Advantages of digital economy must be shared

Published: 04 December 2009

The Rt Revd Nigel McCulloch, Bishop of Manchester, spoke during the debate on the Digital Economy Bill (2nd Reading) in the House of Lords on Wednesday 2 December. His speech is reproduced below:

My Lords, I join the general welcome for this Bill as an encouraging sign of the Government's determination not only to deal with the pressing issues of copyright and digital piracy - which, as several noble Lords have said, is a breaking of the commandment: "Thou shalt not steal" - but to enable this country's digital future to be more socially inclusive, safe and beneficial to our economic well-being, our civic flourishing and the building up of our knowledge.

That is embodied in the welcome proposals, such as requiring Ofcom at all times to consider the impact of investment levels in public service content, the updating of Channel 4's remit and supporting its ambitions to continue backing and challenging the BBC in delivering innovative public service programming for a full range of platforms. However, in addition to securing a bright future for strong public service content in a non-linear world through legislation, the Government must also secure the ways and means to get that content to the people and for people to interact with it. Regional and local news coverage, for example, is key-as the noble Lord, Lord Fowler, under whose chairmanship of the Communications Committee I am privileged to sit, has said. That means not being content with a postcode lottery approach for access to high-quality, high-speed broadband, but aiming for and achieving genuinely universal inclusion across the country.

I have some areas of concern about that. First, although the universal service commitment is an honourable ambition and is being helpfully supplemented by the Government's commitment to a home access scheme for low-income families and ongoing investment in the digital inclusion programme, groups are now suggesting that the bar has been set too low in terms of universal connection speed. It would be a shame if the considerable amount of money being diverted from digital switchover surplus towards funding that commitment were to become a futile catch-up game.

Secondly, significant state subsidy for the next generation access project through direct taxation of fixed phone lines needs to strike a fine balance between giving a shot in the arm to ensure that the most remote areas get superfast broadband, while not using public money to subsidise activities that will then distort competition. That said, the target of getting superfast broadband to only 90 per cent of homes in the next eight years seems rather too modest. By that time, if the pace of digital evolution continues, superfast broadband as it is today will certainly not be considered a luxury. It will be almost as basic as a telephone line is now-vital for small businesses, for individuals seeking to engage in the public sphere, or even for getting full use of government services. The Government must make it absolutely clear to the public why society should now collectively fill the digital vacuum from which those living in our remotest areas will undoubtedly suffer if public investment in the cutting-edge of internet access is not forthcoming sooner rather than later. There is a real issue of likely social exclusion here. I hope that the Minister can reassure us about the Government's determination to address that completely.

Turning to the introduction of a statutory age certification for boxed video games, it is a good move to give the Video Standards Council tough powers to police the Pan-European Game Information age rating system. Awareness of how children and other vulnerable groups might be affected by the unregulated excesses of the market must temper our desire to embrace new and creative technologies. With 10 per cent of 11 to 16 year-olds spending more than 10 hours a week playing computer games, according to the Childwise survey this year, and with inconsistency between the classification of such video games and the approach taken to films, tighter controls in this area would be more than welcome. Only credible regulation can begin to give parents and others responsible for bringing up children the confidence to enforce certification and not to succumb to pester pressure.

The switchover to digital radio may produce more problems than expected. Of course there is much to welcome in the creation of platforms for new content to meet the needs of specialist audiences. I think, for example, of Premier Christian Radio's recent acquisition of a national DAB licence. However, there may be much to be concerned about over the plan to cut off national stations and many local services as early as 2015. While the Government have indicated that that will not be finalised until digital services account for 50 per cent of all radio listening and can reach 90 per cent of the population, it is also clear that without an early deadline, sufficient pressure may not build on radio manufacturers and retailers to shift to selling DAB sets only for cars as well as homes. The radio switchover again underlines the risk of creating another two-tier system where significant swathes of the country could lose their favourite national stations from the FM dial, including the BBC stations they pay for through the licence fee. Surely that cannot be right.

What government support will there be for the switchover to digital radio, which is likely to be not only more problematic but, generally, more expensive across the population than the TV switchover has been? Will the Minister accept that overrushing towards analogue switch-off will not allow proper time for the Government, this House and the other place to think through the unintended consequences? Is there anything that the Government can learn from the German Government's experience and their postponements of switchover plans?

An example of unintended consequences comes from community groups and churches that use radio microphones in various ways to enable people to hear and to use space creatively. As part of the overall policy on the digital economy and the sale of the audio spectrum, Ofcom is going to move the channels on which community groups and churches operate their radio mics, rendering the old equipment useless. I am aware that Ofcom is now looking at compensation for that, but are the Government aware that from the point of view of many charities, not just churches, there is a potential problem and a possible case for compensation for equipment that is still serviceable but is no longer useable? I am concerned about unreasonable costs being faced by some voluntary organisations. On voluntary supported broadcasting, do the Government intend to keep some of the analogue spectrum going, for example, for hospital radio?

This country must, of course, embrace the opportunities offered by a digital economy, but the advantages must be shared by the widest possible number of citizens. Some, if not all, of the unintended consequences that could unfairly disadvantage people might be avoided by not being trapped in too rigid a timetable. If that happens, I fear that this country will not benefit from the best rewards that a digital economy offers.


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