Online Safety Bill (Eleventh sitting)

Barbara Keeley Excerpts

Committee stage
Thursday 16th June 2022 Public Bill Committees

[The Chair]

With this it will be convenient to discuss clauses 71 to 76 stand part.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It is a pleasure to serve with you in the Chair again, Sir Roger. I add my tribute to our former colleague, Jo Cox, on this sad anniversary. Our thoughts are with her family today, including our colleague and my hon. Friend, the Member for Batley and Spen.

We welcome the “polluter pays” principle on which this and the following clauses are founded. Clause 70 establishes a duty for providers to notify Ofcom if their revenue is at or above the specified threshold designated by Ofcom and approved by the Secretary of State. It also creates duties on providers to provide timely notice and evidence of meeting the threshold. The Opposition do not oppose those duties. However, I would be grateful if the Minister could clarify what might lead to a provider or groups of providers being exempt from paying the fee. Subsection (6) establishes that

“OFCOM may provide that particular descriptions of providers of regulated services are exempt”,

subject to the Secretary of State’s approval. Our question is what kinds of services the Minister has in mind for that exemption.

Turning to clauses 71 to 76, as I mentioned, it is appropriate that the cost to Ofcom of exercising its online safety functions is paid through an annual industry fee, charged to the biggest companies with the highest revenues, and that smaller companies are exempt but still regulated. It is also welcome that under clause 71, Ofcom can make reference to factors beyond the provider’s qualifying worldwide revenue when determining the fee that a company must pay. Acknowledging the importance of other factors when computing that fee can allow for a greater burden of the fees to fall on companies whose activities may disproportionately increase Ofcom’s work on improving safety.

My hon. Friend the Member for Pontypridd has already raised our concerns about the level of funding needed for Ofcom to carry out its duties under the Bill. She asked about the creation of a new role: that of an adviser on funding for the online safety regulator. The impact assessment states that the industry fee will need to average around £35 million a year for the next 10 years to pay for operating expenditure. Last week, the Minister referred to a figure of around £88 million that has been announced to cover the first two years of the regime while the industry levy is implemented, and the same figure was used on Second Reading by the Secretary of State. Last October’s autumn Budget and spending review refers on page 115 to

“over £110 million over the SR21 period for the government’s new online safety regime through the passage and implementation of the Online Safety Bill, delivering on the government’s commitment to make the UK the safest place to be online.”

There is no reference to the £88 million figure or to Ofcom in the spending review document. Could the Minister tell us a bit more about that £88 million and the rest of the £110 million announced in the spending review, as it is relevant to how Ofcom is going to be resourced and the industry levy that is introduced by these clauses?

The Opposition feel it is critical that when the Bill comes into force, there is no gap in funding that would prevent Ofcom from carrying out its duties. The most obvious problem is that the level of funding set out in the spending review was determined when the Bill was in draft form, before more harms were brought into scope. The Department for Digital, Culture, Media and Sport has also confirmed that the figure of £34.9 million a year that is needed for Ofcom to carry out its online safety duties was based on the draft Bill.

We welcome many of the additional duties included in the Bill since its drafting, such as on fraudulent advertising, but does the Minister think the same level of funding will be adequate as when the calculation was made, when the Bill was in draft form? Will he reconsider the calculations his Department has made of the level of funding that Ofcom will need for this regime to be effective in the light of the increased workload that this latest version of the Bill introduces?

In March 2021, Ofcom put out a press release stating that 150 people would be employed in the new digital and technology hub in Manchester, but that that number would be reached in 2025. Therefore, as well as the level of resource being based on an old version of the Bill, the timeframe reveals a gap of three years until all the staff are in place. Does the Minister believe that Ofcom will have everything that is needed from the start, and in subsequent years as the levy gets up and going, in order to carry out its duties?

Of course, this will depend on how long the levy might need to be in place. My understanding of the timeframe is that first, the Secretary of State must issue guidance to Ofcom about the principles to be included in the statement of principles that Ofcom will use to determine the fees payable under clause 71. Ofcom must consult with those affected by the threshold amount to inform the final figure it recommends to the Secretary of State, and must produce a statement about what amounts comprise the provider’s qualifying world revenue and the qualifying period. That figure and Ofcom’s guidance must be agreed by the Secretary of State and laid before Parliament. Based on those checks and processes, how quickly does the Minister envisage the levy coming into force?

The Minister said last week that Ofcom is resourced for this work until 2023-24. Will the levy be in place by then to fund Ofcom’s safety work into 2024-25? If not, can the Minister confirm that the Government will cover any gaps in funding? I am sure he will agree, as we all do, that the duties in the Bill must be implemented as quickly as possible, but the necessary funding must also be in place so that Ofcom as a regulator can enforce the safety duty.

[Dame Maria Miller (Basingstoke) (Con)]

I have just a short comment on these clauses. I very much applaud the Government’s approach to the funding of Ofcom through this mechanism. Clause 75 sets out clearly that the fees payable to Ofcom under section 71 should only be

“sufficient to meet, but…not exceed the annual cost to OFCOM”.

That is important when we start to think about victim support. While clearly Ofcom will have a duty to monitor the efficacy of the mechanisms in place on social media platforms, it is not entirely clear to me from the evidence or conversations with Ofcom whether it will see it as part of its duty to ensure that other areas of victim support are financed through those fees.

