Space Industry Bill [Lords]

Public Bill Committee, 23 January 2018.

David Morris (Conservative, Morecambe and Lunesdale)

I do not know whether it is relevant or not, but I am the chairman of the all-party parliamentary group on space.

Duties and supplementary powers of the regulator

Karl Turner (Labour, Kingston upon Hull East)

I beg to move amendment 13, in clause 2, page 2, line 25, at end insert—

“(ea) the effect on the environment and on local communities of activities connected with the operation of spaceflight activities or the operation of a spaceport as licensed under this Act;”

This amendment adds impact on the environment and local community activities to the list of areas the regulator should take into account when exercising functions under this Act.

Karl Turner (Labour, Kingston upon Hull East)

It is a pleasure to serve under your chairmanship, Mr Bone. The amendment adds impact on the environment and local community activities to the list of areas the regulator should take into account when exercising functions under the Bill.

I am grateful that the Government listened to my colleagues in the other place, tabled new clause 1 and agreed to undertake assessments of environmental effects before the regulator grants certain licenses. I pay tribute to my Front-Bench colleagues in the other place, who did a great deal of work to improve the Bill by persuading the Government to make a number of crucial concessions.

I do not intend to press the amendment to a vote, but I would like to ask the Minister whether he will set out on the record exactly how the proposed operator licensing regime and its regulation powers will work in relation to existing planning laws and processes. Concerns were raised in the other place that the regulator or persons with an operator license will be able to overrule or disregard any existing planning regulations, laws and processes when it comes to potential spaceport or spaceflight operations in the UK.

As I indicated, I am happy to withdraw the amendment if the Minister is prepared to clear up any ambiguity surrounding existing planning procedures and the development the UK’s space industry. I hope he listens not only to the concerns that we raise in Committee but to the expert contributions in the other place.

Jo Johnson (Conservative, Orpington)

It is a pleasure to serve under your chairmanship on this important Bill, Mr Bone. I echo the hon. Gentleman’s thanks to Members in the other place for the collegiate and helpful way in which they developed the Bill into its current state.

I recognise the hon. Gentleman’s concerns about environmental protection and the impact on local communities of spaceflight activities and the operation of spaceports under the Bill. As he said, similar issues were raised in the other place. Following constructive debates in the other place on environmental issues, the Government reviewed the compatibility of the existing planning and environmental framework with spaceflight activities. During that review, certain situations were identified where the existing framework may not provide the environmental protection that we all wish to be required of spaceflight activities. Discussions have since taken place across Government to address that potential gap, resulting in the tabling of Government new clause 1.

New clause 1 will place a mandatory requirement on an applicant for either a launch or a spaceport licence to submit an assessment of the environmental effects of their proposed activity as a precondition of receiving a licence. That duty will ensure that appropriate assessments of environmental effects are conducted by the operator or spaceport licensee and considered by the regulator prior to the determination of an application for a licence.

As hon. Members are aware, there is already a comprehensive body of environmental and planning legislation with which spaceports and spaceflight operators will need to comply, independently of the requirements in the Bill. As such, the new clause seeks to ensure that appropriate assessments are undertaken without placing a disproportionate burden on applicants. To achieve that, it allows for existing equivalent environmental assessments to be considered where appropriate. That will be the case only where the regulator is satisfied that there has been no material change of circumstance since the previous assessment was prepared.

I hope I have reassured hon. Members of the Government’s intention to ensure that spaceport and operator licences are granted only following a robust assessment of the environmental effects of the activities those licences permit. New clause 1 goes even further than the hon. Gentleman’s amendment 13. It adds to the duty on the regulator in clause 2(2)(e) to take into account any environmental objectives set by the Secretary of State, including those set by the Environment Agency.

We also amended schedule 1 in the other place to include an indicative licence condition that, if included in a licence, would require assessments of the impact of noise and emissions from spaceflight activities. I hope in the light of the Government new clause that the Committee will agree that the Bill contains robust environmental protections, and I ask the hon. Gentleman to withdraw his amendment.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I, too, welcome the amendment and the Government’s new clause to strengthen the environmental protections. Those hoping to establish spaceports are still concerned about exactly what is expected of them. It is about trying to get the right balance between protecting the community and allowing spaceports to develop. The sooner the regulations and expectations are clear, the more likely it is that spaceports will go ahead. At the moment, it is hard to expect them to invest if there is still the risk that, at some point, they simply will be ruled out by one of the environmental regulations.

