Space Industry Bill [Lords]

Philippa Whitford Excerpts

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

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

It is an honour to follow the right hon. Member for South Holland and The Deepings (Mr Hayes). I, too, enjoyed a little glass of sherry in his office before Christmas, as we had assumed that he would be taking this Bill through the House. When the Hayes manual for the autonomous and electric vehicle becomes available, I am sure that he will have further cause to celebrate.

It is today two years exactly since Tim Peake did his spacewalk. Those who were Members then and active on space issues will remember that the day before that walk we had a Back-Bench debate in the Chamber to celebrate the UK space industry. I had the honour of opening that debate with a statement that I had been sent by William Shatner. I hope that in this debate we will have slightly fewer cheesy puns, but I tie no one down and make no promises. That debate highlighted the growth potential of the industry, which has increased massively in the past 10 to 15 years.

There is growing recognition that space is no longer, as I mentioned in that debate, something that the Americans and Russians do and nothing to do with anybody else. As the Minister said, nor is it about big, expensive expeditions to the moon or to Mars, much as they may go ahead. It is about the commercial potential of things such as space tourism, microgravity research and, eventually, hyperbolic flight over distance. The Reaction Engines air-breathing rocket engine has been mentioned. That company’s aspiration is the Skylon space plane that could see us flying to Japan or Australia in literally a few hours, simply by using that technique of going up to touch the edge of space and coming back down.

One of the main industries in which the UK already leads is satellites. We have two types of satellite. Geostationary satellites sit 36,000 km up from the equator, which means that it takes them exactly 24 hours to go around, so they stay above the same part of the Earth. These are the big guys, used for GPS, telecoms and television. We also have polar satellites, which orbit perpendicular to that orbit. They are much lower down—basically, 100 km to 200 km up—they are often smaller, and the Earth turns underneath them. They are looking at the Earth, so they give us information about weather and can monitor things such as trafficking. They can monitor fishing in marine protected areas by observing the transponders in fishing fleets. They are used for all sorts of things, including flooding, natural disasters, town planning and so on. That is where there is a huge growth going forward.

The UK has expertise in satellite production. Galileo, which has been mentioned, will eventually be a civil replacement for the military GPS, which is American. The first UK manufacturer of smaller satellites was Surrey Satellite Technology, which reduced a satellite from the size of a double-decker bus to that of a fridge. The satellite was eventually reduced to the size of a microwave, and now we are talking about something the size of a carton of milk. We have CubeSats and even micro-satellites, such as Unicorn. Glasgow, near where I live, has produced more satellites than any other city in Europe. We have Spire, Clyde Space and Alba Orbital. We are also lucky enough to have two universities in Glasgow and Strathclyde with major space research units, which obviously feed that development.

In these innovative industries, it is this combination of people who are adventurous and willing to try things and academics with their enabling abilities that brings about an ability to launch. At the moment, all launching is from overseas, most of it from Kazakhstan. Once a satellite has been made, it has to wait until there is a space—excuse the pun, I did not mean that one—where there is room for it to get into space. The problem is that that is keeping the cost high. I was told that if we get the launch of a satellite to below £50,000, the industry will literally burgeon. That is what we are looking to do with the smaller satellites. They are lower orbit, and they will eventually decay—they do not last forever. That is where the comment about space debris comes in. The smaller the satellite, the more that it will burn itself up when the time comes and its orbit starts to decay.

We have seen 71% growth in the industry since the UK Space Agency was set up in 2010. The turnover now is £14 billion and, as has been said, the aspiration is for it to be £40 billion by 2030, so essentially we want it to be three times bigger. Scotland punches above its weight. We have 18% of the UK space industry, but we need a launch site in the UK. When we debated this matter two years ago, we thought that moving to a launch site was imminent, but here we are, two years later, and, actually, we still do not have one. Unfortunately, that has created a bit of planning blight. There was a time back then when it was a competition. Part of what we did in that debate was to make the case that it should not be; that there should be a licensing system, because then it would not nail it down to only one site.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

I am honoured to represent a constituency where one of the shortlisted potential spaceport sites is located in Llanbedr. I am sure that the hon. Lady agrees that the space industry offers the potential to bring science, technology, engineering and maths jobs and STEM salaries to all UK nations and that the Westminster Government should play their part in enabling that through licensing and facilitating future projects.

