Rural Phone and Broadband Connectivity Debate

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Rural Phone and Broadband Connectivity

Graham Stuart Excerpts
Tuesday 3rd February 2015

(9 years, 3 months ago)

Commons Chamber
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Jesse Norman Portrait Jesse Norman
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I am very grateful to my hon. Friend for making the very important point that while these are especially difficult issues in rural areas, they are not confined to them. If it is possible to have a problem with mobile connectivity in SW1, I invite him to consider what it is like in HR1.

The issue is not merely bad mobile and broadband coverage, but the compounded effect of both, especially on isolated communities in rural areas such as my own. To take just one example, Vodafone recently acknowledged to me that it has only 55% coverage for 3G mobile data services in Herefordshire. Is it any wonder that bad connectivity is such a source of continuing frustration?

Graham Stuart Portrait Mr Graham Stuart (Beverley and Holderness) (Con)
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I do not mean to trump my hon. Friend, but I met Vodafone last week and its current 3G coverage in my constituency is just over 20%. The good news is that thanks to the Government announcement of additional funding, it plans to reach 99% by the end of 2017.

Jesse Norman Portrait Jesse Norman
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I invite colleagues across the House to engage in our new sport: the four Yorkshiremen of mobile coverage. If anyone can beat my hon. Friend’s figures, he or she is welcome to intervene.

In the previous debate, I focused on the basic unfairness of bad coverage and connectivity, and on its disastrous economic and social effect. I highlighted the situation at Kingstone surgery, which had such a bad signal that without urgent repairs it was going to be unable to upgrade its software, potentially affecting 4,200 patients in a matter of weeks. I have since spoken to Herefordshire council and met BT again. I am delighted to inform the House that obstacles have been overcome and that the surgery is scheduled to receive a fast broadband service on 18 February, just in time for its upgrade.

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Lord Herbert of South Downs Portrait Nick Herbert
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I am not sure whether that is the case, but we can look ahead at how we can inject more competition into the sector to ensure the competitive pressures needed to improve customer service. I would look again, as hon. Members have suggested, at BT’s relationship with Openreach and see whether there is a case for splitting them, injecting more competition there and potentially breaking up Openreach. We need more competition in this sector.

Secondly, we should not be fixated on the fibre-based solution, which will never be realistic in the hardest-to-reach rural areas. In those areas, wireless technology or access to 4G or faster mobile data signals will become the solution. I do not believe that satellite will be the solution. We therefore need to ensure that the kind of solutions being advanced in public-private partnership recognise that different solutions will be necessary in rural areas.

Graham Stuart Portrait Mr Graham Stuart
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Does my right hon. Friend, like me, welcome the £10 million fund that the Government have created to develop new technologies? Does he, like me, hope that the Government might be able to go further to make sure that small companies, such as those in my constituency, can be supported to develop the technology, show proof of concept and thus challenge BT and deliver for rural communities?

Lord Herbert of South Downs Portrait Nick Herbert
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Indeed. Like my hon. Friend, I welcome the Government’s funding initiative in this area. I had intended to go on to say that. None of what I say is a criticism of the Government; they are merely suggestions as to how we can improve the situation further.

Thirdly, we need to ensure that the technologies adopted are future-proof. There is a danger that in seeking to meet the commitment to wholesale coverage by 2017 or superfast coverage for 95%, technologies are adopted that will not stand the test of time and will quickly be found to be insufficient.

Fourthly, I have a general observation to make about subsidy. Given that we all agree that access to broadband is an essential public service, there is a role for public subsidy in this area. That role should be to correct instances of market failure. We need to be careful to ensure that subsidy is not directed at companies or providers where the market would provide a service. With the current BDUK roll-out, there is a danger that public money is being used to close the gap in areas where it would have provided the service anyway, and the remaining 5% or 10% is not being covered. We must ensure that in future subsidy is directed to the hardest-to-reach areas and that the market is left to fill the gaps. That is a hard judgment to make, given that we are trying to ensure that the market operates properly.

