Oral Answers to Questions

Carol Monaghan Excerpts

Monday 10th July 2023 Commons Chamber

[Jon Trickett (Hemsworth) (Lab)]

2. What steps he is taking to level up all parts of the UK.

[Carol Monaghan (Glasgow North West) (SNP)]

22. What assessment he has made of the potential effect of increases in the cost of living on his Department’s levelling-up agenda.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

Levelling up is not just a slogan—it is an imperative, and that is why it is a driving mission of this Government. I fear that if I outlined every step we are taking to level up, my extensive answer would take us beyond time, Mr Speaker, but to name a few highlights, we are establishing investment zones and freeports to create high-quality local jobs, delivering billions of pounds of investment into vital local projects and empowering local leaders through devolution deals, putting power and funding back into local hands. That is levelling up in action, and there is more to come.

[Dehenna Davison]

Absolutely not. This is a Government that have put levelling up at the core of every single thing we do. That is not going to change. The only way to ensure levelling up remains at the heart of Government is by voting Conservative at the next election.

[Carol Monaghan]

Data from the Times Health Commission reports that nearly 11,000 people in England last year were hospitalised with malnutrition. Malnutrition itself has quadrupled since 2007, with a shocking rise in Victorian illnesses such as scurvy and rickets. Can the Minister explain how such shocking figures fit within her Government’s levelling-up agenda?

[Dehenna Davison]

I thank the hon. Lady for highlighting that. She will know that the wider 12 levelling-up missions cover a range of areas, including health and healthy life outcomes. It is important that we all work together, across parties and across Government, to try to tackle this issue.

Oral Answers to Questions

Carol Monaghan Excerpts

Monday 27th June 2022 Commons Chamber

[Michael Gove]

There is a challenge to some of the proposals we are putting forward, with which we have to deal in the courts.

[Carol Monaghan (Glasgow North West) (SNP)]

Scotland receives 40% less money from levelling-up funding than it received from the EU. When does the Secretary of State estimate Scotland will get the same amount of funding as we had as a member of the EU?

[Michael Gove]

Scotland is just as generously funded as ever before, but it would be even better for Scotland if the Scottish Government were not spending £20 million on campaigning for independence, because as we all know, breaking up the United Kingdom would be an economic disaster for Scotland.

Ukraine Sponsorship Scheme

Carol Monaghan Excerpts

Monday 14th March 2022 Commons Chamber

[Michael Gove]

My hon. Friend is right. First, we need a light-touch approach that means that, when individuals come forward, we can be certain that they do not have any record of criminality. Subsequently, local government, including the excellent council in East Devon, can visit to ensure that accommodation is right. The checks that we are placing on people coming into the country, as we touched on earlier, are there to ensure that the tiny minority of bad actors, some of whom can be particularly exploitative and malignant, are kept out so that the scheme works for those who genuinely need it.

[Carol Monaghan (Glasgow North West) (SNP)]

May I press the Secretary of State again on the question that my hon. Friend the Member for Ayr, Carrick and Cumnock (Allan Dorans) asked: will there be a cap on the number of Ukrainians allowed into the UK? If my constituents register today for the scheme, how quickly can they expect to have Ukrainians in their house?

[Michael Gove]

First, there is no cap overall on the number of people who can benefit. Secondly, as I mentioned, the Scottish Government have suggested that they could act as a super-sponsor for 3,000, and we are working with them.

On the hon. Lady’s particular point, if one of her constituents registers today, that means that they can be updated. Come this Friday, they and a named Ukrainian could complete the form. As soon as the form is completed, there will be a turnaround to ensure that the security checks on both sides are safely done. That should mean, God willing, that there can be Ukrainians coming to Glasgow in just over a week’s time.

United Kingdom Internal Market Bill

Carol Monaghan Excerpts

Tuesday 22nd September 2020 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

As ever, it is a pleasure to serve under your chairmanship, Dame Rosie. This Cummings-directed Tory UK Government are breaking international law, and they are breaking devolution. Behind the innocent-sounding mutual recognition mechanism, the Bill simply starts a race to the bottom on standards with the UK Government imposing it against our will in Scotland.

The Bill will see the Tories mount an assault on devolution with the biggest power grab since the Scottish Parliament was re-established. People in Scotland are seeing through the contempt that the Tory Government and Westminster have for their democratic choices. They are not daft. They know that this shabby, illegal, dogmatic Bill is not designed to fix anything, but it is designed to game the system for vested interests.

It is a fact that existing mechanisms and simple changes to Standing Orders could have worked with consensus instead, but this Government do not believe in consensus, just in getting their own narrow ideological way.

The UK Government’s approach—the diktat—is the opposite of the democratic European single market approach. The development of the EU single market has been based on the principles of equality, co-operation, co-decision, subsidiarity and, of course, consent. Crucially, it sets a baseline of minimum agreed standards with which all member states’ own rules must be compatible. What a contrast with this hasty, badly written, contemptuous Bill. The Government are even having to amend their own Bill as they go along, so shabby is it. Government amendment 109 is necessary to remove clause 20—how slapdash is that?

On the mutual recognition mechanism, clauses 2 to 9 contain sweeping powers to compel Scotland to accept lower standards, set elsewhere in the UK, on animal welfare, food safety and environmental protections, among a host of other areas.

[Carol Monaghan (Glasgow North West) (SNP)]

My hon. Friend is making a very important point. One issue raised by the General Teaching Council for Scotland is that teachers in Scotland must adhere to certain professional standards. That is not the case in England. If professional qualifications were accepted across the United Kingdom, Scotland would potentially have to accept teachers with lower professional standards. That is a real concern for the GTC in Scotland. Does he share that concern?

[Drew Hendry]

I do indeed. I thank my hon. Friend for her intervention. As I mentioned in my speech last week, the Bill affects every aspect of Scottish public life. These powers radically undermine the ability of the Scottish Parliament to serve the people who elected it.

