Draft Economic Growth (Regulatory Functions) (Amendment) Order 2024
Draft Growth Duty: Statutory Guidance Refresh
John Whittingdale Excerpts(6 days, 19 hours ago)
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Sir John Whittingdale
I do not want to detain the Committee for long, but since I led for the Opposition in the debates on the Communications Act 2003, which established Ofcom, I want to draw on that experience to raise a couple of questions for the Minister. We spoke about some of the issues we are debating this morning at some length when Ofcom was set up. The Minister will be aware that Ofcom has a principal duty, which is to further the interests of citizens and consumers, where appropriate by promoting competition. I share some of the wishes, if not concerns, of the Opposition spokesman to explore a little further what happens if that primary duty of promoting competition comes into conflict with the objective of promoting growth. I can think of a few examples where that is possible.
Ofcom has a duty to examine wholesale prices in the telecoms markets, where the Minister will be aware that the biggest player argues very strongly that if it is to have the investment to roll out the broadband network, it needs to be able to raise prices to fund it, which potentially comes into conflict with the competition priority. Equally, as the hon. Member for Bethnal Green and Bow indicated, competition has been Ofcom’s driving objective in the mobile telephony market, but potentially that could come into conflict. Some may argue that allowing a small reduction in competition will promote growth.
I do not share the hon. Lady’s concern about national security, because I think that that is covered separately, by the National Security and Investment Act 2021. I hope that the Minister can confirm that that is a separate set of procedures that examines potential mergers and acquisitions to establish whether there is any risk to national security, and I hope that the draft order will not impinge on that. However, I see the possibility, at least in theory, that competition and growth might be conflicting objectives; given that competition is described as the Ofcom’s principal objective, I wonder whether the Minister could say a bit more about how Ofcom will deal with cases in which there is a potential conflict.
Business and Trade
John Whittingdale Excerpts(1 month, 2 weeks ago)
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Sir John Whittingdale
On Tuesday, in my capacity as trade envoy, I attended the Korean embassy for the signing of a memorandum of understanding on the joint development of a small modular nuclear reactor—just one area in which the business between our two countries is growing ever stronger. Will my right hon. Friend press ahead with the enhanced free trade agreement, which will offer huge opportunities to build on the existing £17 billion trade relationship?
Greg Hands
My right hon. Friend is absolutely right. In the UK, of course, we have our own, superb Rolls-Royce model of small modular reactor as well. He is right about the importance of our growing trading relationship with Korea. As a former Secretary of State for Culture, Media and Sport, he will also know that 71% of our services trade with Korea last year was delivered digitally.
[Official Report, 7 March 2024, Vol. 746, c. 950.]
Letter of correction from the Minister for Trade Policy, the right hon. Member for Chelsea and Fulham (Greg Hands):
An error has been identified in the response given to my right hon. Friend the Member for Maldon (Sir John Whittingdale) in Business and Trade questions. The reply should have been:
Oral Answers to Questions
John Whittingdale Excerpts(1 month, 3 weeks ago)
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Kemi Badenoch
I think the hon. Gentleman has just time-travelled from 2018 or 2019—it has been a long time since I have heard the phrase “hard Brexit”. He will of course know that we left the European Union with a deal, so he needs to catch up with what has actually happened. It is also interesting that he talked about an FT report from 1997; I should let him know that we have not been in government since 1997—we have been in government since 2010. Many of the things he is pointing out are things we have said will occur as trade flows move away from the European Union to the Indo-Pacific. That is why we have left; that is why we are trading with the rest of the world. The hon. Gentleman should also know that our economy is 80% services, so most of the things he is talking about will not impact on the vast majority of the economy. Services exports are booming, and we are doing well since leaving the EU.
Sir John Whittingdale (Maldon) (Con)
The Minister for Trade Policy (Greg Hands)
We have excellent relations with South Korea, as my right hon. Friend will know as the Prime Minister’s trade envoy there. Bilateral trade totalled £16 billion in the 12 months to September 2023. Negotiations to upgrade our FTA with South Korea were launched as part of President Yoon’s state visit in November. Round 1 of the talks has already taken place, and round 2 will take place later this month here in London.
