Space Industry (Indemnities) Bill

Scott Arthur Excerpts

Friday 7th March 2025 Commons Chamber

[John Grady (Glasgow East) (Lab)]

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

It may be of interest to you, Madam Deputy Speaker, that Bradford, part of which you represent, contains a centre of space expertise, namely the University of Bradford. I will return to that later.

I am privileged to introduce a Bill that will help to push forward investment in the UK’s critical space sector. It will amend two sections of the Space Industry Act 2018 to provide legal certainty that all space flight operator licences must include a limit on the amount of the operator’s liability to the Government under section 36 of the Act. What are space flight activities, one may ask? They cover launching spacecraft, such as satellites, into space, operating spacecraft in space—for example, allowing a spacecraft to orbit Earth—and bringing spacecraft back down to Earth.

Under the international law applicable to space, Governments, including ours in the UK, are liable for damage to property, death or personal injury caused by their space activities or by their nationals. That is a key reason why section 36 of the 2018 Act requires people carrying out spaceflight activities to indemnify the Government against such claims. The Bill provides legal certainty over the need to limit liability because that will encourage desperately needed investment in the sector.

The space sector and satellites are central to almost everyone’s day-to-day life. Let us take something simple like a trip to a football match. Middlesbrough fans—I’m afraid I am not among them—have a famous fanzine called “Fly Me To The Moon”. That is not a reference to Sinatra, but they might buy it using contactless. People will make their way to the match with the use of maps and travel updates on their phones and use Google Pay or Apple Wallet to store tickets and get into the stadium. All this depends on satellite technology. One may ask why the Boro fanzine is called “Fly Me To The Moon”. It is because Bruce Rioch, a great Scottish manager, then manager of Middlesbrough, said of his captain:

“If I had to fly to the moon I’d take Tony Mowbray, my captain, with me. He’s a magnificent man.”

Both men played a significant role in saving that magnificent football club.

Suppose, Madam Deputy Speaker, you wanted to read on your device “The First Men in the Moon” by H.G. Wells. That requires satellites. The protagonist in that novel is a Mr Bedford. I was brought up in Bedford, a wonderful town in Bedfordshire, and my hon. Friend the Member for Bedford (Mohammad Yasin) is a fine friend. Suppose you wanted to stream “Breakfast at Tiffany’s”, famous for Audrey Hepburn singing “Moon River”. Streaming music depends on satellites. I confess that “Moon River” was one of my lullabies of choice when my children were younger and I was desperately trying to get them to sleep. I did not think that “Subterranean Homesick Alien” by Radiohead would be an apposite choice or, for that matter, Lou Reed’s great song “Satellite of Love”, so I stuck with “Moon River”. The House will be pleased to know that I do not propose to sing “Moon River”, because I am appalling at singing.

The critical point is that satellites and related technology are critical to modern life, and they will become even more so. There is a significant economic opportunity for the United Kingdom here. European demand for satellites up to 2033 is forecast to be worth $50 billion. Even 2% of that would bring around $1 billion in revenues for the UK economy alone. This provides a serious economic opportunity to the United Kingdom, and we must seize it with both hands, because we must get growth back into the British economy, and that is what our Government are determined to do.

Space is an industry of the future—a future of hundreds of years—and it is critical that we invest in and support industries that can bring our family of nations prosperity for decades to come. As President John F. Kennedy said,

“man and his quest for knowledge and progress is determined and cannot be deterred. The exploration of space will go ahead, whether we join in it or not. And it is one of the great adventures of all time.”

President Kennedy said that in 1961, and in 2025 I say it is high time that the United Kingdom got stuck into this adventure and seized the opportunities it will provide.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

I thank my hon. Friend for introducing this Bill—he is reaching for the stars with it, quite literally. I am proud to have a company in my constituency called Alpha Data, which is just 50 metres from my constituency office, but the products it designs are 250 miles above us. It has a sensor outside the International Space Station that measures atmospheric heating and cooling. Alpha Data employs 30 people in its office, but its supply chain stretches from inside the city to Kilsyth, the Scottish Borders and nearby Livingston. Does my hon. Friend agree that this company is evidence that the space sector is thriving in Scotland, and that this Bill should help it to go “To infinity and beyond”?

[John Grady]

I could not agree with my hon. Friend more. Edinburgh has a thriving space sector, as does Scotland. My hon. Friend has for many years been heavily involved in work to grow the economy in Edinburgh and the Borders, and I pay tribute to him for that.

