Space Industry Bill [HL]

Baroness Sugg Excerpts

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

[Baroness Neville-Rolfe (Con)]

My Lords, I am sorry that I was unable to speak at Second Reading on this important Bill, but I have had a helpful exchange with the Minister on the powers in it and his plans for consultation in future.

Following on from the comments made by my noble friend Lord Moynihan, I have a question and a comment. First, he argued for parliamentary procedure in relation to guidance. I would find it helpful to have a little more detail as to what sort of guidance is envisaged, so that we can look critically at whether any parliamentary procedure is appropriate. Secondly, I share his concern at the double barrel—having an affirmative resolution for the first regulation and a negative resolution for subsequent provisions—because it could be open to abuse and give too much power to the Executive on important matters. I would welcome further study of this provision, as has been suggested, before Report.

I am worried about the powers in the round—in this Bill and the Data Protection Bill—and I think that delegated legislative provisions will also become an issue when we come to the plethora of Brexit Bills later in the Session. It would be very useful, in this less contentious Bill, to make sure that we have the right provisions.

[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.

Space Industry Bill [HL]

Baroness Sugg Excerpts

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

[Lord Tunnicliffe]

My Lords, this is an interesting point. I hope that the Minister will take it away and give it some consideration. I think we all agree that the whole issue of liability and insurance is important to get right so that the industry does not fail due to crippling cost.

[Baroness Sugg (Con)]

My Lords, I thank my noble friend Lord Willetts, who is not in his place, for his comments in Monday’s debate about the need for flexibility for licensing constellations and the benefits of small satellites. I hope also to address the concerns of the noble Lord, Lord McNally, from that debate about the length of the licensing process and the insurance cost for smaller satellites—and, indeed, nano satellites.

This amendment gives me the chance to explain the work that the UK Space Agency is already doing to improve the current licensing regime under the Outer Space Act. This work is of course relevant to the Bill as, when it comes into force, it will regulate the operation of a satellite in orbit that is carried out from the UK.

The amendment moved by the noble Lord, Lord Fox, would make it mandatory that, within 12 months of Royal Assent, the Secretary of State must issue a consultation. This consultation would explore a traffic light system to license the operation of small and nano satellites, with the potential to waive the in-orbit insurance requirement under certain circumstances for some small satellites fast-tracked under that system. Finally, it would also explore how insurance requirements could be aggregated for constellations of satellites.

The UK Space Agency already has this work in hand, and I shall take this opportunity to set out what it is doing in more detail—at some length, I fear. The agency conducted a review to evaluate how the UK’s regulatory approach might be tailored for the in-orbit operation of small satellite systems. The outcome of the review was a series of recommendations, and comments on these recommendations were invited from industry.

Feedback was also sought at the regulatory advisory group, which is a meeting co-chaired by the UK Space Agency with industry, where the small satellite community is represented. This review allowed the agency to develop the traffic light system which is currently being trialled ahead of full implementation in the near future. This system gives potential applicants of standard, small satellite operations an idea of the likely outcome of their licence application in advance of lodging a full application. It is a fairly simple system. A green rating will be given where a mission is likely to get a licence; an amber rating signals that a mission is likely to get a licence with some modifications or clarifications; and a red rating means that the potential applicant is unlikely to receive a licence.

For recurrent applications for very similar missions by the same operator, the questions an applicant will be required to answer will be streamlined. Where an applicant is engaging in a repeat mission, some answers will be reused by UKSA in order to minimise the administrative overhead to operators. We expect this to speed up the licensing process for these types of missions.

At this point I shall say a few words about the way in which constellations are licensed. A constellation can be launched under a single launch licence if all the satellites can go on a single launch vehicle. However, the activity of operating a satellite also needs to be licensed as the operator needs to be licensed to carry out the in-orbit operation of each satellite. This is to ensure that the regulator has effective regulatory oversight of each satellite within the constellation. That allows the regulator to direct the operator to take action in relation to each satellite without affecting any of the other satellites under the control of that operator. For example, if 100 satellites are to be launched over four launches, an operator would need to submit only four applications and will result in a licence being issued for each of those 100 satellites.

In addition to the satellite system, the UK Space Agency is considering whether, for certain green-rated missions, the insurance requirement can be reduced or even removed. This assessment will be dependent on a number of risk factors, including the satellites’ operating altitude and whether they are equipped with propulsion systems that allow them to avoid potential collisions with other space objects. Furthermore, the agency is already evaluating policy options to tailor insurance requirements for satellite fleets or constellations, which we discussed in the debate on Clause 3. The feedback from industry is that obtaining a set level of insurance cover for every satellite in a large constellation is prohibitively expensive. Such a requirement could also quickly exceed the capacity of the space insurance market.

We understand that we need a solution that is available and affordable but still offers government and the taxpayer protection by providing sufficient funds in the event of a claim. UKSA is currently developing a policy model which is likely to require operators of multiple satellites to hold a given level of insurance coverage for the damage caused to third parties through collisions—in other words insurance per event rather than per satellite.

Key stakeholders will be invited to comment on the Government’s proposed new policy model, which has been developed in response to the space sector’s innovative approach towards new business models and the development of smaller and more capable satellites, including the nano satellite mentioned by the noble Lord. These matters will be discussed at a workshop on the traffic light system and the insurance requirements for small satellites, constellations and fleets, which is expected to take place by the end of this financial year.

As work on both the traffic light regime for small satellites and nano satellites and insurance requirements for constellations and fleets is already well in hand and likely to be finalised within 12 months of the Bill receiving Royal Assent, this amendment is not necessary. While we appreciate the content of the amendment, the agency is already engaging with the industry and a mandatory consultation in this area would be a duplication of work. I therefore ask the noble Lord to withdraw Amendment 38.

[Lord Fox]

I thank the noble Baroness for her comprehensive answer, and I will be studying it closely in Hansard as it is hard to take in on the fly. If she could write to me about the basic criteria used to flag green, red and amber, that would also be helpful, to give an idea of the parameters being used to make those judgments. On that basis, I beg leave to withdraw the amendment.

Space Industry Bill [HL]

Baroness Sugg Excerpts

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

[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.

[Baroness Randerson]

I thank the Minister for her comments. I am grateful for the support across the House for this amendment. We have two forces at work in this clause. One is the Government’s tendency to seize as much power for themselves as possible—that is not unusual in Governments—but it is fatally linked with the desire of the Government to pad out their legislative programme with a series of apparently uncontroversial good ideas. The Bill has support across the House, but we are filling in time before the Brexit blunderbuss arrives. It worries me that we have not been able to see the regulations so we cannot see what the Minister is talking about and it is difficult to imagine exactly how that situation could apply in practice.

Nevertheless, I draw the Government’s attention to the Constitution Committee’s comments. I might be misreading the Bill but I very much doubt that the Constitution Committee could possibly be misreading the Bill, and if it is worried about it, there are serious grounds to be worried about it. The fact that the devolved Governments have not yet drawn attention to it does not necessarily mean that it will not cause a problem in the end. I have tried to explain that planning issues will be at the crux of the matter. It is simply not good enough to rely on the Sewel convention in this. In fact, this undermines the Sewel convention, which states that the Government will not normally legislate on behalf of the devolved Administrations.

When we have discussed in the past what “normally” means, people have imagined that there might be a state of national emergency, where there might be a need for haste that would involve instant legislation. However, this is not the kind of thing that you would think would be an exception to “normally”. I will take this away and read the record in Hansard, but I very much hope that the Government will take this away and look at it carefully. What would the harm be in including the usual provision about consulting the devolved Governments and legislatures? I see no harm in it. We are not going to be setting up spaceports as a matter of urgent emergency—it is something that will take months and years. There would be no delay involved in consulting them, and there is a great deal of good will to be had in committing to consult them. Having said that, I am happy to withdraw the amendment.

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[Lord Balfe (Con)]

My Lords, I declare an interest as vice-president of the British Airline Pilots Association and president of the British Dietetic Association because the point I want to make is a trade union one. Amendment 51 contains an impressive list of bodies. I am sure the Minister will point out that there is no need to consult all the people listed on all the regulations that may be made, and I hope he will then say that it will of course be his policy to consult any relevant bodies to get their opinions before any regulations are made. I would like the Minister to say as part of his reply that that will also include the appropriate trade unions that represent people who will be affected. It is important that the Minister consult all the interested parties, and a specific mention of the importance of consulting the appropriate trade unions would be welcome.

[Baroness Sugg]

My Lords, it is of course important that regulations are made within the scope of the delegated powers in the Bill and that they are subject to appropriate parliamentary scrutiny. We have thought very carefully about the delegated powers and the oversight of such powers in the Bill and, as my noble friend Lord Callanan mentioned, we have also taken on board a number of recommendations made by the Delegated Powers and Regulatory Reform Committee. However, I note that some of the amendments we are debating here relate to recommendations by the committee that the Government have not accepted, or indeed have been raised by the Select Committee on the Constitution.

Amendment 44 relates to the broad regulation-making power for carrying a Bill into effect and seeks to remove it. I understand the intention behind the amendment and the concern that it may undercut judicial review in the event that the Secretary of State exceeds his or her delegated authority. I assure noble Lords that the Government do not believe there is any need for concern in this case. The scope in Clause 1(1) provides a limitation on the exercise of powers by the Secretary of State in making regulations. That will ensure that only regulations relating to the activities that are the subject matter of the Bill can be made by Ministers. If the Secretary of State were to exceed his or her delegated authority in making regulations under the clause, that ultra vires exercise of powers would be subject to judicial review.

In Committee last week, some concerns were raised about what “associated activities” were contemplated within the scope. These would cover only matters, such as the regulation of spaceports and the provision of range control services, that have a direct link to spaceflight activities. The purpose of the Bill covering associated activities is to provide for activities to be regulated only where there is no current applicable regulation or oversight, and where it is appropriate and necessary to regulate those activities.

The next set of amendments deal with changing the proposed initially affirmative and subsequently negative procedures to affirmative on all occasions. Noble Lords raised their concerns about this approach during our debate last week. I understand that this procedure could possibly be open to abuse. Noble Lords have argued that the Government may make the initial instruments skeletal and leave the detail to later instruments, thereby denying Parliament the opportunity to thoroughly examine the content of the instruments. I reassure noble Lords that this will not be the case. The Government are well aware that if that were to happen, the Joint Committee on Statutory Instruments would be likely to report it as an unexpected use of powers.

