Telecommunications (Security) Bill

Nigel Evans Excerpts

Report stage & 3rd reading
Tuesday 25th May 2021 Commons Chamber

[Bob Stewart]

Good. When my right hon. Friends the Members for South Holland and The Deepings (Sir John Hayes) and for Chingford and Woodford Green start talking, I know I am in trouble.

So we on the ISC are subject to section 1(1)(b) of the Official Secrets Act 1989, and, whatever side of the House we sit on, we have all been appointed to the Committee by the Prime Minister with that in mind. However, not every Member of Parliament or Clerk has signed the Official Secrets Act—some have, but many have not. Obviously, I am not being personal about colleagues because a lot of them can keep secrets far better than I can: as my wife says, I have a big mouth. Okay—but I do keep secrets of the state, Minister.

ISC Clerks have something called developed vetting security clearances, but not all DCMS Committee Clerks would. Developed vetting security clearances require the individual concerned to undergo a lengthy and somewhat intrusive investigation—some of the questions are appalling. Assuming that DCMS Clerks were to have such developed credentials and were able to handle top secret material in hard copy, such as documents that need to be secured in security-accredited lockable cabinets within a security- accredited office, anything with a top secret grading on it or an IT system with such grading would need to be accredited and checked out very carefully.

May I also raise the matter of meetings where top secret material is discussed? I may be wrong, but I do not think there is such a meeting room in the Palace or in Norman Shaw—[Interruption.] Sorry, I meant Portcullis House—I have only been here 11 years. A room with clearance would be required even for us to be able to look these documents, store them or discuss them. I do not think it is a secret that the ISC cannot meet here—we have to meet somewhere else. We go to a place that is accredited and checked, where documents can be stored and to which our Clerks have ready and easy access. All discussions concerning such a level of security take place in that room. We are not allowed to write something down and walk it out—everything has to be left there, unless it is specifically on a certain kind of paper and we are informed of that very strictly.

The product of ISC investigations can be laid before Parliament only after a redaction process with the intelligence agencies and confirmation from the Prime Minister that nothing in them might breach national security, so I think it would be rather difficult for the DCMS, Ofcom or the Digital, Culture, Media and Sport Committee to be able to oversee top secret material produced by the Department and still obey national security rules. In short, we parliamentarians might not have oversight of some key decisions made by Ofcom and DCMS. That can work—I have no doubt the Minister will say that—but we could be blindsided. The Government think otherwise at this stage, and I am prepared to accept that promise, but this might quickly run into difficulties when classified material has to be examined by people from Parliament who are specially selected to do it.

In summary, I repeat that I will be supporting the Minister—of course I will, as I am loyal, just like a dog—but it does not stop me raising a flag of concern. There will always be problems around these matters. I hope that that will not be the case but I would not be surprised if, as my right hon. Friend the Member for South Holland and The Deepings has said, we are only at the start of a process and we have to revisit this shortly.

Finally, may I apologise, Mr Deputy Speaker, as I do not feel great and I am a bit dizzy, so my voice is not the usual? I am going to sit down now.

[Mr Deputy Speaker (Mr Nigel Evans)]

We heard you loud and clear, Colonel Bob.

[James Sunderland (Bracknell) (Con)]

It is a great pleasure to follow my eminent right hon. Friend the Member for Beckenham (Bob Stewart)—if only I were as good.

As the final Back-Bench speaker this afternoon, it is incumbent on me to be supportive of the Government, which of course I am, and this excellent Bill. We are where we are today for two reasons. First, it shows that the Government do listen to Back Benchers. Secondly, the Bill is a pretty good bit of work and it ticks the box, as indeed it should. As defence and national security become ever more virtual and online, it has never been more important to secure our lines of communication, both domestically and internationally, with our allies. I urge all Members to consider the notion of strategic independence, which we have spoken a lot about during the covid crisis. As we go forward, it is really important that we aspire to be able to operate autonomously as a global nation alongside our allies.

I believe that the Bill is important for three reasons. First, it will allow for better security both domestically and internationally. It kicks out the high-risk vendors from our network—what’s not to like? Secondly, it placates our allies. New Zealand, Australia, the USA, Canada and others were quite noisy when Huawei was originally admitted to our network, so let us hope that this will placate them, cement that relationship and, perhaps in time, even enable us to admit Japan and other close allies. Thirdly, it opens the door for other 5G providers to come in, which is a good thing, and I support the UK’s diversification strategy.

Having sat on the Committee for this excellent Bill, it is a pleasure to see it back here on Report. The Bill takes forward the Government’s commitment to the UK telecoms supply chain review, introduces a new security framework, amends the Communications Act 2003, introduces new security duties, brings new powers to the Secretary of State and strengthens Ofcom’s regulatory powers, allowing it to enforce the new framework. That is all very positive. It also introduces new national security powers for the Government to impose, monitor and enforce controls. Again, that is a positive step.

