Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Lord Ashton of Hyde Excerpts

Committee: 1st sitting (Hansard): House of Lords
Tuesday 24th October 2017 Grand Committee

[Lord Kennedy of Southwark (Lab)]

My Lords, I refer the Committee to my registered interests as a local councillor and a vice-president of the Local Government Association. I support Amendments 1, 5 and 11 in this group, tabled by the noble Baroness, Lady Pinnock. They highlight some real problems for communities—be they urban or rural—which suffer from poor connectivity, and there has been no real incentive to improve the situation for them by improving speeds. The amendments add the condition that, for the relief to apply, it has to be focused on areas within a local authority where the average broadband speed is 10 megabits per second or less. I think I am right when I say that about 93% of homes and businesses in the UK are able to receive superfast broadband, but it is the copper version. The Bill is generally welcomed.

The noble Baroness is right to focus her amendments on areas with poor connectivity. There is a good argument for this as reliefs provide an incentive to do something that a business might otherwise not want to or be keen to do. The view may be taken that it is not economically beneficial, or something else could be more beneficial. The noble Baroness raises the important issue of how to ensure that those parts of England and Wales, urban and rural, which suffer from poor connectivity can benefit from the relief provided to companies. Otherwise, such areas run the risk of falling further behind. We can all agree that the benefits that fibre can bring could be enormous for all parts of the UK.

Can the noble Lord, Lord Bourne, respond to the concern expressed by the noble Baroness, as we do not want to see parts of the country falling further behind? How can we ensure that this relief, welcome though it is, actually benefits those areas with the worst connectivity?

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, my noble friend Lord Bourne has left this one to me. I thank the noble Baroness and the noble Lord for their contributions. I realise the point that some of these issues raise. I will make some general comments on the points made by the noble Baroness, Lady Pinnock, and then come to the substance of the amendment.

The noble Baroness referred to billion-dollar companies—I presume she meant BT. The relief applies to all companies, large or small, because fibre-optic cable is the way of the future. We regard laying fibre-optic cable as a good thing, regardless of where it is and who lays it, so we leave it up to the market. This Bill is a fairly blunt instrument—merely an enabling measure; it was announced by the Chancellor and it is merely to allow the relief to take place. On the very understandable issue of where it should be directed, we have carried out a number of measures to effect that. We understand the issue about rural and hard-to-reach areas—and, indeed, some of the areas in our cities that do not have adequate broadband. The specific amendments do not necessarily address the broad thrust of some of the remarks made by noble Lords, and I will explain why we do not think the amendments are particularly helpful. They would mean that the reliefs provided for in the Bill on new fibre applied only to those areas that currently receive an average speed of less than 10 megabits per second. They would undermine a fundamental part of what we seek to achieve through the Bill. We want to ensure that businesses and households throughout the country, including rural areas and cities, have access to faster broadband. In fact, by the end of this year, 19 out of 20 premises will have access to superfast broadband.

The universal service obligation will provide a digital safety net by giving everyone in the country the legal right to request a connection to broadband speeds of at least 10 megabits per second by 2020. As noble Lords will know, we are also considering a voluntary proposal from BT in that respect. I stress that the 10 megabits per second is a safety net; we want as many people as possible to have access to superfast broadband or better, which is why we have set a target of 95% superfast coverage by the end of 2017, which will continue to be extended beyond that to at least 97% of premises.

We have delivered a series of measures to ensure that all areas can and do have access to the broadband speeds that they need. For example, Defra has just made available £30 million of funding under the rural development programme for England, targeted at supporting rural businesses and growth for broadband services in those areas with speeds of 30 megabits per second or faster where that is not currently available or planned. In the 2016 Autumn Statement, the Government announced more than £1 billion to support digital infrastructure, targeted at supporting the rollout of full fibre connections for future 5G communications. The first wave of projects for our local full fibre networks programme has been launched, and includes a mixture of urban and rural areas. We are soon to launch a challenge fund for local bodies to bid for access to £200 million, with all parts of the UK free to participate, and we anticipate a significant number of applications from predominantly rural areas. We think that those projects will encourage further commercial interventions to build and extend fibre networks.

We support better broadband in all areas, but we believe that the amendment would limit the rate relief to only those local authority areas with an average of less than 10 megabits per second, which would damage the rollout of faster broadband across the UK. First, it would mean that much of the new fibre to be installed to the premises—FTTP—would be excluded from the relief. To deliver a network that is fit for the future, we need more fibre everywhere, including in areas that currently get more than 10 megabits. This amendment could deter significant investment and have the perverse result that less full fibre—the gold standard of broadband technology—was actually deployed.

Secondly, the amendment would exclude from the rate relief new fibre in those villages and rural areas that do not currently have high-speed broadband but happen to fall within a local authority area which does on average have high speed broadband. It would mean excluding from the relief whole areas where support is needed and where the measures provided for in the Bill would make a difference. At the moment, less than 3% of premises across the UK receives under 10 megabits per second, so the amendment potentially excludes up to 97% of premises from the relief.

Therefore, I hope that the Committee will recognise that the amendments should not be included in the Bill. However, we agree that improving broadband in those areas with less than 10 megabits is a priority, which is why we have put in place the universal service obligation. The new fibre rate relief as proposed through the Bill will support that objective. I hope that, with this in mind, the noble Baroness will withdraw her amendment.

--- Later in debate ---

[Baroness Pinnock]

My Lords, obviously I support Amendments 4, 8 and 13 in the name of the noble Lord, Lord Kennedy, which draw attention to the issues that he has just spoken about. Amendment 15 in my name asks for an impact study after 12 months to see how effective the provision is. In this instance, there have been difficulties that I have struggled with, as with the earlier amendment proposing a local authority boundary for an assessment of an average 10 megabits per second.

In Amendment 15, I have used “rural” as an accepted definition of areas which, on the whole, have poor broadband connectivity. If this was accepted by the Government, obviously it could be extended to all parts of the country. I am focusing again on the need for the Bill to use public funds effectively, by targeting their impact where they can make the most significant difference. Subsection (2)(c) of my proposed new clause refers to mobile phone connectivity. This relates to the fact that until we get 5G coverage, which I believe will be in 2020—it could be a year or two later—connectivity will depend on fibre-optic cables going as far as the mobile phone masts. This will have a big impact on those many families who cannot afford broadband but rely on mobile phones for their connectivity everywhere. They rely on them for accessing public services, which are now digital by default. If they can, they also make job applications via their phones, rather than having broadband to the house. That is why I raise these issues today.

The fundamental part of the amendment is to have a pause or period in which the Government assess the impact of this rate relief and ask: is it doing what we hope it will do? Can we improve the quality of mobile phone coverage by ensuring that some of the fibre-optic cable that is laid goes to mobile phone masts, in preparation for 5G coverage?

[Lord Ashton of Hyde]

My Lords, I am grateful to noble Lords for laying out their amendments clearly. As the noble Lord, Lord Kennedy, said, these amendments are very much linked to the last group on which I answered—the first group today.

Amendment 4, which was moved by the noble Lord, Lord Kennedy, seeks to ensure that there is a requirement for recipients of the relief to,

“give due consideration … to rural and hard to reach areas”.

In a similar vein, the noble Baroness, Lady Pinnock, proposes an amendment to require a report on the impact of these measures on rural connectivity. Although I might support the spirit of these apparently reasonable amendments, I do not believe that they are necessary. I share the concerns of many noble Lords that rural and remote areas should not be left behind in the drive to improve and extend high-quality broadband connectivity. I declare an interest: I live in a rural area and am absolutely aware of the problems to which noble Lords have alluded.

The relief provided for in the Bill is available across England and Wales. No area is excluded or exempted, and we have engaged with the Welsh Government to support the application of the measure in Wales. Providers deploying fibre connectivity in the countryside will receive the same rates relief as those deploying in the hearts of our great cities. That is important because the problems of slow speeds are the same, regardless of where the household is located. When we talk about social deprivation, for example, it is still a problem in an inner city as well as a rural area.

Providers are free to deliver connectivity wherever the market allows. However, to ensure that people living and working in rural and remote areas can and do have access to the broadband speeds that they need, the Government have delivered a series of measures, which I mentioned in my previous answer—but I shall remind noble Lords of them just briefly. There is the superfast rollout programme, which is worth about £1.7 billion of public money. We are currently consulting on the broadband universal service obligation, which will apply across the United Kingdom, with at least 10 megabits per second. Then there is the local full fibre networks programme, worth £200 million, and the rural development programme for England at £30 million for broadband. Those measures have been a great success, with 45% of households with superfast in 2010 rising to 95% by the end of this year.