Sir John Whittingdale
On Tuesday, in my capacity as trade envoy, I attended the Korean embassy for the signing of a memorandum of understanding on the joint development of a small modular nuclear reactor—just one area in which the business between our two countries is growing ever stronger. Will my right hon. Friend press ahead with the enhanced free trade agreement, which will offer huge opportunities to build on the existing £17 billion trade relationship?
Greg Hands
My right hon. Friend is absolutely right. In the UK, of course, we have our own, superb Rolls-Royce model of small modular reactor as well. He is right about the importance of our growing trading relationship with Korea. As a former Secretary of State for Culture, Media and Sport, he will also know that 71% of our services trade with Korea last year was delivered digitally. We need to upgrade the deal to make sure that it reflects modern, digital trade as well. Both countries are making good progress in the negotiations.
Kemi Badenoch
I am disappointed that the hon. Gentleman feels that we have not been investing as much as we should. What we have done in Port Talbot is the biggest investment that Government has ever made in steel. We are turning Port Talbot around; it is going to be regenerated. We are replacing high carbon emitting blast furnaces with electric arc furnaces to help reduce emissions, which his party and all of us across the House signed up to when we made the commitment to net zero. He may have specific things he thinks we can do on the transition, so I can tell him that we have a transition board to help those whose jobs are not going to be there with electric arc furnaces. However, we have done a significant amount for Port Talbot.
Sir John Whittingdale (Maldon) (Con)
The Minister for Industry and Economic Security (Ms Nusrat Ghani)
I am grateful to my right hon. Friend for highlighting the Policy Exchange report, and I agree that the UK should not enter a subsidy race with other industrial nations. We already have our advanced manufacturing plan, which, obviously, focuses on advanced manufacturing, and the Chancellor is also looking at green industries, life sciences, creative industries and digital technology. Those are all areas in which we know we can grow as well. I have spoken about the record levels of investment we get into the UK. Last autumn, when the Chancellor announced full expensing, more than 200 business leaders and the CBI said that that was a game changer and the single most transformative thing we could do to fire up the British economy. We will continue to be competitive and ensure that we continue to be the third country, after the USA and China, in securing inward investment—of course, beating our European counterparts.
Horizon: Compensation and Convictions
John Whittingdale Excerpts(3 months, 3 weeks ago)
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Kevin Hollinrake
The hon. and learned Lady is right to point out malicious prosecution, which forms part of the compensation package available to those people who have convictions. In terms of offences and things that happened that led to these issues that people are or may be guilty of, we expect the police or other enforcement agencies to look at that carefully. There is nothing to stop them bringing forward prosecutions where they can see that people would be guilty of a certain offence.
Sir John Whittingdale (Maldon) (Con)
While applauding the extraordinary courage and resilience of the sub-postmasters who have campaigned for justice for so long, does my hon. Friend agree that the makers of “Mr Bates vs The Post Office” and ITV represent public service broadcasting at its best and that without that we would not be having this statement?
Kevin Hollinrake
I thank my right hon. Friend for his question. I entirely agree; the programme brought the scandal into everybody’s living rooms, and although many people were vaguely or even very aware of it, they did not see its real effect in terms of the people it affected or the brutal way in which they were bullied and forced out of their businesses and livelihoods—and in 200 cases, I think, put in prison. The programme has done a fantastic job. We should pay tribute to ITV, its producers and the actors concerned,0 as well as to the many journalists—not least Nick Wallis, Tom Witherow and Karl Flinders—who brought these issues to light and into the public consciousness, which I am sure played a part in the producers’ decision to make the programme.