The development of the first sets of regulation—including those on safety and security—will be subject to a rigorous stakeholder engagement process over the coming months. This will include a call for evidence that will give everyone, including noble Lords, the opportunity to input into the development of the instruments. The Government will then issue a full and wide-ranging consultation on each of the initial draft statutory instruments prior to their being laid. I assure noble Lords that if there were any material change to the original instruments, there would be further consultation. In light of these safeguards, we believe that the current procedure set out in the Bill provides appropriate and proportionate parliamentary oversight.

Moving on to Amendment 51, it is of course important that interested persons are made aware of proposed legislative changes which may affect them, no matter how minor the change. Although we welcome the spirit of the amendment, the Government believe that creating a statutory obligation to formally consult all listed bodies and persons on any proposed amendment is unnecessary. It is not appropriate to do this for all changes made through regulations—for example where minor, incidental, transitional or saving provisions are required.

However, if the intent behind the noble Lord’s amendment is to ensure that the Secretary of State is able to demonstrate that he is seeking the views of the parties that will be impacted by the changes, we can absolutely assure noble Lords that that will be the case. In line with existing practice under better regulation principles, the Government will continue to engage with regulators and other interested persons as appropriate, including the devolved Administrations, when contemplating making legislation affecting them. This will involve full consultation with a wide range of stakeholders where substantive changes to regulations that affect their interests are proposed.

My noble friend Lord Balfe mentioned trade unions. As I said, we intend to consult widely and publicly, which will of course include relevant trade unions. I hope that I have responded to noble Lords’ concerns. As I said on the previous group of amendments, we are listening to the concern raised from all parts of the House and will take it back and reflect ahead of Report, but I ask the noble Lord to withdraw his amendment.

[Lord Fox]

My Lords, I thank the Minister for her answers. Some of them may have been helpful—I will review them, probably with a lawyer sitting on my shoulder to help me—but not completely so, I suggest. The noble and learned Lord, Lord Judge, has described the web of seemingly self-reinforcing executive powers, supported by another Henry VIII Act, weaving their way throughout the Bill. We will need to see what emerges: what the Government think that they have to leave in and what—we hope, having had this debate—they believe it would be more sensible to take out. We need to see that in full.

On the substance of Amendment 51, the point made by the noble Lord, Lord Moynihan, was that an awful lot of parties have to be in line for this to work. In a sense, this has to be more co-operative than many other ventures that this House debates, and to be obviously co-operative and mandate the process in the Bill would be a positive sign to all the parties that have to say yes before it can be a success. I again ask the Minister to reconsider but, with that in mind, I beg leave to withdraw the amendment.

Space Industry Bill [HL]

Baroness Sugg Excerpts

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

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

My Lords, the UK space industry is a global success story. I am grateful for the productive debate we had in Committee, which will ensure the Bill puts this country at the forefront of new space services.

The Government continue to invest in the success of the UK space sector—for example, we recently invested more than £100 million in new satellite test facilities at Harwell, and manufacture and test facilities for rocket engines at Westcott in Buckinghamshire. As we discussed, another measure of our support to the UK space sector will be through our negotiations with the EU on future collaboration on the EU space programmes. The UK has played a major part in developing the main EU space programmes, Galileo and Copernicus, which have supported the rapid growth of the UK space sector and contributed directly to our prosperity and security. We are working to ensure we get the best deal with the EU to support strong growth in the sector. Last month, the Government published a science and innovation discussion paper and an external security discussion paper. Both set out the Government’s wish to discuss options for future arrangements in the EU space programmes.

My noble friend Lord Moynihan asked about continued support for the space industry. The European Space Agency programmes will continue to play an important role in delivering the UK national space objectives and, in December last year, the UK negotiated an investment of more than €1.4 billion over the next five years in ESA space initiatives. This sustained investment, alongside our industrial strategy, will ensure that we build on the strengths of the UK’s growing space industry. The UK’s membership of the European Space Agency will not be affected by the UK leaving the EU.

The Government hold a mix of qualitative and quantitative analysis of the impact of leaving the EU on sectors of the UK economy, including the UK’s space industry. This is contained in a range of documents developed at different times since the referendum. The analysis in this area is constantly evolving and being updated based on our regular discussions with industry and our negotiations with the EU. As the Secretary of State for Exiting the EU said in his Written Statement on 7 November, the intention is to provide this information to the Exiting the EU Select Committee as soon as possible, and within three weeks of the date of that Statement.

My noble friend Lord Callanan has confirmed to the House that we anticipate sharing the same information on the same basis with the Lords EU Committee as with the House of Commons Select Committee, subject to our being able to agree the terms of that disclosure. Given that this evidence will be published in the coming weeks, I ask the noble Lord to withdraw Amendment 1.

[Lord McNally]

My Lords, I thank the Minister for that reply. We look forward to this information being gathered together into one clear document, as at the moment it is scattered among many documents. I am sure that not only the EU Committee but the whole House will read it with great interest.

This is not a hostile amendment but one that genuinely searches after facts. A generation of us—not including the Minister—remember our last great adventure into the space industry with Blue Streak and Black Arrow over 40 years ago. I also exclude my noble friend on these Benches from that. I had better not go any further: I remember Blue Streak and Black Arrow and finding out that this was too expensive a game for us to go it alone. As we take forward what is still a very exciting industry—the Minister herself announced a number of new facets—we need to ensure that we are at its cutting edge and do not miss this chance. In that spirit, I beg leave to withdraw the amendment.

--- Later in debate ---

[Baroness Randerson (LD)]

My Lords, I was pleased to be able to add my name to Amendment 2. Before I speak to it, I welcome the Government’s Amendment 9, because it adds to Schedule 1 both noise and emissions as factors that should be taken into account when granting a licence. That is a step forward. However, it is still a narrow interpretation of the problems that I anticipate local communities and the slightly wider area might encounter. If these spaceports are a success—across the House we very much hope that they will be—they will have an impact on local communities and on the environment that those communities currently enjoy. These are by definition remote and peaceful places at this moment, and they will be significantly less remote and less peaceful after the development of a spaceport.

Other potential issues include the following. First, there is the issue of visual amenity in what could well be beautiful areas. These will be large installations and will not easily blend into the landscape. Secondly, there is the impact on local roads. I do not know the situation in Scotland, but I know that the roads in Wales are hardly even small motorways in that area. We are talking about moving large, wide loads across the country and along roads, often moving them slowly on to the site, and that will be disruptive. I remember how the noble Lord, Lord Tunnicliffe, in a memorable phrase, described a rocket as a controlled explosion. There is also potentially air pollution, as well as noise pollution.

Finally, I point to the basics of many of the issues and problems arising from planning applications for large or even small developments. Clearing a site to establish a spaceport could well impact on existing wildlife, and the ongoing use of the spaceport could, for example, disturb nesting birds.

I do not want to be a doom-monger but we need to be realistic. The enthusiasm of the Welsh and Scottish Governments may not be shared by local people. Any of us here who have been local councillors— I was a councillor for 17 years, albeit a long time ago—know that what I have outlined are routine planning issues that, appropriately, get in the way of wholesale development that does not take into consideration the amenities of local people and the environment beyond. Spaceports should not be exempt from the rules, and that needs to be flagged in this Bill.

[Baroness Sugg]

My Lords, I recognise noble Lords’ concerns that there are currently no specific provisions in the Bill regarding the environmental impacts of spaceports and spaceflight activities on local communities, particularly in relation to noise and emissions. However, Clause 2 requires the regulator to take into account the environmental objectives set by the Government. I know that some noble Lords have raised concerns that future objectives cannot be predicted—indeed, the noble Lord, Lord Rosser, raised that again today—but the inclusion of that requirement was intended to promote environmental protection, as the regulator will have to take account of existing guidance, such as Defra’s air quality plan.

As noble Lords will be aware, there already exists a comprehensive body of environmental and planning legislation that spaceports and spaceflight operators will need to comply with independently of the requirements under the Bill. For example, an environmental impact assessment may be required for airport-related development under Schedule 2 to the environmental impact assessment regulations where it is,

“likely to have significant effects on the environment by virtue of factors such as its nature, size or location”.

In such cases, the local planning authority will be obliged to scrutinise the environmental impact, taking into account the concerns of local communities such as the noble Baroness, Lady Randerson, has just raised. An environmental assessment will be required as part of any airspace changes.

However, there might be circumstances where a particular activity could be carried out without the need for an environmental impact assessment under planning and airspace rules. The purpose of Amendment 9 is to put on the face of the Bill a licence condition that the regulator could impose—for example, where an environmental impact or other assessment has not already been undertaken.

I appreciate that this amendment does not impose a mandatory requirement for the spaceport or spaceflight operator to make an environmental assessment; nor does it require the regulator to take into account environmental and local impacts, as Amendment 2 seeks to do. However, it makes very clear the Government’s intention that some form of assessment of noise and emissions should take place, and it does this without creating requirements in the Bill that may duplicate existing requirements to carry out environmental assessments under other enactments.

I hope that I have reassured noble Lords of the Government’s intention of ensuring that environmental impacts are assessed, either as part of the planning process or as a condition of a licence under the Bill. However, I am aware that your Lordships do not think that this goes far enough, as they have made clear today—the noble Baroness, Lady Randerson, made a very fair point about roads and road access. Therefore, I assure the House that the Government are considering introducing in the other place a further amendment that will require spaceport and spaceflight applicants to submit a noise and emissions assessment, and that regulators take this into account when deciding the licence application. I therefore ask the noble Lord to withdraw his amendment.

[Lord Rosser]

I thank the Minister for her reply but perhaps I may inquire a bit further. Government Amendment 9 provides that a licence under this legislation can include a condition that an assessment must be done of the impact that noise and emissions caused by the activities being licensed will have on local communities. If that amendment is agreed—we are certainly happy with it—it will then be included in the Bill when it goes to the Commons. I am not entirely clear from what the Minister has said what the Government are still considering as an amendment they might bring forward in the Commons. Will there be an amendment referring to the wider environmental duty and the impact on local communities, or is that not what the Minister was saying? I am not clear what the Government are considering bringing forward in the Commons.

[Baroness Sugg]

The amendment we are considering taking forward is requiring spaceports and applicants to carry out the environmental assessment, which will of course take into account the effect on the local community, and requiring regulators to take that into account.