In my constituency villages are being connected one by one. There is a tremendous improvement, which reflects the initiative of the Government and the county council. I welcome that, but I suspect that many of those villages would have been connected anyway to fibre. What is happening is that the rural areas are being left out. I remind the House that these rural areas comprise a great number of people and rural businesses who need to be connected. There is the danger of a growing digital divide, which might in turn become a further manifestation of something we need to avoid: a rural-urban divide. We see that in many other aspects of policy, and I think that we should strive to prevent it.

I mentioned that three and a half years ago I convened a summit to discuss how to improve the situation in West Sussex, and I believe that it bore fruit. I therefore suggest holding another similar event in West Sussex, not to criticise but to look forward and see how we can close the gap and ensure that we do not have a digital divide in rural West Sussex in future. I would be grateful if my right hon. Friend the Secretary of State considered attending the summit, partly because of the lessons I think there would be for other rural areas. The summit would have the active support of the South Downs National Park Authority, for instance, which is very interested in the issue. The Government have done a great deal to improve the situation. We must now ensure that we go further and close the digital divide.

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Guy Opperman Portrait Guy Opperman (Hexham) (Con)
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Broadband is just as essential to homes and businesses as electricity and telephone lines in the 21st century. All of us endorse the long-term economic plan as the way in which this Government will turn the country around in the future, and key to that is having broadband, including broadband to the rural areas of our country. In debates such as this, I often hear colleagues talking about their very rural constituencies, but, as you will know, Mr Speaker, my constituency is the most rural in all of England and it is the least densely populated constituency per square mile—there are 1,250 square miles—in England too.

As with Mark Antony and Julius Caesar, I come to praise the Minister, not to criticise him, because the reality is that he is an honourable man and he has in an epic recession overseen a very substantial investment of Government money into Northumberland, which has resulted in the provision of significant amounts of broadband. That money, going through Northumberland county council and working with BT Openreach, has provided a significant expansion on the utterly woeful situation we inherited in 2010. [Interruption.] Throughout this debate we have heard endless chunterings from the hon. Member for Rhondda (Chris Bryant)—one of only two Labour Members on the Opposition Benches, so interested are Labour Members in this subject—but in reality we were left with a terrible situation that this Government have, to their great credit, turned around.

Graham Stuart Portrait Mr Graham Stuart
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Does my hon. Friend agree that the near absolute absence of Members on the Opposition Benches shows the indifference to the rural interest that too often seizes the Labour party, so that even when there are arguments that would reasonably be accepted by their Members they do not come here to hear them, and that rural residents across the country need to recognise which parties do take an interest—including our coalition partners?

Guy Opperman Portrait Guy Opperman
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In what must be the ultimate not spot, nobody who represents an England or a Scotland constituency is present on the Labour Benches. It is not very impressive, we would all agree.

I want to start by talking about the progress that has been made in Northumberland, such that there has now been provision of fibre broadband to Stocksfield, Heddon, parts of Wylam, Ponteland, Stamfordham, Great Whittington, Prudhoe, most of Corbridge, Slaley, most of Hexham, parts of Allendale, Gilsland—as Joan Thirlaway only recently texted me—Greenhead, Haltwhistle, Bardon Mill, Haydon Bridge, Humshaugh, Wall, Chollerford and Wark, all of which is very successful. Sadly however, as the House will be aware, I could also give quite a long list of villages and places which have not had that benefit, although the local authority and BT assure me that it will be provided in 2015. Indeed, only today I received notification from Lieutenant Colonel Richard Clements, the commanding officer of 39 Regiment Royal Artillery, that Albemarle barracks, after many years of not having broadband, now has—literally as of today—fibre broadband being provided to it and the troops there, who have returned from Afghanistan. I pay tribute to the great work that he and all the people who work at that barracks have done to bring that development about.

However, I could list a large number of villages that do not have broadband. It is fair to say that while progress has been made, there are gaps, misnomers and, sadly, too many false dawns. All of us have seen examples of where BT—it is sometimes the county council, but primarily it is BT—will suggest, “Oh, it’s all going to be wonderful in this village. We are providing this broadband to the village, or town.” Sadly, however, what happens is that the broadband is not provided, or else there is only partial provision.

