Space Industry Bill [ Lords ] (First sitting)

Karl Turner Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 23rd January 2018 Public Bill Committees

[The Chair]

We now begin line-by-line consideration of the Bill. Today’s selection list is available in the room and on the Bill website. It shows how selected amendments have been grouped together for debate. Grouped amendments are generally on the same or a similar issue. A Member who has put their name to the lead amendment is called first. Other Members are free to catch my eye to speak on all or any of the amendments in that group. A Member may speak more than once in a single debate.

At the end of a debate on a group of amendments, I shall call the Member who moved the lead amendment again. Before they sit down, they need to indicate whether they wish to withdraw the amendment or press it to a Division. If a Member wishes to press any other amendments or new clause in a group to a vote, they need to let me know. I shall work on the assumption that the Minister wishes the Committee to reach a decision on all tabled Government amendments.

Please note that decisions on amendments do not take place in the order that they are debated, but in the order that they appear on the amendment paper. In other words, debate occurs according to the selection list, and decisions are taken when we come to the clause that the amendment affects.

I shall use my discretion to decide whether to allow a separate stand part debate on individual clauses and schedules following debates on relevant amendments. I hope that that explanation is helpful.

The Committee has just agreed a programme motion, which will be reproduced on the amendment paper from tomorrow. The motion sets out the order in which we will consider the Bill.

Clause 1 ordered to stand part of the Bill.

Clause 2

Duties and supplementary powers of the regulator

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

I beg to move amendment 13, in clause 2, page 2, line 25, at end insert—

“(ea) the effect on the environment and on local communities of activities connected with the operation of spaceflight activities or the operation of a spaceport as licensed under this Act;”

This amendment adds impact on the environment and local community activities to the list of areas the regulator should take into account when exercising functions under this Act.

[The Chair]

With this it will be convenient to discuss Government new clause 1—Grant of licences: assessments of environmental effects.

[Karl Turner]

It is a pleasure to serve under your chairmanship, Mr Bone. The amendment adds impact on the environment and local community activities to the list of areas the regulator should take into account when exercising functions under the Bill.

I am grateful that the Government listened to my colleagues in the other place, tabled new clause 1 and agreed to undertake assessments of environmental effects before the regulator grants certain licenses. I pay tribute to my Front-Bench colleagues in the other place, who did a great deal of work to improve the Bill by persuading the Government to make a number of crucial concessions.

I do not intend to press the amendment to a vote, but I would like to ask the Minister whether he will set out on the record exactly how the proposed operator licensing regime and its regulation powers will work in relation to existing planning laws and processes. Concerns were raised in the other place that the regulator or persons with an operator license will be able to overrule or disregard any existing planning regulations, laws and processes when it comes to potential spaceport or spaceflight operations in the UK.

As I indicated, I am happy to withdraw the amendment if the Minister is prepared to clear up any ambiguity surrounding existing planning procedures and the development the UK’s space industry. I hope he listens not only to the concerns that we raise in Committee but to the expert contributions in the other place.

[The Minister of State, Department for Transport (Joseph Johnson)]

It is a pleasure to serve under your chairmanship on this important Bill, Mr Bone. I echo the hon. Gentleman’s thanks to Members in the other place for the collegiate and helpful way in which they developed the Bill into its current state.

I recognise the hon. Gentleman’s concerns about environmental protection and the impact on local communities of spaceflight activities and the operation of spaceports under the Bill. As he said, similar issues were raised in the other place. Following constructive debates in the other place on environmental issues, the Government reviewed the compatibility of the existing planning and environmental framework with spaceflight activities. During that review, certain situations were identified where the existing framework may not provide the environmental protection that we all wish to be required of spaceflight activities. Discussions have since taken place across Government to address that potential gap, resulting in the tabling of Government new clause 1.

New clause 1 will place 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 as a precondition of receiving a licence. That duty will ensure that appropriate assessments of environmental effects are conducted by the operator or spaceport licensee and considered by the regulator prior to the determination of an application for a licence.

As hon. Members are aware, there is already a comprehensive body of environmental and planning legislation with which spaceports and spaceflight operators will need to comply, independently of the requirements in the Bill. As such, the new clause seeks to ensure that appropriate assessments are undertaken without placing a disproportionate burden on applicants. To achieve that, it allows for existing equivalent environmental assessments to be considered where appropriate. That will be the case only where the regulator is satisfied that there has been no material change of circumstance since the previous assessment was prepared.

