Space Industry Bill [HL]

Lord Moynihan Excerpts

2nd reading (Hansard): House of Lords
Wednesday 12th July 2017 Lords Chamber

[Lord Moynihan (Con)]

My Lords, I declare two interests. First, I am a member of the Delegated Powers and Regulatory Reform Committee. As the Minister said, its involvement with this legislation began early. It was invited to comment on the draft spaceflight Bill at the request of the House of Commons Science and Technology Committee towards the end of the previous Parliament, a contribution which was welcome as a precedent and which, in turn, led to substantial changes from what was, in effect, a skeletal Bill to one where the number of regulations subject to the affirmative procedure has increased from four to 13.

My second declaration is that I live in Prestwick, having moved to Scotland in December last year. I take an active interest in the area, not least because the office I occupy overlooks Prestwick Airport. I am a strong believer that Scotland and south Ayrshire, in particular, can significantly benefit from being designated and licensed as one of the first airports to enable commercial spaceflight activities—not vertical-launch rockets, but the horizontal launch of modified 747s to include satellites, scientific experimentation and suborbital spaceplanes. This part of Scotland is already a hub for high-tech engineering and experts in the aviation industry. It is also home to a wide range of entrepreneurially minded individuals from Buzzworks, with its nationally achieved award-winning restaurants across Ayrshire, to the remarkable business acumen and philanthropism of Tom and Marion Hunter. This is an area ready to take on the challenge as a home for high-tech companies as well as being one of the most beautiful areas of the United Kingdom. However, despite that paean of praise, I have no commercial interest in the subject of the Bill. My views are personal and underline my belief that south Ayrshire can become a thriving business centre for the supply and service sector to support spaceport activities.

In his excellent speech, the Minister referred to the way in which links with schools can provide the vital local benefit of preparing young people for careers in aviation technology and the spaceflight industry. The area can become a thriving economic zone lifting it to the forefront of technical expertise with training programmes, a visitor centre and some 880 acres of land for aerospace-related development adjoining Prestwick Airport. Prestwick Aerospace already employs more than 3,000 highly skilled employees. It is the largest aerospace cluster in Scotland. If other sites are licensed in Scotland, the aerospace cluster at Prestwick will be able to service their development and act as the hub for technical and supply activities, bringing significant jobs to the local communities.

The educational links are perhaps the most exciting for the area. Ayr College, Strathclyde University, Glasgow University, UWS and the Astronomy Technology Centre at Edinburgh University can all be significant beneficiaries. Prestwick Airport is well located and has the best surface links of any Scottish airport. Its local weather microclimate is recognised as the best in the UK. It is not looking to become a Cape Canaveral with vertical launches—more remote locations would fit that bill—but it would focus on horizontal flights.

Of course, this Bill is not just about Prestwick. As the Minister stated, there are many opportunities throughout the United Kingdom, and it is my firm opinion that it will be necessary to license at least two spaceports in the UK to develop and deliver a sustainable and effective solution for launch operations, including, most importantly, diversionary runway capabilities.

Addressing the whole of the UK, the regulatory environment has the potential to support companies in their bid to help government,

“capture 10% of the global space market”,

by 2030. The most immediate beneficiary of this Bill will be the opportunity to deliver a significant proportion of the estimated 3,500 to 10,000 satellites that are due to be launched by 2025. It will also facilitate the building of bigger and more technologically advanced satellites and remove the need for UK companies to use test facilities located abroad.

Today is the first step in the parliamentary process to create the legal framework to enable exciting new technologies to operate safely from the UK. It is a welcome clear signal of the UK’s commitment to enable commercial spaceflight to be carried out from UK spaceports, including the launching of small satellites into orbit, and permitting manned suborbital operations for scientific experiments and space tourism. It is essential that through the legislation before us we create a regulatory process which is internationally competitive for the billions of dollars of investment income which can boost the economy, British business, engineering and science by making the UK the most attractive place in Europe for commercial spaceflight and competitive with any regulatory system in the world. That is a significant challenge, but the most important objective is to provide a comprehensive and proportionate regulatory framework to manage risk, ensuring that commercial spaceflight and everyone working in the sector remain safe. The measures in the Bill to promote public safety by providing a regulatory framework to cover operational insurance, indemnity and liability are important in this respect.

Committee stage will provide us with the opportunity to scrutinise the Bill in detail. When we do, there are a number of key issues which we need to consider, some requiring an important balance between regulation and the vital importance the private sector attributes to the Bill providing a competitive framework, with enthusiasm and backing from the Government and a level of funding support commensurate with commercial success. As my noble friend the Minister said, we are talking about intense international competition to attract inward investment. The Government will need to step up to the plate as much as the private sector and will need to do so quickly if we are to gain competitive advantage.

I urge my noble friend the Minister to ensure that we do not stifle this opportunity by overregulating, as other nations such as Spain, Portugal and Norway are preparing competing legislation and launch sites. I ask my noble friend to give the House his commitment that the final legislative framework will ensure that the Government recognise the reduced risks posed by small-scale microlaunchers and nanosat payloads, each exceptionally valuable new areas where Britain could lead the world with “soft touch” regulatory oversight, while always recognising that there is no room for manoeuvre when it comes to the paramount question of safety. To allow this industry to succeed in the long term, it is essential that licensing, insurance and range-tracking costs are appropriate to the level of risk, so that the UK can build a globally competitive national space launch capability for the UK. A burdensome regulatory requirement would negatively impact this opportunity, which will see a massive growth in satellites and an ultimate colonisation of space.

From the perspective of my work on the Delegated Powers and Regulatory Reform Committee, I believe the Government have already moved significantly to improve the Bill, which is very welcome. I was concerned that in the original draft Bill, the Government appeared to dispense spaceport operators from any statutory requirement in any Act of Parliament, without any parliamentary procedure whatever. Now, the Government have acknowledged, perhaps implicitly, the committee’s argument that a regulator’s job is to regulate compliance with the law not to dispense people from complying with the law.

It is also welcome to see that the Government have taken on board many of the committee’s recommendations. The number of regulations subject to the affirmative procedure has increased from four to 13, and two objectionable Henry VIII powers have been removed altogether. However, my one remaining concern in this area is the question of safety in a new, fast-moving and changing technology-driven sector. In the case of safety regulations under Clause 18, my noble friend justified making the first set of regulations affirmative, and subsequent regulations only negative, on the ground that the continuous updating of safety regulations should occur in a “nimble and proportionate” way—an unfortunate turn of phrase. No one would want safety regulations not to be updated because of the alleged difficulty of scheduling affirmative debates. I had ministerial responsibility for responding to both the Hillsborough tragedy and the Piper Alpha disaster, and the safety of the public must always be paramount. It sits as a priority alongside the safety of the nation. I very much hope that the Government will further reflect on the compromise solution on offer in Clause 18. I believe the issue of safety is sufficiently important to require the affirmative procedure whenever and wherever safety regulations are revised and updated, particularly in this new industry. It should be for the House to be proportionate and not the Government.

I also hope the Minister can respond to the excellent comments made by the noble Lord, Lord Hunt, about the international relationships we have in this sector. I hope he will give a commitment today that we should be working very closely with the FAA in the United States, looking to learn from its regulatory framework and seeking to agree a bilateral arrangement to submit export licences for approval. I hope urgent progress is being made on this front and that the question of what is US technology and how it will be controlled if not on US soil is resolved before we leave Committee. The FAA in the States had never seen spaceflight before. It had to work through the role with all interested parties, as we should. There was a need to determine the right balance between the roles and the responsibilities of each and every party. We need similar progress in the UK, and I hope that my noble friend can set out a timeline for the measures set out in the Bill until the first licences and approvals are granted.

My second request to the Government is that, notwithstanding which operator is appointed, the sector needs to be joined up. There is talk of the Space Agency investing a sum of £10 million. We need to recognise that this will not go far in a multibillion pound industry if we are to meet the Government’s objectives. The cost of a suborbital flight system is of the order of £120 million, and modifying a 747 as a carrier aircraft stationed in a UK airport—the type envisaged for airports such as Prestwick—is unlikely to cost much less than £700 million. Yet we have no real idea how the Space Agency is approaching the grant process and how it will reach decisions about which sites it backs and which operators at those sites. It has talked of £10 million being available, but it is not clear whether that will be per site or per operator. Not to put too fine a point on it, as I mentioned, £10 million is de minimis funding in the context of the space industry, especially if the UK wants to get behind it and establish a new, exciting growth industry as we approach Brexit.

My third and final observation is that we want to avoid regulatory mission creep. We must at all times maximise the participation of the private sector while providing a safe, secure, transparent and accountable regulatory framework, and there is no time to lose.

