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4 Mar 2003 : Column 713—continued
2.30 pm
John Robertson: I am delighted to participate once again in the debate on the Bill, and I draw my entry in the Register of Members' Interests to the attention of the House.
Before entering Parliament, I worked for BT for 31 years and, unlike Opposition Front Benchers, I will not try to vilify or undermine BT or the work force, as I have much to thank them for. I shall not interrupt those Members as they do so, as only they can say why they want to mount an onslaught on a company such as BT, and the BBC for that matter. I am also chair of the all-party telecommunications group, so it might be said that I have a passionate interest in the subject.
Next year, Ofcom will replace the existing system of regulation, which dates from the last century. Telecommunications, television and radio developed more or less independently and could therefore be monitored individually. The existing regulatory framework is complex and the pace of convergence is still accelerating.
I draw the House's attention to the Bill's endorsement of interested parties as stakeholders. I am disappointed that employees are not identified as key stakeholders whereas others, such as businesses and consumers, are highlighted as such. At the last meeting of the all-party group, my hon. Friend the Minister for E-Commerce and Competitiveness and Lord Currie, the new chair of Ofcom, said that they recognise that employees have a large part to play and are, of course, stakeholders in the industry, but nothing in the Bill says so. Consequently, my hon. Friend the Member for Gloucester (Mr. Dhanda) and I have tabled amendment No. 151, which would close a loophole. Employees know the business from the sharp end and have much to contribute.
The communications industry has a number of endemic problems, which need not be the case as they could be addressed by the Bill, thus remedying them in the long term. The industry often fails to focus on key issues for employees—for example, skills levels, appropriate provision for training and personal development, which are not always expensive but are much needed. Those factors, among others, have resulted in difficulties in long-term retention of employees. Furthermore, some companies—in my experience, BT is one—place important emphasis on training and personal development, although perhaps not as much as they used to.
The problem is that when the industry is buoyant, the highly trained employees are head hunted by other companies that place little value on training. The European Union high level taskforce on skills and mobility reports that 80 per cent. of today's skills will be obsolete in 10 years. When such employees, who were once highly skilled, do not undergo sufficient training, that is detrimental to the industry, as employers cannot fill vacancies and a skill shortage becomes apparent. Ultimately, that makes it harder for employees to find alternative employment should the industry slump. I do not want to come back to the House in 10 years and say, "I told you so." That, of course, assumes that I will be re-elected. I hope I am, along with a Labour Government.
Lifelong learning is essential to tackle such shortages and mismatches, which hold back economic development and job growth. Since mid-1999, business throughout Europe has increasingly reported production constraints due to labour shortage. Although I have used these figures before, I shall do so again to illustrate the chronic skills shortage that we are set to see. According to the European Information Technology Observatory, the number of unfilled vacancies in the EU information and communications technology and e-business sectors is expected to rise from 2.23 million in 2001 to 3.67 million in 2003. That is an increase of 65 per cent. If the full economic and employment potential of the telecommunications sector is to be realised, a training responsibility for the sector's employers must be stipulated in the Bill. How else can we expect to fill those jobs in the years to come?
Unfortunately, the amendments to clause 24 tabled by my hon. Friend the Member for Gloucester and I were not selected, but what applies to that clause also applies to clause 3, and my points on a specific duty on Ofcom regarding the promotion of equal opportunities and training for employees are relevant to it.
The need to recognise employees as stakeholders is obvious, but that training mandate applies only to those working in the broadcasting industry. The communications industry has a key role to play in the development of the national skill stock, but such a mandate is not in the Bill. How can we expect to have "Broadband Britain" without a well-trained and motivated work force? Although I would have liked clause 24 to be amended to extend that duty to cover employees in the telecoms industry, I am pleased that my amendment to clause 3 has been selected. I hope that we can incorporate the issue of employees as stakeholders in the Bill for the reasons that I have stated.
I am concerned that, as the focus is so firmly on competition and consumer interest, the interests of employees could be disregarded. This is an opportune time to address those issues, and I would like Ofcom to have a specific mandate in that regard.
Nick Harvey (North Devon): I shall address my remarks to amendment No. 3, which stands in my name and those of various Members from both sides of the Chamber. I shall also speak to new clause 27 and amendments Nos. 187, 188 and 189.
Amendment No. 3 and Government amendment No. 215 consider the wider public interest beyond that simply of the consumer. An important change is being made to the Bill, which will fundamentally alter what Ofcom is and what it does. The amendments are hugely significant. Last summer, a Joint Committee of the two Houses considered the draft Bill, and one of its recommendations was that the wider public interest ought to be added to Ofcom's general duties. That issue was debated at length in Standing Committee, and I am particularly pleased that Government amendment No. 215 has been tabled. It is important for Ofcom to have a wider perspective and wider duty.
The interests of consumers are important, and it is entirely right that Ofcom will have the duty to protect those interests, where possible through competition, but they are not the same as the interests of the wider public. Indeed, there can be circumstances in which the interests of the consumer may be contrary to those of the wider public.
There are instances in which economic forces can apply a perverse effect, so it is therefore absolutely right that Ofcom should have a wider responsibility. I am particularly pleased that the Government have arrived at that conclusion and have introduced their own formulation, which refers to the interests of the wider community. It will have much the same effect as the wording in other amendments. I am glad also that, having not initially accepted the recommendation made by the Committee last summer, the Government have been persuaded during consideration to reach that conclusion, which will make the entirety of the regime more effective. It will also make Ofcom more effective and make the Bill altogether more successful.
New clause 27 and amendments Nos. 187, 188 and 189 deal with interests of creators, whether they be composers, musical performers or other performers—indeed, creators of every kind. The UK's media creative industries are very strong, and are at the cutting edge of content creation in the communications revolution. Original creative input is a vital ingredient, and often serves as a stimulus for both the production of new services and the improvement of existing ones. Music, for instance, is fundamental to our existing television and radio services, and will become even more so with the arrival of multi-channel television.
The amendments would give Ofcom specific obligations to protect the interests of the creative sector. Given the intended revolution in ownership rules and the potential for greater American ownership of British media interests, British consumers might well not accept huge quantities of American content on our television channels, but I wonder whether they would be able to tell the difference between, say, British and American
incidental music. If we are to go on giving creative industries and creators opportunities in the UK media, it will be important for Ofcom to consider their interests and future viability at all times.The success of individuals and companies in our music industry depends heavily on opportunities for the creation of music for—and, indeed, the broadcasting of music by—national and regional radio and television services. Any reform of the regulatory environment on the scale that we are discussing will have a direct impact on all our creative industries. Composers and music publishers' earnings from the exploitation of music by television and radio exceed £100 million a year. Amendment No. 187 would ensure that our regulatory structures support and have regard to the impact of developments on creators and performers.
Amendment No. 188 suggests that the content board is the obvious part of Ofcom to secure the best conditions for the creation and supply of new creative content. Following the Joint Committee's recommendations last summer, the Government moved swiftly to authorise a review of programme supply, which was conducted by the ITC. That was welcome, but I do not think we should see it as a one-off: we need to keep the issues of programme and content under constant review.
Mr. Greenway: The hon. Gentleman suggests that the creators panel would be part of the content board. As the content board has no real control over or responsibility for the content of the BBC's output, should the panel apply to the BBC? Or is this yet another Liberal Democrat proposal to micro-manage commercial broadcasting but not the BBC?
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