Space Industry Bill [ Lords ] (First sitting)

Debate between Lord Johnson of Marylebone and Philippa Whitford

Committee Debate: 1st sitting: House of Commons
Tuesday 23rd January 2018 Public Bill Committees

[The Minister of State, Department for Transport (Joseph Johnson)]

It is a pleasure to serve under your chairmanship on this important Bill, Mr Bone. I echo the hon. Gentleman’s thanks to Members in the other place for the collegiate and helpful way in which they developed the Bill into its current state.

I recognise the hon. Gentleman’s concerns about environmental protection and the impact on local communities of spaceflight activities and the operation of spaceports under the Bill. As he said, similar issues were raised in the other place. Following constructive debates in the other place on environmental issues, the Government reviewed the compatibility of the existing planning and environmental framework with spaceflight activities. During that review, certain situations were identified where the existing framework may not provide the environmental protection that we all wish to be required of spaceflight activities. Discussions have since taken place across Government to address that potential gap, resulting in the tabling of Government new clause 1.

New clause 1 will place a mandatory requirement on an applicant for either a launch or a spaceport licence to submit an assessment of the environmental effects of their proposed activity as a precondition of receiving a licence. That duty will ensure that appropriate assessments of environmental effects are conducted by the operator or spaceport licensee and considered by the regulator prior to the determination of an application for a licence.

As hon. Members are aware, there is already a comprehensive body of environmental and planning legislation with which spaceports and spaceflight operators will need to comply, independently of the requirements in the Bill. As such, the new clause seeks to ensure that appropriate assessments are undertaken without placing a disproportionate burden on applicants. To achieve that, it allows for existing equivalent environmental assessments to be considered where appropriate. That will be the case only where the regulator is satisfied that there has been no material change of circumstance since the previous assessment was prepared.

I hope I have reassured hon. Members of the Government’s intention to ensure that spaceport and operator licences are granted only following a robust assessment of the environmental effects of the activities those licences permit. New clause 1 goes even further than the hon. Gentleman’s amendment 13. It adds to the duty on the regulator in clause 2(2)(e) to take into account any environmental objectives set by the Secretary of State, including those set by the Environment Agency.

We also amended schedule 1 in the other place to include an indicative licence condition that, if included in a licence, would require assessments of the impact of noise and emissions from spaceflight activities. I hope in the light of the Government new clause that the Committee will agree that the Bill contains robust environmental protections, and I ask the hon. Gentleman to withdraw his amendment.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

I, too, welcome the amendment and the Government’s new clause to strengthen the environmental protections. Those hoping to establish spaceports are still concerned about exactly what is expected of them. It is about trying to get the right balance between protecting the community and allowing spaceports to develop. The sooner the regulations and expectations are clear, the more likely it is that spaceports will go ahead. At the moment, it is hard to expect them to invest if there is still the risk that, at some point, they simply will be ruled out by one of the environmental regulations.

[Dr Whitford]

Again, I welcome any clarification, sooner rather than later, about who is envisaged as providing the range control services. It is clearly stated and welcome that the provider should be independent from those operating the spaceport or the flight. Would it be air traffic control? Who exactly is identified? The problem with the Bill is still that there is a lot of vague gaps that have not been filled in, which is causing anxiety.

[Joseph Johnson]

I thank the hon. Lady for her question on range controls. Clause 7 requires that range control services must be provided either by the Government or by licensed providers. At present, only one part of the Government—the Ministry of Defence—is able to provide range control services. Range safety for existing military ranges is regulated by the Defence Safety Authority, but our intention is that, for spaceflight, those services will be provided on a commercial basis. Indeed, a driving purpose of the Bill is to enable commercial and not state-sponsored or institutional spaceflight. Since range control services are one of the key mechanisms through which we will protect the public during spaceflight activities, any provider must hold a licence. That will help to ensure the regulator that only fit-and-proper persons can act as a range control service provider. I hope that clarifies the situation.

[Dr Whitford]

Is the Government’s expectation clear to the companies that are already developing? Are they able to have the security to set up what is, in essence, yet another completely new industry to service the space launch industry?

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[Dr Whitford]

This is one of the key areas in the Bill where spaceport and launch operators do not know what is expected of them. I understand that the Government wish to consult, but the sooner that it is clarified the better. Regulations coming forward two years after Royal Assent—that comes from a comment in the Lords, and would mean the summer of 2020, when the Government had hoped to launch—would throw complete planning blight over the industry. It is not possible to borrow money to develop launch vehicles or a spaceport without any idea what standard has to be reached.

On clause 9(9) and thinking about passengers, one of the industries that will develop is space tourism. Clearly, the public must be protected as far as possible. In the past, those involved in launch or space abilities have been incredibly fit and trained people. For those going as tourists, that will not be the case. It will be important that we carefully lay down what level of health expectation or physical training is required, because we do not want the early years of the industry to be marred by deaths in space.