I hope I have reassured hon. Members of the Government’s intention to ensure that spaceport and operator licences are granted only following a robust assessment of the environmental effects of the activities those licences permit. New clause 1 goes even further than the hon. Gentleman’s amendment 13. It adds to the duty on the regulator in clause 2(2)(e) to take into account any environmental objectives set by the Secretary of State, including those set by the Environment Agency.

We also amended schedule 1 in the other place to include an indicative licence condition that, if included in a licence, would require assessments of the impact of noise and emissions from spaceflight activities. I hope in the light of the Government new clause that the Committee will agree that the Bill contains robust environmental protections, and I ask the hon. Gentleman to withdraw his amendment.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

I, too, welcome the amendment and the Government’s new clause to strengthen the environmental protections. Those hoping to establish spaceports are still concerned about exactly what is expected of them. It is about trying to get the right balance between protecting the community and allowing spaceports to develop. The sooner the regulations and expectations are clear, the more likely it is that spaceports will go ahead. At the moment, it is hard to expect them to invest if there is still the risk that, at some point, they simply will be ruled out by one of the environmental regulations.

[Karl Turner]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 2 ordered to stand part of the Bill.

Clauses 3 to 6 ordered to stand part of the Bill.

Clause 7

Provision of range control services

Question proposed, That the clause stand part of the Bill.

[Dr Whitford]

Again, I welcome any clarification, sooner rather than later, about who is envisaged as providing the range control services. It is clearly stated and welcome that the provider should be independent from those operating the spaceport or the flight. Would it be air traffic control? Who exactly is identified? The problem with the Bill is still that there is a lot of vague gaps that have not been filled in, which is causing anxiety.

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[Joseph Johnson]

In our Launch UK programme, we have made it clear that range control is one of the opportunities for which we are seeking interest from industry. To that extent, the private sector is aware that this is one of the big opportunities that the Bill will enable.

Question put and agreed to.

Clause 7 accordingly ordered to stand part of the Bill.

Clause 8 ordered to stand part of the Bill.

Clause 9

Grant of operator licences: safety

[Karl Turner]

I beg to move amendment 14, in clause 9, page 7, line 37, leave out “to (4)” and insert “and (3)”.

This amendment changes the requirements the regulator must satisfy in order to grant an operator licence to UK Space Port operators.

The amendment is merely a probing amendment, and I do not intend to speak to it for very long. We would like the Government to ensure that the regulator must not grant an application to a potential operator unless it has carried out a thorough risk assessment and meets the prescribed requirements as laid out in the Bill. I would like to press the Minister and seek further details on how the relationship between the Health and Safety Executive and the Civil Aviation Authority or UK Space Agency will work, and how best practices will be shared.

A lengthy debate in the other place highlighted the concerns. I am grateful to the Minister in the other place, who indicated that he would go away and work with officials. Concerns were raised, mainly by my Front-Bench colleagues in the other place and by me in the Commons on Second Reading, about how the Health and Safety Executive will work with the regulators. The Government stated that there would be a memorandum of understanding, but we are still in the dark when it comes to details.

I seek assurances from the Minister that regulators have the expertise and resources necessary to ensure that the general public are kept safe when it comes to the potential development of our space industry. I also reiterate that, so far, we have little detail on how the UK Space Agency and the CAA are going to share best practice. We would be grateful if the Minister could shed any more light on that.

[Joseph Johnson]

I will certainly attempt to do so. The hon. Gentleman raises the important issue of the safety requirements that regulators must take into account when deciding applications for a spaceflight operator licence under clause 9. The Bill makes it clear that safety regulation will be at the heart of the regulation of spaceflight, spaceports and associated activities. Clause 2 sets out the core duties of the regulator and establishes that ensuring the health and safety of the public is the primary duty.

Clause 9 imposes very clear requirements on both the applicant for a spaceflight operator licence and the regulator in deciding that application. Clause 9 requires that applicants for a spaceflight operator licence assess the risks to health and safety posed by the spaceflight activity. Clause 9 makes a necessary differentiation between the assessments carried out for those who voluntarily agreed to participate in spaceflight activities, which would include any crew or other spaceflight participant, and others who are not taking part in any prescribed capacity—the general public. For people taking part in spaceflight activities, details of the risk assessment required under subsection (2) will form a critical part of the informed consent form that clause 16 requires the volunteers to sign before they are allowed to participate in those activities.

