Space Industry Bill [Lords]

Stephen Hammond Excerpts

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

[Stephen Hammond (Wimbledon) (Con)]

It is a great pleasure to follow my hon. Friend the Member for Morecambe and Lunesdale (David Morris), who is the chairman of the parliamentary space committee.

When I listened to the opening remarks of my right hon. Friend the Member for Wantage (Mr Vaizey), who said that my hon. Friend the Member for Mole Valley (Sir Paul Beresford) had tiptoed into the debate, I realised that I was about to do exactly what the Bill is not intended to do, which is to crash into the debate. There are moments when I think I know a little about transport, but listening to the erudite, learned and extensive speeches so far, I realise that I know almost nothing about the sector. However, I want to make three very basic points, if I may.

When doing some thinking about what I should say tonight, I looked at the industrial strategy. Its strapline is: “Building a Britain…for the future”. That is exactly what this Bill is all about, and that is why it deserves our support.

Quite rightly, there have been a lot of comments from Members tonight about the size and growth of the sector. Quite rightly, in his opening remarks the Minister set out the Government’s ambition that the UK should be at the forefront of the opportunities that arise from this technology, and our excellence in the small satellite market. Overall, however, the key thing is that not only the Government but the private sector will invest in this industry. Therefore, if we want to see that investment, it is key that certain things happen. One is that the Government are in favour of it and create the right environment for businesses to succeed. Part of that is about putting in place the legal certainty for investment, as mentioned previously.

Whichever way we look at the current regulatory environment, it is in need of updating, so the Bill is particularly appropriate. That brings me to my first substantive point, which is that many people in the House will know that, in fast-developing technologies and industries—particularly across the transport and infrastructure sector—not only is the regulatory environment lagging, as it is currently in the space sector, but the Government make no attempt to bring it up to date or to set in place a framework that will anticipate developments. One of the great advantages of this Bill is not just that it sets out a regulatory framework, but that it sets out one that is likely to future-proof the industry’s development over the next few years. I commend that thinking because, in so many other areas of infrastructure and technology, we have seen regulatory environments that frustrate future development.

From my quite cursory look at the Bill, it seems that there are a couple of issues that the Minister will particularly want to look at. I should start by saying that I particularly commend clause 1(4), which makes the point I have just been making. Normally, Back Benchers say to Ministers, “The last thing we want is for sweeping and inclusive powers to be given to Ministers”, but that is what we need in this sector. We need forward thinking and examples that can future-proof regulation. The demand for small satellites, the expansion of markets, the technology and global competition mean we need a relatively free and loose regulatory environment that can anticipate developments—within the context, of course, of ensuring safety and room for development. That said, there are issues with clause 1 that the Minister will want to explore later: for instance, some of the language, particularly some of the geographic restrictions, might prove to contain rather than allow development.

I also want to guide the Minister towards clause 8. There are two things there on which he will want to reassure the House if he really does want a forward-thinking regulatory environment and development in the sector. The phrase

“contrary to the national interest”

could easily be defined where an activity threatens either security or legal aspects, but he will want to ensure that activities are not regulated on the basis of prejudice. If one were to follow previous regulatory systems, there could be a whole proliferation of opportunities, in the area of economics, caught by the phrase. It must not stifle development.

The Minister will also want to reassure the House about the phrase in clause 8:

“the applicant has the financial and technical resources”

to undertake activities. The applicant should, of course, be able to fund its activities and must ensure that it is technically competent in this area, and it must ensure it has the right liability insurance and all aspects of safety in place, but—if I may guide the Minister to other regulatory systems, particularly in the financial services world—such statements elsewhere can be used to stifle small firms and initiative and prevent smaller companies from competing against larger companies. That sort of phraseology is often used to put in place relatively superfluous information requirements that prove to be overly exacting. I ask him to think carefully about that phrase when regulations are made so that his ambition and, I am sure, the whole House’s ambition—that the industry might thrive and opportunities be made available to firms both large and small—might be achieved.

Secondly, many colleagues have spoken about the marvellous opportunities in their constituencies, and it would be foolish of me not to take the same opportunity. Many would perceive Wimbledon as a leafy suburb in south-west London, which indeed it is, but I also like to think of it as tech suburb. Our small high-tech and biotech companies exemplify what is true of the opportunities in the Bill for all Members and their constituencies. Members might not have the space for a spaceport, but they will have the opportunity to bring forward and sponsor the inspiration that space brings to many and to create opportunities in the supply chain. That is what I will be doing in my constituency.

Many concentrate on spaceports and the large companies, but one forgets the opportunities for the small high-tech firms that will arise from the expansion of the satellite market and sub-orbital spaceflight. It is incumbent on us to ensure plenty of opportunities for the supply chain and small companies and to ensure that the skills required are given the appropriate boost. In the latter part of his speech, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes) talked about skills. It is clear that a greater emphasis needs to be placed, both at secondary school and university level, on the skills that will allow industries such as the space industry to develop.

Finally, as I have mentioned extensively already, it is often the smaller firms that produce the ideas that enable big leaps forward such as those we expect in the space sector. It is often those accelerator institutions that push the technology forward. I hope that the Minister and the Treasury will have due regard to ensuring that those institutions can prosper and succeed so that the developments in technology, some of which we cannot anticipate, can come forward and so that sub-orbital spaceflight and space activities can succeed in the future. The Bill will future-proof the regulatory environment and could make a significant difference to investment and innovation in transport over the next decade.