Karl Turner (Labour, Kingston upon Hull East)

I beg to ask leave to withdraw the amendment.

Provision of range control services

Philippa Whitford (Scottish National Party, Central Ayrshire)

Again, I welcome any clarification, sooner rather than later, about who is envisaged as providing the range control services. It is clearly stated and welcome that the provider should be independent from those operating the spaceport or the flight. Would it be air traffic control? Who exactly is identified? The problem with the Bill is still that there is a lot of vague gaps that have not been filled in, which is causing anxiety.

Jo Johnson (Conservative, Orpington)

I thank the hon. Lady for her question on range controls. Clause 7 requires that range control services must be provided either by the Government or by licensed providers. At present, only one part of the Government—the Ministry of Defence—is able to provide range control services. Range safety for existing military ranges is regulated by the Defence Safety Authority, but our intention is that, for spaceflight, those services will be provided on a commercial basis. Indeed, a driving purpose of the Bill is to enable commercial and not state-sponsored or institutional spaceflight. Since range control services are one of the key mechanisms through which we will protect the public during spaceflight activities, any provider must hold a licence. That will help to ensure the regulator that only fit-and-proper persons can act as a range control service provider. I hope that clarifies the situation.

Philippa Whitford (Scottish National Party, Central Ayrshire)

Is the Government’s expectation clear to the companies that are already developing? Are they able to have the security to set up what is, in essence, yet another completely new industry to service the space launch industry?

Jo Johnson (Conservative, Orpington)

In our Launch UK programme, we have made it clear that range control is one of the opportunities for which we are seeking interest from industry. To that extent, the private sector is aware that this is one of the big opportunities that the Bill will enable.

Grant of operator licences: safety

Karl Turner (Labour, Kingston upon Hull East)

I beg to move amendment 14, in clause 9, page 7, line 37, leave out “to (4)” and insert “and (3)”.

This amendment changes the requirements the regulator must satisfy in order to grant an operator licence to UK Space Port operators.

The amendment is merely a probing amendment, and I do not intend to speak to it for very long. We would like the Government to ensure that the regulator must not grant an application to a potential operator unless it has carried out a thorough risk assessment and meets the prescribed requirements as laid out in the Bill. I would like to press the Minister and seek further details on how the relationship between the Health and Safety Executive and the Civil Aviation Authority or UK Space Agency will work, and how best practices will be shared.

A lengthy debate in the other place highlighted the concerns. I am grateful to the Minister in the other place, who indicated that he would go away and work with officials. Concerns were raised, mainly by my Front-Bench colleagues in the other place and by me in the Commons on Second Reading, about how the Health and Safety Executive will work with the regulators. The Government stated that there would be a memorandum of understanding, but we are still in the dark when it comes to details.

I seek assurances from the Minister that regulators have the expertise and resources necessary to ensure that the general public are kept safe when it comes to the potential development of our space industry. I also reiterate that, so far, we have little detail on how the UK Space Agency and the CAA are going to share best practice. We would be grateful if the Minister could shed any more light on that.

Jo Johnson (Conservative, Orpington)

I will certainly attempt to do so. The hon. Gentleman raises the important issue of the safety requirements that regulators must take into account when deciding applications for a spaceflight operator licence under clause 9. The Bill makes it clear that safety regulation will be at the heart of the regulation of spaceflight, spaceports and associated activities. Clause 2 sets out the core duties of the regulator and establishes that ensuring the health and safety of the public is the primary duty.

Clause 9 imposes very clear requirements on both the applicant for a spaceflight operator licence and the regulator in deciding that application. Clause 9 requires that applicants for a spaceflight operator licence assess the risks to health and safety posed by the spaceflight activity. Clause 9 makes a necessary differentiation between the assessments carried out for those who voluntarily agreed to participate in spaceflight activities, which would include any crew or other spaceflight participant, and others who are not taking part in any prescribed capacity—the general public. For people taking part in spaceflight activities, details of the risk assessment required under subsection (2) will form a critical part of the informed consent form that clause 16 requires the volunteers to sign before they are allowed to participate in those activities.

The other key aspect to the clause is managing risks to the general public. Even after all steps have been taking to reduce risks to as low as is reasonably practicable, subsection (4)(b) means that the regulator will not issue a licence if the residual risk to public health and safety remains unacceptably high. If amendment 14 were passed, that protection for the general public would be removed, although I understand that, as the hon. Gentleman said, it is a probing amendment.