[Joseph Johnson]

I will respond to two of the points made by hon. Members. On early visibility of licence requirements, to get the industry feeling confident that it has a clear set of rules to work with, we will continue to engage with it as we develop the detailed regulations to ensure that the legislation facilitates and supports development in the sector and provides operators with the confidence to move forward with their plans. In addition, as has been said, regulators will be holding extensive pre-licensing discussions with potential operators in order for them to provide more detailed guidance.

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[Dr Whitford]

My amendment is completely the opposite of the Labour amendment. As things stand, the Government basically take liability for injury and accident and the operator has to indemnify the Government to cover that risk. What we are looking for is a change in subsection (2) from “may” to “must”. The Outer Space Act 1986 makes that clear. At the moment, the liability limit is €60 million, not £20 million. Without some form of cap on the operator’s liability, it is impossible for operators to get insurance. Therefore, they will simply continue to operate outside the UK under the Outer Space Act, somewhere with a limit of €60 million, rather than in the UK with unlimited liability, for which they simply cannot get insurance.

Amendment 6 deals with the level of cap for the kind of launches that are likely to occur from the UK. Further on in the Bill, we would want to have perhaps a per launch cap rather than per satellite, as it is now. With CubeSats and nanosatellites launched in clusters, the liability cap would be absolutely untenable. Consultation is needed. There may be a later reference to launches that could be defined as green or amber, and it may be that different caps are set for that kind of launch as an overall approach. However, there has to be an ultimate limit and that should not be higher than the current €60 million.

The clause mentions the different aspects of launch, and those are the spaceport, the range control and the launch operator, and later there will be the satellite operator. I have tabled an amendment to a later clause to define the liabilities of those groups, with very clear margins, so that there are no gaps that a victim of an accident could fall between.

[Joseph Johnson]

Clause 11(2) provides a power for a licensee’s liability to indemnify the Government under clause 35 to be capped in an operator licence. Amendment 16 would remove that vital power. Under both this Bill and the Outer Space Act 1986, operators have a liability to indemnify the Government against claims for damage or loss from foreign states and their nationals. That is to ensure that we meet our obligations under the UN space treaties.

However, satellite operators have previously raised concerns that such a liability is a barrier to operating in the space industry. Operators found that the unlimited liability made it difficult to raise finance or to insure against. The Government have therefore responded to those concerns.

The unlimited liability provisions under the Outer Space Act were amended by the Deregulation Act 2012 and since then licences issued under that Act for the procurement of an overseas launch and the in-orbit operation of a satellite benefit from a cap, which is set out in licence conditions.

The UK Space Agency publishes the usual level of cap in its guidance, which currently sets the cap at €60 million for standard missions. Crucially, however, the level is not set by statute, so the cap can be varied depending on the risk of the activity in question. Some activities currently regulated under the Outer Space Act, notably procuring the launch of a space object and the operation of a satellite in orbit taking place from the UK, will be regulated under this Bill in future, and it is the intention to continue to exercise the discretion to cap the liability to indemnify Government in these licences.

Therefore, following Royal Assent of this Bill, amendment 16 would reverse current Government policy and disadvantage satellite operators in the UK. Conversely, amendment 5 seeks to ensure that all operator licences must cap the liability to indemnify the Government under clause 35. Amendment 6 would then go on to ensure that the level of this cap would be set out in a report to Parliament.

I understand clearly that the intent of these amendments is to support operators in the UK and the Government welcome support for that principle, which is why we have included this power in the Bill. However, these amendments are premature. The cap on the indemnity to the Government under the Outer Space Act was based on many years of licensing the procuring of the launch of space objects and of the operation of satellites in orbit. Indeed, it was not put in place until more than 25 years after that Act gained Royal Assent. The costs and benefits of capping liability for those activities were fully considered and were subject to a full consultation with industry. We intend to take a similar approach to considering capping a launch operator’s liability to Government under this Bill, as launch is a new activity in the UK and poses more risks for the UK as a launching state.

As I said on Second Reading, we intend to announce a call for evidence on all issues relating to insurance and liabilities early this year, following Royal Assent. That will allow us to start to assess the appropriateness of a cap for this new and potentially riskier activity, balancing the economic benefits of such activity with the need to protect the taxpayer.

On that basis, I hope that the hon. Member for Kingston upon Hull East will withdraw the amendment.

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[Dr Whitford]

I wish to press amendment 5, which would change the wording from “may” to “must”. There is still room to consult on the level of the cap, but the industry requires a Government commitment that there will be a liability cap.

[Joseph Johnson]

We intend to explore that carefully in the consultation, taking into account the fact that launching in the UK is a riskier activity than procuring the launch overseas. It poses a higher level of risk to the UK taxpayer, and we need to consider it very carefully.

