Telecommunications Infrastructure (Leasehold Property) Bill

Lord Stevenson of Balmacara Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 19th May 2020 Lords Chamber

This is not just about the Secretary of State exercising his discretion. It is not just landowners and businesspeople who must be given some extra means of proceeding. There must be some pressure put behind the operators as well if we are to achieve our targets. The example that I described is not alone in the country. We must get on this. I appreciate the need to pay our balance off with interest. If we are to give the Secretary of State wider regulatory powers, I hope that they will be used in a way that will get us nearest and fastest to the goal that we all want.

[Lord Stevenson of Balmacara (Lab)]

My Lords, the benefit of making one or two Second Reading-style comments at the start of the debate on these amendments has been well proven by what has been said. A lot of context has been brought out, as has the theory underpinning some of the lines of argument. That is all to the good.

I want to make a couple of initial points. I take it as read, and I am sure that the Minister will confirm this when she responds, that we are all supportive of the speedy and complete rollout of a gigabit-capable economy. There is no question about our support in terms of previous chances because we have focused on or around this topic for a number of years now. Indeed, we have had a couple of Bills on it. It is on the record that, on our side of the House, we have tried hard to raise the unambitious USO target, as my old friend, my noble friend Lord Adonis, mentioned. We have also brought forward other measures—they were picked up on by other speakers, including the noble Lord, Lord Clement-Jones—which may have helped us to get a bit further down the line to where we are.

In the Digital Economy Act and subsequent legislation, we asked how to get everyone together on the path and moving toward a gigabit economy. The Government chose to go down the voluntary route. Of course that ended in tears, with very few respondents happy with where they are—so here we are again. I will not go into that in any detail. Having said that, times have changed. Other noble Lords have said it but I am sure that the Minister will agree that the internet’s role has changed as a result of Covid-19. It would have changed anyway but it has certainly been brought into focus because of the crisis. We certainly do not want a situation where individuals or families could be left behind because they have not been given access to gigabit-capable broadband.

Underneath the general points that have been made, there are probably a couple of major positions that we ought to focus on as we go through these amendments. Surely the default position should be that, like water, gas and electricity, gigabit-capable connections should be available to all premises. The acid test for us on this Bill is whether its measures advance that. The noble Lord, Lord Haselhurst, said that there were points that we could agree did bring us forward, but I think the general feeling so far is that perhaps there is not a deep enough cut being taken from those issues.

My second point is: where are the other pieces of legislation that will back this up? Where are the points that address bringing forward access to all properties on the same terms as other utilities? Where are the measures that will help with works that have to be done on a village-wide or town-wide basis in order to get access to cables? When will we get some sense of the overarching position and the legislation for that?

We support the amendments of the noble Lord, Lord Clement-Jones, and the one raised by my noble friend Lord Adonis. There needs to be broader support for legal occupiers to be able to initiate and unblock the process. I particularly liked a comment made in the middle of the debate about the future ownership of Openreach, and I look forward to the Minister’s response.

Throughout all this we are not in any sense saying that the owner of the property is diminished by any proposals to improve the quality of what is available in the premises. However, we clearly need it to be possible for all properties to be supplied with public utilities, and I think the internet has to be regarded as one. If this is not the case, it is up to the Minister to make very clear today why not. Can she address that point? Will she take back, perhaps for further consideration on Report, the wider concern—it was expressed by the noble Lord, Lord Clement-Jones, and the noble Baroness, Lady McIntosh, in particular, but I think was raised by just about everybody—that the Bill actually has not tackled the essential question of who it is talking about when it deals with property rights?

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

My Lords, I thank the noble Lord, Lord Stevenson of Balmacara, for his support and that of his colleagues for the Government’s work in this area; I thank all noble Lords in that regard. I also thank the noble Lords who tabled these amendments, which seek to clarify who is able to make a request for a service, and therefore begin a path for an order process.

The noble Lord, Lord Clement-Jones, and my noble friends Lady McIntosh and Lord Holmes raised questions about our 2025 manifesto target and the impact of Covid-19 on achieving that. As many noble Lords noted, the current pandemic has re-emphasised the importance of digital infrastructure in the UK, and we are fully committed and resolved to deliver on this. Obviously, Covid-19 is likely to have an impact on the pace of the rollout in the short term, but we cannot assume that we cannot recover that, make up ground and still meet our target. We are doing everything we can to assure this, including investing £5 billion in the hardest-to-reach areas such as the rural areas to which my noble friends Lord Haselhurst and Lady McIntosh referred.

