Space Industry Bill [Lords]

Debate between John Hayes and Nigel Evans

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

[Mr Nigel Evans]

Will my right hon. Friend give way?

[Mr Hayes]

This is going to be a relatively short speech, but I am happy to give way to my hon. Friend.

[Mr Evans]

I am more past than future, that is for certain, but I am as excited as my right hon. Friend about the potential for space development, particularly in a multi-billion industry in the UK, which is growing at an incredible 8% a year. As we have the desire to put more satellites into space, so that we can do all these wonderful things he has spoken about, is he happy and content that the Bill gives sufficient regard to debris mitigation to ensure that we are not just putting more junk for the future into space?

[Mr Hayes]

To avoid delaying the House unduly, I refer my hon. Friend to Room, The Space Journal, which contains an article that I was reading just this weekend on exactly that point. It is headed “Space debris break point” and sets out precisely the kind of risks and problems he highlights. It is unsurprising he does so, given his interest in this subject and the expertise he has gained in it over many years. I am sure that reading that will allow him to take the matter further, perhaps by tabling some difficult written questions for the new Minister, of the kind that my officials used to bring to me, not just often, but daily. I merely echo what he and others have said: that the UK space industry is indeed a leading world player. The income for the industry in 2014-15 was reported at £13.7 billion, which is equivalent to 6.5% of the global space economy. As has been said, it is a rapidly growing industry. It is growing much faster than the economy as a whole. This is something we do well and can do still better, but only if Government play their part.

So what is that part? It is definitely about creating the legal framework necessary to build certainty. Investors will not spend money in the UK space industry, or will not continue to do so, unless they know that the legal framework to provide appropriate protections is in place. Secondly, it is about facilitating and encouraging the co-operation that is at the heart of the industry. I refer to the co-operation between the world of academia, industry and Government. That is what Reaction Engines, for example, embodies; it is an example of such co-operation, and others are too. Thirdly, it is about trying to anticipate those future changes, although not to stipulate them and certainly not to constrain any of the organisations involved in the sector, because, as I have said, there will be secondary legislation. This is just the beginning of a journey—a journey into space, one might say—which is certainly not definitive. It could not be so, because of the nature and the character of the technology with which we are dealing.

There are, though, some challenges with the Bill. I acknowledged them as Minister and know that the current Minister will do so too. There are certainly challenges in respect of liability. I would be surprised if, in our scrutiny of the Bill, we did not face up to that and ensure that the sector feels no doubt about the effect on the wider public of any changes that follow the advent of launch facilities in the UK.

This is not a lesson to the current Minister, because he is already experienced, but it is a lesson to newer Ministers. It is true that some—they may even be civil servants—will say, “But what about state aid, Minister?” There are those who will say, “But what about the Treasury, Minister?” These are always the stock lines. The first is, “The Secretary of State doesn’t agree with you,” to which one says, “I’ve cleared it with the Secretary of State.” They then say, “Downing Street’s not happy,” and one says, “I have been to Downing Street.” They then say, “The Treasury will never wear it,” and finally state aid gets pulled out—“It won’t pass the test of state aid.” I take the simple view that the purpose of a Government is to aid those whom they serve. We should support British industry and the British people. I have never been entirely convinced by the arguments about state aid; what is the purpose of a state if it does not aid the circumstances of the people it serves?

I urge caution—I put it no more strongly than that—that in our consideration of liability we do not allow ourselves to do less than we should. We must leave no third party worse off as a result of anything that occurs in this industry and which follows the Bill. We must leave no one feeling vulnerable and no business feeling that anything that results from the Bill might lead to a vulnerability that might prevent further development of or investment in a technology. The liability issue must be settled.

The second challenge is that of skills. It is known that I take a profound interest in the development of skills and we have made great progress in recalibrating our estimation of the importance of technical, vocational and practical skills. I have long believed that it is those skills, aptitudes, tastes and talents that will allow us to make the best of the opportunities that will grow as we increasingly develop as a high-tech, high-skilled nation. Our future lies in that direction, but we must have the people to make that future a reality.