Product Security and Telecommunications Infrastructure Bill

I must draw the House’s attention to the fact that financial privilege is engaged by Lords amendment 17. If Lords amendment 17 is agreed to, I will cause the customary entry waiving Commons financial privilege to be entered into the Journal.

After Clause 74

Independent review of the electronic communications code

I beg to move, That this House disagrees with Lords amendment 17.

With this it will be convenient to discuss Lords amendments 1 to 16.

I am pleased to see the progress that the Bill has made since it left this House before the summer, and I am grateful to Members in the other place for their scrutiny of it. Fast, reliable and secure digital connections are the cornerstone of a competitive economy and thriving society, and the sooner the legislation comes into force, the better. As hon. Members will recall from earlier stages of the Bill, its objective is twofold: first, to speed up the roll-out of 5G and gigabit-capable broadband; and secondly, to protect and enhance the security of consumer connectable products, such as monitors, doorbells, connected kitchen appliances and so on, so that users can get their benefits without being exposed to risk. I am confident that the Bill will do just that.

I will start by explaining the need for the relatively straightforward Government amendments tabled by my now former colleague, Lord Kamall, whom I thank and pay tribute to. I will then move on to Lords amendment 17, with which I hope the House will disagree.

Lords amendments 1 to 11 seek to implement recommendations made by the Delegated Powers and Regulatory Reform Committee. Those recommendations relate only to part 1, on product security. The amendments change the parliamentary procedure for two delegated powers from the negative resolution procedure to the affirmative resolution procedure. Those are the powers in clause 3, the power to deem compliance with security requirements, and clause 9, the power to exempt manufacturers from needing to draw up a statement of compliance. The amendments will also ensure that the Secretary of State is able to authorise another person to exercise enforcement functions only by making regulations rather than by agreement. Those regulations will also be subject to the affirmative resolution procedure. We have carefully considered the Committee’s regulations and we are happy to accept those three.

On part 2 of the Bill, on telecoms infrastructure, Lords amendments 12 to 14 would remove the clause formerly known as clause 57 and make relevant consequential amendments to the version of the Bill that this House sent to the other place. That clause was intended to address difficulties that had arisen following upper tribunal and Court of Appeal decisions on the meaning of “occupier”. However, a judgment of the Supreme Court on this very issue was made during the Bill’s journey through the other place, and the judgment resolves the policy concerns that clause 57 was designed to address. As a result, we think it is no longer necessary to retain that clause, and its removal will ensure clarity and certainty for all users of the code.

I thank the Minister very much for her presentation. In relation to personal data—my constituents contact me about it all the time, and probably hers do as well—can we be assured that, through this Bill, personal data will not be available to people who do not have the right to access it?

I think that is probably for other legislation, but if the hon. Member would like to discuss further with me, perhaps in relation to the Data Protection and Digital Information Bill, I would be very happy to do so.

Turning back to Lords amendment 16, I have to emphasise that it is not a blanket national security exemption. It is a very specific power that will be deployed only rarely, on a case-by-case basis and only when all other routes to a mutually consensual solution have been exhausted.

Finally, turning to the last amendment in the group, I hope the House will disagree with Lords amendment 17. The amendment adds a new clause to the Bill requiring the Secretary of State to commission an independent review of the effect of the electronic communications code and of the Telecommunications Infrastructure (Leasehold Property) Act 2021.

It is the Minister’s belief that the Bill will be a remedy for the problems in the market. She will acknowledge that, while there are only a few of us in the House who do so, there is a rather larger number out there who believe that it will make a bad situation significantly worse. The Lords amendment at least gives the opportunity of finding out who is right about this—whether it is her belief that the situation will be better or mine that it will be worse. It will put some proof into the pudding. Why must she resist it?

I shall set out my reasons for resisting now, but I am afraid I am not of the same opinion as my right hon. Friend on this issue. I have looked at it at length: I have looked at casework and the numbers of renewals, and I believe a review would simply cause a great deal of delay, which would further stymie roll-out.

I thank the Minister for her intervention on this. Does she agree with me, as chair of the all-party group on broadband and digital communication, that the industry is desperately concerned that this review amendment will wreck the intentions of the Bill, and in constituencies like mine in North Devon will simply slow down the roll-out of this vital infrastructure further?

I agree and I thank my hon. Friend for making the point. It seems sensible and benign, but it would significantly delay roll-out and create a great deal of uncertainty.

I understand why Members in the other place tabled this amendment. Its aims are noble, but it is impractical and unnecessary and would have a disastrous effect on investment in telecoms infrastructure, leading to a slow-down in getting great connectivity to the places that most need it, particularly rural constituencies. The Government and Ofcom already produce regular reports on coverage targets and competition, and to that extent the amendment is unnecessary and would duplicate effort.

On the subject of coverage and targets, we are making great progress. We have listened at length to the concerns in both Houses and among stakeholders, and we of course understand that there are tensions between landowners and operators that must be resolved, albeit a lot of progress has been made since 2017. This Bill tries to resolve some of the challenges, particularly by introducing more collaborative negotiations and a greater use of alternative dispute resolutions.

