Space Sector: Government Support

Jim Shannon Excerpts

Wednesday 4th September 2024 Westminster Hall

[Mr Carmichael]

I don’t think I ever was, actually.

Back in 2001, there was no such thing; the sector has emerged at a quite remarkable pace and has its roots in the early days of the coalition Government. Competitions were set up looking for opportunities to develop infrastructure in a UK space sector. That has led to a UK-wide space strategy, with interests in the north of Scotland, Cornwall, the Western Isles and other parts of the country. It is worth reflecting that the legacy of that competitive start-up has been a sense of competition between the different players in the sector. Now, as we approach maturity—we are perhaps months from the first vertical launch in the United Kingdom—a different picture is emerging. The success of any one of the different parts of the UK space industry can be only good for all parts.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Gentleman on introducing this debate. I wholeheartedly agree with the point that he made and I will explain why. The space technology exploitation programme was introduced in Northern Ireland in 2023 through a pilot scheme

“to enhance UK space capability by developing new technologies…to overcome technology challenges and unlock new potential market opportunities.”

That pilot scheme concluded last year. Does he agree that additional funding is necessary for all the devolved nations, including his own and mine, to support them in contributing towards the roll-out of a potential national STEP programme that can help everybody in this great United Kingdom of Great Britain and Northern Ireland?

[Mr Carmichael]

The hon. Gentleman anticipates the tack I will take. Of course, we are talking about support from the UK Government for our space sector, but the success story that we have seen thus far has been achieved with remarkably little public money. The support required goes beyond the financial, often to the political and the regulatory. Yes, he is almost certainly correct in saying that some money will be necessary, but there has to be more to ask for than simply financial support.

The space sector is widely recognised as an industry with both economic and strategic importance for the UK. I want to focus mainly on the vertical launch industry, but that is just one part of the sector and it is an industry in which the UK has a genuine advantage. There are currently only two licensed vertical space ports in western Europe: our neighbours in Norway have Andøya and we have SaxaVord spaceport in Shetland. With three ready launch pads in SaxaVord to Norway’s two, for the foreseeable future the United Kingdom, through Shetland, will contain 60% of western Europe’s vertical launch capacity. That is a significant opportunity for our economy and country as a whole, but it is an opportunity on which we must capitalise in the immediate term. With the nation’s finances being as they are, it is worth reflecting—as I have just said to the hon. Member for Strangford (Jim Shannon)—that we have got this far without excessive financial support from the Government, but what there has been is exceptionally welcome. SaxaVord spaceport is privately held, but recently secured a £10-million convertible loan from the Government, allowing the potential of a Government minority stake in the future. That Government investment was designed to attract interest and further investment from the private sector, and in that respect it has been successful. It has been taken as a vote of confidence for those involved.

SaxaVord is working closely with the Department for Science, Innovation and Technology and the UK Space Agency, and I am told it is in daily dialogue with the Civil Aviation Authority as the industry regulator. We are looking forward to seeing the Secretary of State for Scotland visiting the site in the not-too-distant future. Parenthetically, at this stage, I hope we might see better co-operation between the Scottish Government and the UK Government as we go ahead. There was, at least in the early days, a bit of a sour feeling as a consequence of people in Shetland feeling that other projects were being given a more favourable ride by the Scottish Government. The expression put to me was, “The thumb was being put on the scales to their favour.” However, I think we have passed that point and, again in the spirit of a positive and forward-looking joint strategy, we need to put those differences behind us, although we do not forget them.

There is no shortage of potential clients for SaxaVord; the demand for a UK site of this sort is clear, but the infrastructure needs to be completed in order to maximise the opportunity. I hope that the Minister will be alive to the potential cost-benefit of getting this one across the line. More Government engagement and assistance is welcome in order to speed up the process and ensure that SaxaVord continues to lead the way in Europe, in what is a highly competitive and fast-moving global industry.