Telecommunications Infrastructure (Leasehold Property) Bill

Tobias Ellwood Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 10th March 2020 Commons Chamber

[Chi Onwurah]

The right hon. Gentleman anticipates the point that I was about to make in my speech, and I will clarify the differences.

Despite the lack of ambition in this Bill, we will not be opposing it. The Government are taking baby steps when it comes to digital infrastructure, but we will not stand in their way. Indeed, we will help them. We will be pushing a set of practical amendments in line with the Government’s stated intentions on tenants’ rights, competition and excluding high-risk vendors from UK telecommunications networks in the absence of the management and mitigation plans that we have been promised. There is also an important amendment on cyber-security education.

Amendment 2 expands the definition of persons who can request an operator to provide an electronic communications service to include rental tenants and other legal occupants who may not own the lease to the property that they occupy. Although the Bill’s explanatory notes and comments from the Minister suggest that tenants can make the request, the Bill itself does not make that clear, referring to them as lessees. Many tenants are desperate for gigabit broadband to enable them to work from home or grow their business. What if the landlord is difficult to reach or indifferent to their situation? Should not the person who actually lives in the building have some rights?

I will not try your patience, Mr Speaker, by expounding at length on the dire state of both home ownership and leasehold—or fleecehold as it is more properly known. The Government could end the misery of millions if they took on the large landowners and followed Labour’s commitment to end leasehold altogether. The system is broken, and that is one reason home ownership rates among young people are a third lower than they were in the early noughties. There are 4.5 million households in the private rented sector. We know also that tenants can easily find themselves in precarious and insecure circumstances through no fault of their own, or even with nowhere to live as a result of a section 21 notice. We therefore have a large proportion of our population condemned to renting for life, but with few rights and less certainty. Although the Government seem unwilling to address the housing crisis, they could, at the very least, ensure that tenants benefit from this legislation, and that is what our amendment seeks to do.

Much of the publicity around today’s debate relates to amendments 1 and 4, which seek to limit or prevent operators with high-risk vendors in their networks from taking advantages of the provisions of this Bill. Mr Speaker, as this is an issue of national security, I do hope that you will forgive me if I take quite some time to discuss these amendments.

My first job when I left Imperial College was with Nortel, a Canadian world leader in the then emerging telecommunications sector. If someone had said to me that a couple of decades later we would be incapable of building a European telecoms network without a Chinese vendor, I would have been astonished. Essentially, though, that was the Government’s position when they confirmed that Huawei would be allowed to participate in the UK’s 5G network, despite national security concerns. Huawei is bound by China’s National Intelligence Law 2017 to

“support, co-operate and collaborate in national intelligence work.”

We are not Sinophobes or Chinese conspiracy theorists. We do not believe that trade and cultural exchange with China are a bad thing, as some have suggested. There are also many great people working for Huawei in this country dedicated to improving our national infrastructure.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

We are going to venture into this subject in depth, but I just wonder whether the hon. Lady agrees with me on the following. When we are developing a relationship with China—yes, perhaps we want China to do business on level terms with us—is it right that Huawei, as she has described, is able to be used by its intelligence services, but western companies such as Apple, Amazon and eBay are not even allowed to operate in China under the terms and conditions that they are freely able to operate in the west?

[Chi Onwurah]

I thank the right hon. Gentleman for his intervention. He raises two important points: one of reciprocity between how Huawei acts and how vendors from Europe and the US are able to act in China; and also one of the risks associated with that potential relationship with the Chinese security services. It is a risk that has been examined by the National Cyber Security Centre.

--- Later in debate ---

[Sir Mark Hendrick]

As the shadow Minister will be aware, the Government made an announcement on 28 January that they were going to give a very limited role to Huawei in the development of the infrastructure. They have also taken advice from GCHQ and the NCSC about the level of involvement that Huawei should have. Why does she disagree with that? [Interruption.]

[Mr Ellwood]

On a point of order, Madam Deputy Speaker. Colleagues in a sedentary position have reminded me that there is a declaration of interest to be made, so I humbly ask the hon. Gentleman if he would state his relationship with Huawei.

[Sir Mark Hendrick]

rose—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. A point of order should go through the Chair. It is either an intervention or a point of order; it cannot be both.

[Mr Ellwood]

I was trying to be courteous to the situation, Madam Deputy Speaker, but the message has now been given.

[Madam Deputy Speaker]

I thank the right hon. Gentleman for his point of order. I hope that Members will not interrupt the debate with too many points of order. I am sure that the hon. Member for Preston (Sir Mark Hendrick) is clear that if there were any need to make a declaration, I would expect him to do so.

--- Later in debate ---

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I rise to speak to the amendment standing in my name and in those of my colleagues.

