Three and Vodafone: Potential Merger

Debate between Navendu Mishra and Baroness Laing of Elderslie

Thursday 14th December 2023 Commons Chamber

[Navendu Mishra (Stockport) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests, in particular my membership of Unite the union. I am grateful to Unite for providing a detailed briefing on the merger. It has been campaigning on the issue for a long time, because, as both Members—my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) and the hon. Member for West Dorset (Chris Loder)—who have contributed so far mentioned, almost 1,600 jobs could be lost. I thank my right hon. Friend the Member for Birmingham, Hodge Hill for securing the debate. He has done a lot of work in the background, including as Chair of the Business and Trade Committee.

There are two key points I want to cover. First, the merger is bad news for customers. There are 650 constituencies represented in this House and I believe this merger impacts every single one. If the merger goes through it will mean higher costs for consumers. Currently more than 2.2 million households in the UK are struggling with the cost of mobile services, so it is not as if they are in a good position to start with. The merger will reduce competition and increase monopoly and pricing power for these operators.

I want to say a little about Greater Manchester, because that is the part of the world that I represent in the House. A Liverpool University study found in 2020 that as many as 1.2 million residents of Greater Manchester alone faced some form of digital exclusion, while the Office for National Statistics has found that 40% of Greater Manchester benefit claimants have very low digital engagement and 23% of residents are not using digital services because of lack of money. This merger will increase prices and dramatically worsen the situation.

The hon. Member for West Dorset talked about his patch. He represents a rural part of England, while my constituency is more urban, but there will be people in each and every constituency who are digitally excluded, in many cases because of a lack of financial resources. My right hon. Friend the Member for Birmingham, Hodge Hill mentioned the research conducted by the former chief competition economist at the European Commission. According to that research, we can expect an average increase of about £300 in mobile phone bills. Reference has been made to Vodafone’s customer service. I am not a Three customer, so I do not know what its customer service is like, but we are looking at nearly 1,600 job losses. Given the cost of living crisis, not only is the merger terrible news for UK customers, but the livelihoods of the people who work in these businesses is on the line.

I will not repeat many of the points that have already been made about national security, but we should be clear about the fact that Three is owned by the Hong Kong-based CK group. If the merger goes through, the new entity will have access to the data of 27 million UK nationals, as well as highly classified data under Vodafone’s existing contracts with, for instance, the national health service, the Ministry of Defence, the Ministry of Justice, and several police forces. I have been campaigning on this issue for a long time, and was lucky enough to secure a Westminster Hall debate on it earlier in the year. In July, following my campaign to stop the merger, I wrote to the chief constable of my local force, Greater Manchester police, about its contract with Vodafone. I received a speedy response, and I am grateful to the chief constable, Mr Watson, and to the force.

The chief constable told me that under section 17 of the Local Government Act 1988, forces are not permitted to take non-commercial considerations into account when awarding contracts. The exclusions set out in subsection (5) are wide-ranging, and without intervention from the Secretary of State on specific issues, public bodies must adhere to the rules set out in the Act. I am quite concerned about the fact that my local police force has a contract with Vodafone, as have several other forces in England. The issue of the data transmitted through Vodafone from those police forces, as well as the NHS, the Ministry of Defence, the Ministry of Justice and other public bodies is a very serious matter. I could go on and on about CK group’s close personal links with the Chinese state and the Beijing-supported Hong Kong Government, but I will not go through them again.

The Chair of the Intelligence and Security Committee, the right hon. Member for New Forest East (Sir Julian Lewis), made this point earlier, but I would like to reiterate that no parliamentary scrutiny of the security approval process is under way. The Government are thought to be assessing the merger under the National Security and Investment Act 2021, but have refused to inform Parliament about the process or how they will make their decision. I am told that the Prime Minister and senior Ministers have held closed-door meetings with CK group executives in the last 12 months. I think right hon. Gentleman used the word “sinister”, and I agree with him: I too think that there is something quite sinister going on. The Government are not being upfront.

While I am quoting what has been said by earlier speakers, let me quote the hon. Member for West Dorset, who observed that the regulator was weak. I agree with him entirely, but I also think that the Government are weak. The Government should get a grip on the situation, because it is terrible news not only for people in each and every constituency but for the nation.

This merger would result in Chinese state interference in the UK, and it would give the CK group access to sensitive national Government, local government and public body contracts. The merger is not worth the risk. My understanding is that there is no evidence that this merger would increase investment. We have already heard about grey spots and areas with no 5G, 4G, 3G or even simple mobile coverage at all, so we need to ensure that Parliament gives proper scrutiny.