The UK Government want to ditch high regulatory standards. They continually refuse to confirm whether the UK will keep pace with EU standards after 31 December. They will not even rule out chlorinated chicken being forced into our marketplaces. The question has to be asked: why keep that prospect on our tables? It is because they are betting all of our farms on a US trade deal. They have put everything on black, hoping for a Trump victory. The irony is that if it comes up red, with a Biden win, the Bill puts any trade deal in trouble, because the presidential candidate has said that he will not put up with anything that undermines the Northern Ireland-Ireland peace process.

--- Later in debate ---

[Mr Holden]

I could not agree more with my hon. Friend. We need only to look at the crucial trading relationship that my constituency and others in the north-east have with Scotland. On the Scottish side, the trade with the rest of the United Kingdom is many times the trading relationship with even the European Union, which as a whole bloc is obviously our largest international trading partner; it is many times that within the UK internal market. For most of the companies in the United Kingdom, it is these internal United Kingdom measures that are so crucial, and that is what the Bill really does deliver.

I would like to speak briefly about amendment 89. We have heard a lot over the last few months, particularly from SNP Members, about how they view a lot of what is happening at the moment as some form of Westminster power grab, but I could not disagree with them more. In fact, their amendment, if it were supported, would almost be a power giveaway. It would not only involve those big powers returning from the EU to Westminster and, in some cases, all the way down to the devolved Administrations; it would give other parts of the United Kingdom an ability to change standards. It would give powers away from the Scottish Parliament and away from the United Kingdom Parliament, in which Scotland is represented, to other devolved Administrations, who could then make up rules for other parts of the United Kingdom that could then be imposed on Scotland without any form of Scottish representation at all.

[Carol Monaghan]

The hon. Gentleman talks about standards, but he started his speech this afternoon by saying that this was not a race to the bottom. How does he respond to the concerns of the General Teaching Council for Scotland, a professional organisation underpinned by law, which is now looking at having to accept teachers from other parts of the UK who do not reach the professional standards required to teach in Scotland?

[Mr Holden]

The hon. Lady makes an interesting point, but she does not answer the point that I was making: the amendment that her party is supporting would mean that any part of the UK could impose new restrictions on Scotland or any other devolved Administration. The Northern Ireland Assembly or the Welsh Assembly could pass something and impose it on Scotland without the consent of the Scottish people. In trying to make what is probably a quirky political point with amendment 89, her party is not seeing the larger consequences that could flow from it. Opposition Members need to pay attention to this important point, because the amendment would give power away from the Scottish Parliament to the rest of the devolved Administrations. There is also the potential for more devolved powers, perhaps for the counties and regions of England, which could also be imposed on Scotland without the say of elected Scottish Members. We need to be very careful about this—

[Carol Monaghan]

Will the hon. Gentleman give way?

[Mr Holden]

No, I have already given way to the hon. Lady once on this point.

More broadly, it is crucial that as we leave the European Union we give as much confidence as possible to British business, especially at this time of covid-19. There is a lot of uncertainty at the moment in my constituency—and I am sure in the constituencies of other hon. Members—particularly relating to the covid pandemic, and anything we can do to provide assurance on our important ongoing internal market relationships will be crucial. That is why I shall be supporting the Government and opposing the amendments proposed by the Opposition.

Oral Answers to Questions

Carol Monaghan Excerpts

Monday 28th January 2019 Commons Chamber

[Rishi Sunak]

I am delighted that Northamptonshire will benefit from the new business rate pilot. Of course, that money can be used by the councils, working together to invest in the future prosperity of their communities. Beyond that, it promotes cultural change to ensure that all local areas have a stake in the economic future of their community.

[Carol Monaghan (Glasgow North West) (SNP)]

18. This month, the Scottish Government announced £4 million to provide free sanitary products in council buildings such as libraries and leisure centres. Such measures can make all the difference to low-income families’ monthly budgets. Will the Minister commit to look at what Scotland is doing and to follow their forward-thinking approach?

[Rishi Sunak]

I welcome the cross-Government work on this issue. As the House knows, a couple of years ago the Government announced the £15 million annual tampon tax fund to support women’s charities. There are no current plans to provide extra money to local authorities, but of course the Government keep that under review.

Fire Safety and Cladding

Carol Monaghan Excerpts

Tuesday 6th March 2018 Westminster Hall

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Streeter, in this well-attended and well-informed debate. I am grateful to the hon. Member for Croydon North (Mr Reed) for securing it, and for his clear and detailed summary of the situation. The statistic that he mentioned of one fire every month is alarming, and it certainly focuses the mind.

It is essential that everyone has a safe, warm and affordable home, but following the tragedy at Grenfell last year, many uncertainties remain about how safe properties throughout the country actually are. Building and fire safety are critical components of public safety, not just in residential flats but in hotels, student accommodation and even hospitals—indeed, anywhere someone may be staying. It is concerning that so far only a fraction of that cladding known to be unsafe has been replaced throughout the country, and questions still remain about which materials are safe to use. The issue of flammable or combustible cladding must be clarified and, in my opinion, its use should be prohibited.

Further questions about who should pay—this is particularly an issue in privately owned blocks, where costs could be passed on to leaseholders—are alarming. That is not so much an issue in Scotland because the Abolition of Feudal Tenure etc (Scotland) Act 2000 and the Tenements (Scotland) Act 2004 effectively brought the last vestiges of leasehold to an end. However, the problem of owners being financially trapped in buildings affected by these issues does apply, and that has been further complicated by changes over the years to building regulations, and by responsible reconsiderations about the retrospective materials used. What may have been deemed acceptable in the past might not be now.

I represent a constituency that has no high-rise domestic buildings. Nevertheless, following the Grenfell tragedy there was considerable anxiety among many constituents living in lower level multi-story flatted accommodation. I am grateful to both local authorities in my area—Falkirk and West Lothian—for reviewing the fire safety arrangements after Grenfell, and for confirming that all council properties have appropriate fire safety arrangements in place, including both annual and five-yearly fire safety assessments. There are issues in other parts of Scotland. For example, Glasgow City Council has identified two buildings where PE ACM has been used.