[Dr Whitford]

I assume the Government recognise that other launching states, such as Australia, France and the US, all have liability caps. If there is no cap, that will simply kill the launch industry dead in this country. I will not push to a vote amendment 6, which would set the cap at a particular level, but the Government should accept the principle that there will be a cap. I would be happy if the Government plan to bring forward such a measure before the third day, but simply to leave the wording as “may” leaves too much doubt.

Amendment proposed: 5, in clause 11, page 8, line 37, leave out “may” and insert “must”.—(Dr Whitford.)

This amendment places a definite cap on the amount of a licensee’s liability.

Question put, That the amendment be made.

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[Dr Whitford]

I welcome the amendment. My hon. Friend the Member for Glasgow North West and I certainly support it, because three of the potential sites are in Scotland, and one is in Wales. However, as we have discussed, the industry could grow and while there is not currently a site in Northern Ireland, there could be in future. It is important that the devolved Governments should be respected and consulted.

The Government introduced new clause 1 on environmental impact right at the start, when we considered clause 2, and it is crucial that they should respect the devolved Governments’ environmental agencies and local planning considerations.

[Joseph Johnson]

I thank hon. Members for raising important issues on consultation with relevant environmental and planning bodies. The regulator will identify what assessments of environmental effects are appropriate, during the pre-application process. In reviewing those assessments and deciding whether conditions should be attached to a licence, the regulator may wish to have an input from various environmental bodies. However, requiring consultation with the relevant environment agency and local planning authority before deciding what conditions to attach to a licence is not necessary, and may end up being disproportionate.

For example, once the industry has developed, multiple launches may occur under a separate but almost identical licence. In such a case it would be disproportionate for the regulator to have to consult the environment agency and local planning authority for each new licence. It is also worth noting that clause 2 requires the regulator to take into account any environmental objectives set by the Government, which would include any issued by the environment agency.

The existing planning, regulatory and environmental framework will continue to apply, and environmental bodies will have a say, in accordance with their statutory remit, at the relevant stages, such as when planning permission is applied for. I hope that in the light of the Government amendment and the provisions already in the Bill, Members will agree that robust assessments of environmental effects will be conducted and considered prior both to the granting of a licence and to the imposition of conditions under the Bill. I would therefore ask the hon. Member for Kingston upon Hull East to withdraw amendment 17.

[Dr Whitford]

I wonder whether the Government would consider including consultation with these agencies within the environmental impact assessment in clause 2, as amended by new clause 1. The Minister talks about consulting with the Environment Agency but, obviously, in the devolved administrations there are three other environment agencies and they should have their place.

[Joseph Johnson]

I would not want the Committee to think that we have not been engaging closely with the devolved Administrations in the development of the Bill, because we have, and over a considerable period. We have worked with Scotland, Wales and Northern Ireland at official level to ensure that all the devolved Administrations are content with provisions in the Bill. I have been out in Northern Ireland myself to discuss the opportunities this Bill presents to businesses there.

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[Dr Whitford]

On the matter of informed consent, I highlight the written evidence submitted to us around what will be defined as informed consent and the possible need to explain complex issues and whether there would be potential for exposing technical information, which, under the US’s ITAR—International Traffic in Arms Regulations—agreement, would be a problem. That is not particularly something I want to bring forward, but we have received a written submission on informed consent.

[Joseph Johnson]

Informed consent is an important part of the Bill. We will be developing detailed regulations on informed consent, including the information that operators must provide to individuals before they sign consent forms.

Question put and agreed to.

Clause 17 accordingly ordered to stand part of the Bill.

Schedule 2 agreed to.

Clause 18 ordered to stand part of the Bill.

Schedule 3 agreed to.

Clauses 19 to 21 ordered to stand part of the Bill.

Schedule 4 agreed to.

Clause 22

Security regulations

Question proposed, That the clause stand part of the Bill.

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[Karl Turner]

I beg to move amendment 19, in clause 32, page 23, line 31, at end insert—

‘(4A) An enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours, following the 48 hour period under subsection (7) in which the enforcement authorisation remains in force.”

This amendment provides that an urgent enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours, following the 48-hour period under Clause 32(7) of the Bill, during which the enforcement authorisation remains in force.

The amendment provides that an urgent enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours following the 48-hour period under subsection (7), during which the enforcement authorisation remains in force. The amendment aims to clear up any ambiguity surrounding clauses 31 and 32, which grant warrants authorising entry or direct action and powers to authorise entry in emergencies.

Clause 32(2) permits a named person to do anything necessary for protecting national security, securing compliance with international obligations or protecting health and safety. My colleagues in the other place raised concerns about emergency warrants and such vague wording. The power conferred by clause 32 is very extensive and broad. It contains no thorough judicial oversight. The Minister is well aware that the House of Commons Science and Technology Committee also expressed concerns about this aspect of the Bill, which was obviously mentioned in detail in the other place.