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Graham Stuart Portrait Mr Graham Stuart (Beverley and Holderness) (Con)
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It is a pleasure to take part in this debate and to see in their seats so many parliamentary patrons of the rural fair share campaign. Although we are talking today about broadband and mobile coverage, we must see the matter in context. I congratulate my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) on securing this debate and the Backbench Committee on its work.

Let us talk about context. It is a pity that we have no one other than the Opposition Whip and the shadow Minister in their place to hear this. The context is that people in rural areas are, on average, poorer than people in urban areas. They earn less; they have fewer services; they pay higher levels of council tax; and they suffer from lower funding of health, education, police and fire services. To add to that disadvantage, they find that they are in the 5% or 10%—whatever percentage it is in some grand number—that does not get the good thing that we are talking about. That merely compounds a disadvantage that is to be found in so many areas already.

What we need to do from the rural interest point of view is recognise that rurality is a need in the same way that deprivation is a need. It drives cost in the way that deprivation does, and we must make the case. We must have a broad understanding of the needs of rural communities. Let me say to the Opposition Whip, who, unfortunately for him, is in his place, that when we were discussing the Government’s programme to bring decent broadband service to rural areas, one of his colleagues said that it would mean faster internet shopping for millionaires—he went on to say faster internet shopping for wealthy people. That is a misconception of the disadvantage and low income of so many people in rural areas. They are removed from services and removed from access. The one thing that they had hoped would close that gap is digital technology, but all too often that is closed to them as well. That is the context.

Rory Stewart Portrait Rory Stewart (Penrith and The Border) (Con)
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Given that the fundamental challenge of rural areas is the barrier of distance, surely what we need to emphasise is that there is nothing more powerful than the technology of broadband and mobile in overcoming that barrier and in bringing rural areas all the opportunities of networked lives.

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Graham Stuart Portrait Mr Stuart
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My hon. Friend is right. I pay tribute to him for how since the moment he was first elected and arrived in this Chamber—and probably before that—he has taken seriously the need to get broadband into his rural constituency. It was a privilege to attend a conference that he organised for hundreds of people in Cumbria some years ago to highlight exactly this problem.

I want to move on to talk about the long-term economic plan. When we consider the economic needs of the nation, one thing we see is that there is a productivity gap between urban and rural areas. The analysis of why that productivity gap exists shows that the problem is connectivity. It can be about highways and railways and buses, but, as my hon. Friend the Member for Penrith and The Border (Rory Stewart) rightly says, it is also about the digital divide. That is why if we are to have an equitable country that is fair to all and that closes those gaps, we must prioritise this issue.

My hon. Friends must realise that after 13 years of the previous Government—understandably, as we can see the level of interest in rural issues among Opposition Members—fewer than half of all households, and those the easy and commercially available households, have superfast broadband. It is this Government, who in so many ways have had to do the heavy lifting, who have taken that figure to three quarters of households and who, by 2017, will be delivering 95% coverage. As has been said, I am concerned about the other 5%.

Graham Stuart Portrait Mr Stuart
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I will give way to the shadow Minister and I hope that he will apologise not only for the failure of members of his party to take an interest in this vital issue but for the fact that in government—perhaps preoccupied with other matters—Labour did not focus enough on the needs of people in rural areas or recognise the disadvantage there.

Chris Bryant Portrait Chris Bryant
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I am sort of grateful to the hon. Gentleman for giving way, but I was not going to make a very aggressive point. I was just going to suggest that he might correct his figures. Superfast broadband is not the major issue that most people have been complaining about in the debate. The complaints have been about getting even to 2 megabits per second. Our ambition, which we would have secured, was to reach that speed for everybody by 2012 and it was his Government who abandoned that target.

Graham Stuart Portrait Mr Stuart
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With respect to the hon. Gentleman, the only people I have heard who felt that that programme was on track to be delivered were representatives of the Labour party. It is a shame that there are not more of those representatives in the Chamber today to intervene and explain precisely how it was going to be delivered. The hon. Gentleman is an excellent advocate for a difficult cause, and I respect that as a politician, but the truth is, as he knows, that the record of his party was weak. The record of the Conservative party is distinctly better, but we should recognise the context. We are all saying to the Government and to the Minister that it is not enough; we must go further and that is why we are here today. It is great to have the shadow Minister here today, even if we do not have any of his colleagues—[Hon. Members: “There is one!”] I apologise.

