Space Policy

Iain Wright Excerpts

Thursday 14th January 2016 Commons Chamber

[Mr Iain Wright (Hartlepool) (Lab)]

It is a pleasure to contribute to this debate. I congratulate the hon. Members for Central Ayrshire (Dr Whitford) and for Glasgow North (Patrick Grady) on securing it and I thank the Backbench Business Committee for agreeing to it. There have been far too many references to “Star Trek” at the expense of “Star Wars”, so let me try to even it up a bit. Space policy has not been debated as much as it should have been in this House given how important it is, but I am pleased that, as a result of the tenacious attitude of the hon. Members for Central Ayrshire and for Glasgow North, the force has awakened. [Laughter.] That’s the only thing you’re going to get.

As has been mentioned, Tim Peake’s mission on the international space station is a fantastic achievement. I think the whole House and the whole country wish him well as he embarks on his spacewalk tomorrow. His mission is important for a number of reasons. First, he is undertaking practical experiments and research that will have positive applications back on earth, a point to which I will return in a moment. Secondly, as has already been mentioned, Major Peake’s space mission is undoubtedly inspiring and motivating a whole new generation, rather like a previous generation was inspired by the Apollo programme. I remember the inspirational words of President Kennedy:

“We choose to go to the moon…and do the other things, not because they are easy, but because they are hard”.

That inspiration and ambition are incredibly important.

The young people looking at what Major Peake is doing—following his journey and progress on Twitter, Facebook and so on, and perhaps even interacting with him as he conducts experiments in space—will have their eyes opened to the enormous and often unlimited potential available to them in their lives and careers. They might not necessarily want to become astronauts—I still have a wish to be an astronaut; I think everyone in this debate does—but they will see the dizzying potential and scope of science, technology and engineering. I hope that the impact of Tim Peake’s mission into space will last for decades, as young people are inspired to go on to have an impact on science and research throughout the 21st century.

The third reason why Major Peake’s mission is so important is that it showcases a true British industrial success: the UK space industry, and that is what I want to focus on. Most people walking the streets today will not be aware, as the hon. Member for Central Ayrshire said, that Britain has a space sector. People will perhaps automatically think of NASA and, possibly, Russia. They might consider a space industry linked with putting people regularly into space or, as the hon. Member for Glasgow North said, with missions such as New Horizons and the exploration of Pluto and the Kuiper Belt. Major Peake’s journey gives us the opportunity to celebrate a great British economic success and highlight what I hope is a shared ambition—it certainly is in today’s debate—to see the sector grow.

I think the Minister would agree that the UK space sector is the very model of the type of modern, successful sector that Britain should be focused on: innovative and high value, and providing well-paid and highly rewarding —in every sense—careers. It taps into Britain’s strengths, based on the very best of science, engineering and world-class British research, but with a very clear nod to British excellence in professional services, such as legal, financial and regulatory work. It is a rapidly growing sector throughout the world—perhaps it is best to say above the world—and the British comparative advantage should be used to capture even more wealth and value for this country in the future.

We have been quite canny in this country in identifying precisely where in the space sector, and throughout its value chain, Britain excels. We have skills in upstream activities, such as satellite construction. I visited Airbus in Stevenage and saw the great work that goes on there. I saw satellites being built and walked on the surface of “Mars”, which was absolutely fantastic. Our real strength and potential, however, lie in the industry’s downstream activities, such as user equipment, applications, services and data. Our strengths in professional services such as legal, regulatory and financial services allow Britain to lead the world in raising capital to finance space technologies, as well as the expertise to provide licensing arrangements. It is these downstream activities that will increase demand in the future so that Britain is well placed for future growth.

The hon. Member for Central Ayrshire and others have already mentioned the figures, but it is important to reiterate just how successful the UK space sector has been in recent years. It generates almost £12 billion for the UK economy, which is almost double the value of the sector just a short time ago in 2007. The industry directly employs 37,000 people in this country. That figure rises to 115,000 when one considers the supply chain, and supported and indirect jobs. UK space has seen an annual growth rate of 8.6% since 2008-09.