The Bill is a welcome and important step in the right direction, and I very much hope that when the House moves into Committee, we will have the momentum towards further and accelerated progress and clarity for the future of an important sector in a safe working environment.

Space Industry Bill [HL]

Lord Moynihan Excerpts

Committee: 1st sitting (Hansard): House of Lords
Monday 16th October 2017 Lords Chamber

[Lord Willetts (Con)]

My Lords, I thank the noble Lord, Lord McNally, for his kind remarks. I declare an interest as a member of the boards of Surrey Satellites, a space company, and of Sirius, a space security company. The noble Lord raised an important question. When talking about science innovation it is very hard to be absolutely confident about what the exact scale of monetary benefits to the British economy might be. However, we have a particular geographical advantage. If one is trying to launch satellites into polar orbit, launching over an ocean at a good angle is very attractive for many companies. With the Irish Sea and, even more importantly, in Scotland, we have the opportunity for spaceports that could be a good location for vertically launching satellites into polar orbit.

There is now a very lively race going on between several possible locations for spaceports. Norway is planning one and the Azores are working on one to launch satellites out over the Atlantic. I strongly support the Bill because it provides the possibility of the UK entering that competition early with, apparently, a range of candidates in other locations as well as the north of Scotland. From the Back Benches, I assure the House that there is an enormous opportunity here. There is currently no major spaceport functioning in Europe that enables space launches to take place over the ocean. It could well be that, as a result of this excellent Bill, the UK has an opportunity to take the lead in that.

[Lord Moynihan (Con)]

My Lords, I declare my interest, which I declared at Second Reading, of living in sight of Prestwick Airport. I am a great protagonist for the interests of that airport. The comments that have been made are extremely important: we need to get a first-move advantage in western Europe. This is a highly competitive market and we have a real opportunity to put our significant skills base into effect in ensuring that we have early recognition and licensing of spaceports in the UK. There should be two. However you look at the spaceport option, there will always be the weather challenge. While Prestwick happens to have an outstanding microclimate and is highly suited to being the first spaceport with its nearly three-kilometre runway and a launch direction out over the north Atlantic, as my noble friend has just said—particularly for the launch of satellites, which is a very important part of this—the Government would be wise to look at licensing two spaceports in the first instance, not least because of the weather implications.

In response to the noble Lord, Lord McNally, it is gratifying to see an all-party approach being taken to this issue, both locally and nationally. In the context of Ayrshire and Scotland, not only have the Scottish and British Governments done a lot of very good work, but so have MPs from across the spectrum, such as Bill Grant and Philippa Whitford, and my noble friend Lady Ford, who was very active on this issue during the summer, as well as council leaders of all parties. It is important that they all recognise the benefits of spaceports and of the industrial opportunities around licensing them, as well as of outreaches in terms of employment opportunities and the links to schools and encouraging young people in the vicinity to study science. In Ayrshire, there is heavy unemployment in some of those areas. This would be an inspirational opportunity for young people to study the sciences and related industries. As I say, the advantage of making the first move is critical in the international global market and there are real benefits to local communities where the first spaceports are likely to be licensed.

[Lord Callanan]

I shall take that last point first and thank my noble friend Lord Moynihan for his support. It is unusual for someone who lives near an airport to want to see an expansion of opportunities for it. He will understand that, as aviation Minister, my postbag is normally filled with correspondence from people living near airports who seek to halt whatever goes on at those airports, so I welcome his support.

This amendment raises the impact of the Bill on the UK economy and seeks to provide some degree of assurance through the annual laying in Parliament of an assessment of the monetary benefits. Noble Lords are right to draw attention to the economic opportunity the Bill represents, the need to evaluate the market effectively and how we measure the benefits it will enable. As noble Lords know, the UK space sector is a British success story, a growing sector which continues to pioneer new technologies from satellites and instruments to new applications and services. The one area where our space sector cannot prosper is launch. The Bill will allow us to do just that. This legislation will create a safe and supportive regulatory environment for small satellite launch and suborbital flight in the UK. I am confident that the UK will attract companies and investment. Only last Friday, I met stakeholders to discuss the Bill and the wider space sector. I heard an awful lot of positivity about the Bill and the future demand for launch activities.

Earlier this year, the Government announced a call for industry proposals to establish a launch capability in the UK. This resulted in 26 proposals for grant funding from bidders wanting to establish spaceports around the UK, along with operators from the UK, Europe and the US. Through this approach we have demonstrated a strong interest in spaceflight activities in the UK from right across the country.

On evaluating the importance of the sector to the UK, the UK Space Agency and its partners conduct regular economic evaluation. The majority of these assessments are publicly available and published online. This includes a biannual size and health survey of the UK space industry. The emerging market for spaceflight in the UK will be included in future versions of this industry-wide evaluation and will be made publicly available, as it is now.

The amendment would require a report to include details of companies that have expressed an interest in carrying out spaceflight activities. Details of the companies that have approached government are largely commercial and in confidence. I am sure noble Lords will agree that it would not be appropriate for government to report on these engagements or on these companies’ plans.

With regard to the economic opportunity for the UK, global small satellite launch and servicing could exceed £25 billion in revenue over 20 years, with an untapped European regional market potentially worth around one-third of this £25 billion. Nowhere in the world is this market fully exploited by a sustainable commercial offering. In addition, suborbital launch creates new opportunities for UK science by giving British scientists access to the unique environment of microgravity, as well as training, tourism and supply chain opportunities.

I understand the intention behind the amendment. However, I hope noble Lords will agree that we already engage extensively with industry to develop our plans and continue to conduct assessments to ensure we are making effective decisions. It would not be appropriate to duplicate information already collated and published in the public domain or to disclose information provided in commercial confidence to public bodies. I therefore hope the noble Lord will withdraw Amendment 2.

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Moved by

[Lord Moynihan]

4: Clause 3, page 3, line 16, leave out “spaceflight activities” and insert “a specific spaceflight mission or class of missions”

[Lord Moynihan]

My Lords, I rise to make a short probing amendment. Before I do, may I say how much I appreciated the excellent speech by the noble Baroness, Lady Randerson? I want to comment that in Ayrshire, we have none of the problems that she perceives exist in Cornwall, nor indeed in Wales. We have a tough and comprehensive security arrangement that surrounds and includes our airport. On the contrary to the noble Baroness’s concerns about tourism, I think spaceports will increase tourism. In fact, we envisage a visitor centre near the airport because there would be real interest in the adopted and adapted 747s that will be necessary for a lot of the satellite launches, not just from people involved in aviation but from the local community. After all, when it comes to security and noise, many residents of south Ayrshire have experienced Concorde in training many years ago and many military activities at present. The rare launch of these aircraft—we are not talking about a daily basis in this Bill and rarely on a weekly basis—will be of a frequency much less than the general public perceive and the noise associated with horizontal take-offs will be de minimis. Indeed, Prestwick is applying for only a horizontal licence. I make that comment in passing as I am sure my noble friend the Minister is aware of how ready Prestwick Airport is to move on this and how it would like to accelerate the licensing powers in this Bill so as not to lose competitive advantage.

My amendment is rather more specific, but nevertheless very relevant to the comments of the noble Baroness, Lady Randerson, on bringing relevant aircraft parts to the spaceport. At the moment, as I read it, an operator licence means a licence under the clause,

“authorising a person to carry out spaceflight activities”.

It is the word “activities” that I have an element of concern with. This could involve companies involved in R&D relating to spaceflight activities, or bringing relevant aircraft parts and those companies involved in doing that. I am sure the intention is not to have a licence for all those activities. It is my suggestion to the Minister that as currently drafted that may be too wide. My probing amendment is simply to delete “spaceflight activities”, and insert,

“a specific spaceflight mission or class of missions”,

which is what I understand to be the Government’s objective in awarding operator licences. I hope I have been incredibly helpful to my noble friend the Minister, who will be able immediately to accept this constructive and reasonable amendment. I beg to move.

[Lord Callanan]

I pay tribute to my noble friend’s enthusiastic promotion of his local airfield. I am sure his comments have not gone unnoticed. I have certainly taken them on board.

The fundamental purpose of Clause 3 is to prohibit the carrying out of spaceflight activities or the operation of a spaceport in the UK without a licence. Launch from the UK is a new activity and we envisage that launch vehicles will be licensed on a per-launch basis, but the Bill allows for the licensing of a launch vehicle for a number of launches if that is deemed appropriate.

The amendment tabled by my noble friend raises an interesting issue pertinent to the future growth of the space sector—namely, the challenge of licensing classes of satellite together, as opposed to licensing each satellite separately. This is particularly relevant for so-called mega-constellations, comprising a great number of satellites working in concert.