[Lord Rosser]

Perhaps I did not understand the matter properly first time round, but in the light of that clarification from the Minister, I beg leave to withdraw the amendment.

--- Later in debate ---

Moved by

[Baroness Sugg]

3: Clause 2, page 2, line 27, at end insert—
“( ) any space debris mitigation guidelines issued by an international organisation in which the government of the United Kingdom is represented.”

[Baroness Sugg]

My Lords, Clause 2 sets out the overarching duties of the regulator in carrying out its functions under the Bill. Subsection (1) establishes the duty of securing public safety as the regulator’s priority, while subsection (2) lists the other factors that the regulator must take into account while carrying out its functions. There is no hierarchy in the matters listed in subsection (2).

Amendments 3 and 8 to subsection (2) and Schedule 1 are in response to the helpful debate on space debris on the first day of Committee. In relation to an amendment tabled to Clause 12, the noble Lord, Lord McNally, highlighted the very real risks and challenges posed by space debris. The noble Baroness, Lady Randerson, recognised the work of the Inter-Agency Space Debris Coordination Committee—the IADC—of which the UK is a member, which has issued guidelines in this area. My noble friend Lord Willetts acknowledged the UK’s expertise in this area.

I would like to take this opportunity to reiterate the points made by my noble friend Lord Callanan during this debate. The UK Space Agency already considers matters relating to space debris and the guidelines issued by the IADC, and is an active member in carrying out its regulatory function under the Outer Space Act 1986. Through the IADC, the UK Government remain fully committed to implementing and influencing best practice to protect the space environment. Furthermore, the Bill enables regulators to include conditions within licences that relate to the disposal of a satellite at the end of its operational life and compliance with debris mitigation guidelines.

In the light of the Government’s commitment to the IADC and following further reflection on the points raised in Committee, we are tabling this amendment, which would place a requirement in the Bill for a regulator to consider space debris mitigation guidelines when exercising its functions. These guidelines are issued by an international organisation to which the UK is represented. This wording will cover international bodies, including the IADC, and the International Organisation for Standardization’s orbital debris co-ordination working group, as mentioned by the noble Baroness, Lady Randerson, in Committee. I beg to move Amendment 3.

[Lord Rosser]

The noble Lord, Lord McNally, spoke eloquently in Committee on the issue of his party and pavement politics, before referring to his concerns about space debris and the need to bring it back safely—although he did not say whether he was looking for weekly or fortnightly collections. If the noble Lord, Lord McNally, considers that the Government’s amendments address the legitimate concerns he raised, they will of course have our support.

[Lord McNally]

My Lords, I welcome the amendments. They are a first step in the right direction. Although I may have rather light-heartedly introduced the issue at the last stage, we have only to look at what we have done to the sea and to Everest to see how easily important places can be polluted. For that reason, it is important that this is on the agenda.

As was indicated in our last debate, work is being done about this problem by British technology companies. Although it may be the less glamorous end of space travel, clearing up space debris may well be another cutting-edge area that we can exploit as this expands.

The IADC is a representative body. Its membership includes all the big players—Russia, the United States, China, ourselves, the European Space Agency, India, Italy, France, Japan, Ukraine. It is the right body to take these matters forward and the amendment is welcome.

[Baroness Sugg]

I thank noble Lords for their support for the amendment, particularly the noble Lord, Lord McNally, who raised this issue in Committee and has put his name to the amendment.

Amendment 3 agreed.

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[Lord Fox (LD)]

My Lords, names of Members from our Benches are not attached to these amendments, but we would like to associate ourselves with all four of them. I want to say a few words about safety because it is obviously not in the industry’s interest to operate unsafely; in fact, quite the opposite. It would be a way of hastening its end. So it is not that the industry will set out to operate in a cavalier manner, and that is not what these amendments imply. From my experience of working in industries that have an inherent risk but are not necessarily as risky as the space industry, the greater prominence that safety is given in their operations at every level right up to senior management and in terms of the supervision of organisations, the more likely it is that they will be inherently safe. You can rely on processes and people on the ground to operate safely because of course it is in their interests to do so, but it is always more successful when safety is elevated to the highest possible level. It is with that in mind that we support these amendments.

[Baroness Sugg]

I thank noble Lords for their comments on Clauses 9 and 10, given their central importance to the Bill. In consultation with the Health and Safety Executive, I wrote to the noble Lord, Lord Tunnicliffe, to address the points he raised on the first day in Committee. Following that letter, I would like to take the opportunity to explain further the role of the Health and Safety Executive in regulating space flight activities under the Space Industry Bill.

Clause 9 imposes one of the key requirements of the Bill that a regulator cannot grant a licence for spaceflight activities unless satisfied that the operator has carried out an assessment of the risks to the health and safety of persons taking part in spaceflight activities and that the operator has taken steps to ensure that risks to all other persons is as low as reasonably practicable. Furthermore, Clause 9(4)(b) means that even after all steps have been taken to reduce risk to as low as is reasonably practicable, spaceflight will not be allowed where the risk to public health and safety is unacceptable. The Bill places the onus on the regulator to be satisfied that risks are as low as reasonably practicable and that they are acceptable, but the operator must assess the risks and manage them.

The provisions in the Bill have been developed in full collaboration with the Health and Safety Executive to ensure that they align with existing UK health and safety principles on the management of risks. I should like to recap that under this Bill, the Secretary of State is the default spaceflight regulatory authority. The UK Space Agency will perform regulatory functions on the Secretary of State’s behalf, including regulating the procurement of satellite launches from other countries as well as satellite operations from the UK. The UK Space Agency will also regulate all vertically launched rockets covered under this Bill and all space activities. Finally, the UK Space Agency will license and regulate spaceports capable of vertical launch and range control services for launch to orbit.

It is our intention to use Clause 15 to appoint the Civil Aviation Authority as a spaceflight regulator for suborbital spaceplanes and spaceports capable of horizontal launch. The Government’s approach will enable us to build on the existing experience and expertise of the two organisations. I am confident that these bodies will have the capability to evaluate risk assessments and assess whether the risks have been reduced to as low as is reasonably practicable and whether they are acceptable. In this, the bodies will be assisted by the Health and Safety Executive.

I should clarify that we do not intend to appoint the Health and Safety Executive as a regulator under the Bill. This is because it is not a specialist transport, aviation or space regulator and has no experience or expertise in flight safety, space launches or air navigation. However, it is already a regulator for health and safety at work under current health and safety legislation. Accordingly, it is designated as a qualifying health and safety authority under Clause 20 and may be called upon to provide specified advice or assistance in connection with the regulator’s functions relating to safety.

Independently of the Bill, the Health and Safety at Work, etc Act 1974 and associated legislation will apply to spaceports and spaceflight activities as they would to any other workplace, while the Health and Safety Executive would retain lead responsibility for the regulation of safety on the ground. New major hazard sites such as spaceports would also require planning consent from the appropriate planning authority, and the Health and Safety Executive would act as a statutory consultee to the appropriate planning authorities.

However, the UK Space Agency or Civil Aviation Authority will retain responsibility for licensing the spaceport. This aligns with the approach under the Civil Aviation Act 1982 and the Air Navigation Order 2016. Under these provisions, the Civil Aviation Authority has overall responsibility for aviation safety. The divisions of responsibility between the CAA and the Health and Safety Executive are set out in a memorandum of understanding. We anticipate that the spaceflight regulators and the Health and Safety Executive will similarly set out the division of responsibilities.

I emphasise that although it is our intention that there be two spaceflight regulators, it is vital for accountability and safety that for any particular licence application under the Bill, there should be a single regulator responsible for deciding that application. Noble Lords raised that issue today and in Committee. In making its licensing decision, the UK Space Agency may consult the CAA—and vice versa—but that decision will rest with one body in each case.

Giving the Health and Safety Executive an additional specific role—certifying the adequacy of the safety arrangements relating to persons not taking part in spaceflight activities or for public safety in spaceports—would confuse roles and responsibilities for licensing spaceflight and associated activities. The Health and Safety Executive does not carry out this function of certification under any other legislation and does not wish to do so under this one.

I hope I have reassured noble Lords that our proposed approach is consistent with existing health and safety practice and reflects the view of the Health and Safety Executive. I acknowledge the sad history of space activity, as highlighted by the noble Lord, Lord Tunnicliffe; I assure him that safety is at the heart of the Bill. I ask the noble Lord to withdraw his amendment.

--- Later in debate ---

Moved by

[Baroness Sugg]

8: Schedule 1, page 46, line 19, leave out “issued by an international organisation”

--- Later in debate ---

Moved by

[Baroness Sugg]

10: Clause 14, page 10, line 16, at end insert—
“( ) The regulator may consent to a licence being transferred to a person (“the transferee”) only if satisfied that—(a) consenting to the transfer—(i) will not impair the national security of the United Kingdom;(ii) is consistent with the international obligations of the United Kingdom;(iii) is not contrary to the national interest;(b) the transferee has the financial and technical resources to do the things authorised by the licence, and is otherwise a fit and proper person to do them;(c) the persons who are expected to do, on the transferee’s behalf, any of the things authorised by the licence are fit and proper persons to do them.”

--- Later in debate ---

[Baroness Sugg]

My Lords, Clause 14 enables a licensee to transfer their licence to another party, provided the regulator has given written consent. The provision enables a new body or company to take over the licence without starting a licence application completely afresh. In Committee the noble Lords, Lord Rosser and Lord Tunnicliffe, tabled an amendment seeking to clarify that the eligibility provisions in Clause 8(3) would also apply to the person to whom a licence is being transferred under Clause 14.

It is helpful to briefly recap what Clause 8 requires before a licence can be granted. Under subsection (2), the regulator must be satisfied that granting a licence will not impair national security, is consistent with the UK’s international obligations and would not be contrary to our national interest. Subsection (3) then sets certain eligibility criteria for licence holders, with which the regulator must be satisfied before granting a licence. The criteria ensure that a licence holder has the necessary financial and technical resources to do the things authorised by the licence and that both the licence holder and employees and agents acting on the licence holder’s behalf are fit and proper persons to do the things authorised by the licence.

It has always been the Government’s intention that the regulator will need to be satisfied that the tests set out in Clauses 8(2) and 8(3) would apply to the transfer of a licence under Clause 14, as it does to the initial grant of a licence. The amendment makes the Government’s intentions clear in the Bill and puts this beyond any doubt.

