UK Space Industry

Debate between Owen Thompson and Patrick Grady

Thursday 4th February 2021 Commons Chamber

[Owen Thompson (Midlothian) (SNP)]

I beg to move,

That this House has considered the future of the UK space industry.

I am delighted to have secured this important debate today and I thank the Backbench Business Committee for allocating time for us to consider such an important topic. We all need good news stories in these difficult times, and I believe that the growing space industry, with timely and sensible support from the Government, could quite literally provide a rocket boost to the economy and be a force for good for the country and the planet.

Space is one of the UK’s fastest growing sectors, trebling in size since 2010. It will inspire the next generation and provide fantastic opportunities in science, engineering and technology. It has huge potential for the levelling-up agenda, creating highly skilled jobs right across the UK from Shetland to the south-east of England. It can also play a crucial role in measuring and meeting climate change targets. I welcome the fact that space has been recognised as a critical national infrastructure, in that we now depend on space for navigation, communication, broadcasting, running public services and increasingly for national security. It impacts all our everyday lives and has the potential to really enhance them. So while I am delighted by the recognition of the scale of the potential for space, there needs to be a better co-ordinated and determined effort to support the industry to reach its goals, and I look forward to getting the details on that from the Minister later today.

Space is already a growing success story. It supports 41,900 jobs in 13 of the regions and nations of the UK, bringing in some £14.8 billion in 2016-17. The Scottish space industry also punches well above its weight and is home to almost a fifth of the total jobs in the UK sector, valued at £880 million in 2017-18. Scotland now hosts more than 130 space organisations, including the headquarters of 83 UK space firms. We now need to build on that strong base to be globally competitive at every stage of the process from the design and manufacture of smaller satellites through to the launch and the interpretation and application of the satellite data produced. We have our unique selling points, and we are making great progress. Glasgow is now a European capital for manufacturing small satellites, building more than any other place outside California.

[Patrick Grady (Glasgow North) (SNP)]

I congratulate my hon. Friend on securing the debate. He is absolutely right about the importance of the space industry and the significance that it has for Glasgow’s economy. Research in the space sector is hugely important as well. Madam Deputy Speaker, I was sporting a University of Glasgow mask, just as my hon. Friend was sporting an Irn-Bru mask. The University of Glasgow has played a huge part in the identification of gravitational waves, for example, which is helping our understanding of the universe as well as driving forward technological developments.

[Owen Thompson]

My hon. Friend is absolutely right. Use of the data that we can gather from space is important in so many different ways that can contribute to so much that we can take forward.

Innovations by companies such as AAC Clyde Space, Spire Global and Alba Orbital are already driving this world-class agenda. We are leading the way in rocket development in Europe through firms such as Skyrora in my Midlothian constituency and Orbex in Forres. We are making progress in the research and analysis side of the industry, and companies such as Ecometrica, Carbomap and Space Intelligence are helping to move Edinburgh towards becoming the space data capital of Europe. Edinburgh is the only place in the world to work with a NASA robot, the Valkyrie, outside of its headquarters.

Key industry players such as Ukrainian-born Skyrora boss Volodymyr Levykin tell me that they moved here because of the connections, the skilled workforce and our suitability as a place to live. Scotland is developing a space industry ecosystem, and the more it develops, the more it triggers further exponential growth. The Scottish Government were therefore right to identify space as a key priority for future growth. Their support has helped to give the burgeoning young industry a shape and structure, with the ambition to be Europe’s leading space nation and capture a £4 billion share of the global space market by 2030.

The Scottish Space Leadership Council has helped to bring together key figures from the public and private sectors, to ensure that their views are represented at all levels of government and to drive growth and collaboration, but we need co-ordination across all levels of government. A space strategy has often been promised, but we are still waiting to see it delivered. I am sure those watching today’s debate will be as keen as I am to hear what the Minister has to say on that front. To take things forward, we need to get low-cost access to space from UK soil. It is good news that seven UK spaceport sites are working together through the Spaceport Alliance to support launch activity. It is also good news that the space hub to be built in Sutherland’s A’ Mhòine peninsula received planning permission last year. With locational advantages for flight paths and access to orbits that 95% of small satellite launches require, it is now set to be a national centre for vertical launch and could support 400 jobs in the highlands and islands by 2025.