Madam Deputy Speaker, I think you were in the Chair yesterday when we discussed, in an Opposition day debate secured by the Scottish National party, some of the structural weaknesses in our productivity and trade positions. Frankly, if all other sectors in the British economy were performing at the same rate as the UK space industry, this country would be doing well. Productivity is three times the national average, with a value added of £140,000 per employee in the sector. Exports are twice the national average, representing about a third of the sector’s turnover. That success bodes well for the future. The global space industry is set to grow even further to about £400 billion by 2030. The UK space sector’s ambitions are challenging but achievable; the national space policy’s objectives are for Britain to have a 10% market share in the global space industry, provide £40 billion of value to the British economy and employ an additional 100,000 workers by 2030.

I hope there is a real consensus across the House, regardless of party affiliation, for that ambition, and for backing the Government and building on the back of previous support for UK space, regardless of which party is in government. Tribute must be paid to Paul Drayson, who launched, as it were, much of the Government’s interest in UK space. To be fair, David Willetts continued that policy in an excellent way throughout the coalition Government, providing all-important policy continuity and certainty that transcended Parliaments, and allowed confidence in the sector to grow and gave potential investors the reassurance that has provided much of the success for British space.

Given the characteristics of the UK space sector—a high-value, innovative, productive, export-focused industry that has identified our specific key strengths within the sector and built on that comparative advantage to secure more global market share in the future, assisted by a strong and long-standing partnership between industry, Government and research to provide policy certainty—it is surprising that the Government do not want to shout more about the virtues of an industrial strategy. An industrial strategy has been part of the success of the UK space industry. The Secretary of State seems to have abandoned such aspirations, with the possible exceptions of the aerospace and automotive industries. That seems wrong. I am pleased that the Minister on the Treasury Bench is the Parliamentary Under-Secretary of State for Life Sciences. I would single out life sciences as another great skill for Britain. It is a marvellous sector, so why is it not also classed as strategically important? That approach is very important.

In his autumn statement, the Chancellor announced a movement of research funding away from grants to loans, with the exception of the aerospace and automotive sectors. That runs the risk, as mentioned yesterday, of investment not being attracted to Britain. For such a successful and promising sector as space, that is worrying. Will the Minister consider expanding the definition of the aerospace sector to include space so that it can take advantage of the security of research funding and grants?

[Jim Shannon]

In seeking to advance the space industry, is it not important to involve universities and their expertise and knowledge? Is partnership with universities not also part of this?

[Mr Wright]

That is incredibly important. Britain’s unique blend of strong leadership and partnership between industry and Government, through things such as the UK Space Agency and the Space Leadership Council, and our world-class research expertise and strong university base, means we are well positioned to capture as much market value as possible.

Will the Minister accept—I believe he personally believes it—that industrial strategy works and commit to ensuring that the Government embrace such an approach so that sectors such as space and the life sciences can be exploited as much as possible for the benefit of Britain? I mentioned that the national space policy set out an ambition for 100,000 additional jobs in the space industry in the next 15 years—I think we would all sign up to that—but given the skills shortages in engineering and science-based industries throughout the economy, and the difficulty of encouraging girls and young women to consider science, technology, engineering and maths subjects in school, college and university and then as a career, what is he doing to address barriers to growth in the UK space sector? What further assistance, in terms of outreach activities, internships and apprenticeship opportunities, will be provided to motivate and inspire girls and young women to think about a career in space?

In criticising the space industry, it is often said that interest and investment in space is a luxurious folly and that, at a time of austerity and crisis in public services, we cannot afford a space industry: why are we sending a man into space, when patients are lying in hospital corridors? This is a false argument. To a vast extent, the UK space industry is driven by private sector investment—Government investment in the past 15 years has averaged 0.015% of total investment—and the value it creates grows the economy, employs people on good wages and increases tax revenues, thereby helping to fund public services. Research in space or in the space industry has positive applications on earth—for example, satellite technology and food crops or experiments into materials and how they react. Major Peake, while on the international space station, is carrying out experiments to measure pressure in the brain that could have important applications in serious trauma care. Investment in space results in tangible benefits for society on earth.

I am not just talking about the cost-benefit analysis. I was struck by the comments of the hon. Member for Bracknell (Dr Lee). Industry is important, and the bottom line is crucial, but as he said, exploration and imagination are fundamental to the human spirit, and it is difficult to think of anything comparable to space when it comes to letting our imaginations run riot. It is vital that we ensure an interest in space by showing what space can provide. The UK space industry is a huge success story, and has the potential to grow still further and inspire a whole generation, but that requires an ongoing partnership between industry, the Government and research. This debate shows that there is great consensus and that many people support the Government in ensuring that the UK space industry realises its potential.