5. Statement by the Leader of the House and Chief Whip: Broadband Update

Part of the debate – in the Senedd at 4:16 pm on 23 October 2018.

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Photo of Julie James Julie James Labour 4:16, 23 October 2018

Thank you for that masterclass in some of the figures involved. I think, Russell George, you feel very much as I do that, perhaps, sometimes, you've been living and breathing this for quite some considerable time. Let me try to unpack some of the figures, because they're complex and again to do—as I say so often in this Chamber—with the fact that this is a state aid intervention programme grant aiding the eventual successful tenderers for the grant programme and not an infrastructure project. If it was an infrastructure project, it would be very much simpler, but it isn't.

So, as you know, at each stage, we have to make sure that we're not intervening in a market without the correct state aid cover, which we have to get through the Broadband Delivery UK process, and that puts an added complexity into it. In terms of the first contract, as I said, the actual coverage for that contract was that BT had to get to 690,000 premises across Wales at 30 Mbps or above. And at the time that that contract was let, that would have meant, alongside the private sector investment elsewhere in Wales, that 96 per cent of the premises that then existed would have been covered. Obviously there have been premises built in the meantime. One of the frustrations of this project as, Russell George, you well know from your own constituency, is that new build is often not included because we have to go back out to an open market review each time to try to find out whether the new build is or isn't covered by one of the commercial operators before we can include it, and that adds an added complexity. And if you remember, in the first project, we added in 42,000 extra premises at one point, when we did a second open market review, because it became increasingly clear that some of the business estates were not going to be covered by the commercial roll-out, which is what had been claimed by the various operators in the first place. So, it's a hugely complex set of criteria that we have to go to, and would that I could just figure out which premises they were and then work out how much it would be to connect them. That would be an awful lot easier, but that, unfortunately, is not where we are.

The conversation with the bidders in the lots that are now let has very much centred around the lessons learned that you spoke about, and has very much been us driving them to say exactly which premises they will go to and in what timescale. And I am hoping that, within the next month, we will be able to release those details to Assembly Members so that they can contact people in their constituency and let them know where they are in the programme. And at this point, I want to say that, of course, the grant agreement—I did say this in my previous statement as well—is over three years. So, some people will be at the end of that three-year programme, and it may be that they aren't happy with that because three years is a long time to wait, and so that’s why I'm emphasising that the voucher schemes are still staying in place, and if those people want to come forward with a voucher scheme, we're very happy to facilitate that.

In terms of the £80 million, it is indeed all on the table. I'm actually rather disappointed that the tenderers in all three lots have not wanted to spend more of that money than they have indicated to us through the procurement process, and I fear that that’s because of the vigorousness with which we insisted that the first contract was carried out on target. And, as you know, many times in this Chamber, I highlighted the penalties that would happen if that target was not met. The target was met. They did make the premises target. It was, I think—I probably did it myself, and other Ministers did talk about it in a percentage term at the beginning of the project, but actually it was a very specific number of premises, which I've mentioned on a number of occasions. Obviously the percentage of premises changes because the number of premises changes, so that’s not a very good judge.

In terms of the availability at 100 per cent, I dislike saying this, Deputy Presiding Officer, because, to some extent, it is a little disingenuous, but, of course, it is available—it's just a question of how much you're prepared to pay for it. So, at this point in time, were you prepared to pay for it, you could get a fast fibre connection to your premises via the Ethernet network, which would cost you quite a lot of money, but it is available. That network has been facilitated across Wales, but it's out of the reach of many of the people of Wales, but it is available if they wanted it, and we have facilitated that. I agree with this; that's true, but it is, nevertheless, true that that is available, and that has been no small feat in itself as well. It's no consolation to Mrs Jones of wherever that she still hasn't got it.

So, I hope, in the statement, I was also emphasising—and I mentioned a few of the projects that are very different in nature—the fact that we have resourced the community teams to make sure that we can go out and get as many of these community projects together as possible to ensure that those people can get fast access to the vouchers and therefore to the schemes, and we're very keen to facilitate those. As you know, I've been doing a tour all around Wales talking to people about what is possible, and out of most of those meetings has come at least one project, and one in your own area, in fact. And I very much emphasise that today—we are very keen to work with businesses and clusters of communities. They could be geographical clusters, they could be interest clusters or anything else—we're very happy to work with them to see what can be facilitated via a scheme.

And the last bit of my response—you did ask me a set of complex questions, to be fair—is: the reason I'm not able to say how much money I'm putting into that is I want to see how much the final lot that's let actually costs and then all the rest of it will be put into the community pot. So, we are determined to spend all the money on the table on fast broadband connection.