Matt Warman
Main Page: Matt Warman (Conservative - Boston and Skegness)
Matt Warman (Boston and Skegness) (Con)
I beg to move,
That this House notes variations in the effectiveness of roll-out of fixed and mobile superfast broadband in different parts of the UK; and calls on the Government to host a not-spot summit to consider ways to tackle this issue.
Hon. Members reading the Order Paper could be forgiven for thinking that this debate is about the roll-out of superfast broadband across the UK, but it is about much more than that. It is about making sure that the farmer in my constituency who needs to communicate with DEFRA can do so without driving miles to a nearby town. It is about making sure that he can grow his business and employ more people. It is about the disabled woman in a hamlet in my constituency who must currently choose between paying £20 a month for a dire mobile connection or face the isolation of living effectively without access to much of the modern world. It is also about the school in the heart of urban Boston teaching some of the most vulnerable young people, and doing so sharing a single 4G connection because their existing broadband connection is not good enough.
Broadband makes a profound difference today to businesses, to shopping, to entertainment, to education, to healthcare and to everything that goes with life in the 21st century. The £1.2 billion of public money invested so far could not have gone on a better cause, and we should remember that the coverage obligations imposed on a single 4G licence amount to a further £2 billion of public subsidy. But at its heart today’s debate is about making sure that we do not allow the digital divide to widen and deepen. A one-nation Government must deliver the same digital opportunities for all of us.
Ian C. Lucas (Wrexham) (Lab)
The hon. Gentleman talks about a one-nation Government. Does he think that it was a mistake in 2010 for the incoming coalition Government to jettison the Labour Government’s commitment to universal broadband, which would have delivered what he has described?
Matt Warman
I will come on to the universal service later.
The possibilities that the web offers to level the playing field between rural and even deprived urban areas and the best connected will alleviate the pressure on roads and on almost every public service that we offer. Although we are in the middle of a roll-out programme that has been among the fastest in the world, there remains a widening and deepening digital divide in Britain.
Mark Field (Cities of London and Westminster) (Con)
I warmly welcome not just this debate, but my hon. Friend’s words about the importance of this issue. He stressed, and I want to put on the record, the concerns that many of us have, even in the centre of this capital city, here in central London, where there are major problems with superfast broadband, and the importance of ensuring that we have as much competition as possible to put BT and Virgin Media on their mettle to make sure that we get the improvements for which my hon. Friend is so passionately making the case.
Matt Warman
I stress to my right hon. Friend that this is a debate not about rural broadband, but about national broadband roll-out. It is likely that by the end of 2017, 95% or 96% of British premises will be connected, but the one in 25 or one in 24 premises that will not be connected are not evenly spread across the country. Without serious investment in helping to connect the final 5%, we risk isolating not only individuals but entire communities, and splitting the super-connected and those for whom the 21st-century economy is another country.
Ms Karen Buck (Westminster North) (Lab)
I congratulate the hon. Gentleman on introducing this debate. Does he, like the right hon. Member for Cities of London and Westminster (Mark Field), recognise that central London and Westminster, with its enormous economy, is seriously compromised by slow broadband speeds? If anyone from BT is watching this debate, is it not extraordinary that a local authority has to ask the population if they want superfast broadband in order to be able to make representations for such investment? Is it not obvious that, as the hon. Gentleman says, individuals, businesses and the economy deserve superfast broadband speeds?
Matt Warman
Indeed, and I suspect that people from BT will be watching this debate closely. It is right that connecting the whole UK on an even footing offers opportunities greater than those from the roll-out of the railways or the motorway network.
Mark Spencer (Sherwood) (Con)
I recognise that my hon. Friend represents a very rural constituency, like Sherwood. Does he recognise the frustration of my constituents and his when they hear discussion about the difference between superfast broadband and broadband, when my constituents are on dial-up and can get only a very small document downloaded in an hour?
Matt Warman
Absolutely, and I am keen to emphasise throughout this debate the huge range of connections, where we have people on a gigabit for the same price, effectively, as people on dial-up. Today’s debate calls on the Government to hold a “not spot” summit, although at times Members could be forgiven for thinking that Prime Minister’s questions, Business questions, Department for Environment, Food and Rural Affairs questions and Treasury questions are all “not spot” summits.