We welcome the fact that the Government reduced the authorisation period from one month to 48 hours, which limits the Secretary of State’s power to a degree. However, we still have concerns that such significant and wide-ranging powers will be exercisable without anticipatory or rapid post hoc judicial involvement.

Currently, there is not enough in the Bill to check whether the powers granted under clause 32 will be appropriately or proportionately used by the authorised person. The Minister in the other place stated that the amendment would “impose unhelpful bureaucracy”. We believe that judicial oversight of emergency warrants is crucial to ensure that such excessive powers are not abused, and we do not believe that we are asking for anything unreasonable. Having checks in place to ensure that this extensive power is not misused will improve the Bill. It is not, as stated by the Minister in the other place, “unhelpful bureaucracy”. I hope the Minister can give assurances that the Government are listening to those concerns and will take them on board.

[Dr Whitford]

I rise to support the amendment. Clause 31 refers to the seeking of warrants from justices of the peace, where there is time to do so. Clearly, there will be situations where that is not reasonable and therefore we accept that there is a need to allow emergency entry— 48 hours should be sufficient to allow that warrant to be reviewed by a justice of the peace. We welcome that the Government reduced emergency entry from a month to 48 hours, but it is perfectly reasonable that it should be looked at by a justice of the peace within two days.

[Joseph Johnson]

I thank the hon. Member for Kingston upon Hull East and for Central Ayrshire for raising the issue of emergency powers. The clause confers on the Secretary of State the power to grant an enforcement authorisation to carry out any specified action in the most urgent cases, such as a serious risk to national security, compliance with our international obligations or people’s health and safety. The amendment tabled by the hon. Gentleman would seek to require that such an enforcement authorisation be evaluated by a justice of the peace within 48 hours of the 48 hours that the authorisation has been in force.

The Government have listened carefully at all stages of the discussion of the provision and addressed concerns before the Bill was brought to the House. Before the Bill’s introduction, the Science and Technology Committee raised concerns about the length of time for which an enforcement authorisation would remain in place. In response to that helpful intervention, we reduced the time for which an enforcement authorisation can remain in place from one month to 48 hours.

The Opposition in the other place attempted to introduce amendments similar to that tabled by the hon. Gentleman. The amendments are not clear on the purpose that a post hoc evaluation by a justice of the peace would serve—the order would have already been spent and the specified action taken. It is also not clear what is expected to follow from any such evaluation. However, the Government have reflected further on the amendments and the intentions underpinning them. Officials have carried out extensive discussions with colleagues across Whitehall, including in the Ministry of Justice, the chief magistrate’s office and the Home Office, which is responsible for the powers of entry gateway process. None of the discussions resulted in the suggestion that the power should be amended as the amendment proposes. An important reason for that is that there is no known precedent of a justice of the peace conducting an evaluation of an emergency power once it has been exercised.

Let me reassure hon. Members that there are adequate safeguards in the Bill with respect to the exercise of this significant power. Such an authorisation can be granted only to a named person who the Secretary of State is satisfied is suitably qualified to carry out the necessary action. Each time the power is used, the authorisation must be in writing, must specify the action required and will remain in force for only 48 hours from the time it is granted.

In response to concerns previously raised about the exercise of this power without sanction by an independent judicial authority, it is important to note that the decision of the Secretary of State to issue an enforcement authorisation could be challenged by judicial review. I would also point out that this power is more conservative and requires more stringent authorisation than other comparable powers of entry, such as those of nuclear inspectors or health and safety inspectors who are provided with a standing authorisation and may act at their discretion. The power would be used only in the most serious and urgent cases, but it is necessary to ensure that those involved in spaceflight activities and third parties are adequately protected should such situations arise.

Space Industry Bill [ Lords ] (Second sitting)

Debate between Lord Johnson of Marylebone and Philippa Whitford

Committee Debate: 2nd sitting: House of Commons
Tuesday 23rd January 2018 Public Bill Committees

[Joseph Johnson]

Let me turn to some of the hon. Lady’s specific points before she intervenes—I may anticipate what she is about to ask.

A mandatory cap on liability and mandatory Government compensation embedded in primary legislation could potentially breach state aid rules. That could also cause difficulties in respect of future trading rules applying to the UK, although those are of course as yet unknown. For that reason, it is important to retain the flexibility to deal with the issue by way of secondary legislation. In that way, this and future Governments will have a power to introduce and vary a cap to ensure that it is in line with our legal obligations. It can also be varied in the light of changes in the market or in our trading commitments.

The amendment to clause 33(4)(a) means that the Government—the hon. Member for Central Ayrshire commented on this—must compensate a claimant only in the event of a cap. That amendment does not mean that there is a cap on the face of the Bill.

[Dr Whitford]

As I said in my remarks, it is the principle a cap as opposed to the amount. I totally understand the need for consultation, because the type of space industry being discussed is different from space industries elsewhere, where vertical rockets are launched. I am still not clear why the Government are unwilling to commit to a cap in principle when that is what the industry is crying out for.