This merger is bad news for British customers and bad news for Britain, but I fear the Government are, yet again, asleep at the wheel on another crucial issue.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the SNP spokesman.

Points of Order

Debate between Navendu Mishra and Baroness Laing of Elderslie

Thursday 15th December 2022 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for his point of order. As I think he knows, it is not a point of order for the Chair; it does not concern order in this House. He is, however, raising a very serious matter. I appreciate it from the point of view of what happens in my constituency, and many Members of this House will appreciate the point he makes and share his concerns. His question to me is about how he can bring this matter to the attention of the appropriate Minister. There are various ways in which he can do that, and I am sure that those in the Table Office will help him if he goes to seek advice there. I am also certain that Ministers currently on the Treasury Bench will have heard what he has said and that the matter will, we hope, be conveyed to the appropriate Minister. I must also point out to him that on Tuesday we have the general debate on matters to be raised before the Adjournment and it would be perfectly proper for him to bring forward his concerns then.

[Navendu Mishra (Stockport) (Lab)]

On a point of order, Madam Deputy Speaker. Successive Speakers have agreed that Members should receive responses from Departments in a timely fashion, yet last week my office received a response from the Home Office to an inquiry made on 1 October 2021. That represents a gap of 14 months and one week. I wonder whether you agree that that is simply unacceptable and that the Government are failing in their duties to this House.

[Madam Deputy Speaker]

I thank the hon. Gentleman for his point of order and, yes, I agree that that is simply unacceptable. Mr Speaker has said from the Chair on countless occasions, and those of us who echo his words have also said this on countless occasions, that it is essential that Departments should support Ministers in giving answers to Members of Parliament in a timely fashion. Fourteen months is not a timely fashion. The hon. Gentleman has put his concerns on the record and the whole House agrees that it is a matter of concern.

Trade Bill

Debate between Navendu Mishra and Baroness Laing of Elderslie

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 20th July 2020 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Members might wonder why I am persistently calling those on the Opposition side of the House and no one on the Government side of the House. I will pre-empt a point of order by explaining that because of the rigid system that we are currently operating, when someone pulls out of speaking, I have no flexibility to go on to the next person on the other side of the House. Therefore, we will have another speaker from the Opposition—I call Navendu Mishra.

[Navendu Mishra (Stockport) (Lab)]

Thank you, Madam Deputy Speaker. With Britain heading out of the EU on 31 December, it appears that the Government are determined that everything must go in their post-Christmas sale, from food standards to our environmental commitments. This should be an opportunity to improve and strengthen existing trade deals and use them to provide an even better return for this country. Instead, we are faced with the prospect of everything being on the table and sold to the highest bidder, as President Trump stated on his visit to the UK last year. As we know from the leaked documents that the Labour party was able to obtain last year, the US is seeking full market access to even the jewel in Britain’s crown: the national health service—and that is just what we know from the papers that were not heavily redacted.

Food standards should be sacred. We do not want chlorine-washed chicken in a can or, for that matter, meat treated with growth hormones, or pork from animals that have been injected with drugs to make them leaner. We should also reject the long list of foods being produced in the United States by dangerous and cruel methods, regardless of whether higher taxes are applied to them, because even those tariffs will be scrapped within just 10 years, as the International Trade Secretary has stated, further enabling the US to secure comprehensive access to our food markets while at the same time achieving the ultimate goal of “reducing or eliminating tariffs”.

More than a million members of the public have signed a petition to protect food standards, but to date it appears that the Government have taken little notice. It is little wonder, therefore, that they are now facing the rebellion by their Back Benchers. There must be proper scrutiny of this process and Parliament should have a veto on any trade deal. Both this place and the other place should have a say over whether to approve any new deal that is agreed with any other country. Why should we leave ourselves at the mercy of the word of this Government, who cannot be trusted to deliver anything, without legislative guarantees and beholden to US food trade associations, which have enormous lobbying power and one goal in mind—profit? It should not be left to big business to challenge laws and regulations simply because they inhibit foreign investment.

Like human rights, the issue of climate change should be central to our future considerations of trade policy, but worryingly there is no mention of it in the Trade Bill, and the record for different countries, when it comes to environmental protections, is not suggested as a consideration in negotiating future trade agreements with them. New trade agreements must be compatible with our commitment to stop global warming passing the point of no return. We cannot simply trade away our commitments on climate change in pursuit of trade deals. Indeed, it should be quite the opposite: trade agreements should be used to improve environmental standards abroad and ensure that climate justice and fairness are at the heart of future trade deals. The Government must think again before selling their standards for a quick buck.