Subsection (5) enables the making of regulations to make provision about the matters that operators must take into account and other requirements to be met in carrying out risk assessments. Paragraphs (b) and (c) address the risk to public safety, the steps to be taken to ensure that risks are as low as reasonably practicable, and how acceptable levels of risk are to be determined. The regulations will also prescribe the factors that must be taken into account in determining acceptable levels of risk. Subsection (6) enables regulations setting out information that applicants must provide so that the regulator may be satisfied that an applicant has done what it is required to do under the licence.

The hon. Gentleman asked about the MOU between the CAA, the HSE and the Health and Safety Executive for Northern Ireland on aviation safety. The MOU between the HSE and the CAA on aviation safety is publicly available on the CAA website, and we expect any future MOUs between the HSE and spaceflight regulators to be made publicly available in a similar manner.

In conclusion, the clause is central to the safe conduct of spaceflight in the UK. It will ensure that risk is managed appropriately and give the regulator the power it requires to oversee that. I am confident that it sets out robust and clear requirements of applicants. I therefore ask the hon. Gentleman to consider withdrawing his amendment.

Philippa Whitford (Scottish National Party, Central Ayrshire)

This is one of the key areas in the Bill where spaceport and launch operators do not know what is expected of them. I understand that the Government wish to consult, but the sooner that it is clarified the better. Regulations coming forward two years after Royal Assent—that comes from a comment in the Lords, and would mean the summer of 2020, when the Government had hoped to launch—would throw complete planning blight over the industry. It is not possible to borrow money to develop launch vehicles or a spaceport without any idea what standard has to be reached.

On clause 9(9) and thinking about passengers, one of the industries that will develop is space tourism. Clearly, the public must be protected as far as possible. In the past, those involved in launch or space abilities have been incredibly fit and trained people. For those going as tourists, that will not be the case. It will be important that we carefully lay down what level of health expectation or physical training is required, because we do not want the early years of the industry to be marred by deaths in space.

Jo Johnson (Conservative, Orpington)

I will respond to two of the points made by hon. Members. On early visibility of licence requirements, to get the industry feeling confident that it has a clear set of rules to work with, we will continue to engage with it as we develop the detailed regulations to ensure that the legislation facilitates and supports development in the sector and provides operators with the confidence to move forward with their plans. In addition, as has been said, regulators will be holding extensive pre-licensing discussions with potential operators in order for them to provide more detailed guidance.

Karl Turner (Labour, Kingston upon Hull East)

I thank the Minister for his response and I beg to ask leave to withdraw the amendment.

Grant of spaceport licence

Karl Turner (Labour, Kingston upon Hull East)

I beg to move amendment 15, in clause 10, page 8, line 27, leave out ‘satisfied that’.

This amendment ensures that two defined criteria steps are properly defined for granting an application for a space port licence.

The amendment is intended to make the legislation clearer about the regulator not granting an application for a spaceport licence “unless satisfied that”—this is from the Bill—

“the applicant has taken all reasonable steps to ensure that risks to public safety arising from the operation of the spaceport are as low as reasonably practicable, and…any prescribed criteria or requirements are met.”

Speaking purely as a lawyer, I thought the legislation would be clearer to remove “satisfied that”, but on reflection that is probably just semantical. I therefore beg to ask leave to withdraw the amendment.

Jo Johnson (Conservative, Orpington)

If the amendment has been withdrawn, I would just beg to move that the clause stands part of the Bill.

Terms of licences

Karl Turner (Labour, Kingston upon Hull East)

I beg to move amendment 16, in clause 11, page 8, line 37, leave out subsection (2).

This amendment removes the specified limit they must pay in damages to an uninvolved third party in the event of an accident in operator licences.

Karl Turner (Labour, Kingston upon Hull East)

The amendment relates to the terms of spaceport and space operator licences. I propose to remove the specified limit that must be paid in damages to an uninvolved third party in the event of an incident in the operator’s licences. Clause 11 concerns the terms that may or must be included in a licence issued under the Bill authorising spaceflight activities, the operation of a spaceport or the provision of a range control services.

Colleagues in the other place were concerned about the particular wording of this section. We have heard that the amount of liability may be capped. The Minister will correct me if I am wrong, but I think it was mentioned on Second Reading in the Commons that a limit of £20 million had been suggested. I would like the Minister to clarify the issue of the cap, and that is why we have re-tabled the amendment. Although I declare an interest as a lawyer, I did not practise personal injury law and this is not my area of expertise. However, it seems to me that £20 million would cover two very serious non-fatal incidents. It would not be anywhere near enough to cover costs such as living costs and other issues that would arise from serious injury.

