Space Industry Bill [Lords]

Nigel Evans Excerpts

2nd reading: House of Commons
Monday 15th January 2018 Commons Chamber

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

I beg to move, That the Bill be now read a Second time.

Very few people realise just how important the space industry is to our daily lives. Satellites, in particular, provide many critical services that we all take for granted. Navigation satellites provide the precision timing needed to enable global financial transactions. Weather satellites enable farmers and the emergency services to plan how best to protect people, property and produce from extreme weather, and provide unique insights into our changing climate. Communication and imaging satellites let us monitor disasters and threats to our national interests, and allow us to watch and react to live news events unfolding anywhere on earth.

Satellites, a specialty of the British space industry, play a crucial role in our economy, supporting more than £250 billion of our GDP. In the future, tens of thousands of new, smaller satellites are planned, creating a global launch opportunity worth £10 billion over the next 10 years. This is an opportunity that the UK is well placed to pursue. Our long coastline, aviation heritage, engineering capability, thriving space sector and business-friendly environment all make the UK attractive for new commercial launch services. We already license space activities that are carried out by UK companies from other countries, but we could carry out space activities from our own shores. We have already announced a £50 million programme to kick-start markets for small satellite launch and sub-orbital flight from UK spaceports as part of our industrial strategy, and we have received 26 separate proposals for grant funding.

[Mr Nigel Evans (Ribble Valley) (Con)]

I am a small shareholder in ManSat and president of the parliamentary space committee. The Minister said that satellite technology is one of this country’s specialities, but is he as concerned as I am by what I read in the newspapers about British companies being frozen out of bidding under the Galileo project owing to Brexit?

[Joseph Johnson]

I thank my hon. Friend for his question. That is a subject of some concern and one that I had occasion to raise on numerous occasions with Commissioner Bieńkowska in my previous role as Science Minister. We want to ensure that our space sector continues to be able to compete on a level playing field, and, as long as we are full members of the European Union, we have every expectation that businesses should to be able to bid and win contracts under programmes such as Galileo and Copernicus.

Through this Bill, we seek to be a global exemplar of good regulation by balancing the need for flexibility and foresight with an absolute commitment to public safety. As such, the Bill provides a framework for the development of more detailed rules in secondary legislation, supplemented by guidance and supported by a licensing regime. The Bill was developed by my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes) by drawing on expertise from across Government, including the Department for Transport, the Department for Business, Energy and Industrial Strategy, the UK Space Agency, the Civil Aviation Authority and the Health and Safety Executive. I also express my thanks to the wide-ranging scrutiny carried out by noble Lords in the other place, which was done with enthusiasm as all parties acknowledged the importance of the Bill and wanted to make it a success. The Bill that is being considered by this House is now better as a result of their hard work. I hope that that collaborative attitude will govern the passage of the Bill through this House. The collegiate approach to the development of this Bill, which my right hon. Friend spearheaded, will continue as we develop secondary legislation, consulting on key issues and providing confidence to the public and investors that the UK will develop safe, business-friendly regulation in the public interest.

The Space Industry Bill is necessarily broad in scope, but it benefits from the experience and best practice of international launch, as well as our own world-class aviation regulator, resulting in a safe, proportionate and comprehensive enabling framework in one piece of legislation. In turn, the activities defined in this Bill and its subsequent regulatory framework would benefit many in the UK. Entrepreneurs would benefit from new opportunities to build innovative commercial enterprises. Local economies would benefit from the creation of spaceport sites with related jobs. Our small satellite industry would have direct access to domestic launch capacity, reducing dependence on foreign launch services.

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[Mr Nigel Evans]

Will my right hon. Friend give way?

[Mr Hayes]

This is going to be a relatively short speech, but I am happy to give way to my hon. Friend.

[Mr Evans]

I am more past than future, that is for certain, but I am as excited as my right hon. Friend about the potential for space development, particularly in a multi-billion industry in the UK, which is growing at an incredible 8% a year. As we have the desire to put more satellites into space, so that we can do all these wonderful things he has spoken about, is he happy and content that the Bill gives sufficient regard to debris mitigation to ensure that we are not just putting more junk for the future into space?

