Communications Bill

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Dr. Howells: Through you, Mr. Atkinson, I apologise to the hon. Member for Maldon and East Chelmsford for upsetting him. He will be pleased when we have finished dealing with this group of amendments.

I shall talk about the significance of the clause, then address the issues raised by the hon. Members for Sheffield, Hallam and for Maldon and East Chelmsford. As hon. Members will know, a substantial part of the Bill is concerned with the implementation in United Kingdom law of four European directives on the regulation of electronic communications. Indeed, part 2 is largely taken up with those matters. However, one aspect of the directives is dealt with appropriately at this point,

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immediately following the clause that we have just debated on the general duties of Ofcom.

Article 8 of the framework directive, in setting out the basic provisions of the Community regulatory scheme, sets out the policy objectives and regulatory principles that will govern the performance by the national regulatory authorities in respect of the responsibilities that are assigned to them in pursuit of the directives. As the hon. Member for Sheffield, Hallam made clear, when Ofcom assumes its regulatory responsibilities, it will become the national regulatory authority for the UK. It will also be the source of the information that he rightly flags up as being required after that point. The objectives required by the directives will therefore become in effect an additional set of duties governing the performance of Ofcom's functions so far as they fall within the scope of the directives.

The duties in relation to Ofcom, or ''Community requirements'' as the Bill describes them, are: to promote competition; to contribute to the development of the European internal market; to promote the interests of all citizens of the European Union; to carry out its functions so far as possible without discrimination between technologies or modes of electronic communication—that relates to the important point made by my hon. Friend the Member for Rhondda; to encourage the provision of network access and service interoperability; and to encourage compliance with international standards so far as is appropriate to facilitate service interoperability or to secure freedom of choice for consumers.

Mr. Whitt—Whittingdale is popping up again; it is a fascinating place, Mr. Atkinson. The Bill will form part of UK law and has to be construed using the conventions and principles of interpretation of UK law. As those are not the same as the conventions and principles of interpretation of European Community law—the point raised by the hon. Member for Maldon and East Chelmsford—it is not always possible to use the literal words of directives to obtain the intended effect. The aim is to transpose the effect of directives as faithfully as possible into UK law, and we believe that we have achieved it.

10.45 am

Members of the Committee will note that some of the duties that I have listed overlap with, or are similar to, the duties under clause 3—the promotion of competition, for example. Others deal with issues not covered by clause 3. Partly for that reason and partly to provide a clear and distinct implementation of the directive, those requirements are implemented through a separate clause. Because the requirements implement provisions of European law, Ofcom must, under clause 3(5), give them precedence over the clause 3 duties in any case of conflict. I hope that that explanation helps.

At first sight, amendment No. 3 looks like a laudable simplification of the Bill. It substitutes a defined term—''associated facility''—for what appears at first sight to be a passage effectively restating exactly

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the same concept. However, subsection (3)(b) runs wider than the concept of associated facilities because it also covers associated services. It must do so because the directive requires it. In setting out the policy objectives of national regulatory authorities on promoting competition, the directive refers to electronic communications networks and services, and associated facilities and services. If we are to transpose the directive's provisions faithfully, we need the broader concept of ''associated facilities and services''.

Mr. Lansley: I appreciate the Minister's careful response to my hon. Friend the Member for Maldon and East Chelmsford. However, if the intention is to reflect the directive precisely and if amendment No. 30 does not quite achieve that because it should read ''electronic communications services and associated facilities and services'', why would an amendment in those terms be unacceptable?

Dr. Howells: That is not the amendment before us. As the hon. Gentleman said, the wording must be precise. If I can move on, it should help to explain the position.

Amendments Nos. 31 and 32 are designed to replace

    ''to such extent as OFCOM consider appropriate''

in subsection (9) with

    ''to such extent as is strictly necessary''.

At first sight, it seems a more faithful transposition of article 17.2 of the directive, and we shall certainly examine the amendments carefully. If necessary, we shall table suitable amendments on Report. I therefore ask the hon. Gentleman to withdraw the amendment.

Mr. Whittingdale: I can assure the Minister that the small degree of hurt that I felt earlier has largely been removed as a result of his contribution. My hon. Friend the Member for South Cambridgeshire made a good point about amendment No. 30, when he said that the Minister acknowledged that removing two paragraphs and replacing them with a much smaller form of words would simplify and improve the Bill. If the addition of the words ''and services'' to my amendment would negate the need for paragraphs (b) and (c), surely it would be an improvement.

Nevertheless, I accept the Minister's explanation and welcome his undertaking to re-examine the wording of subsection (9) in order properly to reflect the directive's requirement. I look forward to seeing his later conclusions and perhaps his tabling of amendments on Report. In the spirit of his response, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 4 ordered to stand part of the Bill.