Yet getting the regulations in place is at times more like moving through treacle than rocketing away into a new space future. We need to get the regulations to permit rocket launches, to give clarity about how the system will work and to get it right. The framework was set up in the Space Industry Act 2018, but it is still not in place, and we still await the outcome of the consultation process. When we hear the results, I certainly hope that the Government will have listened carefully to industry voices and taken their concerns on board. So far there has been a lot of dither and interdepartmental confusion, and unfortunately a lack of determined leadership from the Government on these regulatory issues. I might be tempted, Madam Deputy Speaker, to suggest that a rocket somewhere might be helpful, but I shall resist. However, it is not always clear who is in the driving seat, if anyone.

We cannot jeopardise the achievements of an innovative home-grown industry by letting it drift and losing out on launch capability to neighbouring nations. The Minister will be aware of the real threat of international competition to UK launch businesses. One of our home-grown companies, Skyrora, has already tested a rocket with a 26 km altitude, but it had to do so from Iceland, where the regulations were taken forward, with all the essential safety aspects, but more quickly and far more favourably than has been managed here.

The concern is that the licence application process for launch will take far too long to process, resulting in the industry being uncompetitive. I hope the Minister can assure the House in her response today that there is a development strategy in place that embraces all parts of the space industry and has a clear imperative around which the Government, regulators and industry can coalesce to ensure the full potential of space ambition.

I was slightly concerned that, despite not having our home-grown regulation sorted, the Government were so happy and keen to sign the transatlantic technology safeguards agreement, to enable US launches from UK soil, potentially to the detriment of the industry here. The TSA was signed last June and announced by press release, but the text was not made public until October. Many industry players in the UK say they did not have a chance to read and comment on the plans until that point and had not been consulted on the details, nor was there an opportunity for questions and debate in this place, despite the promise given in response to written questions that I submitted. This might turn out to be a benign agreement, as the UK Government have claimed, but there has been no process to scrutinise it, and some aspects certainly raised the concern that UK start-ups could be ousted for big US-based corporate players.

The Government must do more to allay industry fears that it could transpire to be an exclusivity agreement, and they must reassure the industry that they understand and are sensitive to the commercial context in which these companies operate. The industry remains in the dark about how the agreement will actually function in practice, and it will only see the impact once it starts to acquire export licences. That kind of scenario testing should have been conducted openly and transparently beforehand.

Some might question why we are talking about space at all, in the midst of a public health emergency and when people cannot feed their families, but space shapes all our lives. The sector helps to keep us safe, and it is precisely the sort of high-skilled growth industry that we need to support to drive the economy to recover.

There is also a responsibility—the green role that could be carved out by the space industry, which the Scottish Government are certainly very keen to pursue. Space is central to tackling environmental and social justice issues around the globe. Forget the outdated image of a space race, with astronauts boldly going where no one has gone before. The future will be very much focused on making things better where we are now. Data from satellites plays a crucial role in the fight against climate change and finding solutions for major issues that scar our planet. Some 35 of the 45 essential climate variables defined by the UN are measured from space. Similarly, of the 17 sustainable development goals set by the UN with an aim of ending poverty by 2030, satellite data plays a critical role in 13.

Data from earth observation satellites has been used to combat wildfire spread in the Amazon, to monitor glacier melt and air pollutants, to aid disaster relief operations, to measure ozone damage, to measure damage from natural disasters, such as the Fuego volcano, to track and predict malaria outbreaks and to tackle illegal deforestation and pirate fishing vessels.

It is great to see Scotland leading the way. Satellites built and launched in Scotland can monitor the environment in ways not previously possible, including mapping global carbon levels. Glasgow University and Strathclyde University focus on that work with their innovation district, and I welcome plans for the new £5 million satellite centre involving the universities of Edinburgh and Leeds, which will use cutting-edge satellite technology to help combat climate change, including helping lower the risk of people being affected by flooding.

