Oral Answers to Questions
Lord Vaizey of Didcot Excerpts(9 years, 10 months ago)
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Miss Anne McIntosh (Thirsk and Malton) (Con)
6. What comparative assessment he has made of the extent of broadband coverage in the UK and other EU member states.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
As the House has already heard from my right hon. Friend the Secretary of State, the UK’s broadband coverage is among the best in Europe: 73% of premises can access superfast broadband compared with just 45% in 2010. Government investment will drive superfast coverage up to 95% by 2017.
Miss McIntosh
Sadly, rural areas will be left behind. I understand from NYnet that Thirsk, Malton and Filey will have only 78% coverage by 2015-16. Given that farmers will have to apply digitally for farm payments from 2015, they will be grossly disadvantaged. Will the Government please make it a top priority to ensure that those who have the weakest coverage will be fast-tracked to superfast broadband?
Mr Vaizey
We certainly will. NYnet is one of our most effective programmes and I praise the county council for its effective work. We have already passed 120,000 premises under this programme. We will have reached 170,000 by next spring and we have allocated further millions to take coverage even further.
Mr Dennis Skinner (Bolsover) (Lab)
The EU is a very big area, but Bridle road in Stanfree in Bolsover is relatively small. They told me to ask the appropriate Minister to sort out the broadband that they have been messing about with for four years in that Bridle road, Stanfree area. They must have a letter—get it sorted.
Mr David Heath (Somerton and Frome) (LD)
I am tempted to just say to the Minister, “Somerset—get it sorted.” The good news is that two more communities in my constituency—Fivehead and Milborne Port—will be connected over the next few months, but there are a lot of villages in exactly the position described by the hon. Member for Thirsk and Malton (Miss McIntosh) that will not be connected. Does the Minister recognise how critical Somerset’s bid to the superfast extension fund is in filling in some of those gaps and getting broadband to the rural areas that desperately need it?
Mr Vaizey
Yes, I do. The whole point of all the completely justified questions that have been asked is that people want broadband. That is why we are putting £1.2 billion into rolling out rural broadband and why total funding of something like £70 million from BT, European funding and Broadband Delivery UK is going into connecting Devon and Somerset. More than 250,000 premises are planned to be networked and we have allocated a provisional £22 million for the next phase.
Julie Hilling (Bolton West) (Lab)
This issue is not just a rural problem. At my recent business event, companies told me how lack of access to fast broadband is seriously hampering their businesses. How will the Minister ensure that areas on the edge of major urban centres also get superfast broadband?
Mr Vaizey
The whole point of the rural broadband programme is to help the areas she speaks about. Local councils are in charge of the roll-out, so they should know best where the money should go first for the most impact. As I say, we have had phase 1 to get to 90%; we now have phase 2 to get to 95%; and the money we have allocated for new technologies will give us the figure we need to get to 100%.
Mr David Nuttall (Bury North) (Con)
In some cases, the only way to improve broadband speeds is to install a new cabinet. Will my hon. Friend confirm that the cost of such installation is within the scope of the Government’s assistance scheme?
Sir Peter Luff (Mid Worcestershire) (Con)
9. What steps he is taking to ensure that Commonwealth countries are included in the commemorative events planned for the first world war centenary.
Robert Jenrick (Newark) (Con)
11. What steps his Department is taking to encourage (a) national collections and (b) the royal collection to loan works of art to regional museums and galleries.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
First, may I welcome my hon. Friend to the Chamber? This is the first opportunity I have had the chance to welcome him to the House.
In 2012-13, national museums sponsored by the Department for Culture, Media and Sport lent objects to more than 1,500 museums around the country through touring exhibitions, star object loans, loans of local significance and long-term loans.
Robert Jenrick
Regional museums would benefit from a much more active programme of loans from national museums, which are sitting on hundreds of thousands if not millions of works of art that are rarely if ever seen by the general public. The Secretary of State recently viewed the site of the new Newark national civil war museum, which is a perfect example of a regional museum that would benefit from active loans from national institutions. What can the Department do to encourage national museums to review their civil war collections and to loan them to our museum in Newark?
Mr Vaizey
I know for a fact that the Secretary of State thoroughly enjoyed his visit to the new National Civil War centre, which was awarded a grant by the Heritage Lottery Fund of £3.5 million in 2012, and we look forward to its opening next year. I am certainly happy to meet my hon. Friend to discuss what we can do to encourage loans of civil war objects from national museums, but it is important for the House to remember that national museums are of course independent and do not simply do what the Government tell them.
Guto Bebb (Aberconwy) (Con)
12. What assessment he has made of the success of the broadband roll-out programme in Wales and that programme’s effect on the tourism industry in Wales.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
Independent research estimates that the Government’s investment will generate £20 for every £1 by 2024. Wales has received almost £70 million from the UK Government for the roll-out of superfast broadband. We are confident that this will benefit the Welsh tourist industry, as well as the Welsh economy more generally.
Guto Bebb
My hon. Friend will be aware that I consider his Department’s decision to allocate funding for rural broadband to the Welsh Government to be a mistake. A total of £120 million has now been allocated from taxpayer funds for the roll-out of broadband in rural Wales, yet my constituents and businesses in the tourist sector in my constituency are no nearer to getting any answers from the Welsh Government about when and where they will have roll-outs. Does my hon. Friend agree that transparency is crucial when £120 million of taxpayer funding is being spent?
Mr Vaizey
It is important that roll-out is as transparent as possible—people need to know when broadband is coming to their area. More than 160,000 premises have been passed but I am sure that Opposition Members will have a word with their Labour colleagues in Wales to encourage them to be more transparent with my hon. Friend.
Hugh Bayley (York Central) (Lab)
13. What long-term cycling legacy he expects from the Tour de France Grand Départ in Yorkshire.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
T2. Given BT’s virtual monopoly in contracts for superfast broadband and the problems with that company that have been raised by hon. Members today and previously, is it not about time that the Government held an inquiry into its performance, or would that be better done by the competition authorities?
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
The National Audit Office conducted an inquiry. I am confident that BT is doing its job incredibly effectively. We are passing a total of 20,000 premises a week with broadband, and that figure will soon be up to 40,000 a week. More than £60 million has been allocated to Lancashire and more than 130,000 homes there will get superfast broadband as a result.
Ms Harriet Harman (Camberwell and Peckham) (Lab)
The evidence before the Leveson inquiry laid bare the pain and suffering caused to victims of press abuse. The press felt they could act with impunity as there was no proper complaints system, and all parties in both Houses agreed to a new system of independent self-regulation for the press. Will the Secretary of State join me in welcoming the appointment of David Wolfe as chair of the recognition board for the new press complaints system? Does he agree that the rest of the board should be appointed as soon as possible, and will he join me in encouraging the press to establish and put forward for recognition a Leveson-compliant, independent regulator so that there is an effective complaints system that is independent of both politicians and the press?
Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)
T4. Will the Minister join me in congratulating the excellent Tyne and Wear Archives and Museums and other arts organisations based in Newcastle upon Tyne on their successful Arts Council bids? In doing so, will he acknowledge that there is still a problem with the disproportionate amount of private sector arts funding—the figure is 82%—that is drawn into the capital and not to the regions of England, and consider the remedy that is set out in “Rebalancing Our Cultural Capital”? If he has not read that report, I commend it to him.
Mr Vaizey
I am very happy to join the right hon. Gentleman in congratulating Tyne and Wear Archives and Museums—it is a fantastic place that I have visited on at least one occasion. I am pleased that following the Arts Council settlement the balance between London and the regions has shifted in favour of the regions. As he knows, I believe that every arts organisation around the country is capable of raising private funding and should be doing so.
Iain Stewart (Milton Keynes South) (Con)
T5. I thank the Minister for the assistance that he and Ofcom have given the community radio station in my constituency, MKFM, in its bid for a permanent FM licence. Will he assure me that he will continue to do all he can to assist such community radio stations to expand the vital service they provide to local communities?
Andrew Gwynne (Denton and Reddish) (Lab)
T6. Ministers will know that cyber-bullying is a growing problem, particularly among teenagers, but the offences fall, confusingly, between five different Acts. Is it not time for Ministers to talk to their colleagues in other Departments to bring about a specific offence of cyber-bullying that mirrors the offence of harassment in the real world?
Mr Vaizey
I hear what the hon. Gentleman says. I work closely with the Minister for Policing, Criminal Justice and Victims and the Under-Secretary of State for Education, my hon. Friend the Member for Crewe and Nantwich (Mr Timpson), on the UK Council for Child Internet Safety. I am sure that the hon. Gentleman’s representations have been heard and they will be considered in the usual way.
Mr Philip Hollobone (Kettering) (Con)
T9. Will the libraries Minister join me in congratulating Northamptonshire county council’s library and information service on being named the best council services team at this year’s Municipal Journal awards? Whereas other local authorities are closing libraries and cutting opening times, the Conservative council in Northamptonshire is extending opening to seven days a week and extending the range of services on offer, and has recruited more than 600 library volunteers.
Keith Vaz (Leicester East) (Lab)
T7. I congratulate the Minister for creative industries on his outstanding work in encouraging international film makers, especially from Bollywood, to come and make their films in the United Kingdom. Does he agree that it is important that that helps with jobs, growth and the diversity of UK film making?
Mr Vaizey
I am very pleased to have that question from the right hon. Gentleman. Although we obviously welcome investment from the west coast of America, particularly yesterday’s announcement by Warner Bros. that it will be filming J. K. Rowling’s “Fantastic Beasts”, it is important to remember that Bollywood is bigger than Hollywood, and we need also to encourage Indian film makers to make films in this country with our excellent crew and casts.
Neil Carmichael (Stroud) (Con)
T10. To reinforce points already made this morning, what assurance can the Minister give my constituents in Stroud valleys and vale that they will have access to broadband so that their businesses and lifestyles can thrive?
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
T8. The theme of much of this morning’s exchanges has been broadband and mobile coverage. Will the Minister meet me and other interested rural and island Members of Parliament to discuss how proper 4G coverage on a Swedish or Finnish model may help the aims of comprehensive mobile and fast broadband coverage in the years to come?
Mr Vaizey
Broadband is going extremely well in the UK, mainly because we are better together. We are working with Scotland and Wales to roll out broadband and 4G coverage. The hon. Gentleman should not be so modest: we have outstripped a lot of the Scandinavian countries. We have just laid 400 km of undersea cable to the highlands and islands. That could not have been done without the UK Government working with the devolved Government to bring broadband to our rural areas. We are better together.
Sir Bob Russell (Colchester) (LD)
Tourism is a major economic generator in Colchester. Does the Minister agree that the best way to support tourism is by reducing VAT on tourism to 5%? Will he have a chat with the Chancellor, please?
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The Minister will no doubt be aware that Northern Stage’s excellent adaptation of Joseph Heller’s “Catch-22” closed at the weekend at Richmond, following a successful nationwide run. What is the Minister doing to ensure that regions outside the north-east benefit from the excellent cultural talent that we produce?
Mr Vaizey
The latest round of Arts Council funding has pushed more money out to the regions, and I am particularly pleased about the new £15 million fund it has set up specifically to support talent outside London, and to keep people outside London working in our regional theatres and doing innovative work.
Peter Aldous (Waveney) (Con)
There is concern that the Government’s approach to allocating funding for the superfast broadband extension programme will leave most rural areas at a disadvantage. What help and assurances will the Minister give to constituents in the villages of Rumburgh, St James and Ringsfield that they will not be penalised?
Mr Vaizey
The principle behind the programme is that we allocate funding in order to get to 95% coverage. We expect local authorities to match that, and we will then work with them to target the areas where it is needed most. I am happy to meet my hon. Friend to discuss the best way forward.
Oral Answers to Questions
Lord Vaizey of Didcot Excerpts(10 years ago)
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Michael Connarty (Linlithgow and East Falkirk) (Lab)
11. What recent discussions he has had with Digital UK and Ofcom on the re-allocation of the television spectrum to be vacated by BBC Three.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
The BBC Trust is currently considering the proposal to stop broadcasting BBC Three. I have not yet discussed what may happen to BBC Three’s Freeview channel number with either Digital UK or Ofcom.
Michael Connarty
I know that the Minister is very conscious of the concern felt by people in Scotland about Scottish Television’s proposals to introduce local television. Is it not a problem—I have spoken to Ofcom about this—that the BBC seems to think that it can keep the BBC Three channel and invent BBC One plus one, even though it is currently failing to use the channel properly? Is it not important for the BBC not to have a monopoly, and for the channel to be available to other public broadcasters?
Mr Vaizey
I know that the hon. Gentleman met Ofcom this week, and that he has raised this subject in the House and led a debate on it. The BBC Trust will make the final decision on whether the BBC Three channel should go to an online service, but I understand that Digital UK will allocate the channel in the normal way, taking account of the due prominence rules in the public service broadcasting guidelines. However, I have noted the hon. Gentleman’s point, and will follow it up.
Martin Vickers (Cleethorpes) (Con)
It is two years since Digital UK completed the changeover from analogue and a large number of households were persuaded to buy Freeview boxes. There have been reports that Freeview is now under threat. Given that many households in my constituency rely on it rather than on cable and satellite, which are more expensive, can the Minister assure them that Freeview will continue?
Graham Jones (Hyndburn) (Lab)
13. What recent discussions he has had with gambling addiction charities on funding for research into fixed odds betting terminals.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
Commercial radio is vitally important both locally and nationally. Some 35 million people listen to commercial radio every week, and UK radio revenues continue to increase. We have seen the launch of the first national talk radio station, LBC, and digital radio is vital to commercial radio’s future. I know that the Secretary of State is keen to meet commercial radio operators as soon as possible.
