Committee
Rural Economy and Connectivity Committee 17 March 2021
17 Mar 2021 · S5 · Rural Economy and Connectivity Committee
Item of business
Digital Connectivity
Thank you, convener, and good morning to committee colleagues. As our Covid-19 vaccination programme provides some long-awaited light at the end of the tunnel, so the Scottish Government’s plans for economic recovery are brought into ever-sharper focus. I recognise that, as we seek to ensure that the recovery is both green and resilient, high-quality future-proofed digital connectivity will undoubtedly play a central role. That is why, despite all regulation and legislative competence in the area of telecommunications being wholly reserved to United Kingdom ministers and the UK Parliament under the provisions of the Scotland Act 1998, as colleagues will be aware, we are seeking to accelerate investment in Scotland’s digital infrastructure wherever possible. That began with the £463 million digital Scotland superfast broadband, or DSSB, programme, which delivered on time and on budget, going on to exceed our expectations by connecting more than 950,000 premises to fibre broadband, which is 110,000 more than was originally anticipated. Indeed, almost 95 per cent of premises across Scotland are now able to access superfast broadband, which is up from just 59 per cent in 2014. That has delivered a tremendous platform, which we are now building on with our substantial investments in the three R100 contracts, augmented by the Scottish broadband voucher scheme. When combined with the continued expansion of commercial coverage—which, I am glad to say, we are now seeing—we are ensuring that everyone in Scotland can access superfast broadband. As a result of our efforts to incentivise investment in full fibre through the extension of non-domestic rates relief in our full-fibre charter, the R100 programme has, in many ways, become a full-fibre programme. Build is well under way in south and central areas, and it is now mobilising in the north. Mobile connectivity is equally vital for many homes and businesses in Scotland, and it can be just as transformative, particularly for those in remote rural and island communities. Through our Scottish 4G infill programme, our £25 million investment will deliver up to 46 new masts, bringing 4G to some of Scotland’s most recognised not-spots. We have already made significant progress, with 11 masts now operational across six local authority areas and many more to follow throughout this year and until 2023. There are, I think, 18 under construction and 11 at the pre-build stage. Looking to the future, we are investing now to ensure that Scotland reaps the fullest possible benefits from 5G and to secure our position, we would like to think, as one Europe’s most forward-looking digital nations. We have established the Scotland 5G Centre, which will deliver a national network of 5G innovation hubs to work with local small and medium-sized enterprises so that they embrace, utilise and, ideally, innovate with 5G technologies. Earlier this month, the Scotland 5G Centre launched the infralink project, which is creating a national best-practice framework to facilitate the siting and operation of both 4G and 5G digital infrastructure on publicly owned land, buildings and streets. Resilient digital infrastructure is also crucial in enabling the movement of data both domestically and internationally. I am pleased to say that, today, through our work with the Scottish Futures Trust and a range of partners, we have published a vision and action plan for Scotland to drive significant economic growth through attracting new investment in the green data centres market. That will allow us to capitalise on innovation from real-time, data-hungry applications such as the internet of things, big data analytics and artificial intelligence. Taken as a whole, our ambitious programmes will leave us well placed to deliver the meaningful step change in digital infrastructure that I know the committee is keen to see and which we feel is required to ensure that all parts of Scotland can share in the benefits of digital connectivity. I am happy to take questions.
In the same item of business
The Convener
Con
Item 2 is an evidence session on digital connectivity. I welcome Paul Wheelhouse, the Minister for Energy, Connectivity and the Islands, and Clive Downing, t...
The Minister for Energy, Connectivity and the Islands (Paul Wheelhouse)
SNP
Thank you, convener, and good morning to committee colleagues. As our Covid-19 vaccination programme provides some long-awaited light at the end of the tunn...
Colin Smyth (South Scotland) (Lab)
Lab
My questions are about the central and south lots of the R100 programme. Can you confirm that the central lot procurement will connect 32,000 premises, with ...
Paul Wheelhouse
SNP
It is helpful to put this on the record. I can confirm that the R100 central lot contract will connect 32,216 premises to superfast broadband, with 95.6 per ...