Oral Answers to Questions
John Whittingdale Excerpts(9 months, 2 weeks ago)
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Martyn Day (Linlithgow and East Falkirk) (SNP)
The Minister for Data and Digital Infrastructure (Sir John Whittingdale)
The UK arts and culture sector has many strong existing positive relationships in Europe, and we are taking a number of steps to deepen ties. The Government have developed bilateral agreements with European countries, and the British Council offers further sector-specific support, including the recently announced spotlight on culture between the UK and France.
Martyn Day
The UK Trade and Business Commission found that the Scottish arts and film industry has lost €27 million in EU funding as a consequence of Brexit, so will the Minister’s Government make up for that shortfall and the calamity that Brexit has imposed on the sector?
Sir John Whittingdale
While the UK decided not to participate in Creative Europe, nevertheless the UK shared prosperity fund, which is a UK-wide funding initiative, has match funded what was originally available from the EU and also gives local authorities, and indeed nations, control over how that money is spent.
Ian Paisley (North Antrim) (DUP)
The Minister for Data and Digital Infrastructure (Sir John Whittingdale)
The Secretary of State and I meet with the BBC’s leadership regularly to discuss a range of issues. The BBC’s processes for handling audience complaints about its editorial content are an area of focus of the mid-term review and, as required by the terms of reference, the DCMS has been consulting the BBC on the review’s findings. We are seeking to conclude the review at pace and to report on its findings by 2024.
Ian Paisley
I look forward to the conclusions of the review. The Minister will know my views: the complaints process within the BBC is utterly inadequate, and I think he agrees with me on that. There is no genuine independence in that process and therefore there is a lack of confidence in how that process is working. I hope he will factor those views into making sure that the outcome of the review takes on board the need to have a genuinely independent complaints mechanism, so that the public can have confidence in the broadcasts.
Sir John Whittingdale
We are aware that research from Ofcom bears out what the hon. Gentleman has said, in that there is considerable dissatisfaction with the existing complaints procedure. That is something about which the BBC is also aware, and we are keen to address it in the mid-term review. So far, we are making good progress in reaching agreement with the BBC on how it can be strengthened in the future.
John Nicolson (Ochil and South Perthshire) (SNP)
Over the last 10 days, we have seen the BBC embroiled in a lengthy bout of self-analysis over accusations made about Huw Edwards. For days, the story led every bulletin and I refused all requests for comment; I felt I did not know enough detail. I am glad I took that stance. The BBC has announced an investigation, but the police have now said there was no criminality, as originally claimed by The Sun. What does the Secretary of State think the lessons might be? Perhaps politicians should exercise more caution before issuing condemnations about developing stories; maybe we should remember to treat any story in The Sun with extreme caution. Given this further example of intrusive prurience, we could all remind ourselves of why there was once widespread agreement about having an independent press regulator with teeth, something the Conservatives once supported, before getting frightened off by powerful press barons.
Sir John Whittingdale
I say to the hon. Gentleman that, first, this was a matter for the BBC. Although the Secretary of State and I did ask to be kept informed by the BBC, it was a matter for the organisation itself and, as he has suggested, it has established an internal inquiry to find out whether there are any lessons to be learned. With regard to The Sun, it is of course a member of the Independent Press Standards Organisation, which has a code, and if there have been breaches of the code, then that is a matter for IPSO to adjudicate on.
Dame Diana Johnson (Kingston upon Hull North) (Lab)
The Minister for Data and Digital Infrastructure (Sir John Whittingdale)
We recognise the strength of feeling about the importance of BBC local services and we remain disappointed that the BBC is planning to reduce parts of its local radio output. This is a matter for the BBC, but Ministers have raised our concerns about the BBC’s plans previously, and we will discuss this issue with the interim chair and the director general at the next opportunity.
Dame Diana Johnson
I think that we all thought that digital technology was meant to expand choice. However, in recent times, we have seen post office, bank and rail ticket office closures, and the BBC is using the same arguments to justify the managed decline of local radio. I saw today that we have been told by the BBC that it wants to reach 50% of the population with its TV, radio and online services after its digital plan is carried out. But I have seen in the annual report that it says that it is already at 50%, so why is it using that as a justification for the vandalism of local radio?
