Rt. Hon. John Battle - Former Minister of Energy and Industry (May 1997 - Jul 1999)

The House Of Commons Private Member's Adjournment Debate

"HMG STRATEGY FOR THE INTERNET"

INTRODUCTION

My Honourable Friend said that the Internet would be the key to retooling and reskilling, and that it would reshape how we do business. I underline that, and also give my Honourable Friend a clue about why I am here. As a Minister in the DTI, I am responsible for ensuring that the banner above the Department bears the word "competitiveness". For the United Kingdom to be competitive, we must ensure that the Internet is a vital tool for business; that youngsters, schools and the whole of society can take advantage of that tool and, of course, that the Government get the matter right in-house. We are moving into a digital economy, where e-trade and e-commerce will truly transform what we have seen so far.

Some Honourable Members expressed concern about crime on the Internet, but I should point out that the police - I cannot go into detail - are using the Internet to track criminals. The Internet, as I am sure we all accept, is an ambivalent tool. We need Government-wide co-ordination across all Departments to ensure that we can take advantage of the new possibilities that are offered by computing and the Internet.

The successful development and exploitation of new technologies is crucial for UK competitiveness as we approach the 21st Century. We must build on the UK's strengths in creativity, innovation, new ideas, new processes and new products. The UK has a proud history in the field of technology and innovation, which the Government will maintain and develop.

Examples of this creativity and innovation were evident last week when I presented this year's Information Society Creativity Awards, a £1 million programme, part of the Information Society Initiative Programme for Business, designed to support the development of new and innovative content for the Information Society. Over half the winning entries involved exploiting the power of the Internet.

As my Honourable Friend said, it is worth remembering that the World Wide Web was pioneered by a British scientist, Tim Berners-Lee, at CERN, which is a science project in particle physics that has been, and will continue to be, sponsored and supported by Government - it is important to remember what comes from the science base.

1998 is also the Year of the Computer, celebrating 50 years since the world's first stored program computer, the 'Baby', successfully ran its first program in Manchester. And today's research and technology is being showcased this week as the 5th National Week of Science, Engineering and Technology takes place. The "SET for Life" event 2 days ago featured a number of events to highlight how the Internet can be used to change the way we work. It was targeted particularly at politicians and Civil Servants to highlight the important role of science and engineering across Government.

When I first entered the House of Commons, I asked for a computer modem point in the shelf of an office I was given in the Cloisters downstairs. I was told that we were offered the privilege only of a telephone. To link one's computer to one's home or constituency office was unknown at that time. I managed to do so, but, for obvious reasons, I ended up with a rather larger phone bill than everyone else. As Members of Parliament, we need to use the equipment - I think that, especially since the general election, most Honourable Members appreciate the need to communicate through computing and the Internet.

THE INTERNET AND THE BENEFITS IT BRINGS

The growth of the Internet brings many benefits. It makes communication with people almost anywhere in the world quicker and easier. We can access, manipulate and interact with large quantities of information stored on the World Wide Web at the touch of a button, and new technologies can help us to improve the delivery of many public services.

I shall focus on electronic commerce, as the possibilities it offers for small and medium enterprises to open new markets are of central importance. Today, 27% of companies in Britain - including nearly 40% of large companies - have a website, and 29% of small businesses are developing one. A survey showed that 81% of the respondents believed that the website would be important to their businesses. Moreover, small businesses buy parts on the Internet.

My Honourable Friend the Member for Ellesmere Port and Neston mentioned his problem with American lawyers. I suggest he looks at the web page "Welcome to Helpnet" which offers advice in psychiatry, although it notes that it is not meant to be a substitute for psychotherapy. My Honourable Friend the Member for Sittingbourne and Sheppey mentioned trusts and money. Bay Shore Trust in Canada offers over the Internet a loan in 60 seconds to Canadian citizens with a bank account. Finance is an important area; it will be critical for small and medium enterprises to organise back-up finances over the Internet. There will be new ways of doing business and finding support for business.

And consumers will benefit from a wider choice of goods and services which can be tailored to their individual needs, and greater convenience in choosing when and how they make their purchases.

PROMOTING USE OF THE INTERNET

The Government wants to ensure that everybody in the UK can benefit from the Information Age. We will not create a society divided between information 'haves' and 'have-nots'. This means building people's confidence in using the new technologies and ensuring that the on-line environment is as safe and secure as the more familiar off-line world.