I am pretty happy with the Bill as it stands, but in the interests of objectivity, I will talk to a number of the new clauses and amendments. On new clause 1, the Government are aware that the Bill gives Ofcom significant new responsibilities, and it will need to increase its resources and skills to meet those new demands. Ofcom’s budget is approved by its independent board, and the Minister has today confirmed that the budget limit set by the Government will be adjusted to allow Ofcom to carry out new functions effectively. Ofcom is already engaged in this space—we are already proactively looking over the horizon and scanning for future threats—so I am happy that the Government have got this about right.

New clause 2 would ensure that the Intelligence and Security Committee of Parliament is provided with information relating to a designated vendor direction. I am sympathetic to this, but the Government know what they are doing. As the Minister said, the ISC’s primary focus is to oversee the work of the security and intelligence agencies. Its remit is clearly defined in the Justice and Security Act 2013, so the Bill is not the appropriate place to achieve an overall enhanced role for the ISC.

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In conclusion, my sense is that the new clauses and amendments that we have discussed today do have merit, and I note that the Minister has noted them. Again, we discussed these issues at length in Committee. It is a good Bill and I will be voting it through this evening.

[Mr Deputy Speaker (Mr Nigel Evans)]

Before I call the Minister, may I say that I am anticipating three Divisions, on new clauses 1, 2 and 3? If there is to be an additional vote, I would like to be informed so that I can call it, but I understand that there are going to be only three Divisions.

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

I thank all those Members who have contributed to the debate today. It is an important debate because digital connectivity is an integral part of all our lives. For countless people across the country, having fast and reliable broadband and a good mobile connection is vital to our way of life, but for us to truly reap the benefits of the gigabit-capable broadband and 5G, we need to have confidence that they are secure and that means securing the networks on which they are built, the supply chains on which they depend, and the equipment and services that support them. The Bill demonstrates clearly the Government’s commitment to ensuring the security and resilience of our telecoms networks.

Let me turn to the new clauses and amendments. I shall start by addressing new clause 1. As the UK’s communications regulator, Ofcom already plays an important role in ensuring the ongoing security and resilience of our networks by enforcing the current security duties under the Communications Act. This Bill will build on that experience, giving Ofcom new responsibilities and a range of new powers. What the new clause would do is require it to publish an additional statement as part of its annual report. Happily, I can reassure hon. Members that the Bill already has various reporting mechanisms included within it. Under the new and snappily named section 105Z, Ofcom will need to regularly report to the Secretary of State. Subsection (4)(a) makes it clear that that report must include information on the providers’ compliance with the duties imposed on them by the Bill.

Ofcom will also need to report on telecoms security in its annual infrastructure report, and clause 11 specifies that this should include information on the extent to which providers are complying with their security duties under new sections 105A to 105D. The Secretary of State will also need to regularly report to Parliament on the effectiveness and impact of the new telecoms security framework.

On the final point in the new clause of the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) about publishing information on emerging and future security risks, that is not of itself necessarily the most productive way of handling security risks, but the principle that she is trying to get to is very much part of what the Government are seeking to do and, of course, it would be part of what we intend to make sure that we talk about as much as we can within the bounds of national security.

I turn specifically to budget and resources. The hon. Member has set out her concerns about Ofcom’s access to resources and capabilities. It is an issue that my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) also touched on. I can tell the House today that Ofcom’s security budget for this financial year has been increased by £4.6 million on top of its current security budget. This funding will allow Ofcom to more than double its headcount of people working on telecoms security, ensuring that it has the necessary capability and capacity to deliver its new responsibilities under the Bill. The hon. Member for Newcastle upon Tyne Central is aware that I have written to the Intelligence and Security Committee about that security resourcing. It was at a level that I cannot go into on the Floor of this House, but I hope that provides the kind of reassurance that she seeks.

Specifically on the future risks that I alluded to a moment ago, we have ensured that the Bill is looking to the future. For example, clause 12(3)(b) amends Ofcom’s information-gathering powers under section 135 of the Communications Act to ensure that it can request information from providers concerning future developments in their networks that could have an impact on security and, when reporting on security, Ofcom must include any information that assists the Secretary of State in the formulation of security policy, allowing him or her to make an informed decision about what should be published as well in due course.

New clause 2 has been the subject of the majority of this debate, and rightly so. One of the phrases used about the ISC was that it adds value; this Government do not dispute for a second that it adds huge value, and I welcome the tone with which the Chairman of the ISC, my right hon. Friend the Member for New Forest East (Dr Lewis), has approached this. I appeared before the ISC with some trepidation, as is probably appropriate for all Government Ministers, but it was a hugely productive part of this process and something that I am more than happy to do again. I do not think that my right hon. Friend necessarily thinks that piecemeal changes to the ISC’s role are the way to pursue what he seeks, but the annual report that he has mentioned will certainly be looked at closely by the Government.

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[Chi Onwurah [V]]

This has been a very well-informed debate. I am sorry if my own digital connectivity did not enable my contribution to be heard as perfectly as it should have been, but I hope we have corrected that.

There were many excellent contributions from both sides of the House. It is important to note that the House is in quite rare agreement on a number of questions regarding the Bill, particularly on the importance of national security. The representatives of each of the parties in the debate—the hon. Members for Aberdeen South (Stephen Flynn), for Caithness, Sutherland and Easter Ross (Jamie Stone) and for Strangford (Jim Shannon), and the Minister himself—shared support for the primacy of national security and recognition of the importance of our telecoms networks in our national security, and I was pleased to listen to their contributions. I thank the Minister for his response and for the tone in which the debate has been conducted.