The reason we have tabled this amendment is that we are genuinely concerned, like the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), that this country has got itself far too bound into a process in which we are reliant on untrusted vendors—in this particular case, Huawei. We recently heard a Government Minister express the view that Huawei is a private company. Let us be absolutely clear at the outset: this company is not a private company. Ultimately, it is essentially almost completely owned by Chinese trade unions, and they, of course, are completely locked into the Chinese Government. This an organisation wholly owned by China.

It is often bandied around, including by some of the security guys the other day, that this is somehow all to do with market failure, as if out of nowhere companies from the west in the free markets—the free world—no longer wanted to get involved in this process. That is completely and utterly without foundation. The single biggest problem we have faced is that, nearly two decades ago, the Chinese Government set out to ensure that they dominated the market. As this organisation has access to nigh-on unlimited funds, it has spent that period underbidding every single time in these processes, from 2G through to 4G and now, as we understand it, 5G.

[Mr Ellwood]

I commend my right hon. Friend and the others who have put their name to amendment 1 for raising the profile of this difficult and complex issue. I think the Government should be on warning that while the amendment may not be pressed to a Division because of what the Minister says later, this House believes that we need to wean ourselves off Huawei. Does my right hon. Friend agree that there is an easy way out of this? There are six global vendors when it comes to 5G: ZTE, Huawei, Ericsson, Nokia, NEC and, of course, Samsung. The last two are not allowed to operate outside Japan and Korea. If they were invited to do so, that would enable us to push away Huawei and ensure that our national infrastructure is protected.

[Sir Iain Duncan Smith]

I agree with my right hon. Friend, and I was going to come to those points.

As I saying, if we look at this strategy, we see that when this all began, there were something like 12 companies in this marketplace. One by one, they have disappeared. Why have they disappeared? They simply cannot compete with Huawei’s pricing. These telecoms companies—telcos, as we call them—have bit by bit found themselves going to the cheapest bidder, providing the technology is as good as the others. By the way, it is certainly not an argument that Huawei has better technology; there is no evidence of that whatsoever. In fact, I think Dr Ian Levy said a year ago that he thought Huawei’s security issues were a shambles, and that is correct. Huawei does not somehow have extra brilliant technology. What it does have, however, is money, which allows it to bid down.

The hon. Member for Newcastle upon Tyne Central said that she is a believer in free markets. She will know that the free market relies on companies being able, when they sell their goods, to make enough money to reinvest and improve the quality of their goods. That is how a proper rules-based market works, but not with a company like this, which is able to strip that away. One by one, these companies have gone, not because of market failure but because it has been a policy position of the Chinese Government using Huawei to dominate this market over nearly two decades.

Telecommunications Infrastructure (Leasehold Property) Bill

Tobias Ellwood Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Wednesday 24th February 2021 Commons Chamber

In closing, let me say that Labour has consistently welcomed this Bill throughout its stages, but it will play a very small part in improving our digital infrastructure. There is so much more to be done, and we feel this could be done more quickly. This Government have no idea how they will achieve their broadband roll-out targets. Given their track record, we do not even know whether the targets will still be the same in a year’s time. This is why we need a clear strategy that provides direction and focus to businesses, healthy competition and lower prices for consumers.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

It is good to see the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Boston and Skegness (Matt Warman), in his place, discussing telecommunication matters again—it does not seem a long time ago that we were debating the whys and wherefores of Huawei. I am pleased to support him in encouraging us to ensure the completion of this Bill, albeit of course with due scrutiny, because it is well overdue. It seeks to establish a new security framework for the UK telecoms sector, and to ensure that telecommunications providers operate secure and resilient networks and services and manage their supply chains.

The Minister mentioned just how fundamentally this will change all our lives—how we live, work, socialise, travel and manufacture things. He is right to focus on how these difficult times of the pandemic have illustrated the importance of connectivity. It is all the more important that we are able to get Britain connected.

The Bretton Woods agreement after the second world war saw trading links—roads, ports and airports—deemed a priority so that we could get trade and the economy moving. As we come out of this pandemic and endure the recession, our digital economy will mean so much to our ability to advance and get back on our feet. I very much welcome the energy the Government are putting in here today.

I mentioned Huawei, but there is a wider dimension to this. Britain is in competition with other parts of the world, not least China, in making sure we have the high-tech digital capabilities to meet our future needs. The Bill is about not only putting in place protections against a country we are obviously in challenge with—China—but making sure we protect ourselves. The digital sphere provides not just opportunities but vulnerability to cyber-attacks; disinformation campaigns; interference, even in elections; manipulations on social media; data theft; and so on. The importance of security in communication links is paramount, and the longer we delay the Government’s being able to get on with this, the longer we have to lean on the older systems, which are very vulnerable indeed.

The Government’s target is to deliver nationwide gigabit-capable broadband by 2025. When he winds up the debate, will the Minister update the House on the ambitions for gaining full access to dwellings? I note with interest that gigabit availability is at only 16% in Bournemouth, so we would be delighted if the south-west, which, at 18.6%, is again below the national average, could receive support.