Neil Parish (Tiverton and Honiton) (Con)
I thank my hon. Friend for holding this debate. In Devon and Somerset we find that BT is getting to those easier to reach areas and leaving the “not spots” and harder to reach areas behind. May we urge the Minister, through the debate, to put more pressure on BT to get out to those hard to reach areas, instead of taking the lowest hanging fruit, as it is doing at present?
Matt Warman
Indeed. At its heart, the debate is about getting the best possible value for money for taxpayer subsidy and making sure that the commercial roll-out goes as far as it can.
Robert Neill (Bromley and Chislehurst) (Con)
Given the importance of value for money, does my hon. Friend accept that in London, where four of the 12 constituencies with the worst roll-out are located, it is particularly important that the summit has proper data on unused fibre capacity and on upload speeds, both of which are critical to maximising the value obtained from the network?
Matt Warman
Transparency is critical. On that point, 17% of the UK still does not even have the option of a superfast broadband connection, and 8% of the country cannot receive the 10 megabits connections that Ofcom says are required for mainstream services, and 500,000 still lack even basic broadband.
Tom Tugendhat (Tonbridge and Malling) (Con)
My hon. Friend is making a brilliant speech. I would like to mention one of the many communities in my constituency that are divided by this. In Ightham, half the village can access some rural broadband from BT, but to the other half BT is promising things that it will simply never deliver, because it has realised that the economics do not add up. In the meantime, companies such as Gigaclear seem to be rolling out broadband perfectly happily to villages such as Plaxtol and Golden Green. Will he please urge the Minister to encourage more competition, and therefore greater roll-out?
Matt Warman
I would be delighted to do that, and I welcome the mention of what I think will be the first of several small villages to be mentioned in this debate—
Several hon. Members rose—
Matt Warman
Perhaps I could just finish my sentence before giving way.
There is a universal service obligation coming at 2 megabits a second, and there are moves to raise it to 5 megabits in the autumn, and that still falls below what Ofcom says is the typical need. As BT’s roll-out continues, many of the villages that I am sure will be mentioned later will find that their connections are improved. However, the communities that stand to benefit most are those that economically are the hardest to roll out to, so it is vital that whatever Government subsidy is available is pushed as far and as fast as possible.
Victoria Borwick (Kensington) (Con)
I concur with those colleagues who have mentioned the issues in central London. Obviously, all Members across the House welcome the push to ensure that more of the country has broadband and superfast broadband, but I am concerned that there are still a significant number of “not spots” in our capital city. Will my hon. Friend please ensure that his “not spots” include those in central London. I am speaking in particular about constituents in Kensington. I urge him to look again at the relationship in London with BT—
Matt Warman
In the time remaining I want to look at three crucial issues, all of which are aimed at providing maximum value for taxpayers’ money and, crucially, promoting maximum competition so that the free market drives the roll-out as far as possible. The first issue is transparency. It is a source of huge concern to all our constituents who do not have superfast broadband that it is often impossible to find out when, if ever, they might get it. Councils are often unwilling to reveal that, for reasons of commercial confidentiality, despite assurances from Ministers and BT that they can do so.
Dr Julian Lewis (New Forest East) (Con)
I am incredibly grateful to my hon. Friend, who has surely come to recognise that he will not get to the end of his speech until every single Member in the Chamber has mentioned one village in their constituency. Does he accept that even when BT does reach out, as in the case of Beaulieu in New Forest East, in the next-door village of Boldre the “not spot” remains? I have mentioned two villages, and each has been treated very differently.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the hon. Gentleman proceeds with his speech, I must inform the right hon. Member for New Forest East (Dr Lewis), and the rest of the House, that regrettably he is wrong. The hon. Gentleman will get to the end of his speech without taking interventions from every Member in the Chamber. That would simply be unfair, because 41 hon. Members have indicated to me that they wish to make a speech. I will impose an initial time limit of four minutes, but it is likely to be reduced to three minutes later in the debate, because there is another important debate to follow. If hon. Members think that the Chair will not notice if they make long interventions on the opening speaker, they are also wrong. I am watching very carefully, and if anyone thinks that they can make a long intervention now and then be called to make a speech later, I am afraid that they will have to think again.
Matt Warman
Thank you, Madam Deputy Speaker. I think I need all the help I can get with these interventions.
