Superfast Broadband: Rural Communities

Debate between Matt Hancock and Albert Owen

Tuesday 21st February 2017 Westminster Hall

[Matt Hancock]

Yes. Thanks to the support of my hon. Friend and near neighbour on the Digital Economy Bill, we are now bringing in automatic redress as part of that legislation. Perhaps more important than redress is the need to get the universal service obligation through and into force within the timeframe we have set out.

[Albert Owen]

I am grateful to the Minister for acknowledging the roll-out in Wales and other areas, but does he agree—this not a partisan point either—that take-up is low in much of the United Kingdom? What is he doing with the regulator to ensure greater take-up?

[Matt Hancock]

That is a really important point, especially in relation to Broadband Delivery UK areas that are supported by broadband subsidised by the UK Government and delivered through either a devolved Administration or a council. The higher the take-up, the more money comes back into the contract, and that money can go towards helping more people get superfast broadband. We all have a role to play in driving take-up and ensuring awareness. That is not unreasonable, now that the availability figures are getting higher, and work is going on inside Government on how we can drive take-up higher.

There have been calls for public money to be spent. Some £1.7 billion of public money has been invested in the BDUK programme, and £440 million of funding will be returned for reinvestment, either thanks to programmes being delivered at better value and lower cost than expected—that is sometimes seen as rare in public expenditure, but it has been effective in these contracts—or because the take-up means that money is flowing back into the contracts. That will help to provide coverage for up to 600,000 additional premises, and I expect that further reinvestment funding will also come forward. That has been achieved through excellent contract management, especially with local authorities, as well as strong take-up in many areas. Crucially, that has been above expectations. For instance, in Scotland nearly £38 million has been returned to date as a result of the UK Government contracts for reinvestment, and people who have really low speeds—less than 2 megabits per second—can take advantage of the Better Broadband scheme.

The right hon. Member for Orkney and Shetland set out the case of his caseworker in Shetland who has a speed of 0.3 megabits per second, in contrast with the much higher speed of his London staff. The Better Broadband scheme is a voucher-based system that allows anyone with a speed of less than 2 megabits per second to access funding for a basic broadband contract and connectivity, for instance through satellite, and I recommend that the right hon. Gentleman’s caseworker not only take that up but then email people in his constituency to let them know that the scheme is available. The grant is technology-neutral and can be spent on satellite, wireless or community fibre projects.

I fully understand the frustration of those who do not yet have a good connection. We have talked about some of the figures. Some 81% of South East Cornwall is covered by commercial contracts, but only 83% has access to superfast broadband, meaning that provision through Superfast Cornwall covers only 2% of the constituents of my hon. Friend the Member for South East Cornwall (Mrs Murray). There is clearly much more to do in Cornwall.

In Eddisbury, 82% of premises have access to superfast broadband, but that means that 805 premises have less than 10 megabits per second, including that of my parents—I hear about it all the time. Thankfully, though, a new procurement is in the pipeline in Cheshire, which I hope will cover crucial parts of the county—with no special pleading.

In the constituency of the hon. Member for North Ayrshire and Arran (Patricia Gibson), 87% of premises currently have superfast access, according to an independent study by thinkbroadband.com, and that will rise to 93% by the end of the year. Thanks to the support of the UK Government, 14,000 premises there have already been covered, with several thousand more to come.

The hon. Member for Strangford (Jim Shannon) mentioned the business voucher scheme. We have consulted, following the autumn statement, on a further full fibre business voucher scheme and will respond to that consultation at around the time of the Budget. I understand the success of the business voucher scheme of the past couple of years. The hon. Gentleman mentioned that he had coverage of 79.1%. I would like to put on the record that, according to my figures, it is 79.4%.

S4C

Debate between Matt Hancock and Albert Owen

Wednesday 18th January 2017 Westminster Hall

[Matt Hancock]

Or, as my hon. Friend says, the same.

In terms of timing, we always said that the review of S4C would follow the BBC charter renewal, which is now complete. In fact, the Select Committee on Culture, Media and Sport today announced its support for the new chair of the BBC unitary board. That decision now needs to go to the Privy Council. It would be unusual and constitutionally interesting should the Privy Council not approve that decision. We are now in a position to push on with the S4C review shortly.

[Albert Owen]

I did not quite hear the figures that the Minister read out. My understanding was that it is a cut, not a freezing, of the budget from this year to next year. Will he confirm those figures again?

