Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Michael Tomlinson Excerpts

2nd reading: House of Commons
Monday 10th July 2017 Commons Chamber

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I am grateful to the Minister for confirming that 100% of properties will have access to this by 2020, but will he confirm what speeds they will have access to? At the moment, there is a range of 2 megabits per second for the universal service and 24 megabits per second and more for the superfast service. What range of speeds is he talking about when he refers to 100%?

[Matt Hancock]

We have said 10 megabits per second as a minimum, and that is Ofcom’s analysis of the needs of the average household today; this is about making sure there is a service everybody can use. As we ask people to pay their taxes, get their passports or do their rural payments service applications online, it is a perfectly reasonable request back to us in government that people should have a decent level of broadband. If people want the really tip-top level, they may have to pay more for it, and that is not unreasonable either. We are saying that there must be a decent level of high-speed broadband. At the moment, we have said 10 megabits per second as a minimum, but we have also said that that has to be reviewed in an upwards direction in due course.

--- Later in debate ---

[Mr Edward Vaizey (Wantage) (Con)]

I am grateful for the chance to speak under your chairmanship for the second time, Madam Deputy Speaker. I refer hon. Members to my entries in the Register of Members’ Financial Interests.

It is a great pleasure to take part in this debate. I thought it might be narrowly-focused, but I have judged, from the interventions on the Minister, that this is clearly going to be yet another talk-fest about the quality of broadband in individual Members’ constituencies. That means I will have to stay for the whole debate to ensure that hon. Members are not too rude about me. I know that they are unswerving in their support of the Minister, but they always liked to have a go at me when I did his job.

It was quite good to hear the Opposition spokesman, the hon. Member for Denton and Reddish (Andrew Gwynne), as he spent very little time actually talking about broadband, which shows how well the job has been done. He finessed his speech to talk widely about the important issue of business rates, but only mentioned broadband briefly. I understand why and respect his reasons because, under the stewardship of the Minister, we have of course seen the most successful rural broadband programme ever devised anywhere in the world. There was meant to be a cheer there. [Hon. Members: “Hear, hear!”] I will give hon. Members their cue points as I go through my speech.

This incredibly successful programme has delivered superfast broadband to 4.5 million premises for a few hundred million pounds. Most of that money, if not all of it, will come back to the Government because the way in which the contracts were constructed means that the money starts to be paid back once take-up passes a certain threshold. I echo the words of my hon. Friend the Member for Faversham and Mid Kent (Helen Whately). She talked about the 20% of premises in her constituency that have superfast broadband. It is very important that we see our cup as half full. The Opposition Chief Whip spends his time thinking his cup is half full at the moment—[Interruption.] Oh, he is the Deputy Chief Whip; well, for me, he is really the Chief Whip. I digress. We hear from people who do not have broadband and are waiting for superfast broadband, and it is absolutely understandable that they are irritated. Those voices obviously grow louder as superfast broadband spreads, and as more people have access to this fantastic technology.

I got involved in the debate about business rates for broadband many years ago. In fact, when I was in opposition, I used to tease the then telecoms Minister, the right hon. Member for East Ham (Stephen Timms). I came up with an Opposition policy to reduce or eliminate business rates on telecoms infrastructure because every provider I went to told me that business rates were a big impediment to investment. I challenged the then Minister, asking him what on earth he was going to do about that, because the Valuation Office Agency was in charge of the business rates and it was the Minister’s job to take the agency by the scruff of the neck and sort the situation out. Of course, when I got into office, I realised that there was absolutely nothing I could do about it. The Valuation Office Agency is independent. It decides the level of business rates and it certainly sees off any Minister who tries to alter its independence or affect its judgment—quite right too.

The other row we had was about the fact that BT apparently gets a better deal on its business rates compared with some of the smaller providers. My understanding is that that is because of a long-standing court case brought by BT. BT also has much more infrastructure in the ground, so it is able to cut a wholesale deal with the Valuation Office Agency, but it is much more difficult for small providers that are getting under way. It is one of those unfortunate things. The point that I am trying to make, in my own rambling fashion, is that the impact of business rates on investment in broadband infrastructure is real. It is one of the factors that people take into account when they are trying to build infrastructure. The Bill is a very welcome measure to address that problem.

Madam Deputy Speaker, I do not know if you have actually read the Bill, but it is the most boring and technical Bill that I have ever read. There are only six clauses. I saw six officials sitting in the Box and wondered whether each had been given a clause, because the chance of making it to the end of drafting even one clause is almost impossible. I do not know whether any of my hon. Friends suffer from insomnia under the stress of doing this job. If so, I strongly recommend that they take the Bill home; they will be sound asleep by halfway through clause 1. However, I understand the thrust of the Bill, which aims to encourage new investment in broadband infrastructure by suspending the levying of business rates. That is the best way to do it, and the Government have calculated that something like £60 million of savings could be made.

