Space Industry Bill [Lords]

Eleanor Laing Excerpts

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

[Layla Moran (Oxford West and Abingdon) (LD)]

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 new clause 2—Potential impact of leaving the EU on the UK space industry (No.2)—

‘(1) The Secretary of State must, within 12 months of this Act receiving Royal Assent, lay before Parliament a report setting out a summary of any discussions between the UK Government and the European Union on the future relationship between the UK space industry and the European Union, following the UK’s withdrawal from the European Union.

(2) The report under subsection (1) must make reference to, but is not limited to—

(a) options for future cooperation and partnership between the UK space industry and the European Union; and,

(b) any new arrangements with, or proposed access to, EU space programmes, following the UK’s withdrawal from the European Union.’

This new clause would ensure that Parliament is kept up to date with negotiations between the UK and European Union in regards to the UK space industry, in order to provide clarity to the UK space industry

[Layla Moran]

I rise to speak to new clause 1, which is in my name and those of my right hon. and hon. Friends and would require the publication of an assessment of the impacts of leaving the EU on the space industry. I do not wish to take up too much of the House’s time rehashing the arguments about the impact of Brexit on the space industry, as many such arguments were made on Second Reading, in Committee and in the other place, but I briefly want to place on the record the industry’s continuing concerns, which should require the Government to publish an assessment of the sort set out in new clause 1. I will take each of the areas that I would like to see in such a report in turn, starting with research and development and Horizon 2020.

The Minister is a former Science Minister, so I do not need to explain to him the importance of certainty for scientists in the space industry. Sadly, however, we still do not have that certainty so many months later. The UK is a net beneficiary of EU space funding, contributing 12.5% of the total budget but winning contracts worth 14% of total spend. The British space industry needs a guarantee of continued access to research and development funding, expertise and facilities currently provided at EU level after the UK leaves the EU. Of course, the European Commission also provides space-related research funding through Horizon 2020, and the Government have said they will guarantee successful bids made by UK participants before exit. However, beyond that the sector has had only warm words, and it needs certainly beyond the next few years. The Government’s science and innovation discussion paper states that the UK would “welcome discussion” on remaining a participant in certain EU science and innovation programmes.

--- Later in debate ---

[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.