BUILDING CONFIDENCE IN USING NEW TECHNOLOGIES

We will widen access to the new technologies and ensure that everyone has the chance to gain the skills to use them. This will enable people to make the most of the opportunities presented by ICTs in their daily lives; whether at work or at home, and whether for business, study or leisure.

I pay tribute to the Honourable Member for Esher and Walton, who initiated schemes such as IT for All and the GEMESIS project, which my Honourable Friend the Member for Eccles mentioned. We are enhancing those schemes and pushing them forward, as I am sure that the Honourable Member for Esher and Walton will appreciate.

I give an example. My Honourable Friend the Member for Ellesmere Port and Neston explained that he was engaged in the GEMESIS project in his constituency. I have met the Chief Executive of Cable and Wireless, who briefed me on the wide range of the company's projects. The GEMESIS project has the potential and vision for "IT for All" to ensure that everyone has skills and that society is not divided into those with access and those without access. We should emphasise not only business and educational uses, but social and cultural uses.

IT for All

The Government-led IT for All programme exists to raise awareness, provide access and develop skills in the use of ICTs, among adults who might not otherwise have these opportunities. Working in partnership with the private sector, we currently have a national network of 1600 IT for All access sites which give people hands-on experience of new technology in a friendly environment, with trained staff to help them.

I have visited some of these sites myself. For example, in my own constituency in Leeds, the Equality project, which is aimed at assisting people with severe disabilities, is using the new technologies to counter social isolation and to investigate how standard IT equipment and software packages can be adapted to be made accessible to disabled people. Another excellent example, in Norris Green Liverpool, is a drop in centre for people of all ages seeking training and education particularly in information technology, targeting those with little or no IT skills - reaching out to a community where unemployment is a major issue.

We given a major boost to IT for All - our aim is that, by the end of the year, the public will have access to a minimum of 4000 sites, half of which will form a national network of Learning Centres where the public can acquire basic IT skills.

IT really does have to be for all - that is, inclusive rather than dividing society into information-rich and information-poor. And by working in partnership, companies large and small, and community groups, can help bring forward the inclusive information society.

ISI Programme for Business

Where IT for All is for the wider public, the Information Society Initiative (ISI) Programme for Business helps smaller companies in particular to seize the opportunities of the Information Age to improve their competitiveness. The programme raises awareness of the new opportunities, with the assistance of a network of ISI Local Support Centres. Sixty of these are already up and running, and 20 more should be opening in the coming months. The Centres are usually based on the existing business-support activities of Business Links and similar organisations. They focus specifically on business issues relating to new, networked technologies such as the Internet. Other ISI initiatives support business organisations at a sectoral level, for example trade associations, in their effort to disseminate the benefits of new technologies to their members, and support those UK companies who are developing the innovative new products, applications and technologies for the future.

Enterprise Zone

The Enterprise Zone, which we launched in November, is a new idea which will complement the Programme for Business. It links together Internet sites which have been judged by business information experts to be authoritative, and is clearly signposted in a language that business can understand. We are helping businesses to access reliable information they need from the Internet, including on how to raise finance, at any time of the day or night, and we have developed new initiatives.

Information Age Competitiveness Working Party

Both the Enterprise Zone and the Programme for Business will help to increase the UK's competitiveness. IT for All will enhance the wider skills base on which this depends. And the Competitiveness UK initiative launched by my Right Honourable Friend the President of the Board of Trade provides the framework for this. She announced the creation of six Competitiveness Working Parties last November. Their findings will help inform the White Paper on Competitiveness due later this year. I chair the Working Party on Encouraging Innovation and my Honourable Friend the Parliamentary Under Secretary of State for Small Firms, Trade and Industry, chairs the Information Age Working Party. I know that her group is looking at the barriers and drivers to the uptake of ICTs and intends to make practical proposals to be taken forward by both business and Government to improve business competitiveness.

Information Age Partnership

My Right Honourable Friend the President of the Board of Trade is also forging an Information Age Partnership with leading chief executives from the IT, electronics, communications and content industries. The aim is to accelerate the development of the Information Age by focusing on a small number of important themes where industry and Government, working together, can add value and momentum to existing initiatives and groups. Electronic business will be on the agenda.

Wiring up Schools

The initiatives I have described will increase access to the Internet for UK businesses and the wider adult population. However, the Information Age offers new ways of learning, not only for young people, but for all of us throughout our lifetimes.

