OneWeb

Lord Bowness Excerpts

Wednesday 8th July 2020 Lords Chamber

Asked by

[Lord Bowness]

To ask Her Majesty’s Government, further to the announcement on 3 July that they will (1) invest $500 million, and (2) take an equity share, in OneWeb, what safeguards are in their agreement with OneWeb to ensure that other shareholders and investors in that company are not hostile to the interests of the United Kingdom.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the investment in OneWeb is still subject to US court approval and regulatory clearances. The Government undertook appropriate due diligence. We will continue to ensure that this ambitious acquisition safeguards the UK’s interests and maximises future opportunities for this innovative technology. The Government have a special share that provides them with the final say over any future sale of the company and over future access to OneWeb technology by other countries on national security grounds.

[Lord Bowness (Con) [V]]

I thank the Minister for his Answer. As I understand it, we are buying a share in a bankrupt British company whose manufacturing and assets base is in the United States under an agreement yet to be approved by a foreign court, i.e. one in New York state. Can the Minister specify the share that we are buying, tell us who the other parties are, and how the capabilities of the satellites which we propose to acquire compare with the US GPS and EU Galileo? Will there need to be much more expenditure to bring this acquisition and its assets up to that standard?

[Lord Callanan]

The Government will invest $500 million, on an equal basis with Bharti Global Ltd. As part of the agreement, a small equity stake will be held by existing OneWeb creditors. This is not specifically designed for global national positioning systems; these satellites operate in a lower orbit for a number of missions, but primarily for earth observations and tele-communications.