It is clear that the relief will be alongside a package of measures put in place by the Government to help spread to those living and working in rural and remote areas the benefits of economic growth and access to services that better broadband connectivity will bring. Together, they will also lay the foundations needed for the next generation of mobile technology, known as 5G, to which the noble Baroness, Lady Pinnock, referred.

The noble Baroness’s proposed new clause in Amendment 15 would require a report on the impact of the measure on rural connectivity. I support the outcome—that is, an understanding of the impact of Government’s action in this area—but my concern is that requiring a report on the impact on rural connectivity may have an adverse effect. Telecoms networks take time to plan and build, and investors rely on certainty. A report on the relief after 12 months is premature, given the time taken to deploy networks. My noble friend Lord Bourne will cover reporting arrangements in greater detail later, but my concern is that if the Government are required to report so soon, it could create uncertainty over whether the relief will continue, and lead to unintended consequences.

On subsection (2)(c) of the noble Baroness’s proposed new clause, on mobile coverage, I note that the main benefit of the measure to mobile will be in aiding the deployment of 5G. It will take longer than 12 months for the next generation of mobile technology to appear; we do not quite know what it is yet.

Of course, we will monitor the effectiveness of the scheme in providing new fibre, which will include rural areas, but we need to allow the sector appropriate time to build networks in all areas. Ofcom reports on infrastructure deployment every year, and we should see the impact of all the Government’s measures in this field in due course. In view of those explanations, I hope that the noble Lord will withdraw his amendment.

[Lord Kennedy of Southwark]

The Minister made the point, with regard to the amendment of the noble Baroness, Lady Pinnock, that 12 months may be too soon. After what period of time does he think a report would be useful? Would it be 12 months, 24 months or 36 months?

[Lord Ashton of Hyde]

Ofcom reports every year, so I do not think it would matter whether it is 12 months or 24. My point was specifically on mobile coverage for which the 12 months would not be appropriate, because 5G has not really been invented yet, so there certainly will not be any visible signs on mobile coverage. Essentially, we are saying that we want fibre-optic cable to be laid over all areas of the country to improve future mobile reception and also fibre to the premises, which is what the future gold standard is. We need it everywhere, not just in rural areas. While we accept that rural and hard-to-reach areas have a problem, I have laid down a series of other measures to deal with those areas specifically.

[Lord Kennedy of Southwark]

I thank the Minister for that response and for his response to my other question. I am happy at this stage to withdraw my amendment.

Battle of Passchendaele

Lord Ashton of Hyde Excerpts

Thursday 19th October 2017 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, I start by saying how grateful I am to my noble friend Lord Black for initiating this debate and to all noble Lords, both for making such moving speeches and for their kind words about the commemorations so far. Being the Minister responsible for the First World War commemorations is an honour, a great responsibility and, frankly, having listened to your Lordships’ speeches, rather humbling. I am also humbled because how does one sum up in 20 minutes speeches that have covered, in typical House of Lords fashion, subjects as varied as life and death, the meaning of life, art, the Royal Flying Corps, comradeship, mental health, the meaning of memory, fake news, the nature of sacrifice, the role of animals, the debate over military tactics, links to the Europe of today and, inevitably, Brexit?

Let me concentrate on what we have done to commemorate the third Battle of Ypres and how the First World War commemorations have extended across the country, with a little about 2018. As noble Lords have explained, the Battle of Passchendaele and the whole third Battle of Ypres is hugely significant: significant for the huge losses sustained, the horrific conditions and the lessons learned; significant in the context of the wider war, in trying to break the stalemate and increase attritional pressure on Germany and in regard to the U-boat threat outlined by the noble Lord, Lord West; significant for the impact at home on families that lost husbands, brothers, sons, and some daughters and sisters; and significant for the way the country was galvanised and reorganised to support those at the Front. Those losses affected communities across the country and across the world, and I hope noble Lords will agree that that has been commemorated appropriately by the Government.

The three months of fighting around Ypres in 1917, that would come to be known colloquially as Passchendaele, were marked by a series of events delivered by the Department for Digital, Culture, Media and Sport and its partners. The events were attended by their Royal Highnesses the Prince of Wales and the Duke and Duchess of Cambridge, their Majesties the King and Queen of the Belgians, and the Prime Minister, as well as thousands of descendants and members of the public.

The event on 30 July in Ypres, at the Commonwealth War Graves Commission’s Menin Gate, took place in the presence of 200 descendants of those commemorated on the gate, and built on the poignant service held there every night by the Last Post Association. It provided an opportunity for reflection and remembrance beneath the memorial, which records more than 54,000 soldiers who died before 16 August 1917 and have no known grave. That was followed by a public event in the Ypres market square, attended by thousands of members of the public and watched by some 1.5 million people at home in the UK. With performances by well-known actors, musicians, military personnel and the National Youth Choir of Scotland, it made the most of our artistic talent to pay tribute to those who passed through Ypres before us, many never to return. Of course, those losses were not just during the battle; in the days before the battle began, on average 500 men a day were killed by shelling alone.

The next day, a formal commemorative event at the Commonwealth War Graves Commission’s Tyne Cot cemetery focused on the third Battle of Ypres. Some 4,000 descendants of those who served at Ypres were present and another 1.3 million people watched live on the BBC in the UK. Those of us who were privileged to be there would, I think, also like to echo the comments of my noble friend Lord Black and the noble Lord, Lord Shipley, on the excellent work of the commission in maintaining those sites in perpetuity, in such a dignified way, and record our appreciation for the commission’s support in delivering the events. It was also particularly appropriate that, on the evening of the Menin Gate event, the chairman of the Last Post Association, Monsieur Benoit Mottrie, was awarded an honorary OBE in the Cloth Hall in Ypres by the Duke of Cambridge for,

“services to commemoration and remembrance of British and Commonwealth armed forces”,

recognising his huge contribution and that of the Last Post Association.

The events also saw the participation of nearly 100 National Citizen Service volunteers and participants in the Commonwealth War Graves Commission’s centenary intern scheme. They supported the delivery of events and were a visible presence throughout, interacting with descendants and families, from whom I heard many appreciative comments. They exemplified the theme of youth, to which I will come in a minute.

The events delivered huge media interest in print, online and on social media, reaching a broader audience than any of our previous events. The #Passchendaele100 hashtag reached 122 million potential impressions, engaging many people who had not previously connected with the centenary programme.

My noble friend Lord Black mentioned the impact on the Commonwealth. Australia and New Zealand have also recently delivered their own commemorative events in Ypres to mark their own significant dates. I understand Canada, whose troops finally took Passchendaele itself, will do so in November.

Throughout the centenary programme we have tried to reflect three themes: remembrance, youth and education. We believe the events ensured that the centenary was marked as widely as possible and that a new generation came to understand what Passchendaele means. This will also ensure that, as a nation, we appropriately commemorate the centenaries of 2018, which we will mark with a series of events. These include events to mark the appointment of Marshal Foch as commander-in-chief of the Allied armies in March, the centenary of the Battle of Amiens in August, and of course the Armistice on 11 November, which, suitably, next year falls on Remembrance Sunday.

There is also a wider government-led programme to help communities across the country to engage with the centenary. Historic England, working in partnership with the War Memorials Trust, Civic Voice and the Imperial War Museum, is helping communities rediscover, care for and conserve local war memorials. Funding is available for repair and conservation, and more than 300 projects have already shared £1.3 million of grants through the War Memorials Trust. There are also many projects taking place across the country funded by the Heritage Lottery Fund. I pay tribute to the work with the Heritage Lottery Fund of the noble Baroness, Lady Andrews, and thank her for explaining that. Since April 2010, the fund has awarded more than £90 million to more than 1,800 projects. Grants of between £3,000 and £10,000 for community projects are available via the Heritage Lottery Fund’s “Then and Now” programme. Applications will be accepted at any time up to 2019.