The current licensing regime under the Outer Space Act already allows us to license a constellation of satellites that can be described broadly as multiple satellites of similar or identical design under the control of a single operator and which work together to deliver a single service. The definition of “operator licence” in the Bill is also wide enough to allow for the licensing of a constellation of satellites. Of course, while the Bill is designed to cover all types and classes of mission, a licence will be granted only if the regulator is satisfied that a licensee has met all necessary requirements, most notably those relating to safety.

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[Lord Callanan]

I shall first address the noble Lord’s question. It is considered that the activity of operating a spaceport will not qualify for an exemption as the activities that will take place from the spaceport will have safety implications, for example, the storage of hazardous materials, the launching of spacecraft et cetera.

I shall give the noble Lord a few more details on the kind of exemptions that we are considering under these clauses. These exemptions are based on similar exemptions contained in Section 3(2) of the Outer Space Act 1986. The first exemption in Clause 4(1) is for situations under the UN space treaties where the UK and another state are jointly liable for a space activity. This provision allows the UK and the other state to allocate responsibility for regulation, supervision and monitoring activities between themselves. This exemption would be made by way of an Order in Council. The second exemption provides that activities or persons can be exempt from the requirement to hold an operator licence if the activity does not give rise to safety concerns or invoke the international obligations of the UK. There is also an exemption in Clause 7(4) that regulations may exempt persons or services from the requirement to hold a range control licence if the activity does not give rise to safety concerns or invoke the international obligations of the UK.

The terms “operating a space object” and “operating a spacecraft” in the Bill are drafted to be intentionally wide. Although this is useful and necessary to capture all activities for which a UK liability might arise under the UN liability convention, certain activities could be captured where there are no safety or security implications and the state liability is already indemnified by someone else. In such a case, a licence might not be necessary and could be overburdensome on industry. Clause 4 therefore provides for exemptions in these circumstances.

I shall give some examples of activities that could be exempted from licence requirements. The Bill provides that persons engaging spaceflight activities and range control services can qualify to be exempt from the requirement to hold a licence. Some aspects of manned suborbital activities could qualify for an exemption. However, the exemption under Clauses 4(2) and 7(4) will apply only in cases where the activity does not give rise to concerns for public safety or the safety of those involved in the activity. If there were any concerns that the activity would put people’s safety at risk, then it would not qualify for an exemption. To qualify for an exemption under Clause 4(1), another country would be required to take on all the international obligations of the UK. I hope that my response satisfies the noble Lord’s concerns.

[Lord Moynihan]

My Lords, I am very grateful to the Minister for his response and for the intervention from my noble friend, who is exactly right. My concern was not the distinction between a specific spaceflight mission or a cluster of missions—as important as that is, which my noble friend the Minister addressed—but the use of “activities” in the legislation, which seems to go far wider than is intended in the context of issuing licences. It can mean anything from training programmes to a visitor centre, or any activity which is related to the operation of the spaceport. I note that in response to my noble friend, the Minister said that he recognised there might an issue here and that he was prepared to go away and think about it. I would be grateful if he would, because the wording here could be improved to allay any concerns about the breadth of the activities that he has in mind for the issuing of operator licences. In the spirit of his response, I beg leave to withdraw my amendment.

Amendment 4 withdrawn.

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Moved by

[Lord Moynihan]

5: Clause 7, page 6, line 39, after “guidance” insert “in regulations”

[Lord Moynihan]

My Lords, in moving Amendment 5 I will also address Amendments 6, 9, 10, 25 to 28, 30 and 31. First, I declare an interest. I am a member of the Delegated Powers and Regulatory Reform Committee, which I hope has contributed constructively to the drafting of the Bill and to briefing the House on a number of issues relating to it. The comments I wish to make are strictly personal and the position taken by that committee is before the House in any event.

The House may recall that the House of Commons Science and Technology Committee examined the draft Spaceflight Bill towards the end of the last Parliament and invited the views of the Delegated Powers and Regulatory Reform Committee. Given the importance and intrusiveness of many of the Bill’s provisions, the Delegated Powers and Regulatory Reform Committee recommended that some delegated powers be removed altogether and that others should be subject to the affirmative rather than the negative procedure. I personally place on record that I believe that the Government have taken on board many of that committee’s recommendations. The number of regulations subject to the affirmative procedure has increased from four to 13, and two objectionable Henry VIII powers have been removed altogether—I say objectionable because they included one that allowed the regulator to dispense spaceport operators from any statutory requirement in any Act of Parliament, without any parliamentary procedure whatever. The Government have perhaps implicitly acknowledged the argument that a regulator’s job is to regulate compliance with the law and not to dispense the need for compliance with it.

Several provisions in the Bill allow the Secretary of State and the regulator to issue guidance, and I will concentrate for a moment on this word “guidance”. No parliamentary procedure attaches to the issuing of such guidance. The Government justify this on the ground that the guidance is intended to be user friendly, be detailed and aid policy implementation by supplementing regulations, rather than intended to substitute any legislative provision. My view is that where someone must have regard to guidance, or indeed must follow it, the guidance has legal significance—meaning in turn that some parliamentary procedure is appropriate, typically negative-procedure regulations. The fact that the Government say the guidance is designed to supplement regulations—in other words, add to the law—also suggests that some parliamentary procedure should attach.

In Clause 67 there is an increase in the number of regulations subject to the affirmative procedure, from four to 13. However, this is not quite the whole story. Of these 13 affirmative sets of regulations, five contain what the Government have called a compromise. In other words, the first set of regulations made under the powers in question have to be affirmative but subsequent regulations are only negative. This is unquestionably an advance on the position taken in the draft Spaceflight Bill, but it invites several comments. The technique could be open to abuse. The first set of regulations, the affirmative ones requiring debates in both Houses, might only be skeletal. The subsequent regulations might provide all the real substance but they would merely be subject to the negative procedure. I am certainly not suggesting that the Government intend to adopt such a ruse, but I hope the House will judge delegated powers not merely on how the present Government propose to use them but on how any hypothetical Government might be able to use them in future.

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[Baroness Sugg (Con)]

I thank my noble friend for allowing me the opportunity to explain the Government’s approach to statutory guidance under the Bill. I also thank him for his work on this Bill and for his role in the Delegated Powers and Regulatory Reform Committee. As he said, the Government have taken on board many of the recommendations of that committee, following its scrutiny.

The purpose of guidance is to aid policy implementation by supplementing the legal framework. It is not intended to circumvent this legal framework set out in primary or secondary legislation. The main benefit of the guidance is the flexibility to amend quickly and take account of changing events. For example, recently with Monarch Airlines, the CAA had to provide extensive guidance about passenger consumer rights under the ATOL scheme. This included what protections there were for consumers and how they could go about making an ATOL claim. This guidance had to be produced very quickly to support those impacted by the airline’s failure, and it is a clear demonstration of the flexibility of having guidance not made in regulations.

I should add that the approach we are taking under the Bill is consistent with that in aviation. Various standards, technical information and information regarding best practice can change annually. It would be difficult to keep up with changes if the guidance had to be approved by Parliament every year. There are parallels, too, with the approach taken on health and safety and other technical sectors. For example, in the nuclear sector, guidance sets out how people can comply with the requirements imposed by the Nuclear Installations Act 1965.

I assure noble Lords that the Government’s approach to the statutory guidance will be transparent. The initial sets of statutory guidance will be consulted on to allow scrutiny and comments from anyone with an interest. Where the guidance relates to regulations we will consult on it at the same time as consulting on the draft statutory instruments. Perhaps it might be helpful, in response to the questions from my noble friends Lord Moynihan and Lady Neville-Rolfe, if I set out what we believe the split to be between the regulations and the guidance under the Bill. There may be matters on which the regulator does not wish to prescribe a particular way of working but wishes to help operators with guidance. For example, in relation to safety assessments, the regulator will be primarily interested in the outcomes rather than prescribing specific processes or methodologies. That is in line with best practice in health and safety where regulations will set out what must be taken into account and the requirements to be met in carrying out a risk assessment. Guidance will recommend a certain approach to carrying out that risk assessment.

The noble Lord, Lord Rosser, raises the point around the DPRRC recommendation on Clause 9. As I have already mentioned, the purpose of the guidance is to support the implementation. The recommendation in this case focuses on the need for parliamentary scrutiny of guidance given by the Secretary of State to the regulator. We believe that we need the flexibility for guidance to the regulator as well as for guidance to other persons. In aviation, for example, the CAA is required to take account of the guidance on environmental objects when carrying out its air navigation functions.

As my right honourable friend in the other place John Hayes said in his letter in response to the Committee, the initial guidance on this clause will be subject to a full consultation to enable scrutiny and comment from all those with an interest. Obviously this is an area of considerable interest in the Chamber, and we will certainly reflect on all the points made today. Given these assurances, I ask my noble friend to withdraw Amendment 5.