I want to know from the Minister, if he is prepared to tell me, whether there is a limit on how much the operator or the Government must pay in damages to an uninvolved third party in the event of an incident. It is also not clear who pays if the losses exceed the proposed cap. Are the Government the insurer of last resort? In the unlikely event of a catastrophic incident, would the Government meet the excess above any cap?

We are certainly not opposed to a cap. We just want some clarity on the issue. Therefore, I would be grateful if the Minister could clear up some of these concerns, which were also raised in the other place, where they were very well put.

Philippa Whitford (Scottish National Party, Central Ayrshire)

My amendment is completely the opposite of the Labour amendment. As things stand, the Government basically take liability for injury and accident and the operator has to indemnify the Government to cover that risk. What we are looking for is a change in subsection (2) from “may” to “must”. The Outer Space Act 1986 makes that clear. At the moment, the liability limit is €60 million, not £20 million. Without some form of cap on the operator’s liability, it is impossible for operators to get insurance. Therefore, they will simply continue to operate outside the UK under the Outer Space Act, somewhere with a limit of €60 million, rather than in the UK with unlimited liability, for which they simply cannot get insurance.

Amendment 6 deals with the level of cap for the kind of launches that are likely to occur from the UK. Further on in the Bill, we would want to have perhaps a per launch cap rather than per satellite, as it is now. With CubeSats and nanosatellites launched in clusters, the liability cap would be absolutely untenable. Consultation is needed. There may be a later reference to launches that could be defined as green or amber, and it may be that different caps are set for that kind of launch as an overall approach. However, there has to be an ultimate limit and that should not be higher than the current €60 million.

The clause mentions the different aspects of launch, and those are the spaceport, the range control and the launch operator, and later there will be the satellite operator. I have tabled an amendment to a later clause to define the liabilities of those groups, with very clear margins, so that there are no gaps that a victim of an accident could fall between.

Jo Johnson (Conservative, Orpington)

Clause 11(2) provides a power for a licensee’s liability to indemnify the Government under clause 35 to be capped in an operator licence. Amendment 16 would remove that vital power. Under both this Bill and the Outer Space Act 1986, operators have a liability to indemnify the Government against claims for damage or loss from foreign states and their nationals. That is to ensure that we meet our obligations under the UN space treaties.

However, satellite operators have previously raised concerns that such a liability is a barrier to operating in the space industry. Operators found that the unlimited liability made it difficult to raise finance or to insure against. The Government have therefore responded to those concerns.

The unlimited liability provisions under the Outer Space Act were amended by the Deregulation Act 2012 and since then licences issued under that Act for the procurement of an overseas launch and the in-orbit operation of a satellite benefit from a cap, which is set out in licence conditions.

The UK Space Agency publishes the usual level of cap in its guidance, which currently sets the cap at €60 million for standard missions. Crucially, however, the level is not set by statute, so the cap can be varied depending on the risk of the activity in question. Some activities currently regulated under the Outer Space Act, notably procuring the launch of a space object and the operation of a satellite in orbit taking place from the UK, will be regulated under this Bill in future, and it is the intention to continue to exercise the discretion to cap the liability to indemnify Government in these licences.

Therefore, following Royal Assent of this Bill, amendment 16 would reverse current Government policy and disadvantage satellite operators in the UK. Conversely, amendment 5 seeks to ensure that all operator licences must cap the liability to indemnify the Government under clause 35. Amendment 6 would then go on to ensure that the level of this cap would be set out in a report to Parliament.

I understand clearly that the intent of these amendments is to support operators in the UK and the Government welcome support for that principle, which is why we have included this power in the Bill. However, these amendments are premature. The cap on the indemnity to the Government under the Outer Space Act was based on many years of licensing the procuring of the launch of space objects and of the operation of satellites in orbit. Indeed, it was not put in place until more than 25 years after that Act gained Royal Assent. The costs and benefits of capping liability for those activities were fully considered and were subject to a full consultation with industry. We intend to take a similar approach to considering capping a launch operator’s liability to Government under this Bill, as launch is a new activity in the UK and poses more risks for the UK as a launching state.

As I said on Second Reading, we intend to announce a call for evidence on all issues relating to insurance and liabilities early this year, following Royal Assent. That will allow us to start to assess the appropriateness of a cap for this new and potentially riskier activity, balancing the economic benefits of such activity with the need to protect the taxpayer.