It may well be that the Minister thinks it more applicable to look at this issue when we consider the clauses on fines, and I plan to come to it at that point, but it would be helpful to understand whether he sees any role for Ofcom in ensuring that there is third-party specialist support for victims of all sorts of crime, including fraud or sexual abuse.

--- Later in debate ---

[Barbara Keeley]

Before the Minister gets past this point—I think he has reached the point of my question—the fees do not kick in for two years. The figure is £88 million, but the point I was making is that the scope of the Bill has already increased. I asked about this during the evidence session with Ofcom. Fraudulent advertising was not included before, so there are already additional powers for Ofcom that need to be funded. I was questioning whether the original estimate will be enough for those two years.

[Chris Philp]

I assume that the hon. Lady is asking about the £88 million.

[Barbara Keeley]

indicated assent.

[Chris Philp]

That covers the preparatory work rather than the actual enforcement work that will follow. For the time being, we believe that it is enough, but of course we always maintain an active dialogue with Ofcom.

Finally, there was a question from my right hon. Friend the Member for Basingstoke, who asked how victims will be supported and compensated. As she said, Ofcom will always pay attention to victims in its work, but we should make it clear that the fees we are debating in these clauses are designed to cover only Ofcom’s costs and not those of third parties. I think the costs of victim support and measures to support victims are funded separately via the Ministry of Justice, which leads in this area. I believe that a victims Bill is being prepared that will significantly enhance the protections and rights that victims have—something that I am sure all of us will support.

Question put and agreed to.

Clause 70 accordingly ordered to stand part of the Bill.

Clauses 71 to 76 ordered to stand part of the Bill.

Clause 77

General duties of OFCOM under section 3 of the Communications Act

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Barbara Keeley]

I want to remind Committee members of what my hon. Friend is talking about. I refer to the oral evidence we heard from Danny Stone, from the Antisemitism Policy Trust, on these small, high-harm platforms. He laid out examples drawn from the work of the Community Security Trust, which released a report called “Hate Fuel”. The report looked at

“various small platforms and highlighted that, in the wake of the Pittsburgh antisemitic murders, there had been 26 threads…with explicit calls for Jews to be killed. One month prior to that, in May 2020, a man called Payton Gendron found footage of the Christchurch attacks. Among this was legal but harmful content, which included the “great replacement” theory, GIFs and memes, and he went on a two-year journey of incitement.”

A week or so before the evidence sitting,

“he targeted and killed 10 people in Buffalo. One of the things that he posted was:

‘Every Time I think maybe I shouldn’t commit to an attack I spend 5 min of /pol/’—

which is a thread on the small 4chan platform—

‘then my motivation returns’.”

Danny Stone told us that the kind of material we are seeing, which is legal but harmful, is inspiring people to go out and create real-world harm. When my hon. Friend the Member for Pontypridd asked him how to amend this approach, he said:

“You would take into account other things—for example, characteristics are already defined in the Bill, and that might be an option”.––[Official Report, Online Safety Public Bill Committee, 26 May 2022; c. 128, Q203-204.]

I do hope that, as my hon. Friend urges, the Minister will look at all these options, because this is a very serious matter.

[Alex Davies-Jones]

I completely agree with my hon. Friend. The evidence we heard from Danny Stone from the Antisemitism Policy Trust clearly outlined the real-world harm that legal but harmful content causes. Such content may be legal, but it causes mass casualties and harm in the real world.

There are ways that we can rectify that in the Bill. Danny Stone set them out in his evidence and the SNP amendments, which the Labour Front Bench supports wholeheartedly, outline them too. I know the Minister wants to go further; he has said as much himself to this Committee and on the Floor of the House. I urge him to support some of the amendments, because it is clear that such changes can save lives.

Schedule 10 outlines the regulations specifying threshold conditions for categories of part 3 services. Put simply, as the Minister knows, Labour has concerns about the Government’s plans to allow thresholds for each category to be set out in secondary legislation. As we have said before, the Bill has already faced significant delays at the hands of the Government and we have real concerns that a reliance on secondary legislation further kicks the can down the road.

We also have concerns that the current system of categorisation is inflexible in so far as we have no understanding of how it will work if a service is required to shift from one category to another, and how long that would take. How exactly will that work in practice? Moreover, how long would Ofcom have to preside over such decisions?

We all know that the online space is susceptible to speed, with new technologies and ways of functioning popping up all over, and very often. Will the Minister clarify how he expects the re-categorisation process to occur in practice? The Minister must accept that his Department has been tone deaf on this point. Rather than an arbitrary size cut-off, the regulator must use risk levels to determine which category a platform should fall into so that harmful and dangerous content does not slip through the net.

Labour welcomes clause 81, which sets out Ofcom’s duties in establishing a register of categories of certain part 3 services. As I have repeated throughout the passage of the Bill, having a level of accountability and transparency is central to its success. However, we have slight concerns that the wording in subsection (1), which stipulates that the register be established

“as soon as reasonably practicable”,

could be ambiguous and does not give us the certainty we require. Given the huge amount of responsibility the Bill places on Ofcom, will the Minister confirm exactly what he believes the stipulation means in practice?

Finally, we welcome clause 82. It clarifies that Ofcom has a duty to maintain the all-important register. However, we share the same concerns I previously outlined about the timeframe in which Ofcom will be compelled to make such changes. We urge the Minister to move as quickly as he can, to urge Ofcom to do all they can and to make these vital changes.