As my noble friend Lord Black mentioned, the Imperial War Museum’s Centenary Partnership programme, which now has more than 3,700 members from over 60 countries, helps to deliver a vibrant programme of events, activities and resources to enable millions of people to engage with the centenary. The Imperial War Museum also announced yesterday its “Women’s Work 100” programme, which will develop projects, collections and stories across the Centenary Partnership to explore the working lives of women during the First World War, including the very brave women who worked as nurses, very much on the front line. The women’s work collection is closely linked with the formation of the museum itself in 1917, and almost immediately plans were put in place to ensure that the role of women would be recognised and recorded. The centenary is a fitting opportunity to revisit the collection and highlight the enormous changes that occurred during the war.

For many people, an abiding memory of the Somme commemorations was 14-18 NOW’s “We’re Here Because We’re Here” project, which saw uniformed actors take to the streets of the UK. Its full plans for 2018 will be released early in the new year. So far its programmes have been experienced by 30 million people, of whom 4 million are aged under 16. The poppies sculptures, of which I know my noble friend Lord Black has been a great supporter, will also continue their tour of the country in 2018, having been to Derby, Belfast, Hull and Cardiff so far this year. Yesterday, my right honourable friend the Secretary of State announced that the poppies will appear at Hereford Cathedral, Carlisle Castle, Middleport Pottery in Stoke-on-Trent, the Imperial War Museum in London, Fort Nelson near Portsmouth and the Imperial War Museum North in Manchester in 2018.

As has been mentioned, the first day of the battle saw the most Victoria Crosses awarded on a single day during the First World War, including Army doctor Noel Chavasse’s posthumous bar to the VC that he had won on the Somme. I am pleased to say that the VCs of the First World War are being marked by the DCLG’s Victoria Cross commemorative paving stone project, which commemorates each Victoria Cross recipient by laying a memorial paving stone in their place of birth. Two Passchendaele VC winners, Captain Thomas Colyer-Fergusson and Second Lieutenant Dennis Wyldbore Hewitt, who were both born in Westminster, have been commemorated with paving stones in Victoria Embankment Gardens. They were also commemorated with the “Mud Soldier” statue displayed in Trafalgar Square in July by VisitFlanders.

More than 1,400 schools have visited the First World War battlefields as part of the Department for Education-led tour programme. The Great War Debate programme has seen 13 debates take place nationwide, with more than 1,200 young people having the opportunity to hear high-profile historians, including Sir Hew Strachan and Professor Annika Mombauer, bring a fresh perspective to their studies. The noble Lord, Lord Stevenson, asked how we could be sure what happened and suggested that the events should be multidimensional to address the subject in different ways. He might like to know that there is a four-day academic seminar on the Home Front led by Sir Hew Strachan. I hope that all the other events that I have described will achieve the multidimensional approach that we seek.

In conclusion, I pay tribute to the team at DDCMS who have worked so hard to deliver the commemoration—I was grateful for the kind words of the noble Lord, Lord Faulkner, about them; to the First World War advisory group, of which the noble Lord is a member; and to the work of the Prime Minister’s special representative for the First World War commemoration, Dr Andrew Murrison MP. Thanks to them and all our other delivery partners, I am confident that as we move to the final year of the centenary we will build on the achievements of the previous years and ensure we mark the tumultuous final months of the war in a fitting way. We owe it to those who served, fell or were wounded, in body or mind, to continue to ensure that they are remembered with admiration and gratitude.

Brexit: Creative Industries

Lord Ashton of Hyde Excerpts

Wednesday 18th October 2017 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, the creative industries are one of the UK’s greatest success stories, contributing more than £87 billion to the economy and around £20 billion in exports. The Government have been working closely with the creative industries to understand the impacts and opportunities presented by our decision to leave the EU, as well as working with them on an early sector deal, as part of the industrial strategy, to secure the sector’s continued prosperity and growth.

[Baroness Quin (Lab)]

My Lords, I draw attention to my specific interest in the register, although my Question relates to the creative industries more generally, which, as the Minister has acknowledged, have been a very successful area of our economy. I believe they have been the economy’s fastest-growing sector in recent years. Is the Minister aware of just how successful and influential the sector has been in formulating European policy, and how concerned it therefore is about a loss of influence in future, as well as some of the specific issues concerning market access, content and country origin, and of course funding? Will he assure us that these industries will be able to participate in those European policies and programmes that have been so successful in bringing jobs and opportunities to the United Kingdom?

[Lord Ashton of Hyde]

I absolutely agree with the noble Baroness that the creative industries have been not only European leaders but world leaders. As far as Europe is concerned, we absolutely want them to go on contributing in that way. That will be part of the negotiations. We want them to continue to be part of things such as the European creative fund. With regard to other EU funds, if various industries apply for grants the Chancellor has agreed to guarantee to continue paying those after we leave, until the project’s expiration.

[The Earl of Clancarty (CB)]

My Lords, for many working in the creative industries the most pressing concern is whether they will be able to travel to other countries in Europe at short notice to work. Some UK musicians travel within Europe more than 40 times a year. Surely in that and many other instances—the Minister will be aware that the advertising industry raised this concern yesterday—the implementation of visas will be unrealistic and detrimental to the sector.

[Lord Ashton of Hyde]

The noble Earl makes a good point and we are only too well aware of it. One of my department’s roles is to make sure that the aspects raised by the creative industries are known throughout government, in particular to the Department for Exiting the EU and the Home Office. My department is working closely with the Home Office and the Migration Advisory Committee.

[Lord Wigley (PC)]

My Lords, I declare an interest by way of my family involvement with the creative industries. May I pursue the thread of the previous question? The richness of the performing industries comes from their diversity—one thinks particularly of music—and the wealth and range of talent that has been brought over to the countries of these islands from continental Europe. Is there not a danger that those who live in the other 27 member states will perceive that there is a barrier to coming here and stop coming, which would impoverish the cultural scene in these islands?

[Lord Ashton of Hyde]

If they perceive that, there is that danger, so we must work very hard to make sure that that perception does not exist.

[Lord Cormack (Con)]

My Lords, while acknowledging and agreeing with everything that has been said and welcoming the tone of my noble friend’s responses, will he also recognise the enormous importance of collaboration and co-operation between the great museums and galleries of Europe? That has been responsible, among other things, for bringing some of the finest exhibitions not only to London but throughout Europe. It would impoverish us all and the generations after if there was an impediment to that.

[Lord Ashton of Hyde]

I agree with my noble friend. Collaboration in the cultural scene applies not only to Europe but to other countries in the world. We want to make sure that that collaboration continues and is improved. I mentioned Creative Europe. It is important as a fund not only for the relatively small amount of money that we have received but because it is a totemic fund that encourages partnership and enables us to take a lead role in that.

[Baroness Bonham-Carter of Yarnbury (LD)]

My Lords, I know that the Minister agrees that skills are key to the continued success of our creative industries, even more so now with the uncertainty of Brexit. Does he agree with the finding in Sir Peter Bazalgette’s recent review of the creative industries that it is imperative that the Government commit to designing the education and skills framework to support the sector? Will the Government look again at the proposed reforms to the EBacc and introduce a creative subject?

[Lord Ashton of Hyde]

On the first part of the question, we welcome Sir Peter Bazalgette’s report. The Creative Industries Council is looking at it and will take it into account when it produces its proposals for an early sector deal. Education is outside the remit of DCMS, but I am sure the noble Baroness’s point will have been noted by that department.

[Lord Cashman (Lab)]

My Lords, I refer noble Lords to my interests as set out in the register. May I point out the negative consequences of a reduction in freedom of movement for the pool of talent coming into and out of the United Kingdom, not least in the performing industries? Therefore, will the Minister make certain that the talent unions, such as the Writers’ Guild of Great Britain, Equity and the Musicians’ Union, producers and others are part of the consultation group that meets the Department for Digital, Culture, Media and Sport to iron out the problems that they foresee on the road to Brexit?

--- Later in debate ---

[Lord Ashton of Hyde]

We have had many conversations with subsectors in the creative industries, and we are certainly open to more. We know that access to talent and skills is a key concern for the creative industries. That is why we are working closely with the Home Office and the Migration Advisory Committee, through its consultation, to feed in the concerns and demands of the sector.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend accept what this Government and previous Governments have done to support creative industries through tax relief, from which Screen Yorkshire and the UK film industry have benefited? Will he use his good offices to ensure that these tax reliefs continue? I should declare my interest as I was a shadow Minister campaigning for these tax reliefs and subsequently benefited from them.

