Broadband

Tessa Munt Excerpts

Wednesday 4th March 2015 Westminster Hall

[Neil Parish]

I have huge confidence in the Minister, but as he can imagine, if someone is living in a constituency such as mine, where about 70% or 80% of people are not getting broadband, those figures do not mean an awful lot. Therefore, I urge him to ensure—I know that he will because he is such a wonderful Minister—that they will immediately get their broadband tomorrow. I am being slightly facetious, but let me reiterate that the purpose of this debate is not just to criticise, but to see whether we can do better. I am not criticising the Government, but when there is a contract from BDUK that has Government money, council money, business money and, in fairness, money from BT, let us make sure that it delivers on its promises.

[Tessa Munt (Wells) (LD)]

I briefly intervene to say that there is no such thing as Government money or council money; it is all taxpayers’ money and that is why those responsible have to be held to account.

[Neil Parish]

I stand corrected by the hon. Lady. It is indeed our money that is being spent and we expect this service to be delivered.

The National Farmers Union has warned that its members do not have the infrastructure connections to enable fast enough broadband to comply with online Government services, including complying with the new agriculture policy, because all the mapping now has to be done online. I can understand that because of the need to map all the hedgerows, but it is essential that we get broadband out to those businesses.

The Federation of Small Businesses conducted research in July 2014 that shows that 94% of small business owners consider a reliable internet connection as critical to the success of their businesses and that 14% of UK small firms view the lack of a reliable broadband connection as being their primary barrier to growth. That has been recognised by the Government, but this is again about delivery. As small firms become more reliant on a high-quality broadband connection to do business, that will become even more significant in future.

As the EFRA Committee’s report rightly noted,

“2 Megabits per second (Mbps) is already an outdated figure, and 10 Mbps is increasingly recommended as a suitable USC for standard provision.”

The Government must reassess whether the current universal service commitment is still valid and right.

I would like to get a little more parochial. The Connecting Devon and Somerset programme that covers my constituency is on track to deliver superfast broadband to 90% of premises across Devon and Somerset by the end of 2016, up from 64% overall when the programme began. The programme is supported by a £32 million investment from BDUK.

I am pleased that the Department for Culture, Media and Sport announced on 25 February 2014 an additional £22.75 million for rural broadband in Devon and Somerset from the Government’s—from the taxpayer, from us all —£250 million broadband fund. However, my constituency of Tiverton and Honiton is ranked as the 611th worst constituency for broadband out of 650 constituencies. Only 33% of premises have high-speed broadband. A large number of communities in my constituency, such as Upottery, Stockland and Rousdon are being left in digital darkness. Some business owners in parts of Dunkeswell have told me that they may be forced to relocate because of the lack of reliable broadband. I have been working with local campaigners, Graham Long in Upottery and Rebecca Pow in Churchinford and Otterford.

CDS has now published its procurement tender for the next stage of the roll-out, to extend superfast broadband coverage as far as possible in Devon and Somerset, with the aim of getting to 100% coverage by 2020. I welcome the progress made in connecting more premises in Devon and Somerset, but I am deeply disappointed that we are not farther along this road. Communities in my constituency should not have to wait until 2020 for broadband delivery. I do not buy the argument constantly put to me by BDUK that, “It’s all too difficult, Mr Parish.” It is not too difficult, because a contract was given and money has been provided to deliver in those difficult areas. The contract is there to provide exactly what we want—broadband in our rural communities. Greater focus is needed on helping hard-to-reach areas and exploring innovative technologies.

--- Later in debate ---

[Tessa Munt (Wells) (LD)]

I am afraid that I do not share the optimism of my colleague the hon. Member for Tiverton and Honiton (Neil Parish) about what will happen in Devon and Somerset. The Government’s own figures show that only 41% of residents and businesses in Somerset have access to superfast broadband. That goes nowhere near meeting the needs of local people or rural businesses in my constituency. Effective, reliable and affordable broadband is essential in the 21st century, and it is fairly shaming that we can in no way compare ourselves with places such as Korea, which seems to have magnificent broadband coverage. It is a bit of a shame to have to say that. [Interruption.] Did the Minister want to say something?

[Mr Vaizey]

I did, but I have changed my mind. I am just going to check the facts.