I thank noble Lords for their original amendment. I hope they will welcome the fact that we have reflected and that the amendment goes further than previously proposed. I beg to move.

[Lord Rosser]

I thank the Minister for the Government’s Amendment 10, which, as she said, addresses an issue we raised in Committee and will put in the Bill that the regulator may consent to a licence being transferred only if the transfer and the person to whom it is being transferred meet the same tests as laid out for the granting of the licence in Clause 8. In Committee I asked whether the consent of the Secretary of State would also be required for a licence to be transferred, bearing in mind that under Clause 8(4) the consent of the Secretary of State is required for the granting of a licence. The noble Lord, Lord Callanan, the then Minister, said he would reflect on that and come back to me. He may have done so, but if he has I am afraid I have forgotten what he said. Is the Minister able to say now or later what the answer is to that question?

[Baroness Sugg]

Both the regulator and the Secretary of State would need to be satisfied that the transfer of a licence was appropriate.

[Lord McNally]

My Lords, this is a good example of the Lords’ way of doing things in action. The Labour Front Bench noticed what they thought was a weakness; the Minister said he would go away and reflect. The Government have reflected and come back with a solution that makes the Bill better.

--- Later in debate ---

[Lord Fox]

The nature of this work, certainly in the early stages, could be quite lumpy. In earlier discussions —at Second Reading, I think—the Minister talked about perhaps only 12 launches a year. There could be moments of great intensity of activity followed by no activity and therefore no income. How will the regulator maintain this level of expertise through what could be feast and famine during that process?

[Baroness Sugg]

My Lords, I thank the noble Baroness, Lady Randerson, for her comments on Clause 15 and the role of the CAA. As we know, the aviation sector is facing many challenges at the moment, particularly with the introduction of new technologies such as drones and spaceflight, but I can reassure noble Lords that the CAA is in strong position to deal with those challenges.

As the noble Baroness has told us, the chief executive of the CAA has written to her confirming this and, as he explained in the letter, the CAA already has already established a dedicated space team. That team started in 2012 and since then has grown in size and experience, and has worked closely to develop the Space Industry Bill. The team is building on its aviation expertise in areas such as airports and airspace to develop the capability to regulate spaceports and suborbital activities.

The noble Baroness asked what international conversations the CAA might have had. It has established good working relationships with other countries. The UK Space Agency has been building on its relationship with the United States Federal Aviation Administration, drawing on the United States’ vast experience in overseeing flight operations.

The department provides sufficient resource to ensure sufficient delivery in this area. The moneys will vary depending on the nature of the work at different times— for example, on air space consideration or international comparisons—so I am not able to give a figure today. The noble Baroness asked about funding. The Civil Aviation Authority will eventually be able to recover its costs directly from industry. Until that point, the Department for Transport will continue to provide funding.

We are confident that the CAA will have the necessary resources and the appropriate expertise to regulate the new sector. I hope that the letter and my words give the noble Baroness the necessary reassurance regarding the capacity of the CAA to regulate the activities alongside its existing aviation functions. I ask the noble Baroness to withdraw Amendment 11.

[Baroness Randerson]

My Lords, on the basis that the CAA appears to be satisfied with its situation, I will, of course, not pursue this any further at this stage, but I would be grateful if the Minister looked again at the very specific questions I asked and, one way or another, passed those small details to me. I am interested in understanding a little better the process that will be involved. With that, I am happy to withdraw the amendment.

--- Later in debate ---

Moved by

[Baroness Sugg]

12: Schedule 5, page 58, line 22, leave out “an enactment creating” and insert “a provision that creates”

[Baroness Sugg]

My Lords, the amendments in this group are minor and technical amendments which are required to address drafting issues in the Bill.

First, I turn to Amendments 12, 13, 29, 30 and 38. Currently, the definition of “enactment” in Clause 68 provides that it includes an enactment contained in Northern Ireland legislation. The Interpretation Act 1978 provides in Section 5 and Schedule 1 that unless the contrary intention appears, the term “enactment” used in legislation does not include Acts of the Scottish Parliament or legislation made under those Acts. As it is the policy intention that references to “enactment” in the Bill should cover legislation made throughout the United Kingdom, we propose to amend the clause so that the term “enactment”, where used, refers to secondary legislation and Scottish and Welsh legislation, as well as retaining the reference to Northern Ireland. I reassure noble Lords that official conversations have taken place with Scotland, Wales and Northern Ireland and all are content with the amendments the Government are tabling on Report. There are a number of consequential amendments to Clause 51 and Schedule 5 to replace uses of “enactment”. Those references are to particular Acts of the UK Parliament rather than to legislation in general, so it is not appropriate for the definition of “enactment” to apply in those cases.

Amendment 39 ensures that English, Welsh and Northern Ireland partnerships can be prosecuted in Scotland. Currently, Clause 57, which deals with offences by partnerships, only extends to England, Wales and Northern Ireland. This is set out in the full heading of Clause 57, and Scotland is explicitly excluded from the extent of the clause in Clause 70(2). The Government initially considered that Clause 57 did not need to extend to Scotland because partnerships are treated differently in Scots law. Existing legislation already makes similar provision for Scotland to that in Clause 57; Clause 70 was drafted accordingly. However, it has since come to light that while there is no need for the Bill to make provision for Scottish partnerships, the current draft presents the risk that there would be no power to prosecute an English, Welsh or Northern Ireland partnership in Scotland. Since it is the policy intention that these prosecutions should be within the power of the Scottish courts, we propose to delete Clause 70(2).

Finally, Amendment 40 includes an additional provision in the Bill to allow this legislation to be extended to Crown dependencies and overseas territories, as modified, by way of an Order in Council. The Bill has the potential to bring new business opportunities in an expanding space market, bringing in new revenue, jobs, training opportunities and other benefits to local areas. It is an important principle that the potential benefits of the Bill are accessible across not just across the United Kingdom but in our Crown dependencies and overseas territories. Amendment 40 will allow the Government of a Crown dependency or overseas territory to utilise the regulatory framework the Bill creates for spaceflight activities and to develop a spaceport if they would like to do so. I beg to move Amendment 12.

[Lord Rosser]

May I ask a bit more about government Amendment 40 in relation to Crown dependencies and overseas territories? As I understand it, this is a fairly standard clause in Acts of Parliament, but perhaps the Minister can confirm whether that is so or it is something of a rarity.

My understanding of the Minister’s concluding comments is that a Crown dependency or overseas territory, if it wished, could seek to have a spaceport on its territory. However, would government Amendment 40 be activated, in the sense of seeking the Order in Council, by the British Government or could it be activated only if so requested by a UK Crown dependency or overseas territory itself, or could it indeed be activated at the request of a company or even another country? What would be the criteria for determining whether or not the provisions of the Act should be extended as provided for in government Amendment 40?

Would the provisions of the Act be so extended under the terms of government Amendment 40 if it was felt that it worsened the prospects of the development and expansion of the UK space industry in this country—even in Prestwick? If the provisions were so extended, could companies from any country in the world establish spaceflight facilities in a UK Crown dependency or overseas territory, or would it be restricted to British companies, at least as the lead company? Finally, could we have an assurance that extending the provisions of the Act to the Channel Islands, the Isle of Man or any British overseas territory would not give any companies, whether private or state-owned, any tax advantages, particularly in the form of lower tax, compared to the tax regime that would apply to a space industry company operating under the Act’s provisions in this country?

[Lord Fox]

The noble Lord has stolen many of my lines. There seem to be a lot of loose ends here. I reiterate his question about how much of the Bill applies to a Crown dependency in the event that it builds a spaceport. Are we looking just at the right to do it, or are all the other provisions of the Bill in place in a Crown dependency situation? The point that the noble Lord made very well is: are we in danger of allowing people to set up low-cost competitors in an industry that we are hoping to run from the United Kingdom mainland?

[Baroness Sugg]

I will try to answer as many of those questions as I can. Yes, this is a standard clause. It was not included originally because we wanted to conduct a consultation with Crown dependencies and overseas territories, which we completed over the summer. That is now done and we are including it as a government amendment.

On who can enact this, it would be done at the request of the Crown dependency or overseas territory, which would then be subject to all the legislation in the Act. But ultimately the creation of a spaceport is going to be a commercial decision, so the UK Government would not take an active role in deciding where it would be. Currently we are not aware of any Crown dependencies or overseas territories that wish to undertake this activity.

[Lord Fox]

Just to be clear, the money that has been put aside to provide seedcorn for this process would not be available to Crown dependencies—is that true?

[Baroness Sugg]

Please could the noble Lord repeat that question?

[Lord Fox]

I think £10 million was put aside to help develop the cases for spaceports. Would this money be available to Crown dependencies or just to the UK mainland?

[Baroness Sugg]

That money is available to people who are currently putting together a case to create a spaceport. As I said, there is currently no interest from overseas territories or Crown dependencies, so that money would not be used by them.

On the tax regime, I am afraid that I do not have the full answer. I will have to get back to the noble Lord.

[Lord Rosser]

I appreciate that this has come up suddenly but I made one or two other points that I do not think the Minister has responded to. For example, would the provision be extended to companies from any country in the world, or would it be restricted to British companies? Could it be agreed, only to find that it is to the detriment of companies wanting to set up spaceflight facilities or spaceports in this country?

[Baroness Sugg]

Any international company could request spaceflight activity within any of the ports but, as I say, it will ultimately be a commercial decision as to whether these activities take place. We would not play an active role in that.

[Lord Rosser]

Is that really consistent with a Bill that is designed to promote the industry in this country?

[Baroness Sugg]

The Bill is designed to promote the industry in this country and that is what we are focusing on. The addition of this provision just allows that in the future, should there be any interest, the Crown dependencies and overseas territories could take on the legislation framework and develop the activity.

Amendment 12 agreed.

Moved by

[Baroness Sugg]

13: Schedule 5, page 58, line 26, leave out “any such enactment” and insert “a provision that creates an offence”

--- Later in debate ---

[Lord Fox]

My Lords, I once again associate myself fully with the comments that have just been made. I am still struggling with the “anything necessary” line. Having defended those words so spiritedly in Committee, the noble Lord, Lord Callanan, is now escaping. Are we looking at enforcement at an economic level or at a national security level? I suspect there are already the necessary powers, were this to be a national security issue. There are sufficient powers to act with sufficient speed, with or without judicial oversight, in the event that it was a national security emergency that needed to be dealt with quickly. Therefore, it seems that we are looking at a commercial emergency—such a thing exists—and on that basis it seems to me that the points raised by the noble Lord, Lord Rosser, are entirely reasonable and we should not invest these draconian powers because we do not need to in dealing with that kind of issue.

