European Organization for Astronomical Research in the Southern Hemisphere (Immunities and Privileges) (Amendment) Order 2018

Lord Ahmad of Wimbledon Excerpts

Wednesday 9th May 2018 Grand Committee

Moved by

[Lord Ahmad of Wimbledon]

That the Grand Committee do consider the European Organization for Astronomical Research in the Southern Hemisphere (Immunities and Privileges) (Amendment) Order 2018.

[The Minister of State, Foreign and Commonwealth Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I am sure that I speak for myself and the noble Lord, Lord Collins—perhaps more for him than for myself. I am sure that he saw a captive audience at the back of the room; he was very impressed by the fact that we would have someone looking in. That was quickly diminished because, as noble Lords can see, the captive audience is made up of my officials.

I welcome the noble Lord, Lord McNally, and my noble friend Lady O’Cathain to the debate. It is good to hear that this issue has interest in it. The order is interesting. As the noble Lord, Lord Collins, will no doubt remember, the order was laid before the House on 29 March. It amends the European Space Agency (Immunities and Privileges) Order 1978 and the European Organization for Astronomical Research in the Southern Hemisphere (Immunities and Privileges) Order 2009. I am sure that those orders are well-known to my noble friend Lady Goldie.

I start with the importance of the space sector. The European Space Agency and the European Organisation for Astronomical Research—also known as the European Southern Observatory, or ESO—are both important to the UK. We contribute more than £20 million annually to the ESO budget, for a share of just over 16%. We also contribute more than £300 million to the European Space Agency, making the UK the fourth-largest contributor. We are one of only six countries to host a European Space Agency, at the European Centre for Satellite Applications and Telecommunications in Harwell, Oxfordshire. This centre is a vital part of our strategy to develop the UK space sector—an area I know well from my time as a Minister at the Department for Transport. This is an important sector for the development of the UK economy in the future. The centre provides a focal point to showcase UK capability and partnerships. Working in partnership with the ESA, we are planning to develop an extension to our Oxfordshire campus which will house a meeting and exhibition space and a new conference centre. This will provide benefits not only to the space sector but to all sectors involved in the use of satellites, which currently contribute £250 billion to the UK economy. The space sector offers significant research and economic opportunities for the United Kingdom. British academics and businesses working in the sector are recognised internationally as leaders in the field and are in a strong position to take advantage of those opportunities.

I turn to the details of the order as it relates to each organisation. I turn first to the European Space Agency, established by a convention in 1975. The United Kingdom acceded to the convention and joined the agency the same year—although we had been collaborating with other European countries in this field for some decades before that. In 2013 we welcomed the European Centre for Space Applications and Telecommunications to Harwell in Oxfordshire. This order amends the European Space Agency (Immunities and Privileges) Order 1978, which afforded privileges and immunities to agency staff and high ranking officers. The revision confirms the immunities and privileges to which staff are entitled and the number of high-ranking officers that the UK will recognise.

Specifically, it confers the status of high-ranking officer on the head of the Harwell centre, and also provides for the ESA director-general and a maximum of seven further members of staff working at the centre to be considered high-ranking officers. This means that they are entitled to certain privileges and immunities, including exemptions from social security contributions. They are not, however, entitled to immunity from suit or legal process, except for actions carried out during their official functions or inviolability of residence. These high-ranking officers play a significant part in shaping ESA policy, and are world leaders in their field. The presence of high-ranking officers at the space centre in Harwell strengthens our capability and credibility and is crucial for the growth of the UK space sector and for attracting inward investment.

I want to reassure noble Lords that the privileges and immunities afforded to officers of the agency are limited to those that are required for them to conduct official activities. They are in line with those offered to officers of other international organisations of which the UK is a member.

If I could perhaps pre-empt questions before they are asked: leaving the European Union will have no direct impact on the UK’s membership of the European Space Agency. The ability for UK staff to work effectively for the organisation before and after the UK’s departure from the European Union is controlled by our adherence to legislation that accurately reflects the convention and its protocol and the privileges and immunities it affords to staff.

I now turn to the European Organisation for Astronomical Research in the Southern Hemisphere. The Committee may recall that some of the provisions of the order that relate to that organisation were debated in this House early last year. That earlier version of the draft order exempted only high-ranking officers of ESO from social security contributions. Having reconsidered the position, my department came to the view that we can properly exempt all members of staff from these contributions. We regret that this issue was not addressed fully during the debate on this order on 30 March last year. Rather than continuing with the 2017 draft order and amending it in short order, we have decided it would be better to lay this further amending draft order and to include in it the new provisions in relation to the ESA, which were not contained in the 2017 draft order. I beg to move.