The prospect of another full-scale review of the code framework would have the opposite effect, exacerbating existing tensions by prolonging that debate about valuation. The result would be a cooling effect on the market, with landowners and operators reluctant to conclude agreements until the review was completed. That would seriously delay the delivery of digital services, including gigabit-capable connections and 5G coverage, which so many of our constituents tell us they need and which hon. Members hold me to account for every day because those things are important to economic growth and social wellbeing in their constituencies, particularly rural ones. I urge hon. Members not to stitch further delays into the process through the uncertainty created by a review. For these reasons, although amendment 17 is well-intentioned, it is disproportionate and unhelpful, and I hope the House will disagree to it.

Labour has always broadly welcomed the principles of this Bill and has supported amendments, whether Government or Opposition-led, that strike a sensible balance. That remains the case today, and as such I welcome the Government amendments before us. I will instead focus my remarks on amendment 17 on a review of the electronic communications code.

Labour stands firmly behind the aim of improving roll-out. Digital connectivity is a necessity, not a luxury in this day and age. In order to participate in society—from banking to shopping, to education and using public services—access to the digital world is crucial for people of all ages and in every corner of the country. As such, it is vital that we facilitate the building, maintaining and upgrading of digital infrastructure that allows for this connectivity.

The last Labour Government delivered on this belief, ensuring the creation of infrastructure that brought first-generation broadband to around 13 million households by 2009, but unfortunately over the last 12 years roll-out simply has not gone as far or as fast as we would like. Both broadband and 5G roll-out have been woefully slow, and the Government have repeatedly reduced their targets. We therefore support the aim of part 2 of this Bill, to speed up roll-out to the levels needed. The amendment that calls for a review of the electronic communication code is proposed with the firm intention of boosting rather than jeopardising roll-out. It would ensure that a balanced evidence base is built surrounding the changes made to regulation in the last five years so that concerns held by both landowners and operators can be addressed objectively and in the public interest.

Will the hon. Member explain why the entire industry has asked me to speak this evening to say that the amendment would slow down the roll-out and do literally nothing to speed it up?

I understand that there are concerns in the industry, but there are also concerns on the other side of the argument among landowners. Indeed, in the consultation for the legislation, the most contentious parts of the 2017 regulations were considered, and that is why we are considering the amendment.

Indeed, the electronic communications code, as hon. Members will be aware, is the legislation that underpins the use of land for mobile telecommunications infrastructure. It was reformed in 2017 and further changes are being made to it through the Bill. After a period of initial adjustment, many operators now cite the 2017 ECC reform as a welcome set of changes that has in time helped them to act quicker and invest more in the roll-out.

Those who host masts, however, have seen their rents decrease by 63% on average as a result of those same changes and report that they have only caused them further problems, reducing their agency and disincentivising their involvement in facilitating the roll-out. That is a particular concern for smaller landowners—the likes of churches, sports clubs and community groups—whose rental income has been cut at a time when they are already suffering as a result of the cost of living, but whose land and involvement is vital for connecting hard-to-reach areas, some of which do not have 3G yet, let alone 5G.

Ultimately, roll-out is dependent both on those who build and operate masts and on the willingness of site owners to host them. Where we rely on both to succeed, the needs of both must be taken into account, striking the right balance so that roll-out is not impeded at either end. At the moment, however, the objective information on whether the ECC strikes the right balance is simply not available. Will the Minister share any objective evidence held by the Department on the impact that changes to the ECC have had and will have on roll-out, particularly as its consultation, as I mentioned, did not include the most controversial elements of the code. A review would help fill the evidence gap. Put simply, it would seek to measure in a balanced way whether the ECC is increasing roll-out as it was intended to.

Witnesses at the Digital, Culture, Media and Sport Committee have offered me, a history graduate and not the most technical of parliamentarians, a window into the world and advantages of connected tech. It is sometimes referred to as the “internet of things”: a world of possibilities and advantages for companies and consumers. The possibilities are wide-reaching and seemingly never-ending, but it is a brave new world that is already introducing us in Parliament, as well as those in the police service, healthcare and many workplaces, to new and unforeseen issues around our security.

The Bill does much good work in improving the culture of security from the inception of the product right from the design stage. Improved security will be integral, and as customers we will have the benefit of security information provided at the point of sale. All of that, surely, is advantageous. We on these crowded SNP Benches behind me recognise the value of the Bill. It is, however, well past time for speedier legislative progress. The world of connected tech is already well developed and established in healthcare, courier services and a multiplicity of industries around the world. We should have had legislation in place long before now.

As long ago as 2016 we saw a weaponised interconnection of connected tech devices used in a botnet to take down online titans such as Netflix, Amazon and others—2016. Countless Tory Prime Ministers and Chancellors have come and gone and, in one case, almost come again since then. Yet the Bill only hurtles into view as 2022 winds to a close. In that time, we have seen attacks on connected tech devices rising by hundreds of per cent. year on year.

On a point of order, Mr Deputy Speaker. I hate to interrupt this poetry, and it is indeed poetry, but what has it got to do with the amendments before us tonight?