Digital Economy Bill

Baroness Janke Excerpts

2nd reading (Hansard): House of Lords
Tuesday 13th December 2016 Lords Chamber

[Baroness Janke (LD)]

My Lords, as my colleagues have said, there is much to be welcomed in the Bill and we support many of the measures in it. I will confine my remarks today to the areas of the Bill relating to digital government in Part 5 and new Clause 85, which particularly relates to digital exclusion. I will also flag up the issue of counterfeit products, in the hope that we can raise this through possible amendments in Committee.

Those of us who have served in local government know that the effective sharing of information is essential to the delivery of joined-up public services. Local authorities are key local service providers, working across multiple agencies and in particular supporting vulnerable and disadvantaged people. The ability to better co-ordinate information and reduce bureaucracy and delays in providing much-needed support will be welcomed by many people. My noble friend Lord Storey mentioned the immense benefit of automatic registration for free school meals, which will be based on benefits data shared with schools. It is argued that more children will receive their entitlement and schools will get better pupil premium receipts based on real data, whereas currently parents must register their children and so schools very often do not get their full entitlement. I hope that we might be able to explore that in Committee, as it seems a very real benefit.

The draft codes of practice published in October are intended to provide clarity and transparency on how the powers in the Bill will operate. However, the contents of these codes are not legally binding, although public bodies will be required to have regard to the codes when making use of the powers. The codes make it clear that all information shared and used under the new provisions must be handled in accordance with the framework of rules set out in the Data Protection Act 1998. There must, however, be concerns that the Bill could authorise unconsented mass data-sharing for the administrative and low-level policing functions of local government. This could become a disproportionate interference with citizens’ right to a private life.

We would like to see the principle set out in the Better Use of Data in Government: Consultation of June 2016 being adhered to. We would also like assurances that there will be no new large and permanent databases or collecting of more data on citizens; that sharing of data within government will be strictly managed and scrutinised; that there will be no amending or weakening of the Data Protection Act; and that current safeguards which apply to a public authority’s data, such as those that apply to HMRC, should continue to apply to those data once they are disclosed to another public authority. There must be restrictions on further disclosure and sanctions on unlawful disclosure.

Liberty has raised concerns that the Bill does not provide adequate safeguards or transparency mechanisms on data sharing, including the sharing of highly sensitive medical data between authorities and/or service providers. The noble Baroness, Lady Hollins, spoke earlier of the concerns of the BMA that the Bill does not offer adequate protection of patient confidentiality and sensitive health information. There is a disparity between Clauses 30 and 58 in Part 5. The duty of common law does not apply in Clause 30 but the Bill has been amended in Clause 58, which relates to medical research, so that the common-law provision applies. Can the Minister say why Clauses 30 and 58 are being treated differently? What assurances can the Government provide on the protection of sensitive medical information under Part 5?

On digital exclusion, Clause 85 was added in Committee. Its states the Government’s commitment to provide publicly funded basic digital skills training free of charge to adults in England who need it, with courses to be delivered by colleges and other adult education providers. This of course is very welcome. However, training will be funded from the existing hard-pressed adult education budget. For many areas, this funding will be very stretched, particularly in places with high unemployment and low skills levels, where a large proportion of the budget will be spent on statutory entitlements. Digital exclusion is also a major feature of these areas. Will the Government provide clarity about how this programme will be funded?

European social funding is due to end in 2020, and between now and then stricter spending criteria have been imposed. How will the Government ensure that the adult education budget has adequate additional funding to match the new commitment without further cuts to adult learning, such as English as a second language or level 2 skills for 19 to 23 year-olds? It is essential that poor communities, currently excluded because providers have not considered it profitable to provide coverage, should have full digital access. Will the Government consider the introduction of a social tariff, in a similar manner to the telephony USO, for those who would face undue hardship if they had to pay for broadband services?

The third area I shall cover is raised by the Electrical Safety Council and concerns counterfeit electrical products sold online. The ESC would like the Bill to provide measures that would reduce the opportunity for counterfeit goods to be sold through online portals and asks that the Government conduct an inquiry into the extent of the problem with counterfeit electrical goods, including the cost to the economy, the amounts being imported and the extent of the problem online, and introduce a statutory obligation on online retailers to report to the police or trading standards people repeatedly selling counterfeit electrical products.

One issue that the Electrical Safety Council report includes is the fact that many consumers believe that when they purchase goods from legitimate online retailers they are from a trusted source. This is not the case because these sites act as a portal for vendors. Of people claiming to have purchased counterfeit goods, 64% purchased them online. Counterfeit electrical products are particularly risky as they often contain faulty parts and can catch fire or deliver a fatal electric shock. It is estimated that fires caused by faulty electrical products are responsible for more than 7,000 domestic fires a year. The average cost of a house fire is estimated to be £44,000.

I hope that the Minister will be able to answer some of the questions I have asked today and that we can explore these complex areas in Committee and improve the Bill to the benefit of the public to ensure that everybody is able to benefit from an improved quality of digital coverage.