[Lord McNally]

My Lords, I address the orders, which I welcome and see as perfectly sensible for international organisations. I have two particular points. Yesterday, we debated in the House how Parliament will deal with the tsunami of SIs that are coming our way as a result of Brexit. As the Minister has just done in his conclusion, I draw attention to the fact that these orders contain three apologies for errors in previous orders and two corrections. This is a fairly simple, straightforward endorsement of the workings of multinational organisations in our country and abroad. There were five mistakes in one SI. With the best intentions in the world, we have to look at the real problems we will have in dealing with statutory instruments and the need for accuracy and effectiveness.

I can see a little scepticism in the room about me talking about the space industry. That is one of the great things about being in the House of Lords. I served as one of the main spokespeople for the party on the Space Industry Bill. We greatly enjoyed taking it through, but I immediately started getting letters that began with, “As an expert on the space industry”. I am not an expert but I should declare that my son, James, is a space engineer working in Munich for a Franco-German company.

My views are all my own and they impinge on the way in which the Minister introduced these orders, with reference to the space industry. I agree with the Minister that the prospects of the space industry are among the most exciting that face us. I am very proud that, under the coalition Government, the noble Lord, Lord Willetts, and Vince Cable did a lot to reinvigorate the space industry. I am reading Ken Clarke’s memoirs at the moment. He talks about the 1980s, when he was in the DTI, and how he and most of his colleagues had little interest in the space industry as a growth industry for the future.

Now, it is the exact opposite. There is tremendous excitement and a great deal of potential there. The Government have done a lot of good things since 2015 to carry the industry forward. I understand that the legislation covering the European space industry and other international commitments relating to space has nothing to do with our membership of the European Union. As I said, my son works in a Franco-German company; he works with Poles, Italians, Germans and the French as well as Brits. It stretches credulity not to imagine that an organisation such as that, which depends so much on international co-operation, will find it more difficult outside the EU to partner.

Space ports are a good example. When Europe looks for its space port, I wonder whether the Scottish, Welsh or Cornish bidder will have a better chance than the Portuguese when Europe makes its decision. It is the same with Galileo: we have already seen the removal of one of the Galileo preparatory units from Portsmouth back to mainland Europe. We have to face the fact that what is a very exciting industry will have some question marks over it, because of the decision on our membership of the EU. I once saw a very interesting documentary about what is going on down in Chile—although the ESO headquarters are in Munich, not where my son works, its main work is of course down in Chile. The documentary showed that it is exciting and right at the cutting edge of space exploration.

My only words to cloud this optimism is that I remember very clearly where I was 50 years ago, when man landed on the moon. Those of us who were alive then could not imagine that, 50 years later, we would have made so little progress in space exploration. On the other hand, my father, who was born in 1899, used to talk about how, as a boy growing up in Liverpool, he remembered seeing the first aeroplanes flying and what happened to flight in the 20th century. What I learned from the Space Industry Bill is that the space industry is probably where they were in the early 20th century and that it could make similar amazing progress. Along with that, the progress regarding satellite technology, deep space probes, the mining of asteroids and so on are on the agenda of our scientists and could make a massive difference to the century ahead.

I support the passage of the regulations, but I just give those two gypsy warnings about the difficulty of dealing with the SI tsunami that we face and the problems of making our space industry viable outside EU partnerships. Again, some of us are old enough to remember Blue Streak and other adventures into space and that going it alone did not work.

[Lord Collins of Highbury (Lab)]

My Lords, I know it is late in the day, so I will try not to bang on too much. I must admit, I did not expect to be making this speech again; as one of my brothers in the trade union movement used to say, it is déjà vu all over again. I do not know whether the Minister has had the opportunity to read the Lords Hansard from the last time we had this order but, if he has not, I will remind him of some of the contributions that I made. One mistake I made the last time we debated this order is that I managed to speak without saying the words, “the European Organisation for Astronomical Research in the Southern Hemisphere”. I realised this because, when I was searching for my last contribution using the Hansard search facility, it did not bring up my contribution, as I had managed to not say those words. So, for the record, I have said them now, so that just in case we have to return to this subject again, I know I will be able to find it.

I appreciate the contribution made by the noble Lord, Lord McNally, and I share his sentiments completely, and those of the Minister, about the importance of this. It is, strictly speaking, a sort of HR issue. This is about how we are going to treat employees of this organisation in accordance with an international treaty. I do not object to that—it is quite proper and should be done.

The concern I have is that this relates to a convention from 1962, according to the noble Baroness, Lady Goldie. We may be talking about other issues, but the protocol that we agreed to in the 2009 order—which took effect in 2012—and which we were talking about last March, was discovered to be defective in June 2014. There was a considerable period of time when this error went unnoticed but we now have to return to the subject. Last time we discussed it there were 40 employees: 38 in Chile and two in Germany. What is the score now? How many people are we talking about? What has been the impact of this error? Have people suffered a detriment? What is the cost to those individuals? If there has been a cost or a detriment to these individuals, what is the Foreign Office doing to address that? Will there be some form of retrospection?