Rocket launches do not exactly have a reputation for being green, but the new space industry must be an environmentally responsible one. Efforts must be made to reduce harmful emissions at launches, and I would like to see a role for environmental regulators such as the Scottish Environment Protection Agency in regulating spaceflight. The good news is that modern micro-launches being developed are a world away from the traditional massive gas guzzling old ones. Orbex, for example, built a micro-launcher fuelled by bio propane, which produces 90% fewer emissions than standard kerosene. Skyrora has successfully tested a fuel called Ecosene, which is created from plastic waste that would otherwise have gone to landfill.

In conclusion, the UK space industry is a massively positive story, but to ensure a happy ending, the Government must: give clarity on their long-term strategic goals; sort out the regulations with urgency; improve the level of scrutiny and consultation in their agreements; show an understanding and sensitivity to market forces; and show ambition in harnessing the potential of space in boosting our post-covid recovery and in tackling climate change. We are at the edge of a vast universe of possibilities for the space sector, so it is vital now that the Government provide the necessary vision, energy and direction to propel us forward.

Online Gaming (Consumer Protection)

Debate between Owen Thompson and Patrick Grady

Tuesday 13th September 2016 Westminster Hall

[Owen Thompson]

I absolutely agree. That is one of the critical aspects. I accept that steps have been taken to ensure that free apps are not necessarily advertised as free apps if there are in-game purchases, but that will not satisfy a relatively young child who simply wants to play the full content of the game they have downloaded or bought. If that requires a season pass or the purchase of additional content, it could become difficult to manage that child’s demands and expectations and to explain the terms and conditions and why they cannot have that additional content. We need to be particularly vigilant in that area.

[Patrick Grady (Glasgow North) (SNP)]

I, too, congratulate my hon. Friend on securing this important debate. On the subject of children, is it not the case that young children, in particular very young children, will often not even realise what they are doing if they are playing a game and sign up for an in-app purchase or some kind of enhancement? I met recently with StepChange Debt Charity in Glasgow, and it had numerous stories of parents faced with outrageous bills that they had no chance of ever affording. Their children were buying enhancements to the games without realising. Does my hon. Friend agree that as well as regulation, developers have to take some responsibility?

[Owen Thompson]

I entirely agree with my hon. Friend. The situation he describes is familiar to me. I am aware of a number of cases where that has happened. I accept that steps have been taken and there have been improvements, but it is still possible for young children, because they are playing these games online, to rack up large bills perhaps without realising what they are doing.

To illustrate the situation further, it is worth noting that the Advertising Standards Authority, which is the UK’s independent regulator of advertising across all media, applies the advertising codes, which are written by the Committees of Advertising Practice, and those codes include acting on complaints and proactively checking media to take action against misleading, harmful or offensive advertisements, including media used to encourage children to purchase and/or downloads apps. Specifically with children in mind, the rules contained in the codes are designed to ensure that adverts addressed to, targeted directly at or featuring children do not contain anything likely to result in their physical, mental or moral harm.

The ASA states that the way in which children perceive and react to ads is influenced by their age, experience and the context in which the message is delivered. It is therefore crucial that the adverts that children see, hear and interact with do not confuse, mislead or directly exhort them to make purchases. That said, with the best will in the world, if a young person is playing a game, they want to be able to access the content. If their friends are advancing faster than they are, it is likely that, regardless of any adverts, they will want to purchase further enhancements so that they can catch up.

This issue is not a new concern. In April 2013, the Office of Fair Trading launched an investigation into the ways in which online and app-based games encourage children to make purchases. It investigated whether there was general market compliance with consumer protection law and explored whether online and app-based games included commercial practices that might be considered misleading, aggressive or otherwise unfair under the legislation. As part of that, the OFT published several publications and sent out a stark warning that the online games industry must improve in this specific area.

In January 2015, “The OFT’s Principles for online and app-based games” clarified the OFT’s view of the online and app-based games industry’s obligations under consumer protection law. The principles focus on how games are advertised to children and state that consumers should be told up front about the costs associated with a game, in-game advertising and any important information, such as whether their personal data are being shared with other parties for marketing purposes. The principles also make it clear that in-game payments are not authorised and should not be taken unless the payment account holder, such as a parent, has given his or her express informed consent. Failure to comply with the principles could risk enforcement action. In the press release that accompanied the publication of its principles, the OFT spoke of its aim to raise standards globally. It said:

“Many games are produced abroad and the OFT has been leading the global debate on these issues. By working closely with international partners, the OFT has ensured that the principles are consistent with the laws of most key jurisdictions to help to raise standards globally.”