Clause 5 ordered to stand part of the Bill.

Clause 6

Duties to review regulatory burdens

Mr. Greenway: I beg to move amendment No. 204, in

    clause 6, page 7, line 9, after 'secured', insert ', or may be furthered or secured'.

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The Chairman: With this it will be convenient to take the following:

Amendment No. 128, in

    clause 6, page 7, line 11, at end insert—

    '(c) to seek the views of persons providing services and facilities in relation to which OFCOM have functions on which of these functions should be subject to review.'.

Amendment No. 3, in

    clause 6, page 7, line 16, leave out 'and'.

Amendment No. 4, in

    clause 6, page 7, line 18, at end insert 'and

    (c) whether the procedures for self-regulation offer adequate opportunities for public scrutiny and for reporting on those activities to OFCOM, to the Secretary of State and to Parliament as appropriate.'.

Amendment No. 50, in

    clause 6, page 7, line 18, at end insert—

    '(c) whether persons with sufficient commercial knowledge of the persons who may be subjected to the procedures are consulted.'.

Amendment No. 122, in

    clause 355, page 307, line 7, at end add—

    '(4) OFCOM's competition functions should form part of the review of regulatory burdens by OFCOM as described in section 6.'.

New clause 2—Duty to establish and maintain Competition Board

    '(1) It shall be the duty of OFCOM to establish and maintain a committee to be known as ''the Competition Board''.

    (2) The Competition Board shall consist of—

    (a) a chairman appointed by OFCOM; and

    (b) such number of other members appointed by OFCOM as OFCOM may determine.

    (3) In appointing a person OFCOM must have regard to the desirability of ensuring that the persons appointed are experts, both users and suppliers of electronic communications, working in the industry who have a commercial knowledge of the market.

    (4) Before appointing a person to be chairman or another member of the Competition Board, OFCOM must satisfy themselves that he will not have any direct financial or other interest which would be likely prejudicially to affect the carrying out by him of any of his functions as chairman or member of the Competition Board.'.

New clause 3—Functions of the Competition Board—

    '(1) The functions conferred on the Competition Board must include, to such an extent and subject to such restrictions and approvals as OFCOM may determine, the carrying out on OFCOM's behalf of—

    (a) functions in relation to ensuring that there is a constant process of evaluating the level of competition in the market, assessing possible moves to self-regulation, and between ex ante and ex post regulation;

    (b) functions in relation to determining the matters to which a regulatory impact assessment should relate; and

    (c) functions in relation to addressing and managing the issues of concurrent powers between OFCOM and the Office of Fair Trading.

    (2) The power of OFCOM to determine the Competition Board's functions includes power to authorise the Board to establish committees and panels to advise the Board on the carrying out of some or all of the Board's functions.'.

New clause 4—Duty to establish and maintain Economic Panel—

    '(1) It shall be the duty of OFCOM, in accordance with the following provisions of this section, to exercise their powers under paragraph 14 of the Schedule to the Office of Communications Act

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    2002 (c. 11) to establish and maintain a committee to be known as ''the Economic Panel'' to give advice to OFCOM on economic theory and practice in relation to the exercise of their functions under this Act and, in particular, in relation to the following matters—

    (a) the nature and operation of markets for electronic networks, electronic communications services and associated facilities;

    (b) the interests of providers of such networks, services and facilities as well as those of consumers;

    (c) the promotion of competition between such providers; and

    (d) economic regulatory policy.

    (2) The arrangements made by OFCOM under this section must also secure that the Economic Panel are able, in addition to giving advice on the matters mentioned in subsection (1), to make arrangements for the carrying out of such research relevant to the giving of that advice as they think fit.

    (3) It shall be the duty of OFCOM, in the carrying out of their functions, to consider and, to such extent as they think appropriate, to have regard to—

    (a) any advice given to OFCOM by the Economic Panel; and

    (b) any results notified to OFCOM of any research undertaken by that Panel.'.

New clause 7—Industry consultation—

    '(1) It shall be the duty of OFCOM to establish and maintain effective arrangements for consultation about the carrying out of their functions with—

    (a) suppliers in the markets for the services and facilities in relation to which OFCOM have functions;

    (b) suppliers in the markets for apparatus used in connection with any such services or facilities.

    (2) The arrangements must include the establishment and maintenance of a panel of persons (in this Act referred to as ''the Industry Consultative Panel'') with the function of advising OFCOM.

    (3) It shall be the duty of OFCOM, in the carrying out of their functions, to consider and, to such extent as they think appropriate, to have regard to the views given to OFCOM by the Industry Consultative Panel.

    (4) The members of the Industry Panel shall be appointed by OFCOM and shall comprise a chairman and such other members as OFCOM may determine.'.

 
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