[Joseph Johnson]

I will repeat what I said before. As soon as the Bill receives Royal Assent we will start the process of a call for evidence to determine whether there is a need for a cap and the level at which any such cap might be set.

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[Dr Whitford]

I beg to move amendment 11, in clause 33, page 24, line 39, at end insert—

“(7) Within 6 months of this Act coming into force the Secretary of State must lay a report before Parliament setting out divisions of responsibility and the level of liability for parties’ spaceflight activities, including—

(a) the Spaceport;

(b) the launch operator; and

(c) the satellite operator.”

This amendment places a requirement on the Secretary of State to publish clear guidelines with regards to responsibility and liability for parties involved in spaceflight activities.

This is a probing amendment to highlight the fact that in the past the space industry was very much state-driven, state-paid-for and state-covered, and now we are moving to a commercial situation where a spaceport, a launch company and a satellite company will be totally different entities. Therefore, I seek clarification in the consultation of exactly where the handover of liability is from one to the other and what responsibilities they have. We would not want to see people arguing at the edges and bystanders, other companies or satellite companies ending up not being compensated for a mission that failed.

[Joseph Johnson]

I thank the hon. Lady for raising the important matter of the respective responsibilities and liabilities that spaceports, launch operators and operators of satellites will have. The full scope of a licensee’s responsibilities will be set out in the Bill, in regulations made under the Bill and in the terms of specific licences granted by the regulator. In broad terms, it is envisaged that the Bill will enable the regulator to license four types of activity initially: operation of a spaceport, spaceflight activities involving launch of a spacecraft, operation of a satellite and provision of range control services.

The Bill sets out certain high-level responsibilities and obligations on licensees. Most obligations are on persons carrying out spaceflight activities. I shall refer to them as spaceflight operators for convenience, although that term is not used in the Bill. Those include persons carrying out launch and operating a satellite. It is considered that activities of the spaceflight operator are the most likely to cause injury or damage to third parties.

In the case of spaceflight operators, clause 9 imposes obligations to assess the risk to health and safety posed by the spaceflight activity, to comply with the risk assessment requirements and to take all reasonable steps to reduce risks to the general public so that they are as low as reasonably practicable.

Under clause 16, the spaceflight operator must not allow individuals to take part in a spaceflight activity unless they meet criteria prescribed in regulations and have signed a consent form signifying that they understand and accept the risks of taking part in the spaceflight activity. Under clause 17, the spaceflight operator must not allow unqualified individuals to take part in or otherwise be engaged with the spaceflight activity.

Clause 33 places a strict liability on a spaceflight operator to provide the uninvolved general public with a straightforward remedy for compensation for injury or damage caused by their spaceflight activities. This strict liability would apply to any injury or damage caused in the UK or its territorial waters, and to an aircraft in flight or persons and property on board such aircraft. It applies to damage that is caused by a craft or space object being used for spaceflight activities.

Spaceflight operators also have an obligation under clause 35 to indemnify the Government for any claims brought against the Government for loss or damage caused by their spaceflight activities. Other bodies that may be carrying out functions on behalf of the Government also benefit from the indemnity.

On the responsibilities and liabilities of spaceport operators, clause 10 requires that applicants for a spaceport licence must take all reasonable steps to ensure that risks to public safety of operating the spaceport are as low as reasonably practicable. In addition, the applicant will need to fulfil any criteria and requirements set out in regulations. In the case of providers of range control services, they will be governed by the provisions of clauses 5, 6 and 7 and regulations made under those clauses.

In addition to the Bill, further detailed obligations and responsibilities for all types of licence holders will be prescribed in regulations: for example, safety requirements under clause 18 and security requirements under clause 21. Those regulations will be supplemented by detailed guidance.

The regulations will set out licensing and ongoing requirements and any oversight of operations to ensure that spaceflight activities and spaceports are operated safety. In addition to general responsibilities and liabilities imposed by the Bill, and regulations made under it, the terms of individual licences will specify the particular activities authorised under that licence and the responsibilities that go with them. Individual licences will also be subject to licence conditions tailored to their application, examples of which are set out in schedule 1.

I hope I have reassured the hon. Lady that the Bill, combined with the regulations to be made under it and the terms of individual licences, will provide the necessary clarity on the responsibilities and liabilities that come with being a licence holder under the Bill. The Government intend to consult publicly an all initial draft statutory instruments and statutory guidance. All draft regulations will be accompanied by a full explanation of their intent. Furthermore, reflecting the importance that the Government place on consultation, we have amended the Bill to impose a statutory duty to carry out public consultation before making any regulations under the affirmative resolution procedure. I therefore ask her to withdraw her amendment.

[Joseph Johnson]

I am happy to repeat the assurance I gave a second ago. We will consult publicly on all the initial draft statutory instruments and the statutory guidance that will give effect to the provisions. I hope that that process will address any remaining areas of uncertainty about terminology, to which the hon. Gentleman refers.