Ms Harriet Harman (Camberwell and Peckham) (Lab)
I add my congratulations to the right hon. Member for Bromsgrove (Sajid Javid) on his promotion. His elevation to a seat at the Cabinet table sends out a strong signal that in this country, our politics must be for people from all communities, all ethnicities and all walks of life, and I wish him well in his job.
As the right hon. Gentleman takes over leadership of this important Department, we will be urging him to fight hard for the arts and to promote the crucial role that the BBC plays in the cultural life of this country. I want to ask him about young people and music. Creativity is being squeezed out of the curriculum; fewer pupils are taking music at GCSE and A-level; music services have been cut by almost 30%; and now the Department for Education wants to cut a further 12% of music resources available to schools through the education services grant. Will he intervene with the Education Secretary and make the case for music in schools?
Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
T4. Mobile phone coverage in parts of Wales is as bad as coverage in places in Africa, Kazakhstan and the Alps. Does the Minister have a view on when we can expect a 20th-century service in Wales, let alone a 21st-century one?
Mr Vaizey
I am pleased to say that a 21st-century service is well on its way. We have the greatest roll-out of 4G technology anywhere in the world and the major mobile providers will complete their 4G mobile coverage two years ahead of schedule. We will then take a look at how effective that is and we will continue to work with mobile operators to improve mobile coverage.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
T3. What is the Government’s current position on net neutrality, particularly given recent discussions and decisions in both Europe and the United States?
Mr Vaizey
I like to think that we were ahead of the curve in putting together a code of conduct, to which the major internet service providers and mobile phone companies have subscribed, under which they agreed that they would not block traffic for anti-competitive reasons. Obviously, we are carefully examining the telecoms package that the European Commission has proposed, which includes a potential regulation on net neutrality.
Pauline Latham (Mid Derbyshire) (Con)
T5. Between 18 April and 31 May, Belper, a town in my constituency, is holding its annual arts festival, throughout which 179 events in 99 different venues will be drawing in the region of 16,000 visitors to the local area. Will the Minister join me in congratulating Belper, led by volunteer George Gunby, and other towns and villages that are holding similar events? What is the Minister doing to support such initiatives?
Mr Vaizey
I congratulate my hon. Friend on the amazing work she does to promote Derbyshire in this House, She has so effectively led the Derbyshire embassy, which I was delighted to attend. The Belper arts festival is putting together a fantastic and enticing programme. I am also pleased to see that the Arts Council is supporting the Red Earth theatre in Belper, the Buxton arts festival and the Wirksworth festival in Derbyshire.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
T7. I am sorry that the sports Minister, the hon. Member for Maidstone and The Weald (Mrs Grant) and indeed the Secretary of State were not able to attend the all-party group on basketball event yesterday on Speaker’s Green, where Opposition Members were able to out-dunk Government Members by 56 to 33. The Minister will, however, be aware of the deep concern across the House about the future of our national basketball teams after UK Sport withdraw all their elite-level funding. What consideration has she given to providing elite-level development funding for accessible team sports such as basketball which fall foul of the no-compromise model of UK sport?
Julie Hilling (Bolton West) (Lab)
Lowton girls group came to talk to me about its concerns that music videos portraying sex and violence are being watched by children and young people. Why will the Government not legislate for age ratings for music videos online?
Mr Vaizey
Parents tell us that they want age ratings on music videos that are unsuitable for younger children. We consulted on legislation to introduce the British Board of Film Classification age ratings for music DVDs. We will introduce legislation to Parliament within the coming months, and we will bring into force new age rating requirements as soon as possible. I am also working with the music industry to get age ratings for online music videos as well.
Mr Tobias Ellwood (Bournemouth East) (Con)
T8. I join others in welcoming my right hon. Friend the Secretary of State to his new position and invite him to visit Bournemouth, the UK’s premier seaside resort, at the end of this month when it is organising its first free wheels festival, which will include historic classic cars, monster trucks and supercar demonstrations on the sea front. Does that not illustrate how the experience offered to visitors is just as important as good accommodation and a picturesque location?
Diana Johnson (Kingston upon Hull North) (Lab)
People whose homes and businesses were recently flooded will know, as we did in Hull in 2007, of the benefit of having local BBC radio stations. Those radio stations are often seen as the extra emergency service in times of crisis. Will the Minister confirm that, in any future negotiations on funding for the BBC, protection is given to local radio services?
Mr Vaizey
Absolutely. I echo what the hon. Lady says. During the severe floods in Oxfordshire in 2007, BBC Radio Oxford certainly played an invaluable role. I can assure her that the value of all BBC services, including local and regional services, will be considered as part of the review of the BBC’s charter. We have not yet announced the timing, scope and process of the charter review, so it would be premature of me to say anything further at this point.
Neil Parish (Tiverton and Honiton) (Con)
May I also add my congratulations to the Secretary of State on his appointment? The Blackdown hills and villages such as Upottery, Clayhidon and Rousdon are finding it difficult to get broadband. We welcome the Government’s money, but BT is finding things difficult and there is secrecy about where the broadband will be delivered throughout the constituency. Will the Secretary of State meet me and local representatives to discuss the way in which we can roll out this broadband in a much better way?
Mr Vaizey
Absolutely. It is important to point out that the progress of rural broadband is really picking up pace, with 20,000 homes passed every week, but we must get out the information to local residents. I am sure that the Secretary of State will meet my hon. Friend at the earliest opportunity to discuss his points.
Ian Lavery (Wansbeck) (Lab)
When imposing the changes to the betting and gaming industry, did the Government consider conducting an impact assessment on the potential job losses? Before yesterday, William Hill had already announced 109 betting shop closures, with the loss of 420 jobs, which mainly affect young women between the ages of 18 and 24.
Mix 96 (Digital Radio Switchover)
Lord Vaizey of Didcot Excerpts(10 years, 5 months ago)
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Sarah Newton (Truro and Falmouth) (Con)
My hon. Friend is making an excellent case. She is right that many of our colleagues would like to be here to contribute but cannot because they are driving to their constituencies. Does she agree that it would be great if the Minister could agree to meet a wider group of colleagues who would like to stick up for stations such as—
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
Name your station!
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
I am grateful for the chance to respond to my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan). It is good to see you in the Chair, Mr Speaker, given your strong interest in Mix 96, and as we are debating a digital subject, I hope you will not take it amiss if I say how brilliant your speech was yesterday to the Hansard Society in your approach to digital politics in the 21st century. I also welcome to the Front Bench the Minister for Europe, my right hon. Friend the Member for Aylesbury (Mr Lidington), who also represents Mix 96. Sadly, he must remain silent, but I suspect, were he able to speak, he would echo many of the views of my right hon. Friend the Member for Chesham and Amersham.