In 1995, in opposition, we conducted exhaustive research into the superhighway and its uses, and published a full report, "Communicating Britain's Future". In Government, we have begun to wire up schools and launched the National Grid for Learning and the University for Industry. We expect the number of schools connected to the Internet to double by the end of the year. These new ideas, brought to fruition by this Government, were not thought of by the previous Administration.

National Grid for Learning

Through the National Grid for Learning, schools will be able to harness the Internet to education, accessing valuable content and sharing best practices through a series of intranets linking schools together.

University for Industry

For adults, we have launched the University for Industry. It will be a new kind of institution that delivers courses to adults at home, in learning centres and at work, exploiting the number of homes with PCs and realising the potential for lifelong learning at work. It will work in partnership with organisations including colleges, Training and Enterprise Councils and libraries.

GOVERNMENT SERVICES

As well as enabling all our citizens to make the most of the new technologies, the Government will itself improve the way it uses ICTs. My Right Honourable Friend the Prime Minister has committed the Government to ensuring that 25% of its services are capable of being carried out electronically by 2002. My Right Honourable Friend the Chancellor of the Duchy of Lancaster has piloted an 'Intelligent Form' in December which combines four paper-based forms for the self-employed into a single electronic form.

Government Secure Intranet (GSI)

For internal business, the Government Secure Intranet (GSI) has the potential to provide a secure internal network for Government. It links departments and will provide Intranet facilities and Internet access within a controlled environment. A pilot phase is underway with 12 Government departments or agencies either connected to the service or in the process of being connected. The GSI is being developed alongside the Open Government website, which provides Internet users with a single point of access to more than 600 websites run by UK Government departments, local authorities and public sector organisations.

The DTI Internet Site

Back in the DTI, we have over 3000 pages on an in-house Internet server, organised into 6 themed channels. The site continues to grow at a fast rate and a community of regular users that need up to date information from the Department has been established. In February 1998 over 2 million hits were recorded to the site. The Department is addressing this increased on-line activity by upgrading the content and organisation of the pages as well as the technical infrastructure.

'Virtual' Red Box

Shortly after taking office I asked officials at the DTI to investigate how IT could be applied to Ministerial Red Boxes. After studying the problem they have developed a 'Virtual red Box'. The system is firmly based on the DTI office system and allows my office to e-mail papers to me at home. From a PC at home I can get secure access via a high speed telephone line to my electronic office 'in-tray' and have immediate access to Red Box papers that need my attention. Having dealt with the papers I then Email any response back to my office in London where staff can action any comments and instructions I may have attached to the document.

The Virtual Red Box is a practical example of how IT can improve working practices and save money.

GOVERNMENT APPROACH TO INTERNET REGULATION

There are clearly an enormous range of benefits and opportunities which the Internet can bring, and we will capitalise on these. However, with opportunities and access, come risks. The Government is not complacent about the scope for the misuse of the Internet and we are acting to ensure that the on-line world is as safe and secure as the more familiar off-line world.

4 principles of Internet regulation

Our approach to regulation of the Internet is based on 4 key principles.

First, existing law should apply on-line as it does off-line. With very few exceptions where this is not possible, this is already the case in the UK. This means that, in general, each person is responsible for their own conscious acts and omissions.

Secondly, the global nature of the Internet means that international co-operation is vital. This is particularly important for issues of public interest such as obscenity on the Internet, and to prevent unnecessary barriers to trade.

Thirdly, businesses and consumers should have access to tools which enable them to protect themselves.

And finally, Service Providers should take voluntary action to uphold the law on-line. This works, and has real teeth because the first principle applies and the voluntary action is backed up by the full force of existing law.

Internet Watch Foundation (IWF)

The Internet Watch Foundation (IWF) is a good example of such action by the industry, Government and the Police, working together to uphold the law on-line. IWF provides a hotline to which Internet users can report material which they believe may be illegal. IWF makes an assessment of the material and, if it believes it is likely to be illegal (likely because only the Courts can make a judgement), it advises the appropriate service provider if the material is hosted on a UK server, or NCIS if it is hosted abroad.

Internet Service Providers will then remove the material from their servers. If they fail to do so and the material is later judged to be illegal, the ISP is liable for prosecution as an accessory to the crime.

