2 Ministerial Accountability
Background
11. In July 2009, Lord Carter, the Parliamentary
Under-Secretary of State for Communications, Technology and Broadcasting,
published the Digital Britain White Paper, which set out
the Government's ambitions for the digital economy. Following
the publication of the White Paper, Lord Carter resigned his ministerial
position to pursue a career outside of Government. Responsibility
for delivering Digital Britain, through the Digital Economy Bill,
was given to Rt. Hon. Stephen Timms MP as a Minister in the Department
of Business, Innovation and Skills, in addition to his existing
position as Financial Secretary to the Treasury.
12. During the course of this inquiry we became
increasingly concerned about the lack of a full-time replacement
for Lord Carter. Digital Britain, and the Digital Economy
Bill, will shape the delivery of information technology for many
years to come. It is a vital aspect of government policy, and
indeed, an integral part of the country's response to the recession.
Mr Timms is an able Minister, capable of delivering on either
of his two portfolios. But we are of the view that it is neither
appropriate nor possible for a Minister to deliver on them at
the same time.
13. Of equal importance is the nature of the
two Ministerial portfolios at hand. As both Financial Secretary
at the Treasury and Minister for Digital Britain at the Department
for Business, Innovation and Skills, the Minister has been put
in the unenviable position of encouraging investment and innovation
in the digital economy, while at the same time being responsible
for revenue raising.
14. A clear example of these competing claims
came to light during our inquiry. We received a number of representations
on the application of business rates to fibre optic cable and
the apparent detrimental impact those rates had on the development
of the Next Generation Access market.[11]
The application of business rates is considered in more detail
later in this Report.
15. When pressed on the potential for a conflict
of interest between his obligation to the Treasury to raise taxes
and his role as the champion for the digital economy offering
support and incentives to business, the Minister argued that:
one of the advantages of the way that my portfolio
works out is being able to make progress on the levy that we were
talking about earlier on. But I am in a position as well to talk
to the Valuation Office Agency and there may well be a need to
do so.[12]
On one level this may be the case. But equally, the
Minister may find himself in the awkward position as a Treasury
Minister of having to judge the financial merits of one of his
own proposals as a Minister in the Department of Business, Innovation
and Skills.
16. We remain concerned that
following the resignation of Lord Carter, the Ministerial structure
which created a part-time Minister for Digital Britain provides
neither the appropriate ministerial oversight nor the weight to
match the importance of this policy area. Furthermore, we do not
consider it appropriate that a single Minister should be both
the champion of digital innovation and responsible for tax revenue.
This is no reflection on the current Minister, but given the importance
of the digital economy to the United Kingdom, we believe a full-time
post is required and one which is unencumbered with potential
conflicts of interest. We recommend that the Government again
appoint a full-time Minister for Digital Britain at the earliest
opportunity.
11 Ev 149, 156 and 159 Back
12
Q 327 Back
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