I thank others who have contributed: my hon. Friend the Member for York Outer (Julian Sturdy),representing Minster FM; my hon. Friend the Member for North West Norfolk (Mr Bellingham), representing KLFM; my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton), representing Splash FM; my hon. Friend the Member for Truro and Falmouth (Sarah Newton), representing Pirate FM; the hon. Member for Washington and Sunderland West (Mrs Hodgson), representing Sun FM; my hon. Friend the Member for High Peak (Andrew Bingham), representing High Peak radio; my hon. Friend the Member for Milton Keynes South (Iain Stewart), representing MKFM; and my hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw), representing The Bay and Radio Wave; and me, representing Jack FM.
I am delighted to be here talking about this subject. Whenever we debate local newspapers, hon. Members get a chance to plug theirs, and I suspect that this debate will be played on local radio stations up and down the land. I think, however, that my right hon. Friend slightly missed a trick. I thought she was going to suggest that we scrap High Speed 2 and spend all the money on rolling out digital radio, but I am pleased—
Mrs Gillan
I encourage the Minister for Europe, my right hon. Friend the Member for Aylesbury (Mr Lidington), not to remain silent on the subject of HS2, but to inform the Minister of our views in Buckinghamshire about that particular project. Nevertheless, I thank my hon. Friend for his courtesy and for taking this matter very seriously, because these radio stations are close to all our hearts.
Tracey Crouch (Chatham and Aylesford) (Con)
The Minister briefly mentioned local newspapers, and I would like to add that KMFM, run by the Kent Messenger Group, is incredibly concerned about these proposals, not least with its relationships with advertisers and commercial interests being as difficult as they are.
Mr Vaizey
The point is taken.
I take this issue very seriously, being a passionate radio listener myself. We have 1 billion hours of radio listening a week, and it was clear to me when I became Minister that people took their radio listening very seriously; they are passionate about it. The last Government left us with an intent to get to radio switchover, but no plan to reach it. The key criterion was that digital radio’s share of the listening figures should be at least 50% before we set out the timetable for switchover. I made it clear in my first speech on this subject as Minister that I would be led by the consumer, and that is what I mean when I say I agree with the critique of digital radio by my right hon. Friend the Member for Chesham and Amersham. I will do nothing on switchover unless I am bringing radio listeners with me.
To get to a stage where we can consider switchover, we have put together a digital radio action plan, ably led by Digital Radio UK and its superb chief executive, Ford Ennals, and his team, including, in particular, Jane Ostler and Laurence Harrison. Substantial progress has been made. I note what my right hon. Friend said about wanting not to scrap digital radio, but to support its roll-out, while also securing a future for local radio stations. I will come to local radio in a moment, but first I will update her on our progress.
We have taken local radio coverage, be it for local BBC stations or commercial stations, to about 72% and national coverage—effectively BBC radio stations 1 to 5—up to 94%, and this year we launched commercial radio digital services in Northern Ireland. Furthermore, roughly half of all new cars, which are vital to this, have digital installed as standard, and in the last year almost 900,000 cars sold had digital radio in them.
This is a good news story for the UK economy, too. We account for about 50% of the global digital radio market. That means real opportunities for British businesses such as Roberts, Revo and Pure—in Kings Langley, not far from my right hon. Friend’s constituency.
It is worth pointing out that we are not alone, and the Minister for Europe will take an interest in what I have to say. Norway and Denmark have already set dates for switchover—2017 and 2019 respectively—and there has been more progress following the launch of national digital services in Germany in 2011 and the Netherlands this year, which has a target switchover date of 2023. Other European markets, including Italy, France, Poland, Sweden, Austria and the Czech Republic are also looking into it. Digital radio is now reaching the Asia Pacific region, where Australia is taking a lead and DAB penetration has already reached 16%.
Andrew Bingham
As chairman of the all-party group on commercial radio, I am greatly interested in this debate and to hear about digital radio being extended to all the good burghers of Europe, but I would like to make a plea to have it in High Peak, which has very little in the way of a digital radio signal at all.
Mr Vaizey
That brings me neatly on to my next point. I am due to make a major speech about the future of digital radio in the middle of December, when I hope to address particular concerns about coverage. Let me repeat, however, that when it comes to the timetable and the setting of dates, we have always been clear that these will be led by the radio listener. There will be no switchover until the majority of listening is digital. It is clear that we are not there yet, and it will certainly not happen within the time frame that concerns my right hon. Friend. While good progress has been made, with the number of adults with access to a DAB digital radio up 10% year on year and places like London reaching 40%, we need to make more progress.
Let me deal with what my right hon. Friend said about Mix 96 and what other hon. Members have said about their own local commercial and community stations. I am a huge fan of local commercial and community radio. In fact, community radio was brought into being by the last Government; I think it has been a massive success story, as are independent local radio stations. Ofcom’s research shows that local radio still holds value for listeners: it is important and valued. Although some measures have allowed greater networking between local radio stations, we still require local programming both at peak time and outside it. Mix 96 is part of the larger radio group. In fact, it is listed as one of the100 best companies to work for by The Sunday Times. Its concerns are well known to us, and they come not just from UKRD, but from UTV and others.
As for securing a digital future for local commercial and community stations, let me first make it clear that we have never said that we require small stations to go over to digital. We have always said that if and when there is a switchover, we would maintain their presence on FM. It is also true that FM can work in tandem with DAB, as AM has with FM for many years. Many of the manufacturers of DAB radios have agreed a minimum specification, which includes FM. However, I take on board the point—I think it was made by my hon. Friend the Member for High Peak (Andrew Bingham), who talked about remote-controlled radios—that even where we have an FM-DAB station, switching between FM and DAB can be complicated. We are going to see more sets that switch seamlessly as the FM and DAB buttons are pressed, but that does not mean that we do not have to look for a potential solution for local commercial radio to get on to DAB at a cost it can afford.
Mrs Hodgson
The Minister mentioned that about 50% of new cars have DAB digital radios fitted as standard. Is he aware, however, that the figure for cars currently on the road is only about 5%? Irrespective of whether the facility for switching between DAB and FM happens, it would not help any of the cars currently on the road.
Mr Vaizey
I totally understand the hon. Lady’s point. First, as the timetable moves towards full coverage of digital radio, we will see what is known as the car park being refreshed over a number of years. It is also the case that the ability to convert an FM radio in a car with a digital converter is becoming much easier and cheaper. Technology will have a solution, but I take her point.
