across the House for the scrutiny that they have provided today and for raising all the points that they have raised. The Government will, as I say, continue to engage intensively with those concerns. We will bring forward the telecoms security Bill before the summer recess. In advance of that, we will provide all the information that we possibly can. I commend the Bill to the House.

[Chi Onwurah]

We have had a very interesting and at times lively debate. On Third Reading, I would say that this Bill gives us baby steps towards rolling out the infrastructure that so many millions across this country are in desperate need of—full-fibre broadband infrastructure. This is no time for the Government to be patting themselves on the back. This is a mediocre Bill that, in addition, risks being derailed by the Government’s failure to take a longer-term view on our national networks, full-fibre, 5G and more. In terms of the Secretary of State’s responses, we will take forward the reassurances on tenants and hold the Government to account. Tenants should be able to access the provisions of this legislation. I fear that the Government do not understand the basis or need for competitive infrastructure, because the Bill does not support competitive access to multiple-dwelling units. We will hold the Government to account on that. We will also hold them to account on the assurances given on information and better dissemination of digital skills and digital guidance.

The big Huawei hole in which the Government find themselves has not been reconciled by today’s debate. The Secretary of State promised several things, including a new telecoms security Bill, but he could not give us any of the details. He promised a diversification strategy but, to be clear, that was the basis of the telecoms supply chain review report in July 2019, and we would hope that there would be some detail on what that strategy is. The Budget is tomorrow. Will we see funding for significant investment in the diversification of the supply chain that the Secretary of State promised?

Will we get greater clarity on what the diversification strategy is leading to? Is it leading to non-dependence on high-risk vendors within this Parliament or at some unspecified date in the future? We have heard little on the industrial strategy that will make diversification possible. Are we talking about UK capacity to deliver 5G and 6G in future networks, or are we talking about greater support for Japanese and Korean companies to enter our supply chain? Will the timetable for this diversification strategy be on the face of the telecoms security Bill?

Those questions all remain to be answered. It is an indictment of this Government’s support for our national security—and the clarity of that support for our national security—that at this stage so many Conservative Members feel it necessary to vote against their own Government, in order to press home the needs of our national security and, specifically, our technological capability in the key areas of 5G, 6G and future telecommunications. We are told that, in network design, it is always important to design in the possibility of breach, but the Government seem to be designing in breach of our entire network system.

[Matt Warman]

indicated dissent.

[Chi Onwurah]

The Minister shakes his head. In that case, I hope he will be able to say how we will ensure that we are not dependent on high-risk vendors before the end of this Parliament. Until we see a detailed plan, an industrial strategy and funding for all the different components of that, the Opposition will remain concerned that the Government are not prepared to make the interventions necessary to ensure that our national security is safeguarded.

Telecommunications Infrastructure (Leasehold Property) Bill

Matt Warman Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Wednesday 24th February 2021 Commons Chamber

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

I beg to move, That this House disagrees with Lords amendment 1.

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Government amendments (a) and (b) in lieu of Lords amendment 1.

Lords amendment 2.

Lords amendment 3, and Government motion to disagree.

[Matt Warman]

At the time of the Bill’s Second Reading in the House in early January 2020, it would have been impossible for any of us to foresee the challenges that this country would endure over the following 12 months.

Throughout the pandemic and the lockdowns, this nation’s telecommunications network has provided information and enabled education; it has allowed businesses to operate, children to continue to learn and those in isolation to continue to speak with their families. I take this opportunity to pay tribute to the UK’s digital infrastructure providers, our internet service providers and our mobile network operators. They have stepped up and worked with us to bridge gaps in provision, be that through whitelisting websites, providing data to struggling families or connecting the Nightingale hospitals. They have done Herculean work, and we should all be grateful.

--- Later in debate ---

Proceedings resumed.

[Matt Warman]

Members will be aware, none the less, that despite the importance of that connectivity, there are barriers facing infrastructure deployment, and there is no panacea. But there are steps and then strides and then leaps in the right direction, and this Bill is an important one of those steps.