[Carol Monaghan (Glasgow North West) (SNP)]

Some Glasgow Harbour flats in my constituency have that ACM cladding. The residents have no recourse with builders or insurance companies, and they have to pay for fire wardens. They now face enormous bills for replacement of the cladding. With no one claiming responsibility, does my hon. Friend agree that residents should be receiving financial support for this remedial building work?

[Martyn Day]

I certainly agree with my hon. Friend—the issue of who pays has been raised yet again.

In Scotland, since 2005 building regulations have required all new build high-rise domestic buildings to be fitted with sprinklers. In January, Labour MSP David Stewart proposed a Member’s Bill that aims to make the installation of sprinklers mandatory for all new build social housing. The consultation document also considers the retrofit of sprinklers to social high-rise blocks. In September last year the BBC broadcast a programme that stated how out of 15 fatalities and 480 injuries in high-rise fires in Scotland since 2009, only one of those casualties occurred in a flat fitted with a sprinkler system. That is a significant statistic, although sprinklers are only one of a number of fire safety measures that may or may not be installed in any particular building.

The Scottish Fire and Rescue Service has commissioned research into a targeted approach to fire safety, based on a detailed analysis of Scottish fire deaths and serious injuries between 2013 and 2016. That research will include a forensic assessment of whether residential sprinklers would have been effective in preventing death or injury. The outcomes of that research will help to inform future Scottish Government and Scottish Fire and Rescue Service policy, and to reduce fire deaths and injuries in the future.

This issue does not just affect residential buildings. The Queen Elizabeth University Hospital and the Royal Hospital for Children in Glasgow will have a small amount of cladding panels removed and replaced at a cost of £6 million. That work will be completed early next year, and the Scottish Government have committed to pay for it.

In conclusion, many issues of fire safety guidance have been raised from Members across the House. I was particularly interested in the point raised by the hon. Member for Worthing West (Sir Peter Bottomley) about the possibility of excluding VAT from remedial works. I would support such a measure, and I look forward to hearing the Minister’s response.

Space Industry Bill [Lords]

Carol Monaghan Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 6th February 2018 Commons Chamber

[Layla Moran]

The hon. Gentleman is right, and my constituency is affected by such uncertainty.

I repeat a point that I made during the passage of the Nuclear Safeguards Bill: we must remember that this is not just about funding. At a recent hearing of the Public Accounts Committee, of which I am a member, witnesses were clear that the most valuable asset we have as a nation is our ability to attract human capital. To put it bluntly, the funding follows the brains. There is real consternation across the entire science industry that European scientists are actively looking to move, if they have not already, to more welcoming countries. Their lives are more than just their jobs; this is about where they live, love and participate in the community, so the tone of this debate matters hugely. It is therefore critical that we maintain freedom of movement for the world-class scientists, specialists and technicians who contribute to the space industry, so that we keep those brains and the funding here.

Patrick Wood, CEO of Surrey Satellite Technology Ltd, an existing supplier to Galileo, has said that

“there are still a lot of unknowns”

about whether UK space companies will be able to access high-quality staff post-Brexit, noting that UK space infrastructure companies

“have a high percentage of staff that come from across Europe”

partly due to a lack of UK applicants. Aerospace companies are heavily reliant on the rapid movement of workers between different sites. A favourite fact of mine is that Airbus moved employees 80,000 times between the EU and the UK in 2016. It even has its own jet shuttle between Toulouse and Broughton. Any additional border checks between the UK and the EU could therefore prove a significant burden.

On Galileo, the European Commission is demanding the right to cancel existing contracts with UK companies that are constructing the £10 billion Galileo satellite navigation system unless the UK negotiates a new security relationship with the EU. If no long-term agreement can be found, UK companies may only be able to retain their contracts by setting up EU subsidiaries. With them will go the tax take, the brains and the supporting jobs.

Finally, I turn to the crucial effect of leaving the single market on supply chains within the UK space industry. Last year, I asked the Minister, in his former role, a series of parliamentary questions about the impact on the UK space sector supply chain of leaving the single market, but sadly there was not much in the answers to give heart to the industry. It has just not received the answers that it needs. Stuart Martin, CEO of the Satellite Applications Catapult said that

“Brexit represents a risk to the United Kingdom in sustaining its leadership position”

among sectors such as satellite manufacturing and navigation services. He also stated that the UK needs to sustain its leadership role within the European Space Agency and maintain access to the single market. Before anyone says, “But we will stay in the European Space Agency,” yes we will, but we must not forget that a quarter of its funding comes from the EU.

It is clear that the industry needs certainty on all those issues. We have had warm words, but not enough action. The Government’s shambolic handling of impact assessments and sectoral analyses, as well as this week’s uncertainty over future customs arrangements, is not inspiring confidence among the space industry. There are few specific commitments or guarantees in the Bill, so it is not unreasonable for the Government to publish an assessment of the sort that new clause 1 would require, and I hope that the Minister will consider doing so.

[Carol Monaghan (Glasgow North West) (SNP)]

I start by passing on the apologies of my hon. Friend the Member for Central Ayrshire (Dr Whitford), who has been heavily involved in the Bill since the beginning. Unfortunately, she is extremely unwell this week and has uncharacteristically heeded her daughter’s advice by staying at home, but she is no doubt watching from her sickbed.

I rise to support new clauses 1 and 2, which attempt to ensure a proper assessment of the potential damage that an extreme Brexit could cause our space industry. During the passage of the Bill, we have had a glimpse of the opportunities ahead for the UK’s space industry, but this relates to the wider reaches of the EU. The EU funds space research through Horizon 2020, and we want to ensure that we remain a player beyond that point. Although the European Space Agency is separate from the EU, it does still receive significant funding from it, so we need to know whether the Government have made any assessment of the impact of Brexit on our space industries. Given the previous impact assessment fudge, the answer is probably, “Probably not, but if we have, we will not be publishing it anyway.” That is simply not good enough. The new clauses make it clear that the Government will make that assessment and will publish it. If they do not accept these amendments, the question must be: what do the Government have to hide?

The European Commission has made it clear where it wants to go on space, so do the Government intend to remain part of the strategy and programme it has outlined? If we are not an integral part of the European space programme, what will be the impact on our viability as a spaceport centre, compared with other spaceports located within the European family?