Let me say something about the business of transferring community and local commercial radio to DAB. I said to my officials, and to Ofcom, that I wanted to find a cost-effective route to digital broadcasting for our local stations. Ofcom has made progress—to which my right hon. Friend alluded, although she rightly pointed out that this was an early initiative and that more work needed to be done. It has developed a new approach to small-scale, low-power digital transmission, using open-source software which makes it possible to get on to the local multiplex using an existing FM antenna. That approach was developed initially by Rashid Mustapha, an engineer working at Ofcom, and it must be a brilliant solution, because I do not normally have an opportunity to name people who work at Ofcom during a debate. It has been tested in Brighton with the support of Daniel Nathan of Juice FM. The initial results are promising, and I hope that smaller stations that are enthusiastic about digital will get behind the work.
Mrs Gillan
As the Minister knows, we now use new technology even in the Chamber. I have just received a tweet which says:
“Please mention community radio who have no chance of affording digital transmission costs…never mind the listener.”
Perhaps the Minister could take up that point.
Mr Vaizey
This is almost unheard of, but I have left my mobile phone in my office, so I have not been able to keep up with those who have been tweeting on the debate. However, I advise the tweeter who tweeted to use a piece of old technology called the ear to listen to what I have to say.
I have already mentioned community radio about eight times today. I have said again and again that I am a fan of both community and local independent commercial radio. It is incredibly difficult to run a successful local independent radio station. The people who run them are not rolling in money, or printing money; even those who run local commercial stations are almost running a community service. I met a man who runs one of those stations in Manchester, and he said that he found it tough going. I recently visited a community radio station in Swindon, which is supported by hundreds of volunteers and which makes a huge and vital contribution to the community there. I give equal weight to community radio and local commercial radio in my search for a solution.The key is the FM antenna, which those radio stations will have because they broadcast on FM, along with the ability to use software to convert it to a digital antenna.
I have taken the debate at a gallop because I was not sure whether I would have enough time both to get my jokes in and to respond to the points made by my right hon. Friend. Let me now take up the offer from my hon. Friend the Member for Truro and Falmouth. If the meeting that she proposes will be as good-natured and well informed as this debate, I relish the prospect. We might even find time to meet—along with Members in all parts of the House, I should add—on a Friday, when the House is debating European matters.
I am a fan of digital radio, and I think that it is the future, but my criteria have always been about coverage. We want digital radio to have the same coverage as FM. This is about the consumer, otherwise known as the radio listener. I want to bring the listeners with us, so that they will effectively have converted themselves to digital radio. That means cheap digital radios, which are now on the market. It means cheap car conversions, which are becoming cheaper all the time. It means digital radios being fitted as standard in new cars. It means good content, like that of Radio 6 Music, the first digital radio station to reach more than 1 million listeners. Those are our criteria.
We will not be pushed into a switchover date; we will not get ahead of the radio listener; and we will continue to listen to well-informed, passionate colleagues such as my right hon. Friend, to whom I am grateful for calling this excellent debate.
Question put and agreed to.
Amendment of the Law
Lord Vaizey of Didcot Excerpts(12 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (Mr Edward Vaizey)
Your instructions have been noted, Mr Deputy Speaker.
May I begin by apologising to the House for the absence of my right hon. Friend the Secretary of State? As I am sure the House will know by now, his wife gave birth to a beautiful baby girl last week—appropriately enough, during Department for Culture, Media and Sport questions—and so he is enjoying his paternity leave. I am sure that the whole House will want to join me in passing on our good wishes to the whole family. I, for one, wish that the Secretary of State was here, because this is, I believe, the first time that DCMS, as a Department, has opened a Budget debate, and it is a testament to his skill and vision that he has put the Department at the heart of the Government’s strategy for growth. DCMS is now an important economic Department that is responsible for broadband and digital infrastructure, internet and media policy, and our world-beating creative industries. Policies pursued by this Department will contribute significantly to the growth of the UK economy.
I want to use today’s debate to remind the House of how well placed this country is to take advantage of the technology revolution. The Chancellor has set out our ambition to turn Britain into Europe’s leading technology hub, and we are well on course to achieving that. According to a Boston Consulting Group report published this month, the UK is the top internet economy in the G20; we purchase more online than Germany, the United States and South Korea. We have a huge range of successful technology companies in this country. It is worth reminding the House that BT, for example, is a global technology company with a presence in 170 countries. ARM supplies the chips for smartphones and tablets. Imagination Technology provides the graphics for Apple products. Ubiquisys in Swindon sells femtocells to the French and the Japanese. Neul, based in Cambridge, is developing new wireless network technology. In Tech City, we have a rapidly growing technology hub in the heart of London’s east end, which in just three years has grown from about 15 companies to more than 300.
My personal favourite is the motor sport industry, which is worth £5 billion a year and exports 70% of its products. I was particularly tickled by an anecdote—[Interruption.] I cannot believe that Opposition Members are groaning at an anecdote. I feel rather deflated. When a German Formula 1 company launched its German engine, branded by Mercedes-Benz, with Michael Schumacher, a German driver, I was told that it was designed and manufactured in the UK. [Hon. Members: “Hear, hear!”] I thank Government Members for approving of my anecdote.
Andrea Leadsom (South Northamptonshire) (Con)
I am delighted about that, because it was made in my constituency.
Mr Vaizey
Is it not a wonderful coincidence that I also get to suck up to one of the most important Back Benchers in the House?
Next week, a BDO report will say that telecoms, media and technology industries will be the success stories of 2012 in the UK, with software investment growing and investment last year at an all-time high. Innovations such as cloud computing are set to create more than 200,000 jobs in the UK in the next three years.
Tristram Hunt (Stoke-on-Trent Central) (Lab)
Is it because the Department for Culture, Media and Sport is no longer interested in art and culture that it has purged Dame Liz Forgan from the Arts Council?
Mr Vaizey
That gives me a chance to respond to one of the Labour party’s most important Back Benchers. If he thinks that we are not interested in art and culture, why is he never out of my office talking about art and culture and, in particular, our joint campaign to save the Wedgwood collection?
To support technology and innovation businesses we have protected the science budget and are funding new science capital projects, including £158 million for e-infrastructure. The total increase in capital funding since December 2010 is £495 million. I feel that point keenly because tomorrow is the 10th anniversary of the agreement between the previous Labour Government and the Wellcome Trust to build and site the Diamond synchrotron in my constituency. I must say, in a moment of cross-party unanimity, that the last Labour Government had two of the finest science Ministers we have seen in Lord Sainsbury of Turville and Lord Drayson. We have, of course, gone one better by appointing our own Minister for Universities and Science, who has two brains.
We will have increased the level of the small company research and development tax credit from 175% to 225% by April 2012. That is the largest programme of support for business innovation in the UK and will provide support of more than £1 billion a year. We have made it more attractive to invest in smaller high-risk companies by raising the tax relief available under the enterprise investment scheme. We have established 24 enterprise zones throughout England. We have introduced catapult centres, which will form a new elite national network to act as a bridge between academia and business. They will cover sectors such as high-value manufacturing, cell therapy and offshore renewable energy. The Technology Strategy Board is investing at least £200 million in the current spending review period to make that happen.