[Lord Moynihan]

I am very grateful to my noble friend for her response. She cites the case of Monarch and passenger and consumer rights in the guidance. Of course, that had legal significance. The point that I am making here is that, given the way in which the Bill is drafted, there are some areas where there is no legal significance behind the guidance. Indeed, it is very interesting that some of the provisions allow the Secretary of State or the regulator to issue guidance but do not require the recipient to have regard to the guidance at all. I cite Clauses 7(7), 17(3), 18(3) and 22(3) in that context.

Given my noble friend’s very helpful response, it would be worth just taking this away and making sure that the appropriate scrutiny by both Chambers is in place, and that the argument for guidance to have legal significance is taken into account, particularly in the context of her example about the demise of Monarch Airlines. She makes the very important point, as was made from the Liberal Democrat Benches, that safety methodologies are not what is being looked for; rather, it is safety outcomes, because safety cases are critical. I well recall, as Energy Minister in another place, that being the key point made in the Cullen report following the horrific Piper Alpha disaster in the North Sea. We are not looking here for detailed methodologies to be placed on the face of the Bill. Where safety is a matter of concern, we are looking for the appropriate scrutiny by both Houses to ensure that the guidance given has legal significance and that there is an appropriate parliamentary procedure in place to consider the proposals made by either the Secretary of State or the regulator.

My noble friend said that she would have a good look at this, which I appreciate. She will have heard the support from across the House to ensure that this was appropriately reflected in the Bill. With that in mind at this stage of the Bill’s proceedings, I beg leave to withdraw the amendment.

Amendment 5 withdrawn.

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[Lord Moynihan]

My noble friend just informed the Committee that, particularly in the context of Clause 33(5) and (6), the Government are as yet unclear whether capping would be appropriate and, if so, in what circumstances. I hope there will be further clarity on that question before we make progress on the Bill, because although the Government may be uncertain, the industry is absolutely sure that to be competitive, early clarity on the Government’s policy of capping will be very important. If we are not to have a capping policy, then, to be frank, the Bill will never permit the growth of what will be a critical industry in this country, in which we need to be internationally competitive against other countries that have recognised that a cap, in the context of Clauses 33 and 34, will be vital.

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Moved by

[Lord Moynihan]

19: Clause 12, page 9, line 44, at end insert—
“( ) The regulator must sign a Memorandum of Understanding with the European Aviation Safety Agency (EASA) and the CAA confirming the conditions under which spaceflight would cease to be deemed experimental and would be considered commercial.”

[Lord Moynihan]

My Lords, before I speak to Amendment 19, for the sake of the record I shall say that the noble Lord, Lord Tunnicliffe, has on two occasions referred to Glasgow as a possible site for a tragedy as a consequence of a spacecraft crashing. I wish to make it absolutely clear for the record that the proposal in the Prestwick application is to head north-west, straight out to sea. The sea is no more than two miles from the end of a three-kilometre runway. Prestwick Airport would be applying for a licence, not Glasgow Airport.

That said, I am sure the noble Lord, Lord Tunnicliffe, will support what I am going to argue on behalf of the European Aviation Safety Agency’s relationship to us in the UK. The House of Commons Science and Technology Committee argued that it is not clear whether the new regulatory framework proposed by the Government would apply to commercial spaceflight operations or whether they would be subject to European Aviation Safety Agency regulation. The Government have argued that the European Aviation Safety Agency’s exemption of experimental aircraft from its regulations means that spaceplanes are not subject to EASA regulations and would therefore come under the provisions of the Bill we are considering.

The Science and Technology Committee argued, however, that it was not clear whether this exemption would be sufficient, particularly if spaceplanes were deemed to be operating on a commercial rather than an experimental basis. The committee recommended that the UK seek to establish a memorandum of understanding with the EASA to clarify the point.

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[Lord Callanan]

I thank my noble friend for making an important point and for tabling this amendment on what is an interesting subject. I start by assuring him that the Government have had a very constructive discussion with the European Aviation Safety Agency on our proposals to regulate suborbital spaceplanes in the UK.

The outcome of this dialogue has resulted in mutual agreement that suborbital spaceplanes are considered to be aircraft and therefore EU aviation legislation should apply to them. EU Regulation 216/2008, known as the EASA basic regulation, exempts from its scope those,

“aircraft specifically designed or modified for research, experimental or scientific purposes, and likely to be produced in very limited numbers”.

In discussions about revising the text of the EASA basic regulation, the European Commission agreed that, while spaceplanes are in the developmental stage, spaceplane operations would continue to fall under this exemption. The context of the assurance was that member states should be able to legislate for commercial suborbital spaceplane operations that launch and return to the same spaceport now, before the EASA has had time to make EU-wide rules. The Commission has also confirmed that neither commercial use nor having paying passengers in itself precludes a spaceplane from falling within the exemption.

The UK recognises—we are in agreement with the EASA on this point—that as soon as the suborbital operation starts and finishes in two separate locations, it may be considered to be public transport and subject to the full weight of European aviation rules. Although the Government’s intention is to continue to work closely with the EASA whatever the outcome of EU negotiations, we need to ensure that in doing so the UK retains a degree of flexibility to develop its own regulatory framework, drawing on the best practice from those states that already conduct commercial launches, such as the US and India, as well as from other European states.

Currently there are no European-wide regulations for spaceplanes and spaceports. We are leading by example by creating this comprehensive regulatory framework in the UK. This should have considerable business benefit for the UK. But this will also benefit the EU, and the EASA recognises that this will help inform the development of any future European regulatory framework. The Government have agreed with the EASA to work with other European states to develop common principles for regulation for suborbital operations. However, in doing so, the Government will ensure that the UK is not put in a position, as a result of any change in our future relationship with the EASA, where the EASA is handed too much control, or worse a veto, over the development of the UK space sector.

I hope I have provided the reassurance that my noble friend is looking for and that in the light of that he feels able to withdraw his amendment.

[Lord Moynihan]

That was an outstanding and exceptionally helpful answer from my noble friend on this important subject. As long as the mutual agreement has been documented in the way that he has suggested, I am completely happy to withdraw the amendment. His assessment of the current position of our relationship with the EASA was exceptionally helpful to the House, and I thank him for it.

Amendment 19 withdrawn.

--- Later in debate ---

Moved by

[Lord Moynihan]

29: Schedule 4, page 53, line 38, at end insert “including through the use of drones,”

[Lord Moynihan]

My Lords, this amendment relates to drones, a serious issue already rightly raised from the Liberal Democrat Benches this evening. The Committee will recall that at Second Reading, my noble friend Lord Balfe made a powerful speech on the subject from a great deal of personal and professional knowledge. The safety issues associated with drones are critical and, as the House was informed at the time, it was understood that legislation had been drafted to address the problems associated with irresponsible use of drones prior to the election and was therefore in a fit and proper state to be introduced to the House at an appropriate time.

The expectation of a serious accident is very high. It is a matter of concern to Members of both Houses that urgent action be taken to address the law on drones, which needs to be reviewed with, not least, compulsory registration of drones to allow police to track down those flying them irresponsibly. The fact is that the law is not fit for purpose to prosecute the perpetrators of this type of crime, which is a matter of great concern to those of us involved in the passage of the Bill through the House.

--- Later in debate ---

[Lord Callanan]

As far as I am aware, it is the Department for Transport, my department, which is doing it, but I shall come back to the noble Lord on that issue.

We strongly support EASA’s principle of using geo-fencing to enforce compliance with airspace restrictions and electronic identification, but we want to see the proposals simplified to all drones over 250 grams requiring geo-fencing and electronic identification, rather than a complex set of conditions.

The amendment intends specifically to make malicious use of drones an offence. Of course, I recognise that that may be a desired outcome, but Schedule 4 is drafted in such a way that, no matter what device is used unlawfully, it will be deemed an offence. On that point, and with the assurance that the Government intend to bring forward legislation specifically for drones in the timescale that I outlined, I hope that my noble friend will feel able to withdraw Amendment 29.

[Lord Moynihan]

I am very grateful to my noble friend the Minister. I thought that he might well mention Schedule 4, and I am grateful to him for doing so and putting on the record the view that he has just expressed. I also welcome the phrase “as soon as possible next year”, because that should ensure that changes to legislation in whatever form they may be introduced—and I recognise also that that has yet to be determined—will come in advance of issuing the first licences for spaceports.

I am grateful to the Minister and apologise to the Committee that, having flown in from Sydney at 5 am this morning, after about 26 hours travelling, I will not be here right at the end of this evening’s proceedings. I have put my name to Amendment 44, in the name of the noble Lord, Lord Rosser, which I totally endorse and support.

