Space Industry Bill [HL]

Lord McNally Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Wednesday 18th October 2017 Lords Chamber

Moved by

[Lord McNally]

37: Clause 36, page 26, line 18, after “misconduct” insert “or gross negligence”

[Lord McNally (LD)]

It is always a pleasure to follow the noble Lord, Lord Tunnicliffe. He is the reason why I do not have a fear of flying. When I am sitting at the back—and it is always at the back—of a 747, I always assume that there is somebody up the front who knows a lot about getting it up and down and who has just the same reason for getting it up and down safely as I do. His interventions are important because there is a danger that we treat what we are talking about as just an extension of present civil aviation, and it is a step change, a quantum leap in what we are doing. In his first intervention, the noble Lord, Lord Tunnicliffe, pointed out that rockets are explosions, very possibly dangerous explosions at that.

This amendment strengths the test for the regulator to be liable in respect of spaceflight-related actions to include gross negligence as well as wilful misconduct. I am hoping it is just one of those things that got left out and that when the Minister sees the House of Commons Science and Technology Committee’s recommendation that such wording should be in the Bill he will stand up and say that he will make sure that it is. Given the central role of the regulator in determining how large aspects of spaceflight should be conducted, it seems fair and logical that it should have its protection removed in case of gross negligence.

The noble Lord, Lord Tunnicliffe, spoke about legislation being drafted nearly 100 years ago to stimulate a nascent industry. We are trying to do that in the Bill, but in so doing we have to make sure that there are also checks and balances to ensure that in making this step change in travel, those responsible have checks and balances on their behaviour that contribute to safety. I beg to move.

[Lord Callanan]

My Lords, I thank the noble Lord, Lord McNally, for raising this important issue. This clause sets out that a regulator and persons listed in subsection (2) are not to be held liable for their actions or omissions in relation to spaceflight activities or associated activities.

The primary concern of the Bill is to secure safety. As regulators of spaceflight activities, we will take all steps possible to ensure that the risks to the public are as low as reasonably practicable and that all spaceflight activities are carried out as safely as possible. However, given the nature of the activities, the regulator cannot guarantee that all the risks can be eliminated. I highlight that without such a clause, a regulator may be reluctant to take any action in relation to spaceflight activities—for example, licensing that activity—because of concerns that they will be subject to claims, in negligence or breach of statutory duty, in the event of loss or damage arising from regulated spaceflight and associated activities. This would inevitably affect the growth of the sector.

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We need to strike a balance here because this is a new activity for which safety cannot be guaranteed. Our view is that a gross negligence test would be inappropriate, and that the wilful misconduct test is more appropriate as it protects a regulator who is acting in good faith. Quite rightly, though, we are not proposing to protect a regulator that intentionally does something wrong. On those grounds, I commend the clause and ask the noble Lord to withdraw Amendment 37.

[Lord McNally]

My Lords, I notice a couple of noble and learned Lords in the Chamber today, and I would be interested to see how they wrestled with that reply. I will of course withdraw the amendment now but I would like to consider the issue further and perhaps bring it back on Report, because there is an issue here that we may want to explore further. I beg leave to withdraw the amendment.

Amendment 37 withdrawn.