Committee report criticises Digital Economy Bill

Brands the 50p levy unfair and says there should be more definition on the 2Mbit/s service commitment

The report expressed concern about elements of the bill

The fact that the government would rely on a single "part-time minister" to drive through the provision of next-generation broadband has been criticised in a report from an all-party commons committee.

It follows the resignation of former communications, technology and broadcasting minister Lord Carter, leaving the task entirely in the hands of Stephen Timms, a senior Treasury minister as well as a minister in the Business, Innovation and Skills (BIS) Department.

BIS committee chairman Peter Luff issued the warning following publication of a report raising a series of concerns about the policy.

He said: "We are also worried about the current arrangements for delivering the policy, with a part-time minister also serving in the Treasury.

"We believe this creates a conflict of interest within the policy-making process — especially on an issue such as business rating arrangements — and does not provide the appropriate level of ministerial oversight."

One of the committee's complaints is that the current business rating system discriminates in favour of BT and against its competitors and calls for the reduction or temporary removal of business rates on fibre optic cable.

A highly critical report from the committee supported the government's focus on the digital economy and the need to increase broadband speeds – a bill is proceeding through Parliament – but expressed concern about other elements of the bill.

These elements include the fairness of the proposed levy of 50p per month on fixed lines, the lack of definition of the proposed 2Mbit/s universal service commitment, the wisdom of financial intervention now to promote higher-speed " next-generation access", the obstacles the business rating system put in the way of developing the broadband network and the ministerial arrangements for delivering the government's objectives.

The report said the so-called telephone tax, to be imposed in the coming Budget and finance bill, would be "regressive" and "place a disproportionate cost on a majority who will not, or are unable to, reap the benefits of that charge."

It warned early intervention was in danger of distorting the market.