The other key aspect to the clause is managing risks to the general public. Even after all steps have been taking to reduce risks to as low as is reasonably practicable, subsection (4)(b) means that the regulator will not issue a licence if the residual risk to public health and safety remains unacceptably high. If amendment 14 were passed, that protection for the general public would be removed, although I understand that, as the hon. Gentleman said, it is a probing amendment.

Subsection (5) enables the making of regulations to make provision about the matters that operators must take into account and other requirements to be met in carrying out risk assessments. Paragraphs (b) and (c) address the risk to public safety, the steps to be taken to ensure that risks are as low as reasonably practicable, and how acceptable levels of risk are to be determined. The regulations will also prescribe the factors that must be taken into account in determining acceptable levels of risk. Subsection (6) enables regulations setting out information that applicants must provide so that the regulator may be satisfied that an applicant has done what it is required to do under the licence.

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[Joseph Johnson]

I will respond to two of the points made by hon. Members. On early visibility of licence requirements, to get the industry feeling confident that it has a clear set of rules to work with, we will continue to engage with it as we develop the detailed regulations to ensure that the legislation facilitates and supports development in the sector and provides operators with the confidence to move forward with their plans. In addition, as has been said, regulators will be holding extensive pre-licensing discussions with potential operators in order for them to provide more detailed guidance.

[Karl Turner]

I thank the Minister for his response and I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 9 ordered to stand part of the Bill.

Clause 10

Grant of spaceport licence

[Karl Turner]

I beg to move amendment 15, in clause 10, page 8, line 27, leave out ‘satisfied that’.

This amendment ensures that two defined criteria steps are properly defined for granting an application for a space port licence.

The amendment is intended to make the legislation clearer about the regulator not granting an application for a spaceport licence “unless satisfied that”—this is from the Bill—

“the applicant has taken all reasonable steps to ensure that risks to public safety arising from the operation of the spaceport are as low as reasonably practicable, and…any prescribed criteria or requirements are met.”

Speaking purely as a lawyer, I thought the legislation would be clearer to remove “satisfied that”, but on reflection that is probably just semantical. I therefore beg to ask leave to withdraw the amendment.

[The Chair]

The Minister might want to say something.

[The Chair]

Ah! You are getting a little ahead of yourself, Minister.

Amendment, by leave, withdrawn.

Clause 10 ordered to stand part of the Bill.

Clause 11

Terms of licences

[Karl Turner]

I beg to move amendment 16, in clause 11, page 8, line 37, leave out subsection (2).

This amendment removes the specified limit they must pay in damages to an uninvolved third party in the event of an accident in operator licences.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 5, in clause 11, page 8, line 37, leave out “may” and insert “must”.

This amendment places a definite cap on the amount of a licensee’s liability.

Amendment 6, in clause 11, page 9, line 12, at end insert—

“(7) Within 12 months of this Act coming into force the Secretary of State must lay a report before Parliament setting out plans on what an appropriate maximum limit would be on the amount of the licensee’s liability under subsection (2).”.

This amendment would ensure that the Secretary of State decides on what level the mandatory cap for the licensee’s liability is.

[Karl Turner]

The amendment relates to the terms of spaceport and space operator licences. I propose to remove the specified limit that must be paid in damages to an uninvolved third party in the event of an incident in the operator’s licences. Clause 11 concerns the terms that may or must be included in a licence issued under the Bill authorising spaceflight activities, the operation of a spaceport or the provision of a range control services.

Colleagues in the other place were concerned about the particular wording of this section. We have heard that the amount of liability may be capped. The Minister will correct me if I am wrong, but I think it was mentioned on Second Reading in the Commons that a limit of £20 million had been suggested. I would like the Minister to clarify the issue of the cap, and that is why we have re-tabled the amendment. Although I declare an interest as a lawyer, I did not practise personal injury law and this is not my area of expertise. However, it seems to me that £20 million would cover two very serious non-fatal incidents. It would not be anywhere near enough to cover costs such as living costs and other issues that would arise from serious injury.

I want to know from the Minister, if he is prepared to tell me, whether there is a limit on how much the operator or the Government must pay in damages to an uninvolved third party in the event of an incident. It is also not clear who pays if the losses exceed the proposed cap. Are the Government the insurer of last resort? In the unlikely event of a catastrophic incident, would the Government meet the excess above any cap?