On that basis, I hope that the hon. Member for Kingston upon Hull East will withdraw the amendment.

Karl Turner (Labour, Kingston upon Hull East)

I beg to ask leave to withdraw the amendment.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I wish to press amendment 5, which would change the wording from “may” to “must”. There is still room to consult on the level of the cap, but the industry requires a Government commitment that there will be a liability cap.

Jo Johnson (Conservative, Orpington)

We intend to explore that carefully in the consultation, taking into account the fact that launching in the UK is a riskier activity than procuring the launch overseas. It poses a higher level of risk to the UK taxpayer, and we need to consider it very carefully.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I assume the Government recognise that other launching states, such as Australia, France and the US, all have liability caps. If there is no cap, that will simply kill the launch industry dead in this country. I will not push to a vote amendment 6, which would set the cap at a particular level, but the Government should accept the principle that there will be a cap. I would be happy if the Government plan to bring forward such a measure before the third day, but simply to leave the wording as “may” leaves too much doubt.

Conditions of licences

Karl Turner (Labour, Kingston upon Hull East)

I beg to move amendment 17, in clause 12, page 9, line 41, at end insert—

“(ea) must consult the Environment Agency or (as appropriate) the Northern Ireland Environment Agency, the Scottish Environment Protection Agency or Natural Resources Wales;

“(eb) must consult any relevant local planning authority;”

This amendment ensures that the devolved Administrations are consulted in regards to respective Environment Agency bodies.

Karl Turner (Labour, Kingston upon Hull East)

I will be brief, Mr Bone. The amendments aim to tighten up some of the ambiguous wording in the Bill. They are intended to ensure that if space activities were to be established under any of the devolved Administrations of Scotland, Northern Ireland and Wales, their respective environment agency bodies would be consulted before any decision was made on granting an operator licence in their jurisdictions. Will the Minister assure us that he will ensure that the regulator will properly consult the Northern Ireland Environment Agency, the Scottish Environment Protection Agency or Natural Resources Wales, as well as any relevant local planning authority, before an operator can be granted a UK spaceport licence?

I tabled amendment 18 with the aim of properly defining a “relevant local planning authority”. We believe that the Bill is too vague and have expanded on its wording to ensure that a local planning authority is defined as an

“authority with jurisdiction over any location which would be significantly affected by the licence application”.

I have seen the Minister’s collegiate approach to the Committee and hope that he will note Opposition concerns, and I shall be happy to withdraw the amendment if he addresses the important points I have raised.

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

It is always a pleasure to serve under your chairmanship, Mr Bone.

I support the amendments and hope that the Minister can answer some questions. I am speaking with a constituency interest, as Natural Resources Wales is in my constituency. As that constituency borders England, and has a maritime border, issues such as those we are considering are of regular concern to my constituents. A recent example was the building of the new Hinkley Point nuclear power station on the other side of the Bristol channel. Various significant concerns were raised about the granting of licences for the disposal of mud, which is being removed from the Hinkley Point site to the Welsh side of the channel.

I do not want to get into the specifics of that example, but as there is a question of potentially hazardous materials and the potential for cross-border contamination within the UK, I agree that the matters should be the subject of proper consultation with the devolved authorities, given the likely consequences of anything untoward happening.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I welcome the amendment. My hon. Friend the Member for Glasgow North West and I certainly support it, because three of the potential sites are in Scotland, and one is in Wales. However, as we have discussed, the industry could grow and while there is not currently a site in Northern Ireland, there could be in future. It is important that the devolved Governments should be respected and consulted.

The Government introduced new clause 1 on environmental impact right at the start, when we considered clause 2, and it is crucial that they should respect the devolved Governments’ environmental agencies and local planning considerations.

Jo Johnson (Conservative, Orpington)

I thank hon. Members for raising important issues on consultation with relevant environmental and planning bodies. The regulator will identify what assessments of environmental effects are appropriate, during the pre-application process. In reviewing those assessments and deciding whether conditions should be attached to a licence, the regulator may wish to have an input from various environmental bodies. However, requiring consultation with the relevant environment agency and local planning authority before deciding what conditions to attach to a licence is not necessary, and may end up being disproportionate.

For example, once the industry has developed, multiple launches may occur under a separate but almost identical licence. In such a case it would be disproportionate for the regulator to have to consult the environment agency and local planning authority for each new licence. It is also worth noting that clause 2 requires the regulator to take into account any environmental objectives set by the Government, which would include any issued by the environment agency.

