Committee
Rural Economy and Connectivity Committee 17 March 2021
17 Mar 2021 · S5 · Rural Economy and Connectivity Committee
Item of business
Digital Connectivity
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 Finderne community council to discuss that yesterday, along with Richard Lochhead MSP as the local member. We did not want to prevent people from having a chance to get a superfast broadband connection while the legal action in the north lot area was under way, so we made the main voucher available to everyone in the north irrespective of whether they were being delivered to pre or post December 2021. Normally, if they were being delivered to post December 2021, they would get an interim voucher to tide them over until the longer term solution came in. The contract that we have signed with BT for the north lot will deliver what we believe is a fantastic outcome for the region. To account for the changes in the commercial bill plan that we have just been discussing, BT is required to remodel its bill plans. That means that there is a bit of uncertainty about which premises will be eligible for an interim voucher or the main voucher if they are not covered by R100. That remodelling exercise is a state aid requirement; the programme is governed by the out-going state aid arrangements that we had while we were in the European Union and in the transition period. Until those bill plans are finalised, it will not be possible to confirm which premises are eligible for an interim voucher and which are not. I know that that has been hugely frustrating for the community in Finderne, as we have discussed the subject with it. As I said, we have tried to be helpful by making the main voucher available to everybody, on a non-discriminatory basis, so that they can secure a superfast connection. However, there is a risk that, if someone uses the main voucher, they could subsequently be removed from the R100 contract bill plans. If it turned out that their premises were due to be covered by R100 but they had used the main voucher, it would in effect descope them from R100. We are therefore trying to protect the interests of those in areas such as Finderne by making sure that we know that information before we get into discussing main vouchers versus interim vouchers with them. We do not want to prevent them from getting a better solution than they could get with the main voucher if they were to wait and perhaps get full fibre. In the case of Finderne, roughly 70 per cent of the build in the area was thought to be commercial at the time when the intervention area for R100 was settled. Subsequently, the commercial proposal dropped out. If we start from a position of that holding firm in the remodelling exercise, roughly 70 per cent of the community would be eligible for the main voucher. However, we may see some come back in, given that other areas have gone out to commercial build. The area may now be picked up by R100 through the contract with BT. We are waiting to see how many of the premises might be covered under the contract. To try to be helpful to Finderne community council, we have provided it with a list of 155 premises that we know for certain are eligible for the interim voucher. They are within R100 and are likely to be delivered to after December 2021, and they are therefore able to download the interim voucher without any downstream consequences for getting the R100 solution. I am not sure whether that spreadsheet has been physically provided yet, but we agreed yesterday that the R100 team would forward it to the community council. It will be able to communicate directly with those households to say that it knows that they are eligible for the interim voucher and to encourage them to take up that opportunity, which will save others from going on to the checker. As soon as we are able to give information to the remainder of the community, we will do that. We have committed to engaging with the community council on any updates that come through on the intervention area. We will notify it of them in order to save members of the community from having to go online and use the checker on a regular basis. I hope that that is helpful. We try to be helpful in making the main voucher available. Data is now coming through that means that we should be able to start identifying those who are eligible for the interim voucher because we know that they will get an R100 solution in the near future.
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...