I echo what the Minister said at the Dispatch Box. I hope that all new infrastructure providers—people have mentioned companies such as Gigaclear and CityFibre—will take advantage of this. The Bill is aimed squarely at them to remove a financial barrier to further investment. The Government are trying to move to the next phase of broadband roll-out. The key task of the previous Parliament was to get workable broadband with speeds of about 24 megabits to as many people as possible. That has pretty much been completed. I understand that, under the universal service obligation, people in the last 5% of premises might get lower, but still workable, speeds. We are starting to build the future-proofed infrastructure to deliver fast and reliable broadband at speeds of above 30 megabits. Those are the kinds of broadband speeds that we will be able to dial up as more people make use of the technology. We all know—this does not need to be rehearsed—how much technology and data are now used, and the kind of bandwidth needed for the average home with two teenagers and parents watching 4K content, let alone for somewhere with business needs.

Planning is a much bigger impediment than business rates. A lot of people forget that. They think it is easy to build this infrastructure, but it is not at all. One comes across far too many cases of councils not being co-ordinated. There are cases of broadband providers having to go to five different council departments to get permission for way leaves, to dig up the highway and all the other permissions they need to build this infrastructure. We really need to get to grips with this in some shape or fashion.

In the spirit of co-operation that the Prime Minister announced this morning, let me suggest that the Labour Front Benchers talk to the Mayor of London. There must be an opportunity for him to set up a broadband taskforce to get all the London boroughs to co-ordinate their planning. I have heard of councils—it does not really matter what political colour they are—not granting way leaves to providers who wanted to provide broadband for social housing in London. I have heard of councils that did not want the green boxes on their pavements because they did not like the design. I have come across councils that refused to let broadband providers go ahead with future work, because they did not clear up after their previous work. Now, I understand councils’ irritation, but they are still holding things back. It is an incredibly dull point, but there must be an opportunity to co-ordinate the planning functions of the London boroughs, as well as of councils across the country.

[Michael Tomlinson]

May I disagree vigorously with my right hon. Friend by saying that it is not a boring point? It is actually very important that these companies clear up after themselves, because it causes reputational damage when they try to deliver superfast broadband and leave a mess behind. That does cause concern to residents, and it has caused concern in my constituency. He may say that it is a bit of a dull point, but it is important for companies to get things right so that they can be encouraged to do more in future.

[Mr Vaizey]

I thank my hon. Friend for that point. In fact, although I welcome Virgin Media’s investment in cable in Didcot, the company has irritated quite a few of my constituents on the Ladygrove estate, so he is right that companies should clear up after themselves. I suppose I did not make myself entirely clear; my point was that, while councils should hold companies to account, their retribution should not be, “You can’t do any more work,” because they would be punishing constituents for companies’ past transgression.

Clearly, the Government want to encourage full fibre—fibre to the premises. It is true that we are falling behind some other countries. Spain, for example, is well advanced, but that is an historical advantage, because the infrastructure was put in 30 years ago, with extraordinary foresight. One also has to remember the topography of the built environment, because the more apartment blocks—as opposed to spread-out domestic homes—there are, the easier it is to deliver broadband quickly.

One should also not necessarily be seduced by statistics. Members might see, for example, that France is ahead of us in terms of fibre to the premises, but that fibre is in the same place as fibre to the cabinet, so very few people take it up, and a lot of people would say that it is wasted investment. The incremental approach taken in the UK so far—of getting universal coverage for superfast broadband and then moving on to fibre to the premises—is the right approach, because it keeps pace with customer demand. That is what has to happen.

The good news about fibre to the premises is that the cost of investment is coming down rapidly. TalkTalk has conducted trials in York, and what has happened is telling. The company has got the cost of connecting each home down to a few hundred pounds—£200, £300 or £400, I think. Also, people now talk about the impact on the community—about whether their house is in the green zone, which is where the fibre to the premises is, and people want to be there. Interestingly, customers do not actually care whether they can access 1 gigabit; what they get by having fibre to the premises is an absolutely 100% reliable service, whereas even those of us who have signed up to superfast broadband know that the service can drop out.

