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| BT chief executive takes aim at 'publicity seeking' tax committee | BT chief executive takes aim at 'publicity seeking' tax committee |
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| Ian Livingston, the BT chief executive and incoming trade and investment minister, has lashed out at the influential parliamentary committee chaired by Margaret Hodge, claiming its members are seeking publicity rather than the truth. | Ian Livingston, the BT chief executive and incoming trade and investment minister, has lashed out at the influential parliamentary committee chaired by Margaret Hodge, claiming its members are seeking publicity rather than the truth. |
| Hodge's public accounts committee has put the issue of tax avoidance by multinationals including Amazon and Starbucks at the centre of national debate, and last week took on BT, lambasting the former national telecoms company for "blackmailing the public" by demanding subsidies to build broadband in rural areas. | Hodge's public accounts committee has put the issue of tax avoidance by multinationals including Amazon and Starbucks at the centre of national debate, and last week took on BT, lambasting the former national telecoms company for "blackmailing the public" by demanding subsidies to build broadband in rural areas. |
| Presenting his final set of company results before leaving BT in September to join the government at David Cameron's request, Livingston hit back after his company's dressing down by the committee's members. | Presenting his final set of company results before leaving BT in September to join the government at David Cameron's request, Livingston hit back after his company's dressing down by the committee's members. |
| "If you watch the public accounts committee meetings, they are clearly designed to attract publicity rather than get to the underlying truth," Livingston countered on Thursday. | "If you watch the public accounts committee meetings, they are clearly designed to attract publicity rather than get to the underlying truth," Livingston countered on Thursday. |
| BT is investing £2.5bn in rolling out fibre-optic cables to two thirds of homes in the UK, and has won contracts for £1.2bn in public subsidies to further extend its network to rural locations. But the government-run Broadband Development UK programme, for which BT has won every contract so far, is running nearly two years late. | BT is investing £2.5bn in rolling out fibre-optic cables to two thirds of homes in the UK, and has won contracts for £1.2bn in public subsidies to further extend its network to rural locations. But the government-run Broadband Development UK programme, for which BT has won every contract so far, is running nearly two years late. |
| The National Audit Office has criticised civil servants and BT for delays, lack of transparency, and making it difficult for other companies to invest in the most isolated locations, where BT has no plans to build. | The National Audit Office has criticised civil servants and BT for delays, lack of transparency, and making it difficult for other companies to invest in the most isolated locations, where BT has no plans to build. |
| "It is just a shame that a number of people in the UK don't want to talk up the UK," said Livingston. "What BT will do is continue to talk up the UK and point out we have some of the cheapest available fibre in the western world … it is going to many, many rural areas and it is a big success story. Most government officials recognise it has been a great success." | "It is just a shame that a number of people in the UK don't want to talk up the UK," said Livingston. "What BT will do is continue to talk up the UK and point out we have some of the cheapest available fibre in the western world … it is going to many, many rural areas and it is a big success story. Most government officials recognise it has been a great success." |
| The government has conceded that the BDUK rural broadband rollout will be completed at least 22 months behind schedule. It will also not reach the final 5% of most isolated homes. Investment in these areas by alternative network providers has been held back because so far BT and local councils have resisted publishing lists of areas where they definitely will not build. | The government has conceded that the BDUK rural broadband rollout will be completed at least 22 months behind schedule. It will also not reach the final 5% of most isolated homes. Investment in these areas by alternative network providers has been held back because so far BT and local councils have resisted publishing lists of areas where they definitely will not build. |
| The BT head of strategy, Sean Williams, was summoned before the PAC last week and came under repeated attack during a bad-tempered meeting. Hodge described the delays as a "ridiculous state of affairs". She also questioned why BT had said it would require government subsidies to connect fibre to a new housing development in the London suburb of Barking. | The BT head of strategy, Sean Williams, was summoned before the PAC last week and came under repeated attack during a bad-tempered meeting. Hodge described the delays as a "ridiculous state of affairs". She also questioned why BT had said it would require government subsidies to connect fibre to a new housing development in the London suburb of Barking. |
| She said: "I could understand if it was in Cumbria, but this is in outer London. You're blackmailing the public by saying: 'We'll only do it with a subsidy.'" | She said: "I could understand if it was in Cumbria, but this is in outer London. You're blackmailing the public by saying: 'We'll only do it with a subsidy.'" |
| BT was also accused of behaving like a "vampire death squid" in the rural broadband market by Malcolm Corbett, chief executive of the Independent Networks Co-operative Association, who gave evidence at the PAC meeting. | BT was also accused of behaving like a "vampire death squid" in the rural broadband market by Malcolm Corbett, chief executive of the Independent Networks Co-operative Association, who gave evidence at the PAC meeting. |
| Speaking to analysts after BT's first quarter results, Livingston insisted his ministerial role would give him no say over telecoms matters. "In government my remit does not cover anything to do with BT other than BT being one of the country's most significant investors and exporters." | Speaking to analysts after BT's first quarter results, Livingston insisted his ministerial role would give him no say over telecoms matters. "In government my remit does not cover anything to do with BT other than BT being one of the country's most significant investors and exporters." |
| Livingston is one of the largest private holders of BT shares and will own a stake worth up to £20m once he leaves the company. The Labour MP Jon Trickett has written to David Cameron, who recruited Livingston to government, to ask whether the shareholding is in breach of the ministerial code. Government officials say he will have to place his shares in a blind trust. | |
| Livingston succeeds the former HSBC boss Lord Green, and will work across the Department for Business, Innovation and Skills and the Foreign and Commonwealth Office. Like Green, he will become a peer, sitting on the Conservative benches of the House of Lords. | Livingston succeeds the former HSBC boss Lord Green, and will work across the Department for Business, Innovation and Skills and the Foreign and Commonwealth Office. Like Green, he will become a peer, sitting on the Conservative benches of the House of Lords. |