[Lord Callanan]

I apologise for forgetting to address the point made by the noble Lord, Lord Tunnicliffe, about laser pens. It is not part of the Bill, but I want to give him an answer. I understand where he is coming from: as he correctly said it was included in the Vehicle Technology and Aviation Bill, before Parliament was prorogued, to provide further certainty to pilots and the general public. We are continuing to look at other legislative vehicles. It is our intention to strengthen existing legislation. Safety is our top priority. Shining a laser at an aircraft in flight could pose a serious risk and anyone found guilty could currently be liable to a fine of up to £2,500, but it is our intention to strengthen existing legislation. I cannot give a timescale at the moment but will do so as soon as I am able.

[Lord Moynihan]

On that constructive note, I beg leave to withdraw the amendment.

Amendment 29 withdrawn.

Space Industry Bill [HL]

Lord Moynihan Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Wednesday 18th October 2017 Lords Chamber

[Lord Fox (LD)]

I must confess that in looking at the roster of the amendments, I tried to work out what the main thrust of the argument of the noble Lord, Lord Tunnicliffe, would be for deleting this provision. On hearing his detailed and comprehensive presentation, we find ourselves agreeing that there should be more powers to control noise than are currently available within the confines of the Bill. The noble Lord has identified that the provision may not be the optimal way to deliver that outcome. We would be interested to hear how the Minister might take this issue on board. The planning process should take it into consideration. The rejuvenated noble Lord, Lord Moynihan, will probably suggest that a launching facility that goes out over the sea may be one way of mitigating some aspects of the problems described. However, leaving that to one side, we believe that somewhere in the Bill firmer and more direct controls are needed within the armoury of Ministers.

[Lord Moynihan (Con)]

I thank the noble Lord, Lord Tunnicliffe, for reminding us of the importance that Prestwick Airport has already attached to the noise question and agree with many of the points that he made. Nobody in this Chamber has as much experience or expertise as him when it comes to flying 747s—indeed, it will be principally 747s that are adapted for these purposes. Those airports from which such aircraft currently fly and land will already have taken into account the importance of the noise question. It is vital that the point raised by the noble Lord, Lord Tunnicliffe, be taken into account. There should be full consultation with local communities. This is a new technology for many of them and there will be considerable concern about the level of noise. That should be dealt with through the planning applications that will in many cases be necessary; it should also be done in any event by those seeking licences. They should communicate and engage with local communities and make sure that this point is high on the agenda. If that is what the noble Lord, Lord Tunnicliffe, is aiming for, I support him. I know that everybody associated with Prestwick Airport is already minded to focus on this important issue, although, as was rightly pointed out, we have the benefit of a runway which would be used to take off pretty much immediately over the sea.

[The Parliamentary Under-Secretary of State, Department for Transport (Lord Callanan) (Con)]

My Lords, I thank the noble Lord, Lord Tunnicliffe, for moving his amendment—I shall say a few words about noise shortly. We have already had a helpful debate on Clause 33(5) and (6) and the power to cap an operator’s liability, but Amendment 34 would remove subsection (1). Under the amendment, an operator could be susceptible to claims for trespass or nuisance even where they had carried out their spaceflight activities in compliance with all the requirements placed on them.

I appreciate the concerns that noble Lords have raised about this clause and the possibility of spaceflight activities having an adverse impact on people in the locality. The clause is designed to balance the right to quiet enjoyment of one’s land against the right to carry out a commercial activity, and to ensure the minimal encroachment of rights where the operator is acting in accordance with the law. As the noble Lord acknowledged, it is replicated from Section 76(1) of the Civil Aviation Act 1982, which provides a similar protection for aircraft operators. We believe that this provision is necessary to prevent an operator who was acting lawfully from being sued by a third party who considers that his or her right to quiet enjoyment of land is being affected or interfered with.

I should highlight that given the nature of spaceflight activities, it is likely that spaceports will be set up in remote locations, very possibly in Scotland, where any noise or nuisance is likely to affect very few people. In comparison to aviation—where operators, I should remind the Committee, already have this protection—the number of spaceports and the frequency of spaceflight activities will be much fewer. The similar provision in the Civil Aviation Act protects aircraft against claims of trespass and nuisance. Therefore, where aircraft are used in spaceflight activities they already have protection against those claims, and for spaceports at aerodromes, the amendment would have little practical effect.

Our view is that subsection (1) is appropriate to enable spaceflight operators to carry out activities from the UK. It should also be stressed that such a protection does not apply if an operator does not comply substantially with all the requirements imposed upon them. This protection from claims of nuisance and trespass does not prevent anyone who has suffered injury or damage bringing a claim against an operator under the strict liability cause of action provided for in Clause 33(2) or under any other cause of action, such as negligence.

Let me give a little more detail on how frequently we envisage these operations being carried out and their noise impact. As the noble Lord, Lord Tunnicliffe, acknowledged, noise is undoubtedly a prime concern. My main ministerial responsibility is aviation, and I know all too well from my postbag of the difficulties caused to many communities where people live near or around airports. There will be a concern about launch operations; we need to acknowledge that spaceplanes and rockets create significant noise as they take off. Spaceplanes will also create significant noise as they pass overhead. Feedback from operators suggests that vertical launch operations could occur up to 12 times per year. These are indicative figures and would apply across the whole country. It is of course envisaged that in the early years of operations, launches will not even be as frequent as that.

It is difficult to provide an estimate of the launch frequency for suborbital spaceplane operations. Although precise noise levels have yet to be fully determined, initial indications based on published characteristics are that noise from spaceplanes should not create a more significant impact than noise from military fast jets. It is anticipated that in the immediate term, spaceports with horizontal launch operations will be able to comply with existing noise regulations, given that they will take place from a licensed aerodrome. Further analysis of the potential impact of noise will be carried out when a spaceport location is identified and the type of operations to be carried out from it decided. A spaceport operator would be expected to have planning permission for the use of the spaceport to carry out spaceflight activities, and the impact of noise will have been assessed as part of this planning permission.

Nevertheless, I accept the concerns about noise that have been raised by Members on both sides of the House. If your Lordships will allow me, I will therefore reflect further on the points made but in the light of those assurances, I ask the noble Lord to withdraw Amendment 34.

--- Later in debate ---

[Lord Tunnicliffe]

My Lords, I shall speak to Amendment 39 and the Motion that Clause 42 should stand part. The points made by the noble Baroness, Lady Randerson, underline why we support devolution, so we would not want this Bill to reduce in any way the responsibilities of the devolved Governments—along with the devolved city state of Prestwick.

Our concern with Clause 42 as a whole is that we do not understand why orders made under what will be Sections 38 and 40 cannot be challenged, but it then refers to a schedule under which they can. We feel that the drafting could be much clearer so that it takes account of the devolved Administrations and does not reflect an apparent conflict between the schedule and the clauses.

[Lord Moynihan]

My Lords, I agree with some of the comments that have been made about the importance of dialogue with the devolved Administrations. The success of a project of this kind depends heavily on a close working relationship with the devolved Assemblies and those responsible within them for supporting activities and investment in and around any proposed spaceport, as well as communicating with local authorities. I think it is inconceivable that the spaceport project should move forward without very close co-operation, for example with the Scottish Government; in fact, that should be at the heart and centre of the consultation and planning for development of potential spaceports in Scotland. On that point, I very much welcome that an amendment has been tabled to that effect, and I hope the Government will find some way of giving comfort to the Committee that this important issue, wherever it is in the United Kingdom, will be recognised and acted upon.

I am glad to report on the first point of the noble Baroness, Lady Randerson, who would expect me to reflect for just a moment on the importance of the land issue relevant to potential spaceports. For example, I am very glad to report to the Committee and place on the record that Prestwick Airport already owns sufficient land, so none of the ground requirements for spaceflight activities would require additional land. The restrictions will be merely in relation to the air volume zone. Depending on the strictness of regulations, the runway, as I have reported to the Committee, is a mere 13 metres short of 3 kilometres—so very long. There may be the need to carry out a consultation in order to process a planning application, but Prestwick Airport would not be impinging on anyone’s land or assets. That should give great comfort to the department to recognise that an early recognition of first-mover status for Prestwick Airport in this context should be granted.

[Lord Callanan]

My Lords, before addressing the noble Baroness’s amendment, if the Committee will allow me, I will go into a little more detail about the operation of orders that can be made under Clauses 38 and 40.

Clause 42 sets out that orders made under these clauses will become operative after six weeks, and how they may be challenged. It provides that the making of such orders may be challenged through applications to quash orders under Schedule 7. Persons who receive notice of a proposed order are also able to object to an order which has been proposed under the provision for objections set out in Schedule 6. The noble Lord, Lord Deben, is not in his place any more, but I point out that these order-making powers are equivalent to powers in the Civil Aviation Act 1982. A six-week time limit also applies to challenges to those.

