HL Deb 30 March 1988 vol 495 cc758-9

2.40 p.m.

Lord Mackie of Benshie asked Her Majesty's Government:

When the promised competition to British Telecom is likely to spread to Tayside and other areas of Scotland.

The Secretary of State for Trade and Industry (Lord Young of Graffham)

My Lords, the Mercury Communications network has already reached Edinburgh and Glasgow two years ahead of schedule and will shortly be extended farther to Dundee and Aberdeen. Scottish consumers are also benefiting from competition in the supply of equipment for attachment to the telecommunications network, of value added and data services provided over it and in the provision of mobile telecommunications services.

Lord Mackie of Benshie

My Lords, I thank the Minister for that ray of hope. Does he mean that the extension to Dundee will also mean an extension to the country areas, which are important? Does he appreciate that at the moment the Scottish countryside is suffering from all the classic evils of a private monopoly to the extent that charges are being imposed where none was imposed before? For example, an extra £15 is being charged to transfer a telephone which is already in place, which means a book entry. Surely that is not part of government policy?

Lord Young of Graffham

My Lords, I think that credit should be given where credit is due. The terms of Mercury's licence were that it should provide services to Edinburgh and Glasgow by November 1989. It provided a service by October 1987. When it provides services in August this year in Aberdeen and Dundee, an estimated 50 per cent. of BT subscribers in Scotland will be able to access Mercury's network directly. The problems of those who live in the rural areas are no different in Scotland from those in England or the rest of the United Kingdom. If there are particular areas in which the noble Lord feels that British Telecom is abusing its position, then I am sure that the director general of Oftel will be only too happy to look into the matter.

Lord Williams of Elvel

My Lords, can the noble Lord tell the House what share of the market in Scotland Mercury is expecting to have when the network is completed?

Lord Young of Graffham

My Lords, the share of the market which it will have when the network is complete is in the hands of the customers, not of the Government.

Lord Mulley

My Lords, Oftel recently published a report censuring British Telecom for the great delay in providing the services for which Mercury had asked. Can the Minister give us any information about that? What steps, if any, is the department taking to accelerate this matter?

Lord Young of Graffham

My Lords, that is entirely another matter. But I am happy to say that I believe that a report published by Oftel has been properly received by British Telecom and those difficulties are now being put right.

Lord Leatherland

My Lords, on two occasions the Minister used the expression "give credit". Do the Scots give credit?

Lord Young of Graffham

My Lords, that is a matter which I shall refer to the noble Lord, Lord Mackie.