The OFT also published guidance for parents to help to ensure that children are not pressured into making in-game purchases and to reduce the risk of their making unauthorised payments.

Specifically, the OFT advice suggests that parents take various actions, including restricting payments, playing the game themselves, and being aware of automatic updates that may change either the game content or the associated terms and conditions. That is clearly sensible and good advice. I would certainly recommend that advice to any parent or gamer, although it is clear that it is not always practical in today’s modern world, where recording an appointment or making a call requires an app.

In terms of progress, it is encouraging that the Competition and Markets Authority, which has taken over the functions of the Competition Commission and certain consumer functions of the OFT, has an overarching responsibility for monitoring the gaming app sector to assess its compliance with consumer protection law. The CMA has affirmed the OFT’s principles for online and app-based games guidance. However, it is important to note that the original text was retained unamended and so does not reflect or take account of developments in case law, legislation or practice since its original publication. That is a missed opportunity.

In June 2015, the CMA concluded its work monitoring the children’s online and app-based games market and referred three online games to the Advertising Standards Authority for investigation on the basis that they may have breached the UK non-broadcast advertising code, by directly encouraging children to buy or ask their parents to buy extra game features. On 26 August 2015, the ASA ruled that both the “Moshi Monsters” and “Bin Weevils” games had breached the advertising code by putting pressure on children to buy a membership subscription and stated that the adverts in each of those games must not appear again in their current form. The third game was referred to the equivalent Spanish advertising self-regulation organisation.

On 4 June 2015, the CMA also published a short guide providing advice to parents and carers about the games, again prompting parents to assess purchases. It also released further information about progress overall. It stated that it had worked closely with the European Commission, the International Consumer Protection and Enforcement Network and national consumer protection authorities around the world and that, as a result, Google and Apple had made changes, in particular to strengthen payment authorisation settings and to ask games makers to stop describing games as free when they contain in-app purchases. Those changes are designed to prevent parents from being landed with unexpected bills from in-app purchases made by their children. The CMA at that point was encouraged by

“positive changes in business practices since we started looking at this sector”,

but was

“concerned that some games may directly encourage children to buy extra features during the game.”

Therefore, to present the Consumer Rights Act 2015 as legislation that can guide and help consumers and protect children and businesses may at this point be a little ambitious at best.

In noting that last point about the CMA’s work, it cannot go without saying that we should value the work of our European partners. My colleagues and I in the Scottish National party are very concerned about the effect of being taken out of the European Union, not only on our collaboration on issues such as consumer protection, but on the value of our world-leading video games industry. Gaming is one of Scotland’s many success stories, from creating the globally renowned “Grand Theft Auto” series to a whole host of other massive successes. There is a huge talent pool available that could see significant impacts as a result of the decision to leave the European Union. Scotland is internationally recognised for innovative game development and for its groundbreaking university courses. Clive Gillman, director of creative industries at Creative Scotland, recently said:

“Scotland’s games are played by millions all over the world—there is no doubt that Scotland has played a hugely significant role in establishing this industry as one of the leading forms of entertainment globally.”

Looking further into the future, we must address concerns and uncertainties about the status of European-based funding. Horizon 2020 is the European Commission’s largest primary funding programme for research and innovation, with a budget of €79 billion. It allocates funding through two-year work programmes administered by the Commission, and includes calls for tenders for interactive entertainment projects such as games. Creative Europe, administered by the European Commission, has a budget of €1.46 billion, of which €3.4 million has been set aside for the development of new video games with high circulation potential. In 2015, the UK was the largest beneficiary of that fund. I would welcome any clarity the Minister could provide on the likelihood of such funding for the games industry continuing in the post-Brexit environment. Concerns have also been raised about the validity of international licences and our ability to affect and be compatible with EU consumer law.

