My Lords, this Bill addresses a variety of areas where legislation needs to be updated for the digital age. It will ensure that the public are empowered to take full economic and social advantage of digital services. It will make the internet safer and enable the Government to harness digital platforms to make public services cheaper and better.
We are one of the leading digital economies in the world; however, our ambitions are not complete. In the recent Autumn Statement, the Chancellor of the Exchequer announced significant further infrastructure investment, including replacing copper networks with fibre. The Bill is a further statement of the Government’s ambition. It will help consumers to connect, provide them with skills training, protect children from online dangers, tackle nuisance calls and support the UK’s leading financial technology sector and other digital businesses.
More than 91% of premises can now receive a superfast broadband connection of at least 24 megabits per second. We are on track to reach 95% by the end of 2017. For the remaining few, we are working with industry to find the best possible options and have been trialling alternative technologies and approaches.
Part 1 of the Bill provides the broadband universal service obligation as a safety net, offering a minimum standard on which to develop improved connections for everyone. The minimum speed set will be enough for today’s needs but will be kept under review as our needs change.
Setting the right regulatory framework is only the first step to engaging consumers. We all need information about services that we can trust, allowing us easily to compare products. The Bill will enable Ofcom to deliver this, and there will be simpler and swifter service-provider switching. If things go wrong, consumers will automatically receive compensation for a failure to meet minimum standards for communications services. That will empower the consumer, increase competition and boost commerce.
Meeting this new demand for improved and better digital services requires a step-up in infrastructure. Part 2 delivers reforms to the Electronic Communications
Code and spectrum regulation so that the best systems will be in place to create, distribute and monitor digital infrastructure across the country. Delivering the coverage and connectivity that UK consumers expect will depend upon a complex array of hardware, stretching across the country. Networks of masts, cables, wires, servers, routers and exchanges make electronic communications possible. The Electronic Communications Code must strike the right balance, not only between the interests of landowners and network operators but taking into account the wider benefits for the UK from having world-leading digital communications services. Following extensive consultation, the code has been updated to improve that balance and allow greater investment in infrastructure across the country.
Along with physical apparatus, the digital communications sector relies on radio spectrum for many wireless services, such as mobile phones and television. As an essential asset, it is vital that it is effectively managed and regulated. In a world where the number of digital devices requiring use of spectrum is increasing—now 4G, next 5G—we must ensure that not only is the best use made of what is a limited resource but that companies which hinder this process are duly brought to account. The Bill provides new tools for the smooth and reliable management of spectrum.
We take many protections that the state provides in the physical world for granted. The online world is another matter. We will defend freedom of expression on the internet but—as in the physical world—there must be certain boundaries and protections.
Following public consultation, Part 3 will require pornographic websites to have robust age-verification controls in place, with the British Board of Film Classification as the age-verification regulator. The BBFC will also regulate online pornographic material, using the same standards used to classify pornography distributed offline. The focus is on age verification, not the personal identification of adults, and means that children will be protected.
This was a Conservative Party manifesto commitment, and children’s charities have also identified that it is a real issue. NSPCC has been campaigning for action, having seen the consequences of a lack of regulation on children’s emotional and physical well-being. The Children’s Charities’ Coalition on Internet Safety said:
“Whilst it is true that most of the commercial pornography publishers acknowledge their sites are not meant for minors and say minors are not welcome on them, in practice they have done little or nothing to inhibit access by minors and it seems clear to us that they won’t unless and until they are compelled to do so by law or are otherwise highly incentivised. The Government’s approach effectively does both”.
This part of the Bill has received much scrutiny and interest in the other place and from the public. We have now included the power to require internet service providers to block websites that do not comply with the age-verification standards stipulated by the BBFC.
Internet service providers work with the Government in a number of ways, and we are pleased to see this good relationship continue in relation to the protection of children. The Government have received assurances from websites accounting for 70 per cent of users that
they will not only comply with the regulations but support them, which is encouraging and reassuring.
The legislation gives the regulator the necessary tools to deal with non-compliant providers. As part of that, we want pornographic sites to become compliant when faced with powers such as blocking. We are driving cultural change in the sector and demonstrating that we will not look the other way, but instead do everything we can to protect children.
