10. Short Debate: The battle for better broadband

Part of the debate – in the Senedd at 5:35 pm on 8 May 2019.

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Photo of Paul Davies Paul Davies Conservative 5:35, 8 May 2019

Superfast broadband coverage in Wales has increased to 93 per cent of homes and businesses from 89 per cent last year, according to Ofcom's 'Connected Nations 2018' report, and so, whilst I accept that some progress is being made, much more needs to be done to tackle those areas left with substandard broadband provision. I'm sure that the Deputy Minister will agree with me that it's absolutely crucial that areas like Pembrokeshire are brought up to speed to enable local communities to be on an even playing field with the rest of Wales, and indeed the rest of the United Kingdom.

According to the Welsh Government's own figures, £85 million has been allocated for the second phase of Openreach's efforts to roll out an adequate broadband service across Wales. Now, we know that phase 2 of the project is expected to cost £22 million, which would leave over £60 million left in Openreach's pocket. I understand that, in responding to recent questions on this specific matter from my colleague Russell George, the Deputy Minister confirmed that he was not aware of how the surplus money will be used, as the Government is still thinking through the implications of how to do just that. Therefore, perhaps, in responding to today's debate, at the very least the Deputy Minister will now commit to providing a breakdown of exactly how much money will be spent in each local authority area so that, in the interests of transparency, the people of Wales can see where the money will be targeted and how their communities will be prioritised once the Welsh Government makes a decision on how to move forward.

Now, Members will remember the 2012 Welsh Affairs Select Committee report into broadband in Wales, which found that

'Increasingly, reliable internet access is seen as a driver of economic performance and vital for business, education and people living alone or in isolated areas.'

Indeed, that's certainly the case in my constituency, where small businesses and farmers have been disadvantaged by limited broadband coverage. That Welsh Affairs Select Committee report highlighted evidence from the Country Land and Business Association, who argued that, and I quote:

'Without broadband, rural areas will continue to struggle, this being exacerbated by Government efforts to digitalise most forms of administration, such as the single farm payment and the whole-farm approach.' 

Unquote. Indeed, the annual National Farmers Union broadband and mobile survey also showed that 45 per cent believe their current speed is not fast enough for their business needs. At this point, it's worth reminding Members that farmers in Wales are having to become increasingly reliant on online services and applications, and so it is crucial that they have adequate access. In areas like Pembrokeshire, farming is a hugely important industry for the local area, and so it is crucial that those farmers have every tool possible to help their businesses continue to flourish. Therefore, the Welsh Government must redouble its efforts to provide adequate broadband in rural areas so that these farmers can continue to be competitive in the future.

However, it's not just farmers in Pembrokeshire that are struggling, but small businesses, families and even a school. As Members will be aware, Pembrokeshire enjoys a healthy tourist industry, largely made up of smaller accommodation providers and food and drink businesses. It goes without saying that those businesses desperately need to be able to market themselves online in order to attract and generate business and to attract visitors from other parts of the UK and, indeed, from all over the world.

Dennis O'Connor, tourism liaison manager for Pembrokeshire Tourism recently said, and I quote, 'Tourism is worth circa £585 million annually to the Pembrokeshire economy, but, in order for future growth to be achieved, tourism providers need to have a good connectivity to be able to maintain or increase market share. They are no longer able to rely upon destination marketing being undertaken by the local authority, because of shrinking budgets, which means increased emphasis is on the business to carry the burden.' Unquote.

It remains the case that Pembrokeshire's tourist operators are at a disadvantage compared with other parts of Wales, and certainly the rest of UK.

Now, the 2017 digital exclusion heatmap by Go ON UK has identified Pembrokeshire as one of the Welsh counties where digital exclusion is high. It shows that 3,747 households in Pembrokeshire do not receive broadband speeds of at least 10 Mbps, with just over 13 per cent of adults in the county having not been online in the last three months.