Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Robert Courts Excerpts

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

[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.

[Robert Courts (Witney) (Con)]

I am grateful to my hon. Friend for the important points he is making about the combination of local government and local IT companies. We have a similar situation in west Oxfordshire, where we have a number of excellent companies. Does he agree that through good local governance and providing freedom for local companies, with sensibly managed local finance, we can find the solution to the internet shortages—the notspots we have been talking about?

[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.

--- Later in debate ---

[Robert Courts (Witney) (Con)]

It is a great pleasure to follow the many distinguished speakers in this debate, who have made so many excellent points—particularly my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami), who so eloquently laid out many of the issues that many of us face in our own constituencies.

I have a few brief points to make, but if I may I shall start with a little trip down memory lane. I have recently purchased a new iPhone. In doing so, I remembered the first iPhone I ever bought, which connected to a thing called EDGE—it did not have 3G. Of course, those days are long behind us, and with my new device, I can do a great many tasks I just could not have thought of in those days.

I say that because today is my baby son Henry’s first birthday, and I apologise to him in advance, if he ever watches this speech, that I am here, rather than speaking to him. But all is not lost, because, owing to the wonderful invention of mobile phones and the internet, I can take part in the happy day. I can, for example, see him and speak to him on Skype. For his part, he wonders why on earth his father’s voice is coming out of a small box my wife is holding in front of him.

I can also see photographs and videos of him opening presents. These presents were, of course, ordered from a well-known, very large internet company—and a gigantic number of them there are, too. His everyday necessities are ordered through the internet; there is no longer a requirement to go to the shop. Indeed, it is possible, although I do not have this system myself, to link up the house so that I could turn the lights up and down in his room if I wished. I could check on his welfare through a webcam that I could view on my mobile phone. The most extraordinary, and perhaps slightly disturbing, thing is that there is a teddy bear in his room—a company called CloudPets produces these—and, using an app on this iPhone, I can go online and record a message so that when he plays with the teddy bear and presses the button on it he can hear my voice. This is lovely, of course, on his first birthday.

However, the internet is not just something to amuse, and perhaps confuse or even slightly frighten, infants; it is of everyday importance for us all. As many hon. Members have rightly said, these days the internet needs to be seen, as it certainly is by the people of Witney and west Oxfordshire, as another essential utility. We all know that we are able to get about by road and by train, and that we are connected to water, electricity and, in some cases, gas. We expect those things now. Once, not so many years ago, the internet was seen as a bit of a luxury that people might want in order to go online and look at websites, but it was not something that they had to do. Now it very much is, because so many services take place online that it is increasingly hard to use them if we wish to telephone. Utility companies, for example, increasingly encourage us to go online, perhaps to pay a bill or change a tariff, rather than ring to speak to a person. It is therefore absolutely critical that everybody has immediate access to these services.

I would like, if I may, to clarify some of the terminology that we have discussed in the course of this debate. We all fall very quickly into the habit of referring to fast broadband, superfast broadband and ultrafast broadband —or full broadband, as it were. Superfast broadband—I appreciate that the House is aware of this, but it is worth dwelling on for a moment—uses fibre-optic cable to get to the cabinet but then, from cabinet to house, only copper. That is an old system that does not carry the data required these days due to attenuation—the breakdown of signal over distance and the physical effect of the current going through the copper. The signal slows down so that even if there is fibre-optic cable running to the cabinet, by the time it gets to the house the user does not necessarily receive anything like superfast coverage. That is why, although I entirely bow to the expertise of my right hon. Friend the Member for Wantage (Mr Vaizey) and thank him, on behalf of constituents, for all the work that he did, there is still a job to do, as I think we would all accept. Superfast broadband is being rolled out across the entire country, but still, in some places, 5% to 10% of people do not have it, never mind anything else. We increasingly need fibre-optic cable running to the property, which enables full-speed broadband all the way.

In my professional life before I was elected, I saw exactly why that is. I know that other hon. Members will feel exactly the same. As a barrister, I would be away at court; the papers are often sent through to barristers at the last minute. They would sometimes be very big bundles, and our clerks would wish to email them to us to save us having to go into chambers to pick them up before going home. If I had been in court in, say, London, and I wanted to go to chambers in Winchester or Oxford before I went home, I would wish to avoid that step. I would have to go to my home in Bladon, a village in Oxfordshire, to look at the email to see whether the papers had been sent to me, but there was not enough broadband speed to download them, so I would have to get into the car, drive into chambers, pick up the physical bundles, and then drive back. All the while, I was wasting time, wasting money, downgrading my productivity, and adding to the traffic and pollution on the roads, all of which was unnecessary. When people write to me, as they frequently do, to say that it is impossible for them to carry out their business, I entirely understand their point, because I have suffered that very same frustration.

West Oxfordshire is full of businesses that operate from home. Before this debate, I had a look through my emails to see how many villages had written to me. Over the course of the brief time I have been a Member of Parliament, I have been contacted by constituents from the Wortons, Spelsbury, Kencot, Lechlade, Bladon, Bampton, Bruern, Filkins, Stanton Harcourt, Chastleton, New Yatt, Sandford St Martin, Fawler, Minster Lovell, Taynton, Langford and Standlake. That is 17 or 18 places in all.