How will we retain access to EU research and development projects, which are so important to our space industry? As has been mentioned, how will changes to freedom of movement affect this industry, an industry that exchanges talent across frontiers on a regular basis? Not all that talent will be at a salary threshold that allows easy access to the UK. Will we retain full access to programmes such as Galileo and Copernicus? Will we be marginalised in EU procurement decisions?

Those are all important questions for the Government to consider now, and they should be included in any impact assessment.

[David Linden (Glasgow East) (SNP)]

My hon. Friend is making a powerful speech that outlines the isolationist view that post-Brexit Britain is about to take. How does she square what the UK Government are saying about “global Britain” with the powerful points she has made this afternoon?

[Carol Monaghan]

We all want to see the space industry succeed, and we want to see it succeed on a global playing field, but we need to get this right. Requiring an impact assessment would make a big difference. We need to probe further on where our space industry will find itself in the increasingly likely event of a hard Brexit.

[Karl Turner (Kingston upon Hull East) (Lab)]

New clause 2 would ensure that Parliament is kept up to date on negotiations between the UK and the European Union in regard to the UK space industry.

New clause 2 differs very slightly from new clause 1, which was tabled by the hon. Member for Oxford West and Abingdon (Layla Moran). Both new clauses have the same aims. New clause 2 asks the Government to produce a summary of any discussions between the UK Government and the European Union to ensure that Parliament is kept up to date on the progress of the negotiations. Just as importantly, new clause 2 would also provide clarity to the UK’s space industry.

It goes without saying, or at least it should, that the Government must ensure we get the best possible deal with the EU to help support the UK space industry’s continued growth. That is the whole point of the Bill, and it is why the Labour party is broadly supportive of it. UKspace, the trade association of the UK space industry, claims:

“The UK leaving the EU has created significant uncertainty which is already affecting the integrated supply chain, R&D collaboration and joint programmes with other EU countries.”

As colleagues have pointed out, the UK space industry makes a noteworthy contribution to our economy and employs close to 40,000 people. The industry is currently highly dependent on EU-led space programmes. As a result, the Government must ensure the UK gets a deal that secures the long-term future and growth of our space industry to ensure that the Government’s ambition for the UK to be a leading player in the global space industry is not just all talk and no action.

The Government provided a report to the Exiting the European Union Committee with a sectoral analysis of the UK space sector after our Opposition day debate on 1 November 2017—it is fair to say that we forced the issue. We welcome the Government publishing that document. However, the Opposition believe the document is not sufficient and that Parliament should be kept up to date with a further summary, which would also give the sector the additional clarity it asks for.

Any further uncertainty would hinder any potential growth in the UK space industry. New clause 2 is a reasonable and sensible amendment that would require the Government to publish a report setting out a summary within 12 months of Royal Assent, which is absolutely fair.

--- Later in debate ---

[Carol Monaghan]

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

[Madam Deputy Speaker (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 4—Cap on licensees’ liability limit—

‘(1) The Secretary of State must, within 12 months of this Act receiving Royal Assent, lay a report before Parliament setting out plans for a cap on licensees’ liability.

(2) Before exercising their duties under subsection (1), the Secretary of State must carry out a consultation on what an appropriate maximum limit would be on the amount of a licensee’s liability, and lay a report before Parliament setting this out.

(3) The report under subsection (1) must provide for, but is not limited to—

(a) a maximum limit on the amount of a particular licensee’s liability for each launch undertaken by the operator;

(b) a maximum limit on the amount of licensees’ liability for each launch classification type;

(c) divisions of responsibility and the level of liability for parties’ spaceflight activities, including—

(i) the Spaceport;

(ii) the launch operator; and

(iii) the satellite operator.

(4) In subsection (3) “launch classification type” means the level of risk attached to each type of launch as determined by the regulator.

(5) Before exercising their duties under subsection (1), the Secretary of State must consult the Scottish Government, the Welsh Government and the Northern Ireland Executive and have regard to their views in respect of any proposed regulations.

(6) As well as consulting those under subsection (5) the Secretary of State must consult with—

(a) UKspace, and

(b) any other such persons as the Secretary of State considers appropriate.”

This new clause would require the Government to consult on and set a mandatory cap on licensees’ liability for each individual launch, based on the classification type of each launch.

Amendment 4, in clause 9, page 8, line 24, at end insert—

‘(10) The Secretary of State must, within 12 months of this Act receiving Royal Assent, publish guidance about any regulations in relation to operator licences. Such guidance must be issued by the regulator (if the regulator is not the Secretary of State).

(11) The regulator must hold pre-licensing discussions with any potential operator before an operator licence can be issued to them.

(12) Discussions under subsection (11) must include, but are not limited to, providing potential operators with guidance on any regulations in relation to operator licences.”

This amendment would require the Secretary of State to publish guidance about any regulations issued in relation to operator licences, and to hold discussions with all potential operators before a licence can be issued to them, to ensure that the UK space industry is sufficiently aware of the regulatory framework.

Amendment 1, in clause 68, page 44, line 35, after “offences,” insert—

“(n) regulations under subsection (1) of this section”

This amendment would make regulations made under section 68(1) subject to the affirmative procedure.

Amendment 2, in schedule 6, page 61, line 2, after “authority” insert “and devolved administration”

This amendment would make it a requirement that when an order is made to obtain rights over land, notices about the orders must be served to devolved administrations, where relevant.

Amendment 3, page 61, line 22, after “authority” insert “and devolved administration”

This amendment would make it a requirement that when an order is made to obtain rights over land, notices about the orders must be served to devolved administrations, where relevant.

[Carol Monaghan]

Once again, this amendment stands in the name of my hon. Friend the Member for Central Ayrshire (Dr Whitford), who cannot be here this afternoon. New clause 3 will ensure that guidelines for spaceports are clear and published, and take into account the views of devolved Administrations and stakeholders. The devolved nations currently have the majority of the sites being considered for spaceports, so we are looking for some consultation in the event of rights being taken over land that would be with the devolved Government.

