Product Security and Telecommunications Infrastructure Bill — House of Commons, 2022-05-25
Topic: Technology
Julia Louise Lopez (Conservative, Centre-right): I thank my hon. Friend for raising the great work of KCOM and the importance of competition and how it is driving roll-out. It is changing the dynamic in the market, very much for the better. I am mindful of how we drive extra competitiveness in this field, because that is what is getting us the roll-out and the digital connectivity that our constituents need and demand Amendments 14 to 17 are, I think, identical to the proposals tabled in Committee. As I explained then, upgrading and sharing electronic communications apparatus offers substantial benefits. We specifically recognised that in our 2017 reforms and in the new upgrading and sharing rights that clauses 59 and 60 will create. However, as I also explained, any legislation concerning work affecting private land has to take careful care to strike the right balance between public benefit and individual rights. The automatic rights introduced in 2017 were developed to maintain that balance Even more careful consideration is needed for legislation that applies retrospectively. It is for that reason that clauses 59 and 60, which have retrospective effect, include tighter restrictions on the rights they confer on operators. Under those clauses, operators will have automatic rights to carry out only limited activities that will not have adverse impacts on the land in question or impose any burden on anyone with an interest in the land. However, conferring these rights will facilitate activities such as crucial upgrading work on cables installed underneath land. Industry stakeholders have confirmed that this has significant potential to provide homes and communities with gigabit-capable connections at pace. The public benefits are therefore substantial, with little to no impact on private individuals Further expanding these retrospective measures, as proposed by the amendments, would require us to revisit two fundamental points: first, what would the public benefit be, and, secondly, what would the impact be on individual landowners’ rights? We have considered that carefully, and we do not think that the case has been made for the changes that the amendments propose Looking first at the impact on landowners’ rights, if apparatus can be upgraded or shared without material alteration to land or property—for example, if works are carried out solely on or within apparatus, such as a duct—impact on the land can be negligible. Upgrading equipment in a building almost always involves some direct impact, however small, on the building. We think that works that have an impact on property should require either agreement from the landlord or imposition by the courts through the processes provided for in the code In any event, if an automatic right of the kind envisaged was introduced, operators would still have to successfully engage with the landlords for logistical purposes, such as to arrange access to the property or to discuss any potential health and safety issues or need for repairs. If these conversations must take place, and we think that they should, it seems sensible that the operator should at the same time ask permission to carry out the works. That brings us again to the question of whether the expanded automatic rights, as proposed by the amendments, would be proportionate. There are other ways that operators can upgrade equipment in multi-dwelling units. They can already ask for the rights to do so, and measures are being introduced that will enable them to resolve matters quickly and cheaply Finally, what of the public benefit? Members made the point in Committee that residents in blocks of flats urgently need gigabit-capable connections, particularly if we are to meet our levelling-up ambitions in urban areas, as well as in rural communities. I have explained that the code already contains provisions that would enable operators to seek rights to upgrade apparatus in buildings. In contrast, an automatic right could have adverse impacts that have perhaps not been fully explored. Members suggest that there is consensus in industry that these changes are needed, but that is not the case. I have received direct representations from many fibre providers that strongly oppose these proposals. They say that the proposals would create an unfair advantage for operators with equipment inside buildings, with potentially anti-competitive effects I hope that gives the hon. Member for Hackney South and Shoreditch assurance that the provisions in the Bill on retrospective rights to upgrade and share represent a balanced approach, and that there are substantial measures in place and under way to connect residents of multi-dwelling units. I therefore hope that she will not press her amendments to a Division Finally, I will address the amendments tabled by my right hon. Friend the Member for New Forest West (Sir Desmond Swayne). First, amendments 12 and 13 seek to remove clauses 61 and 62 from the Bill. This is another matter that I am familiar with. Indeed, as I suggested in response to an intervention, I have had conversations with him and other hon. Members about particular cases, as well as with the campaign group that represents landowners on the issue The Government recognise that, since 2017, there have been problems between some landowners and telecoms operators, and a level of discontent about the result of the valuation regime change, but we want to bring that regime more in line with that of other utilities, and we believe there are significant benefits to doing so. I must say that I have found little evidence in recent weeks and months to suggest that the regime requires a radical overhaul I have encouraged more collaborative discussions between operators and landowners. I have looked into specific cases, and concluded that the measures that we are introducing to encourage more collaborative negotiations will help to tackle many of the problems that I have seen. Significant information about cases has not always been forthcoming when asked for, but if hon. Members would like to discuss constituency cases, I am always happy to receive the details. Fundamentally, we need a legislative framework that keeps costs low, so that we can encourage investment and protect consumers from price increases. The code valuation framework to calculate the sums payable to landowners by operators, which was introduced in 2017, aimed to achieve that. We maintain that the overall framework creates the right balance between the public need for fantastic digital infrastructure and making sure that landowners receive a fair payment for allowing their land to be used. The purpose of clauses 61 and 62 is to make sure that the valuation framework applies consistently across the UK and to all agreements the code applies to.