This is a very important and welcome Bill. I would simply ask the Minister when he sums up—I do not know whether it will be the Secretary of State or my right hon. Friend the Minister for Digital—to talk a little about whether the Government have considered how this relief impacts on mobile infrastructure. The roll-out of 4G in this country has been very successful, and we should not forget that it has all been done through private investment. When we rail against the mobile operators, we have to remember that they pay us—the taxpayers—by paying in to the Treasury coffers for spectrum, and they then build out their networks, effectively with their own capital. However, they come across the most bizarre planning issues all the time, and although the Minister talked about the electronic communications code, which will help to make mobile planning easier, we could perhaps hear about whether the Bill will apply to the fibre that goes from the masts back to the cabinets, or whether it could be amended so that mobile masts were free from whatever business rates these companies pay.

I would also like to hear how the Bill will encourage the roll-out of 5G, which will potentially transform everything. What we need are small cells dotted throughout the urban environment. The company Arqiva is already trialling a 5G network with its own spectrum. Again, we potentially need a rethink on planning to make it much easier for mobile companies to roll out these small cells. Given the dense coverage companies need, requiring them to get planning permission for these small cells will be a real hindrance to the fast roll-out of 5G.

As I made my remarks, I could tell that I had the full attention of the House. I noticed one or two yawns and a few slightly irritated looks as people thought, “When is this guy going to finish so that I can make my speech about our rotten broadband and get it in my brilliant local paper?” Well, the time is now, because I have finished.

--- Later in debate ---

[Kit Malthouse]

I have to confess that I was so taken with the small sample that I tried—I was driving—that I bought a bottle. Perhaps I will bring one in. I did wonder whether the House of Commons authorities might start serving Test Valley Gin in the bars. It is an excellent drink, infused with a secret recipe of local herbs and spices, and I can recommend it.

[Michael Tomlinson]

I had the great pleasure of being in my hon. Friend’s constituency yesterday, although I beg his forgiveness for not seeking his permission. Hon. Members will be pleased to know that I went purely for a cricket match, and I did not think that I was obligated to seek his permission to play cricket in his wonderful constituency. He is making an important point. Broadband is increasingly important in all our constituencies, and I believe it is as important as road and rail. It is a part of our infrastructure that our constituents just cannot do without.

[Kit Malthouse]

My hon. Friend is absolutely right. He is very welcome to visit my constituency at any time. In fact, I am surprised that he has only been once recently, and he should come more often. My door is always open.

Ensuring that villages are connected to the world is becoming vital to maintaining rural life. Rural residents find it increasingly ridiculous that they can see broadcast-quality footage of Tim Peake in the international space station but they cannot go online and post complimentary comments on my Facebook page, as my constituents increasingly seem to do.

--- Later in debate ---

[Helen Whately]

In some respects, the hon. Gentleman and I may agree, although not on the specifics of his point. As other hon. Members have said, the business rates system does need a further look. For instance, I am unhappy with the way business rates tend to penalise high street shops in some of my smaller towns. The largest employer in my constituency is a brewer, and pubs have struggled with some of the increases in business rates. However, I recognise the efforts that the Chancellor made following lobbying by me and other Members of Parliament to help pubs with the changes to business rates. There is no question but that there is further work to be done on business rates, and that has been acknowledged by the Government.

[Michael Tomlinson]

May I take my hon. Friend back to corporation tax? She is absolutely right that the reduction in the rate has seen an increase in tax take. Surely the important thing is to look not at the tax rate, but at the tax take—how much tax is actually raised. The final point she made about jobs is crucial. We see record levels of employment across all our constituencies, which is to be welcomed. That has happened because businesses want to expand and take on more people.

[Helen Whately]

I thank my hon. Friend for that intervention. I will return to the content of the Bill in a moment, Madam Deputy Speaker, but I am spending a little time on corporation tax because the hon. Member for Denton and Reddish spent some time talking about it. It is important that Government Members make it clear that we are absolutely committed to raising revenue for public services. The last thing we want to see is tax changes that gain the right headlines but have the wrong effect on the bottom line from the Government’s point of view. We are absolutely committed to making sure that we can raise revenue for public services, about which we care very much, but we recognise that, to do so, we must have a tax environment that is supportive to businesses, because they are what provides the jobs and the economic growth.

On economic growth and people working harder to keep up their standard of living, as an economy, we need to be more productive and technology is the crucial enabler in that. That is exactly what the Bill will support. For instance, 5G as a technology is and will be a great enabler of the internet of things. Every second around the world, 127 devices are newly connected to the internet. That rate will surely increase, so the demand for connectivity and the ability to carry large volumes of data will only go up.

It is vital that we are at the forefront of that. In fact, 5G is forecast to boost economic value by $4 trillion to $11 trillion globally by 2020. That is a huge increase in economic value, so it is vital that we as a country take our share of that economic growth. In practice, it will mean developments that allow us to have smart household appliances, driverless cars and, one day, driverless lorries, which for my constituents, who are very unhappy about lorries being parked up in laybys a lot, will be an interesting prospect.