Part 4 will bring parity between the online and offline worlds of copyright infringement. The maximum penalty for online copyright infringement is currently two years in prison. This will now be harmonised with the existing maximum sentence for copyright infringement at 10 years. This change follows extensive public consultation, and the Government remain committed to achieving the right balance between a well-functioning market and effective remedies for protecting intellectual property rights. We are also updating our copyright laws to reflect the fact that cable television is now a mainstream service, delivering a vast array of content beyond the public service channels.
The Bill is not just about encouraging consumers and businesses to grasp the digital age. It is equally about the digital transformation of government. This includes the delivery of better services thanks to more effective data sharing between public authorities. There will be many future benefits from the measures in the Bill. Some immediate ones include the potential to help an additional 750,000 fuel-poor households; making public authorities better informed when pursuing debts owed to the public sector—for example, in respect of individuals’ circumstances and ability to pay—and preventing post being sent to the families of deceased individuals.
The protection of data and transparency of its use lie at the heart of Part 5. The data-sharing powers may be used only for specific purposes. Unlawful disclosure of personal information received under the powers will be a criminal offence. Data sharing must be compliant with the Data Protection Act 1998 and the codes of practice accompanying the data-sharing powers must be consistent with the Information Commissioner’s statutory code of practice on data sharing.
Part 6 also contains provisions to make sure that our regulatory system is fit for purpose in the digital world. The Bill will ensure that Ofcom has the right powers for the effective regulation of harmful content on internet-provided television and radio broadcasts. This is to keep up to date with changing facilities and technologies used for broadcasting while ensuring the protection of the public. The Bill also improves the efficiency of the Ofcom appeals process so that it can keep pace with the rapid development of digital communications technology. We welcome the support of Citizens Advice, Three, TalkTalk and Which? for these reforms.
Part 6 makes changes to legislation to reflect the outcome of discussions with the BBC about changes to arrangements for free TV licences for those aged 75 and over. Although this has been much debated in this House, the BBC sought responsibility for this concession as part of its funding deal with the Government. Furthermore, the BBC has a history of handling licence
fee-related issues sensitively and effectively. The latest BBC charter and framework agreement outlines Ofcom’s new role as the BBC’s regulator. Ofcom will monitor and review how well the BBC is meeting its mission and public purposes, regulate editorial standards, hold the BBC to account over market impacts and public value, and consider appeals. Ofcom needs to be able to carry out its new functions effectively. They include enforcing requests for information from third parties needed by Ofcom in regulating the BBC. Being able to access information about the market, and the market impact of BBC activities, will be absolutely crucial for Ofcom to do its job.
Another important provision relates to regulatory changes that will allow non-bank payment firms to have direct access to payment systems. This will be a fillip for our world-leading fintech ecosystem, and is another example of the Bill being focused on consumers. Part 6 additionally reflects the Government’s belief that digital skills are now as important as numeracy and literacy. In certain circumstances, digital skills qualifications will be free of charge to people aged 19 and over who do not already have a relevant qualification. This will mirror the approach taken for literacy and numeracy training. More than 10 million adults in England lack the basic digital skills needed to function effectively in today’s society, so this will open doors to many where they were previously tightly shut.
The Government have expressed an intention to table further amendments shortly. These additional clauses will include the delivery of a government manifesto commitment to assist public libraries in embracing the digital age by working with them to ensure remote access to e-books, without charge and with appropriate compensation for authors that enhances the public lending right scheme. There will also be an amendment to enshrine a legal requirement for subtitles, signing and audio description to be available for on-demand services. We will also bring forward an amendment to clarify that ISPs can continue to offer family-friendly filters, which give parents the power to protect their children from inappropriate material.
The digital landscape changes rapidly and profoundly. It is vital that our legislation is kept up to date. This is a big and wide-ranging Bill. Its aim is bold: to bring major change to the UK’s digital economy in infrastructure, consumer rights and opportunities, regulation, skills, safety, innovation, and intellectual property. The prize is great, and this country can be not merely a world leader in digital, but the world leader. I beg to move.
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