Questions were also raised by several noble Lords, particularly the noble Lords, Lord Adonis and Lord Clement-Jones, about investment and competition. I cannot comment on the rumours about the status of Openreach, which is obviously something for the BT Group to announce or comment on, but our understanding from subsequent press reports is that the original Financial Times report was inaccurate. Officals will continue to engage with BT and Openreach, but it is ultimately a private company. [Inaudible.] They also raised a number of other questions, particularly in relation to the status of broadband connections as a utility—if I may, I will comment on those in a later group. Some specific and quite detailed questions were also raised which I will respond to in writing, including the question from my noble friend Lord Holmes as regards learning from previous Openreach rollout.

Turning to the specific amendments, I note that Amendment 6 is similar to an amendment tabled in the other place during the passage of the Bill there. I believe that the noble Lords who have tabled the amendment are seeking to ensure that tenants are covered by the Bill. If noble Lords are indeed seeking clarification on that point, I am able to confirm that as currently drafted, the provisions in this Bill can be used by people who rent their homes. This includes people with assured shorthold tenancy or assured tenancy agreements which, as many noble Lords will be aware, are the most common forms of tenancy agreement. These will include second homes and sub-lets as long as they meet the requirements in the Bill. I will confirm this in writing, but my understanding is that in relation to renewable tenancies—a point raised by the noble Lord, Lord Clement-Jones—if they have the characteristics of a lease, they would not be affected by this Bill. [Inaudible.] They would not be covered by this Bill. I can cover the impact of that in a letter to noble Lords.

Our concern is that the amendments as tabled would have a significant effect on the Bill. They would significantly expand the scope of who is able to make a service request to include anyone who is the legal occupant of a property, tenancy, or a freeholder. For example, the amendment could bring into scope a tenant who rents their property from an individual who is illegally sub-letting the property or a short-term lodger in a single room in someone else’s home. I am sure noble Lords will agree that, while the Government are committed to providing widespread access to fast, reliable and resilient broadband, it is important to ensure that the ability to make fundamental changes regarding the rights over property begins with an individual who has a legitimate interest in the property. Furthermore, Amendment 6 would considerably increase the ambit of the Bill and make it very different from the model which was consulted on. The Bill as drafted already works in respect of tenants, so noble Lords will appreciate the unintended consequences of extending the definition to those who may begin a Part 4A process.

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Moved by

[Lord Stevenson of Balmacara]

7: Clause 1, page 2, line 1, after “provide” insert “, or the operator itself believes there is a public interest in providing,”
Member’s explanatory statement
This amendment would afford an operator the right to initiate proceedings to gain access to a leasehold property in the event of that operator believing the provision of new infrastructure on that site would be in the public interest.

[Lord Stevenson of Balmacara]

My Lords, in moving this amendment I will also speak to Amendment 9 in the name of the noble Lord, Lord Clement-Jones, which covers much of the same ground.

In the Future Telecoms Infrastructure Review, the Government said:

“We do not think it is acceptable for landlords to be able to deny their tenants a service if an operator is prepared to provide it. We want to bring telecoms operators in line with the gas, energy and water sectors by providing a ‘right to entry’, where a landlord is given notification of an operator’s intention to access a property”.


We are entitled to ask the Minister to explain what happened. Why has the Bill failed to live up to the very sensible remarks made in the review and some of the comments that have been made this afternoon?

Other noble Lords have mentioned the impact of Covid-19 and how it has radically changed the position regarding a gigabit-capable infrastructure. We have just been talking about whether that should become the USO position, which I would support. However, access to home schooling, home working and home shopping are now as important as clean water and energy. Why perpetuate the myth that gigabit-capable access is in some sense discretionary? No individual and no family should be left behind.

Secondly, operators are part of the solution and certainly not the problem, in terms of where we are trying to reach. The discussion about Openreach and the desire of operators to co-operate if the circumstances arise are all part of this issue; to achieve what we want we must support operators in the limited time we have left. If they are in an area installing fibre and have the personnel and equipment there, it must be more cost-effective for them, beneficial for all and in the public interest for all premises in that area to be dealt with.

This amendment would not remove any control from owners of properties, but it would open up the whole process. It seems from the comments we have already heard that there is support for the amendment. We need an operator to be able independently to initiate the process, so that those who want this service can get it. I cannot see that this is, in any sense, against the public interest. I beg to move.