We need to build on that success and I am pleased to say that the Budget maintains the momentum. We are cutting taxes on patents through a 10% patent box corporation tax worth some £900 million, which will be introduced next year and phased in. We are extending enterprise zones to Scotland, Northern Ireland and Wales. We are investing £100 million, which will leverage a further £200 million, in new university research facilities. We are introducing transport systems and future cities catapult centres. In a country with the world’s second largest aerospace industry, we have announced an investment of £60 million in a new aerodynamics centre to encourage innovation in aerospace design and the commercialisation of new ideas. Those measures will ensure that our world-leading universities and innovative small businesses can come together with global companies to commercialise new technologies, ideas and inventions in a wide variety of sectors.
Ian Lucas (Wrexham) (Lab)
Will the hon. Gentleman tell the House where the aerodynamics centre is to be based?
Mr Vaizey
Oh, it was the Budget book. It looked like an iPad cover. Forgive me; I keep mistaking the hon. Gentleman for somebody who is on top of new technology. We have not yet decided where the aviation centre will be sited, and it may not even be in one place. It may be sited in two or three different areas.
To become Europe’s technology hub, we need world-leading digital infrastructure. The average broadband speed in the UK is already 7.5 megabits a second. In Northern Ireland, almost all the population have superfast broadband, and in England almost two thirds of the population do. In England, Northern Ireland and Wales, roughly three quarters of the population now have broadband. UK broadband coverage is in fact almost universal, with 91% of the country having access to speeds above 2 megabits a second, putting us in the top 20 countries worldwide. We are far ahead of many countries, including Morocco, where only one in 10 of the population have access to fixed-line broadband.
We have come a long way, but we need to go further. We are already investing £530 million in rural broadband, which will deliver superfast broadband to 90% of the country by 2015, two years earlier than Labour planned. More than half of our local broadband projects have been approved, and all will be approved by the end of this year. Procurement for some projects will proceed in the next few months.
Mrs Anne McGuire (Stirling) (Lab)
Would the Minister like to come to the village of Balquhidder in my constituency and tell people that they might be better off living in Morocco? I see that the Chief Secretary is trying to tell him where Balquhidder is. In that village people still have dial-up, not even slow broadband, never mind fast or superfast broadband.
Mr Vaizey
First, that is why we are spending the money that we are, and secondly, we are working in partnership with the Scottish Government, so the right hon. Lady should have a word with them if she wants to put her constituency at the forefront of broadband roll-out in Scotland.
We will have provided universal coverage by 2015 without Labour’s telephone tax, which in any event would not have raised sufficient money to do the job. Not only do we have the most ambitious rural broadband programme, but the Chancellor announced in the Budget new measures to upgrade the coverage in our cities. The UK’s four capitals, Manchester, Birmingham, Bristol, Newcastle, Leeds and Bradford will share a £100 million pot to ensure that they are among the best-connected cities in the world.
Jim Dowd (Lewisham West and Penge) (Lab)
On that subject, will the Minister have a word with the London borough of Bromley—it is allegedly in London, although it is not—which is obstructing the implementation of superfast broadband simply because it is an out-of-London, Tory-controlled borough that does not know any better? Will he exhort it to wake up to the idea of tomorrow rather than living in yesterday as it always does?
Mr Vaizey
Without adopting the hon. Gentleman’s language—I would certainly never describe Bromley or its council as out of touch or living in the past—I accept that he makes an important point that is worth labouring. It is vital that local authorities work with broadband providers to ensure the roll-out of broadband, and we are providing the money and working with local councils. We understand why planning regulations are in place, but if they are used in a way that restricts broadband roll-out, councils will be denying their residents the opportunity to access a very important service. It is vital that local councils take a proactive approach and ask not how to apply the planning rules but how to make it as easy as possible to get broadband to as many of their residents as possible.
Bob Blackman (Harrow East) (Con)
Will the Minister elucidate further on the benefits to the whole of London of the roll-out of ultrafast broadband, which will happen much faster as a result of the new initiatives in the Budget?
Mr Vaizey
Ultrafast broadband will of course benefit London, and across the 10 cities that I mentioned, the Chancellor’s Budget means that 40,000 businesses and 200,000 households will get ultrafast broadband. London is also getting it through private sector providers, to which I will turn in a moment. It is also worth noting that Virgin Media will provide free wi-fi on the London underground during the Olympic games. Some 3 million people will be able to get access to high-speed wi-fi in the 10 best-connected cities. The Chancellor also announced in the Budget an additional £50 million, which will be available to ensure that ultrafast speeds are available to the UK’s smaller cities.
I said in reply to my hon. Friend that the private sector is doing a huge amount to speed broadband roll-out. I can announce that this week, Virgin Media, after £110 million of additional investment—investment over and above the £600 million it invests every year—will complete the upgrade of its network, so all 13 million premises covered by it, which is about half the premises in the UK, will be able to access speeds of up to 100 megabits a second. Average speeds are set to be around 40 megabits a second, which makes Virgin Media’s broadband network the fastest in the world. [Interruption.] From a sedentary position, an hon. Lady accuses Virgin Media of bribing me to say that. I am not sure she will say that outside the Chamber.
Ian Lucas
Virgin broadband is not available in north Wales. The problem, as the Minister will hear from Government Back Benchers, is access to universal broadband, which the Government delayed from 2012 to 2015. What will he do about increasing services to ensure that we have universal broadband, the absence of which is preventing businesses from making progress in large parts of the country?
Mr Vaizey
I first need to get the hon. Gentleman an iPad—[Interruption.] He has one. At last he has an iPad! We have given £10 million to north Wales to put in place superfast broadband. As he well knows, we will get superfast broadband to 90% of the country two years before the Labour Government promised. We are not going to impose Labour’s telephone tax, which would have hit consumers and businesses. We will have the best superfast broadband in Europe by 2015—[Interruption.] My colleagues are saying from sedentary positions that that sounds excellent; it is excellent.
Having praised Virgin Media, let me also say that BT is investing £2.5 billion in rolling out broadband. Indeed, it has accelerated its plans so that it will deliver fibre to two thirds of the UK by 2014, a year ahead of schedule. It has already delivered to 7 million premises, and is currently adding an additional 1 million premises—the equivalent of the number in Singapore—every three months.
Alun Cairns (Vale of Glamorgan) (Con)
Following the point made by the hon. Member for Wrexham (Ian Lucas), does my hon. Friend the Minister recognise the added complication because of the delays that the Welsh Government have introduced in the roll-out of superfast broadband, despite the money being made available swiftly by the UK Government?
Mr Vaizey
My hon. Friend makes a very good point. Because we believe in devolution and localism, the implementation of the plans is down to the Welsh and Scottish Governments. It is therefore up to them to roll them out as quickly as possible. I am sure the hon. Member for Wrexham (Ian Lucas) will send an e-mail from his iPad to the leader of the Welsh Assembly Government to tell him to pull his finger out.
