Space Sector: Government Support

Peter Dowd Excerpts

Wednesday 4th September 2024 Westminster Hall

[Peter Dowd (in the Chair)]

I will call Mr Alistair Carmichael to move the motion and I will then call the Minister to respond. As is the convention for 30-minute debates, there will not be an opportunity for the Member in charge to wind up.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I beg to move,

That this House has considered Government support for the space sector.

It is a pleasure to serve with you in the Chair, Mr Dowd. I welcome the Minister to his place and to his new role, and I wish him every success in it. When we talk about the UK space sector, it is worth reflecting that, when the Minister and I first arrived here as fresh-faced and enthusiastic newbies in 2001—

--- Later in debate ---

[Chris Bryant]

That is a very fair point. All the new Ministers arriving in DSIT have been very keen to provide as much strategic clarity as possible about our direction of travel. Perhaps one could say that the advantage of having a decent majority in Parliament is that one can lay out a strategy for a period of time, rather than just running to catch up with one’s tail. Likewise, I take the point made by the right hon. Member for Orkney and Shetland that it is that clarity of strategic objectives that shows, “Yes, this is what we are doing; that is not our priority.” That makes it much easier for inward investment into the UK to make secure investments for the long term.

Some of the things that my right hon. Friend the Chancellor has said about business taxation are important as well. The aim is to create an environment in which people can invest securely, knowing where they are going, that the Government will have their back and that the strategy will not change every six months. I note the points made by the National Audit Office. I think the previous Government were very much trying to point in this direction, but perhaps they did not quite land it; maybe there was an anomaly at some point in the process of developing the long-term strategy.

Some hon. Members might not initially think of space as significant to the daily lives of their constituents, but I think it is worth pointing out something that is part of our lives: sat-nav. We all used to have rows in the car, trying to work out where we were going. Sat-nav now does the work for us—although I note that none of the sat-nav operators seems to understand how to say the name of my street in Wales or, frankly, any of the roads or towns in Wales—but this is not just about sat-nav for personal life; it is also about Earth observation, which makes it much easier to predict weather patterns. I had an interesting conversation the other day with a wine operator from the south-east, who was saying that that is really important for them to work out when they should harvest to ensure that there is the right amount of sugar in the grapes and so on. Similarly, data coming from satellites will enable the Government and many operators to provide services more effectively, efficiently and cheaply, and in a way that is more intuitive for ordinary consumers.

In all those fields, space is a really important part of how Government do their business, and how we better facilitate a strong economy and better society. Of course, it is not just the Department for Science, Innovation and Technology that has a very significant interest in space. I pay tribute to the Ministry of Defence, which has been a major player in the field; obviously, it is a NATO operational domain, apart from anything else. The MOD is investing £6.5 billion over a decade, including £5 billion for satellite communications through Skynet and £1.5 billion through the defence space portfolio. Many other Departments—the Department for Business and Trade, the Foreign, Commonwealth and Development Office, the Department for Transport, the Department for Environment, Food and Rural Affairs and so on—are also engaged in this work.

Skills were mentioned earlier. The UK Space Agency has been funding £19.6 million since 2022 in this skills field, because if people want to invest, they are going to do so on the basis that we have a skilled workforce in the UK that is available not just today but in five, 10, 15 and 20 years’ time.

I will say a few things about the launch sector, which is obviously of primary interest to the right hon. Member for Orkney and Shetland. Roughly 200 companies are engaged in the launch sector in the UK. As I said, some are involved in rockets; we have also referred to subsystems, spaceports, mission control, apps and all the technology that goes into making all of this possible. Roughly 1,500 people in the UK are involved, and they are fairly well paid, so that is a significant part of our economy with significant opportunity for growth. It brought in something like £336 million last year and had a GVA of £153 million. Over the past six years, the Government have invested something like £91 million in our launch capabilities—the right hon. Gentleman referred to the £10 million loan to SaxaVord.

We are ongoing in our commitment, and that commitment has not been shaken by any anomalies that might have been seen on launch. I did feel a bit worried that my first engagement with space was something going not entirely to plan, but I do not think that there is a causal relationship between that and my arriving in post.

In relation to Shetland, the right hon. Gentleman is absolutely right that we need to work with the devolved Administration. I am very keen to have conversations with our colleagues in Scotland, my counterparts in Scotland, and of course with the Scotland Office. We need to work as a united Government to achieve what we want in the field.

As I say, I have spoken to Frank Strang and I am very keen, at the earliest opportunity, to visit both Grantown-on-Spey and Shetland. I cannot say when the next attempted launch may be, but Members are absolutely right: it is not a failure to have an event that does not go entirely to plan, when all of the contingency plans do click in correctly and properly so that there is no harm or danger to life. We see it as a blip, not as a final problem, and it does not undermine our long-term commitment.

There are a couple of points to be made about value for money, which goes to the point about clarity of strategy. We are going to have a very tough spending review—I think everybody might have sussed that by now; the messaging has been strong enough on the subject—and that will undoubtedly be true in this field too. We need to be absolutely clear about what we are seeking to achieve, and about what the whole consortium of businesses and players in the space field want to achieve, so that we get really good value for money for the UK economy. It would be a terrible dereliction of a significant economic and strategic opportunity for the UK if we were somehow or other to abandon this field or diminish our commitment.

I hope that I have reassured the right hon. Member—just as I reassured him on 28 October 2009, when we were both in favour of the abolition of the death penalty everywhere in the world—that the UK Government are not stinting in our commitment to space and to the strategic and economic opportunities that it affords us.

[Peter Dowd (in the Chair)]

Thank you. On the subject of space, Minister, can I say that your tie is stellar?

Question put and agreed to.