IWF has now been in operation for just over a year. We are generally encouraged by its work to date, although we keep an open mind on the possible need for future regulation. My Honourable Friend the Parliamentary Under Secretary of State for Small Firms, Trade and Industry, announced on 3 March a review of the IWF's work, reporting to the Government in the Autumn. The review will focus on 4 areas:

First, the progress made on the removal of illegal material from the Internet. This will include an assessment of the number of reports received by IWF, the time it takes IWF to turn those reports around, and the compliance of ISPs with their advice.

Secondly, the review will look at the structure of IWF and consider how successfully it represents interested parties on its various boards.

Thirdly, the review will consider the next priorities for IWF. Its initial focus has been on the removal of child pornography; whilst this is still important, IWF needs now to broaden its focus on to other issues. These might include obscene (and therefore illegal) adult pornography, racist material, breaches of copyright, and protection from legal but harmful material.

Finally, the review will assess the level of awareness among the Internet industry and users generally, of both the IWF and of rating and filtering tools for self-protection. It will examine how far this awareness is translated into use of them.

Ratings and Filtering

Such ratings and filtering tools can be extremely useful in helping parents and other adults who care for children to decide on the types of legal material they wish their children to access. We support the deployment of the Platform for Internet Content Selection, or PICS, and the development of ratings systems. IWF has published a report for consultation proposing a ratings system for the UK, and is participating in an international group aiming to develop an international standard. The attachment of clear, objective ratings to Internet sites would then enable parents to set the parameters of material they consider acceptable for their children, on their individual PC. We also encourage parents to use the filtering tools available in the latest Internet browsers, which allow certain material to be blocked out.

Internet Action Plan

The UK approach to illegal and harmful content is being reflected in the European Union. The Telecoms Council, chaired by my Honourable Friend the Parliamentary Under Secretary of State for Small Firms, Trade and Industry, is considering a proposal for an Action Plan on the Safe Use of the Internet, and we hope to reach political agreement during our Presidency. International co-operation and co-ordination will be essential in tackling issues of illegal and harmful content. We support the aims of the Action Plan, which should encourage the development of national self-regulatory systems for the Internet throughout the European Union; alert and inform parents and teachers of the means available to protect children from harmful material; foster co-operation and the exchange of best practice; and promote co-ordination between Member States, for example by the creation of a Europe-wide network of hotlines for reporting illegal material on the Internet.

ELECTRONIC COMMERCE

The Government has also been active in international discussions on a framework for electronic commerce. This can embrace any use of ICTs at any stage of a transaction - from virtual window shopping through to ordering and, in some cases, even the actual delivery of services. It can take place between different businesses, or between businesses and consumers. Electronic commerce raises issues ranging from company law to Intellectual Property Rights and data protection. The global nature of today's technology means that international co-operation is required both to avoid creating unnecessary barriers to trade through incompatible national regimes and to address international public interest issues such as cyber-crime.

Bonn Conference

In July last year, I represented the UK at the Bonn Ministerial Conference on Global Information Networks. We, along with 28 other European countries, signed a Ministerial Declaration underlining the emergence of Global Information Networks as a highly positive development, with the potential to affect every aspect of our society. The Declaration emphasises the importance of creating conditions both in Europe and globally to foster the growth of electronic commerce.

Joint EU-US Statement on Electronic Commerce

This was followed by a Joint EU-US Statement on Electronic Commerce in December. This set out some principles on issues such as the role of Government in setting the regulatory framework for electronic commerce, and the primacy of the private sector in realising its full potential. There was also agreement to work together internationally in the pursuit of common goals.

OECD

The OECD has also been a valuable forum for discussion of these issues. A Ministerial Conference to be held in Ottawa is planned for October. We hope this will produce a co-ordinating framework for international co-operation on electronic commerce, outlining the approach to be taken for the issues concerned and the instruments required to address them - for example intergovernmental agreements, private sector guidelines.

'Global Communications Charter'

A similar initiative is now taking place in Europe. In February, the European Commission adopted a Communication setting out ideas for a 'Global Communications Charter'. This is described as a legally non-binding, multilateral understanding on a method of co-ordination to remove obstacles from the global marketplace. The Communication acknowledges the need to recognise the work of existing organisations and to include private sector and social group interests. It is a useful contribution to the international debate on these issues and should build on earlier achievements and work in other fora.

INFORMATION SECURITY

Information security is vital to the development of electronic commerce. Businesses and individuals need to be confident that the information they transmit across public networks - such as the Internet - will not be compromised. Fortunately much work has been done in this field, by both the Government and the private sector. The Government has given much consideration to the issues of digital signatures and encryption and will be announcing the way forward shortly.