[Baroness Sugg]

I thank noble Lords for raising the question of emergency powers again. Since their interventions in Committee, we have been reflecting on this provision. I will do my best not to make all the same arguments that we made in Committee.

This amendment seeks to require that an enforcement authorisation issued by the Secretary of State is evaluated by a justice of the peace within 48 hours after the 48 hours that the authorisation has been in force. The enforcement authorisation issued under Clause 32 may be issued only under certain circumstances, which do not include a commercial emergency. They are: when there is an urgent case to act to protect national security; to ensure compliance with international obligations; or to protect people’s health and safety. The authorisation must be issued in writing to a named person and specify the action authorised to be taken. The authorisation itself will remain in force for 48 hours only. This reflects the urgent nature of the action considered necessary and requires it to be taken within a short period.

We referred to similar powers of other regulators in Committee, and we have tried to look across other legislation to ensure that we have the right balance here. Some of these powers are not subject to any review once they have been exercised. There is a precedent for this approach in the Consumer Rights Act 2015, which allows officers to enter premises without a warrant where it is suspected that there has been a breach of legislation, where giving notice would defeat the purpose of the entry, and where it is not practicable to give notice or where the entry is for the purpose of surveillance. The reasons for which an authorisation under Clause 32 may be issued are strictly related to emergency situations, and therefore are more restricted than the circumstances in the Consumer Rights Act. I should also clarify that improper use of the power by an appointed person under Clause 32 would be subject to judicial review, so it can be challenged if necessary.

The noble Lord, Lord Fox, brought to noble Lords’ attention the fact that warrants issued under the Investigatory Powers Act 2016 are subject to approval by a judicial commissioner within three working days of the warrant being issued. This is appropriate because these warrants remain in place for five days and relate to the sensitive practices of targeted interception, examination of the contents of communications and international assistance in such matters. This is not comparable to either the power under Clause 32 or the approach proposed by this amendment. Our advice from cross-Whitehall consultations is that there is no known precedent of a justice of the peace conducting an evaluation of an emergency power once it has been exercised.

We are also not clear what purpose evaluation by a justice of the peace would serve, as the order would be spent and the specified action taken by the time of the evaluation. It is also not clear what, if any, follow-up action would be available. I am afraid I cannot address the noble Lord’s concerns directly but we are continuing to reflect and will keep working with colleagues across Whitehall to ensure that we get a proportionate set of enforcement powers in the Bill, so that we can undertake spaceflight activities safely but also with regard to our national security and international obligations. I ask the noble Lord to withdraw his amendment.

[Lord Rosser]

I thank the Minister for her reply and thank the noble Lord, Lord Fox, for his contribution to the debate. I find it difficult when a Government say that they cannot understand what purpose a post hoc review of their action, or of a decision by the Secretary of State to issue the enforcement authorisation and whether it has been abused, would have. Clearly, if it had been abused, that would become known. Although I agree you cannot rectify the abuse that has already occurred, the thought that it might be drawn to public attention had it taken place would act as a deterrent, certainly in the future if it happened again. So I am puzzled that the Government do not apparently understand what the purpose would be of the review suggested in the amendment and, indeed, suggested by the committee concerned.

When the Minister says that the Government are still reflecting on this, once again I am afraid I am not entirely clear what exactly they are still reflecting on, bearing in mind that the Minister has not held out—at least, that is how it appears to me—any prospect at any later stage during the Bill’s proceedings of the Government perhaps coming forward with a proposal of their own if they do not like the look of the proposal in this amendment. When the Minister indicates that the Government are still reflecting on this, are they reflecting in the sense that they may come forward at some later stage in the Bill’s progress through Parliament with a proposal of their own that deals with, or at least addresses, the issues raised in the amendment?

[Baroness Sugg]

As I say, we are still looking at some type of post hoc review. We are developing the options for that and trying to understand what the implications would be. That work is ongoing.

[Lord Rosser]

In the light of what the Minister has said about looking at a post hoc review, I am happy to withdraw the amendment.

--- Later in debate ---

[Lord McNally]

My Lords, listening to what the noble Lord, Lord Tunnicliffe, said, and the earlier debate about safety, one thing that occurred to me was seeing the newsreel footage of the crash of the “Hindenburg”, just before the Second World War—a crash that virtually ended the airship as a commercial prospect. That is a useful reminder that what may be seen as the next new thing could be disastrously impacted.

The simple message, which seems so obvious, is that if entrepreneurs considering coming into the industry have unlimited liability, they will not come in. If there is no cover—particularly, as the noble Lord, Lord Tunnicliffe, emphasised, for third parties—that would be totally unacceptable. The problem has been spelled out; the Government should face up to those contradictions.

[Baroness Sugg]

My Lords, Amendment 15 relates to the liability provisions in the Bill. As my noble friend Lord Callanan outlined in Committee, these provisions are vital but complex.

I would just like to clarify a point my noble friend Lord Callanan made in Committee. He said that,

“the position under the Bill is exactly the same as that in the aviation industry—that operators have an unlimited liability to indemnify government”.—[Official Report, 16/10/17; col. 434.]

While it is correct that under aviation law an operator holds an unlimited liability, an operator is not required to indemnify the Government for third-party claims brought against it.

The requirement to indemnify the Government arises in this Bill and in the Outer Space Act 1986 only because under UN space treaties the UK Government are ultimately liable for the space activities of their nationals. Operators are therefore required to indemnify the Government for any claims brought against them as a consequence of their licensed activities. I hope that the House finds this clarification helpful.

With this complexity in mind, I should like to provide further background before turning to the amendment. Clause 33(5) provides a power to make regulations that enable a regulator to specify in a licence a cap on an operator’s liability arising out of its spaceflight activities to prescribed persons or in prescribed circumstances. These persons and circumstances would be set out in regulations, but we envisage that a cap, if imposed, would be on an operator’s liability to the uninvolved general public who suffer injury or damage as a result of spaceflight activities. The uninvolved general public will have a strict liability claim against the operator.

Further work needs to be done to check the appropriateness of capping an operator’s third-party liability. We plan to issue a call for evidence on issues relating to insurance and liabilities in early 2018, following Royal Assent to the Bill.

As this liability can be capped, Clause 34(3) provides the Secretary of State with a power to indemnify a claimant in the event of injury or damage caused by spaceflight activities. This means that the Government can pay compensation to the uninvolved general public in situations where injury or damage exceeds the operator’s capped liability amount.

As we have already emphasised, we are trying to put safety at the heart of the Bill. It is designed to ensure that spaceflight activity is as safe as possible in the first place, which will minimise liability arising. But, as noble Lords have pointed out, injury or damage could arise, and if it does, it is the Government’s policy that the uninvolved general public should have easy recourse to compensation. This policy does not and should not change if an operator has a capped liability or, for example, becomes insolvent and cannot meet all its claims.

I therefore understand the concerns that have led to this amendment which seeks to ensure that the Secretary of State has to pay compensation above the capped amount to the uninvolved general public. The liability provisions in the Bill are complex and we need to ensure that amendments in this area are appropriate and achieve what they are set out to do. We are working on this and look forward to tabling an amendment similar to this one in the other place, which I hope will allay the concerns shared by noble Lords that have led to this amendment. With that in mind, I ask the noble Lord to withdraw his amendment.

--- Later in debate ---

[Lord McNally]

My Lords, this takes forward a recommendation from the Science and Technology Committee in the other place that “gross negligence” should be on the face of the Bill, and that is what the amendment would do.

[Baroness Sugg]

I thank the noble Lord, Lord McNally, for tabling this amendment, following a similar amendment that he tabled in Committee. We discussed Clause 36 in relation to the protection it affords a regulator. Having considered the persuasive points made by the noble Lord, and others, after reflecting on the wording of this new amendment, we agree that to achieve the right balance in this clause the regulator protection should not apply in cases of gross negligence, and we accept the amendment as tabled.

Amendment 16 agreed.

--- Later in debate ---

[Lord Deben (Con)]

I look forward to my noble friend’s reply and take this opportunity to say how exemplary the Government’s response has been on a range of issues that we have raised. If they responded in this way on a lot of other issues it would be very much easier for all of us. My noble friend has indicated in her delightful and charming way that she thought these amendments were worth while. Can we extend such a response more widely so that we do not have to have acrimonious discussions and then find ourselves with an amendment which is more or less similar to what has been proposed before? This is a very good example of that. People should always say thank you, and I do so.

[Baroness Sugg]

I thank my noble friend for his kind comments. I hope to continue in my role as a transport Minister in an unacrimonious way. I am afraid that is as far as I can go: that is my brief.

During Committee, I was given the chance to talk about the work that the UK Space Agency is doing to improve the current licensing regime. I apologise again if this is a case of Groundhog Day: I need to reiterate that as I am afraid we still do not believe that the noble Lord’s amendment is necessary. We outlined the “traffic light system” that the agency is working on and work that was being undertaken on a policy model for insurance for constellations of satellites following feedback that insuring each satellite for a set level of insurance is prohibitively expensive. We think that the traffic light system and the insurance requirements for small satellites and constellations will do the job and that the industry will welcome them. We are holding a workshop in December this year. Very shortly after that, the UKSA will plan the implementation of the policy framework around that. That work will obviously be relevant to the Bill as, when it comes into force, it will regulate the operation of all the satellites in orbit.

Amendment 18 seeks to make it a requirement that a report is laid before Parliament on any consultations, and to include within that report an indication of the regulations proposed. We still believe that the amendment is not necessary. Laying a report before Parliament would be a duplication. It is our intention, in line with the Government’s consultation principles document, to issue a government response to the formal consultations to take place in relation to this Bill. This will, of course, be accessible to everyone.