Hon. Members should accept that it is not possible to produce a 100% accurate map of everywhere that superfast broadband will go. There are areas where commercial roll-out, Government-subsidised roll-out and decent mobile network speeds will not make it. I call on the Government to ensure that there is much greater transparency on where those areas are and that that is a central outcome of the summit which I hope will result from this debate. It is not enough for mobile networks to provide maps relied on by businesses that imply comprehensive coverage when in fact people have to stand in the middle of the road or hang out of the window. It is not enough for my constituents to struggle to determine when BT’s roll-out will get to them. I would rather give them bad news than no news so that communities can start to work out what they can do for themselves.
Graham Stuart (Beverley and Holderness) (Con)
Twenty-five per cent. of all businesses in England are based in rural areas—a greater proportion than that of the population—and yet companies such as Agenda Security Services in my constituency have had to invest tens of thousands of pounds to get any kind of usable service while their counterparts in cities have no such disadvantage.
Matt Warman
Absolutely; the contrast is the most painful thing.
I would hope that greater transparency might come from BT, but it may come across all networks only with much tougher regulation. That transparency would also allow companies and councils to make a better case for putting state aid into areas where it is not currently permitted.
Matt Warman
If I can just get on to my second point, I am sure my hon. Friend will be able to have another go.
The second issue is the role of BT within the current roll-out. I am sure many Members will say that BT is, in effect, a monopoly and that its Openreach division should be split off, and accuse the company of creaming off Government subsidies and spending them on sports rights while failing to provide a consistent service across the country. In my constituency and across Lincolnshire, BT’s roll-out is ahead of schedule and under budget. Moreover, with take-up ahead of expectations, unexpectedly large revenues are being ploughed back into extending the network further than we had expected. None the less, rival networks will say that Openreach could raise more money and invest more widely as a separate company.
Alex Chalk (Cheltenham) (Con)
Is there not an important issue about priorities? In my constituency there are places on dial-up speeds. They do not have broadband at all, let alone superfast broadband, and the concern is that they are not being prioritised in the state money used by BT.
Matt Warman
I absolutely sympathise with those problems.
It is unfashionable for Members of Parliament to admit that there are things they do not know, but as someone who covered broadband’s roll-out as a journalist for 10 years or so, I admit that I do not know whether the roll-out would be better if BT were to be split up as a company. I am certain, though, that regulation needs to be simpler and more rigorous however the company ends up, because we must promote more competition. I am also certain that Ofcom’s assessment of what is best must be absolutely robust so that whatever decision is reached is not a matter of perpetual debate. I urge the regulator to consider all possible options now.
Stephen Timms (East Ham) (Lab)
I agree with the hon. Gentleman about the importance of greater competition. Whatever the future for BT, does he not agree that it is extraordinary that so far all the public subsidies for superfast broadband roll-out have been handed to a single company? How can that promote competition?
Matt Warman
The money that has been handed to BT occurred after a tendering process. We should not forget that.
Some argue that splitting up BT would delay this vital roll-out unnecessarily. I would say that we should not put our principles before a vital national infrastructure project, and that if any delay would harm businesses and families, Ofcom should assess what the impact of breaking up BT might be in the short term.
Patricia Gibson (North Ayrshire and Arran) (SNP)
It is all very well to talk about competition, but we are discussing a form of social exclusion. I speak as somebody who has the dubious distinction of having a constituency that is ranked 592nd out of 650 on broadband access. In North Ayrshire and Arran, 32% of data zones have no access to superfast broadband—including Arran, parts of Dalry, Largs and Cumbrae, West Kilbride and Seamill—and there is a higher than average number of “not spots”. It is all very well to talk about competition, but does the hon. Gentleman agree that we must remember that we are discussing the social exclusion of those who have no access?
Matt Warman
I agree that access to broadband is an issue of social inclusion. However, I remember as a journalist visiting the highlands and islands of Scotland to see BT’s publicly subsidised roll-out, so those areas have benefited.
Simon Hoare
In the spirit of promotion, I am grateful to my right hon. and gallant and learned Friend for giving way. Setting aside philosophical ideas about competition and splitting up BT, does he agree that most of our constituents—this is certainly true of mine in North Dorset—are just keen to get the damned thing delivered as quickly and as cost effectively as possible, to allow them to grow their businesses? Would it not be sensible to park the governance discussion until a later date and to focus today on the delivery?
Matt Warman
I humbly disagree with my hon. Friend. Although it is right to focus on the roll-out of our current plan, we are in the process of making a plan for the final 5%. That is why this is the right time to have this debate and for the Government to focus on “not spots”.