Turning to Amendment 39, the noble Baroness, Lady Randerson, asked how such orders are made when they relate to land in Scotland, Wales or Northern Ireland. In this context, I feel a bit sorry for England, Wales and Northern Ireland, which do not seem to be receiving the same degree of attention as certain sites in Scotland, but I want to remain strictly neutral—my job is to try to get the Bill through, and I am sure there will be fair competition between the different sites regarding where spaceports should operate.

I want to assure the Committee that throughout the development of the Bill, we have consulted extensively with colleagues in the devolved Administrations. The Bill has the opportunity to benefit the whole of the UK. Scotland and Wales are actively supporting the development of spaceports in their regions, as we heard in the case of Scotland, while Northern Ireland is benefiting from direct industry investment in research and development. We have worked with them to ensure that they are content with all provisions in the Bill, and we have agreed an approach to land powers which our partners in the devolved Administrations are fully content with.

Schedule 6 requires that notice of a proposal to make an order under Clause 38 or Clause 40 must be published in local newspapers and also served on the local authority in question. This gives an opportunity for the devolved Administrations to raise any concerns about a specific order. After an order is made, notice must be published and served. Anyone aggrieved may then apply to quash the order, as set out in Schedule 7.

Space Industry Bill [HL]

Lord Moynihan Excerpts

Committee: 3rd sitting (Hansard): House of Lords
Monday 23rd October 2017 Lords Chamber

[Lord Moynihan (Con)]

My Lords, I declare my interest as a member of the Delegated Powers and Regulatory Reform Committee and say that I am speaking personally in this debate and not on behalf of that committee. I support what the noble Lord, Lord McNally, is seeking to achieve in these amendments and the important principle he has raised. I also echo the words of my noble friend Lord Deben as well as the views both of the noble and learned Lord, Lord Judge, and the noble Lord, Lord Lester.

This is an issue which, every Wednesday, I consider in detail during the Select Committee’s proceedings. It is not an issue that is receding—it is growing. In the original draft of this Bill, there was provision in regulations to allow the Secretary of State to do this, and this was consequential on any provision in the Space Industry Bill. It included a Henry VIII power to amend, repeal, or revoke any Act of Parliament made since the beginning of parliamentary history—in other words, completely changing any aspect of preceding law in the context of this Bill.

I recognise that the Government have moved on from where the draft Bill was published to where we are today. I welcome this and thank them. They have taken into account a whole series of concerns that have been expressed very eloquently this afternoon, and in previous debates. Many of the Henry VIII powers have gone. Many of the statutory instruments will now be by affirmative rather than negative resolution. It is all in the right direction to enable Parliament to determine its view on many of the key issues in this Bill.

The Space Industry Bill requires a lot of detail in secondary legislation to achieve the single most important objective—the commercial success of this industry within an appropriately regulated authority. We are focusing on the regulations, but it is all too easy for Government to either make a success or a commercial failure with the industry in terms of the regulations they propose. Because of the importance of the commercial aspect of the Bill in encouraging this industry to come to this country and to provide potentially tens of thousands of jobs and activities in areas of unemployment, what is in that secondary legislation will be critical. That is why I think it is right that the noble Lord, Lord McNally, and others have spoken to this subject in the context of this Bill as well as in principle. If we do not focus now, as we will during this debate, on the nature of the Henry VIII powers and where there will be affirmative or negative resolutions and procedures, we could be putting into law a Bill which actually is of no value, unless the secondary legislation and the negotiations with industry are successful. We will need to come back to this House to look at what is achieved in that context and have our say. That is vital for the success of the objectives of this Bill.

Having said that, I reiterate once more that there has been huge progress as a result of the reports of the Delegated Powers and Regulatory Reform Committee, reports in another place and the fact that the Government have been listening. We should also place that on record, because there are significant changes from the original draft Bill, which have taken into account the importance of Parliament having a say on the secondary legislation that will be coming forward.

[Lord Rosser (Lab)]

We have Amendment 42 in this group, but I will also speak to Amendments 40 and 41 since that will save me having to go through the points all over again when we come to my Amendment 45.

As has been said, the Bill gives extensive delegated powers to the Secretary of State, and thus the Government, without the policy details and parameters of those delegated powers being spelled out in the Bill. The Delegated Powers and Regulatory Reform Committee has described it as a “skeletal Bill”. Consequently, it is difficult to scrutinise it meaningfully. The Government have not published any draft regulations because such regulations are little more than a twinkle in the Government’s eye at present. Formal consultation will not even start on those draft regulations for at least another year. Even then, the Government do not expect the regulations to be laid until the summer after next—nearly two years at the earliest.

Why, then, the necessity for the Bill now? The Government maintain in a letter the Minister sent to me on 6 September that it is needed to give a, “concrete indication to investors that the UK is serious about promoting growth in the space sector and delivering on spaceflight”. So serious and committed, though, are the Government to promoting that growth that the statutory instruments will be laid in nearly two years’ time at the earliest,

“subject to Government priorities and Parliamentary time”,

according to page 5 of the Government’s policy scoping notes. It does not seem to indicate that this is a government priority when there is apparently still some doubt as to whether those statutory instruments will be laid in nearly two years’ time.

The reality is that, with the crucial regulations, a Bill of 71 clauses and approximately 100 delegated powers not being laid at the earliest for another two years and then only subject to Government priorities and parliamentary time, this proposed legislation would not yet see the light of day if the Government still had a legislative programme to enact at present. Since, because of Brexit, they do not, this skeletal Bill, which seeks to avoid proper parliamentary scrutiny on future key details through excessive use of delegated powers, is being brought forward now to try to fill up some of the gaping holes in parliamentary business arising from the Government’s programme of non-legislation in the current Session.

The Government appear to have very little idea what the surfeit of regulations will say, whose interests they will impact on or what existing legislation or even legislation still being enacted or to be enacted in the present Session will be cut across by those regulations. As a result, the Government want Henry VIII powers, giving them the right effectively to bypass Parliament by being able by regulations to make provision that is consequential on any provision made by this Act, with the power being used to,

“amend, repeal or revoke any enactment passed or made before this Act or in the same Session”.

The Government have produced policy scoping notes, which tell us that, “The purpose”, of Clause 66,

“is to give effect to the minor and consequential amendments contained in Schedule 12”.

If that is the case, why have the Government not put that in the Bill? The reason is simple: the purpose of Clause 66, despite the wording of the scoping notes, is not intended by the Government to give effect to the minor and consequential amendments contained in Schedule 12. Instead, it is merely one of the purposes of Clause 66. As even the scoping notes subsequently say,

“it is possible that other changes may be required and clause 66(2) and (3) confer a power for the Secretary of State to make such changes through secondary legislation”.

The notes then go on to say:

“This power is needed to make any further minor and consequential amendments to other enactments passed before the Act or during the same Session that become apparent during the development of detailed secondary legislation”.


What is the definition of “minor and consequential amendment”, wording used in the Bill as the heading for Clause 66? Perhaps there is not one; perhaps it is whatever the Secretary of State deems minor and consequential. The Government do not use the words, if my memory serves me right, but they use the words “minor and consequential amendments” in respect of the powers in subsections (2) to (4). Why is that?

The policy scoping notes, outlining the content of subsections (2) and (3), state:

“Spaceflight is a complex activity and whilst related areas of law have been scrutinised it is impossible to rule out the possibility that some other rule of law might be engaged in the future. Equally, spaceflight or associated activities might need to be brought in scope of other laws, as the possibility of spaceflight activities from the UK would not have been contemplated when they were drafted. Therefore the content of the regulations in relation to subsections (2) and (3) will only become known as the secondary legislation develops and further regulations may also be made in the future as and when they are required”.


Precisely—so how can the Government now say that any amendments relating to other enactments, including repeal or revocation, will be minor and consequential and go no further than that? Would the provisions of Clause 66 enable the Government to amend, repeal or revoke any part of the Space Industry Bill by regulations, once it becomes an Act?

The wording of the scoping notes and, indeed, Clause 66 makes it clear that the power to “amend, repeal or revoke” is permanent and apparently not time-limited. The Government have not proposed a time limit on the use of those powers; not even up to October 2019, when presumably the main regulations, covered by six statutory instruments, will have been made and dealt with by Parliament. We surely cannot have such largely unrestricted powers on the statute book in respect of effective parliamentary scrutiny of the powers under Clause 66(2) and 66(3) for ever and a day, on the basis of a Government statement in their policy scoping notes that because spaceflight is a “complex activity”,

“further regulations may also be made in the future as and when required”,

when these are regulations that may,

“amend, repeal or revoke any enactment passed or made before this Bill or in the same Session”.