We expect that the approach to the insurance and licensing of nano satellites under this Bill will mostly be set out within the guidelines and not within regulations, as is the case under the Outer Space Act. This is to enable the development of the policy in line with changing circumstances. I would like to take a moment to explain how we envisage those regulations and guidance working. In Clause 37, the Bill provides the power to make regulations setting out that insurance may be required to cover certain risks and liabilities. The regulations can also set out what the insurance should cover, what may or may not be excluded from the cover and the amounts of cover required. Licences for spaceflight activities are bespoke in nature. Requiring a fixed amount of insurance for the operation of a satellite in orbit within regulations may remove the flexibility necessary to increase or reduce the insurance required, depending on the risks of each mission. It is therefore envisaged that the regulations may set out the methodology for calculating the amounts of insurance without containing specific figures. The regulations will set out those situations where insurance is required, what type of insurance is required and what should be covered within the policy.

Clause 12 and Schedule 1 allow the regulator to include a condition within each licence that sets out the minimum amount of insurance that is required for that licensed activity. We intend to include such conditions in licences for the operation of small satellites. The published guidance will set out the amount of insurance required in line with the regulations. Such guidance could include the insurance requirements for small satellites under the traffic light regime if the policy intention is to treat those in a certain way.

As I set out during the first day in Committee, the purpose of the guidance is to aid policy implementation by supplementing the legal framework. The main benefit of the guidance is the flexibility to amend quickly and take into account changing events. These are areas where guidance may need to be amended regularly and in a timely manner. In the meantime, the UKSA will continue to engage with industry and interested stakeholders. We are confident that we will publish the regulations in due course. I therefore ask the noble Lord to withdraw Amendment 18.

[Lord Fox]

I thank the noble Baroness for her letter on the subject of traffic lights, which I was pleased to receive. On a point of clarity, does the UK Space Agency, the Health and Safety Executive or some other body classify the risk of the launch? Who decides whether it is red, green or amber?

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[Baroness Sugg]

It will be the regulator of the launch, dependent on whether it is suborbital or orbital, therefore either the CAA or the UKSA. However, they will use the same framework.

[Lord Fox]

We have exhausted this debate to a great degree. I still feel a little nervous that people are being asked to commit to a future industry when they are not sure how their satellites will fit into the Government’s regime and what the cost level of that will be. Therefore, there needs to be more clarity—if not in the Bill then issued in the guidelines—so that operators can be assured that they have an industry that they can afford to support. With that hope, I beg leave to withdraw the amendment.

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Moved by

[Baroness Sugg]

19: Clause 38, page 27, line 27, leave out “expedient” and insert “appropriate”

[Baroness Sugg]

My Lords, this group of amendments relates to land powers, a subject which attracted much debate in Committee. I have reflected on the concerns raised by the Committee, and I thank the noble Lords, Lord Tunnicliffe and Lord Rosser, the noble Baronesses, Lady Randerson and Lady Ford, and my noble friend Lord Deben for their close scrutiny of these powers. I will set out the amendments that we have tabled in response to their contributions.

The Government want to make it clear that the Bill will not give compulsory purchase powers to operators. We have sought to establish a proportionate set of land powers that are intended to be used only where appropriate. For this reason we have tabled Amendment 19, which replaces the word “expedient” with “appropriate” in Clause 38, as the former term was much criticised in Committee. This is intended to clarify the limited circumstances in which a Clause 38 order could be made. There is precedent for the use of the word “appropriate” in relation to the exercise of powers under other legislation. A few examples are the Airports Act 1986, the Armed Forces Act 2006 and the Civil Aviation Act 1982. I hope this amendment reassures noble Lords that the Government are serious about developing a balanced land powers regime that does not disproportionately impact landowners.

On Clause 40, noble Lords—including the noble Lord, Lord Tunnicliffe, and my noble friend Lord Deben—raised concerns in Committee about the lack of clarity regarding the temporary nature of the restriction on the use of land by orders under this clause in the current draft of the Bill. It is our intention that orders made under Clause 40 should be in force for only the shortest amount of time possible, and should be used only where no alternative arrangement can be negotiated with the rights holders and other interested parties.

Amendment 20 would remove Clause 40 and replace it with text that more clearly sets out the temporary restriction of use by such orders. This amendment, which is similar to the amendment to Clause 38, seeks to revise the language of the clause to reassure noble Lords that such orders will be made only where the Secretary of State considers it appropriate to do so. Further, subsection (1) of the proposed new clause explicitly sets out that orders would only temporarily restrict or prohibit the use of land or water for launch or landing.

We have also gone further. Orders made under this revised clause must specify the launch or landing that is proposed to be carried out and the period or periods for which the restriction or prohibition will apply. Orders must specify the relevant spaceport used and specify the area of land or water subject to the restriction or prohibition. This means that those affected will have greater clarity on the impact of the orders. They are able to challenge these restrictions using the objection process in Schedule 6, or can apply to quash orders under the process outlined in Schedule 7.

To reflect the temporary nature of restrictions or prohibitions under Clause 40 orders, we have consequentially tabled Amendments 23, 24 and 25 to Clause 44, which is headed “Registration of orders”. Temporary land orders made under Clause 40 would not be land charges and would not require registration in the land register in England and Wales or the equivalents in Scotland and Northern Ireland.

We have also tabled Amendments 26, 27 and 28 to Clause 48, which is headed “Amendment and revocation of orders”. The provision on orders under Clause 38, which is about powers to obtain rights over land, and paragraphs 4 and 5 of Schedule 9, which relate to statutory undertakers, remain the same as before. The amendments to this clause allow for amending orders made under Clause 40(1) to shorten or remove a specified period of restriction or prohibition on the use of land or water. An amending order made under proposed new Clause 48(2)(a), or an order revoking this order, becomes operative immediately after it is made and the Secretary of State must notify relevant persons about the order.

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[Baroness Sugg]

My Lords, I am pleased that noble Lords have welcomed the amendments tabled on land powers. As a relative newcomer to your Lordships’ House and certainly to this ministerial position, it has been a pleasure to take on board the sensible suggestions which have been made and to include them in the Bill. I am afraid that I am not going to be able to satisfy the noble Baroness today on including the devolved Administrations in the Bill, but I would like to take the opportunity to spell out a bit more of our engagement with them.

We began the engagement process in early 2014 when we first met the Welsh and Scottish Governments to discuss our ambitions to promote the UK space industry. We have been engaged with them on an official level ever since to ensure that they are content with all the provisions of the Bill. Specifically on land powers, we have agreed an approach which they have confirmed they are happy with. Before the introduction of the Bill, we discussed the land provisions with the Scottish Government, the lands tribunals for Scotland and Northern Ireland, and the Registers of Scotland, and have since consulted the Scottish Civil Justice Council on the practical implications of orders under Clauses 38 and 40. They have all confirmed that they are content with the implications for their processes.

Orders made on Welsh land would be subject to the same registration process as those in England, and any tribunals that were to be involved would be the same ones as for England. The Minister of State for Transport, John Hayes, spoke last week to the Scottish Government Minister for Transport to update him on the progress of the Bill and the proposed amendments. In addition, my officials continue to engage the devolved Administrations of Wales, Scotland and Northern Ireland as the Bill makes its way through the parliamentary process. This includes sharing information on the proposed amendments tabled last week, with which the devolved Administrations have expressed that they are content. An opportunity for the devolved Administrations to raise any concerns about a specific order is, as I said earlier, provided in Schedule 6.

We expect that spaceport or launch operators or range control service providers will have already worked closely with local landowners and local authorities as they develop their plans for sites and launches. We also expect that, rather than orders under Clauses 38 and 40 being necessary, operators will negotiate with landowners for access to land.

I hope that this greater detail, combined with the amendments tabled by the Government to Clauses 38, 40 and 42, give reassurance to noble Lords. I hope also that the amendments demonstrate that the Government recognise the importance of land and ownership rights, as well as the importance of protecting the public during periods of spaceflight activities.

In response to the invaluable scrutiny of this House, we have sought to fine-tune our proposals to prevent unnecessary restrictions on land users and landowners. In addition, we have clarified the availability of a robust challenge process which provides those who wish to challenge with very similar grounds and remedies to those available through judicial review. The Bill also includes provision for just compensation where appropriate. I therefore ask the noble Baroness not to press Amendment 21.

Amendment 19 agreed.

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Moved by

[Baroness Sugg]

20: Clause 40, leave out Clause 40 and insert the following new Clause—
“Power to restrict use of land temporarily(1) The Secretary of State may by order temporarily restrict or prohibit the use of a specified area of land or water as a place for the arrival and departure of aircraft or spacecraft if satisfied that it is appropriate to do so—(a) to secure that a specified launch or landing may be safely carried out at a specified spaceport, or(b) to prevent a specified launch or landing at a specified spaceport from endangering persons or property.(2) An order under subsection (1) may not restrict or prohibit the use of an area of tidal waters that is beyond those of the territorial sea adjacent to the United Kingdom.(3) An order under subsection (1) must specify the period, or periods, during which the use of the specified area of land or water is restricted or prohibited.(4) Schedule 6 makes further provision in relation to orders under subsection (1).In that Schedule—(a) Part 1 applies to orders under this section that do not prohibit or restrict the use of water (“land orders”); (b) Part 2 applies to orders under this section that are not land orders.(5) It is an offence to contravene a provision of an order under subsection (1).(6) An offence under subsection (5) committed on tidal waters outside the ordinary jurisdiction of a court of summary jurisdiction may be tried and punished by such a court as if it had been committed in the nearest part of the United Kingdom that is within the jurisdiction of such a court.(7) Subsection (6), as it applies in relation to Scotland, does not confer jurisdiction on any court of summary jurisdiction other than the sheriff court.(8) Proceedings for an offence under subsection (5) may be instituted—(a) in England and Wales, only by or with the consent of the Secretary of State or the Director of Public Prosecutions;(b) in Northern Ireland, only by or with the consent of the Secretary of State or the Director of Public Prosecutions for Northern Ireland.(9) In this section—“launch or landing” means a launch or landing of a spacecraft or carrier aircraft;“specified” means specified in an order under subsection (1).”

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Moved by

[Baroness Sugg]

22: Clause 42, leave out Clause 42 and insert the following new Clause—
“Challenges to and commencement of orders(1) A proposal to make an order under section 38 or 40 may be challenged under paragraph 3 of Schedule 6 but may not otherwise be challenged in any legal proceedings.(2) An order under section 38 or 40 may be challenged under Schedule 7 but may not otherwise be challenged in any legal proceedings.(3) Subject to Schedule 7 and section 48(5), an order under section 38 or 40 becomes operative at the end of the period of six weeks beginning with the day on which the notice that the order has been made is published under paragraph 6(1)(a) or 8(1)(a) (as the case may be) of Schedule 6 .”