[Lord Ashton of Hyde]

I certainly accept the remarks of my noble friend. For example, since film tax relief was introduced in 2007, 2,070 films have been made accounting for £8.9 billion of UK expenditure. Only recently, we introduced tax relief for children’s television programmes and theatre tax relief, and we hope to continue to do so.

[Lord Stevenson of Balmacara (Lab)]

The Minister mentioned the Bazalgette report, commissioned by the former chairman of the Arts Council, which we welcome. It is a wide-ranging view of what needs to be done in the creative industries to make sure they are a success. As a former Treasury Minister, the Minister might be interested in two or three of the points which play to his strengths, I am sure. Will he advise us of where we are on the review looking at whether the current HMT definition of R&D tax credits captures legitimate R&D activity in the creative industries, which goes back to the film tax point that has just been made? Will he also explain why the creative industries fail to get virtually anything from Innovate UK funding? Currently only 2% goes to the creative industries.

[Lord Ashton of Hyde]

The Creative Industries Council is reviewing the suggestions in the Bazalgette review, which we commissioned. There are many of these, the most important being the proposal for creative clusters. The council expects to come back to the department with its proposals by the end of the year. I am not sure why Innovate UK supplies only 2%. Nevertheless, as the noble Baroness, Lady Quin, said, the creative industries have been a tremendous success story and are growing at one and half times the rate of the rest of the economy.

Channel 4: Privatisation (Communications Committee Report)

Lord Ashton of Hyde Excerpts

Tuesday 17th October 2017 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, I am grateful to the noble Lord, Lord Best, and his committee for all their work on this subject, and to all noble Lords for their interesting contributions today. I welcome the noble Lord, Lord Griffiths, who has just spoken in his first outing on DCMS. I congratulate him on his speech and look forward to many further contributions from him on DCMS subjects in future.

I also thank noble Lords who approve of the Government’s actions on this matter, a somewhat rare and pleasant experience for a member of the Government. Clearly things have moved on somewhat since the committee’s report was published last summer, but the issues raised remain vital in ensuring a successful future for one of the UK’s most important cultural assets. I am therefore very pleased to be here today and to have the opportunity to listen to noble Lords’ views and set out the Government’s position.

Channel 4 is an important part of the UK’s broadcasting landscape, as the noble Lord, Lord Best, laid out clearly at the beginning of the debate. Commercially funded yet publicly owned, and operating as a “publisher-broadcaster”, it has a unique role in providing for audiences and stimulating the wider creative industries. Channel 4’s remit includes requirements to be distinctive, to innovate, to promote alternative views and new perspectives and to appeal to a culturally diverse society. In the 35 years since it was launched, it has made an indelible mark on UK culture and society. The noble Lord, Lord Best, and my noble friends Lord Sherbourne and Lord Holmes mentioned the Paralympics as an example of landmark programming.

Yet the channel faces challenges from what is a very fast-changing broadcasting landscape, particularly given its reliance on advertising revenues, a challenge highlighted by developments in the advertising market over the last year or so. Channel 4 is a public asset. It is therefore entirely sensible for the Government to consider from time to time how best to secure its future, including whether it would be better placed to succeed under private ownership. As noble Lords will be aware, the Government set out earlier this year that Channel 4 will remain publicly owned. I know this was welcomed by members of your Lordships’ Communications Committee, as confirmed today by the noble Lord, Lord Best. I reaffirm today the Government’s commitment to a publicly owned future for Channel 4. I hope that will partially reassure—temporarily, at least—the noble Lord, Lord Birt.

As a publicly owned broadcaster, though, Channel 4 must deliver value for the public who own it. That value can come in different forms, as the noble Baroness, Lady Kidron, pointed out, both on screen and off. Off-screen, Channel 4 has delivered value through its pivotal role in the development of the UK’s independent production sector. The sector is now world-renowned, generating £3 billion of revenue each year. Channel 4 provides on-screen value by delivering the remit prescribed in legislation and in meeting the programming quotas set by Ofcom. My department’s written evidence to the committee’s inquiry set out that:

“The government regards C4C’s ability to deliver against its remit and maximise public value in a sustainable manner as a priority”.


Channel 4 has a strong record in many areas of its remit—as the noble Baroness, Lady Kidron, says, in some areas it exceeds it—but there is room for improvement. The committee concluded, as the right reverend Prelate the Bishop of Chelmsford has reminded us today, that the current programming for older children and young adults is “unsatisfactory”, echoing concerns raised by Ofcom over recent years. We have made it clear that we expect a stronger commitment from Channel 4 in this area. We have also given Ofcom new powers through the Digital Economy Act to impose children’s content quotas if it deems that necessary. The provision of other areas of core public service content, such as arts programming, has also been low. More broadly, the Government have also made it clear that we want Channel 4 to deliver even more of the innovative and challenging public service programming that it was set up to offer. We look forward to seeing how the new chief executive and director of programmes take on this challenge.

Both on and off-screen, we believe Channel 4 must deliver value for the whole country that owns it. This means contributing to balanced economic growth, stimulating creative industries and serving audiences across the UK. I am grateful to the noble Baroness, Lady Quin, for her support—albeit, I have to say, slightly geographically qualified—for this concept. PACT, the TV production trade body, has found that of the £2 billion budget for UK productions in 2016 just 32% was spent outside London. Similarly, only one-third of UK production-sector jobs are based outside London. As has been mentioned, only 3% of Channel 4’s staff are based outside London, and it spends around twice as much on programming made in London as in the rest of the UK combined. Furthermore, earlier this year Ofcom said it had concerns about Channel 4’s representation of people in the nations and regions.

We feel that decisions about Channel 4’s programming should not all be made in the bubble of Westminster. Very importantly, people seeking to work in the media should not feel that they have to move to London. This is a barrier not only to people from different regions but to people of less affluent financial backgrounds. This point was ably made by the noble Lord, Lord Storey.

The transformation of Salford’s MediaCity over the past decade, led by the BBC, is truly impressive. With more than 250 companies employing more than 7,000 people, it has become a world-class cluster. It demonstrates that the television sector in the UK does not have to be all about London, but I accept that the BBC and Channel 4 are not an exact parallel, and I would not claim them to be.

As a result, we launched a consultation earlier this year on how Channel 4 could increase its regional impact, primarily through moving staff and increasing commissioning. We published the results of this consultation last month. The overwhelming majority of respondents stated that Channel 4’s regional impact would be enhanced if more of its people and activities were located outside London. A significant majority further agreed that increasing Channel 4’s commissioning quotas, as mentioned by the noble Lord, Lord Razzall, and my noble friend Lord Holmes, would be an appropriate and effective way to enhance Channel 4’s impact in the nations and regions. Alongside the consultation, we have commissioned external consultants to analyse the potential regional economic benefit and cost of relocation and increasing commissioning in the nations and regions. This will be published imminently, and we will see whether it addresses the points made by the noble Lord, Lord Gordon.

As the Secretary of State set out in her speech at the Royal Television Society last month:

“TV must reflect the real world and the country that we live in”.


Relocation may not mean relocation of the whole business, but the Government are clear that Channel 4 must have a major presence outside London. We are also very interested in the potential for Channel 4 to increase its commissioning in the nations and regions.

We look forward to working with Channel 4’s incoming chief executive, Alex Mahon, who is due to start at the beginning of next month. We await her plans for Channel 4, and will continue to work closely with the channel over the coming months. This will not be an overnight process, I reassure the noble Lord, Lord Griffiths, but we hope to reach agreement with Channel 4 on the direction forward by the end of the year.

A couple of points were raised during the debate. I cannot let the comments of the noble Lord, Lord Razzall, about diversity on the board go unanswered. Last year, the Secretary of State approved the appointment of four individuals who met the job descriptions of the post, which was advertised by Ofcom, out of the five put forward by Ofcom, so it was very much in answer to the specific job descriptions that they were selected. Ofcom is currently undertaking a process to recruit three new non-executives to the Channel 4 board, and I am confident that it will make every effort to ensure a diverse field of candidates.

The noble Baroness, Lady Quin, made the very reasonable point that we cannot expect Channel 4 to solve the regional deficit on its own. We agree, and we do not think that there is a direct comparison with the BBC, but it is true that more than half the BBC’s public service staff are outside London, whereas 97% of Channel 4’s staff are in London. We feel that, as a publicly owned broadcaster, it must do more for the whole country.