We expect these provisions, which will affect some 10 million people in the UK who live in flats and apartments, to make a real difference to the vital roll-out of better broadband to which the Government remain totally committed. I trust that Members will have seen that a consultation on further potential changes to the electronic communications code has now been published. We will carefully consider whether further legislative changes are necessary as a result of what we learn from that consultation. Crucially, these measures will take into account the interests of those needing greater connectivity, balancing the interests of landowners as well. Just as with the Bill, that balance is crucial to ensuring that we continue to bridge the digital divide.

The House is here to debate three Lords amendments. I will deal with Lords amendment 1 first. The purpose of Lord Clement-Jones’s amendment on Report in the other place was to clarify that people who rent their flat can make use of the policy in the Bill. Earlier this year, when the Bill made its way through this House, hon. Members felt similarly to Lord Clement-Jones, and that sentiment was subsequently shared in the other place. It remains the case that the Bill has always applied to people living in a flat under the terms of any lease. The most common form of tenancy in the UK, assured shorthold, is a lease, and it has never been our intention to provide otherwise. However, we are aware of the strength of feeling, and while, as drafted, Lords amendment 1 would create an inconsistency with the rest of the electronic communications code, the amendment I am moving clarifies that people who occupy a property under a lease are able to make use of this policy, and it does so in a way that avoids legal ambiguity by clarifying the definition of the lease in the electronic communications code to ensure that that definition includes, for example, any tenancy.

I also encourage the House to agree with Lords amendment 2, tabled in the name of the Minister, Baroness Barran, on Third Reading in the other place in the light of concerns that have been raised there—and, indeed, here—regarding anti-competitive behaviour. It protects competition in the market and ensures that those installing infrastructure do not do so in a way that would prevent a subsequent operator from installing their own apparatus.

I now turn to the main business, which is really in Lords amendment 3. This amendment would add a new clause to the Bill requiring the Secretary of State to commission a review of the impact of the Bill on the electronic communications code, including an assessment of whether the code is sufficient to support 1 gigabit broadband roll-out to every premises by 2025, and further requiring that separate assessments be made of whether the code should be amended to introduce a number of rights, which I will come on to in a minute.

I am grateful to members of the other place for bringing forward the amendment, which the Government understand aims to provide transparency, but those good intentions would none the less introduce some impractical and unnecessary measures to the code that fall outside the purpose of the Bill and, indeed, the code itself. The code is a framework for regulating agreements between landowners and telecoms operators for the installation and maintenance of communications equipment on public and private land. The code is technology-neutral. It is simply not possible to judge whether the code supports access to 1 gigabit broadband because it is not designed to facilitate solely gigabit-capable connections; it is about access to land to facilitate installation, maintenance and upgrading.

That said, while it is logical to assume that, with the market currently deploying those connections, the provisions in this Bill will be used for deployments of those connections, they may equally be used for superfast, ultrafast or other services. The only basis on which to judge the code is to examine the availability of all types of connections. That is why Ofcom, the independent regulator, publishes its annual “Connected Nations” report, which provides a wealth of information on fixed and mobile connections. Should Ofcom raise questions, the Government continue to provide answers in the House and the other place. The report shows progress in 4G and 5G.

Furthermore, there are also other established means of scrutiny through Select Committees. In the past three months, there have been a number of reports from various Select Committees. Hon. Members can rest assured that the Department’s feet are being firmly and regularly held to the fire. Ministers, of course, always relish that process.

The amendment moves on to matters relating to the powers of gas, water and electricity suppliers. The Government recognise that further changes to the code may be required if it is to support the achievement of our coverage and connectivity targets effectively. Shortly before the Bill’s Third Reading in the other place, the Government published a further consultation on possible changes. I encourage Members to respond to that consultation. I am sure they will appreciate and understand the importance of respecting a person’s right to enjoy their property peacefully, so any intervention that seeks to interfere with property rights must be proportionate and justified. The new consultation seeks those reports until 24 March.