--- Later in debate ---

[Helen Whately]

I could see the frown on your face, Madam Deputy Speaker. It might seem like a stretch to go from talking about telecommunications to lorry fly-parking, but as 5G is an enabler of the internet of things and, potentially, of driverless cars and driverless lorries, it might mean that lorry drivers no longer have to take long breaks to sleep. The reason lorries are parked in the laybys of our roads is that the drivers are sleeping because they have to have a compulsory rest before they can keep driving, but we could have lorries without a driver, so the subjects genuinely connect.

To return to what I was planning to talk about, another important potential application of 5G is in healthcare, with wearable devices. For instance, people’s heart rate and blood pressure could be tracked. That is very much part of the future of healthcare and preventive healthcare to help us all to look after ourselves. As somebody who is very committed to the NHS and to making sure we have a sustainable NHS and a healthier population, I am keen that we enable such developments in healthcare.

Those are just a handful of examples of what we hope 5G will enable. We hope to be at the forefront of this technology by investing in it.

[Michael Tomlinson]

My hon. Friend is being very generous with her time, but before she moves away from 5G, I invite her to reflect on this point. It is important not to leave behind those communities that are yet to clock on to 3G and 4G. I am sure that, in her constituency, as in mine, there are areas where people simply cannot access 3G or 4G. Although 5G is to be welcomed, will she join me in calling on the Government to ensure that those areas are not left behind?

[Helen Whately]

I completely agree. As in his constituency, there are parts of my constituency that do not have 4G, 3G or even enough mobile signal to make a phone call. I am very keen for the Government to intervene to ensure that there is comprehensive mobile phone reception across rural areas. I also hope that we can have a catch-up for those areas, so that they can canter quickly through 3G and 4G and then go straight to 5G.

--- Later in debate ---

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

It is a pleasure to follow my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton), who addressed the substance of this important Bill with her customary attention to detail and her personal reflections on the progress that the internet has made. The change it has made to all our lives has been enormously valuable.

I will address the core of the Bill first, before explaining why it is so important. It is excellent that the Bill will provide for 100% business rates relief for full fibre infrastructure for a five-year period from 1 April 2017, and it is important that that is backdated so that it truly supports telecommunications companies that invest in their fibre network. It is also important that the Government will cover the full costs of that relief. As a former councillor, I know the impact that Government reliefs can have on local government, and it is important to note that the Government have said here that, because of the measure’s importance, they will meet the full cost of the relief.

I am grateful to my hon. Friends the Members for Aldridge-Brownhills and for Ochil and South Perthshire (Luke Graham) for mentioning the impact on Scotland. The Bill, of course, has territorial extent to England and Wales, but the Barnett formula applies, so it is important that we recognise how it affects the whole United Kingdom.

As we have heard, constituencies vary across the UK, from tightly packed urban settings to sparser rural settings. Superfast broadband, based on part-fibre, part-copper technology as today, is now available to 93% of premises, which is good progress. My hon. Friend the Member for Aldridge-Brownhills spoke about the progress of the internet, and I recall having a dial-up modem that would beep away before connecting at perhaps 28 kilobits per second—FaceTime or Skype would have been inconceivable in those days. We have made huge progress, and 93% of premises being able to access the part-copper, part-fibre service is good news, but the proposed relief provides—the Minister will correct me if I am wrong—£60 million-worth of support to telecoms companies that invest in their fibre network by installing new fibre lines.

Virgin Media is now part of Liberty Global, which, to deviate slightly, shows the importance of having a competitive corporation tax regime. As has already been noted, a competitive corporation tax regime means a company such as Liberty has invested in Britain and bought Virgin Media, and is now taking it forward. I would have thought that the Bill will boost Virgin Media’s £3 billion “project lightning” network expansion, as well as plans by Openreach, a subsidiary of BT, to increase its investment in fibre optic. The Bill will also help smaller alternative players, which my hon. Friend the Member for North West Hampshire (Kit Malthouse) said were priced out of the market in the past due to the impact of business rates and other competitive and regulatory pressures.

I welcome the Government’s aim, through this and other measures, to provide superfast broadband speeds of 24 megabits per second, or more, for at least 95% of the United Kingdom, which is progress beyond what we have achieved to date, but we should go further. That is why I am pleased that the Digital Economy Act 2017 provides for every household to have a legal right to request a fast broadband connection.

[Michael Tomlinson]

I do not apologise for reinforcing the important point, in case Opposition Members say it has already been made, that 95% coverage still means that 5% of our constituents are left out, so will my hon. Friend join me in pressing the Government to ensure that the service is truly universal? Although we welcome the measures set out in the Bill, we are still speaking up for our constituents, the remaining 5%, who are waiting.