I must, however, take this opportunity to pick a minor bone with my hon. Friend. He mentioned that Glasgow does not have a castle, and I wish to correct the record. We have a fine ruined castle called Crookston castle. It is the second-oldest building in Glasgow. The first-oldest building in Glasgow is the beautiful cathedral. I will not indulge in a dispute about whether Edinburgh or Glasgow is the better city. They are both beautiful, great cities. Glasgow is slightly better, but there you are. I am obliged to my hon. Friend for his intervention, and I am also glad to be able to correct that point.

There is another reason why it is important that we have a thriving space and satellite industry. Space is critical to defence, and we must have a thriving space sector to protect our country. The United Kingdom works with allies to ensure that our interests are defended in space. However, the world is becoming more unstable, and it is essential that we have our own capabilities to launch and operate satellites from the United Kingdom, and this Bill is important in that regard, too. It will help to secure a vibrant end-to-end space industry in the United Kingdom, and that is important for defence. To take one example, having our own domestic launch capability is important, and a vibrant civilian sector will help to cover the costs of that launch capability. This Bill also has a national security theme.

Owing to much hard work, including by the last Government, the UK Space Agency and many others, the United Kingdom also has a firm foundation for a thriving space industry. In the time available, I cannot provide a complete survey of the vibrant and growing space industry, but here are some key points. One key task we have had is to develop our own launch capability to put satellites up in space, and then to get them back down. That is why there is so much chat about spaceports—in my life, at least.

SaxaVord, the UK spaceport in the Shetland Islands, is one of only two licensed vertical launch spaceports in Europe. That is at the far end of the north of the map of our family of nations. Down in the far south-west, we also have an operational spaceport in Cornwall. That illustrates that space is an opportunity for our family of nations from the very top to the very bottom—I mean that only in a cartographic sense; I am not looking to offend any Members from Cornwall.

There are also spaceports under construction and planned in: Sutherland, on the far north of the coast of Scotland, to the west of Thurso; North Uist, a wonderful place, which I commend as I spent much of my honeymoon there; Glasgow Prestwick; Spaceport Machrihanish, on the southern tip of the Argyll peninsula, which I would also recommend for a visit to Scotland; and, Snowdonia. Some may wonder where those places are. They are all wonderful places, and they illustrate that space is an opportunity across the United Kingdom.

Let us turn to the satellite or, as Lou Reed sang, “Satellite of Love”. The UK has incredible talents in manufacturing satellites and satellite technology. As a Scottish MP, I focus on Scotland, and as a Glasgow MP, I focus on Glasgow, but let us start in the Moray firth, where my mother came from. It has a fine tradition of engineering. For those who follow highland league football—I suspect I am in a minority of one in the House today—the fact that Forres Mechanics is one of the oldest football clubs in the north of Scotland points to a tradition of engineering there. The Jones shipyard in Buckie is another great engineering industry in the north of Scotland.

Of significantly more relevance to this debate is that Forres is home to Orbex, which is developing a rocket called Prime. It will be the first UK-manufactured and UK-launched orbital rocket. Prime is set to take off from SaxaVord in 2025. Prime is set to take off from SaxaVord in 2025. The UK Government have recently announced a £20 million investment in Orbex—an important investment that demonstrates the opportunities being brought to the north of Scotland, for which we need to redouble our efforts to secure economic growth and prosperity.

My home city of Glasgow has a rich history of innovation and an incredibly promising cluster of space expertise. As a Glasgow MP, I am determined that it should have a bright future in space. Glasgow is building more satellites than any other city in Europe. There are fantastic companies in the area including, Alba Orbital, which specialises in PocketQube satellites, AAC Clyde Space, which has expertise in small satellite technology, and Spire Global, which is a leading provider of space-based data analytics and space services. This year is Glasgow’s 850th birthday. The Bill will help secure the prosperity of Glasgow for the next 850 years, creating jobs and economic growth in my great city of hard work, innovation and enterprise.

There is clear economic analysis that shows that the space industry is an important opportunity area for growth and jobs. The latest “Size and Health of the UK Space Industry” report estimates that 228 organisations in Scotland generated a combined income of £298 million in 2021-22—almost double that of 2018-19 in real terms. About 6,500 people work in space in Scotland, and the figure for the UK is between 48,000 and 52,000. Income amounts to between £17.5 billion and £20 billion. There are more than 100,000 jobs in the supply chain as well.

Let us pause for a moment on that: we have only just got going on this and we have 48,000 or more jobs. There is much potential here for many more good, high-paid jobs of the future, which is what Britain needs.