Telecommunications Infrastructure (Leasehold Property) Bill

Debate between Tobias Ellwood and Iain Duncan Smith

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 10th March 2020 Commons Chamber

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I rise to speak to the amendment standing in my name and in those of my colleagues.

The reason we have tabled this amendment is that we are genuinely concerned, like the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), that this country has got itself far too bound into a process in which we are reliant on untrusted vendors—in this particular case, Huawei. We recently heard a Government Minister express the view that Huawei is a private company. Let us be absolutely clear at the outset: this company is not a private company. Ultimately, it is essentially almost completely owned by Chinese trade unions, and they, of course, are completely locked into the Chinese Government. This an organisation wholly owned by China.

It is often bandied around, including by some of the security guys the other day, that this is somehow all to do with market failure, as if out of nowhere companies from the west in the free markets—the free world—no longer wanted to get involved in this process. That is completely and utterly without foundation. The single biggest problem we have faced is that, nearly two decades ago, the Chinese Government set out to ensure that they dominated the market. As this organisation has access to nigh-on unlimited funds, it has spent that period underbidding every single time in these processes, from 2G through to 4G and now, as we understand it, 5G.

[Mr Ellwood]

I commend my right hon. Friend and the others who have put their name to amendment 1 for raising the profile of this difficult and complex issue. I think the Government should be on warning that while the amendment may not be pressed to a Division because of what the Minister says later, this House believes that we need to wean ourselves off Huawei. Does my right hon. Friend agree that there is an easy way out of this? There are six global vendors when it comes to 5G: ZTE, Huawei, Ericsson, Nokia, NEC and, of course, Samsung. The last two are not allowed to operate outside Japan and Korea. If they were invited to do so, that would enable us to push away Huawei and ensure that our national infrastructure is protected.

[Sir Iain Duncan Smith]

I agree with my right hon. Friend, and I was going to come to those points.

As I saying, if we look at this strategy, we see that when this all began, there were something like 12 companies in this marketplace. One by one, they have disappeared. Why have they disappeared? They simply cannot compete with Huawei’s pricing. These telecoms companies—telcos, as we call them—have bit by bit found themselves going to the cheapest bidder, providing the technology is as good as the others. By the way, it is certainly not an argument that Huawei has better technology; there is no evidence of that whatsoever. In fact, I think Dr Ian Levy said a year ago that he thought Huawei’s security issues were a shambles, and that is correct. Huawei does not somehow have extra brilliant technology. What it does have, however, is money, which allows it to bid down.

The hon. Member for Newcastle upon Tyne Central said that she is a believer in free markets. She will know that the free market relies on companies being able, when they sell their goods, to make enough money to reinvest and improve the quality of their goods. That is how a proper rules-based market works, but not with a company like this, which is able to strip that away. One by one, these companies have gone, not because of market failure but because it has been a policy position of the Chinese Government using Huawei to dominate this market over nearly two decades.

Oral Answers to Questions

Debate between Tobias Ellwood and Iain Duncan Smith

Monday 23rd January 2012 Commons Chamber

[Mr Tobias Ellwood (Bournemouth East) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

Today in the other place they will be debating an amendment on the benefit cap. I believe that that system will help to restore fairness by setting a cap for those on benefits of £26,000 a year after tax or £35,000 a year before tax. I cannot understand why those who have said they would support this and were in favour of it have voted against it as often as possible.

[Mr Ellwood]

I congratulate my right hon. Friend and his team on the work they are doing to modernise the benefit system following the mess that was left by the previous Government. On the benefit cap, does he agree that those who oppose it need to explain to those who are in work but who earn less than £35,000 a year why people on benefits should be better off than they are?

[Mr Duncan Smith]

My hon. Friend makes a powerful point. The reality is that almost everybody out there beyond the politicians and the game playing believe it is reasonable to say to people who are on benefits that if they are not working, they should not earn more than those who are working and paying their taxes. I am astonished at the Opposition, who do not seem able to get it. I understand from a recent poll that even their supporters are overwhelmingly in favour of the proposal.