In conclusion, Channel 4 is a vital public asset, it is one that we support, and it will remain so. In continuing under public ownership, the Government are clear that Channel 4 must play its part in a country that works for everyone. It should strengthen the creative industries that are such a successful part of our economy and provide a platform for new voices and untold stories from across the UK, celebrating the diversity mentioned by the right reverend Prelate.

I again thank the committee for its work on this important matter, and I look forward to returning to discuss progress on these issues in due course.

Smoking: Broadcasting Code

Lord Ashton of Hyde Excerpts

Wednesday 11th October 2017 Lords Chamber

[Lord Storey]

To ask Her Majesty’s Government whether they plan to strengthen the broadcasting code in relation to smoking on reality TV shows, particularly those aimed at young people.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde)]

My Lords, as the independent regulator, decisions on amending the Broadcasting Code are rightly a matter for Ofcom. Ofcom takes the protection of children and young people very seriously, and that is why there are already specific restrictions on the portrayal of smoking on television.

[Lord Storey (LD)]

I thank the Minister for his reply. I do not know whether he is a regular watcher of “Love Island”, but the ITV website describes that programme as an,

“emotional feast of lust and passion in the sun”.

The same website says that the programme captures,

“56% share of 16-34 viewers”.

On this programme, those contestants are regularly smoking. What message does that send to young people—that I can live a glamorous life if I smoke as well? I am surprised that the Ofcom Broadcasting Code says that smoking must not be,

“glamorised in … programmes likely to be widely seen, heard or accessed by under-eighteens unless there is editorial justification”.

Does the Minister think that Ofcom should take action on this matter?

[Lord Ashton of Hyde]

My Lords, I am not a regular watcher of “Love Island”, but I cannot help noticing that the House is unusually full today. Obviously, as I said, it is a matter for Ofcom. The Broadcasting Code is there to be regulated by Ofcom, and that is what Ofcom is there for. Any complaints about a programme will be investigated by Ofcom, and it is up to anyone who has concerns about smoking in this programme to complain to Ofcom. Incidentally, to put this into perspective, Ofcom had just under 15,000 complaints last year and 75 related to smoking on “Love Island”.

Data Protection Bill [HL]

Lord Ashton of Hyde Excerpts

2nd reading (Hansard): House of Lords
Tuesday 10th October 2017 Lords Chamber

Moved by

[Lord Ashton of Hyde]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, I am delighted to be moving the Second Reading today and look forward gratefully to the help of my right honourable friend the Minister of State at the Home Office and my noble friends Lady Chisholm and Lady Vere.

New technologies have started innumerable economic revolutions, and the pace of change continues to accelerate. It is 20 years since we passed the last Data Protection Act, and since then we have seen the explosive growth of the world wide web, the rise of social media and faster and faster connectivity, powering new devices like the smartphone. The nature of developing technologies such as artificial intelligence and machine learning suggests that continuing transformation and change is the norm.

This has not escaped the notice of your Lordships’ House. Earlier this year we debated many of these issues in the new Digital Economy Act. We have a new Select Committee to examine artificial intelligence, chaired by the noble Lord, Lord Clement-Jones, who is not able to be in his place today as the committee is hearing evidence this afternoon. In March, the Communications Committee published a timely report on growing up with the internet, and just before the Summer Recess the EU Select Committee gave us a very helpful report on data protection. Just yesterday I moved the Second Reading of the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill, which will help pave the way for a full-fibre future and 5G. Personal data is the fuel of all these developments. Data is not just a resource for better marketing, better service and delivery. Data is used to build products themselves. It has become a cliché that data is the new oil.

Twenty years ago data protection rights were used to obtain a copy of your credit record or to find out what information about you a public authority had collected. Today we worry daily about cyberattacks, identity theft and online crime. But we are fortunate that our existing laws have protected us well. For all the technological change I have described, we have successfully preserved our rights and freedoms, and we have strong oversight in the shape of an internationally respected Information Commissioner.

Looking ahead, we have three objectives. First, with all this change we need to maintain trust. Data must be secure, with transparency over how they are used and a proportionate but rigorous enforcement regime in place. Secondly, we must support future trading relationships. The free flow of data across international boundaries, subject to safeguards, must be allowed to continue. Thirdly, we must ensure that we can continue to tackle crime in all its guises and protect national security, making sure that our law enforcement agencies can work in partnership domestically as well as internationally.

The Data Protection Bill meets these objectives. It will empower people to take control of their data, support UK businesses and organisations through the change, ensure that the UK is prepared for the future after we have left the EU, and, most importantly, it will make our data protection laws fit for the digital age in which an ever increasing amount of data is being processed. The Bill meets and exceeds international standards, and, with its complete and comprehensive data protection system, will keep the UK at the front of the pack of modern digital economies.

The Bill makes bespoke provision for data processing in three very different situations: general data processing, which accounts for the vast majority of data processing across all sectors of the economy and the public sector; law enforcement data processing, which allows the effective investigation of crime and operation of the criminal justice system while ensuring that the rights of victims, witnesses and suspects are protected; and intelligence services data processing, which makes bespoke provision for data processed by the three intelligence agencies to protect our national security.

The reform of protections for the processing of general personal data will be of greatest interest to individuals and organisations. We are setting new standards for protecting this data in accordance with the general data protection regulation, known as the GDPR. Individuals will have greater control over and easier access to their data. They will be given new rights and those who control data will be more accountable.

In our manifesto at the general election we committed to provide people with the ability to require major social media platforms to delete information held about them, especially when that information related to their childhood. The new right to be forgotten will allow children to enjoy their childhood without having every personal event, achievement, failure, antic or prank that they posted online to be digitally recorded for ever more. Of course, as new rights like this are created, the Bill will ensure that they cannot be taken too far. It will ensure that libraries can continue to archive material, that journalists can continue to enjoy the freedoms that we cherish in this country, and that the criminal justice system can continue to keep us safe.

The new right to data portability—also a manifesto commitment—should bring significant economic benefits. This will allow individuals to transfer data from one place to another. When a consumer wants to move to a new energy supplier, they should be able to take their usage history with them rather than guess and pay over the odds. When we do the weekly supermarket shop online, we should be able to move our shopping list electronically. In the digital world that we are building, these are not just nice-to-haves; they are the changes that will drive innovation and quality, and keep our economy competitive.

The Bill will amend our law to bring us these new rights and will support businesses and others through the changes. We want businesses to ensure that their customers and future customers have consented to having their personal data processed, but we also need to ensure that the enormous potential for new data rights and freedoms does not open us up to new threats. Banks must still be allowed to process data to prevent fraud; regulators must still be allowed to process data to investigate malpractice and corruption; sports governing bodies must be allowed to process data to keep the cheats out; and journalists must still be able to investigate scandal and malpractice. The Bill, borrowing heavily from the Data Protection Act that has served us so well, will ensure that essential data processing can continue.

Having modernised our protections for general data, in Part 3 the Bill then updates our data protection laws governing the processing of personal data by the police, prosecutors and other criminal justice agencies. The Bill will strengthen the rights of data subjects while ensuring that criminal justice agencies can continue to use and share data to investigate crime, bring offenders to justice and keep communities safe. The Bill does not just implement the recent directive on law enforcement data protection; it ensures that there is a single domestic and transnational regime for the processing of personal data for law enforcement purposes across the whole of the law enforcement sector.

People will have the right to access information held about them, although there are carefully constructed exemptions to ensure that investigations, prosecutions and public safety are not compromised. People will always have the right to ensure that the data held about them is fair and accurate, and consistent with the data protection principles.

Part 4 protects personal data processed by our intelligence agencies. We live in a time of heightened and unprecedented terrorist threat. We are all grateful for the work done to protect us, especially by those whom we see every day protecting us in this House. The intelligence services already comply with robust data-handling obligations and, under the new Investigatory Powers Act, are subject to careful oversight. My noble friend Lady Williams signed the latest commencement order in August to bring into force provisions relating to the oversight of investigatory powers by the Investigatory Powers Commissioner and the other judicial commissioners.

Data processing by the intelligence agencies requires its own bespoke data protection regime, not least because the GDPR standards were not designed for this kind of processing and data processing for national security purposes is outside the scope of EU law. That is why this part of the Bill will instead be aligned with the internationally recognised data protection standards found in the draft modernised Council of Europe Convention for the Protection of Individuals with Regard to the Processing of Personal Data.