The lack of a liability cap in the Bill is causing us concern. New clause 4 would ensure that there must be a cap. It calls on the Government to come to Parliament, after consultation, and provide their plans on what an appropriate cap would be. A liability cap would bring our space industry into line with those of Australia, France and the USA, which is the world space leader. The purpose of the liability cap is to allow spaceflight operators to obtain affordable insurance—without it, the prohibitive cost of obtaining insurance for unlimited liability would undermine the growth of the space industry in the UK, which is the key point of the Bill. Simply put, without a cap in place, launches will not take place in the UK.

The industry stakeholders’ main worry with the Bill is the absence of a mandatory liability cap for spaceflight operators. The Government have said that they need to be flexible, but if the industry is calling for a cap, they need to both listen and take action. We understand that a cap level will not necessarily be set at this point, but a guarantee that there will be a cap would go some way to providing assurance to the industry. The chairman of UKspace, Richard Peckham, has said that insurers have made it clear that they would not be prepared to do business without a benchmark, so it is vital this takes place.

Our new clause 4 would allow the Government to be flexible on the liability cap by creating different caps for different launches, given there will be quite a broad range of risk depending on the scale of the satellite. One mechanism that has been discussed in Committee is the red, amber and green risk assessment to describe different types of missions, with a different cap for each type of mission. I am not entirely convinced that that would be entirely useful, as clearly those classified as a red risk would not get a licence. However, this could be done by class, for example, with horizontal take-off vehicles carrying cube satellites being given a different classification from a vertical take-off vehicle carrying large satellites, as has happened elsewhere.

It is also important that we do not speak about liability per satellite and actually move towards a cap based on a per-launch system. That would be better suited to much of the growing UK industry. In Committee, I mentioned the importance of the cube satellite industry to Glasgow, which is second in the world, behind San Francisco, in the manufacture of cube satellites. Such satellites are often launched in clusters. If the figure for a liability cap were to be €60 million for each one of these tiny satellites, that would be prohibitive in terms of growing the industry.

In the longer term, this issue could affect where future developments take place in the space industry. Some countries do not require satellites to be built locally, whereas other jurisdictions require satellites that are being launched to be built in the local area or in the country of launch. If cube satellite businesses do not get a mandatory liability cap in this Bill, there is a danger that future investment will be affected and a real possibility that when those businesses are looking to expand, they will do so in a jurisdiction where liability is capped and insurance can be obtained.

[John Redwood (Wokingham) (Con)]

Is the hon. Lady saying that the taxpayer should stand behind the extra liability above the cap?

[Carol Monaghan]

That is exactly how the liability works: the insurer covers up to whatever that liability is and the rest is picked up by Government. Once that is picked up by Government, we have to look at the revenue that is generated from that industry and at the amount of growth and jobs created. If we look at proper regulations on our spaceports, liability or risk will be extremely low. Every other country that is launching has a liability cap. We cannot possibly compete unless we have that in place.

As I have said, I understand that the Minister has committed to looking at the issue of the cap and talking to industry leaders about this issue. As I have also said, I am not pressing today for a figure, but the indication that a cap will be in place will provide great reassurance for the UK space industry and will allow it to grow in the way in which we hope it will.

[Vicky Ford (Chelmsford) (Con)]

In Committee, I heard the hon. Lady press the case for an unlimited liability cap. I also heard the Minister give an extraordinarily good and detailed explanation of the work that needed to go into the detailed preparation for such a cap. That is why it was decided in Committee not to put this measure in the Bill, by a vast majority, with cross-party support. It is not that we do not understand the need for this, but it needs to be set in the correct way.

[Carol Monaghan]

I thank the hon. Lady for her contribution, but I think she is missing the point, which is that there must be a cap in place for these companies to get insurance. Without it, they cannot get insurance, and without insurance, they cannot launch. If the Government are considering this cap, why is it not in the Bill? Why does the Bill not contain a statement that a cap will be put in place? I am not asking for a figure and I certainly did not talk about unlimited liability; we talked about limited liability. Unless this is in place, we are stifling a serious growth industry. So I call on the Government to accept the new clause and to listen to the concerns of the space industry.

[Mr John Hayes]

I intend to speak briefly on this issue, having heard what the hon. Member for Glasgow North West (Carol Monaghan) said and having looked at these matters in my previous life, as it were. Liability is salient to this Bill. The Government have acknowledged that in what they have said and in the changes they have already made as a result of our consideration in Committee.

I pay tribute to the new Minister for the work he has done on this. It is right to say that he is continuing discussions with the industry. As the hon. Lady said, there is a fragility about the industry. That is not to say that it is not successful, growing or doing wonderful things, but when one innovates or is on the margins of innovation, as this industry is bound to be, given that it is pushing the frontiers ever further, of course one is in a risky business. To gain the necessary investment to make that innovation happen and to take on board those risks, one needs to create a framework of certainty, and the certainty is to some degree about liability.

If I may say so, though, there is a simpler way to deal with the hon. Lady’s points. As I said, I shall be brief. I notice that the Government have already made changes to clause 35(3), where the word “may” has been changed to “must”. They could make similar changes to clause 34(5). Were the Government obliged to make regulations to deal with liability, I think that would go a long way towards satisfying the hon. Lady. I have sufficient trust in the Minister and his Department to know that even with the word “may” in the provision, it is likely that, following the discussions that he and others are having with the industry, further regulations will be introduced for the very reasons the hon. Lady set out in a measured and moderate way.

It is vital that we create the investor confidence that will allow the industry to grow and, as I have said, push forward the frontiers of technology in what is necessarily a risky business. This can be a great success and the Bill takes us a long way towards enabling that success. To get the issue of liability right will be the icing on the cake, but as everyone who has ever dressed or consumed a cake knows, the icing is vital—it is what draws us in, encourages and seduces us to consume the cake. With that overture, I hope that the Minister can provide the reassurance that the industry and I seek and that on that basis the hon. Lady might see fit to withdraw her new clause, although that is a matter not for me but very much for her.

--- Later in debate ---

[Carol Monaghan]

Can the Minister offer any timeframe for the consultation and the ongoing process, because the industry would welcome that?