However, I will say briefly, with regard to new clause 1, which seeks to ensure that Ofcom has the skills and expertise needed to undertake its new duties in the midst of all the other responsibilities that Parliament is asking, as well as reviewing future provision and threats to the network, that the Minister’s comments on the increase in the cap on Ofcom’s budget did not begin to address our concerns. We have, effectively, a snapshot of the financial resourcing available now. The new clause seeks to ensure that we have an understanding of the resourcing as it continues—as threats evolve in the future—and particularly that we are able to look forward to new and evolving threats on the basis of a thorough understanding of the assets in each network operator’s network.

Indeed, the right hon. Member for South Holland and The Deepings (Sir John Hayes) emphasised the step change in the requirements of Ofcom that the Bill represents. The Minister implied that Ofcom would be able to do everything requested in the new clause when it comes to looking at asset registers, for example. I simply do not understand his reluctance to put that in the Bill, given the important role that Ofcom is to play in our telecoms security. I am afraid that I do not feel that he answered my points on new clause 1.

On new clause 2, members of the Intelligence and Security Committee—its Chair, the right hon. Member for New Forest East (Dr Lewis); the right hon. Member for Beckenham (Bob Stewart); and the right hon. Member for South Holland and The Deepings—eloquently articulated many of the arguments for why the ISC needs to be part of the scrutiny of this Bill. Indeed, the right hon. Member for Beckenham was particularly detailed in his description of the very room requirements for assessing national security issues. Having worked at Ofcom, I know its rooms very well, and I do not think that they meet the requirements that he set out.

It is worth noting that the ISC was one of the first parliamentary organisations to raise issues around Huawei, back in 2013. It seems very wrong that it should be excluded from involvement in scrutinising how the Bill is implemented, given that it is the only parliamentary grouping with the appropriate security clearance. Although I appreciate the Minister’s constructive tone, I do not think that he answered the questions raised or sufficiently justified the Government’s aversion to ensuring a process for ISC scrutiny, so I will press new clause 2 to a vote.

Finally, the most complex of our new clauses is new clause 3, which would ensure that the diversification of our telecoms networks was achieved as a prerequisite for their security. We heard from the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) about how telecoms markets have been constructed to enable the consolidation and monopoly power of particular players, and particularly Huawei. Unfortunately, he did not go on to say how in the Bill the Government would deliver on a UK sovereign capability, but he was absolutely right about how the market has effectively failed.

The hon. Member for Wealden (Ms Ghani) used her experience on NATO’s science and technology committee and on this Parliament’s Business, Energy and Industrial Strategy Committee to encourage the Minister to truly examine our network resilience. New clause 3 is designed to ensure the ongoing ability to examine network diversification and resilience.

We heard from the right hon. Member for South Holland and The Deepings about the impact of the unaccountable power of monopolies. Again, since the Bill does not mention a diversification plan or diversification strategy, we cannot see that it will do anything to address that issue. The hon. Member for Bracknell (James Sunderland) said that the Bill supports network diversification. I know that that is the intention, but without our new clause I cannot see how it will actually achieve it.

The Minister reiterated the diversification plans, which are not a plan—as I set out, they have no detail and no action. As for his attempt to explain why the Government have omitted from the Bill any reference to diversification, I have to say that I found it entirely incomprehensible. It was as if referring in the Bill to diversification would limit the meaning of diversification; if that were the case, we would be unable to refer in any Bill to many of its intentions or outcomes.

I remain convinced, and there is agreement on all sides of the House, that we need to ensure that diversification of our telecoms supply chain goes hand in hand with ripping out Huawei and reducing our dependence on the two remaining providers. It is very important that we take this opportunity to change the Bill so that the diversification of our telecoms networks is an integral part of Ofcom’s reporting on the progression of those networks, so I will also press new clause 3 to a vote.

[Mr Deputy Speaker (Mr Nigel Evans)]

As I announced earlier, there will be three Divisions. As usual—if anything is usual these days—the first will take eight minutes and each subsequent Division will take five.

Question put, That the clause be read a Second time.

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[Stephen Flynn]

I am a strong believer that brevity is a great charm of eloquence, so that is a statement that would be well taken on board by the shadow Minister in future. I was hoping for a power cut in Newcastle—I am being kind.

First, I place on record my thanks to my hon. Friend the Member for Gordon (Richard Thomson) for his partaking in the debate on Second Reading. He did us a great service in that regard. I also thank Josh Simmonds-Upton in our research team, who put a great deal of effort into the Bill.

This is a Bill that we will support. We will give it close scrutiny moving forward, and I hope that the Government will work on good terms with the Scottish Government moving forward in this regard.

Question put and agreed to.

Bill accordingly read the Third time and passed.

[Mr Deputy Speaker (Mr Nigel Evans)]

I am going to suggest that as we go through the next motions, the Serjeant at Arms sanitises just the Government Dispatch Box in order for us to save a little time.