[Dr Whitford]

I look forward to seeing the regulations. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 33 ordered to stand part of the Bill.

Clause 34

Power of Secretary of State to indemnify

[Joseph Johnson]

I beg to move amendment 1, in clause 34, page 25, line 15, leave out “may” and insert “must”.

This amendment concerns the case where a person is caused injury or damage by spaceflight activities carried out by a licensee whose liability to that person is capped by regulations under clause 33(5). It converts the Secretary of State’s power to indemnify that person in respect of any shortfall into a duty to do so.

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[Joseph Johnson]

I can set out some context for the hon. Lady that might clarify the issue. Some concern was expressed in the other place about the provisions, but I assure the Committee that the Government are taking a responsible and balanced approach. We have sought to address those concerns by amending the Bill.

In clause 38 in particular, we made it clear on the face of the Bill that an order will be made only when the Secretary of State considers it appropriate, rather than when it is expedient, as the Bill said originally. Powers are restricted to what is required and proportionate for securing safe space flight operations. There are no powers in the Bill for a spaceport licence holder, launch operator or range control service provider to purchase land compulsorily.

The clause allows for the creation of orders granting rights over land. Such orders may be necessary to ensure that utilities and other supporting infrastructure can be installed and maintained—for radar or surveillance, for example. Space flight from the UK will be conducted on a commercial basis, so we expect operators to negotiate access in the vast majority of cases. Such an order, therefore, would be created only as a last resort, where a negotiation with the landowner had failed to produce a mutually agreeable outcome. Schedule 6 sets out further provision for such circumstances, including how notice for such orders should be given and how proposed orders can be objected to.

Question put and agreed to.

Clause 38 accordingly ordered to stand part of the Bill.

Clauses 39 and 40 ordered to stand part of the Bill.

Schedule 6 agreed to.

Clause 41 ordered to stand part of the Bill.

Clause 42

Challenges to and commencement of orders

[Dr Whitford]

I beg to move amendment 12, in clause 42, page 31, line 12, at end insert—

‘(4) An order under section 38 or 40 cannot be made in relation to a spaceport or prospective spaceport without the consent of—

(a) the Scottish Ministers, in relation to the use of land in Scotland;

(b) the Welsh Ministers, in relation to the use of land in Wales;

(c) the Northern Ireland devolved authority, in relation to the use of land in Northern Ireland.

(5) In this section, a “Northern Ireland devolved authority” means the First Minister and deputy First Minister acting jointly, a Northern Ireland Minister or a Northern Ireland department.”

This amendment would ensure that consent of devolved administrations is sought prior to the Secretary of State exercising their powers under Clauses 38 and 40.

This is the formal amendment on the point that I made in relation to clause 38 about a requirement to consult on land enforcement orders with the devolved powers in Northern Ireland, Wales and Scotland.

[Joseph Johnson]

I thank the hon. Lady for tabling this amendment, allowing me again to address the subject of land powers, in the specific context of the devolved Administrations. I reassure her and other Committee members that there has been considerable engagement with the devolved Administrations as the provisions have been developed.

Officials have been engaging with the devolved Administrations since early 2014, when they met the Welsh and Scottish Governments to discuss ambitions to create a UK spaceport. Representatives from the devolved Administrations have since been invited to launch UK events across the country, bringing together many of those interested in becoming involved in the operations or supply chains of spaceports or space flight activities.

Alongside this general engagement, we have worked with Scotland, Wales and Northern Ireland at official level to ensure that the devolved Administrations are content with all provisions in the Bill. Specifically, on land powers, we have agreed an approach that the devolved Administrations have confirmed they are content with.

Before the introduction of the Bill, we discussed the land provisions with the Scottish Government, the Lands Tribunals for Scotland and Northern Ireland, and Registers of Scotland. We have since consulted the Scottish Civil Justice Council on the practical implications of orders under clauses 38 and 40. These organisations have confirmed that they are content with the implications for their processes and have not requested amendment to the current drafting of the clauses. Orders made on Welsh land would be subject to the same registration process as those in England, and any tribunals that were to be involved would be the same ones as for England.

The previous Minister of State for Transport spoke with the Scottish Government Minister for Transport to update him on the progress of the Bill and the proposed amendments ahead of Report in the other place. In addition, my officials continue to engage with the devolved Administrations of Wales, Scotland and Northern Ireland as the Bill makes its progress through the parliamentary process.

Going back to the clauses to which the hon. Lady’s amendment refers, I should say that an opportunity for those in the devolved Administrations to raise any concerns about a specific order is provided in schedule 6. The schedule requires that notice of a proposal to make an order under clause 38 or a land order under clause 40 must be published in local newspapers and served on the local authority. However, we expect that spaceport or launch operators, or range control service providers, will work closely with local landowners and local authorities as they develop their plans for sites and launches.

