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Digital Economy Bill [HL]

My Lords, I think that we covered a good deal of this in the previous debate but nevertheless I shall try to address a couple of the points that were made. Paragraph (a) of proposed new subsection (1A) requires Ofcom to consider the need for investment and, ""to promote appropriate levels of investment in electronic communications networks"." This makes it a clear requirement on Ofcom to consider systematically the specific impact of its decisions and assessments relating to investment. Currently, Ofcom is simply required to have regard to the desirability of encouraging investment when it appears to be relevant in the circumstance. That clearly is not sufficient in today’s digital environment. This will qualify in particular the general duty to promote competition. This amendment clarifies and substantiates the existing caveat, ""where appropriate by promoting competition"," by requiring Ofcom to consider the promotion of investment even in those circumstances, for example, where increased investment and competition might be at odds. Let me try to reassure the noble Lord, Lord Howard, that it will not be a carte blanche for one of the network operators to make excessive profits. Ofcom will continue to be bound by its existing general duties in Section 3, which are very clear about the importance of promoting competition. In addition, it is important to remember that the functions that Ofcom derives from EU legislation will have to be carried out strictly in accordance with that legislation. Where that legislation does not recognise the importance of promoting investment, Ofcom will have to follow the EU provisions if there is a conflict between them and the new qualification to its general duties. I concur with the conclusions of the right reverend Prelate the Bishop of Blackburn, who again has got the analysis right in terms of the importance of ensuring sufficient infrastructure investment in the current climate. We have covered most of this argument in the previous debate, so I would hope that in the light of that debate, and given the importance of maintaining this clause, that the noble Lord will consider withdrawing the amendment.