[Matt Hancock]

Yes, of course. The figures set out in the spending review 2015 are £6.762 million for this financial year and £6.058 million for the next financial year. It is thanks to the efforts of my hon. Friend the Member for Carmarthen West and South Pembrokeshire and others—not least those who called this debate today—that the Secretary of State is looking at that issue.

We are considering the question of borrowing powers. The Silk commission said that we should consider the devolution of S4C. Of course, all broadcasting is a reserved matter, rather than a devolved one. That is the basis on which we have been operating, but we accepted that Silk review recommendation, so that consideration will happen.

On the overall question of the link to the licence fee, moving the funding from direct taxpayer support to licence fee funding was controversial at the time. However, since the S4C-BBC link started after 2010, it has been a huge success, not least because S4C can use some of the BBC’s digital technology. For instance, its content is now on iPlayer, and I understand that viewing figures have increased by over 3,000%.

As was mentioned, the impact of digital technology is incredibly important in this area, not least so that we can get broadcast material to people who live outside Wales where S4C is broadcast, in the rest of the UK and the rest of the world. For lovers of the Welsh language, that link-up and the fact that S4C can partner with the BBC in getting its content out are very positive. It is reasonable to say that the decision to move the majority of S4C funding over to the licence fee has generated further partnerships and been a success.

The S4C’s economic impact was a big part of the case made by hon. Members. The contribution made by S4C to the Welsh economy is not only through the direct impact of the broadcasting but through its work with the TV production industry. The success of Welsh TV production has been impressive in the past few years, in both the English and Welsh languages. We heard a few examples. Welsh-made TV shows and formats are now sold worldwide. As well as being the home of dynamic independent producers, Wales has become a hub of creativity and a desirable place to make programmes. For instance, Wales is the production centre for “Dr Who” —an iconic British success, aired in 200 countries around the world. Children’s programmes such as “Ludus” are shown on CBBC, with the spin-off app winning a BAFTA Cymru award. S4C’s “Fferm Ffactor” is now licensed and produced in Denmark, Sweden and China. “Y Gwyll”, or “Hinterland”, is screened in both Welsh and English, showing the innovations and economies of scale by using both languages.

When I was in Los Angeles the week before last, some of the film producers there were at pains to point out to me what an innovative, powerful and increasingly impressive TV and film production system there is in Wales and how they are looking to Wales to expand into some of the new areas of production—so Hollywood goes to the Welsh valleys. We have seen some of that theme in the past few years, and I hope that we will see much more of it. S4C plays its role in developing that TV production centre. Wales is home to more than 50 TV and animation companies that collectively generate around £1 billion for the Welsh economy, of which S4C alone directly contributed £114 million in 2015-16.

As well as the impact on the Welsh language and economy, the other reason to support S4C is its importance in Wales’s media plurality, which ensures that the public have access to a wide range of views, news and information about the world in which we live, while specifically focusing on what is happening in Wales. While the media landscape and technology change, our support for S4C remains resolute and will continue as we hold it in its place in Wales’s broad landscape of media and TV production and in the hearts of the Welsh people. I hope that we can continue this dialogue and can continue across the House to support S4C.

Question put and agreed to.

Broadband Universal Service Obligation

Debate between Matt Hancock and Albert Owen

Thursday 15th December 2016 Commons Chamber

[The Minister for Digital and Culture (Matt Hancock)]

I join everyone else in congratulating my hon. Friend the Member for Boston and Skegness (Matt Warman) on securing this debate, and on bringing his serious background and experience from before he was in this place to bear on a very important subject. It is unsurprising that all of us here to discuss this think it is important; that is why we are here. The debate is particularly timely as Ofcom is tantalisingly close to publishing the analysis we commissioned on the factors that will inform the design of the broadband USO.

We are committed to building a country that works for everyone; that means ensuring that nobody is digitally excluded, and “everyone” means everyone. That is one of the motivations underpinning our drive to have a USO. This requires us to ensure that the UK’s digital infrastructure meets not only today’s broadband connectivity needs, but those of tomorrow; that is crucial. Let us be clear: the delivery of fast broadband, particularly in rural areas, is an economic imperative, not simply a “nice to have”—a point made passionately and eloquently by my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown).

Online abuse was mentioned from the Opposition Front Bench by the hon. Member for Sheffield, Heeley (Louise Haigh); I know that she personally has received some horrific online abuse. Offences offline are also offences online, but we continue to work hard, especially with the platform providers, to ensure that they take appropriate responsibility for abuse that happens on their platforms. Ultimately, however, it is those who write abusive content who are committing an offence, especially when it is a threat of physical violence or a death threat—something that too many Members of this House have suffered from.