Noble Lords will be familiar with the role of the Information Commissioner, whose role is to uphold information rights in the public interest, promoting openness by public bodies and data privacy for individuals. The Bill provides for her to continue to provide independent oversight, supervising our systems of data protection, but we are also significantly enhancing her powers. Where the Information Commissioner gives notices to data controllers, she can now secure compliance, with the power to issue substantial administrative penalties of up to 4% of global turnover. Where she finds criminality, she can prosecute.

The Bill modernises many of the offences currently contained in the Data Protection Act, as well as creating two new offences. First, as recommended by Dame Fiona Caldicott, the National Data Guardian for Health and Care, the Bill creates a new offence of the unlawful re-identification of de-identified personal data. To elaborate, huge datasets are used by researchers, as well as by those developing new methods of machine learning, and these are often pseudonymised to protect individual privacy. We need to ensure that those who seek to gain through re-identification are clear that we will not tolerate assaults on individual privacy, nor on the valuable data assets that are fuelling our innovative industries.

Secondly, the Bill creates a new offence of altering or destroying personal data to prevent individuals accessing it. Such an offence is already in place in relation to public authorities, but now it will apply to data controllers more generally. We are equipping the commissioner with the powers to deal with a wider range of offending behaviour.

Cybersecurity is not just a priority for the Government but a deep running concern of this House. Effective data protection relies on organisations adequately protecting their IT systems from malicious interference. Our new data protection law will require organisations that handle personal data to evaluate the risks of processing such data and implement appropriate measures to mitigate those risks. Generally, that means better cybersecurity controls.

Under the new data protection framework, if a data breach risks the rights and freedoms of an individual, data controllers—both for general data and law enforcement purposes—are required to notify the Information Commissioner within 72 hours of the breach taking place. In cases where there is a high risk, businesses must notify the individuals concerned. This landmark change in the law will put the need for serious cybersecurity at the top of every business priority list and ensure that we are safer as a nation.

As we move into the digital world of the future, the Data Protection Bill will both support innovation and provide assurance that our data is safe. It will upgrade our legislation, allowing the UK to maintain the gold standard in this important field. Of critical importance, strong protections of personal data are the key to allowing free flows of data to continue between the EU and UK as we build a new partnership. I look forward to hearing noble Lords’ comments on the Bill. I beg to move.

Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Lord Ashton of Hyde Excerpts

2nd reading (Hansard): House of Lords
Monday 9th October 2017 Lords Chamber

Moved by

[Lord Ashton of Hyde]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, I am very pleased to be able to assist my noble friend Lord Bourne in moving the Second Reading of this short but vital Bill.

In our modern world, businesses and individuals depend on being connected, and the ways in which this happens are becoming more and more diverse. We are fast moving beyond mere mobile phones to increasingly digital communications, and in the future this will include ultrafast broadband technology and 5G—the next generation of mobile connectivity. Fibre is crucial to both of these. The Bill will support that progression for both fixed and mobile or wireless networks by delivering a vital part of the Government’s package on fibre investment. The Bill will provide the framework to implement the Chancellor’s promise in the Autumn Statement 2016 to allow 100% business rate relief for new fibre up to 2022.

Many noble Lords have raised the problems of slow internet or poor mobile phone services. These matters are important to people. They affect the enjoyment of their lives and the success of their businesses. By delivering world-class connectivity we can transform our public services, bringing efficiencies to business and improving the lives of individuals. Central to this challenge is providing the digital infrastructure that can support these demands. All these connections rely on more fibre-optic cable. Fibre is the gold standard, and we are committed to delivering it, but we have heard concerns from operators that business rates acts as a barrier to that investment.

The commitment given at the Autumn Statement in 2016 will mean that new fibre investment made after April 2017 will not be subject to business rates until 2022. Telecom operators will continue to pay rates on their existing network, alongside all other ratepayers who pay business rates on their business properties, but by providing a temporary relief for new fibre we will give this sector the boost it needs to meet demand. The sector has been calling for this and telling us it will make a difference in the delivery of new fibre. We have made great progress in the last few years to improve connectivity across the UK. Superfast broadband is already available to 93% of homes and businesses; we are on track to reach 95% by the end of the year. We want to go further and providing rate relief on new fibre will help achieve this goal.

We will have the opportunity to discuss the Bill in more detail in Committee but I will briefly outline what it does. This short Bill contains six clauses and, essentially, gives us the powers we need to deliver the relief through regulations. The first three clauses contain the powers for those regulations covering occupied and unoccupied properties on local rating lists, and those on the central rating list held by the Secretary of State. The remaining three clauses deal with consequential and financial matters, allowing the relief to be backdated to 1 April 2017.

In order to calculate how much relief should be awarded on telecom networks, the regulations made under these powers will require the valuation officer to issue a certificate of the rateable value attributable to the new fibre. This will then be used by the local authority to calculate the amount of relief which should be awarded, ensuring that we will give relief only on the new fibre and not on any existing networks. We have already published draft regulations, in August, explaining how this will work and started discussions with the sector on its implementation. Consultation on the draft regulations will run for 12 weeks. The Valuation Office Agency will also hold discussions with the sector on how the relief will operate in practice. So I hope noble Lords will appreciate that we have already explained how the powers will work, thereby ensuring that the scheme operates smoothly.

More widely, the Bill is just one of several measures we are taking to boost Britain’s connectivity, including our ambition for more fibre. Over the summer we announced more details of the universal service obligation, so that every household will be able to get acceptable broadband by 2020. This will provide a vital safety net to ensure that no one is left behind. In the Digital Economy Act we reformed the Electronic Communications Code, which regulates agreements between site providers and communications operators, to make it easier to deploy, maintain and upgrade electronic communications infrastructure. We are also forming a dedicated team to look at how government can remove barriers to deployment, which will work with other departments and industry.

We will see a more competitive market as a result of the agreement between BT and Ofcom to separate out Openreach. A legally separate Openreach will serve not just all its customers but the whole of the United Kingdom. We are supporting fibre rollout through a £400 million Digital Infrastructure Investment Fund. This will help accelerate the rollout of fibre by providing better access to commercial finance for alternative developers of full-fibre infrastructure. In turn, that will help smaller operators compete with larger players. The Government’s investment will be at least matched, on the same terms, by private sector investors. As a result, we expect to see private sector investment into full-fibre broadband reach around £1 billion overall. We are also investing £200 million in our local full-fibre programme, supporting local bodies to stimulate new fibre development.

In total, our efforts are worth £1.1 billion to support the sector, and once this Bill receives Royal Assent the Department for Communities and Local Government and the Valuation Office Agency will move quickly to implement the rate relief for new fibre retrospectively to 1 April 2017. We want to see a country where people are better connected, where everyone can get online and reach their full potential and where no one is left behind. This Bill provides a step on that journey. I beg to move.

Gaming Machines

Lord Ashton of Hyde Excerpts

Tuesday 12th September 2017 Lords Chamber

[Lord Clement-Jones]

To ask Her Majesty’s Government what progress they have made with their Review of Gaming Machines and Social Responsibility Measures.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, the review generated a lot of interest from the general public, as well as from a variety of interest groups, local authorities, trade bodies and industry. As the Minister for Sport and Civil Society made clear in the other place before the Recess, any announcement will not be made until October at the earliest.

[Lord Clement-Jones (LD)]

My Lords, that is not an unexpected reply. Does the Minister accept that the NatCen report published last month provides clear evidence that 43% of FOBT users are either problem or at-risk gamblers? In that light, does he accept that it is high time that the Government end their internal debate, override the Treasury objections and act to reduce the committed stake and slow the speed of play on these dangerous machines without any further delay?

[Lord Ashton of Hyde]

My Lords, the noble Lord has misunderstood several things. First, the Chancellor has said publicly that he fully supports the work of the DCMS to ensure that the UK’s gambling regime continues to balance the needs of vulnerable people, consumers who gamble responsibly and those who work in this sector. Of the 2.38 million who are at risk, 1.4 million are at low risk, and I completely understand the noble Lord’s point about 430,000 problem gamblers being 430,000 too many. That is exactly why we are having the review, which we hope will be published soon. We will then be able to do something about it, depending on what the options are.