[Tessa Munt]

Okay. Effective, reliable and affordable broadband is essential to keep people connected and ensure that our rural economy prospers. I do not understand how providing superfast rural broadband appears to mean strengthening the broadband in towns, where we have some coverage already, while coverage peters out as we move into rural areas. Surely, the whole point of rural broadband should have been to start in areas where there is little or no coverage and work back towards the places that have at least some coverage. The whole thing seems to be back to front, as far as I am concerned.

The Minister is always very optimistic and loyal about this project, and I would be delighted to share his optimism, but I have no idea how the final 59%, let alone the final 5%, of people in Somerset will be anywhere near getting some sort of decent service by 2020. The idea of getting to 90% by 2015 and 95% by 2017 is an utter dream. I would also like the Minister to tell me what superfast broadband is. Every time I have asked BT the question, it has fluffed the answer. I want to know what people in my patch can expect by way of an upload speed and a download speed.

[Mr Vaizey]

I am now ready to intervene. May I briefly put on the record that as far as I am aware, 21,000 premises in the hon. Lady’s constituency will be covered under phase 1, which is getting to 90%? That is effectively the same amount as were covered commercially. The figure of 21,000 and the term superfast broadband are audited, so we do not say that those premises are reached unless they are getting speeds of 24 megabits a second.

[Tessa Munt]

I thank the Minister for that clarification. If he has information about where that will happen, that leads me to my next question. Every time I have asked where the not spots are, I have been given all kinds of maps showing different colours. Most of my constituency is under consideration, or somebody is looking at the plumbing, or whatever. It seems unlikely that anyone will be able to make any headway in those areas. If the Minister is that sure, however, I am delighted.

I would be very grateful to have that information from him so that people who have no coverage can make alternative arrangements. I have heard reports, from my part of the country and others, of parish councils attempting to find out what is going on, and arranging for their own parishes to go online through some alternative to BT. Just when they have been about to hit the button and go for it, BT has suddenly come back to them and said, “Actually, we are going to do your bit after all.” That is not very competitive. If BT is not going to be up front, it is not fair for it to come back to communities that are trying to make their own arrangements and say, “Don’t do that, because we are coming in anyway.” That is slightly anti-competitive practice, and it does not look good, even if it is the truth.

The Department for Environment, Food and Rural Affairs and various other parts of Government, such as the Rural Payments Agency, have moved to digital. However, according to the figures that we have been given by the Country Land and Business Association, more than 10% of the countryside is without access to any broadband, and 12% has no digital footprint whatsoever. The trouble is that our suppliers expect farm businesses to be fully interactive online. Even though the basic infrastructure is not in place and Government-funded schemes are not delivering to remote and difficult-to-connect communities, they still have to use the various basic internet systems. Farmers find it difficult to innovate and to use new farming technology and software, which has to be downloaded from the internet. They also find it difficult to comply with other Government regulations by, for example, submitting VAT returns, getting vehicles taxed and processing animal tagging.

In my constituency, accessing the internet is also vital for jobseeker’s allowance claimants. Those who are looking for work, for whatever reason, have to show that they have applied for every possible job opportunity online. If they do not have internet access, it is absolutely impossible to meet the criteria, and their benefits may be stopped. Some of my constituents have to travel some distance to use the internet. They have to go to Bridgwater or to Wells, and there is little public transport. For people who are challenged financially and have little money because they have no job, but who are trying to find themselves work, it is incredibly difficult to compete and get the jobs that they need and want.

[Mr Heath]

Is not much of the problem caused by the hugely deceptive nature of percentages? We talk about a large percentage being covered without realising that in Somerset and the surrounding area, that means the fleshpots of Taunton and Exeter, and probably places such as Tiverton and Honiton. That relatively small percentage of people covers a large area of my constituency and that of my hon. Friend, and they are the people who do not get broadband and do not get mobile phone coverage worth having. In fact, they do not get anything, and it is time that they were properly served.

[Tessa Munt]

I tend to agree. Rather than looking at percentages, we should look at people. Back in the 1980s—I can remember all of this—we had British Rail trying to move trains from A to B and forgetting that its job was to move passengers from A to B. Exactly the same lack of focus on people has led us to where we are with broadband.