We are certainly not opposed to a cap. We just want some clarity on the issue. Therefore, I would be grateful if the Minister could clear up some of these concerns, which were also raised in the other place, where they were very well put.

[The Chair]

As we will also debate amendments 5 and 6 now, it seems appropriate to have the stand part debate too.

[Joseph Johnson]

Clause 11(2) provides a power for a licensee’s liability to indemnify the Government under clause 35 to be capped in an operator licence. Amendment 16 would remove that vital power. Under both this Bill and the Outer Space Act 1986, operators have a liability to indemnify the Government against claims for damage or loss from foreign states and their nationals. That is to ensure that we meet our obligations under the UN space treaties.

However, satellite operators have previously raised concerns that such a liability is a barrier to operating in the space industry. Operators found that the unlimited liability made it difficult to raise finance or to insure against. The Government have therefore responded to those concerns.

The unlimited liability provisions under the Outer Space Act were amended by the Deregulation Act 2012 and since then licences issued under that Act for the procurement of an overseas launch and the in-orbit operation of a satellite benefit from a cap, which is set out in licence conditions.

The UK Space Agency publishes the usual level of cap in its guidance, which currently sets the cap at €60 million for standard missions. Crucially, however, the level is not set by statute, so the cap can be varied depending on the risk of the activity in question. Some activities currently regulated under the Outer Space Act, notably procuring the launch of a space object and the operation of a satellite in orbit taking place from the UK, will be regulated under this Bill in future, and it is the intention to continue to exercise the discretion to cap the liability to indemnify Government in these licences.

Therefore, following Royal Assent of this Bill, amendment 16 would reverse current Government policy and disadvantage satellite operators in the UK. Conversely, amendment 5 seeks to ensure that all operator licences must cap the liability to indemnify the Government under clause 35. Amendment 6 would then go on to ensure that the level of this cap would be set out in a report to Parliament.

I understand clearly that the intent of these amendments is to support operators in the UK and the Government welcome support for that principle, which is why we have included this power in the Bill. However, these amendments are premature. The cap on the indemnity to the Government under the Outer Space Act was based on many years of licensing the procuring of the launch of space objects and of the operation of satellites in orbit. Indeed, it was not put in place until more than 25 years after that Act gained Royal Assent. The costs and benefits of capping liability for those activities were fully considered and were subject to a full consultation with industry. We intend to take a similar approach to considering capping a launch operator’s liability to Government under this Bill, as launch is a new activity in the UK and poses more risks for the UK as a launching state.

As I said on Second Reading, we intend to announce a call for evidence on all issues relating to insurance and liabilities early this year, following Royal Assent. That will allow us to start to assess the appropriateness of a cap for this new and potentially riskier activity, balancing the economic benefits of such activity with the need to protect the taxpayer.

On that basis, I hope that the hon. Member for Kingston upon Hull East will withdraw the amendment.

[Karl Turner]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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[Karl Turner]

I beg to move amendment 17, in clause 12, page 9, line 41, at end insert—

“(ea) must consult the Environment Agency or (as appropriate) the Northern Ireland Environment Agency, the Scottish Environment Protection Agency or Natural Resources Wales;

“(eb) must consult any relevant local planning authority;”

This amendment ensures that the devolved Administrations are consulted in regards to respective Environment Agency bodies.

[The Chair]

With this it will be convenient to discuss amendment 18, in clause 12, page 10, line 4, at end insert—

‘(9) In subsection (6) a “relevant local planning authority” means a local planning authority with jurisdiction over any location which would be significantly affected by the licence application.”

This amendment defines ‘relevant local planning authorities’.

[Karl Turner]

I will be brief, Mr Bone. The amendments aim to tighten up some of the ambiguous wording in the Bill. They are intended to ensure that if space activities were to be established under any of the devolved Administrations of Scotland, Northern Ireland and Wales, their respective environment agency bodies would be consulted before any decision was made on granting an operator licence in their jurisdictions. Will the Minister assure us that he will ensure that the regulator will properly consult the Northern Ireland Environment Agency, the Scottish Environment Protection Agency or Natural Resources Wales, as well as any relevant local planning authority, before an operator can be granted a UK spaceport licence?

I tabled amendment 18 with the aim of properly defining a “relevant local planning authority”. We believe that the Bill is too vague and have expanded on its wording to ensure that a local planning authority is defined as an

“authority with jurisdiction over any location which would be significantly affected by the licence application”.