[Joseph Johnson]

The Government have committed to launch the call for evidence as soon as the Bill receives Royal Assent, which we hope will not be too long now. Should the evidence show that there is demand and a need for a liability cap of the kind that the hon. Lady has been describing, we will launch a formal consultation at that stage. That consultation will, properly, involve the devolved Administrations and others with interests in this matter.

Through amendment 4, the hon. Member for Kingston upon Hull East (Karl Turner) rightly raises the importance of the timely provision of guidance to applicants for spaceflight operator licences, and the benefits of pre-application discussions between prospective applicants and the regulator. The Government fully recognise that all potential licence applicants under the Bill—spaceports, satellite operators, range control service providers and spaceflight operators—will need to understand the regulations and processes with which they will need to comply. I hope that my earlier responses to the hon. Member for Glasgow North West (Carol Monaghan), who is speaking on behalf of the hon. Member for Central Ayrshire, have helped Members to understand the approach that we will be taking.

Pre-licence application discussions are already a key part of current Civil Aviation Authority and UK Space Agency licensing, and they will remain a central part of the process for licences under the Bill. Such discussions benefit prospective licence applicants and the regulator, because they help to build effective working relationships. The hon. Member for Kingston upon Hull East will be pleased to know that discussions of this sort are already under way with a number of interested companies.

--- Later in debate ---

On that basis, I ask the hon. Member for Glasgow North West, speaking on behalf of the hon. Member for Central Ayrshire, to withdraw new clause 3.

[Carol Monaghan]

I am happy to withdraw new clause 3, so I beg to ask leave to withdrawn the motion.

Clause, by leave, withdrawn.

New Clause 4

Cap on licensees’ liability limit

“(1) The Secretary of State must, within 12 months of this Act receiving Royal Assent, lay a report before Parliament setting out plans for a cap on licensees’ liability.

(2) Before exercising their duties under subsection (1), the Secretary of State must carry out a consultation on what an appropriate maximum limit would be on the amount of a licensee’s liability, and lay a report before Parliament setting this out.

(3) The report under subsection (1) must provide for, but is not limited to—

(a) a maximum limit on the amount of a particular licensee’s liability for each launch undertaken by the operator;

(b) a maximum limit on the amount of licensees’ liability for each launch classification type;

(c) divisions of responsibility and the level of liability for parties’ spaceflight activities, including—

(i) the Spaceport;

(ii) the launch operator; and

(iii) the satellite operator.

(4) In subsection (3) “launch classification type” means the level of risk attached to each type of launch as determined by the regulator.

(5) Before exercising their duties under subsection (1), the Secretary of State must consult the Scottish Government, the Welsh Government and the Northern Ireland Executive and have regard to their views in respect of any proposed regulations.

(6) As well as consulting those under subsection (5) the Secretary of State must consult with—

(a) UKspace, and

(b) any other such persons as the Secretary of State considers appropriate.”

This new clause would require the Government to consult on and set a mandatory cap on licensees’ liability for each individual launch, based on the classification type of each launch.—(Carol Monaghan.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

--- Later in debate ---

[Carol Monaghan]

First, I would like to thank the Minister, who has moved seamlessly from his previous role into this new role and is not too far away from where he was a few months ago. I also thank the right hon. Member for South Holland and The Deepings (Mr Hayes) for the work he has done.

It is a nice coincidence, I suppose, that SpaceX will be launching the Falcon Heavy rocket from the Kennedy Space Centre in the next couple of hours. It is the largest rocket ever to be launched and could pave the way for travel to Mars. This is the inspirational industry that we all want to be part of, and for that reason there has been great cross-party support for, and consensus around, the Bill.

The idea of spaceports in the UK is potentially exciting, but it needs investment from both the Government and private industry, and I hope that parts of the Bill will draw down some of that investment. I am pleased that many of the potential sites for spaceports are in Scotland, but I am disappointed that the Government chose not to support new clause 4, tabled by my hon. Friend the Member for Central Ayrshire (Dr Whitford). It would have strengthened the Bill and provided the assurances the industry was calling for. I hope that the cap will be put in place, and quickly, to generate future investment possibilities for the industry.

I want to place on the record the three satellite companies currently manufacturing satellites in Glasgow: Clyde Space, Spire and Alba Orbital. Between them, they ensure that Glasgow is second only to San Francisco, worldwide, for the production of CubeSats. We very much want to support this industry, and it would be great to see these Glasgow-built satellites, manufactured very close to the Clyde—they are all within half a mile of the Clyde—actually being launched. “Clyde built” used to be an indication of quality. Let us hope it is for these new spaceships.

The Bill will, of course, need collaboration between the Scottish and UK Governments, as well as cross-party support, which it has had generally, and I look forward to seeing it strengthened after the consultation process that the Minister described this afternoon.

Question put and agreed to.

Bill accordingly read the Third time and passed, with amendments.

Space Industry Bill [ Lords ] (Second sitting)

Carol Monaghan Excerpts

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

[Dr Whitford]

This group of amendments comes back to the issue of liability for operators and, in particular, the need to set some form of cap on their liabilities so that they can get insurance.

Amendment 7 would change “may” to “must” in subsection 5. As I said earlier, that is not to set the limit, but to raise the principle of one. Later, as we will see when we come to Government amendments to clause 34, the Government themselves change “may” to “must”, implying that there is a cap that they are paying above. Similarly, in clause 33(6) we would also change “may” to “must”.

It needs to be stated that the maximum limit would not go above the €60 million that satellite launchers currently have to indemnify elsewhere. However, what has been described in the Bill and in the explanatory notes is that the launch activities carried out in the UK may be quite different, as the Minister just talked about with regard to noise nuisance. In horizontal take-off, we are talking about an aeroplane carrying a small rocket that will launch cube satellites and micro-satellites such as Unicorn.

As I said earlier, the current limit of €60 million per satellite, and therefore the launch of micro-satellites, would be untenable. Therefore, we need to consider in the consultation making the amount per launch, or per cluster, as opposed simply to per satellite. The Government need to reassure us that they accept the principle of a limited liability and of a liability cap.

