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Digital Economy Bill [HL]

My Lords, it is nice to see the noble Lord, Lord Carter, back in the House. I am sure that, with his great knowledge of the subject, he will be very helpful when we get to Committee. Welcome though it is overall, the Bill has its disappointments. As my noble friend Lord Fowler pointed out, a number of matters remain to be addressed. There was an opportunity for Her Majesty’s Government to make Britain, in digital terms, one of the most advanced countries in the world. In the case of broadband—conspicuous because of how little there is in the Bill about this crucial matter—the very low target for 2012 will merely confirm that Britain is in the digital dark ages. How regrettable that there is no chance to debate the Government’s plan, or rather lack of one. So far all that has been suggested is a new tax, but there is little information on how the money raised will be spent. Spending money without proper examination creates the danger of leaving the UK with an expensive infrastructure that is already out of date and not responsive to consumer or industry needs. The Government should be looking at the regulatory regime in this area and reviewing how outdated and burdensome piles of red tape could be got rid of to assist and encourage private sector investment. This is urgent. Already the internet system is creaking, with mobile networks crashing, and we are still in the early stages of the revolution in communication that is taking place. It is shaming to read Cisco’s report Britain is only 31st out of 66 countries in broadband speed. Broadly speaking, as the Secretary of State has explained, the general duties of Ofcom are amended to extend investment in infrastructure and promote investment in public service media. This is done by amendment to the Communications Act 2003. However, the 2003 Act already seems to cover everything included in the Bill. Could the Secretary of State let the House know what in particular will be achieved by the proposed amendments to the Act, that could not have been achieved without the Bill that we are discussing today? For example, under chapter 3 of the framework directive, "Tasks of National Regulatory Authorities", Ofcom already has a duty to promote efficient investment in infrastructure. In addition, the explanatory document repeats the obligation under the 2003 Act to further the interests of citizens in relation to communication matters. Does this not cover any conflict between short-term and long-term objectives? How can the interests of citizens not allow, or, indeed, encourage, a sensible view to be taken of long-term considerations? Another concern is the promotion of appropriate levels of investment in public service media content. What is "appropriate", and to what does it apply? Does it, for instance, apply just to the public service broadcasters’ online activities, or to all online content which could conceivably count as public service? Is it the amount of money invested, or is it where it is invested? Is it a requirement for the BBC, the largest public service provider, to invest in making programmes specifically for the internet, rather than using the internet to reproduce and promote its television and radio content? We think that the BBC news website, for instance, is a good thing, but would not want it to use this clause as an excuse to expand its online activities beyond their core purpose. These are matters for Committee, but it would be helpful if the noble Lord could tell the House a little more precisely what this clause is trying to achieve. It is broadly drafted and raises many questions. No one could argue with the aim of Her Majesty’s Government to tackle the massively important area of illegal file-sharing, but the lack of detail in the provisions is disappointing. The lack of certainty is a particular concern for internet service providers, especially mobile broadband providers, who are unsure about the cost of compliance. It is possible that these clauses will set up a proportionate, fair and effective regime, but, bearing in mind the dissatisfaction so many stakeholders have expressed, there must be doubts about how well the provisions will work. These provisions will need to be scrutinised very closely in Committee, especially Clauses 11 and 17. I listened closely to what my noble friend Lord Lucas said. The noble Lord, Lord Clement-Jones, also made some most pertinent comments on Clause 17. Clause 11 appears to imply that the Secretary of State does not need to consult Ofcom before introducing technical measures. We would be reluctant to see the Secretary of State given such comprehensive and unchallengeable powers. As he himself has pointed out, the latter clause on copyright needs to be updated to take account of new media forms, but this clause does not do that; it just allows the Government to do whatever they want at any point in the future. Although some future-proofing may be necessary, it is regrettable that such a large and important part of a modern digital economy should be left to secondary legislation, with the corresponding lack of scrutiny and certainty. Will the Secretary of State confirm that, as my noble friend Lady Buscombe pointed out, Clause 17 would in effect enable him to rewrite the entire basis of British copyright law by statutory instrument? It is hoped that the current system of domain name registration can continue to operate in the interests of consumers and businesses without the need for government intervention. There is a case for government obtaining reserve powers to take action where serious failures may be identified, but greater detail is required on how these powers will be used, and what will trigger their use. Could the Secretary of State tell us how he will decide whether a domain registry is responsible for a serious failure, and what criteria will be used? The Bill has provision for public subsidy to prop up regional news. Despite the well argued plea from the noble Lord, Lord Mandelson, I believe this would be quite wrong. The situation would arise of news providers pursuing subsidy rather than their rather more important task of pursuing news. Worse still, in today’s world of spin, one body funding all news carries the hideous potential danger of that body seeking to influence the news. If outdated and restrictive regulations on commercial service providers were removed promptly, the necessity for subsidy could be avoided. While we on these Benches support the switch from analogue to digital radio, it is a sensitive area. It would be good if the Government could give some assurances of what criteria will be used to decide when will be the appropriate time for the changeover. Will the Government be guided by the criteria set out in the Digital Britain White Paper, referred to by the right reverend Prelate the Bishop of Manchester? If so, we remain unconvinced that the 2015 target date is realistic and worry that millions of listeners and hundreds of local stations will be disadvantaged. There are many for whom the digital switchover will cause problems: the elderly or the lonely, who may have had a wireless for many years which has become almost a companion; the blind person who will not be able to work the digital radio because the instructions are on a screen that they will not be able to see. I hope that the Secretary of State can reassure the House that proper care and attention will be paid to the needs of those who will encounter difficulties with the transition. On these Benches, we welcome the moves to a single classification for video games. We are concerned, however, that the Government have not taken this opportunity to address the loophole in video classification laws that allow violent, sexual and other harmful content to escape age verification if they are part of music or sports videos and films. Among other comments, my noble friend Lord Bridgeman made some pertinent remarks on Clause 45 about collective licensing. What is the Minister’s view on this potentially tricky subject? In the Bill, much of the devil will be in the detail and we on these Benches look forward to the Committee stage where the detail and the Government’s future intentions can be examined thoroughly.