When my children were in senior school, they found the internet essential because they had to access their homework online. When they were at college, they had to send all their submissions online to their tutors, and they have to do exactly the same thing now that they are at university. It is difficult for someone who has no broadband and who lives some distance from the library, if they cannot drive or do not have a car and there are no buses. How the hell is anybody meant to be able to do these things?

I have a wonderful constituent who is 94 years old, who moved into Cheddar and found herself waiting weeks and weeks for some sort of connection. She used Skype, Twitter and Facebook to keep in contact with members of her family, who were all over the world. We must remember that in order to keep older members of the community living in their own homes, it is absolutely essential they can access services such as having their heavy shopping brought in from the supermarket by ordering online. They can still pop out to the shops every day and do the small items of shopping. Using the internet in such a way will help to keep them in their own homes.

Many of the businesses in my area are tourism-based, and if they do not have a reliable online connection and cannot use broadband at the right speed, they do not have a competitive edge. It is also difficult to buy, sell and communicate if the connection drops out all the time. Without a decent broadband connection, life is so much harder.

I wrote to the Competition and Markets Authority asking it to look into BT’s apparent refusal to join an open bidding process to increase high-speed fibre broadband access in Somerset. There is slight confusion over this, but it looks as though BT has held back information that might have enabled other organisations to join the bidding process. By saying that that information is commercially sensitive, it has prevented anybody from being involved in tendering for the phase 2 superfast extension programme.

[Mr Bacon]

I have no doubt the hon. Lady is right that BT has engaged in anti-competitive behaviour, and broadband is now a regular source of complaint among residents and businesses in my surgeries in Norfolk. However, is the situation not even worse? BT inflated its budgets for the BDUK rural broadband programme, thereby obtaining more state aid than it was entitled to. At the same time, it invested less in the programme than it communicated to the Government.

[Tessa Munt]

The hon. Gentleman has taken the words right out of my mouth. I hope the Minister will be in a position to address our concerns.

[Mr Vaizey]

I am happy to.

[Sir Alan Meale (in the Chair)]

Order. Minister, quite a few Members want to speak, and the debate should not be turned into a question and answer session between you and one Back Bencher or another. It is much more important that we have as full a debate as we can. In the generous amount of time that remains, you will get an opportunity to reply to all the questions put by Members on both sides of the Chamber.

[Tessa Munt]

I am pleased that the Minister is so keen, but I take your point, Sir Alan.

My next point relates to the consequences of using the closed tender option in the Connecting Devon and Somerset bid. It is likely that all the confidentiality clauses required by BT, which shrouded the phase 1 programme, will carry straight over into phase 2. There can, therefore, be no demonstration of value for money to the public. BT will not invest in the programme to take coverage above 95%. Its focus must be on shareholder value, so there is no incentive for it to do that. People will not know whether they will get faster broadband under phase 2 until BT sees fit to tell them. Businesses and individuals cannot plan their futures on that basis.

Another aspect is the number of constituents who contact me about the allied organisation, BT Openreach, and I have spoken to the Minister before about my dismay at its pretty appalling service. In my village, lines went into an office and shop connection, but giving the broadband connection some life seems to require a bloke coming 20 miles across Somerset to flick a switch. When he fails to turn up, and businesses are not online, as they need to be, that makes things difficult, because there is no way for people to contact someone who can tell them what is happening.

We have been talking about digital darkness, and I will finish on a slightly lighter note—actually, it is not a lighter note, but something that filled me with horror. Last week, I asked the Prime Minister what he was going to do about the 41% coverage in Somerset. He told me:

“All local councils now have searchable websites”—[Official Report, 25 February 2015; Vol. 593, c. 318.]

He said people can therefore see when they can expect to get broadband in their area by going online, which is brilliant—if they are online.

--- Later in debate ---

[Mr Vaizey]

I can give my hon. Friend an unequivocal answer—yes. Our latest audit found that the scheme cost is, I think, £92 million below what we expected. With clawback provisions—if more people take up broadband than expected and, therefore, more revenue comes in—we find that we can go further. In Cornwall, for example, a scheme started under the previous Government had a target of 80% coverage, but with the same money we will now reach 95%.

The hon. Member for Hartlepool quoted the National Audit Office report from, I think, 18 months ago, which was when I had to tour the studios with the right hon. Member for Barking (Margaret Hodge) to contest her conclusions. That report got wall-to-wall media coverage, but last month’s NAO report, which gave the scheme a clean bill of health and said that we had made a lot of progress, got absolutely no coverage at all. In fact, I wrote down a quote from the right hon. Lady. She said that there

“does seem to have been some progress, which we…welcome”.