Sammy Wilson (East Antrim) (DUP)
I thank the hon. Gentleman for giving way; he is being very generous. Does he accept that, even though this is a publicly subsidised roll-out to try to counteract market failure, far too often BT approaches it from a purely commercial point of view and that it is simply used as another way to extend the profitable parts of the market?
Jesse Norman
I am grateful to my hon. Friend for the diligence and energy with which he has pursued this topic into this debate and I apologise for missing the start of it. As he may be aware, my Committee is still interested in taking evidence on the universal service obligation and in receiving submissions from constituents and from colleagues across the House. The work will begin fully next month.
May I share with my hon. Friend a thought on BT? It is not just a question of whether the relationship of BT to Openreach is supporting competition. It is also a question of whether Openreach is itself being starved of capital because it is located within BT with its new, emerging consumer and retail orientation. If it at least had its own balance sheet it might be able to borrow at very low rates and therefore support capital roll-out with it.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Even the hon. Gentleman, who makes extremely good arguments, must make them quicker and briefer than that. We will never get through this debate if people keep making long interventions. It simply is not fair.
Matt Warman
I agree with my hon. Friend that that is the counter-argument to keeping BT together.
Finally, the issue of a universal service obligation, which I mentioned briefly earlier, must be addressed in a more meaningful way. The current 2 megabits per second must be raised, but to raise that dribble to a mere trickle of 5 megabits per second is not enough when 10 megabits should be regarded as the minimum. We must accept that some parts of the country will exceed the minimum by much more than others and therefore set the minimum as high as is practically possible. I for one would like Ofcom to consider whether the current definition of superfast broadband could be that minimum, in line with the aspirations of various Governments around the world, especially when taking into consideration fixed broadband and mobile signal. That will be especially important, as a host of niche schemes come forward across the country, to connect the final 5%.
Additional mobile spectrum may be the answer, but according to Ofcom it will not be available for use until 2022, which will not provide much hope for many of our constituents. 4G will not reach 98% of the UK population until 2017, leaving millions currently with no manageable broadband connection, wireless or fixed.
The solutions to the final 5% will be many and varied, and I am sure that more companies will join those that have already used church towers, tractors and their own trenches to build a new network where it was previously thought impossible. Satellite must play a part, as will many of the exciting new projects in the Government innovation fund.
Mr Alan Mak (Havant) (Con)
I thank my hon. Friend for securing the debate. Many hon. Members have talked about the problems experienced in urban and suburban areas. Villages such as Northney in my constituency are both rural and coastal. Can he assure me that in his work and engagement with Ministers those communities will not be forgotten?
Matt Warman
As a Member of Parliament for a rural and coastal constituency, I can assure my hon. Friend that they will absolutely not be forgotten.
To conclude, if the Government are to achieve their manifesto commitment to near-universal superfast broadband by the end of the next Parliament, as well as ultrafast broadband at nearly all UK premises as soon as is practicable, a brave regulator, much greater transparency and serious Government investment must be forthcoming. Some 12% of our GDP is generated through the internet, which puts the UK significantly ahead of other countries. That status will only be maintained if we do everything we can to further narrow the digital divide, and I hope the Government will agree that the “not spot” summit for which the motion calls will be a positive and constructive part of that vital process.
Several hon. Members rose—
Matt Warman
I thank the Backbench Business Committee for granting this debate. I do not think that many debates secured by that Committee will have included contributions by Members from Scotland, Northern Ireland, Wales and England, and this debate has shown that superfast broadband is genuinely a national problem that needs a national solution.
My hon. Friend the Member for Rossendale and Darwen (Jake Berry) suggested a social tariff to emphasise how much this problem affects those who have the least money to spend on subscriptions, and my hon. Friend the Member for South Suffolk (James Cartlidge) said that small providers will play a crucial role in the future. My hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) spoke about people leaving villages because of the digital divide, and that emphasises the scope and scale of the problem that we face. This is not just an English problem and it is appropriate to end by citing the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), who said that if we want all four corners of these islands to be prosperous, we must create the conditions for economic growth. That is what this debate has been about, and the “not spot” summit that I hope the Government will organise shortly will be a crucial part of the solution to the national problem of superfast broadband roll-out. I commend this motion to the House.
Question put and agreed to.
Resolved,
That this House notes variations in the effectiveness of roll-out of fixed and mobile superfast broadband in different parts of the UK; and calls on the Government to host a not-spot summit to consider ways to tackle this issue.