There is also the discussion in the paper of describing launches as having a green or amber risk—obviously, those at red risk would not get a licence. Therefore, it could be done by class as opposed to launch by launch. Horizontal take-off vehicles launching cube satellites and micro-satellites might be given a different classification than a vertical take-off vehicle carrying large satellites, as has been the case elsewhere.

This cluster of amendments simply intends to bring back this basic principle that the industry has raised with me, and I am sure with other Members. It has also submitted in writing again that the failure to commit to setting a liability cap whereby industry indemnifies the Government up to a certain level means that companies will not manage to get insurance and they simply will not launch from the UK.

[Carol Monaghan (Glasgow North West) (SNP)]

To add to the comments of my hon. Friend, this issue could affect where future developments take place in the space industry. Jurisdictions such as Singapore do not require satellites—Glasgow has strength in satellites—to be built locally. However, other jurisdictions require satellites to be built in the local area or in the country.

If cube satellite businesses do not get a mandatory liability cap within this Bill, there is a danger that future development will be affected, and a danger that, when those businesses are looking to expand or develop satellites for future use, they will do so where they can get one. That would be where they can insure and launch satellites. It is absolutely crucial that we get this issue sorted at this stage.

[Joseph Johnson]

We discussed an operator’s liability to indemnify the Government against claims from foreign states and their nationals in clause 35. In addition, clause 33 places a strict liability on the operator to compensate third parties in the UK who suffer injury or damage as a result of space flight activity. This is necessary because the Bill allows spaceflight activities to take place from the UK. The intention is to provide easy recourse to compensation for the uninvolved general public in the UK on the same basis as compensation available to foreign nationals.

Clause 33(5) provides a power to make regulations to limit an operator’s liability arising out of spaceflight activities. As we have discussed, the Government intend to issue a call for evidence to consider whether such a cap is appropriate. The amendments seek to require the Government to make regulations that specify a cap on liability in an operator’s licence based on the risk profile of the launch.

The proposal is to set an upper limit on that cap in secondary legislation of €60 million. That figure, as we have discussed, reflects the existing cap on an operator’s liability to indemnify the Government in a licence for a standard mission issued under the Outer Space Act 1986, which was set following considerable experience of satellite licensing. There is no reason to believe that that is also an appropriate level at which to cap a launch vehicle operator’s liability to third parties in the UK, since that activity is likely to be inherently more risky.

Creating inflexibility in legislation is also not helpful. The existing Government indemnity liability cap of €60 million for satellite operators is set by a policy decision and can be varied as appropriate—the figure is not laid down in the Outer Space Act for that reason. The UK Space Agency is considering its approach to risk management of satellite licensing, including the implications for liabilities and insurance requirements. That flexibility is vital if regulation is to keep up with a rapidly changing space sector. The UK Space Agency intends to issue further guidance on that new approach later this year.

As that demonstrates, legislative flexibility is better for both industry and the Government, because it allows the regulator to determine case by case whether to cap liability and the level of any cap. That should encourage operators to design their missions to reduce injury and damage as much as possible, leading to safer launches and reduced costs for them.

[Carol Monaghan]

Will the Minister give way?

[Joseph Johnson]

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

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

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

Space Industry Bill [Lords]

Carol Monaghan Excerpts

2nd reading: House of Commons
Monday 15th January 2018 Commons Chamber

[Carol Monaghan (Glasgow North West) (SNP)]

Thank you, Madam Deputy Speaker, for making such a good choice. I welcome the new Under-Secretary of State for Transport, the hon. Member for Hereford and South Herefordshire (Jesse Norman), to his place. He has moved seamlessly from his previous role as a Minister with responsibility for science. When he held that role, we had many interactions about space and space legislation.

The SNP welcomes the Bill and supports its aim of ensuring that the UK and Scotland can take advantage of new markets, overcome our dependence on foreign launch sites and benefit from the development of new spaceports and supply chains. The space industry has the potential to be worth billions of pounds to the UK economy, but proper investment must be made and work undertaken by all sides to ensure that it is a success.

As a number of Members have mentioned, space is an inspiration. I suppose the first big space development that people are aware of—if we disregard Sputnik, which is possibly not fair—is the Apollo missions to the moon. They were slightly before my time, but I understand their impact. The 1980s were the era of the space shuttle, and I remember as a child the great excitement around a space shuttle launch. An event in 1983 probably shaped my future career as a physics teacher. The space shuttle took part in a European tour, piggybacked on a jumbo jet, and—I do not know how many Members remember this—it flew over Glasgow. On that day in 1983, we heard the jumbo jet from our primary school classroom and ran outside to the playground, where we saw the most spectacular sight. It was quite incredible to see the size of the jumbo jet with this tiny thing stuck on the back, and even more incredible to think that that tiny thing was able to go into space.

The next big development, which happened when I was a young teacher, was the Cassini-Huygens mission to Saturn. It was launched just over 20 years ago, in 1997, to investigate Saturn and its moons. The mission was supposed to be quite short, but it was extended several times because of the discoveries that were made and the volume of data. One of the big discoveries concerned the moon Enceladus. Until that point, Enceladus had been seen as a tiny, icy and fairly nondescript rock in space, but the mission discovered that jets of water vapour were firing from the surface of the moon into space. Liquid water is incredibly important, as we all know; liquid water is the foundation of life. Suddenly, this icy and seemingly irrelevant moon became very important in our consideration of the potential for life in other places.

Finally, I want to mention Tim Peake. I was already a Member of this place when Tim Peake was launched into space, and his mission has inspired a new generation of young people to consider STEM careers and careers in the space industry. Over the years of the space race, we have moved from looking out the way and trying to see what is out there to looking in the way and providing data for us here on Earth. Increasingly, satellites—several Members have mentioned them—provide just such information, and they have become fundamental to our way of life. From maps and navigation systems to up-to-date weather forecasting, those satellites offer us information that we could not previously get.