We have the opportunity to put an ambitious aim in all the manifestos. Let us ensure that people are not isolated and that we close the gap.

David Heath Portrait Mr Heath
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May I take the hon. Gentleman back to the question of the economy and growing businesses? One quick boost that we could give to a lot of small businesses would be to encourage entrepreneurs who want to provide broadband by a wi-fi connection to places that will never gain from 3 miles of copper cable to the nearest exchange. I met such an entrepreneur only last week who was to provide for about half a dozen villages in my area. I would love to point him towards the Government funding that would give him the start that would enable that to happen, but at the moment it is not obviously there.

Graham Stuart Portrait Mr Stuart
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My hon. Friend is quite right. One of the challenges for the Government is that they are not very good at dealing with small organisations. I have a company offering a service in my area called Quickline. It contacted me and said that it would love to launch a hub in a local pub and then to offer it out to the surrounding community. I was rather rotten to the person who approached me, as I thought they were looking to do it somewhere quite close to Beverley, which would be easier. I said, “What about Holmpton, down near Withernsea?” I thought that it was about the most challenging place I could find for them and, to be fair, they agreed. The George and Dragon had that hub installed a couple of years ago and provided the offer in an area that was otherwise a not spot. It is difficult for Government, who have to secure and assure the use of public money, but we must find a way of dealing with small companies, some of which might go down as well as up. We must take some risks if we are to deliver this goal.

Baroness Blackwood of North Oxford Portrait Nicola Blackwood
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I could not agree more that connectivity for rural businesses is an essential service. Does my hon. Friend agree with me that the rural broadband voucher scheme, which is used in Oxfordshire to provide small businesses with up to £30,000 to pay for superfast broadband connections, has been a really valuable scheme? It expires at the end of March, and it would be helpful to know what might replace it.

Graham Stuart Portrait Mr Stuart
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My hon. Friend has put that on the record and I am sure the Minister will try to answer. I hope he has time to answer the many questions that have been raised.

As we know, the 95% delivery target for phase 2 funding is a national target, and obviously there are fears among colleagues that the 5% figure may turn out to be larger than that in their area. The aim was that the funding for that, for which £5 million came to the East Riding, should be matched—it is a shame to see that there is not even a shadow Minister now, just a Whip, however marvellous he may be, which he is, of course. However, East Riding of Yorkshire council is struggling to find the other £5 million, so there is a danger that we will not get the 95% provision.

What can be done to make sure that we target the most hard to reach? It does not matter what we are dealing with, whether it is the DECC work to reduce home energy use or anything else, the tendency is to pick off the low-hanging fruit, the easy targets. Somehow we need to design a system that starts with the most difficult-to-reach properties and works back. That way, we are the least likely to do as my right hon. Friend the Member for Arundel and South Downs (Nick Herbert) said, which is subsidise something that would happen anyway and not target the money on those who need it the most. That is important for the future.

It is estimated that by 2024, the Government’s current investment in faster broadband will be boosting rural economies by £275 million every month—not each year—which is about £9 million every day. It makes economic sense as well as good social capital sense to make the investment. Will the Minister update the House on the innovation fund we have heard about today, which is available for alternative technology providers who can then come up with innovative and radical approaches to reach the most remote communities? If he can do that, we will be grateful. Is there a prospect of the fund being increased?

I was delighted to hear that the Minister secured a landmark deal with mobile networks to improve mobile coverage across the UK. I mentioned earlier that, following that agreement, Vodafone will be extending 3G coverage in my constituency from just over 20% now to 99% by 2017. That is a significant move forward.

What are the Government doing to ensure that broadband infrastructure is available in areas where it would not be commercially viable for companies to install it? Also, as the Environment, Food and Rural Affairs Committee report today asks, is enough being done to hold BT to its promises? What about commercial plans from providers such as Kingston Communications, in our area? In those areas where the commercial providers said provision was commercial, they have not always fulfilled that, and then moved on. We need to make sure we have a system in place that holds them all to account, but I congratulate the Government on doing so much more, despite the chuntering from the Opposition.