Ten million premises will be covered by BT by the end of the year in one of the largest engineering projects the country has ever seen. Those areas will get speeds of up to 80 megabits a second.
Mobile broadband is becoming increasingly important, with more people purchasing smartphones. Last year, the Chancellor announced an additional £150 million to help with mobile broadband coverage. By 2015, that will extend mobile coverage to 60,000 rural homes that have no mobile connection whatever, including, perhaps, villages in the constituency of the right hon. Member for Stirling (Mrs McGuire), as well as along at least 10 key roads. We will also continue to look at how we can improve coverage on our railways.
At the end of this year, we will auction spectrum that will allow mobile companies significantly to increase their capacity, as well as offer faster speeds to their customers, and we continue to make progress on our plans to release some 500 MHz of the public sector spectrum.
World-leading digital infrastructure is the cornerstone of economic growth in the 21st century. Some estimates show that a 10% increase in broadband penetration can deliver a boost of up to 1.4% of gross domestic product. By the end of this Parliament, at least 90% of the country will have superfast broadband; our great cities will have ultrafast broadband; and 60,000 rural homes and businesses will have mobile coverage for the first time.
As the House knows, the UK has some of the most successful creative industries in the world. I know the whole House will wish to congratulate One Direction on topping the US charts with their debut album—a feat not matched by either the Rolling Stones or the Beatles. Adele’s “21” is the best-selling digital album of all time, and for the first time in 25 years, UK acts were at Nos. 1, 2 and 3 in the US charts. We have the second- biggest music exporting industry in the world, and our UK animation industry has a huge impact worldwide. In 2010, Peppa Pig’s UK licensing and merchandising sales were £200 million alone.
Last year saw the most UK film production activity ever—it grew by 7% to £1.16 billion. UK television formats dominate television schedules all across the globe, accounting for two in every five global programmes, and of course “Downton Abbey” has continued UK success at the Globes. Exports of UK television content are the second highest in the world, worth more than £1.3 billion per year, having grown by more than 20% a year for about the last decade. [Interruption.] The right hon. Member for South Shields (David Miliband) looks astounded by this success. I urge him to get out more and see what some of our successful creative industries are doing.
David Miliband (South Shields) (Lab)
I was actually wondering how many more pages of this drivel we had to sit through. The hon. Gentleman said that infrastructure is the seedcorn and the basis of future prosperity. How, then, does he explain the fact that 45% of the infrastructure investment that the Chancellor announced in the autumn statement will not happen until 2014-15?
Mr Vaizey
I have just spent two or three minutes talking about the success of the UK music, animation, film and television industries, and the right hon. Gentleman, who was meant to be the Labour leader, describes that as utter drivel. Let the message go out to the UK creative industries that one of the most senior members of the Labour party regards their success as drivel. And I make no apology for continuing to list some of those successes.
BBC Worldwide increased international sales by almost 10% last year. We are the European hub for the video games industry, with 35% of video games software sold in Europe being developed by UK studios, and almost half of the world’s top 100 development studios based in the UK, generating sales of almost £2 billion a year. The visual effects hub in Soho is home to four of the largest visual effects companies in the world. We have one of the most innovative and successful advertising industries in the world, and it is growing despite the recession. We have one of the most successful and creative fashion capitals anywhere in the world, with Burberry, a UK company, increasing its sales by a quarter. And, of course, our largest creative industry, the UK publishing sector, has a turnover of almost £20 billion.
We want to build on this success. We do not regard it as drivel. We regard it as vital to our economic success. That is why we will introduce a tax credit for our video games and animation industries and our high-end television production sector. We are confident that this will bring increased investment and growth in these sectors too.
John Mann
I thank the Minister for generously giving way. I would not regard his speech as drivel at all. It is a superb enunciation of the successes of the last Labour Government. Given the lead time required for investment and innovation, I look forward to hearing what he predicts his legacy will be in two, three and four years. Will it be as good as that of my right hon. Friend the Member for Dulwich and West Norwood (Tessa Jowell) and her colleagues who worked in the Minister’s Department so assiduously over the past decade?
Mr Vaizey
They cannot make their minds up. On the one hand, the success of the UK’s creative industries is drivel; on the other, the success of Adele and her biggest-selling digital album in history is down to the Labour party. I would not claim that, but I would claim instead that we are putting in place the infrastructure for broadband investment to support high-tech innovation in this country. Through a series of initiatives, such as catapult centres, investment from the Technology Strategy Board, research and development tax credits and the patent box tax credit, we continue to support investment in our technology industries. Specifically through our tax break for video games, animation and high-end television production, we will support our creative industries and spur them on to greater success. I have already heard from some of the UK’s most successful animation companies. They are now planning to increase investment in their businesses, recruit more staff and make more programmes here in the UK. [Interruption.] Mr Deputy Speaker, there is a Labour Member standing next to you shouting at me. Could you encourage him to make a formal intervention at some point?
American studios are lining up to work with our talented production staff and amazing studios. British developers will be able to take advantage of the 8% growth in the worldwide video games industry.
Jim Dowd
I am not sure whether my hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop)—to whom the Minister refers—wants to intervene, but if so, I am taking his slot. I do not want to make a partisan point, because although our understanding of the importance of the creative industries to this country and this economy, starting under the last Government, is well established, I congratulate the current Government on continuing that process, with the patent box and all the benefits that it will create. However, will the Minister prevail upon the Secretary of State for Business, Innovation and Skills and his colleagues to understand just how important creativeness and ingenuity are to this economy? In the light of the Hargreaves review and the role played by the Intellectual Property Office, it is not just product being made available free to consumers that is important, but ensuring that those who create and innovate get the best deal possible. That is a supreme role for this Government to perform.
Mr Vaizey
I thank the hon. Gentleman for that intervention—I hesitate to say that it is good to hear from somebody who knows what they are talking about, in case he makes a hostile intervention in a minute. I absolutely hear the point he makes. The protection of intellectual property is paramount. We need to bring the intellectual property regime up to date, but I for one do not want to rob Peter to pay Paul. It is absolutely right that content creators are paid for what they create.
Let me say something at which the whole House will rejoice: I am coming to the end of my remarks. However, if all those who said that they wanted to make an intervention still want to, they have a small window, as I perorate towards my conclusions.
Sarah Newton (Truro and Falmouth) (Con)
I am grateful for my hon. Friend’s cue. Creative industries are vital to Cornwall, but so is creating high-quality food products. There is growing concern throughout Cornwall about the possible unintended consequences of the Budget and about the undoubtedly real threat to the Cornish pasty of the pasty tax. May I seek my hon. Friend’s reassurance that the concerns of pasty makers in my constituency are being listened to and that a solution can be found?