In that context, we already know that the amendments in Schedule 12 alone already cover 20 Acts of Parliament, including two terrorism Acts and the recent Modern Slavery Act. Neither does the argument hold that there will be insufficient parliamentary time to deal with matters under Clause 66 by primary legislation where the regulations involved are amending such legislation, and that is leaving aside the argument that the convenience of government and the Executive should not take priority over the role of the legislature in examining, challenging, amending and passing proposed legislation.

The Government propose in 2019 to lay the tranche of regulations enabling them to exercise the 100 or so delegated powers in the Bill, apparently through just six statutory instruments. That suggests there would hardly be a blizzard of Bills for Parliament to consider if the Henry VIII powers in Clause 66, in respect of Acts of Parliament, were not there.

I share the views that have already been expressed that the Government need to have another long, hard look at Clause 66 and what it actually means, as opposed to what they say it means.

--- Later in debate ---

[Lord Moynihan]

My Lords, without repeating the arguments that I made when the noble Baroness, Lady Randerson, introduced a not dissimilar amendment to the Bill, the one vital example that has been touched upon is that in Scotland planning applications are appealed to the Scottish Government. Decisions may have been made by them and yet there is no provision in the Bill not just for consent but for even entering into dialogue with the devolved Assemblies and Parliaments. I say that in opening because it is also important to emphasise that the Bill, being a regulatory framework for commercial activity, will require a significant commitment from all parties.

Noble Lords will be pleased to learn that I was on the bus at Paisley Gilmour Street this morning, en route to Glasgow Airport, and sitting next to Philippa Whitford, the SNP MP for Central Ayrshire. Her knowledge is second to none on the subject of Prestwick’s application; her commitment is total and her enthusiasm is on the record for the success of the project with gold-medal status. I say to the noble Lord, Lord Steel, that if he does not know anything about the Bill he has an immediate invitation from all parties, not least my noble friend Lady Ford—she is my noble friend on the Bill as she lives on the other side of Prestwick, while I am on the far side of it—to come along and see for himself the tremendous opportunity that a successful application for a licence would being to South Ayrshire.

That is important because support for a bid such as this comes not just as a result of commercial arrangements but from the success of the site in gaining grants on the one hand—it would be on the basis of grants from the UK Space Agency—and of ongoing support and investment from the Scottish Government. Consultation and co-operation between devolved Administrations and commercial parties will be vital for the success of the Bill and critical to its successful implementation. For that reason, it is important to go one step further than we would normally go in Bills of this type by recognising and emphasising the importance of co-operation and consultation in the Bill, and by providing the framework to achieve that goal.

[Baroness Sugg (Con)]

My Lords, Amendment 43 raises the important matter of consulting the devolved Administrations of Scotland, Wales and Northern Ireland during the development of the Bill. As the noble Baroness, Lady Randerson, mentioned, we discussed this last week in Committee. As my noble friend Lord Callanan said, the devolved Administrations have confirmed with us that they are content with the provisions of the Bill as drafted and that no legislative consent Motion is required.

Last week, the noble Baroness, Lady Randerson, raised the Bus Services Act 2017. I should like to say a few words about that comparison. Section 17 of that Act inserts new provisions into the Equality Act 2010, including powers to make regulations for the purposes of facilitating travel for disabled persons and for exempting certain vehicles from those regulations. The new sections in the Act require that the Secretary of State must consult Welsh and Scottish Ministers. In this case, we believe that is appropriate, although not strictly necessary, because the new regulation-making power was at the intersection of devolved and reserved matters. The operation of bus services is a devolved matter but equal opportunities is reserved in Scotland and Wales. Therefore, the Equality Act extends to the whole of Great Britain and so do the inserted provisions.

We believe Clause 66 should be treated differently as the whole subject matter of the Bill is reserved. Although some consequential changes to existing legislation required as a result of the Bill have been identified and made under Schedule 12, further changes may be needed, especially in an evolving technology market. As such, the power to make further changes through secondary legislation is necessary to ensure the UK has an effective enabling legislative framework for spaceflight activities.

Since the subject matter of the Bill is reserved, any consequential amendments made to legislation of the devolved legislatures under the Clause 66 power could only be consequential on a reserved matter. This means that any amendments to devolved legislation that could be made under this power would not require the consent of the devolved legislature if they were made by UK primary legislation. If included in Schedule 12, for example, they would not necessitate a legislative consent Motion. It would therefore be inconsistent to require the consent of the devolved legislature just because such amendments are made in regulations instead of in primary legislation.

As we have said, we have consulted extensively with the devolved Administrations on the Bill and I can assure noble Lords that we would consult the devolved Administrations on any consequential amendments that amend, repeal or revoke their legislation both at the policy development stage and on draft regulations themselves. This is in line with long-standing government policy set out in Devolution Guidance Notes 8, 9 and 10. We have heard the arguments from the noble Baroness and from all sides of the House and we will reflect on them. I therefore ask the noble Baroness to withdraw the amendment.

--- Later in debate ---

[Lord Moynihan]

It was very welcome that my noble friend just said to the House that noble Lords would be encouraged to participate in the very early stage of the transparent and collaborative consultation phase before the Government came forward with their draft statutory instruments. It is notoriously difficult for many people, not least noble Lords, to know when that consultation phase begins, as we are not necessarily directly notified about that. Could my noble friend ensure that all those who participated in the debate are made aware of those consultations immediately they become available?

[Lord Callanan]

I will ensure that all noble Lords who participated in these discussions are made aware of the consultations. I will even try to make sure that they reach some parts of Scotland—in which my noble friend seems to have an interest at the moment. With those assurances, I hope that the noble Lord will agree to withdraw the amendment.

Space Industry Bill [HL]

Lord Moynihan Excerpts

Report stage (Hansard): House of Lords
Tuesday 14th November 2017 Lords Chamber

[Lord McNally (LD)]

My Lords, while other noble Lords go to more urgent business, perhaps I could open by welcoming the noble Baroness, Lady Sugg, to her position commanding this particular spaceship and wish her a very fulfilling role in that and in the other positions that I am sure will come.

We have no hesitation in probing further on where our space industry will find itself if Brexit ever occurs. During the passage of the Bill we have had a glimpse of the exciting opportunities ahead for British technology and British industry. The UK space sector is already at the cutting edge of exploring the universe and connecting people to the world around them. It is an industry with a £14 billion turnover, £5 billion in exports, 71% growth since 2010—thanks in no small measure to the priority that the coalition Government gave to the industry under the stewardship of the noble Lord, Lord Willetts—and more than 40,000 direct employees, including 1,400 apprentices. But no industry epitomises the European project more than this industry and its future. Indeed, only yesterday Airbus put out a press release saying that it had won contracts to build two new satellites and that this would be done with work both in Britain and in France.

It is interesting that in an annexe to a letter to the noble Lord, Lord Boswell, in his capacity as chair of this House’s European Union Committee, the European Commission spells out its ambitions by stating:

“The Commission aims to boost demand for space programmes among public and private users, facilitating access to and use of space data, and stimulating the development and use of innovative downstream applications. The Commission intends to take concrete measures (including regulatory ones where justified) to encourage the uptake of space services and data, advance the EU space programmes, and meet new user needs. The Commission will prioritise the following main actions:


Promote the uptake of Copernicus, EGNOS and Galileo solutions in EU policies, where justified and beneficial, including measures introducing the use of Galileo for mobile phones, and critical infrastructure using time synchronisation.


Facilitate the use of Copernicus data and information by strengthening data dissemination and setting up platform services, promoting interfaces with non-space data and services.


Stimulate the development of space applications with the greater involvement of new actors from different domains.


Together with Member States and industry, promote the efficient and demand-driven use of satellite communications to foster ubiquitous connectivity in all Member States.


Remain committed to the stability of the EU space programme and develop these on a user-driven basis to continue delivering state-of-the-art services including exploring alternative business models and taking account of technological progress.


Address emerging needs related, in particular, to climate change/sustainable development and security and defence”.


The purpose of the amendment is simple: to ask the Government whether they have made any assessment of the impact of Brexit on our space industries—and, if so, whether they will publish it. It is clear that the Commission has clear ideas of where it wants to go in terms of space, which is very much in parallel with the discussions that we have had in discussing the Bill. Do the Government intend to remain part of the strategy and programme outlined by the Commission in the letter to the noble Lord, Lord Boswell—and, if so, how? If we are not an integral part of the European space programme, what impact would that have on our viability as a spaceport centre, compared to spaceports located within the European family?

These are questions to which, “It’ll be alright on the night”, is not an answer. We need to know whether the Government’s policy is not a journey into space but simply a leap in the dark. I beg to move.

