Space Industry (Indemnities) Bill

Lord Ranger of Northwood Excerpts

Friday 5th September 2025 Lords Chamber

[Lord Ranger of Northwood (Con)]

My Lords, I support the Bill and the efforts of the noble Baroness, Lady Anelay, and others in bringing it forward. This legislation is not simply about the space sector and risk management; it is also about our national ability to participate fully in the next wave of technological progress. As such, I note my registered interests and my various roles in the technology sector.

Not a day goes by when we do not find ourselves discussing the possibilities of frontier technologies: artificial intelligence, advanced connectivity networks such as 5G and even 6G, and the extraordinary opportunities presented by big data. But we must be clear: these are not stand-alone innovations. They are increasingly interdependent, and at the heart of this interdependence lies the space industry.

Every AI-driven service that requires vast streams of real-time data relies on satellites to collect and transmit it. Our connectivity networks, which underpin modern-day commerce, defence and education, are strengthened by satellite constellations ensuring global coverage. The ability to process and analyse big data on climate, agriculture, transport and health is fundamentally reliant on earth observation from space.

Let me give some practical examples. In agriculture, AI models use satellite imagery to guide farmers on how to reduce fertiliser and water using increasing yields and reducing costs and emissions. In disaster response, rapid satellite data allows emergency services to direct help where it is needed most, with AI helping to interpret the images in near real time. Even our ambitions for autonomous vehicles will be inseparable from satellite-driven positioning systems and resilient connectivity networks.

The Bill addresses a critical barrier to unlocking the future because, without it, the risks created by indemnity and insurance requirements threaten to become a handbrake on growth. Consider a UK satellite launch operator required to take on unlimited indemnity for third-party liability. The result is predictable: either it cannot secure affordable insurance or investors will simply take their capital to countries where the rules are clearer and the risks more proportionate. That means lost investment, lost innovation and lost jobs for the UK. Take the example of a start-up developing a new earth observation service. If it faces uncertain liability rules for even a minor satellite collision or debris incident, the chilling effect on venture funding is immediate. We are all well aware that, in an ever-competitive global economy, capital and talent are mobile. Unless we create a framework that provides confidence, those opportunities will pass us by very quickly.

The Bill’s “may” to “must” amendment brings balance. It ensures that liability is proportionate, that operators can secure insurance on a rational basis and that the UK can send a clear message, as the noble Baroness mentioned, that we want to be the best place in the world to build, launch and operate in space. Without this, the UK’s ability to leverage AI, connectivity and big data—those frontier technologies that will define the coming decade and beyond—will be constrained by something as mundane, but as fundamental, as an unbalanced indemnity regime.

Supporting the Bill is about more than space; it is about ensuring that Britain has the confidence, the regulatory framework and the vision to lead in the industries of tomorrow. I support the Bill.