Oral Answers to Questions

Stephen Timms Excerpts

Thursday 5th September 2013 Commons Chamber

[Maria Miller]

There is an enormous amount of evidence of the economic advantages in not just rural areas but across the country of faster broadband, and that is why the Government are putting in place a programme that will see more than £1 billion-worth of investment going into this vital infrastructure.

[Stephen Timms (East Ham) (Lab)]

11. The National Audit Office has exposed lamentable failings in the rural broadband programme, including the absence of competitive provision, which we have discussed in the Chamber. Its report tells us that BT is to be handed £1.2 billion for this project, but, for example,“The Department does not know how much contingency BT has included.”Will the Secretary of State insist that BT provide full 20:20 cost-transference before public money is handed over?

[Maria Miller]

The right hon. Gentleman should also acknowledge that the NAO report stated that the value-for-money controls in contracts appeared to be robust. We all know that BT will be paid only on the basis of actual eligible costs incurred. I hope he will join me in celebrating a programme that will deliver such an important piece of infrastructure to communities up and down the country.

--- Later in debate ---

[Mr Vaizey]

I thank my hon. Friend for that question. It is important to stress that local authorities are in the driving seat in broadband roll-out. Whether to share roll-out plans is a decision for them and some are keen to manage demand. The Secretary of State has written to all local authorities and urged them to share their roll-out plans with their communities, precisely so that community broadband providers have the opportunity to plug the gaps.

[Stephen Timms (East Ham) (Lab)]

The National Audit Office has told us that the rural broadband programme is already running 22 months late. It also states that

“the Department does not have strong assurance over the appropriateness of the levels of contingency”.

May I press the Minister again to ensure that adequate cost data are provided by BT before money is handed over, not least so that there is a fair opportunity for community initiatives such as the one we heard about a few minutes ago?

[Mr Vaizey]

First, it is important to stress that the broadband programme is going extremely well. As I have said before, we should reach 88% coverage by the end of 2015 and 90% in early 2016. That is far ahead of Labour’s plan, which was only to get to superfast broadband by the end of 2017. It is also important to stress that the NAO acknowledged that the in-life controls in local authority contracts with BT were robust. We follow exactly the same procedure as that used in Cornwall, where BT has gone from 80% to 95% coverage for the same amount of money, and we have robust cost controls.