[Mr Jayawardena]

As ever, my hon. Friend makes an important and cogent point. He is right to champion the interests of all the United Kingdom, which is why the universal service obligation is so important. The obligation, I am sure the Minister will agree, is only the first step towards ensuring that Britain is the most competitive country and is the place where businesses based elsewhere in the world want to do business. As my hon. Friend the Member for Aldridge-Brownhills also noted, that is even more important in a post-Brexit world. We must ensure that we are absolutely match fit and ready to go in the next century, which is why it is important that every household has a legal right to request a fast broadband connection.

As has become customary in our Wednesday exchanges, I will reference points raised by my constituents. This is not a maiden speech, but Hazeley Lea, a lovely part of my constituency, gets less than half a megabit per second, which is totally unacceptable. Worse, residents say that they have too much downtime because the current connection—part-copper, part-fibre—is unreliable. It is not just homes, individuals and families but diversified rural businesses that are affected. One constituent says:

“Just yesterday, I saw a third visit this week by Openreach to my immediate neighbour. I took the opportunity to talk to the engineer on site who confirmed there was a major problem perhaps with old underground cabling to the area simply giving up. He also confirmed that none of the line managers are likely to take this further because of the costs to BT to supply new cabling.”

That demonstrates that what the Government are trying to do is right. Not only are they addressing the old underground cabling that is simply giving up—the cabling was introduced many, many years ago for technologies that are now old-fashioned, as my hon. Friend the Member for Faversham and Mid Kent (Helen Whately) said—but they are tackling the costs that apply to businesses through business rates and other regulatory matters. The costs, particularly business rates, have been prohibitive in helping businesses to invest.

I was on a British-American Parliamentary Group visit to Chattanooga, Tennessee, where the weather was almost as good as it has been here recently. Importantly, I found out that a £70 million grant had got local people—the Chattanooga area has a population of just over 500,000—not 24 megabits per second, which is the UK Government’s measure of success in this phase of superfast broadband, but 1 gigabit per second through providing fibre to the premises, not just fibre to the cabinet. That is what the Government are trying to do, and it is the way forward.

Coming back across the pond to Stratfield Saye, the seat of the Duke of Wellington, the exchange there is a problem because, at present, the broadband connection given to my constituents, and undoubtedly to the Duke of Wellington, comes from Mortimer across the county boundary in Berkshire, instead of from Bramley in my constituency and the county of Hampshire. Naturally, Bramley is much closer to Stratfield Saye than Mortimer will ever be. Indeed, the length of cabling required from the exchange to the home would be cut in half if the connection were provided from Bramley. That shows the lack of flexibility in the system. We need to ensure that there is the right technology in the right places to serve people in the 21st century, not the convenience of telecommunications operators from the 20th century.

Some people in Bramley are nearer Chineham in the constituency of my right hon. Friend the Member for Basingstoke (Mrs Miller), but none the less they are connected by cables from Bramley. Those cables are actually steel, not copper, because apparently when the cables were installed by BT, then state-owned—I do not know whether the Labour party plans to renationalise BT, too—[Interruption.] The hon. Member for Oldham West and Royton (Jim McMahon) says it is a possibility, so perhaps he would like to clarify the matter at the Dispatch Box. The point I was making was that BT simply said, “It is all right, we don’t have to face any competition. We’ll just shove some steel cabling in there and it doesn’t matter what happens to local people.” Of course when we were talking about telephone and analogue technology, that was fine, but we are in this new digital age now and we need to make sure people have the right technology to their doorstep. That is why we must tackle this head-on.

I do not want to be totally critical of BT, as it has done a lot of good work in enabling a lot of cabinets and coming up with flexibility in the way those things are delivered. For example, in the parish of Ellisfield in my constituency BT came up with a match funding scheme that said, “If the community can raise some of the money, we will put in the other half.” That is a very innovative scheme for a community so rural that it made this commercially unviable to deliver. But therein lies the problem: no one should be penalised for accessing what is now a utility, as my hon. Friend the Member for Cannock Chase (Amanda Milling) rightly said—people should be able to expect this. Charging people £558 per dwelling not only is on the cusp of what BT might ordinarily provide as a commercial arrangement, but it was penalising residents in rural areas for living where they do.

[Michael Tomlinson]

May I take my hon. Friend from Hampshire to Dorset and endorse what he is saying? He is advocating greater flexibility within BT and saying that although some good work is being done, more could and should be done. Does he agree that we need flexibility across the piece, not just in Hampshire and his beautiful constituency, so that where difficult rural issues arise, sensible solutions are found?