With your indulgence, Madam Deputy Speaker, I will digress from the main theme of the amendments and pose what I call the Rockefeller question, which is related to data. Rockefeller, of course, was the multibillionaire who formed Standard Oil. It took a US President, more powerful than Rockefeller, to stand up and break that monopoly. Arguably, today’s tech giants are replacing those monopolies of the 1900s, and that poses some awkward questions for all of us—for Government and society. The likes of Google and Facebook dominate the digital world. They now own 80% of the advertising market alone here in the UK. That poses big questions about how data is harvested, about the levels of tax paid, and about the stifling of fair competition. Those difficult questions must be answered. I appreciate that they are beyond the scope of the Bill, but it is important to get them on the record.

[Ronnie Cowan (Inverclyde) (SNP) [V]]

It is always a pleasure to speak in the House on behalf of the Scottish National party. Telecommunications is a reserved matter, and we have continued to engage constructively in refining the Bill from our part of the Opposition Benches. As I have previously highlighted in the Chamber, it is for the UK Government to ensure that our digital infrastructure is appropriately protected and managed as a key component of Scotland’s future economic success and of our position as a global leader in technology. Never has the importance of digital connectivity been more sharply brought into relief than during the ongoing pandemic. The fact that I am delivering a parliamentary speech from my home is evidence of this necessity.

On that note, I reiterate that the SNP supports the general aims of the Bill and wants to see it successfully implemented, with the appropriate amendments. I read with interest the recent debates on amendments proposed to the Bill in the Lords. Although the first amendment, in the name of Lord Alton, was withdrawn, I do not want to pass over it without making a quick comment. The purpose of the amendment was to prevent companies using UK telecommunications infrastructure to facilitate human rights abuses. The amendment was obviously not an accusation against Virgin Media, BT or others of having nefarious motives in allowing us to watch Netflix at home. Rather, it touched on a recurring theme in the Bill: our concern about the expanding tech influence of the Chinese Government.

I will not go over the debate on that amendment in detail, as Members can read it in Hansard. However, although the amendment was withdrawn, let us keep the spirit of it in mind. As the world becomes interconnected to an unprecedented degree, we must be vigilant about how our technology can inadvertently support abuses taking place elsewhere. Let us also take Lord Alton’s amendment as a worthy attempt to draw more attention to the increasingly disturbing evidence emerging from China regarding human rights abuses.

Not wishing to digress too far, I turn my attention to Baroness Barran’s amendment, relating to uncompetitive behaviour and a review of the Bill’s impact on the electronic communications code. The Scottish National party broadly welcomes this principled amendment, which would introduce sufficient measures to ensure that residents in multi-dwelling accommodation could access connectivity from the provider of their choice. Infrastructure provided by one supplier should not prevent a subsequent provider from installing their own service within the same building. Concerns were raised in the Lords about whether the amendment was necessary. Given that 10 million people could be affected by this legislation, there is no harm in taking a comprehensive approach. Some 76% of multi-dwelling units missed out on the initial efforts to deploy fibre because of problems in gaining access, so it should be self-evident to everyone in the Chamber that we must improve access and consumer choice.

Let us not pretend that previous amendments have created a perfect Bill. Industry experts have raised concerns that the legislation does not go far enough in providing flexibility for network operators. BT in particular is concerned that the bar set for a landlord to be classified as engaging with the network builder, and therefore not be subject to the Bill’s provisions, is far too low. Likewise, Virgin Media is seeking further clarity on the definition of “meaningful response” in relation to landlords’ communications with operators.

Questions have also been raised by operators on the balance the Government are seeking to create between the rights of landowners and the rights of telecoms operators. What does this mean in practice? Why would affording an operator the right to ask a court to grant access, independent of a tenant request, be against the public interest, especially if it ensures that tenants are given access to digital connectivity that may not have existed previously?

As the Minister will be aware, many utilities already have the right, with appropriate safeguards, to enter a property in order to maintain infrastructure. Do the Government agree with the future telecoms infrastructure review’s recommendation that telecoms operators’ right of entry should be brought in line with that of other utilities?

Of course, the process should be reviewed as per Lords amendment 3. If we are to achieve continual, irreversible improvement, the process must remain open to review. The Bill is now at such a late stage that I suspect some operators have effectively given up on seeing it reformed further, and they are merely accepting legislation that does not meet its full potential. Clearly, operators welcome this progress, but the industry is asking for greater clarity and engagement. It is unfortunate that the operators are still asking the Government to confirm basic definitions in legislation that is on the brink of becoming law.

Looking ahead, undoubtedly the consultation on changes to the electronic communications code is a primary way to build on the improvements that will come from this Bill. As the Government move ahead with the legislation and the review, it is vital that they consult more closely with relevant actors in the sector. After all, the telecoms operators are the only ones with the practical knowledge to make a success of the Government’s long-term ambitions for digital connectivity.