HC Deb 06 November 2003 vol 412 cc926-7
10. Mr. Michael Connarty (Falkirk, East)

What action she is taking to increase the availability of (a) the internet and (b) broadband services within the U? and if she will make a statement. [136685]

The Minister for Energy, E-Commerce and Postal Services (Mr. Stephen Timms)

I welcome the recent news from Oftel that half of UK households are now connected to the internet. The network of 6,000 UK Online centres was completed last year. The Oxford Internet Institute reports that only 4 per cent. of the population lacks ready access to the internet.

Eighty per cent. of UK households are now within reach of a broadband service—more than in the US. We are confident that the figure will reach 90 per cent. next year. We are approaching a broadband connection figure of 3 million. Wireless broadband and the growth of public sector broadband use will be especially helpful in further extending availability.

Mr. Connarty

I thank my hon. Friend for that answer and commend him and my right hon. Friend the Secretary of State for their continued enthusiasm for the spread of internet and broadband, which are, in a sense, the highway of the 21st century as rail and road were in the 19th century. However, the problem for my constituents—for example, in Grangemouth—is that a number of households or small and medium-sized enterprises are applying but no account is being taken of the fact that, in Grangemouth, we have BP, Syngenta, Avecia, GE Plastics and ENI Chemicals. They are all large users of the internet and broadband, yet they count as only one user. That means that SMEs cannot easily reach BT's targets. Can my hon. Friend take the question up with BT, to ensure that in industrial communities large users count as more than one unit?

Mr. Timms

My hon. Friend makes an interesting point. The Office for National Statistics said that, in July, 48 per cent. of households had access to the internet, but that 56 per cent. of people have used the internet in the past three months, reflecting the fact that a lot of people are using the internet at work, at school and elsewhere. Many big companies will already have made their own arrangements, so they are not dependent on the upgrading of local exchanges. Nevertheless, I will ensure that the interesting point that my hon. Friend makes is drawn to the attention of BT. I will meet the chief executive of BT shortly, and I will put the point to him when I do so.

Michael Fabricant (Lichfield)

At the beginning of this year, the Government announced with some fanfare the broadband aggregation scheme—under which, for example, if there is a hospital, school or whatever in a rural area, there might be justification to provide broadband to those points. The Government went on to say—logically, I thought at the time—that that could enable broadband to be given to subscribers, but that has not happened. Nothing has happened? it has been all talk and no do. Will the Minister prove me wrong and tell me precisely when the first exchange will be enabled under that scheme?

Mr. Timms

The hon. Gentleman is right to suggest that that initiative is very important. A great deal of progress has been made. All the regional aggregation bodies—he will be aware of them will be—established by the end of this month, and procurement through those bodies will start at the beginning of next year. That will be an effective way to change the basis for the service providers to invest in the provision of broadband in rural areas. Aggregation will take place at regional level, so we will be using the market as a powerful lever to improve private sector performance, but in a framework managed in the public interest by the public sector. The procurements will start in January, and I would expect the benefits to be felt very soon after that.

Brian White (Milton Keynes, North-East)

Can my hon. Friend give an assurance that there will not be the equivalent of planning blight as people wait for the regional aggregation bodies to come into effect before they make decisions, and that public sector bodies such as local authorities can still honour the existing contracts?

Mr. Timms

Yes, I think I can give that assurance. Of course, we are seeing a very rapid growth in broadband at the moment. Something like 150,000 extra connections are made each month, and there is no sign at all of that tailing off. Indeed, we hope it will accelerate. I think I can give an assurance that there will not be a hiatus as a result of the new arrangements being introduced; indeed, they will contribute to further acceleration and growth.