[Mr Jayawardena]

My hon. Friend makes an important further contribution to this debate and is right in what he says. Let me take him back to the further remarks from my neighbour, my hon. Friend the Member for North West Hampshire, who pointed out that Brexit provides an opportunity, because EU state aid legislation got in the way of allowing local communities to come up with solutions. When I was a local councillor, we introduced CITI—the communications improvement and technology infrastructure fund—which was a new way of providing match funding from the borough council, but it was then ruled out of order because it was deemed “state aid”. Not only had we, through careful management, kept council tax down and not increased it, by using the excellent initiatives from this Government on match funding and helping local councils keep council tax down, but the money that we had saved and that we wanted to put to good use for the residents of Basingstoke and Deane in north Hampshire could not be used because of state aid rules. So we must tackle these things and we must deliver those solutions for local people.

[Mr Jayawardena]

I thank my hon. Friend for that point. He is right: this is all part of the competitive nature that we need to try to ensure is supported. We need to provide local solutions to local problems. Mr Deputy Speaker, I am sure you are aware that Hampshire County Council has been working to go beyond 96% connectivity—[Interruption.] If you were not aware before, you are now. That could be met if we allowed local firms to meet that 4% shortfall. If we allowed local firms to bid for further funding from the state, unhindered by EU state aid rules—indeed, instead, further supported by these business rates initiatives—we would close that 4% gap without a shadow of a doubt.

Let me turn from BT, which has had a great benefit from the current business rate arrangements, to Virgin Media, which should benefit from this. I outlined that earlier, but it is important to talk a little more about it to outline the importance of the issue to a British company based in my constituency; it has its corporate headquarters in Hook. It has run a competition, through its own commercial judgment, to supercharge local communities. Although the company has not yet supercharged Hook, which is where it is based—I hope it is listening and will do so shortly—it has agreed to supercharge Hartley Wintney and Phoenix Green, just down the road. That means that those places will have ultrafast fibre to the premises very shortly, which is good news because residents there will get a head start on what the Government aspire for the whole of the country to receive. Those residents will receive fibre to the premises, which means they will be eligible to get the 1 gigabit per second telecommunications connectivity that is critical for the future.

Businesses will benefit as well—this is not confined to households. In Yateley in my constituency, Samsung has its European quality control centre. If we want those technical businesses to be based in constituencies such as mine, we need to ensure they have the connectivity to match. Samsung being the technical giant that it is, it needs that more than perhaps anyone else. It is therefore brilliant news to hear that these business rates initiatives will be introduced.

This is not just about the giants; it is also about the smaller businesses. Fleet, the biggest town in my constituency, has a business called CV-Library. It was set up in 2000, in the dotcom boom era. Although that was a very different internet era, that remains an internet business and it is very successful. It was set up by a young carpet fitter who was looking for work and it is now the UK’s third biggest jobs board. Of course it has thrived on the great number of new jobs created under the economic management of this Government, and it is one of the top 500 most visited websites in the UK. So we are talking about a well reputed website.

That small business has come a long way, with Resume-Library allowing it to operate in the United States, and it is now thriving as an international business. Again, as with Samsung, if we want such businesses to be based outside the main towns and cities—outside London and across the country, ensuring that we create an economy of the nations and regions, not just of London —we need connectivity that serves businesses such as CV-Library and allows them to thrive and to connect with the world, as CV-Library has done with Resume-Library and will, I am sure, do in future. Incidentally, it was the first jobs website to allow people to apply for jobs on a mobile phone. I shall come back to that important point in a moment.

One resident in Bramley told me that he found it

“incredible that we are surrounded by much better services and yet it appears that we are unable to access these.”

People such as that resident from Bramley are used to going on their mobile phone and connecting to 4G, yet in their house they cannot connect to a decent fixed-broadband service. He also said:

“I have been told by BT that it is not possible to switch exchanges”

from one to another

“as this is ‘too difficult’”.

In the mobile age, when people can go about their daily business while they walk to work, it is not acceptable for something to be simply too difficult for a monopoly provider. We must do better, and the Government are.

It is important that the 100% business rates relief is focused on encouraging the full-fibre initiative and getting that to the premises. Indeed, the digital infrastructure investment fund has also been designed as an incentive. Traditionally, it has been difficult to finance digital infrastructure investment in Britain because the industry has been relatively young. The lack of certainty about future demand has made investment difficult to secure. I hope that the digital infrastructure investment fund, along with business rates initiatives such as the one in the Bill, will ignite interest, so that private finance will invest in this important sector. Digital infrastructure is a critical part of our infrastructure, like roads and rail, so I hope that the private interest we really need will be drawn in. As my hon. Friend the Member for Witney (Robert Courts) mentioned, the drawing in of private finance will make the market more competitive and allow local solutions to rise up and meet local people’s needs.