Sir John Whittingdale
The BBC obviously needs to take account of the fact that more and more people are accessing content online and digitally, and therefore it has decided to invest more in that area. However, it is one that is already well provided for, particularly in the area of local news. It is important that the BBC does not lose sight of the fact that there are still a significant number of people who rely on traditional broadcasting and value local radio. As I have made clear, the Government are disappointed by the BBC’s decision to reduce local radio output.
Dame Caroline Dinenage (Gosport) (Con)
As you know, Mr Speaker, local radio is such a lifeline to many of the elderly, vulnerable and isolated people in our communities. I wonder whether the Minister has a view on what the words “public service” in the BBC’s public service remit actually mean. Should that not include reaching everyone with local news and information, not just those who are digitally enabled?
Sir John Whittingdale
As I said earlier, many people still value local radio and will regret and, indeed, be very concerned about the reduction in local radio output that the BBC has proposed, particularly in the evenings and at weekends. I have no doubt that my hon. Friend will take advantage of the opportunity that she has through chairing the extremely important Committee overseeing the BBC to raise that matter with the director-general again, as indeed will we.
Mr Speaker
I would say that the BBC is very good at showing empty chairs, but there will now be empty studios if we are not careful, and we certainly do not want to see the end of Radio Lancashire.
Scott Benton (Blackpool South) (Ind)
The Minister for Media, Tourism and Creative Industries (Sir John Whittingdale)
The Government have made it clear that the licence fee will remain in place for the remainder of this charter period, but my hon. Friend is right that there are challenges going forward. He may be aware that the number of people paying the licence fee has fallen by 1.9 million in the past five years, and it is therefore right that we look at possible alternative sources of funding for the BBC in the longer term. That will be the focus of the funding review.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Oral Answers to Questions
John Whittingdale Excerpts(1 year, 1 month ago)
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Kevin Hollinrake
The hon. Lady is right to raise this issue. We have put in place £13.6 billion of business rates support to help businesses over the next few years, but we are also improving access to finance, improving business support through our growth hubs and cutting red tape, making it easier for businesses to start up and scale up in the UK. That work will continue.
Sir John Whittingdale (Maldon) (Con)
Mrs Heather Wheeler (South Derbyshire) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
We are currently negotiating accession to the comprehensive and progressive agreement for trans-Pacific partnership, a bloc worth £9 trillion of global GDP in 2021. As part of that, our businesses will get enhanced access to the Malaysian market for the first time. Beyond CPTPP, we are continuing negotiations on the UK-India free trade agreement and working to implement FTAs with Australia and New Zealand, in addition to existing trade dialogues with Indo-Pacific partners.
Sir John Whittingdale
I thank my right hon. Friend for the assistance that her Department gives me in my role as trade envoy to the Republic of Korea. Does she agree that the forthcoming negotiations for an enhanced trade agreement with Korea offer real opportunities for British businesses?
Kemi Badenoch
I do agree, and I would like to thank my right hon. Friend for his tireless work as the trade envoy to promote closer trade links with the Republic of Korea. Our trade relationship with Korea is thriving, no doubt thanks to all his hard work. It amounted to about £14 billion in 2021, much of which is in critical goods such as microchips, cars and pharmaceuticals. It is currently supported by our 2019 FTA, so we are going to start discussions with Korea to review how we can make the FTA even stronger, ensuring it continues to support existing trade and create new opportunities for British business.
Sir John Whittingdale (Maldon) (Con)
Kemi Badenoch
My right hon. Friend raises an important point. The Retained EU Law (Revocation and Reform) Bill allows the UK to take the next step in reasserting the sovereignty of Parliament, and ends the special status of retained EU law in the statute book. Reforms will not come at the expense of our already high standards, and we will maintain our commitments to international obligations, including the withdrawal agreement. We will, of course, ensure that the UK’s position as a global leader in the creative industries will not just remain but be strengthened.