[Lord Hughes of Woodside (Lab)]

In his Answer, the Minister referred to October. October of which year?

[Lord Ashton of Hyde]

Actually, I said not before October, and I meant 2017.

[Baroness Walmsley (LD)]

My Lords, younger gamblers, aged 18 to 24, have a greater propensity to develop problem gambling and mental health issues. They do it mostly online, which is very quick and easy. What will the Government do to reduce the volume of gambling advertising, particularly at sporting events? In many cases, the tone of this advertising is very clearly aimed at young people.

--- Later in debate ---

[Lord Ashton of Hyde]

That is a valid point. Although there is a watershed protecting young children, it does not apply to live sporting events. Advertising—as well as other social responsibility issues—is included in the review, which will be published soon.

[Baroness Manzoor (Con)]

My Lords, one has only to walk down the high street in some of the very poor areas in our cities to find that every other shop appears to be a gambling place. Will the Minister look at planning laws as part of the review, to ensure that some of these gambling shops, or casinos or whatever they are, can be limited in number?

[Lord Ashton of Hyde]

I am pleased to say that the review includes in its scope the numbers and locations of gaming machines within shops. But this is not a review of planning law—that was not included

[Lord Collins of Highbury (Lab)]

My Lords, the fact is that this review is long overdue. The Minister has reassured the House on previous occasions about when it will be published. In the meantime, thousands of people suffering from problem gambling are left vulnerable. The Government need to act, and act promptly, on this matter. There must be a holistic approach. It is not just FOBTs, although they are a great problem, but the issue of how easy it is now to bet, particularly online. With mobile phones you can be anywhere in the world and bet a fortune. The Government must act.

[Lord Ashton of Hyde]

That is exactly why, within the review, the issues of social responsibility and advertising are covered, including online gambling. We agree that there are issues to be dealt with. That is why we have the review and why it will be published. But there must be an evidence-based approach. There will be a consultation to make sure that, for example, action cannot be subject to judicial review.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I speak as a former Home Office Minister responsible for these matters. In this area of gambling in particular and its effects on society, does my noble friend not agree that, however well he may be performing these responsibilities in his department, it might be a good idea for the Government to transfer them back to the Home Office, where proper regulation can be applied?

[Lord Ashton of Hyde]

I had not considered that issue, I must admit, but I do not think it is for me to comment.

[Lord West of Spithead (Lab)]

My Lords, talking of gaming machines and games of chance, Lady Emma Hamilton enjoyed games of chance and 224 years ago yesterday she met Nelson—an affair of the heart. On Nelson’s heart was engraved “lack of frigates”. He had some 284 of them. Today, the Government are committed to maintaining only 19 escorts. Does the Minister think we should have a somewhat better aspiration, or it may be engraved on all our hearts?

[Lord Ashton of Hyde]

I am afraid I had not thought about that.

[Lord Smith of Hindhead (Con)]

My Lords, will the Minister update the House about what the Government are doing to make online gambling safer for consumers, particularly in relation to operators based outside of the UK with British customers?

[Lord Ashton of Hyde]

Online gambling was brought under the regulatory regime in 2014. One of the main ways of dealing with this is to approach the payment providers. If an unlicensed gambling operator is not obeying the regulations, they will be prevented from operating with the payment providers. There is not much point in them operating if they cannot get paid.

Digital Understanding

Lord Ashton of Hyde Excerpts

Thursday 7th September 2017 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, I am very grateful to the noble Baroness and everyone who has contributed to the debate. I have 10 minutes and about 50 minutes’ worth of material, so I will speak fast and hope I will be able to answer some questions.

This is obviously an extremely important subject, as demonstrated by the contributions around the House. I have certainly enjoyed the debate. As everyone has said, there are good things and bad things about our digital world, but the genie is well and truly out of the bottle. The noble Lord, Lord Sugar, expressed it more succinctly: “Get over it”, he said. We will have to cope and I will try to explain how we will.

We have three overarching goals for digital technology. First, we want the country to continue to be what it is today—a world-leading digital economy and the best place in the world to innovate with technology and to start and grow a digital business. Secondly, we want all the benefits of digital to be enjoyed by everyone, rather than be the exclusive preserve of tech professionals. Thirdly, we are committed to making the UK the safest place in the world for users to be online. I will come to the point that the noble Lord, Lord Stevenson, mentioned.

The noble Baroness, Lady Lane-Fox, is right to highlight the importance of awareness and understanding in accomplishing these goals, but we need the skills to be in that position. I do not have time to outline them, but we are making enormous efforts to develop and enhance these digital skills. If I have time, I will come to some of the educational areas that we are looking at. If not, I will certainly write to everyone who has asked a question which I have not managed to get to.

Thanks to these efforts, we are in a position of relative strength on digital skills internationally. However, that is just one part of the story. Increasingly, people need digital skills in every aspect of their lives: shopping, doing their taxes and getting the best healthcare. So we are taking action on every category of digital skills: basic skills, the general skills needed in most jobs, and advanced skills for specialist roles such as cybersecurity. I will not go through those now, because it is important to focus on what the noble Baroness outlined in her very good opening speech.

The technology promises bountiful opportunities and rewards, but it comes with challenges and threats. These threats are to our security, privacy, emotional well-being, mental health and safety—especially the safety of children. Society’s norms, rules and institutions must all evolve so that technological progress delivers a better world for everyone. That is the underlying thinking behind the digital charter that the UK Government will introduce. It will set out a framework for how businesses—including the huge digital corporations mentioned by the noble Lord, Lord Giddens—individuals and wider society should act in the digital world. This is absolutely not just a task for the Government. Over the coming months we will work with businesses, academics, charities and the wider public to build consensus around what this framework should be.

An important part of that work will be the publication of the internet safety strategy Green Paper. This will ask for views on a range of options to counter internet harms. We talked a lot about that in the progress of the Digital Economy Bill last year. Through the strategy, we want to agree the balance of responsibilities shared by technology companies, teachers, parents and the Government in keeping people safe online.

I turn to the difficult issue of social media. The Digital Economy Act requires the establishment of a code of practice, to be issued and reviewed if necessary by the Secretary of State. This will offer guidance to providers of social media platforms on action it may be appropriate to take against users of the platform who engage in intimidating or insulting behaviour. We expect online industries to ensure that they have relevant safeguards and robust processes in place and to act promptly when abuse is reported. The data protection Bill will give individuals more control over their data. We are working also towards an international consensus, which is so important in this area.

I return to the concept of digital understanding. The Government have put forward the idea of establishing a data use and ethics body, which will I believe address some of the examples given by the noble Lord, Lord Janvrin. This will establish a sound ethical framework for understanding how data can and should be used. It will address both the needs of the present and the challenges emerging on the horizon as data use becomes ever more sophisticated. Importantly, it will ensure that the public have confidence that their data are being handled properly, that businesses have the assurance that they are handling data with integrity, and that regulators and Parliament are equipped to identify and guard against abuse. We will be very interested in people’s views, and the body will consult widely. Since we mentioned it in a debate in this House in July, we have been working with stakeholders such as the Nuffield Foundation, the Royal Society and the British Academy to identify the roles and functions. So the Government are working with the public, tech companies, education and training providers, and charities such as that of the noble Baroness, Lady Lane-Fox, Doteveryone, on this vital agenda.

I will quickly come to as many of the questions as I can. The noble Lord, Lord Janvrin, asked if digital was a priority of this Government. I confirm that it is a priority—which is reflected in the fact that my department has now been renamed the Department for Digital, Culture, Media and Sport. The noble Baronesses, Lady Lane-Fox, Lady O’Neill and Lady Kidron, asked whether we would make a clear articulation of values online. We absolutely agree with the importance of articulating those, which of course is why we are going to introduce a new digital charter and set out a framework, as I mentioned. Our starting point is that the delicate and careful limits that we have honed over generations for life offline should apply online, too.

It is true that I went to inspect my noble friend Lord Cathcart’s broadband, which I would describe as slow but sure. However, being serious, this is difficult. We are on track to reach 95% superfast broadband. For the 5%, there are problems, but I assure my noble friend and the noble Baroness, Lady Murphy, that, in her words, there has been real government support for this. More than £24 million of central government funding has been allocated to better broadband for Norfolk. That has been matched by local council funding, which means that more than 173,000 additional homes and businesses are able to access superfast broadband in Norfolk. I accept that, for people who do not have it, this is a real problem—I have experienced it myself. But I also commend what the right reverend Prelate said about WiSpire fixed wireless providers. They would be particularly appropriate in Norfolk—which, as we know, is very flat.