Additional permitted development rights are a planning matter and an issue not for this Bill or the electronic communications code. I am sure that many Members know that telecoms operators are afforded significantly more flexibility in how they install their infrastructure. That includes, for example, permitted development rights and exemptions from a number of requirements to request planning permission. That is why my Department continues to work very closely with colleagues in the Ministry of Housing, Communities and Local Government. In August 2019, we launched a joint consultation with MHCLG regarding potential reform of permitted development rights. The Government published our response in July 2020, and, subject to a technical consultation, we will take forward proposed reforms. We expect to publish that consultation in spring this year.

Encouraging telecommunications operators to undertake infrastructure works alongside other works was another issue raised. It relates to the co-ordination of streetworks to promote greater collaboration between telecoms providers, local authorities and the suppliers of gas, water and electricity. My Department has worked closely with the Department for Transport on a number of areas of mutual interest, and it will continue to do so.

In 2020, the Government released a new street manager digital service—the largest update to streetworks in a generation—that has already helped to simplify and improve the planning and co-ordination of works throughout England. That is vital for the deployment of broadband. I hope that hon. Members recognise that streetworks are a transport issue, and not a matter for this Bill or the electronic communications code. It should be noted, furthermore, that roads are a devolved matter and therefore should not be considered in legislation that relates to the reserved matter of telecoms, as this Bill does.

Although we absolutely appreciate and understand that this is a well-intentioned amendment, it is, as I have outlined, none the less impractical. It seeks details on matters outside the code’s competence to provide, such as gigabit connections, and improved planning and streetworks. I hope hon. Members are none the less reassured by the recent publication of the Government consultation, which seeks responses on whether further changes are required to the electronic communications code. I also hope they trust that the Government stand ready to look at the evidence that is made available and act where the need to act is demonstrated. We are hopeful that, once the responses are received and considered, we will have an even more informed idea about the way forward to support the delivery of connectivity and the role that the Government should play in relation to that. I ask the House to disagree with amendment 3.

I thank all hon. Members who are down to contribute for taking an interest in this vital issue. Parliamentary scrutiny is an important part of our commitment to rolling out the broadband that all our constituents deserve across the country. I look forward to hearing the subsequent debate.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab) [V]]

I begin by thanking colleagues in the other place who have worked so hard to improve the Bill—and for longer than many would have expected, as the Government delayed the Bill until they thought they could resolve their Back Benchers’ concerns on the human rights amendment. That continues to ping-pong as part of the Trade Bill, but I hope we can now move quickly and decisively to resolve the matters of telecoms infrastructure.

The pandemic has shown us how important good fast stable broadband is, with so many people currently depending on it to work from home and stay in contact with friends and family. It is just over a year since I stood at the Dispatch Box for the Second Reading of the Bill and argued that broadband was a vital utility. The pandemic has proved that beyond doubt. I join the Minister in paying tribute to the infrastructure providers who have supported our connectivity at this difficult time, while recognising how much still needs to be done to close the digital divide. I am pleased that the Lords amendments we will be discussing today reflect the issues that Labour has been raising consistently at every stage of the Bill.

The first amendment removes ambiguity over the definition of a lessee and expands the scope of the Bill to be more inclusive with regard to tenants. The amendment would ensure that introductory or probationary tenancies in local authority housing, flexible or joint tenancies and demoted tenancies were all covered. Labour first raised this as amendment 2 on Report, and the Liberal Democrats tabled an amendment in the Lords. This has been replaced by the Government amendment in lieu, with parts (a) and (b) making technical changes to avoid contradictions between this Bill and the Communications Act 2003. We welcome that, but we are concerned that the Government missed this issue, leaving it for others to raise. The interests of tenants as well as those of leaseholders must be kept in mind.

The Government’s amendment, Lords amendment 2, is based on Labour’s amendment 3 on Report. Labour is the party of business, and we are keen to remove barriers to competition and interoperability, and to encourage a competitive market. However, we feel that the Government’s changes to this amendment mean that it does not go far enough.