Colin Smyth
Lab
We appreciate that update on the numbers. You said that progress is being made on the ground in the central and south lots. Will you expand on that and expla...
Paul Wheelhouse
SNP
BT is making substantial early progress across the central and south areas. The committee is aware that delivery of those contracts is a massive civil engine...
Colin Smyth
Lab
That is helpful, minister. Thank you. Your update suggested that the R100 programme will now connect around 50,000 properties in the central and south Scotla...
Paul Wheelhouse
SNP
Indeed, Mr Smyth. You raise an important point on electronic communications codes, which we are aware of and which is relevant here in relation to the positi...
Colin Smyth
Lab
You have rightly highlighted where powers might lie elsewhere, but powers over planning lie very much with the Scottish Government, which currently has the p...
Paul Wheelhouse
SNP
My apologies for not addressing that point, Mr Smyth. You did raise that, but I missed it in my response. We are aware of the need to do that. I should poin...
Robbie McGhee (Scottish Government)
I confirm that that is very much a live issue. We know that there is legislative activity at the UK level. We have always tried to match or go further than o...
Richard Lyle (Uddingston and Bellshill) (SNP)
SNP
My questions follow on from Colin Smyth’s questions. We need to clear this up. Broadband is not a devolved matter; it is wholly the responsibility of the UK ...
Paul Wheelhouse
SNP
All legislation relating to telecommunications and its regulation is the responsibility of UK ministers. We have used economic development powers to interven...
Richard Lyle
SNP
Because of the UK Government’s failure to improve broadband throughout Scotland, the Scottish Government has taken the matter on board. Am I correct in sayin...
Paul Wheelhouse
SNP
That is my interpretation. Thank you for raising that point. I am not making a direct criticism of current ministers—they have inherited a situation from the...
Richard Lyle
SNP
There is a mix. Thank you for clearing that up. Although, as you said, broadband is not devolved, BT has been issued with an updated intervention area in th...
Paul Wheelhouse
SNP
At the contract signature stage, BT indicated that the build in the north lot would be completed in 2026. We have committed to providing Openreach with the f...
Richard Lyle
SNP
What was the outcome of the R100 state aid public consultation that closed in January? When will the final intervention area maps be published?
Paul Wheelhouse
SNP
I will try to answer that as best I can. Following the north lot contract signature on 11 December, a state aid public consultation was published to reconfir...
The Convener
Con
I get the impression that lot 1 of R100 will be complete by 2026. Is that what you have just said?
Paul Wheelhouse
SNP
Yes. That is certainly what we assumed at the time when the contract was awarded to BT. As I said, BT is trying to accelerate that, but there is a safety-fir...
The Convener
Con
That will be bitterly disappointing for people in the Highlands, who were expecting it in 2021—indeed, they were promised it in 2021 by your predecessor. Can...
Paul Wheelhouse
SNP
Yes—2026 is the final date for completion of build and sign-off of the programme. The work might continue into 2026 for some premises, based on that assumpti...
The Convener
Con
I know that many people will be disappointed. I want to pick up on the point that you made about rates relief for fibre cabinets. I believe that you said th...
Paul Wheelhouse
SNP
I have not considered that issue, although I understand the point that you are making. I am happy to ask colleagues whether they have done any work on that. ...
Robbie McGhee
To clarify, the rates relief does not just apply to fibre cabinets; it applies to fibre generally, so that is lit fibre and dark fibre across the country. By...
The Convener
Con
I have written to the Government about the issue because, if someone gets to a certain level of income with line-of-sight equipment, it will attract business...
Peter Chapman (North East Scotland) (Con)
Con
My questions are on the Scottish broadband voucher scheme, which, as you readily admit, much of the north area will have to rely on in the medium term. Ev...
Paul Wheelhouse
SNP
I will touch on the point that Mr Chapman made about the north lot and on what happened with regard to the likes of Finderne. I met the representative of Fin...
Peter Chapman
Con
We have focused on one village in Moray, but I assume that many communities across the north are in a similar position and are facing a heap of uncertainty a...