Full-fibre networks are so much more resilient than the traditional copper-wire networks. I referred to my constituent in Hazeley Lea who told me that the copper cabling was failing. That is a problem not only for Hazeley Lea and North East Hampshire, but for the whole country, because the internet is delivered to most homes in Britain by underground copper cables. My hon. Friend the Member for Aldridge-Brownhills referred to the green cabinets that people see springing up, and from which bushes are cut away so that they can be enabled for fibre, but the final part of the service is still delivered by copper. The wires can be degraded by distance, as has been the case for my constituents in Stratfield Saye and Hazeley Lea; indeed, the constituents in Bramley who live near Chineham have the problem of the long distance from the exchange in Bramley.

Full-fibre networks seek to run the fibre connections straight to the doors of homes or businesses. I make one plea to the Government, because there is still no capability in planning legislation and the national planning policy framework for local councils to mandate fibre to the premises, which would solve the problem referred to by my hon. Friend the Member for Cannock Chase. They can request it, but the only requirement they can make is that there be a telephone connection to a home. I have been told that, if it is done at scale, particularly on larger developments, the cost difference is marginal, if existent at all. The Government could easily remove that difficulty for councils to mandate fibre, and it would be transformational in the new homes that the Government aspire to build throughout the whole United Kingdom.

[Michael Tomlinson]

My hon. Friend mentioned the fact that copper wires can be degraded by age and distance, but volume of traffic is also a problem. Does he agree that when, on a Saturday night, for example, a popular programme is on or more people want to be streaming or gaming, the whole system slows down and grinds to a halt? That is also part of the degradation process.

[Mr Jayawardena]

My hon. Friend is absolutely right that copper’s capacity is insufficient for today’s challenges. We must make sure that we deal with not only today’s challenges but tomorrow’s, so we must ensure that there is more fibre than we even need today. We do not want to end up, perhaps in five or 10 years—not a million miles away—with the fibre we install today not being good enough for the challenges of tomorrow.

In turning to the challenges of tomorrow, it is important to consider mobile communication, which is enabled by the fibre broadband that links the mobile masts. Fibre provides the connectivity, via the masts, to users who perhaps want to do their banking on their phones, as several Members have said. Deploying mobile infrastructure remains challenging at times, particularly in remote locations or among difficult topography. It is important for us to consider the viability of such initiatives as we move from 4G to 5G, and as we do so, perhaps we could find a remedy for those communities that have not even moved to 3G or 4G. We must ensure that those initiatives are viable, so that no one is left behind. Mobile telecommunications can be an excellent way of providing mobile broadband—fast broadband—to rural communities, instead of running fibre to those rural homes. It could be that part of the solution, part of dealing with the final 4%, is to ensure that fibre is run to mobile masts, which are then accessible to those rural communities.

Reducing operating costs is critical to ensure that the potential economic viability of these sites is considered properly. I am sure that the Government will consider that in the deliberation that they will doubtless have in the time ahead. Targeted business rates relief to enable fibre cabling to be rolled out to those hard-to-reach areas would be particularly helpful in notspots that have been badly served by telecoms to date and could be much better served by telecoms in future.

It is important to prioritise sites such as railways and motorways, as mentioned by my hon. Friends the Members for Faversham and Mid Kent (Helen Whately) and for Chelmsford (Vicky Ford). They demonstrated that to have connected commuters, which was the term used by my hon. Friend the Member for Chelmsford, we need fibre to be run alongside railways.

--- Later in debate ---

[Mr Deputy Speaker]

No, it is not that. I am trying to be helpful. I am bothered about time. I would like us to discuss broadband infrastructure to houses, rather than 3G, 4G and 5G, which is mobile phones. If we were having a debate on mobile telecommunications, it would be brilliant, but we are not. I have allowed a bit of freedom, but I do not want the debate to concentrate on that issue. The hon. Member for North East Hampshire should know better than to lead you on into discussing something I have told him off for.

[Michael Tomlinson]

On a point of order, Mr Deputy Speaker. Forgive me, but this is my very first point of order, and I am sure you will indulge me as a relatively new Member of Parliament. However, in clause 1, there is reference to mobile phone telecommunication as well as—

[Mr Deputy Speaker]

Don’t worry—I can help you. I am very bothered about the length of time and the number of speakers I am trying to get in, so if we can concentrate on the bolts of what it is about, it will be much easier to get everybody in to speak. The last thing I want to do is not get you in to speak, seeing as you have sat here all day. So I think it is better if I can help the House move along in the area I think we need to discuss. To go back and talk about 3G over 4G is not relevant to today’s debate.

