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Digital Economy Bill [HL]

My Lords, Amendment 9 would provide that the new requirement for reports is rendered much more flexible and that the timetable is not set in stone. We support the principle of ensuring that Ofcom has the ability to provide expert, independent reports into the nature of the communications sector in the United Kingdom; indeed, one could argue that this is one of the principal reasons for having an independent regulator. However, there is a danger of Ofcom becoming something of a report-making monster. The Bill contains numerous new reporting duties, many of which we feel are unlikely to be needed as regularly as the current drafting suggests. Clause 2 adds reports on communications infrastructure and services, and a report on the allocation, registration and misuse of domain names; Clause 3 adds reporting duties on public service media content; Clause 9 on the efficacy of obligations to tackle online piracy; Clause 10 on the efficacy of technical measures; Clause 22 on Channel 4’s new duties; and Clause 26 on the viability of the teletext service. It seems that on almost every issue that the Bill addresses the Government’s favoured solution is for Ofcom to provide a report on it. Ofcom is mentioned 159 times in the Bill and 27 of the Bill’s 49 clauses mention Ofcom on one or more occasion. In many cases, including that in Clause 2 on infrastructure, we acknowledge the benefit in having such reports, but if Ministers want a report, they should be able to ask for one. There is a precedent for such a format within the Bill, indeed within this clause. On page 4, line 25, new Section 134C states: ""OFCOM must, if requested to do so by the Secretary of State—""(a) prepare a report"," and so on. That seems to be a much more sensible and flexible approach to using Ofcom’s technical expertise. It is entirely possible that in a fast-paced and ever-changing environment, the Secretary of State would want a report sooner than every two years. It is worth pointing out that the Communications Act 2003 set a fixed timetable for Ofcom’s reports on public service broadcasting and that these had to be brought forward. It is more likely that after the first report, one may not then be needed for a period longer than two years, but no one knows. That is entirely the point of this amendment. Rather than tie the hands of a Minister, why not provide the flexibility to ask for such a report as and when one is required? The Government’s impact assessment states that although Ofcom is likely to incur increased administrative costs for carrying out this new reporting duty, the considerable uncertainties surrounding the precise scope and objectives of the report make it extremely difficult to quantify the costs accurately. However, it would seem obvious that there will be an increase in costs and that they will be passed on to the industry and eventually, indirectly, to consumers. As such, it makes sense, we suggest, to ensure that money is not spent on reports when they are not deemed necessary. I beg to move.