[The Deputy Chairman of Committees (Lord McNicol of West Kilbride) (Lab)]

I call the noble Lord, Lord Adonis.

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[The Deputy Chairman of Committees]

No other noble Lords wish to intervene on this amendment.

[Lord Stevenson of Balmacara]

This is a very interesting argument, which I do not really understand. It has come up on previous amendments and we need to bottom it out before we get to the end of today’s debates. As a precursor to what I am about to say, I do not think we would be having these discussions were it not for two things. First, memories are very short. One reason that we have Openreach is the increasing frustration that we felt over the years—not just us but the Government—at the inability of BT, a slow-moving giant, to respond to the needs of the country in developing gigabit-capable broadband. Indeed, in those days we were talking about simply getting to a USO figure of 10 megabits per second. That was the rationale for forcing BT, which did not wish to do it, to split off Openreach. It may well be that that is a continuing story and we will have more to go on. The idea was that Openreach would be faster and less constrained by the bureaucracy of BT and the problems affecting it, and able to satisfy the need to get our country up to the standards we wanted. That was the moving force.

It has been mentioned but it is important to bear in mind that last year we were at the bottom of the 80 or countries that contributed to an overall survey about how fast broadband was being been brought into countries. The good news is that we are no longer bottom; we are now third from bottom with 2.8% coverage. The top countries—Iceland, Belarus and Sweden—have more than 60% coverage of fibre to the home and the EU 28 average is 17.1%. We are miles away from getting anywhere near completing this in the time allotted. I do not get the idea that somehow we have to be balanced and fair and that there is a public interest in making sure that the rights of all concerned are equally balanced. The public interest is in getting fast broadband to as many people as possible as quickly as possible.

We will do that by making sure that the process is more like utility provision than a discretionary arrangement for getting something as a result of choice. The idea that somehow bringing operators to the point where they see that it makes good economic sense to implement a process in an area they happen to be working in is somehow unbalancing the public interest is just bonkers. It is in the public interest if we increase the quality of connections available to people to connect to the fast internet if they wish to do so, and it is not taking any rights away from owners. The whole point is that this is a process that has started; it is not a decision to go ahead. The process allows people to petition the courts or others to make sure that they can get access when they wish to do so. It is not about giving away any rights. I hope the Minister will take those points away and think about them. I am certain we will want to come back to this on Report. In the interim, I beg leave to withdraw the amendment.

Amendment 7 withdrawn.

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[Lord Adonis]

I do not wish to speak on this group.

[Lord Stevenson of Balmacara]

I will be brief as well—the Committee has heard enough from us already. As the noble Lord, Lord Clement-Jones, said, this is a probing amendment to see where the Government’s ambitions point. There does not seem to be any logic in the current drafting and the amendment is a good way to try to extend it, but there are other ways. If the Government, either now or at later stages, accept amendments that mean that all legal occupiers of a property and the operators themselves can also initiate Part 4A orders, we will not need this amendment.

I will use this time to ask a question that was raised in the discussion on an earlier amendment, as I did not get the answer from the Minister at the time it was raised. She may not have that information to hand and, if she does not, I will be happy for her to write. I think that we are all conscious that not everything in this Bill will achieve the promised land of the gigabit-compliant internet that we are all looking for, so other things need to happen, but they will not be addressed in other places. Perhaps the Minister could give us a tour d’horizon of them, if necessary in writing. How and when will we get the legislation for all new homes to have open-access fibre connections? Will there be a harmonised UK-wide regime for permitting street works to lay fibre? How will we ensure that fibre-builders can make use of the utilities infrastructure—for gas, water and electricity—to facilitate access? We need to know that these things are happening if we are to be confident that the Bill will achieve what it aims to do, so can the Minister write to me about them?

[Lord Parkinson of Whitley Bay]

I thank noble Lords for their brevity in outlining the purpose of this probing amendment. I shall try to be similarly brief in response.

I certainly welcome the intention behind this amendment—namely, to clarify which premises other than multiple-dwelling buildings such as blocks of flats might be in scope of the Bill and why. The decision initially to include only multiple-dwelling buildings is deliberate. It was informed by careful consideration of the evidence that was made available to us, not least through the consultation that was held before the Bill was drawn up and introduced. That evidence indicated that specifically this type of premises—multiple-dwelling buildings—most needed the sort of targeted intervention that is proposed in the Bill. We were not, by contrast, presented with compelling evidence for other types of property at this stage and certainly not enough to justify legislating at this point. However, we recognise that such evidence might emerge in time and we are mindful that office blocks or business parks, which the noble Lord, Lord Clement Jones, mentioned, could face similar issues. We continue to engage with providers and others about this.