[Lord Moynihan (Con)]

My Lords, I declared an interest at the beginning of Committee and feel that that it is appropriate to do so again. I live in sight of Prestwick Airport, which has an active interest in the Bill and is an ideal site for the licensing of the first UK spaceport. I notice that my noble friend Lord Strathclyde, who was in his seat at the beginning of this debate, and my noble friend Lord Lang, who remains in his seat, have been very active supporters of the Ayrshire growth strategy and the interests of the airport in being so licensed.

I will focus briefly on paragraph (3) of the amendment: the importance of the Secretary of State laying,

“a report of the assessment before Parliament within one year of this Act passing, and once in each of the five calendar years following”.

Looking at the five items listed under new Clause 1(2). I think that the noble Lord, Lord McNally, would agree that the wider importance of collaboration not just with Europe but internationally is critical to ensure the economic success of the industry. I believe that a spaceport in the UK is a key development to unlock the potential for economic growth related to the space industry for the whole of the UK. As the first spaceport in Europe, it could be the catalyst for a whole new launch industry, and everything that flows from that. We will need to co-operate with Europe on all these areas if we are to achieve that objective. Grants of some £10 million here or there are frankly nothing compared with the huge development costs associated with this industry. I hope that the Government will be serious about getting involved.

At a time when my noble friend the Minister is looking to ensure economic growth during the Brexit period, and when significant infrastructure projects are being funded, surely a significant commitment to the spaceport is a sensible investment, and is small in overall terms. But it would be a major catalyst to ensure that this project happens, as would the ongoing relationship with Europe. I would be grateful if my noble friend could comment on this and recognise the vital importance of a significant, wide opportunity to bring together the vested interests in the economic success of this project—which, in addition to Europe, I would add are: a clear understanding of the range of trade and technical issues with the United States and the acquisition of funding required to deliver the spaceport and spaceflight operations. With that in mind, I hope that the Minister is looking at special-purpose vehicles rather than the straightforward grant process in order for operators to undertake activities and operations from the UK—in other words, to have a wide range of partners, including the Government and the Scottish Government but also private sector operations and organisations. Financial guarantees and an insurance cap will be absolutely essential.

I close by saying that we need a strong level of government support and a strong level of co-operation with Europe to achieve these objectives. This will be a highly competitive global market. I fear that we may have a hollow Bill, which might be a great exemplar of regulatory, legal and structural support—but if we do not address the issue I have raised, it will remain hollow. We as a country should not allow ourselves to miss this opportunity. If we do, we will be left with an Act of Parliament promoting an industry that never takes off.

[Lord Rosser (Lab)]

My Lords, we debated a similar amendment in Committee. The Government said in response that they would work to ensure that we got the best deal with the EU to support strong growth in the sector, but that they did not consider that including provisions related to the EU negotiations would improve the Bill or the support that the Bill, which is about regulation of UK space activities and suborbital activities, would provide to the sector. The Government went on to say that it would be damaging to the UK’s negotiating position with the EU if information on the potential economic consequences of leaving the EU was disclosed.

The difficulty the Government have is that their whole argument for bringing this skeletal Bill forward at this time—one year before discussions on the detailed and extensive secondary legislation start, and nearly two years before that crucial secondary legislation is considered by Parliament—is to end uncertainty for the space industry by showing that the Government intend to provide a structure for UK space activities and suborbital activities. Surely, however, part of the uncertainty at present is the impact our departure from the EU, and the terms on which we depart, will have on the UK space industry, and thus on investment decisions.

If the objective really is to remove uncertainty, as opposed to producing the Bill at this time to fill up the gaps in parliamentary business left by the Government’s almost non-existent legislative programme, why are they not prepared to reduce the uncertainty over the potential impact on the industry of our withdrawal from the EU by providing an assessment of what that impact could be? The amendment calls for a report of the assessment to be laid before Parliament within one year of the Act passing or on the day on which it is passed if that assessment has already been undertaken. Surely such an assessment would also be of real value to all the parties concerned when the discussions start on the crucial regulations that will provide the important details that are sadly missing from the Bill.

Once again, when discussions on the regulations start, why are the Government declining to provide the parties concerned with details of the not insignificant issue of the impact on the space industry and on the Bill as a result of our departure from the EU?

Space Industry Bill [HL]

Lord Moynihan Excerpts

3rd reading (Hansard): House of Lords
Tuesday 28th November 2017 Lords Chamber

[Lord McNally]

My Lords, I join the noble Lord, Lord Rosser, in thanking both the noble Baroness, Lady Sugg, and the noble Lord, Lord Callanan. Although I teased him at the time that he was not missed, it is clear that there was a smooth and orderly passing of the ball to the noble Baroness, Lady Sugg, who has carried out her role with great skill and charm and has made herself and officials available, for which we are grateful. Our Bill team consisted of Sarah Pughe, who has been a great help to me, and my noble friends Lady Randerson and Lord Fox. I have enjoyed working with the noble Lord, Lord Rosser, who brings his eye for detail to these matters, and with the noble Lord, Lord Tunnicliffe, who brought his experiences as an ex-pilot. I will remember two contributions by the noble Lord, Lord Tunnicliffe. He reminded us that a rocket is a controlled explosion, which puts some of the health and safety aspects into perspective. He also said that the first civil aviation Act in 1920 completely underestimated the explosion of air travel that was about to come. Therefore, those who write off this Bill as a bit of futurology may be surprised at how soon some of this comes to pass.

I take pride that the problem of space rubbish has been put firmly in the Bill. It is now part of the Liberal Democrat lexicon, along with clean pavements and other matters. It was a delight to have contributions from the noble Lord, Lord Willetts, who, as a Minister, made such a contribution to giving the space industry of which we are so proud its impetus. We all look forward to the opening of the Moynihan International Spaceport in Scotland, which I am sure will be a festive occasion.

One has to say and lead the worry that Brexit casts a long shadow over this industry. It is important that, if Brexit were to go ahead, the industry be well protected to make progress.

Again I thank the Minister and her team for making this Bill a good example of the House of Lords at work.

[Lord Moynihan (Con)]

My Lords, I add my gratitude and appreciation to the ministerial team, both present and past, who have worked so diligently on this Bill. It was very helpful that the Bill was published in an early form for consultation in both Houses, which has led to a series of improvements. My noble friend the Minister has listened carefully, particularly on the question of secondary legislation, to ensure that as much of that as possible was addressed during the passage of the Bill. Indeed, it will continue to be so in another place.

This is an important Bill which provides the regulatory and legal framework now which will take the industry forward. However, none of us should be under any illusion—while we can provide the regulatory and legal framework—that we do not need to work closely with the private sector to make sure that this is a commercial success. Ultimately, these spaceports will require close co-operation between government and the private sector.

My noble friend has mentioned that I have been an advocate in part for a certain location in Scotland, which I think was her phrase. The House should be under no illusion whatever that that location is Prestwick Airport. It is head and shoulders the best airport to be licensed for spacecraft activities at the earliest possible stage in this country. This has been self-evident throughout our deliberations. All noble Lords will, of course, be welcome to the opening of Prestwick when it is finally licensed as the first spaceport in the United Kingdom.

[Lord Lang of Monkton (Con)]

My Lords, I wonder whether I might be permitted a brief intervention. I do so with some diffidence and an apology to your Lordships for not being present on Second Reading, for diary reasons, although I have sat in on some of the subsequent parts of the Bill.

I too have an interest to declare. Like my noble friend Lord Moynihan, I live quite close to Prestwick Airport—almost as close as he does, but on the other side of the runway. However, I am glad to say that I am on the same side of the argument as him. I strongly endorse all that he said with such clarity, efficiency and thoroughness throughout all the stages of the Bill. Regarding the suitability of Prestwick Airport—I know that we are talking about the Bill, not just Prestwick Airport; I had better say first that it was a good Bill and is now a better Bill as a result of the consideration it has had—I cannot help but support its case. It is a fine, well-established airport of long standing. It was a base for the stratocruisers that left London, on their way to New York; they stopped there to refuel, both outwards and inwards. From there, it moved on to another fine record, with the location of Scottish Aviation. It now has 2,300 aerospace jobs nearby. It is close to the sea and open at all hours. Really, it is underused, but it has a basic infrastructure that could receive all the elaborate infrastructure needed for a space base.

There is a slightly broader point that is briefly worth making. The fact remains that the Scottish economy is trailing that of the rest of the United Kingdom, for reasons that I will not indulge in, for political reasons. In Scotland, the Ayrshire economy is also suffering to a considerable degree. It is one of the most socially deprived areas in Scotland, with one in five people living in a deprived area—rather more than in the rest of Scotland. Unemployment is at nearly 8% in Ayrshire, compared to 5% in the rest of Scotland. There is a strong case for the triggering of a huge potential economic payback from the circumstances in which the spaceport would be located.

The Government made a commitment in their manifesto at the last election to invest in Scotland. This is an opportunity to do so.