Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Debate between Matt Hancock and Kit Malthouse

2nd reading: House of Commons
Monday 10th July 2017 Commons Chamber

[Matt Hancock]

The universal service obligation is in law to ensure that everybody can access the service by 2020, but that is an end date, a deadline. As I said earlier, we have now reached 93% of premises. Crucially, that is 93% of premises having access to broadband—they still have to take it up. In fact, everybody who takes up the service in a subsidised area puts more money into the pot so that we can give more people access to superfast broadband.

Just 42% of the country had superfast broadband in 2010, when my right hon. Friend the Member for Wantage took up the reins of delivering it, but now 93% have access to it. We are on track to get to 95% at the end of the year, and then 100% of premises will have access to high-speed broadband by 2020. As my hon. Friend the Member for Taunton Deane (Rebecca Pow) can see, we are rolling that out. Crucially, that is delivering today’s technology—it delivers the needs of an average household today—but we also need to make sure we are ahead of the curve on the next generation of technology.

The idea of the digital investment fund is that it supports the commercial finance of alternative developers so we get more players into the market, rather than just having BT and Virgin, the two big players. The Government’s investment will be at least matched on the same terms by private sector investments so we expect it to capitalise more private investment and bring more than £1 billion of investment overall into full-fibre broadband, getting the really high speeds that some people need and want now, but many, many more will need and want in the future as these demands increase.

[Kit Malthouse (North West Hampshire) (Con)]

I want to refer back to the Minister’s remarks on the universal service obligation, which of course he is right to hail as a revolution in provision. The USO will be subject to a cost cap, so I wonder whether he will tell us when our constituents are likely to know what that cap is going to be and therefore whether he will be burnishing his credentials as a hero of rural Britain or not.

[Matt Hancock]

I know when to take a compliment as a threat. The truth is that this all depends on the technology. It may cost an awful lot to dig a trench and get a piece of fibre all the way to some places a long way from the existing network. However, new technologies are coming on stream, especially fixed wireless technologies, where a signal is beamed from one place to another. As a last resort, there are satellite technologies, which are good but not as reliable, that mean everyone can get connected. The aim is to get decent broadband speeds to every premises that wants them, making sure that as much of that as is feasibly possible is covered by a fixed network, but using technologies to get to the hardest to reach.

Digital Economy Bill

Debate between Matt Hancock and Kit Malthouse

Tuesday 13th September 2016 Commons Chamber

[Matt Hancock]

I am grateful for the hon. Gentleman’s supportive comment about how the Government have done on digitisation. We have made a huge amount of progress and are one of the world leaders. Some states find this process easier, partly because of national culture. Estonia bases its Government digital services on a universal identity system that we disagree with here; it has a much more willing approach to having an ID card system than the UK does. Also, by its nature our country is more complicated and much bigger, so things are more complicated here, but we can learn a lot from the brilliant work Estonia is doing. I have personally worked with the Estonian Government to take the lessons and apply them in our own context.

There were three areas in the debate that really got the House going. The first was age verification. Incredibly strong speeches were made on that by the right hon. Member for Slough (Fiona Mactaggart), the hon. Members for Rotherham (Sarah Champion) and for Bristol West (Thangam Debbonaire), my right hon. Friend the Member for Basingstoke (Mrs Miller), my hon. Friends the Members for Devizes (Claire Perry), for Congleton (Fiona Bruce) and for Eastbourne (Caroline Ansell), and others. Age verification is an incredibly important step forward. Legislation is in place to deal with the online abuse that many Members also raised—the cyber-stalking and harassment—and, as Members of Parliament, we all understand the challenges that we face on that. We remain committed to improving online safety; it is a challenging area, but we will continue to work to push that forward. The views of the House will be key to that process.

[Kit Malthouse]

Does the Minister accept that the impact of the measures will be limited given that, as a number of Members have pointed out, the vast bulk of the material we are trying to protect children from comes from overseas? The Government’s jurisdiction will therefore be limited and the impact will therefore be limited.

--- Later in debate ---

[Matt Hancock]

There is a fund to ensure that we get fast broadband out to as many people as possible. There is something that every single Member can do to make sure that that fund goes as far as possible. The contracts are structured so that the more people take up broadband, the more the local authority or delivery partner gets back in a clawback. They then spend that money on reaching more premises and more households. I urge everybody to run a broadband take-up campaign in their constituencies, because the more people who sign up for broadband in a Government-supported Broadband Delivery UK area—about 20% of households —the more money comes back to the programme and the more houses can be reached. The clawback means that all of us can have a direct impact on how much broadband is delivered in our local areas.

[Kit Malthouse]

I just want to be clear, because many of my constituents will be listening carefully, on what 10 megabits per second actually means. The Minister, in an intervention, used the word “minimum” when he said that the universal service obligation would be 10 megabits per second. Is he saying that it is the Government’s intention that some broadband speeds should never fall below 10 megabits per second, no matter what their neighbours, or anybody else who is sharing capacity, are doing?

[Matt Hancock]

My hon. Friend raises an important point. I see 10 megabits as the absolute minimum, but the definition of what has been advertised in the past for high-speed broadband is a really important issue. This is not an area of statutory regulation, because we do not have statutory regulation for advertising. The Advertising Standards Authority makes the rules. It is consulting on changing the so-called “up to” definitions in advertising to make sure that there is a tighter definition so that people get what is advertised. I think it is fair to say that, should that change go through—it is a non-statutory area—it would be widely supported across the House.

Fibre to new homes was raised by many Members, so let me give this answer. In January, it will become law that superfast broadband needs to be supplied to new homes. There is a commitment to provide fibre to sites with more than 100 new premises. This is a big step forward. Lots of people asked questions about it; secondary regulations went through; the reason it is not in the Bill is that we think we have made the progress needed to ensure that we deliver in this space.

Likewise, many people asked about agreements on landowners’ rights under the electronic communications code, which I agree is an incredibly important step forward. I pay particular tribute to my right hon. Friends the Members for Maldon and for Wantage for driving this through. The new code will be a baseline that removes a lot of the room for dispute. It will apply only to new contracts, but many if not most contracts and agreements for siting masts will remain on commercial terms. It will not be required to use the new code; the new code will be the baseline from which the negotiations can take place.

Let me touch on the Opposition Front-Bench contributions. I felt that the two Labour contributions were well informed and the agreement on the vision was very positive. I would like to react to a few points. Sadly, I thought there was a rather shrill position on data sharing, and I was slightly disappointed with it. Given that we have had two years of open policy making and a full public consultation, it was a bit of surprise to hear that the Labour Front-Bench team was not involved.

The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) was wrong about the Communications Act 2003 when she said that measures build on Labour’s Act and that it was a pity that no progress has been made since 2003. Actually, this Bill builds on the Telecommunications Act 1984. The hon. Lady was also a bit muddled over the BBC. When she argued for more BBC spending power, I was not sure whether she wanted the licence fee to be put up. I think that making costs for phone masts lower is an important part of rolling out the infrastructure to make sure that we get as much coverage for 5G and 4G as possible. We can take up all these points in Committee.