The £2 broadband tax echoes Canada's 30¢ tax to save music

"Boy, hurting that new industry to save this dying one; that definitely won't backfire!" - Nobody, ever.

Remember when Canada introduced a compulsory levy on blank CDs to save the recorded music market, and how that totally made everything OK? Oh, you don't? 

Canada is one of a few countries which enacted what's known as a "private copying levy". Any "blank audio recording media", such as cassettes, CD-Rs, or MiniDiscs, is subject to a tax – of $0.29 per unit for CD-Rs, and $0.24 per unit for cassettes.

In a way, it's very similar to David Leigh's proposal to save journalism. Charge a levy on the new technology which is eating the old, and save the "valuable" incumbent at the expense of the upstart new entrant. In fact, it's better than Leigh's proposal; most audio recording media does have music on it, whereas very little internet bandwidth is used for news (if we were being fair about where the money goes, most of that £2 would subsidise porn – which is also suffering under the yoke of the internet).

So how did the levy do? It saved the Canadian recording industry, right? Not so much:

Source

The money taken from downloads is actually on the up in Canada, as with everywhere else; and eventually, the industry will recalibrate around this new funding source. But to pretend that state funding – particularly state funding based on a tax of an unrelated resource – can save the industry is sadly wishful thinking.

Newspapers pile up on the street floor. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Getty Images.
Show Hide image

The problems with ending encryption to fight terrorism

Forcing tech firms to create a "backdoor" to access messages would be a gift to cyber-hackers.

The UK has endured its worst terrorist atrocity since 7 July 2005 and the threat level has been raised to "critical" for the first time in a decade. Though election campaigning has been suspended, the debate over potential new powers has already begun.

Today's Sun reports that the Conservatives will seek to force technology companies to hand over encrypted messages to the police and security services. The new Technical Capability Notices were proposed by Amber Rudd following the Westminster terrorist attack and a month-long consultation closed last week. A Tory minister told the Sun: "We will do this as soon as we can after the election, as long as we get back in. The level of threat clearly proves there is no more time to waste now. The social media companies have been laughing in our faces for too long."

Put that way, the plan sounds reasonable (orders would be approved by the home secretary and a senior judge). But there are irrefutable problems. Encryption means tech firms such as WhatsApp and Apple can't simply "hand over" suspect messages - they can't access them at all. The technology is designed precisely so that conversations are genuinely private (unless a suspect's device is obtained or hacked into). Were companies to create an encryption "backdoor", as the government proposes, they would also create new opportunities for criminals and cyberhackers (as in the case of the recent NHS attack).

Ian Levy, the technical director of the National Cyber Security, told the New Statesman's Will Dunn earlier this year: "Nobody in this organisation or our parent organisation will ever ask for a 'back door' in a large-scale encryption system, because it's dumb."

But there is a more profound problem: once created, a technology cannot be uninvented. Should large tech firms end encryption, terrorists will merely turn to other, lesser-known platforms. The only means of barring UK citizens from using the service would be a Chinese-style "great firewall", cutting Britain off from the rest of the internet. In 2015, before entering the cabinet, Brexit Secretary David Davis warned of ending encryption: "Such a move would have had devastating consequences for all financial transactions and online commerce, not to mention the security of all personal data. Its consequences for the City do not bear thinking about."

Labour's manifesto pledged to "provide our security agencies with the resources and the powers they need to protect our country and keep us all safe." But added: "We will also ensure that such powers do not weaken our individual rights or civil liberties". The Liberal Democrats have vowed to "oppose Conservative attempts to undermine encryption."

But with a large Conservative majority inevitable, according to polls, ministers will be confident of winning parliamentary support for the plan. Only a rebellion led by Davis-esque liberals is likely to stop them.

George Eaton is political editor of the New Statesman.

0800 7318496