Mr Vaizey
I thank my hon. Friend for that intervention, which I know the Chief Secretary to the Treasury will respond to fully when he winds up. I congratulate her county on receiving the award for being Britain’s best tourist destination for the third year, and I congratulate her on the extraordinary energy with which she represents her constituency. She and I have had many meetings to discuss various issues in her constituency. [Interruption.] You are looking at the clock, Mr Deputy Speaker, so I shall wrap up; however, let me tell my hon. Friend that I hear what she says about the Cornish pasty issue, and I am assured that the Treasury is looking at it seriously.
With a Budget that introduced the largest ever increase in personal allowances, so as to reward work, the lowest corporation tax rate in the G7, so that Britain is open for business, tax reliefs for our creative industries, increased investment in science and technology, and plans to create the best broadband network in Europe, we are well placed to realise the Chancellor’s ambition of making Britain the technology hub of the UK. I do not think that our success to date is “drivel”; I think that Britain is known around the world for its creativity and the success of its creative industries. We on this side of the House intend to ensure that we maintain and increase that success.
Ms Harriet Harman (Camberwell and Peckham) (Lab)
Let me begin with a double congratulation: to the Secretary of State and Lucia on the birth of their daughter, and to the shadow arts Minister and Rachel on the birth of their daughter. I congratulate both Members on their new babies, and also on taking paternity leave, which is a thoroughly good thing—mind you, I imagine that the Secretary of State feels well out of the debate today. Clearing up after a baby is much easier than clearing up after the mess of this Budget.
This is a Tory Budget, backed by the colluding Lib Dems—two parties that told us they were coming together in the national interest. How can it be in the national interest to fail on jobs, to fail on growth and to fail on fairness? Let us tell it how it really is: two parties coming together to give a tax bonanza to millionaires and a kick in the teeth to pensioners.
This is a Budget built on economic failure, with more than 1 million young people looking for work, economic growth at just half what can be seen in the US and the Government set to borrow £150 billion more than planned. What was needed was for the Government to come up with a Budget for jobs and growth, and they have failed.
It is good that today’s debate is focused on the creative industries, because they must be at the heart of economic growth in the future. We are good at them; they put Britain on the map; we are renowned for our arts and our culture, our film, TV and video games and our music, design and fashion. There is huge potential for growth there—growth in jobs, in exports and in contributions to gross domestic product. We needed the Government to come up with a plan for jobs and growth in the creative economy, but they have not.
The Government announced a tax break for high-end television, animation and video games, but these measures are strangely familiar. As my hon. Friend the Member for Bassetlaw (John Mann) said, it is something of an “homage” to the policies of the last Labour Government. It was, of course, the Labour Government who introduced the first tax breaks for the creative industries with our film tax relief, which has been hugely important for getting films made in Britain, helping our pioneering special effects industry and backing our studios such as Pinewood and Shepperton. The only original film policy this Government have come up with is axing the Film Council.
As for the tax break for video games, who first proposed this for the games industry? It was Labour.
Ms Harman
But certainly not to do what this Government have done—without any consultation or any discussion at all. We certainly promoted the film industry.
To return to the tax break for video games, we first proposed a tax break for the games industry, and we put it in our Budget in 2010, but what did the Tory Chancellor say in his very first Budget? He said that
“we will not go ahead with the poorly targeted tax relief for the video games industry.”—[Official Report, 22 June 2010; Vol. 512, c. 175.]
And what did he do? He axed it. For the UK games industry, it could have been game over. He is introducing the tax relief now, but this misjudgment and delay have come at a price. Our video games industry was the third biggest in the world and has now fallen to the sixth. Many jobs have been lost, with nearly half going abroad to countries such as Canada, lured by its tax relief.
This policy, then, is not an original; it is a cover version—and like most cover versions, just not as good as the original. Although tax credits are worth while on their own, they are not enough to ensure that Britain fulfils its potential as a global hub for the creative industries. Just as this Government do not have a plan for jobs and growth in the economy, they do not have a plan for jobs and growth in the creative industries.
Where is the long-awaited communications Green Paper? The Minister did not say a word about it—not one word. Perhaps it is still waiting for some high-level policy input from a premier league Tory donor.
Where, too, is the action on protecting intellectual property? This is a fundamental issue for the creative industries—the bedrock of the knowledge economy. A tax break helps to boost investment, but more investors would be more confident if they knew that the product to which they were committing was not vulnerable to theft on an industrial scale. If an industry has been given a tax break, it makes it even less sensible to stand by and watch any of the value drain away through IP theft. The last Labour Government recognised that, which is why in 2010, we passed the Digital Economy Act with cross-party support. It needs to be implemented now. We already have the Digital Economy Act; it would be good to go with it. Professor Hargreaves has conducted another review of the same issue, but what the industry and economy are crying out for is action.
Connecting Europe Facility
Lord Vaizey of Didcot Excerpts(12 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Bone
I concur with that remark, of course.
I do not blame any Member currently sitting on the Opposition Front Bench for this, but the real scandal of the last Labour Government is what Tony Blair did. I do not blame Mr Blair either, because he may well have believed at the time that what he was saying was true. He stood at the Dispatch Box and gave away an enormous amount of Mrs Thatcher’s rebate, which has led to an enormous increase in the amount we are having to contribute to the EU budget. He believed that would not happen because there would be major reform of the common agricultural policy. That has not happened, but I give him the benefit of the doubt on that. The Labour Front-Bench team may well support Mr Blair’s original position, so will the Labour Opposition and the splendid ministerial team we have combine and go to Europe and say to them, “Because you haven’t kept your part of the bargain in reforming the CAP, we will only pay the amount of money we were paying under the previous Government”? The sum in question is £19 billion over a five-year period. That is an enormous amount of money to join a club that does nothing for this country. But if we kept to that £19 billion, we would free up more than £21 billion during this Conservative coalition Government.
Many hon. Members have talked about growth, but nobody has really suggested how it could be achieved. I suggest that the £21 billion of extra money that would come to the Government as a result of paying only the amount that we were paying previously could be used either for tax cuts, which would be my preference, or for infrastructure plans, as the hon. Members for Luton North (Kelvin Hopkins) and for Carmarthen East and Dinefwr (Jonathan Edwards) were suggesting. Alternatively, some of the money could go on tax cuts and some could go on infrastructure. That would not cost the taxpayer a penny, because all we would be saying to Europe would be, “We are paying just the £19 billion over five years as the ridiculous amount of money for our subscription to the European Union.” So instead of paying £41 billion for joining this club we would be paying £19 billion. If hon. Members think that I am being unfair to the European Union on this point, they should consider the reality of what happens. This is not just about the £7 billion or £10 billion that our “net contribution” is each year, because the EU actually takes £14 billion or £15 billion. [Hon. Members: “£18 billion.”] Oh, it has gone up. The money goes to the European Commission, which then gives some of it back to be spent on its pet projects, which it thinks should be what we want in this country—we should have control of that.