When the Minister, Sir Alan Duncan, wrote to me, he acknowledged the parliamentary time that had been taken up and he regretted that it had been wasted. I accept that errors and mistakes happen, but this order has had a rather unfortunate journey, and I think we need an explanation. We need an assurance that things will be put right, and that the error has not resulted in people suffering a detriment. It may be that over this period of time, people have gone into and out of employment, which may complicate matters even more. I do not want to put too many onerous questions to the Minister. We have had a busy day already and are at the final hurdle but I hope that he will be able to answer me. The noble Baroness, Lady Goldie, was unable to answer me last time but I am hoping that the Minister will be able to on this occasion.

[Lord Ahmad of Wimbledon]

My Lords, I am very grateful to the noble Lord, Lord Collins, and the noble Lord, Lord McNally, for their contributions. As we have agreed, being part of the European Space Agency brings real opportunities for British industry. Our scientists and engineers collaborate with their European colleagues at the European Space Agency to deliver important advances. Let us not forget that in 2018—the “Year of Engineering”—the inspiration that the European Space Agency provides is even more significant.

The amendment order puts in place the necessary immunities and privileges to allow the European Space Agency to operate effectively in the UK. It also aligns domestic law with obligations we have to our European colleagues at the European Space Agency, with whom we share an interest in increasing our knowledge of space. As both noble Lords have said, it also corrects errors in the order relating to the European Organisation for Astronomical Research in the Southern Hemisphere —it comes off the tongue so smoothly that I am sure we will all remember it for future reference. There may be a test in a year’s time—hopefully not in the Chamber. Just as we benefit from our association with the European Space Agency belonging to this organisation, also known as the ESO, opens up a galaxy of opportunities for our scientists_. I notice that my officials have used real space terminology. The UK’s commitment to both the European Space Agency and—here we go again—the European Organisation for Astronomical Research in the Southern Hemisphere remains unchanged.

I have already referred in my opening remarks to the regret that we have. Let me assure the noble Lords, Lord McNally and Lord Collins, that as the noble Lord, Lord Collins, just said, the journey which this order has been on has been turbulent. I understand totally their concern at the errors which were made in the order. The process is important. Let me assure the Committee that my department takes this issue very seriously. After the previous time this order was debated my noble friend Lady Goldie, who took that debate, followed up on it and we put right many of the clearance processes and revised our internal procedures for such orders. Although I cannot guarantee that there will be no error in any order in future, I can say on the record that our processes should pick up an error before orders are laid before Parliament. I totally empathise and align myself with the sentiment that we need to get this right.

The noble Lord, Lord McNally, talked about the tsunami of SIs which awaits us. It is important to ensure that in the approach we take when we lay orders in your Lordships’ House, and in the other place as well, the work is done and our processes reflect the importance that is attached to these issues.

The noble Lord, Lord Collins, asked about the staff. For clarity, let me say that the provision would apply only to those who are UK staff or UK nationals working in the UK. In this case, there are 42 employees who are UK nationals and ESO staff but none is currently in the UK. All are in Germany or Chile. We would therefore need to interrogate individual employee records since, as the noble Lord said, people may have moved locations. When he raised this issue with my noble friend previously, we said that we would put right any wrong in this respect. I can reassure him that, as I said, there are currently no such UK nationals employed in the UK. On the last occasion, the Government also undertook to treat sympathetically—I think my noble friend used that word—any approach made by any employee caught up in such a situation. I can confirm on the record that we have not been approached by any individual in that regard, but I assure the Committee that we will keep a watch on this. If there are any implications, I will certainly share them with the noble Lords concerned.

I hope that I have given reassurance to the noble Lords, Lord Collins and Lord McNally, about the importance of the procedure that should be deployed on statutory instruments in general, and specifically on this order. I hope that this is the end of it on this legislation. The noble Lord, Lord McNally, talked of how people are inspired and said that his son is employed in the space agency. We learn a lot from our children. After a conversation about space, I may have two aspiring astronauts: a six year-old called Mansoor and a four year-old called Faris. I am not embarrassed to admit that when my four year-old said, “Daddy, how many planets are there in the solar system?”, I responded with the figure nine. He said, “No”. I named them and he went, “Daddy, Pluto is not a planet. It’s a dwarf planet”.

We live and learn from our children, from our elders and seniors and from noble Lords. In doing so, we all align ourselves with this important industry and we want to inspire not just the current generation, as taken up by the son of the noble Lord, Lord McNally, but future generations. Maybe at some point in time when my six year-old and my four year-old understand the concept of statutory instruments, I shall share this chapter of their father’s life with them as well. I am grateful to noble Lords for their contributions.

Motion agreed.