[Dr Whitford]

I agree with everything the hon. Lady says. As I said, we will have tourism, hyperbolic flights and satellites. Different spaceports might develop different specialisms, so we should not be trying to shut down this industry. Although there will be a first—I am incredibly delighted that the site in my constituency in Prestwick has moved from being a rank outsider to one of the leading contenders—we should not have any sense of “there can be only one”. Prestwick was the first passenger airport in Scotland. We could not imagine Scotland now with only one airport. We do not know where this industry will be in 2030—perhaps hyperbolic flights for long distance will be the norm. Therefore, we do not want to shut down any site.

Of course, as the only place that Elvis put his feet down, Prestwick is already famous. From the point of view of being the first—I mean the first—UK spaceport, it is known for already having a long runway. It is particularly known for its clear weather, which is why it is the back-up airport for the whole UK. It has better visibility and less low cloud even than Newquay, which is hundreds of miles further south.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

Will the hon. Lady confirm that Prestwick has clear airspace and that there is not another commercial airport within the vicinity that shares that airspace, because that is quite important.

[Dr Whitford]

We actually have quite a lot of airspace in that we take off right across the Atlantic. National Air Traffic Services has its air traffic control centre based in our airport. It has already been consulted and has explained that there is no significant issue from the point of view of airspace and launching. Our airport has very good transport, with road and rail links. Having both the air traffic centre and an aerospace cluster onsite strengthens it. Although we talk a lot about the spaceport, what we do not yet have is the routine development of the launch vehicles, and they will evolve hugely in the next decade. Therefore, the more we have the ability to bring expertise together to do that, the stronger and the quicker we will achieve it.

Obviously, the aim of the Bill is to do with licensing, which I welcome because it allows any site to aim to become a spaceport, but it is also to create, as was mentioned, a regulatory framework for sub-orbital and outer space, or orbital spaceflight activities. It amends the Outer Space Act 1986 to make it simply apply outside the UK and be replaced by this Bill within the UK. The regulator is likely to be the Civil Aviation Authority for horizontal take-off and sub-orbital, and the UK Space Agency for vertical take-off and orbital or outer space missions.

Looking at the Bill itself, some issues have already been highlighted, but the biggest one is that of liability, which is causing real concern among the industry. It is the Government who compensate someone who is affected—either their property or their person—by a UK launch or satellite and the company must indemnify the Government. The cap is something that protects that company. What the company has to do is find insurance. At the moment, the cap is set at €60 million per satellite launch under the Outer Space Act. It is important that a figure is arrived at, but we are talking about launches that will have quite a broad range of risk depending on the scale of the satellite.

There is discussion in the Bill and the explanatory notes about using red, amber and green to describe the types of missions, so there might well be slightly different caps. It will also be important that we no longer say “per satellite” because the micro-satellites, such as Unicorn or CubeSats, go up in clusters. If the figure were €60 million for every one of them, that would be prohibitive, but to get insurance for unlimited liability is not really possible, which is why, in the Deregulation Act 2015, this limit was introduced. Other states such as America, Australia and France have a cap on liability. I understand from the Minister that that matter will be discussed, but a cap will need to be set or people will still to choose launch from elsewhere.

It is also really important that we look at the regulations themselves. It is very disappointing that we have no draft regulations to scrutinise; we have instead this absolute burgeoning of delegated powers. I understand the need for flexibility, but the original target was launching in 2020, and there was mention in the Lords that the regulations might not be ready until two years after Royal Assent—the middle of 2020. How do we expect a spaceport to design itself to meet regulations that are not available? How do we expect people to invest in that? How do we expect people in the industry to raise money on the basis of regulations that, suddenly when they come out, might completely rule out a company, a project or even a spaceport site? It is really important that the decision on regulations gets a bit of rocket fuel under its bahookie and starts moving forward.

In general terms, there is the slippage of the timeline. We had a long time of planning blight when it was described as a competition, with all five—it was eight at the time—sites sitting waiting to see who would win, and so nothing happened for a year and a half. Now another year and a half has passed, with things moving forward slowly. We need a little bit of speed.

At the moment, the Government are supporting spaceport sites and launch companies with grants. It is crucial that domestic launch companies should be considered within that—and that includes Reaction Engines—to ensure that they get the funding to take forward the air-breathing rocket engine.