We also expect that, rather than orders under clauses 38 and 40 being necessary, operators will negotiate with landowners for access to land or for restrictions on the use of land or water near a spaceport site. Representatives of the companies hoping to develop the first spaceports have confirmed that they have indeed been working closely with local landowners and local authorities as they progress their plans.

I should also emphasise that orders that may be made under clauses 38 and 40 are compatible with the existing body of planning legislation and will not restrict the ability of local planning authorities to take planning decisions. Should Ministers in the devolved Administrations wish to call in any planning decision relating to the development of a spaceport site, their right to do so will not be affected by any provision in this Bill.

I hope that the hon. Lady is reassured that the powers in clauses 38 and 40 will not impact on the ability of local planning authorities or Ministers in Scotland, Wales or Northern Ireland to take planning decisions as they would usually. I hope she is reassured that the devolved Administrations, as well as any persons served with a notice, will be able to object to the making of orders through the process set out in schedule 6. I therefore ask the hon. Lady to consider withdrawing amendment 12.

[Dr Whitford]

I thank the Minister for that detailed explanation. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 42 ordered to stand part of the Bill.

Schedule 7 agreed to.

Clause 43 ordered to stand part of the Bill.

Schedule 8 agreed to.

Clauses 44 and 45 ordered to stand part of the Bill.

Schedule 9 agreed to.

Clauses 46 to 59 ordered to stand part of the Bill.

Schedule 10 agreed to.

Clauses 60 and 61 ordered to stand part of the Bill.

Schedule 11 agreed to.

Clauses 62 to 66 ordered to stand part of the Bill.

Schedule 12 agreed to.

Clause 67

Regulations: general

[Dr Whitford]

The amendment is, as the hon. Gentleman referred to, about the potential delay for the industry from considering regulations. I seek assurances from the Minister that the timescale of two years that seems to be being discussed is erroneous, because otherwise we will not be launching anything in 2020. That timescale seemed to be referred to in the House of Lords—the hon. Gentleman also referred to it—but it would kick the industry into the long grass again. This process started in 2014 and we are in 2018. There had been an aspiration to be ready to launch from the UK in 2020, if the vehicles are ready. There is an urgency and I seek reassurance that we are getting on with it.

[Joseph Johnson]

Hon. Members may be aware—my noble Friend mentioned this—that a similar amendment was tabled in the other place. The Government reflected on the concerns of noble Lords and amended the Bill to impose a statutory duty to carry out a public consultation before making any regulations under the affirmative resolution procedure. The Bill now includes a requirement for a report by the Secretary of State on the consultation to be laid before Parliament. As my noble Friend the Minister made clear in the other place, a public consultation would invite a response from all interested parties. Subsequent regulations that materially change the substance of the original regulations would also be subject to public consultation.

The amendment tabled by the hon. Member for Kingston upon Hull East goes much further than that by imposing the super-affirmative procedure on affirmative regulations. As I have said, the Government have listened and taken on board the concerns raised in the other place, and the Bill now ensures that there is the enhanced scrutiny of affirmative regulations. The amendment would lead to a duplication of effort.

I assure hon. Members that it is the Government’s intention to continue to build on the open collaboration that has taken place throughout the development of this legislation—from publishing the Bill in draft, to the publication of policy scoping notes, to committing to formally consult on the draft regulations prior to laying them. As the hon. Member for Middlesbrough (Andy McDonald) noted on Second Reading, the Government have taken a very open attitude in developing this legislation and in engaging with hon. Members and noble Lords in the other place to ensure we have a successful Bill. We want that to continue as we go on to the next stages of secondary legislation, consultation on guidance and so forth.

The question from the hon. Member for Central Ayrshire on the timing of the laying of statutory instruments is a novel and complex challenge. I know she appreciates that that requires detailed policy development, building in parallel internal expertise to enable us to deliver an effective regulatory regime. There is a wealth of best practice in the industry and we need to work with stakeholders to identify how we can best design the regulatory framework and the subsequent legislation on the basis of being informed adequately by those discussions. I can confirm that it is the Government’s intention to formally consult as soon as the draft statutory instruments are available.

I hope that that has assured hon. Members that the approach will continue as we develop secondary legislation, and that the hon. Gentleman will withdraw the amendment.

[Karl Turner]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 67 ordered to stand part of the Bill.

Clauses 68 to 71 ordered to stand part of the Bill.

New Clause 1

Grant of licences: assessments of environmental effects

“(1) This section applies to—

(a) a spaceport licence;

(b) an operator licence authorising launches of spacecraft or carrier aircraft.

(2) The regulator may not grant an application for a licence to which this section applies unless the applicant has submitted an assessment of environmental effects.