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Moved by

[Baroness Sugg]

23: Clause 44, page 30, line 38, leave out “and land orders”

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Moved by

[Baroness Sugg]

26: Clause 48, page 33, line 12, leave out “a specified provision of this Act” and insert “section 38 or by paragraph 4 or 5 of Schedule 9”

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Moved by

[Baroness Sugg]

29: Clause 51, page 34, line 31, leave out “an enactment creating” and insert “a provision that creates”

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Moved by

[Baroness Sugg]

31: Clause 66, page 42, line 1, leave out subsection (3)

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[Baroness Sugg]

My Lords, in Committee last month, a number of noble Lords urged my noble friend Lord Callanan to reconsider the Henry VIII powers contained in Clause 66. The noble Lord, Lord McNally, highlighted the powerful arguments made by several speakers on this issue and recommended that the Government give thought to that between Committee and Report. I am pleased to say that we have followed his advice and have considered the arguments made by noble Lords. As a result, I have tabled these amendments, which will remove the Henry VIII powers from the Bill. I hope noble Lords will appreciate the considerable ground the Government have given. We have not taken this decision lightly; we recognise that there may be situations in the future that leave some legal uncertainty. However, we will continue to examine related legislation and address any omissions as necessary.

Amendments 34, 36 and 37 ensure that the power to make consequential amendments in Clause 67 is now limited to changes to secondary legislation made under the negative resolution procedure. Turning to Amendment 33A, we had an interesting debate on this same issue in Committee. I take it that my arguments then failed to convince noble Lords of the necessity of the subsection. However, the Government remain convinced that the subsection is needed to ensure that all aspects of the Bill can be fully implemented effectively.

As noble Lords are aware, the Bill provides powers to make regulations for specific purposes such as safety and security. However, there remains the possibility that due to the complex and evolving nature of spaceflight technology, we may need to supplement such regulations with regulations on other aspects of spaceflight and associated activities. The power in Clause 67(1) would only be used in such cases. I hope noble Lords are reassured by my explanation and feel able not to press the amendment. I beg to move Amendment 31.

[Lord McNally]

My Lords, I see that the noble Lord, Lord Callanan, is in his place. I would like to say that he was sorely missed this afternoon, but unfortunately I cannot—we did not miss him at all. I can see that his popping in occasionally in the afternoon to this House of concord and agreement must be a pleasure, away from the hell of the Brexit department. It is good to see him. I do not know whether it was my eloquence or the fact that a former Lord Chief Justice—the noble and learned Lord, Lord Judge—applied his powerful arguments, but we welcome the Government’s concession.

I will not go into a great deal of detail on Amendment 33A. I will read out the section we want to delete:

“Regulations may make provision generally for carrying this Act into effect and for achieving the purpose set out in section 1(1)”.


Subsection 1 is equally catch-all. It states:

“This Act has effect for the purpose of regulating—(a) space activities, (b) sub-orbital activities, and (c) associated activities, carried out in the United Kingdom”.


That is far too wide-reaching.

I make one last plea to the Minister: perhaps we could have further talks involving the opposition—the Official Opposition as well, who put their names to this—to see whether we can get some different wording. We have done a lot of good work on this, but the wording is far too wide. I give her this Gypsy’s warning: if we send the Bill down to the other place with this subsection, it will cause just the same trouble. Parliament has to be very jealous of its privileges during the passage of Bills such as this. This is a bridge too far for anyone who cares about the need to keep powers within these two Houses. I am not going to press the amendment—it would be jarring to the spirit of the whole debate to have a Division at this stage—but if the Minister would agree to meet us and have one more go before Third Reading, that would be helpful.

[Lord Rosser]

The noble Lord, Lord McNally, said that widespread concern was expressed in Committee about Henry VIII powers in the Bill and the power they would give the Government to bypass Parliament when amending or repealing primary legislation. I too am grateful that the Government have changed their position. I suspect they were concerned that they would lose a vote on this in this House, and were probably far from sure they could put the Henry VIII clause back in the Bill when it got to the Commons. They would also have had the consideration that, at their behest, the Bill started in the Lords rather than the Commons, which is not the normal procedure for Bills containing potentially controversial clauses, as this one did until the government amendment was tabled. Henry VIII may be turning in his grave at these government amendments, but we welcome them.

On Amendment 33A, like the noble Lord, Lord McNally, I hoped the Government would be able to give some rather more convincing reasons than they gave in Committee for this catch-all regulation-making power being in the Bill. I am afraid the obvious conclusion is that once again, there is no movement because the Government have brought forward this skeletal Bill for their own party management reasons, one year before discussions on the regulations and nearly two years before those key regulations are placed before Parliament. As a result, frankly, the Government do not know what regulations will be needed. Even though this is a difficulty of their own making, they clearly think it quite acceptable to expect Parliament to agree to the wide-ranging regulation-making power Amendment 33A seeks to delete.

I share the view that it would help if this issue could be further discussed before the Bill leaves this House, which means before Third Reading. I also share the view that the subsection that Amendment 33A would delete will, if it remains in the Bill, be the subject of much discussion when it gets to the Commons. If the Government will not agree to delete it, it would be a lot better if it could be amended in some way. I hope they will think again on this issue.

[Baroness Sugg]

I will attempt again to explain our opposition to the amendment. It would result in primary legislation being needed for such cases, including, for example, to make provisions for any developments in technology. This could lead to delayed launches from the UK and harm a burgeoning industry, so we are keen to maintain flexibility.

It is worth noting that the power’s scope is limited. Only regulations that relate to the regulation of spaceflight activities and associated activities can be made, as set out in Clause 1(1). I provided assurances in Committee on the limited scope of these associated activities. If regulations were to go wide of those and cover other areas, the Secretary of State would have exceeded his or her delegated authority and the decision would be subject to judicial review.

The Government have reflected on the concerns expressed about the powers contained in the Bill. We have gone a significant way towards addressing them by removing the Henry VIII power. The removal of Clause 67(1) would adversely impact on the Government’s ability to ensure that legislation relating to spaceflight was kept up to date. I can assure the noble Lord, Lord Rosser, that this Bill was brought forward to supply certainty to the industry, but I understand that concerns remain about the definition of “associated activities” and would be happy to meet noble Lords ahead of Third Reading. I ask noble Lords not to press their amendment.

Amendment 31 agreed.

Moved by

[Baroness Sugg]

32: Clause 66, page 42, line 3, leave out subsection (4) and insert—
“(4) Regulations under this section may not amend or repeal primary legislation.”

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Moved by

[Baroness Sugg]

34: Clause 67, page 42, line 40, leave out “66(4) or”

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Moved by

[Baroness Sugg]

35: Clause 67, page 43, line 13, at end insert—
“(6A) The Secretary of State must carry out a public consultation before making regulations to which subsection (6) applies. Where the Secretary of State lays before Parliament a draft of an instrument containing such regulations, it must be accompanied by a report by the Secretary of State about the consultation.(6B) The duties imposed by subsection (6A) do not apply where the regulations amend other regulations and, in the opinion of the Secretary of State, they do not make any substantial change.”

[Baroness Sugg]

Noble Lords will recall the wide-ranging debate on parliamentary oversight of secondary legislation that took place in Committee. The Government have reflected on the concerns expressed by noble Lords. As a result, this amendment will impose a statutory duty to carry out a public consultation before any regulations are made under the affirmative resolution procedure.

I hope that the amendment alleviates noble Lords’ concerns and reassures them of the Government’s intention to undertake full and wide-ranging consultation. This will also include a report by the Secretary of State on the consultation. As my noble friend Lord Callanan said in Committee, the Government’s intention is to carry out a public consultation that will invite a response from all interested parties, including noble Lords and trade unions.

Any subsequent regulations that materially changed the substance of the original instruments would also be subject to consultation. All noble Lords who have spoken on the subject will be notified of any public consultation. I beg to move.

[Lord Rosser]

In Committee, we expressed our concerns about the extensive use of secondary legislation to bring in provisions under this Bill due to the Government’s insistence on taking a skeletal Bill through Parliament literally years before the all-important regulations appear.

We also expressed our concern, as did the Delegated Powers and Regulatory Reform Committee, about the Government’s intention, in respect of many regulations, that the affirmative procedure be used only for the first regulations and not for subsequent regulations under the same relevant section of the Bill, which would instead be covered by the negative procedure.

The Government said in Committee that the development of the first sets of regulations would be subject to a stakeholder engagement process over the coming months and that they would then issue a full and wide-ranging consultation on each initial draft statutory instrument prior to their being laid. They also said that if there were any material change to the original instruments, there would be further consultation.

Government Amendment 35 seeks to put some of those undertakings in the Bill. While it does not address the concern about the negative procedure being used for subsequent regulations after the affirmative procedure for the first regulations, it provides a statutory requirement for a public consultation before regulations are made to which Clause 67(6) applies and for a report to be made by the Secretary of State about the consultation when a draft of such regulations is laid before Parliament. To that extent, and it is not a minimal extent, the government amendment represents progress and we welcome it.

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Moved by

[Baroness Sugg]

36: Clause 67, page 43, line 17, leave out paragraph (a)

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Moved by

[Baroness Sugg]

38: Clause 68, page 43, line 41, leave out “includes an enactment contained in” and insert “includes—
(a) an enactment contained in subordinate legislation (within the meaning given in the Interpretation Act 1978);(b) an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales;(c) an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament;(d) an enactment contained in, or in an instrument made under,”

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Moved by

[Baroness Sugg]

39: Clause 70, page 45, line 27, leave out subsection (2)

Space Industry Bill [HL]

Baroness Sugg Excerpts

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

[Lord Rosser (Lab)]

I assume that when she comes to respond the Minister will talk about the wording of the amendment and, if she is not going to accept it on behalf of the Government, will indicate why it is not acceptable. Therefore, my brief comments and questions are based on the assumption that she will talk about the wording of the amendment and what it would mean if it were included in the Bill, because obviously I share the concerns that have been expressed. I hope that if the Minister is not prepared to accept the amendment on behalf of the Government, she will at least indicate a willingness to reflect further on this matter prior to its being considered in the House of Commons.