In my area, there is also the issue of orbital access. If our spaceports are just to be three-kilometre slabs of tarmac used by someone from the States once or twice a year, they will not stimulate the industry as we want them to. We need a domestic capability that can launch the satellites when the satellite companies want them to be launched. It is imperative that, in providing the seed money, we are not just sitting back and waiting for Virgin or XCOR to come in; we must invest in our domestic launch companies. We also want the manufacturing—the supply chain all the way through. We do not want just to be providing a piece of land to be used on one day.

As other Members have mentioned, we want the Bill to stimulate the whole industry and to be the key of innovation as well as the stimulus and inspiration for the next generation to take on the STEM subjects and see their future in a burgeoning space industry.

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[Steve Double]

I agree. We need to continue to participate in the industry on a global scale; probably more than any other, it cannot be restricted to just one country. It is essential for us to continue to participate in the global sector, whether in the EU or in other parts of the world.

If the spaceport came to Cornwall, it would give a huge economic benefit to one of the most deprived and lowest paid parts of the country. Cornwall is well known for its tourism and food and drink sectors, which are absolutely vital for our local economy. Who knows? One day, Cornwall could also be sending tourists into space. Generally, however, those sectors are regarded as low paid and providing limited career opportunities for people. We are trying to change that perception, but that is often how they are regarded.

Cornwall has an illustrious history when it comes to engineering and innovation. Let us remember that the steam engine, which brought about the industrial revolution, was invented there. The first ever transatlantic telegram—the forerunner of the modern communication revolution—was sent from Cornish soil. Now, Cornwall is ready to play its part at the heart of the space industry of the future. Newquay’s bid is backed right across Cornwall by the business sector, the chamber of commerce, the local enterprise partnership and Cornwall Council. We are ambitious and we want to play our part to the full.

The LEP has estimated that bringing the spaceport to Cornwall would create some 1,000 new, well-paid jobs, which could be vital to our future economy. In addition, I believe that it would do something that is beyond economic measure, namely to inspire Cornish young people and provide them with the opportunities that they desperately need. For far too long, our Cornish young people have faced the choice of staying in Cornwall and lowering their aspirations, or leaving to fulfil their potential and pursue a career. Bringing such jobs to Cornwall would give our brightest and best the opportunity to have a well-paid job and a good career in an exciting sector in Cornwall, rather than having to leave.

[Dr Whitford]

Regardless of where the spaceport is, I would hope that the future space industry in the UK will be diffuse, just as we have Surrey satellites and Glasgow satellites. The idea is not for the whole industry to be where the spaceport is. I hope that that aspiration will remain, whether Cornwall is No. 1, is No. 2 or takes a bit longer to get a spaceport.

[Steve Double]

The hon. Lady makes a good point, and I agree with her. We cannot put a value on the inspiration that would be provided for our young people by having a spaceport, which they could see and interact with, on Cornish soil. As has been mentioned, we saw the inspiration that Tim Peake brought to schools across the country. We recently had the Bloodhound at Newquay airport, and 4,000 Cornish schoolchildren had the inspirational opportunity of going on a day out to see the rocket car going down the runway. That gave them an incredible sense of what was possible, and it inspired them to engage with science and engineering and pursue STEM subjects. Putting the spaceport in Cornwall would have a similar, ongoing effect on Cornish schoolchildren. We have lacked such ways of inspiring our young people for far too long.

I will bring my thoughts to a conclusion. I am happy to support the Bill, whether or not there is a vote this evening. I am delighted that the Government have introduced it at this point, and I believe we need to get on with it. I am absolutely delighted that the Government are backing the industry by giving it the confidence and framework that it needs to move forward, and that they are ambitious for our country to be a world leader in this sector. Cornwall is ambitious about playing its part to the full.

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[David Morris]

I thank my hon. Friend for that very knowledgeable interjection.

[Dr Whitford]

As I said in my speech—I think the hon. Member for Beckenham (Bob Stewart) was not in his place—we have both geostationary and polar satellites. Polar satellites are for earth observation, weather and so on, so you do not need to be near the equator; you want to be near the pole, as Prestwick is.

[David Morris]

I thank the hon. Lady for that great intervention.

We are talking about £14 billion per annum going into our economy and about 38,000 people being employed in the sector, so it is huge, and it is expanding. Most of the technology that has been utilised, especially by American companies, has come from Great Britain—even in the early stages of space exploration—so we have a lot to offer. We are taking a huge leap into the future by putting this Bill forward. Over the next few years, the equivalent of £1 billion will go into these projects, and that will be welcomed by the space industry.