SPONSORSHIP INITIATIVES

I have now given you an indication of how the Government is acting to promote use of the Internet and other new technologies, and how we are ensuring the on-line environment is safe, secure and stable for individuals and for businesses engaging in electronic commerce. But we also recognise the crucial importance of the UK industries supplying the technology to make this happen, and we want to help them succeed. We will ensure the UK software sector is well placed to take advantage of the rapidly growing global marketplace.

For example, two projects under the Sector Challenge scheme make use of the Internet to provide services to companies in the computer software and services area.

The Software Business Network is run by the Computing Services & Software Association. It aims to create a self-help collaborative network bringing together key players including entrepreneurs, business support organisations, and marketing and management experts, to help young software businesses achieve faster, sustainable and profitable growth.

Growing the Software Sector

Another project is 'Growing the Software Sector', which is run by the Northern Ireland Growth Challenge. The project aims to help member companies achieve improvements in competitiveness, quality and skills, in order to grow the indigenous software industry in Northern Ireland. The Software Industry Federation is a major partner in the project, representing organisations who develop and supply computer and added value services.

CENTURY DATE CHANGE

If businesses and individuals are to feel confident about using the Internet, they must feel sure that IT and computer-controlled systems will be able to cope with the century date change. We are actively addressing the problem. Every business, every Department and every organisation must take responsibility for tackling its own systems. But the Government will give leadership. My Right Honourable Friend the Chancellor of the Duchy of Lancaster is monitoring progress in central Government and will make quarterly statements to this House on Departmental plans. Since November, my Right Honourable Friend the President of the Board of Trade has been chairing a Ministerial Group to co-ordinate public and private sector activities. It is focusing on ensuring that the country's essential infrastructure is prepared and that contingency plans are in place in case some systems fail to make the date change successfully. And my Right Honourable Friend the Prime Minister will launch a major event addressing the century date change issue on 30 March.

We have set up Action 2000 to turn awareness in the private sector into action. Its Chairman, Don Cruickshank has launched the Millennium Bug Campaign to ensure that businesses and public sector organisations have access to best practice and to stimulate action by SMEs. We are spending more on this than the previous Government. Action 2000 currently has an annual budget of £1 million but this is under constant review and we are determined to ensure it has sufficient funds.

We will also continue to work with the European Commission to raise this as an important issue within the EU. During our Presidency, we are continuing to encourage our trading partners to take early action. I would like to see a national campaign in every Member State. And we will be pursuing wider international action through the Group of Eight.

A SINGLE GOVERNMENT COMMUNICATIONS DEPARTMENT?

I agree with my Honourable Friend the Member for Sittingbourne and Sheppey that we need Government-wide commitment to the uptake of ICTs.

Co-ordination and the sharing of best practice between Departments is important in achieving coherent, customer-focused services and high quality use.

But, the Information Age is bigger than any single Ministry. It is more important that Information Age issues have a prominent position in the policy considerations of all Departments. The Information Age is intrinsic to the policies of many Departments and cannot always be viewed separately from those policies. Just as business needs to get IT policy out of the IT room and into the board room, so Government too needs to integrate the use of ICTs into its everyday processes. Departments have built up a good collaborative relationship on these issues, supported by the co-ordinating role of the Central IT Unit, enabling Departmental co-operation without the increased bureaucracy of an additional Department. The success of the initiatives I have outlined today demonstrates this.

CLOSE

I hope I have illustrated to the House today the range of activities and initiatives we are carrying out right across Government. We have a clear and coherent strategy to promote the use of the Internet and other new technologies, encouraging individuals and businesses to make the most of the opportunities it represents; whilst ensuring that the on-line environment is as safe and secure as the more familiar off-line world. We have created the Competitiveness Working Parties and the Information Age Partnership to help us co-ordinate and steer this work, and our private sector partners are closely involved in the development of programmes such as IT for All and the ISI Programme for Business. Our strategy is in place and it is working well. We will continue to develop it as the Information Age progresses.

Other speeches by Rt. Hon. John Battle - Former Minister of Energy and Industry (May 1997 - Jul 1999)

(the following are available from the archive)
• The ACTIVE Conference (11/11/98)
• Closing Speech at the Council of Europe Parliamentary Conference on the Oceans (19/03/98)
• The Institute of Physics Annual Congress (17/03/98)
• The Parliamentary Group For Engineering Development (25/02/98)
• The Institution of Electrical Engineers (19/02/98)