Coming from her, that is a massive vote of confidence.

[Tessa Munt]

Will the Minister answer a simple question for me? He has already talked about return on investment. If people have contracted with a company to receive broadband at a certain speed but they then suffer slow speeds, poor connections and constant drop-out, they receive no return on their investment. How can they get their bills adjusted to reflect what they receive, because there is a definite variance between what they contracted for and what they get?

[Mr Vaizey]

That is an interesting point. If I wanted to dodge the hon. Lady’s question, I would say that that was a contractual matter between BT and its customer, or indeed any other provider and its customer, but it is an important point that I shall take seriously. We have already tackled relatively straightforward issues, such as stopping companies from advertising their speeds as the fastest speed that could be possibly received. We have asked them to advertise only the average speed that people are likely to receive. However, I want to look at whether we can have different levels of contracts for people who clearly receive slower speeds.

[Tessa Munt]

I thank the Minister very much indeed. Will he do that in the next few weeks, while he has still got the power?

[Mr Vaizey]

I know that the hon. Lady has nothing but admiration for my abilities. That is certainly something that I want to look at and, given that I said that in an open debate, she can be assured that we will look at and discuss that with BT and others.

Let me go back to basics—it is good to see one of the leading members of the Public Accounts Committee, my hon. Friend the Member for South Norfolk (Mr Bacon), returning to his seat, as I have already prayed in aid the National Audit Office. No doubt, he will seek to correct that position.

--- Later in debate ---

[Mr Vaizey]

I really fail to understand the point that the hon. Gentleman is trying to make, and I will not invite him to make it again or we could be here all night. In his constituency, 26,000 homes will get coverage under phase 1 of the programme, and nearly 2,500 more homes will get it under phase 2, so we are talking about 28,500 homes in his constituency that will get coverage.

The programme is run by the local authority. To make a blunt point, we are seeking bang for our taxpayer buck. To pluck a figure from the air, if it will cost £50,000 to connect a village of 20 people and one of 200 people, which group will be chosen? That is potentially a political decision as well. One might take a view that connecting those 20 people is better, in the sense that they are at the end of the queue, so let us bring them forward. However, that is something that we also left to local authorities, because we wanted them to partner this programme. It was not for us in the centre of Whitehall to decide between village A and village B.

[Tessa Munt]

Can the Minister comment on what appears to be utterly anti-competitive behaviour? I have written down in my notes some fairly serious allegations, and this story has been covered in both the Western Morning News and the Western Daily Press. It is claimed that BT said it would withdraw from the tender process for the contract for Connecting Devon and Somerset if CDS did not use the Broadband Delivery UK framework and run a closed tender process in which BT was the only bidder.

[Mr Vaizey]

I will happily look at evidence the hon. Lady has of any anti-competitive practices by BT. I will try to unpack what she is alleging. First, BT is free to bid or not to bid for these contracts. We should remember that when we are busily kicking BT, which we do in all these debates; for a quiet life, BT might not bid for any of these contracts.

[Tessa Munt]

As I understand it, in the national parks, parts of Exmoor and Dartmoor have been parcelled off, so that the contracts for those areas can be tendered competitively. Ironically the suppliers there have to confirm that they are not participating in any “anti-competitive activities” and they have to sign a “certificate of non-collusion”—

[Mr Vaizey]

I get the point. I am running out of time, so let me simply say that BT is free to bid or not to bid, and it is free to say to a contracting authority that it wants to use the framework contract to save time and make life more efficient, and that if the authority is going to use a different contract it will not bid. That is entirely up to BT and I do not think that is anti-competitive behaviour.

Obviously, we have a debate—a constant to-ing and fro-ing—with BT, because we audit its figures and invoices. Again, it is worth making the point that BT invests this money up front; it does not receive any money from the Government or the taxpayer until it has done the work. It is not handed a cheque to meander kindly down the road and do the work when it feels like it, and if there is some good football on the telly on Wednesday night, it will not do the work. It does the work and then it gets paid.

As I say, we audit those figures and they show value for money. BT is a national provider, and therefore it was in a very good position to win those contracts. However, there is competition throughout the country.