As the Bill stands, one operator can technically “capture” a building, locking the residents into its service. The Government amendment seeks to ensure that this cannot happen, and the option for diversification is left open. However, it does not encourage deployment and inter- operability. Labour is pleased that the Government have offered concessions on competitiveness and inter- operability, so we will not oppose this amendment as we consider it a gesture in the right direction. However, UK businesses and consumers deserve more than gestures. They need real action to promote competition, and the Bill was a chance for the Government to do that.

Finally, Lords amendment 3 is Labour’s new clause. This has been designed to provide accountability and transparency via a review of the impact of the Bill and the sufficiency of the electronic communications code to support gigabit roll-out. Labour believes that this is vital to ensure that the mechanisms in the Bill are robust and well resourced enough to ensure that legislation does not fail when it makes contact with reality. We do not want to be back here with further legislation after more wasted years for our telecoms infrastructure. This amendment provides the mechanisms to empower the Government to meet and assess their roll-out targets. The Government tell us that the Bill is just about freeholders, but it is clearly part of a larger puzzle. Indeed, the noble Lord Parkinson confirmed that, stating that the Bill was

“one discrete instrument in the Government’s overall strategy”—[Official Report, House of Lords, 2 June 2020; Vol. 803, c. 1331.]

We must know, first, what that strategy is and, secondly, how this Bill is contributing positively or negatively to the telecoms landscape. The Minister said that this would undermine technology neutrality, which is somewhat rich, given that the gigabit ambition was a technologically neutral downgrading of the Prime Minister’s original fibre ambitions.

--- Later in debate ---

[Matt Warman]

I will address the number of interesting points that have been raised.

The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) raised a number of interesting points. She talked about satellite broadband and a broader strategy for this Government’s vital gigabit ambitions. The Opposition are right to raise those issues, but I humbly suggest that they also know that this Bill is not the place to put a wide-ranging review of the Government’s gigabit strategy. They will get that strategy in short order, but I think they know that this is not the place to insert that review. I hope that they will not seek to turn the Bill into a Christmas tree, as has previously happened, but I have huge sympathy with the hon. Lady and look forward to providing her with the detail that she craves.

A number of Members made points on broader connectivity. Whether it is the issue that my hon. Friend the Member for Bury South (Christian Wakeford) raised in his maiden speech or the communities that my hon. Friend the Member for West Bromwich West (Shaun Bailey) mentioned, people have been held together in a way that we had not envisaged before the pandemic, and now we realise that connectivity is essential for that sense of community.

The hon. Member for Inverclyde (Ronnie Cowan) raised issues around definitions. The drafting of the Bill and our consultation on the electronic communications code are specifically to address those legitimate issues he raises, but we do not envisage them arising in practice. The hon. Member for Westmorland and Lonsdale (Tim Farron) is absolutely right that the USO does not function perfectly; Ofcom is investigating it. He is absolutely right that the emergency services network is a core part of the ambitions of the Department for Digital, Culture, Media and Sport to deliver a shared rural network, and we are engaging intensively with the Home Office on that. I remember being involved in an incident myself at the top of Scafell Pike, where we had to descend the mountain in order to get mobile phone signal to call a helicopter, which thankfully came rather quickly, but would have come earlier had we had a signal on the top of that mountain.

Finally, let me address the international issues that were raised by my right hon. Friend the Member for Bournemouth East (Mr Ellwood). The global role of the UK’s potential as a leading digital economy is well documented, and Bills such as this are part of our ability to make the very most of those ambitions. We will use this as a small piece in the puzzle, and it is a part of that broader strategy that we will be delivering to the House as soon as we can. He also tempted me to talk about broader tech monopolies, but because this is a small and tightly drawn Bill, I will resist that temptation.

I thank the Bill team and all the officials across many Departments who have worked so hard over the past year to reach this stage. It will help people up and down the country to access the digital services that they need, and I commend it to the House.

Lords amendment 1 disagreed to.

Government amendments (a) and (b) made in lieu of Lords amendment 1.

Lords amendment 2 agreed to.

Motion made, and Question put, That this House disagrees with Lords amendment 3 .