The noble Lord, Lord Clement-Jones, asked how far our ambition stretches: as far as the evidence suggests. This is why we have included a clear power in the Bill for the Secretary of State to make regulations, should they be needed, to widen the scope of the Bill and make it apply to other premises of a specified description. That will allow the Secretary of State to legislate in a flexible and proportionate way, led by the evidence. This approach will allow the Government to continue to engage with interested parties, as well as to consider and balance the evidence that becomes available to us. Crucially, it will also help to guard against any unintended consequences that could arise from widening the scope of the Bill too quickly, before there is sufficient evidence to support doing so.

The noble Lord raised a point about new-build developments. The Government have set out plans to ensure that new-build homes in England are built with gigabit broadband by amending the 2010 building regulations to require developers of new-builds to install the infrastructure necessary to make them gigabit-capable. As we set out in our consultation response published on 17 March this year, the Building Act 1984 contains the necessary primary powers that would mandate the installation of gigabit broadband in new build developments. To include the new-build developments in the Bill in the way proposed by this amendment is therefore unnecessary, and could hamper the simple and proportionate approach we have set out in the consultation response.

I should add that, as housing is a devolved matter, the Government are also working closely with the devolved Administrations on this. I hope that I have been able to demonstrate that we have firm proposals in place to address the issues raised, and that the noble Lord will feel able to withdraw his amendment.

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Moved by

[Lord Stevenson of Balmacara]

12: Clause 1, page 2, leave out line 31
Member’s explanatory statement
This amendment removes the ability of a landlord to exclude themselves from the scope of these provisions by acknowledging an access request in writing without addressing the substantive point.

[Lord Stevenson of Balmacara]

My Lords, I move Amendment 12 and will speak to Amendment 13. Taken together, these amendments probe in a little more detail the way in which operators and property owners will be able to come to some sort of deal. While the Bill sets out to provide a mechanism under which, if necessary, the courts can supervise an arrangement so that access can be provided, the truth is that most operators would wish to have a voluntary arrangement through which they can deal face to face with the person responsible, in order to satisfy the potential user of the new equipment about what they are trying to do. In a sense, it is a slightly strange mixture.

The Bill seems incredibly one-sided in the way it approaches the rights of the owner of the property. We had this debate when considering previous amendments, and I am still a little uncertain as to why this should be. Throughout the discussion, the Minister has tried to make it clear that it is a balance between three competing interests: the rights of the owner of the property, those of the user and those of the operator. But I do wonder whether the balance is right in this respect.

The bar set by the Bill for a landlord to be engaging with the network builder—this is the dialogue that we are talking about—seems to be set a bit low. As I read it, the only requirement of the landlord is that they acknowledge the request notice in writing. That does not give any confirmation that the landlord will negotiate the terms of access to the property in good faith. Can the Minister say in more detail what the Government have in mind here? Could the landlord simply say, “Thank you for your letter—I will get back to you”, and the whole process stops at that point because there is no way of unlocking the arrangement?

In responding to the original consultation, the Government said that a substantive response from the landlord would be enough to take them out of the scope of the Bill, but the Bill as drafted does not require a substantive response. I agree that this might be a definitional issue but if so, why is no definition included in the Bill? This issue was discussed during the Commons stages of the Bill. Amendments that could have addressed it were discussed extensively but the Government rejected them, confirming their view that, by definition, in responding, a landlord ceases to be unresponsive. While I absolutely agree that there is an element of truth in that, it does not solve the problem, which is that if landlords want to play this long and get out of it without committing, it looks as though they can do so. It would sensible either to have no recommendation at all, as per the amendment, or some form of time-limited arrangement under which further action could be taken to resolve the issue. I beg to move.

[The Deputy Chairman of Committees]

Lord Clement-Jones?

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[The Deputy Chairman of Committees]

I have received no notification that anyone wishes to speak after the Minister, so I return to the noble Lord, Lord Stevenson.

[Lord Stevenson of Balmacara]

My Lords, I will read carefully in Hansard what has been said and reflect on it. I am bound to say that, as the noble Lord, Lord Clement-Jones, pointed out, we are back in the land of unintended consequences, which is not really an appropriate argument to use against what is essentially a probing amendment. We do not intend it to go forward into the Bill as it stands. Simply raising the spectre that it might have unintended consequences has not advanced the discussion.