The last point I want to touch on is an incredibly important one. In an industry driven by talent, led by talent and entrepreneurs, we want to encourage a market supported by Government that is fair for both consumers and businesses. Right now, that is being put at huge risk, particularly in Scotland, by restrictive UK immigration laws and, crucially, the status of the post-study work visa. It is simply economic vandalism that the ability to travel, work and study across the EU is now at risk following Brexit, and it is a further lack of judgment by the Home Secretary to refuse Scotland an opportunity to take part in the trial of a new post-study work visa scheme. That is an appalling missed opportunity.

I look forward to the Minister’s response. This is a topic on which we could expand at endless length and I very much hope that progress can be made to recognise the ever-moving feast that we see within the games industry. With that, I simply say: game over.

Electoral Participation (Media)

Debate between Owen Thompson and Patrick Grady

Wednesday 27th April 2016 Westminster Hall

[Owen Thompson (Midlothian) (SNP)]

I beg to move,

That this House has considered the role of the media in encouraging electoral participation.

Today’s debate is very timely. With the EU referendum only a few weeks away and elections to the Scottish Parliament, Welsh Assembly and Northern Ireland Assembly and local elections in some parts of the UK only one week away, this issue really has become a focus.

I will give my opinion on how the media can and should be involved in electoral participation—an interest of mine that developed through the Scottish independence referendum, when the media had so much impact. That became an influence on my work as an MP, and now as co-chair of the all-party group on democratic participation. I intend to talk today about matters such as electoral turnout and how it can vary between groups in society; the role the media had in the Scottish independence referendum and the subsequent impact on voter turnout; changes in demand and how the media need to reflect those; what support politicians can give to an evolving audience; and how media of all platforms have a responsibility to their audiences.

With the general election almost a year ago, when we saw an overall increase in electoral turnout, now seems the right time to pause and reflect on the many different factors that influenced that rise, the role the media undoubtedly played in it and how we can best support efforts to encourage electoral participation.

Since 1950, when electoral turnout was 83.9% across the UK, there has been a steady decline in voter turnout, ending with a staggeringly disappointing low turnout in 2001 of just 59.4% across the UK. Although we have seen the beginnings of a rise in turnout, it is not rising equally across all sectors of society or, indeed, all parts of the UK. While I am sure there were a variety of reasons for the increased turnout in 2015, there has been an increase in media engagement of the electorate and a platform shift in not only the types of media that reach out to engage and influence but the platforms from which people seek their information.

While many Members present today may expect me to use this debate to have a pop at biased media during the Scottish independence debate, I have bigger points to make than to shame the BBC, the Daily Record or the Daily Mail. The media no longer influence the electorate just through traditional party political broadcasts or biased newspapers. It is not only a question of leaders’ debates on the telly, although they are important. The media have evolved and begun to recognise the role they can play in not only voter registration and turnout but overall engagement. As people have become more politically aware, there is a far higher demand of media. I believe broadcasters realise that and want to meet the expectations of their audiences.

Engagement in politics can be a difficult factor to measure. Even more complicated is how and why people are influenced and how the media can contribute to that. Recent findings of the Audit of Political Engagement 13 in 2016 concluded that

“the public’s perceived levels of knowledge of and interest in politics have reached, respectively, the highest and second highest levels recorded in the history of the Audit tracker.”

However, that is not the case across the whole of the UK, with notable variance regionally and in relation to class and ethnicity. The audit also found that in terms of an interest in and knowledge of politics, those who ranked themselves with the lowest indicators were black and minority ethnic adults, women, those from lower socioeconomic backgrounds and non-homeowners.

In Scotland, we have seen an unprecedented level of electoral participation, with the percentage of people who claim they are either very or fairly interested in politics standing at 74%, compared with just 57% in the general UK population. That trend has continued to grow after the referendum.

There are so many lessons we can learn from the experience of the Scottish referendum, in which people themselves took to the issues. Information was exchanged peer to peer far more than by interaction with traditional media. Some media outlets caught up with that and embraced it, which fed a real enthusiasm for politics that we had not seen a lot of in other parts of the country. That was a good thing, and it shows that if people are genuinely engaged and interested in politics, we can get beyond the, “Oh well, it’s only politicians; they don’t really count” mentality.