[Michael Tomlinson]

rose—

[Mr Deputy Speaker]

I will make the rulings. You can listen to my rulings, and we can have a discussion later if we need to, because I want to hear you speak in a little while.

--- Later in debate ---

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I am very grateful to you, Mr Deputy Speaker, for your guidance and for your earlier ruling, which has given me the opportunity to speak for 10 minutes, rather than the nine, eight or seven minutes I might otherwise have had.

[Mr Deputy Speaker]

Order. If it is helpful I can make the limit eight minutes to give someone else more time.

[Michael Tomlinson]

My meaning is the exact opposite. I am very grateful to you, Mr Deputy Speaker.

It is a great pleasure to follow my hon. Friend the Member for Witney (Robert Courts), for whom I feel great sympathy. I am sure that many of my hon. Friends as well as Opposition Members have been in a similar situation when trying to communicate with members of their family on birthdays, important anniversaries and the like. He and I, as well as my hon. Friend the Member for Hexham (Guy Opperman)—he has arrived in the Chamber at the appropriate moment to hear me say this—were members of the same chambers and therefore in exactly the same situation when trying to download papers attached to an email to make sure that they arrived in court on time.

I warmly welcome the Bill. As we have heard so many hon. Members say, the importance of broadband cannot be overstated. It is as important as road and rail, and is a vital part of our infrastructure. Although I am pleased with the progress the Government are making, I will dwell on one or two brief points about where improvements still need to be made.

I start with words of congratulation, because it is right to acknowledge where the Government are moving in the right direction, and to be able to stand up and say that 93% coverage for superfast broadband is indeed an achievement. I applaud the ambition to achieve 95% coverage by the end of 2017, and I was pleased to hear the Minister say that the Government are on target for that. However, it is frustrating for the 5% who are still left without it. That point has been repeated this evening, but I make no apologies for repeating it again. Many of us who have spoken represent constituents who are in exactly that position, and I know that a number of my constituents are not consoled by the fact that 95% of the rest of the population have access to superfast broadband while they do not.

I need not dwell on specific internet speeds; suffice it to say that the 1,000 megabits per second lauded in relation to the Bill is to be warmly welcomed, but that figure would be staggering to my many constituents who are struggling with 0.5 to 1 megabits per second and really cannot imagine a speed as vast as 1,000 megabits per second. However, I will, if I may, dwell on two or three brief constituency examples that constituents have raised with me. I must declare an interest in that, in the village of Lytchett Matravers, I am affected by many of the same issues.

The first example involves a constituent who wrote to me expressing great concern about broadband speeds of between 0.5 and 1 megabits per second. As has been said, we use the internet for more and more things these days, including education. My hon. Friend the Member for Faversham and Mid Kent (Helen Whately) mentioned researching points for educational purposes, but it goes further than that because many of our children are asked to do homework based on the internet and purely on the internet; in fact, they have to access the internet to download the homework to do that evening. One constituent wrote to me saying that they have to ration the amount of homework that their family can do, with the children taking it in turns to get on to the computer and complete their homework, because speeds of 0.5 to 1 megabits per second simply do not allow two children to do their homework at one and the same time. The additional point was made that updating software—with Microsoft, people do not get a wonderful DVD or disc to put into the computer these days; they actually have to download it from the internet—simply cannot be done if the speeds are not fast enough.

The second example I was recently given by a constituent involves a rural business. Again, the constituent lives about 100 metres from a different network that is much faster and would allow the business to function properly. As it is, he is struggling on less than 1 megabit per second and has to go to his place of work to download his work. The speeds where he lives simply will not allow it. My hon. Friend the Member for North East Hampshire (Mr Jayawardena) mentioned an example in his constituency in which BT was flexible, but in this case BT has not been flexible enough and will not allow my constituent to change from one exchange to another, despite the distance of merely 50 metres or so.

I am conscious of the time, Mr Deputy Speaker, but I want to make one or two final points about postcodes, if I may. I know that the Minister is soon to jump up to the Dispatch Box, but I want him to take this point on board. Quite often the data are arranged by postcode and the percentages are calculated on that basis. However, some roads have the same postcode but different exchanges. I can think of one example in Dorset where it is claimed people have the potential to access superfast broadband on the basis of the postcode alone, but that is not the case because the one postcode has two separate exchanges.

I warmly welcome the measures in the Bill. It will not solve all the problems overnight. When my constituents look at the full-fibre speeds, with fibre to the door rather than just to the cabinet, of course they applaud them, but they want them and they want them soon. Thank you, Mr Deputy Speaker, for indulging me and for giving me a full 10 minutes, and I sit down in advance of reaching those 10 minutes.