I shall concentrate on the example of Chastleton. A gentleman from the parish meeting wrote to me—I am sure you will be pleased to hear, Mr Deputy Speaker, that he made his point succinctly—to say that Chastleton is lucky to get a speed of 1.5 megabits per second and that that has implications. First, businesses simply cannot work from home or find it very difficult to do so. Secondly, as I have alluded to from my own experience, it affects traffic flow because people have to either collect items in person or go to their workplace in Oxford, thereby adding to congestion on the A40, which hon. Members will know is a subject that I mention frequently. Thirdly, on education, children who are required to do their homework online simply cannot do so in many cases.

If anything, my correspondent has missed out one of the real drawbacks of the absence of a proper broadband connection, which is its effect on elderly care. My hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) has referred accurately to an atomised society. When we go away to work, in many cases we leave elderly relatives without immediate access to family. It is absolutely crucial that people are able to make contact with loved ones quickly and easily, and to access the necessary services, including online medical advice and transport-booking facilities.

I remember my father going abroad on business trips. He would telephone during the week and we would wait while the signal bounced off the satellite, went around the world and came back again. We are a long way from those days. When I went to work in New Zealand some years ago, I was able to have a video conference with my loved ones at home and it was set up very quickly. That is all well and good. Those powers exist, but only if people have an adequate internet signal, which is clearly necessary for businesses, the elderly, family and care.

I know that many hon. Members represent rural areas where this issue is the chief concern. However, the situation is much the same in cities. The speeds experienced by many householders in Westminster and Lambeth are not much better than those in the rural areas we represent, so let us not think that the issue affects only those of us who have lots of small villages in our area. It affects cities as well. In fact, a lady who lives on Buttercross Lane in my biggest town, Witney, wrote to me to make a point about developers, which has also been made by my hon. Friend the Member for Cannock Chase (Amanda Milling), who is no longer in her place. My correspondent was frustrated that the cabinet is very close but the developers are not required to connect the rest of the properties. That issue clearly causes immense and understandable frustration for my constituent and many others.

The digital economy has contributed about 7% of national output over the past year and has grown three times faster than other areas of the economy, so it is of enormous significance to the economy, particularly in areas such as mine, where so many people work from home, are self-employed and run small businesses. I declare an interest as the chairman of the all-party parliamentary group for small and micro businesses. The issue is very close to my heart.

There have been many bank closures in Carterton. As other hon. Members have said, we are told that that is because people are increasingly using those services online. That is all well and good, provided that they have the ability to do so. Although someone in Carterton might have a strong signal—not everybody does—that is not necessarily the case in the surrounding villages. They need one if they are to pay council tax or do internet shopping.

When I was younger, if I wanted a particular book I had to order it from the local bookshop. It might be sourced from the other side of the world and take months to arrive. Some of the romance of that has been lost, because we can now order almost anything we want and it will appear in a matter of days or, at most, weeks. That is one of the wonders of the internet age. The same is true of music. Music lovers may remember that once upon a time, if we wanted to listen to a hard-to-find song or album, it was sometimes possible to track it down, but it might have to be ordered from abroad. Now, the many well-known streaming services make it possible to listen to whatever we like immediately, as long as we have a good enough internet service.

Decent, high-speed, ultrafast broadband is absolutely crucial for day-to-day necessities and for business. My hon. Friend the Member for North Dorset (Simon Hoare), who is not in his place, has given us an inkling of what is required in rural economies. In years gone by, the biggest contributor, directly and indirectly, to the economy of Witney and west Oxfordshire was something called the Cotswold Lion. The Cotswold Lion is actually a sheep, and in the not-too-distant past—only 50 or so years ago—the blankets and gloves made from its fleece were the mainstay of Witney’s economy. Now, we are looking to unlock tourism. It is essential that those who provide accommodation in bed and breakfasts, and in the great many houses that are available on short lets, can get those properties online.

On Saturday I attended the Witney carnival. At many such events all over west Oxfordshire, people sell things such as art or food products at small stalls. All such businesses are made possible and successful by access to good, fast broadband. Without it, they simply will not work. I apologise for saying it again, as I have done on many occasions in this House, but broadband is not a luxury; it is absolutely essential in this day and age. I entirely agree with west Oxfordshire residents who write to me to point out that they have a slow connection and they ought to have a fast one. They are absolutely right. It is essential in their personal lives and their businesses.

Broadband is entirely necessary for all of industry, in business premises, in home businesses and in the tourism sector. As I have said, a great deal of work has been done. I thank the Government for the work that was done before I came into Parliament and for their continuing efforts to roll out fast broadband across my constituency and beyond, but we must complete the job. I applaud the introduction of a legal right to superfast broadband. Coverage in Witney is about 90%, but we need to work towards 100%. I welcome the package of measures that the Government are introducing, which include the universal service obligation and £400 million towards the digital infrastructure investment fund.

As I said in an intervention on my hon. Friend the Member for North East Hampshire (Mr Jayawardena), I particularly encourage private investment. I am grateful to BT for being proactive in my constituency and trying to connect as many people as possible. With sound money, good local governance, strong local councils and wise investment in flexible, agile and cost-effective local companies—there are several such companies in my constituency—we can provide this full solution.

I will briefly touch on the two clauses in the Bill that I consider to be most relevant. The first of them quite rightly puts business rates relief for broadband alongside the existing relief for small businesses, charitable organisations and rural businesses. Clause 6 promises that the effect will be more or less immediate, and I applaud that.

My final point—I do not want to test your patience, Mr Deputy Speaker—concerns 5G. I welcome the fact that broadband and mobile telephony will be combined over the coming years. As we seek to bridge the digital divide, we really must fix notspots. I applaud everything that the Government have done towards that, and I hope that the Bill will be given a Second Reading.

[Several hon. Members rose—]