Despite some embarrassing comments—I am sorry to bring the tone down slightly—last summer from a member of the Scottish Conservative party who described the industry as “science fiction”, the space industry in Scotland is flourishing. The first company was Clyde Space, which was founded in 2005 by Craig Clark. It was named after the River Clyde, on the banks of which it sits. Craig Clark had the ambition that it took to set up Clyde Space. He knew that there was the talent required in Glasgow, and that the universities—Strathclyde, Glasgow and the West of Scotland—had space-facing courses. They have been adapted to work with the satellite industries in Glasgow, and that has been a huge success.

Clyde Space has a vision. At one point, 25% of all ships were built in Glasgow, and the company has a similar vision for spacecraft—a vision that we in Glasgow are well placed to fulfil. When Clyde Space came to Glasgow, it had a multiplier effect. Alba Orbital, only a mile and a half away from Clyde Space, makes pocketqube satellites, which are tiny satellites that weigh about half a kilogram. Unicorn-1, the first pocketqube satellite, was developed in partnership with the European Space Agency and is due for launch this year.

Another company, Spire Global, is coincidentally located in the same building in the centre of Glasgow as Clyde Space. Spire’s headquarters are actually in San Francisco, but it was looking to expand and chose Glasgow for some very good reasons. The chief executive talked about the high quality research taking place in Glasgow, and the skilled technicians. Spire develops its own satellites and, unlike the other satellite manufacturers, launches them and sells on the data, including data about weather and tracking ships at sea. It does something different. These three companies together have ensured that Glasgow is now a European hub for CubeSats, and is now building more than any other place in Europe.

All hon. Members will, of course, champion their own constituencies as the potential location of the spaceport. But, just like the ambition of Clyde Space and Craig Clark, we should look further; we should look into having a number of spaceports. Scotland is absolutely spoilt for choice. Machrihanish in the Kintyre peninsula, and Stornoway airport in Na h-Eileanan Iar have potential. The A’Mhoine peninsula in Sutherland is another entrant to the spaceport race. More recently, it has been suggested that Unst in Shetland offers the opportunity of launching north straight into orbit, without passing over any centres of population. And, of course, as my hon. Friend the Member for Central Ayrshire (Dr Whitford) has already mentioned, Prestwick airport has an extra-long runway and fog-free facilities, which give it a huge advantage.

The educational opportunities of having a spaceport cannot be underestimated. As a teacher, I had the real privilege of working with the Scottish Space School at the University of Strathclyde, which sent students from Scotland to Houston in Texas for a week-long programme of activities about space; in fact, those trips still happen. If we get this legislation right, we have the potential to do that again here in the UK—in Scotland.

The regulation must support the work that companies are doing. A number of Members have mentioned launch sites. Manufacturers will always launch from the most economically viable location. The difficulty with the UK just now is that it is considered to be far more stringent in its jurisdiction than other locations. The third party liability cap has also been mentioned. The cap must be in place and it must be realistic in order for operators to get the insurance. Without it, CubeSats currently manufactured in Glasgow will continue to be transported to other locations, even when we have a spaceport. The difficulty for the UK space industry is that some countries will require the satellites to be manufactured there in order for them to get the licences to launch. Although that is not currently a big issue, it could be an issue for future investment. If restricted regulation causes the developers to invest elsewhere, we will lose out on future business, regardless of the attractiveness of locations such as Glasgow.

I wrote to the Secretary of State for Business, Energy and Industrial Strategy in August last year, and I got a reply from the then Science Minister, who is in his place today. He said that

“some small satellites can represent an increased risk over larger satellites as they often operate in the most congested regions of space, they rarely have any means of propulsion and can be difficult to track”.

Now, that is the case regardless of where we launch from, so we must get the legislation right to ensure that we can launch from the UK. The Minister went on to say:

“The UK Space Agency is also reviewing the UK’s approach to third party liability insurance, in particular with regard to small satellites and large constellations.”

I hope that this will ensure that a reasonable cap is placed on the liability for operators. Without it, they cannot get insurance; and without insurance, there will be no launches.

The Government have a duty to support this industry. Reaction Engines has been mentioned a number of times. The Minister has already mentioned the £65 million investment that I believe Reaction Engines finally received in 2016, but it was promised that money in 2013, so the company was trying to develop for three years without getting funding. We need to be realistic about the funding.

Brexit poses some threats to the space industry, to which collaborations and people are key. These people need assurances, not the ongoing uncertainty of the current situation. I found myself in the strange position a few moments ago of agreeing with the hon. Member for Ribble Valley (Mr Evans) when he raised concerns about the Galileo project. We must ensure that we protect UK industries in that project. If suppliers for Galileo must be part of an EU state, our suppliers are under threat. There must be protections in place for them. The Galileo and Copernicus programmes were both designed by the European Space Agency, but they have been built with EU funds. This money is funnelled through member states of the single market only. The UK currently receives about 15% of inward investment from the European space budget, but its contributions account for only 12%. The UK Government must make up the difference to ensure that there is continued financial support for space-related activities.

There is a great potential in space, and great potential for us to get the legislation right. Let us hope that we can work together to ensure that the UK space industry gets what it needs. This is one area of UK Government policy that has the potential to be frictionless.

--- Later in debate ---

[Stephen Kerr (Stirling) (Con)]

I rise to make a short contribution to the debate, not on the basis of any kind of knowledge or technical insight but simply as an enthusiast. I was unsure whether I, as the Member of Parliament for Stirling, could stand here and speak with any authority about such matters as the European Space Agency, but such is the marvel of the days we live in that I have received a communication while I have been in the Chamber from a constituent, Mr Gordon Honeyman, who tells me that I have a constituent who works for the European Space Agency—it happens to be his wife—so I now feel flush with authority to address these subjects, perhaps with an even greater degree of enthusiasm.

I should like to speak in support of the Bill. I am reliably informed that to achieve escape velocity from the Earth, a vehicle must be travelling at 25,020 mph. That is quite fast. The need for speed in rocketry and space engineering is a well-documented fact. The vast distances of space and the physics of gravity make such speed a requirement.

[Carol Monaghan]

That escape velocity applies if the vehicle is pinged from the surface of the Earth and no further propulsion is used. Actually, if we could continually move upwards at 1 metre per second, we would eventually get into space.