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.

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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.

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[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 .