[Baroness Murphy]

Could I just ask the Minister whether he has seen trees in Norfolk?

[Lord Ashton of Hyde]

I did not quite hear that.

[Baroness Murphy]

Trees.

--- Later in debate ---

[Lord Ashton of Hyde]

I realise there are trees in Norfolk. I would have mentioned to my noble friend Lord Cathcart the work we have done on bringing forward 5G, but as he does not have a mobile telephone, there is no point.

The noble Lords, Lord Maxton and Lord Baker, talked about joined-up government activities on education. I cannot go into all the details now—I would be happy to write to the noble Lord—but the DfE is working closely with the DCMS in improving communication and coherence in digital skills. As an example of that, we have DfE officials in the Box today. We were the first country to mandate computing sciences in both primary and secondary schools. As I have said, I will write further to the noble Lord on our whole education provision.

The noble Lord, Lord Maxton, will remember that in the Digital Economy Act we took some time to talk about data in government departments and how they could be used, subject to relevant safeguards. We are making progress with that, but it is very difficult and we have to be careful with the safeguards. None the less, we have made a lot of progress. ID cards are a separate subject, which is probably out of date: it is much easier to microchip the noble Lord than to give him an ID card.

I am coming to the end of my time; I am sorry that I did not have the full amount of time. Lastly, I must add that we are giving attention to lifelong learning, which we take very seriously. As announced in the 2017 Budget, we are spending £40 million to deal with it. My time is now up. I will of course reply to all noble Lords who I did not even begin to answer. I wish I had had more time. These are vital issues, and the Government are working hard to address them, but we need to do so in partnership with academia, business, charities and other stakeholders. I also look forward to many more contributions from your Lordships on this vital subject.

BBC: Equal Pay

Lord Ashton of Hyde Excerpts

Thursday 20th July 2017 Lords Chamber

[Baroness Smith of Basildon]

To ask Her Majesty’s Government what discussions or consultations have taken place between Her Majesty’s Government and the BBC regarding equal pay.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, the Government have not discussed equal pay with the BBC. However, the Government believe in transparency, which is why we have required the BBC to publish the salary details of its staff and talent. Employers with more than 250 staff, including the BBC, are now required by law to publish their gender pay gap and will do so for the first time at the end of this financial year.

[Baroness Smith of Basildon (Lab)]

My Lords, given that it is nearly 50 years—half a century—since the Equal Pay Act, that is quite a disappointing Answer. We should all be immensely proud of the BBC as a standard bearer and a standard setter for high-quality drama, entertainment, factual programmes and news. The publication of salary levels has received considerable comment, some perhaps unfair. As other media outlets are not as open and transparent as the BBC, we do not have any information on the competitive context.

However, on the issue of gender pay equality within the BBC, the criticism appears justified—and while Eddie Mair’s reference to the male anatomy on Radio 4’s “PM” programme last night might be a bit much for your Lordships’ House on the last day of term, it is hard to understand why the male Y chromosome justifies a higher salary. It is significant how many of our most senior, well-qualified and experienced women presenters and journalists are paid so much less than their male counterparts. So I have two questions for the Minister: given that he specifically referred to transparency in his Answer, is it not time for the Government to ensure that all employers publish gender pay audits; and does he share the concerns that the disclosures yesterday could lead to the loss of experienced, talented women from the BBC?

--- Later in debate ---

[Lord Ashton of Hyde]

My Lords, I think there is a slight confusion here. On the one hand, the accusation is that publishing these figures will lead to talent being attracted elsewhere; on the other hand, we are able to see the position in the BBC. I agree with the noble Baroness that it would appear that, based on this sample of 96 employees out of the 19,000 BBC employees, there is a roughly two-thirds, one-third split. I am very pleased that the director-general of the BBC has admitted that this is not good enough and is committed to narrowing the gap to make it equal by 2020. So I am pleased that we did this. We have learned some lessons. It remains to be seen whether the gloomy prognostications of those who think it will harm the BBC come to pass.

[Baroness Burt of Solihull (LD)]

My Lords, clearly the publication of these figures has been a wake-up call for the BBC. I note that other media organisations have gleefully criticised it. Well, we will see what we will see when they have to publish their pay gap figures next year. Will the Minister confirm that, with effect from next year, all organisations with 250 or more staff will be required to publish their gender pay gap figures, thanks to the work of the Liberal Democrats and specifically Jo Swinson in the dying days of the coalition?

[Lord Ashton of Hyde]

I am certainly not sure about the last part of that question. However, I can confirm that the regulations came into force on 31 March this year for the public sector and on 6 April for the private sector. Organisations with more than 250 employees have 12 months to publish their gender pay gap figures for the first time, and will have to every year thereafter. That means that the BBC will need to publish its overall figures by April 2018. That is a much more important measure, which will look at all the employees in the organisation, not just some of the top-paid stars.

[Baroness Royall of Blaisdon (Lab)]

My Lords, drawing attention to the gender pay gap in the BBC is extremely important, and I was shocked to see that neither Jenni Murray nor Jane Garvey, who are excellent broadcasters, were even mentioned—which means they earn less than £150,000 a year. Closing the gender pay gap by 2020 is, frankly, too late. I would also ask about the black and ethnic minority pay gap. It is shocking to note that Chris Evans earns more than every person of colour who is employed at a high level in the BBC. What are the Government doing to make representations to the BBC on that aspect of the pay gap?

[Lord Ashton of Hyde]

I did note the comments that Jane Garvey made about the differential in salaries. This illustrates the problem when you look at specific individuals, because the comparison between them is not necessarily obvious just from the figures. They may work at different periods, for one day a week or five days a week. It may include some parts of their remuneration but not others, which may come through BBC Studios or other commercial arms of the BBC. But the general point is made. We take diversity seriously and have put diversity in the BBC’s new public purposes in the charter renewal to make sure that it delivers for everyone in the UK. Our position is clear: the BBC should be leading the way in diversity, both on screen and off screen, in equal measure.

[Lord Tebbit (Con)]

Would my noble friend not take any sauce from opposition parties on this matter? After all, none of the opposition parties has ever seen fit to have a woman leader. This party—our party—has had two women Prime Ministers. Let them put their actions where their mouths are and elect a woman leader.

[Lord Ashton of Hyde]

My Lords, I always listen to my noble friend. As far as I am concerned, I am in an interesting position. I serve a female Prime Minister and a female Leader of the House. I am answering a Question from a female Leader of the Opposition. In my department, there is a female Secretary of State, a female Permanent Secretary and a female Government Whip. When I recover from that—I mean, when I go home after a very pleasurable day—I go home to a wife and four daughters.

[Lord Laming (CB)]

Does the Minister agree that some of these salaries are not just large but extraordinarily large, by any standards? When you contrast that with those of public servants who are dealing with life-and-death issues day by day, does it not seem that our priorities have got seriously out of order at this time? Could the Minister use his influence to indicate to the BBC that, frankly, when it comes to talk about how we could lose these fantastic talents—well, why not?

[Lord Ashton of Hyde]

My Lords, I completely agree. This is a sort of philosophical question that should really have a debate. It is a question of cost versus value and priorities. I would point out that the Labour Party, in the discussions on the proposal to require these issues to be published, thought that it was a bad idea and that the proposal should be withdrawn.

[Lord Steel of Aikwood (LD)]

Does the Minister not agree that it is outrageous that any individual is paid more than £2 million from licence fee money?

[Lord Ashton of Hyde]

It is a very large amount—but why draw the line at £2 million as opposed to any other amount?

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate my noble friend on serving so many women masters with such good grace and fortitude. Further, I congratulate the Government on introducing Ofcom as the first external regulator and for advising it to introduce an operating framework for the BBC. Should equal pay not be one of the first models that the operating framework should cover?

[Lord Ashton of Hyde]

My Lords, I do not agree with my noble friend. Diversity and equal pay are management issues for the BBC. The board of the BBC should be obeying the law and should be paying people on an equal basis, regardless of gender, sexual orientation, ethnicity or anything else. The BBC knows full well what our view is, and the director general of the BBC is committed to doing something about it by 2020.