I thank you, Madam Deputy Speaker, for letting me speak in the debate. I urge that the Bill go forward in the best way it can and that Members on both sides vote for it.

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[Stephen Kerr]

I am the better for that intervention, but I am now worried about what else I will say. I am grateful for the fact that the hon. Lady, who is a physics teacher, is in the Chamber today to provide that illuminating insight. I hope that we can agree that 25,020 mph is very fast, but such speeds are difficult for us to assess with our 70 mph motorways, which make it difficult to imagine a speed 357 times faster. Even the HS2 line, operating at 250 mph, pales into insignificance. I am obviously deploying parliamentary understatement when I say that we are dealing with something out of the ordinary as a means of transport.

It is the need for speed that necessitates this Bill, not in the physical sense that I have been discussing, but in the legislative sense. Prescriptive legislation that annotates all aspects of regulation is doomed to fail in the fast-moving and changing world in which we live, especially in this fast-moving industry. I made similar comments about the need to move quickly to keep up with the times in the context of the Automated and Electric Vehicles Bill and data protection legislation.

[Dr Whitford]

I totally accept the point that we need flexibility to keep up with innovation, but do the hon. Gentleman and his colleagues recognise that the industry is anxious because it cannot see draft regulations a mere two years before the Government would like to see launches?

[Stephen Kerr]

I thank the hon. Lady for her intervention, and I agree. It is important to establish a framework in which policy is laid out so that, as mentioned in her excellent speech, investors can have some view of the future and there can be certainty for investment decisions. Going back to what I was saying about the other Bills, it is important that legislation keeps up with the rate of change, and technological change in particular.

Several Members have mentioned the vital importance of spaceports and their location and the opportunity for this country to have satellite launch facilities within its borders instead of sending satellites abroad, and that issue has been well discussed throughout the debate. It is frequently pointed that the United Kingdom has some attractive geographic advantages when it comes to launch facilities. If someone is intent on launching satellites into polar orbit, launching them over an ocean at a good angle is what they are looking for, and Scotland has a good number of ideal locations for vertically launching satellites into polar orbit.

A space race is going on, but it is not the same as the space race of the past; this race is about establishing new spaceports. The competition is not just between locations in the United Kingdom—I totally subscribe to the view that there should be as many spaceports as demand requires—but between the United Kingdom and other northern European countries. This Bill allows the possibility of the UK getting into this game early, getting head and staying ahead.

Madam Deputy Speaker, you will not be surprised to hear me say that Scotland is indeed the ideal location for spaceports, and its candidate locations are competing to become Britain’s first spaceport. In a really good speech, my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) spelled out the advantages of Prestwick, as did the hon. Member for Central Ayrshire (Dr Whitford), and one of the attractive features of the Prestwick proposal, apart from the geographic and meteorological advantages, is the community and cross-party unity on the matter. I cannot think of a more inspirational happening for the young people of the west of Scotland than the announcement of the building of a spaceport in Ayrshire—right on the doorstep of the vast majority of Scotland’s population.

I belong to the generation where the word space immediately conjures up the three-word phrase “the final frontier”, which has been referred to several times, but we are talking about something far more real than the science fiction and television series of my boyhood. As an eight-year-old boy in 1969, I remember watching in wonder at the flickering black and white images on our family television as the astronauts of Apollo 11, Neil Armstrong and Buzz Aldrin—names that will live forever in the history of mankind—stepped out of the lunar module and on to the lunar surface, famously taking that

“one small step for a man, one giant leap for mankind.”

It was an exciting time and the possibilities of space exploration seemed limitless, and every young mind in the country was seized with the excitement of that possibility.

Sadly, before I had even reached my first year at secondary school, manned flight to the moon, which was such an exciting prospect, had lost the attention of the vast majority of people. It is sad to say that the only time in recent memory that the British public really embraced, in a popular way, the concept of space exploration was Christmas day 2003, when Colin Pillinger and his team attempted to land Beagle 2 on the surface of Mars, as I am sure we all remember. Perhaps in the best traditions of noble first endeavours, it did not quite come off. Colin sadly passed away without knowing that he had come very near to achieving the objective of the mission.

I am most excited about this Bill, this subject matter and what it does to fire the imaginations of our young people.