My right hon. Friend the Member for Wantage (Mr Vaizey) is of course right: great progress has already been made in this area, and there is still lots more to do. We are on track for 95% of premises across the UK having access to superfast broadband. Some £1.7 billion of public money is being invested. That funding has created more than 4 million potential new superfast broadband connections to date. As a result of this investment and ongoing commercial roll-out, 90% of UK premises can now access these superfast speeds. The hon. Member for Ynys Môn (Albert Owen) was absolutely right that commercial roll-out is part of the answer, but it is not the whole answer. That is why we have Government intervention as well as commercial roll-out; we need a mixed economy of solutions.

[Albert Owen]

We have been talking today about the access figures. Does the Minister have the take-up figures, and will he make them available in the Library, because many areas that are getting the infrastructure are simply not getting the message out to people to connect up?

[Matt Hancock]

That is an important point. The latest take-up figures are about to be published by Ofcom, but the message that needs to go out on take-up is this: in a BDUK area, the more people who take up the connection, the more money goes back into providing more connections for other people. It is incumbent on us as local representatives to get that message out.

We should also get out the message made by my hon. Friend the Member for Eddisbury (Antoinette Sandbach) about the Ofcom app, which I have downloaded, so that Ofcom gets the real data from the ground about connectivity in each area. My hon. Friends the Members for Wycombe (Mr Baker) and for Witney (Robert Courts) also made the point that connectivity matters more than technology.

I want to return to the point about farmers made by my hon. Friend the Member for The Cotswolds— he is sitting next to my hon. Friend the Member for Mid Norfolk (George Freeman), who also cares a lot about farmers. I loved the phrase used by my hon. Friend the Member for The Cotswolds: it is important that we have both a future-proof and a rural-proof approach. In introducing the USO, we have said that 10 megabits per second is an absolute minimum. The legislation provides for that to be revised up. The Scottish Government have chosen to have a fixed figure; I think it is better to have a figure that can be revised up as technology changes.

Oral Answers to Questions

Debate between Matt Hancock and Albert Owen

Thursday 18th December 2014 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

The Secretary of State will be aware that the Energy and Climate Change Committee has produced a report on small nuclear reactors. May we have a quick response from the Government very early in the new year? When we produced a report on fracking in 2010, it took three or four years before it became a flagship policy of the Government. We could go on to lose the opportunity.

[Matthew Hancock]

As the hon. Gentleman knows, there is ongoing work on the commercial feasibility of SNRs. There was a further small package in the autumn statement to take that work forward, and we are working internationally to see whether the technology can become feasible.

Energy Policy and Living Standards

Debate between Matt Hancock and Albert Owen

Wednesday 10th December 2014 Westminster Hall

[Matthew Hancock]

That is something that I am actively looking into, and I look forward to working with my hon. Friend to take it forward.

[Albert Owen]

One area in the energy market where there is no competition at all is distribution. The regions have monopolies, and the differential between them is some 6% of the bill. Does the Minister welcome Ofgem’s review of that subject, so that we can have proper, fairer pricing across the United Kingdom?

[Matthew Hancock]

Of course I welcome Ofgem’s review into the matter, and I think it is an important question. If we simply socialise prices across the whole of the UK, somebody has to pay those prices. The key question is how we can sort that out in a way that represents the best value for money. We have always had a relatively market-based approach, but the central point of Government policy is to move even more in that direction. The other important point is that without the action that the Government have taken, the average household dual-fuel bill would have been £100 higher this year.

Energy efficiency is the most effective way to drive down costs while cutting emissions and to bring down electricity bills for people, families and households. I am focused on that, and on ensuring that we get the best possible value. The Government have expanded energy efficiency enormously. Home insulation has been expanded and the green deal has reached hundreds of thousands of people. Those changes will ensure that we get the best possible value for money and that people pay lower bills, as far as is consistent with security of supply and our international obligations. That is the Government’s goal and we have made progress, but I have no doubt that there is more to do.

Question put and agreed to.

Oral Answers to Questions

Debate between Matt Hancock and Albert Owen

Thursday 6th November 2014 Commons Chamber

[Matthew Hancock]

We have a stronger regulatory system than in the United States, and I think that is a good thing.

[Albert Owen (Ynys Môn) (Lab)]

Had the Secretary of State accepted my invitation to Anglesey day last week, he would have seen a microcosm of the United Kingdom’s energy future. Will he genuinely thank the officials who helped with giving consent to the biomass plant, which will have an eco plant alongside it, creating real green jobs? Is not that the way forward for Anglesey and the United Kingdom?