(3) In this section “assessment of environmental effects”—

(a) in relation to a spaceport licence, means an assessment of the effects that launches of spacecraft or carrier aircraft from the spaceport in question, or from launches of spacecraft from carrier aircraft launched from the spaceport, are expected to have on the environment;

(b) in relation to an operator licence authorising launches of spacecraft or carrier aircraft, means an assessment of the effects that those launches are expected to have on the environment.

(4) If or to the extent that the regulator directs, the requirement imposed by subsection (2) to submit an assessment of environmental effects may be met by submitting—

(a) an equivalent assessment prepared previously in compliance with a requirement imposed by or under another enactment, or

(b) an assessment of environmental effects prepared in connection with a previous application.

The regulator may make a direction under this subsection only if satisfied that there has been no material change of circumstances since the previous assessment was prepared.

(5) The regulator must take into account the assessment of environmental effects (including any assessment submitted as mentioned in subsection (4) in deciding—

(a) whether to grant a licence to which this section applies;

(b) what conditions should be attached to such a licence under section 12.

(6) The regulator must issue guidance about—

(a) the form, contents and level of detail of an assessment of environmental effects;

(b) the time for submitting an assessment of environmental effects;

(c) the circumstances in which the regulator will or may give a direction under subsection (4).

Guidance under paragraph (a) may specify matters that are to be dealt with in an assessment of environmental effects only if the regulator so requires in a particular case.”—(Joseph Johnson.)

This new clause requires assessments of environmental effects to be carried out before the regulator can grant certain licences, and makes further provision about such assessments.

Brought up, read the First and Second time and added to the Bill.

New Clause 2

Potential impact of leaving the European Union on the United Kingdom’s space industry

“(1) The Secretary of State must carry out an assessment of the potential impact that leaving the European Union will have on the United Kingdom’s space industry.

(2) The assessment under subsection (1) must make reference to the following areas—

(a) membership of the European Space Agency;

(b) the impact of the UK’s exit from the EU on research and development and access to funding, including Horizon 2020;

(c) the free movement to the UK from the EU of those who work in the space industry;

(d) the UK’s participation in the Galileo and Copernicus programmes; and

(e) the impact of the UK leaving the Single Market on supply chains within the space industry. (3) The Secretary of State must lay a report of the assessment under subsection (1) before Parliament within one year of this Act passing, and once in each calendar year following.”—(Dr Philippa Whitford.)

This new clause would ensure the Government prepares and publishes an impact assessment of the potential impact on the space industry as a result of the UK leaving the EU.

Brought up, and read the First time.

[Dr Whitford]

I beg to move, That the clause be read a Second time.

In light of the process of leaving the European Union, the clause seeks, as was referred to by hon. Members earlier, to consider the impact. We have looked at the impact assessments, particularly at the aerospace assessment, when we had the opportunity to view what are called the Brexit papers, and what we saw was a description of the aerospace industry and comments from the industry, but not the impact.

Although the European Space Agency is separate to the EU, it receives significant funding from it. With the new clause, therefore, we seek assurances that the UK will still be able to be part of the agency, to be active in it and, as the Minister said earlier, to be able to bid for contracts under Copernicus or Galileo for satellite work, in which the UK is a leading player. The clause simply calls for an assessment of the impact on the developing space industry of leaving the EU, to ensure that, as negotiations go forward, the Government set themselves to achieve the best deal for the space industry.

[Joseph Johnson]

As the hon. Lady knows, the UK has played a major part in developing the main EU space programmes, Galileo and Copernicus, which have supported the rapid growth of the UK space sector and contributed directly to our prosperity. The UK is recognised for its specialist capability in the area of earth observation, and has been especially involved in the development of the Galileo security modules and encryption, which are integral to a secure and resilient earth observation system. The Government recognise that, which is why the future partnership papers I referred to earlier, which were published in September 2017, set out that, given the unique nature of the space programmes’ applications to security as well as to science and innovation, and the extent of the UK’s involvement, the EU and the UK should discuss all options for future co-operation, including new arrangements subsequent to our departure from the European Union.

--- Later in debate ---

[Dr Whitford]

Does the Minister therefore foresee the UK continuing to pay funds? If so, will they be paid directly to the ESA or via the EU? Obviously, the EU is a significant funder of the ESA.

[Joseph Johnson]

The European Space Agency delivers a number of programmes for the European Union, but we continue to be a member of the ESA in our own right and, as I said, we are contributing record amounts—more than €1.4 billion in the current budget period.

--- Later in debate ---

[Joseph Johnson]

I obviously note the point about the duration of Horizon 2020, which does indeed end at the end of 2020, but we have committed as a Government to exploring all options for future participation in the next set of framework programmes, which will start after 2020. We have every hope that those discussions will conclude successfully, because those research programmes deliver huge value to our science and research communities and to our universities all over the country, including in Scotland.

On that basis, I ask the hon. Member for Central Ayrshire to consider withdrawing her new clause.

[Dr Whitford]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Bill, as amended, to be reported.