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8.21 pm
Mr. Brian Jenkins (Tamworth): I was struck by what my hon. Friend the Member for Putney (Mr. Colman) said about local radio. I am not sure whether the Minister realises it, but I have a local radio station in my constituency. Perhaps I should say that for four months it was a local station that operated four restricted service licences. Then came the point at which the operators had to apply for a licence. As soon as they reached that stage, in moved the big boys. The station will now be local only in name.
Unfortunately, the telecommunications industry is all about the big boys, because the little boys are swept aside. We must remember that the industry is all about big firms that have the money. What worries me and many other people in the United Kingdom is that we have reached a situation in which not monopolies, but oligarchies, prevail. Individual firms can come together and collude, which leads to fewer firms and creates more problems for us to contain. I am therefore pleased to speak in the debate on the Second Reading of the Bill, which examines the cost-based fees that distort the market, encouraging the hoarding that is so unfair to small businesses.
My hon. Friend the Minister for Small Firms, Trade and Industry is fully aware of the current situation because she has taken the opportunity to visit my constituency. I am very grateful for that visit, during which she made a tremendous impression on my local chamber of commerce. She is a warm person and all hon. Members know how committed she is to her job, in which she has done tremendously well. She has come to the fore and made such a good impression that, for the first time, members of my local chamber of commerce believe that they have a Government who are listening to them.
Let us ensure that the consultation is taken seriously. It will be no good listening and not acting. Ministers are now going back to the firms and companies that they have already consulted to say, "We listened to you the first time round; now will you explain what you meant, because we are not quite sure if we are doing what you want us to do. Do we have it right?"
I represent a town that was built on small firms, and we prided ourselves on our resolve that large companies would not move into our area. We believe that we must allow our little companies an opportunity to show their entrepreneurial skill and to develop. They have grown from small to medium companies. The Bill will help in the objective of allowing small companies that are disadvantaged because of a lack of economies of scale to prove themselves. Large firms currently enjoy economies of scale which mean that they can sweep aside the competition, allowing no development opportunities for small firms.
Last night, with several other hon. Members, I attended a meeting at which the Office of Telecommunications regulator spoke about the competition Bill and about the future of the telecommunications industry. He said that neither he nor anyone else in the industry knew where the industry was going. Although they had an idea of where they are headed, they cannot be sure because of the tremendous speed of development in the telecommunications industry. Although the Bill deals with what we think will be the future, we had better plan on revisiting the issue in another three to five years. Technological advances in the industry are so great that channels in the spectrum will soon be condensed.
We must be very careful not to fall into old traps. I hope that another hon. Member will help me out, because I cannot remember the name of a company that submitted a bid for a railway franchise to move freight. About a year to 18 months later--almost overnight--those who won the franchise sold their assets and became millionaires.
I know that my hon. Friend the Minister for Science, Energy and Industry will be very careful in future auctions to ensure, first, that companies do not overextend themselves. However, I do not believe that British firms are so stupid as to overextend themselves. I think that they will offer a realistic price and avoid the trap mentioned by Opposition Members. The hon. Member for Sevenoaks (Mr. Fallon) told the House that British firms are so stupid that they will make bids that are so high that they will not be able to pay the licence fee or operate the franchise. I have no doubt that the business skills of those companies are quite acute. I have seen them operating, and they are very good. My great concern is that, if they are not careful, the Minister and his team may not see the collusion that can occur among bidders in the market and that British taxpayers may not get the best deal.
I can mention many people who have an interest in telecommunications matters--I have a list of some of them. As hon. Members will know, many people have cable in their homes., but companies are developing radio-controlled mobile telephones that can be switched from the car to the house. So, Mr. R. Longstaff of Shelton will hope that the Minister will look after his interests. Mr. D. Longwell will take an acute interest in the matter. Mr. A. P. Longworth, Mr. D. Lonsdale, Mr. F. G. Looker and Mr. G. Loomes will all be interested.
Mr. John M. Taylor:
On a point of order, Mr. Deputy Speaker. We all know that there are necessary
Mr. Deputy Speaker:
It is not for Opposition Members to dictate the course of the debate. The debate can go on until 10 o'clock and hon. Members will be allowed to make their contributions in the normal way.
Mr. Taylor:
Further to that point of order, Mr. Deputy Speaker. I intended no disrespect to you, as you know. It is not for me to presume to advise how the debate should be run, but I am aware of the conventions. My hon. Friend the Member for Sevenoaks rose in good faith to wind up and we are now hearing contributions from people who did not even hear what he had to say.
Mr. Deputy Speaker:
I have dealt with that point of order already. Everything has been done as it should have been done, even if all the conventions have not perhaps been observed as they normally are.
Mr. Jenkins:
Thank you, Mr. Deputy Speaker. For the benefit of the hon. Member for Solihull (Mr. Taylor), I can confirm that I was here until just after 7 o'clock, when I had to leave. I watched the debate on the monitor while I was telephoning some people whom I had promised to telephone and I returned as soon as I could. I am sorry if the hon. Gentleman felt that I missed part of the debate--
Mr. Patrick McLoughlin (West Derbyshire):
On a point of order, Mr. Deputy Speaker. It is obvious what the Government are doing. They are so embarrassed by what will be discussed in the Adjournment debate that they do not wish it to start early. That is an abuse of the Chamber and of the parliamentary process and it should be on the record.
Mr. Deputy Speaker:
That is not a matter for the Chair.
Mr. Jenkins:
The individuals I have mentioned have an interest in the Bill, because it involves their future. I am sure that the Government will safeguard their future. At the moment, they may not feel that they are part and parcel of the industry, but they are. The industry is coming their way fast.
Today we have certain technology and techniques, but in the future we will need to be quicker and more flexible to ensure that the appropriate instruments are put in place. I want a Government who are prepared to listen and act fast. If we do not act fast, we will lose our position. Britain is now the number one country in Europe for technology. Americans say that our technology is moving so fast that they come here to see how we operate and to take ideas back to America. We do not want to lose that position. We want to ensure that our industry is given the flexibility and the right to expand and develop.
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