The Minister’s main point was that the Bill’s intention, which I recognise, is to incentivise a situation in which discussions with the operators and others are brought up when people do not reply to requests for information. In a sense, what is in the Bill is an answer to people who have gone AWOL or died and are not able to answer their letters, rather than encouraging dialogue and leading to a conclusion, which is what we are all trying to get to if we are ever to get to the full gigabit-ready internet that we all look for. I do not think that is the answer, but having said that I will reflect on what has been said. I beg leave to withdraw the amendment.

Amendment 12 withdrawn.

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[The Deputy Chairman of Committees]

I call the noble Lord, Lord Haselhurst. He is not there. We will move to the noble Lord, Lord Liddle. I beg your pardon; I call the noble Lord, Lord Stevenson of Balmacara.

[Lord Stevenson of Balmacara]

The case has been so well made by my noble friend Lord Adonis that I have very little to add. I thought, as he did, that the exchanges in the Commons were extraordinary. We need some better explanation of what has been going on there. This is an area where there may be some case for a bit of guidance being issued by the Minister, and not necessarily in regulatory form.

I have recently moved house and have had exactly the same problem of trying to take over an existing line from the previous owner and being told that I could not switch operators and had to stick with the same equipment, even though it is clearly not right for our type of use. I am sure that this a pro-competition and pro-choice amendment which the Minister will want to support—there is a bit of a get-out here which she may want to think about.

[The Deputy Chairman of Committees]

Apologies for skipping over you, Lord Stevenson. We will try the noble Lord, Lord Haselhurst, again. He is not there. Lord Liddle? We go then to the noble Lord, Lord Fox.

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Moved by

[Lord Stevenson of Balmacara]

17: Clause 1, page 6, line 1, leave out “, of no more than 18 months,”
Member’s explanatory statement
This amendment removes the 18-month time limit for the expiry of a Part 4A code right.

[Lord Stevenson of Balmacara]

My Lords, I shall speak also to Amendment 18. The noble Lord, Lord Clement-Jones, will come in on Amendment 19, which has a similar bent but a slightly different way of moving forward on the same issue.

These are probing amendments to ask why there is a need for a statutory limit on the expiry of Part 4A code rights. It has reached the stage where Part 4A code rights are clearly necessary, now and in the future, and not limited to 18 months, which might well be interrupted by all sorts of things, not necessarily excluding matters such as those we are currently experiencing. We are saying here that this stems from our having had representations from operators about the imposition of the 18-month time limit. While there may be one, no explanation has been given for why that period has been chosen and I look forward to hearing from the Minister what it was. The proposal has been included in the Bill without any consultation, which causes us concern. That is why we have tabled Amendment 18, which suggests that before any final decision is taken, there should be a wider consultation on this.

What we surely want to see is no roadblocks, uncertainties or hindrances, real or apparent, for those who might, wilfully or otherwise, wish to frustrate progress on getting access to above-ground fibre broadband for the home. If there is to be a sensible time limit, it ought to be practical and should not create costs. If there has not been consultation, there should be, so the amendment suggests that, instead of putting into primary legislation a figure that seems to have been plucked from the air, we should have a proper process that would arrive at something that people would understand and might support better. I beg to move.

[Lord Adonis]

I do not wish to speak on this group.

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[Baroness Barran]

I thank the noble Lord for his remarks. Just to clarify, I am sorry if the language sounded pacifying. The noble Lord will remember that in an earlier amendment I talked about the spirit of the Bill being about incentivising communication between landowners and operators. The aim of this is to bring clarity and certainty to all involved, including consumers.

In the consultation we had responses from landowners and local authorities. The noble Lord will not be surprised to know that some who responded thought this was too short a period and some that it was too long, so this feels like a bit of a Goldilocks moment. There is a balance to be struck between the flexibility that the noble Lord rightly points to and clarity and certainty. Based on the consultation responses that we received, we hope that we have achieved that balance.

[Lord Stevenson of Balmacara]

I am very grateful to all those who have contributed, particularly the Minister, whose detailed explanation deserves further consideration and I will read it very carefully in Hansard. I am also delighted to have escaped at least one amendment that did not get criticised for having unexpected consequences, so I must have got something right on that one.

This is very difficult to get right and I appreciate the difficult issues that have been raised. I will reflect on what has been said. In the meantime, I beg leave to withdraw the amendment.

Amendment 17 withdrawn.