[Mr Hayes]

To avoid delaying the House unduly, I refer my hon. Friend to Room, The Space Journal, which contains an article that I was reading just this weekend on exactly that point. It is headed “Space debris break point” and sets out precisely the kind of risks and problems he highlights. It is unsurprising he does so, given his interest in this subject and the expertise he has gained in it over many years. I am sure that reading that will allow him to take the matter further, perhaps by tabling some difficult written questions for the new Minister, of the kind that my officials used to bring to me, not just often, but daily. I merely echo what he and others have said: that the UK space industry is indeed a leading world player. The income for the industry in 2014-15 was reported at £13.7 billion, which is equivalent to 6.5% of the global space economy. As has been said, it is a rapidly growing industry. It is growing much faster than the economy as a whole. This is something we do well and can do still better, but only if Government play their part.

So what is that part? It is definitely about creating the legal framework necessary to build certainty. Investors will not spend money in the UK space industry, or will not continue to do so, unless they know that the legal framework to provide appropriate protections is in place. Secondly, it is about facilitating and encouraging the co-operation that is at the heart of the industry. I refer to the co-operation between the world of academia, industry and Government. That is what Reaction Engines, for example, embodies; it is an example of such co-operation, and others are too. Thirdly, it is about trying to anticipate those future changes, although not to stipulate them and certainly not to constrain any of the organisations involved in the sector, because, as I have said, there will be secondary legislation. This is just the beginning of a journey—a journey into space, one might say—which is certainly not definitive. It could not be so, because of the nature and the character of the technology with which we are dealing.

There are, though, some challenges with the Bill. I acknowledged them as Minister and know that the current Minister will do so too. There are certainly challenges in respect of liability. I would be surprised if, in our scrutiny of the Bill, we did not face up to that and ensure that the sector feels no doubt about the effect on the wider public of any changes that follow the advent of launch facilities in the UK.

This is not a lesson to the current Minister, because he is already experienced, but it is a lesson to newer Ministers. It is true that some—they may even be civil servants—will say, “But what about state aid, Minister?” There are those who will say, “But what about the Treasury, Minister?” These are always the stock lines. The first is, “The Secretary of State doesn’t agree with you,” to which one says, “I’ve cleared it with the Secretary of State.” They then say, “Downing Street’s not happy,” and one says, “I have been to Downing Street.” They then say, “The Treasury will never wear it,” and finally state aid gets pulled out—“It won’t pass the test of state aid.” I take the simple view that the purpose of a Government is to aid those whom they serve. We should support British industry and the British people. I have never been entirely convinced by the arguments about state aid; what is the purpose of a state if it does not aid the circumstances of the people it serves?

I urge caution—I put it no more strongly than that—that in our consideration of liability we do not allow ourselves to do less than we should. We must leave no third party worse off as a result of anything that occurs in this industry and which follows the Bill. We must leave no one feeling vulnerable and no business feeling that anything that results from the Bill might lead to a vulnerability that might prevent further development of or investment in a technology. The liability issue must be settled.

The second challenge is that of skills. It is known that I take a profound interest in the development of skills and we have made great progress in recalibrating our estimation of the importance of technical, vocational and practical skills. I have long believed that it is those skills, aptitudes, tastes and talents that will allow us to make the best of the opportunities that will grow as we increasingly develop as a high-tech, high-skilled nation. Our future lies in that direction, but we must have the people to make that future a reality.

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[Steve Double]

Absolutely. Newquay has several things in its favour. It has a very large runway and easy access to uncongested airspace over the Atlantic. There are literally hundreds of acres of development land in an enterprise zone ready for developing the necessary business and manufacturing that would support a spaceport. Uniquely, I believe, we also have the space enterprise zone through our partnership with Goonhilly satellite station. That makes us in Newquay very well placed to be the first UK spaceport.

Although Newquay should be the first spaceport, it should not be the only one. As the hon. Member for Central Ayrshire said so well, there will be a need for further spaceports as the industry grows in our country. I believe that we will want to be launching satellites, putting people into space and operating sub-orbital flights from across the country, not just one location, much as I would love Newquay to be that location.

[Mr Nigel Evans]

My hon. Friend will be pleased to learn that I am not about to make a bid for the Ribble Valley.

Particularly if we get more than one spaceport, that will be a great boost to industries and SMEs that are interested in space. Some may be involved in contracts with the European Space Agency, to which we gave £1.4 billion in additional funding from 2016 for five years. Does my hon. Friend agree that, irrespective of what we do domestically and of our leaving the European Union, we should continue our investment in that agency? That is not a European Union issue.

[Steve Double]

I am grateful to my hon. Friend, who makes his point well. Another concern of the UK sector is our continued involvement in the European Space Agency post-Brexit. I join him in urging the Government to continue to play an active part and to participate in that agency, as that will be essential for the industry in this country.