I have seen the Minister’s collegiate approach to the Committee and hope that he will note Opposition concerns, and I shall be happy to withdraw the amendment if he addresses the important points I have raised.

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[Joseph Johnson]

I would not want the Committee to think that we have not been engaging closely with the devolved Administrations in the development of the Bill, because we have, and over a considerable period. We have worked with Scotland, Wales and Northern Ireland at official level to ensure that all the devolved Administrations are content with provisions in the Bill. I have been out in Northern Ireland myself to discuss the opportunities this Bill presents to businesses there.

[Karl Turner]

While these amendments intend to ensure that the respective environmental bodies would be consulted were space activities to be established in any of the devolved Administrations—Scotland, Northern Ireland and Wales—I do not think the Government have gone anywhere near far enough on that. On that basis, I want to push the amendment to a vote.

Question put, That the amendment be made.

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[Joseph Johnson]

I am happy to provide further details about our common approach to space debris, if that would be helpful, and undertake to do so.

Question put and agreed to.

Clause 28 accordingly ordered to stand part of the Bill.

Clauses 29 to 31 ordered to stand part of the Bill.

Clause 32

Power to authorise entry etc in emergencies

[Karl Turner]

I beg to move amendment 19, in clause 32, page 23, line 31, at end insert—

‘(4A) An enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours, following the 48 hour period under subsection (7) in which the enforcement authorisation remains in force.”

This amendment provides that an urgent enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours, following the 48-hour period under Clause 32(7) of the Bill, during which the enforcement authorisation remains in force.

The amendment provides that an urgent enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours following the 48-hour period under subsection (7), during which the enforcement authorisation remains in force. The amendment aims to clear up any ambiguity surrounding clauses 31 and 32, which grant warrants authorising entry or direct action and powers to authorise entry in emergencies.

Clause 32(2) permits a named person to do anything necessary for protecting national security, securing compliance with international obligations or protecting health and safety. My colleagues in the other place raised concerns about emergency warrants and such vague wording. The power conferred by clause 32 is very extensive and broad. It contains no thorough judicial oversight. The Minister is well aware that the House of Commons Science and Technology Committee also expressed concerns about this aspect of the Bill, which was obviously mentioned in detail in the other place.

We welcome the fact that the Government reduced the authorisation period from one month to 48 hours, which limits the Secretary of State’s power to a degree. However, we still have concerns that such significant and wide-ranging powers will be exercisable without anticipatory or rapid post hoc judicial involvement.

Currently, there is not enough in the Bill to check whether the powers granted under clause 32 will be appropriately or proportionately used by the authorised person. The Minister in the other place stated that the amendment would “impose unhelpful bureaucracy”. We believe that judicial oversight of emergency warrants is crucial to ensure that such excessive powers are not abused, and we do not believe that we are asking for anything unreasonable. Having checks in place to ensure that this extensive power is not misused will improve the Bill. It is not, as stated by the Minister in the other place, “unhelpful bureaucracy”. I hope the Minister can give assurances that the Government are listening to those concerns and will take them on board.

[Dr Whitford]

I rise to support the amendment. Clause 31 refers to the seeking of warrants from justices of the peace, where there is time to do so. Clearly, there will be situations where that is not reasonable and therefore we accept that there is a need to allow emergency entry— 48 hours should be sufficient to allow that warrant to be reviewed by a justice of the peace. We welcome that the Government reduced emergency entry from a month to 48 hours, but it is perfectly reasonable that it should be looked at by a justice of the peace within two days.

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[Joseph Johnson]

The enforcement authorisations would be a last resort where the regulatory bodies in question felt that it was absolutely imperative to have one in the interests of our national security, or for the pursuit of our international obligations, or the health and safety of individuals in and around the spaceport or elsewhere in the UK. It is very much a power of last resort. Given the nature of the activities being undertaken at spaceports, everyone should be able to see the need for such provisions.

[Karl Turner]

I hear what the Minister says, but he seems to be saying that, because there is no precedent for a justice of the peace to review such warrants, it is not necessary. He also said that judicial review is available, but he must appreciate that the threshold to succeed in judicial review is very high and that it is extremely costly to the party bringing the proceeding. Frankly, he has not gone anywhere near far enough, and for that reason I am pressing the amendment to a Division.

Question put, That the amendment be made.