Space Industry Bill [Lords]

Debate between Karl Turner and Alex Sobel

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

[Karl Turner]

I rise to speak to amendment 4, which I tabled, as well as the remaining new clauses and amendments.

Amendment 4 would give clarity to the UK’s space industry. As it stands, the Bill makes no provision to ensure that the industry works with the Government to create the regulatory framework that it so badly needs. The amendment would increase the focus on making the UK commercially attractive for potential spaceflight operators. As with new clause 3, the amendment was tabled to press the Government to publish clear regulations for the UK space industry, which is one of the Bill’s key issues.

Under the amendment, the Secretary of State would have to publish guidance for any forthcoming regulations and hold regular discussions with any potential operator before a licence was issued. The UK’s space industry needs as much clarity as possible; we do not want further uncertainty that may hinder growth. If the Government do not get this right, they could quite possibly deter investment, recruitment and growth in the space sector. It will be interesting to hear the Minister’s views.

Labour Members generally support the aims of new clause 3, which was tabled by the hon. Member for Central Ayrshire (Dr Whitford). The Bill does not set out the criteria for awarding licences, and nor does it describe the procedures in any great detail, which is a problem. When I spoke to new clause 2, I alluded to the fact that Labour wants the UK space industry to grow in the coming years, but the Government need to get this legislation right and have had the opportunity to do so. The industry must be made aware of regulations. We agree that the Government should lay a report before Parliament setting out the proposed licensing regulations in detail. That is fair and reasonable.

On new clause 3(3), Labour tabled an amendment in Committee that would have ensured that if space activities were established in any of the devolved Administrations of Scotland, Northern Ireland and Wales, their respective environmental agencies and bodies, and respective Governments, would be consulted before any decision was made to grant an operator licence in their jurisdictions. Unfortunately, our amendment was defeated, so I welcome new clause 3, which presses the issue a little further.

The hon. Member for Central Ayrshire also tabled new clause 4, which deals with the liability issue that came up time and again in Committee.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

There are 40,000 jobs in the UK space industry. Would it not deter investment if the Government did not implement a liability cap for the industry?

[Karl Turner]

My hon. Friend makes an excellent point. He is right to say that 40,000 jobs rely on such a measure. Colleagues on both sides of the House have made the point that investment may be deterred if that is not in place.

New clause 4 deals with this very important issue of liability. The issue has been raised at every stage of the Bill’s consideration, both here and in the other place. Labour broadly supports the Bill, as we have reiterated throughout its passage, because we want the industry to grow so that high-skilled, high-paid and secure work is created across the country. Labour previously tabled amendments to get a discussion going about a liability cap. My colleagues in the other place tabled an amendment that would have removed any cap on a licensee’s liability, but that was merely a probing amendment with the intention of grabbing the Government’s attention so that they would seriously consider providing a definite liability cap in primary legislation. I am grateful to my colleagues in the other place for the work that they did. As I said in Committee, we were never opposed to a cap; we just wanted some clarity from the Government, as they must get this right. I think it fair to say that the Government have listened carefully to the points we made in Committee.

The UK space sector has made repeated representations to the Government that they should implement a cap for UK-licensed satellite launch operators. Britain’s space industry wants the Government to introduce a cap, I think at around €60 million. The Bill makes no mention of that, apart from the vague and lax use of the word “may”, which has now been amended to “must”. We are aware, however, that the Government stated previously—I think in Committee—that they opposed writing into legislation a mandatory cap on liability, as well as mandatory compensation from the Government, because that might breach state aid rules. I would be really grateful to the Minister if he clarified this particular point.

The industry has maintained throughout that it would not be able to secure insurance without a benchmark liability figure. The ambiguity from the Government on this issue could put off potential investment in the industry, as we have already heard, and harm the growth that the Bill sets out to achieve.

Requiring the Government to consult on and set a mandatory cap on a licensee’s liability for each launch individually, as well as basing it on the classification type of each launch, is reasonable and fair. We believe that the Government need to look again at this, and I see that the Minister is taking note of what is being said.

I will speak very briefly to Liberal Democrat amendments 1 to 3. Amendment 1 would make regulations made under clause 68 subject to the affirmative procedure. In the other place, Labour colleagues worked on a cross-party basis, it is fair to say, in an attempt to ensure that a number of the regulations under the Bill would be subject to the affirmative procedure. Labour also tabled a similar amendment in Committee. We are grateful to the Government for listening and taking on board the concerns raised in the other place, and the Bill now ensures that there is enhanced scrutiny of regulations under the affirmative procedure, which I am very glad to see.

Amendments 2 and 3 to schedule 6 are about ensuring that the devolved Administrations are notified when an order is made to obtain rights over land. In Committee, Labour tabled an amendment to ensure that, before any decisions or notices were made, there would be consultation with not only the relevant environment agencies of the devolved Administrations, but the devolved Administrations themselves. I pressed that amendment to a Division because I did not think that the Government went anything like far enough to ensure that the devolved Administrations would be involved in the overall process. Unfortunately, that amendment was defeated, but I hope that the Government have now fully appreciated its intent.