In her response, perhaps the Minister could say what the Government envisage they might want to do through regulations under Clause 67(1) as it stands that they consider they would not be able to do through regulations under Clause 67(1) if it were amended in line with this amendment. Or, to put it the other way round, what do the Government consider they would not be able to do that they might want to do through regulations under Clause 67(1) amended in line with this amendment that they would be able to do through regulations under Clause 67(1) as it stands?

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

My Lords, we debated this issue extensively in Committee and on Report, and I regret that I have been unable to convince noble Lords of the necessity of this provision as drafted.

The wording of the clause—which is why we are keen to include it rather than the amendment put forward by the noble Lord, Lord McNally—is consistent with that contained in Section 60(2) of the Civil Aviation Act 1982, the latter being a power to do anything,

“generally for regulating air navigation”.

A similar power arises under Section 11(1) of the Outer Space Act 1986 to enable the making of regulations generally for carrying that Act into effect. That is why we put forward the wording that we did in the Bill.

As noble Lords are well aware, there are a number of other regulation-making powers in the Bill, notably around security and safety. However, we need to ensure that we can regulate those wider matters relating to spaceflight and associated activities carried out in the UK that are not covered by the other powers. For example, this may include implementation of our international obligations relating to spaceflight arising from bilateral or multilateral treaties. We know from our experience in other sectors, such as aviation, that despite our best efforts there needs to be the flexibility to deal with any unexpected circumstances. The Government therefore remain convinced that this provision, as currently drafted, is needed to ensure that all aspects of the Bill can be fully implemented effectively.

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Moved by

[Baroness Sugg]

That the Bill do now pass.

[Baroness Sugg]

My Lords, I thank all those involved for their interest in, engagement with and scrutiny of the Bill over the past few months. The UK space industry is a British success story—a story of invention, innovation and global ambition. The Bill will take us further, enabling new satellite launch services and low-gravity spaceflight from UK spaceports, and supporting our industrial strategy to deliver a stronger economy that works for everyone.

I thank my predecessor, my noble friend Lord Callanan, who took the Bill through its early stages, and I thank the noble Lords, Lord Rosser, Lord Tunnicliffe, Lord McNally, and Lord Fox, and the noble Baroness, Lady Randerson, who provided rigorous scrutiny throughout this process. I am grateful for the contributions of my noble friend Lord Moynihan; I, for one, will miss the strong advocacy for a certain location in Scotland. Finally, I thank policy officials and lawyers from the UK Space Agency, the Department for Transport and the Department for Business, Energy and Industrial Strategy for their work on the Bill.

It has been a privilege to debate the Bill with noble Lords, whose knowledge and expertise I have found incredibly helpful. We have taken on many of the recommendations of the DPRRC and the Constitution Committee, and I thank them for their work. The constructive engagement, conversations and debates we have had together have led to significant improvements to the Bill. This is an example of this House at its best, where proper scrutiny and challenge can—put simply—lead to a better Bill. Today, therefore, we stand one step closer to a new commercial space age, and I beg to move.

[Lord Rosser]

My Lords, I take this opportunity to thank the noble Lord, Lord Callanan, the Minister and the Bill team for their willingness to consider the points we have raised about the Bill during its passage through this House. A number of meetings have been held, which we appreciated, and we welcome the changes the Government have been prepared to see made to the Bill as a result.

I also thank my noble friend Lord Tunnicliffe for—I was going to say “his advice and support” but the reality is that it has been infinitely more than that. I also thank Grace Wright in our office for all the hard and vitally important work that she has done for us on the Bill.

Space Industry Bill [HL]

Baroness Sugg Excerpts

Ping Pong (Hansard): House of Lords
Tuesday 27th February 2018 Lords Chamber

Moved by

[Baroness Sugg]

That the House do agree with the Commons in their Amendments 1 to 5.

1: After Clause 10, insert the following new Clause—
“Grant of licences: assessments of environmental effects
(1) This section applies to—(a) a spaceport licence;(b) an operator licence authorising launches of spacecraft or carrier aircraft.(2) The regulator may not grant an application for a licence to which this section applies unless the applicant has submitted an assessment of environmental effects.(3) In this section “assessment of environmental effects”—(a) in relation to a spaceport licence, means an assessment of the effects that launches of spacecraft or carrier aircraft from the spaceport in question, or from launches of spacecraft from carrier aircraft launched from the spaceport, are expected to have on the environment;(b) in relation to an operator licence authorising launches of spacecraft or carrier aircraft, means an assessment of the effects that those launches are expected to have on the environment.(4) If or to the extent that the regulator directs, the requirement imposed by subsection (2) to submit an assessment of environmental effects may be met by submitting—(a) an equivalent assessment prepared previously in compliance with a requirement imposed by or under another enactment, or(b) an assessment of environmental effects prepared in connection with a previous application. The regulator may make a direction under this subsection only if satisfied that there has been no material change of circumstances since the previous assessment was prepared.(5) The regulator must take into account the assessment of environmental effects (including any assessment submitted as mentioned in subsection (4)) in deciding—(a) whether to grant a licence to which this section applies;(b) what conditions should be attached to such a licence under section 12.(6) The regulator must issue guidance about—(a) the form, contents and level of detail of an assessment of environmental effects;(b) the time for submitting an assessment of environmental effects;(c) the circumstances in which the regulator will or may give a direction under subsection (4).Guidance under paragraph (a) may specify matters that are to be dealt with in an assessment of environmental effects only if the regulator so requires in a particular case.”

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5: Clause 34, Page 25, line 29, after “or” insert “duty under subsection”

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

My Lords, these amendments cover issues debated during the passage of the Bill through both Houses.

I know noble Lords will agree that the Space Industry Bill is an important step to ensure that the UK space sector is at the forefront of a new commercial space age. It is important that our scientists, engineers and entrepreneurs are equipped to take advantage of this opportunity.

On Amendment 1, noble Lords may recall our useful debates on the requirement for environmental protection to be set out in the Bill. I thank the noble Lords, Lord Rosser and Lord McNally, and the noble Baroness, Lady Randerson, for their valuable contributions to this debate. These debates resulted in an additional licence condition being inserted into Schedule 1, enabling the regulator to require an assessment from an applicant of the impact noise and emissions are expected to have on the local community. Noble Lords did not consider that this amendment alone went far enough to afford the environmental protection to which spaceflight activities ought to be subject. On Report, I committed to the Government tabling a further amendment in the other place to address this. I am pleased to report that such an amendment has been inserted into the Bill by way of a new Clause 11. Amendment 1 places a mandatory requirement on an applicant for either a launch or a spaceport licence to submit an assessment of the environmental effects of their proposed activity. The regulator must take the assessment into account before a licence is granted. I hope noble Lords will agree that the amendment provides robust environmental protection in the Bill as requested.

I turn to Amendments 2 to 5, which also reflect a commitment I made on Report to ensure that the uninvolved general public have easy recourse to compensation if something goes wrong. This followed a helpful debate and I thank the noble Lord, Lord Tunnicliffe, for leading the way on this issue and the noble Lord, Lord McNally, for his support of it. As highlighted throughout the passage of the Bill, safety is our priority. The provisions are designed to ensure that spaceflight activity is as safe as possible and that risks to third parties are minimised. However, where injury or damage occurs, third parties should have easy recourse to compensation; this remains the case even when an operator’s liability to third parties is capped. These amendments turn the discretionary power in what is now Clause 35(3) into a duty. This means that if an operator’s liability is capped under Clause 35, the Government are required to pay compensation to the public for any claims for injury or damage above the capped amount.

I hope noble Lords will agree to support the Motion to approve these Commons amendments, which reflect commitments I made during our discussions on the Bill. I beg to move.

[Baroness Randerson (LD)]

My Lords, very briefly, I am particularly pleased to see Amendment 1. The Minister gave those assurances during the debate and we tabled an amendment relating to the need to take environmental considerations into account. I recall saying at the time that one has to think of the impact on local people; just because it is exciting and being done in rural areas does not mean that we can ignore the impact on the environment. A great deal was made of the rurality of these space sites and it strikes me that the noise, road closures and impact of heavy vehicles will be of more concern in rural areas than they would if it was being done in an urban area, which of course cannot be the case here. As with any building works in previously greenfield sites, there will be a huge impact and I am reassured that the Government have now taken this rather more appropriately into account.

[Lord Tunnicliffe (Lab)]

My Lords, we raised the issues covered by these amendments in the Lords, and the Minister assured the House that changes would be brought forward in the other place to address those concerns. We are pleased the Government have delivered on those assurances and warmly welcome the amendments. During the passage of the Bill, I referred to early aviation legislation and its failure to envisage the growth of that industry or the impact it would have on our future. These amendments are vital to ensuring that we look not only at the needs of the industry but at the impact it will have on the environment and, importantly, surrounding communities.

When we began the Bill, there was not a huge amount of reference to the environment in it and—as the Minister no doubt finds it hard to forget—there was no mention at all of the word “noise”. We have come a good way since then. The new clause ensures that the impact the project will have on the environment is put front and centre as part of the application process and will be duly taken into account by the regulator. We welcome this and put on record our hopes and expectations that this will be a rigorous part of the application process.

The amendments to Clause 34 will ensure that the uninvolved general public—those of us who are not planning to launch into space any time soon—are fully protected if a catastrophic incident occurs and causes damage. It is right and proper that the Government have afforded their citizens that protection. We thank the Government for listening and acting on our concerns.

[Baroness Sugg]

My Lords, first, I thank noble Lords for participating in this short debate and for their support for the amendments to the Bill. Indeed, this cross-party support has been clear during the passage of the Bill through your Lordships’ House. As ever, the scrutiny and analysis of noble Lords has improved the Bill.

The Bill will deliver on the Government’s ambition to take the UK into the commercial space age by enabling small satellite launch and suborbital spaceflight from UK spaceports, whether it be the Moynihan Prestwick one or the McNally Newquay one, as we might now call it. There is no shortage of ambition in the UK, with a number of potential spaceports and launch companies developing plans to offer UK launch services. The Bill provides the modern regulatory framework needed to enable this exciting and empowering opportunity for our thriving space sector, but also addresses the important concerns around the environment and communities. This will help ensure that the UK is one of the best places to start, grow and invest in space businesses.

Motion agreed.

Moved by

[Baroness Sugg]

That the House do agree with the Commons in their Amendment 6.

6: Clause 71, Page 47, line 11, leave out subsection (2)

[Baroness Sugg]

My Lords, this amendment removes the privilege amendment and is a procedural technicality. I beg to move.

Motion agreed.