[Patrick Grady (Glasgow North) (SNP)]

I congratulate my hon. Friend on securing this debate. Does he agree that the engagement inspired by the referendum in Scotland has continued to the present day? We, as Scottish National party Members, are very much aware of that, as constituents continue to interact with us through social media, even while we are taking part in debates in the House.

[Owen Thompson]

I absolutely agree with my hon. Friend. That is certainly something we have all had to adapt to, because there is still an expectation of availability, accessibility and the opportunity to interact and exchange ideas with us. It puts a great responsibility on us, but all politicians should look to live up to that responsibility. After all, we in this place are the representatives of the people.

Voter turnout in the 2015 general election across the UK was 66.1%—a rise of 6.7%, which, on the face of it, is not too bad. At a regional level, voter turnout was 65.8% in England, 65.7% in Wales, 71.1% in Scotland and 58.1% in Northern Ireland. However, if Scotland is excluded from that overall figure, and we look across a number of years, turnout in elections has not changed very much. The average combined turnout in England, Wales and Northern Ireland was 62.9% in 2001, 62.2% in 2005, 62.6% in 2010 and 63.2% in 2015. That helps to demonstrate the difference in engagement we have seen in Scotland because of the referendum and the grassroots movement of people accessing information in different ways, and the ways that that has been taken forward.

It is clear to many—I suspect many of my colleagues from Scotland will agree—that we need to learn the lessons from the referendum and understand and encourage all types of media to engage with people politically. We must look to and support a host of platforms to enable that, from the arts and social media to self-gathering grassroots media, which was such a factor in the Scottish independence referendum. It was not simply traditional and social media; the arts got involved in the debate. There were theatre productions on all sides of the argument and on no side of the argument, allowing people to engage in politics in ways that were suited to them individually. It created a far better level of engagement than could otherwise have been hoped for.

It cannot be the case that people in the rest of the UK have any less desire to have a say in how their country is run or do not understand how politics affects them. I campaigned in the referendum and spoke to people who did understand, but many had either lost trust in politicians or political systems. During the referendum, those myths were blown out of the water. Politicians were replaced by neighbours, family, friends and colleagues. Trust in Scotland’s politicians—certainly those in some parties—has begun to be regained.

I actively encourage and celebrate campaigns such as those run by Bite the Ballot, Use Your Vote and Rock Enrol!, which have played a huge part in engaging and encouraging people up and down the country to register to vote. I draw particular attention to campaigns designed to capture people who are disfranchised and targeted media campaigns, such as those run by the National Union of Students, Gingerbread—a charity for single parents—and Crisis and Shelter, which give a political voice to homeless people. Those campaigns give a voice to those who most need to be engaged in politics.

I also recognise the role of other forms of media, including the recent efforts of TV programmes such as “Hollyoaks”, “Coronation Street” and “River City”. They have shown politics as an everyday thing affecting real people in their communities, with characters, certainly in “Coronation Street” and “River City”, becoming councillors and being directly involved in the political process.

I mentioned the TV debates earlier. This week in Scotland we have seen a very new approach to the debates, with a character from Scotland’s own “Gary: Tank Commander” interviewing each party leader in the run-up to the Scottish elections. That has, in a way, allowed party leaders to present their messages in a forum that is so different from anything that any of them would have ever experienced, and it has made politics relevant and accessible to people who might otherwise have thought that they had no interest in the subject. Suddenly, because it is a character that they enjoy, they look at things from that point of view and watch politics almost accidentally—much in the way that “Gogglebox”, another example of a great piece of innovation from Channel 4, manages to promote politics in what does not feel like a traditional way of accessing it.

Following the Scottish independence referendum, and because of the thirst of Scottish people to be engaged and to participate in political decision making, there has been a huge growth in peer-led, grassroots media. Initiatives such as Common Weal and CommonSpace have seen people from across the political spectrum unite in their desire to participate. That has been felt on a local level in my constituency, where media platforms such as Midlothian View and The Penicuik Cuckoo have become sources of information about what is happening as much as our local newspaper, the Midlothian Advertiser.

People are looking to access information in different ways. Those media that are on the ball and keeping up with things are listening and reacting, but we as politicians have a responsibility to encourage that and promote it across all levels of the media.