The existing planning, regulatory and environmental framework will continue to apply, and environmental bodies will have a say, in accordance with their statutory remit, at the relevant stages, such as when planning permission is applied for. I hope that in the light of the Government amendment and the provisions already in the Bill, Members will agree that robust assessments of environmental effects will be conducted and considered prior both to the granting of a licence and to the imposition of conditions under the Bill. I would therefore ask the hon. Member for Kingston upon Hull East to withdraw amendment 17.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I wonder whether the Government would consider including consultation with these agencies within the environmental impact assessment in clause 2, as amended by new clause 1. The Minister talks about consulting with the Environment Agency but, obviously, in the devolved administrations there are three other environment agencies and they should have their place.

Jo Johnson (Conservative, Orpington)

I would not want the Committee to think that we have not been engaging closely with the devolved Administrations in the development of the Bill, because we have, and over a considerable period. We have worked with Scotland, Wales and Northern Ireland at official level to ensure that all the devolved Administrations are content with provisions in the Bill. I have been out in Northern Ireland myself to discuss the opportunities this Bill presents to businesses there.

Karl Turner (Labour, Kingston upon Hull East)

While these amendments intend to ensure that the respective environmental bodies would be consulted were space activities to be established in any of the devolved Administrations—Scotland, Northern Ireland and Wales—I do not think the Government have gone anywhere near far enough on that. On that basis, I want to push the amendment to a vote.

Training, qualifications and medical fitness

Philippa Whitford (Scottish National Party, Central Ayrshire)

On the matter of informed consent, I highlight the written evidence submitted to us around what will be defined as informed consent and the possible need to explain complex issues and whether there would be potential for exposing technical information, which, under the US’s ITAR—International Traffic in Arms Regulations—agreement, would be a problem. That is not particularly something I want to bring forward, but we have received a written submission on informed consent.

Jo Johnson (Conservative, Orpington)

Informed consent is an important part of the Bill. We will be developing detailed regulations on informed consent, including the information that operators must provide to individuals before they sign consent forms.

Security regulations

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

I want to ask the Minister a few questions regarding the clause. I apologise if they have been covered already in other parts of the debate.

Clearly, the security of space for our operations is crucial. These activities will be of significant interest to terrorist organisations or others who would wish to cause harm. This is a problem shared not only in this country but across Europe and the world. Currently, we have sensitive information-sharing systems with the Five Eyes countries and our European neighbours. Given the context of Brexit and the absence of guarantees on the existence of a security treaty and so on—these are issues we have covered at great length in the Home Affairs Committee—will the Minister discuss the consideration given to sharing information with our European partners, in particular regarding the safety and security of operations and those who would wish to target them? On the one hand, any new technology or operation could lead us towards a cautious and very secure approach, but there may also be some issues, whether in relation to the cyber or physical aspects of these operations, such as using locations that have not traditionally been used before for civil aviation or other aerospace activities.

We need to take every precaution necessary, particularly with regard to the increasing threat from not only terrorist organisations and non-state actors, but Russia and other countries that would seek to carry out cyber-attacks—North Korea, for example. Many allegations have been made about attacks on other parts of the UK’s infrastructure, including the NHS, and I see no reason why they would not choose to attack such a high-profile area as space activity.

Will the Minister say a little about how we will ensure the most thorough sharing of information? Will he also give us some guarantees? For example, does he believe that a security treaty will be needed with our European neighbours to ensure that data on individuals can be shared adequately enough to deal with those concerns?

Jo Johnson (Conservative, Orpington)

National security and the security of spaceports is, indeed, a vital key element of the Bill. The Bill contains measures to secure against unauthorised access to and interference with space craft, spaceports and any associated infrastructure. It also enables the Secretary of State and regulators to take action where necessary in the interests of national security. The hon. Gentleman will be interested to know that the Bill extends existing civil aviation security powers to regulate spaceplanes and spaceports and introduces broadly similar arrangements for operations to launch objects into orbit, but tailors them to the sensitive nature of satellites and reflects the fact that vertical operations will not be manned.

As with aviation security, the Government will work closely with key partners in Europe and around the world to ensure that security remains paramount in the development of the Bill and the industry. We will continue to work with international partners in all appropriate forums to review and, if necessary, to develop and strengthen measures to ensure that transport generally, and in this case the space flight sector, is cyber-secure.

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

Will the Minister be specific on the importance of having legal agreements in place for the sharing of relevant information on the matter—the importance, for example, of a security treaty of some sort, in particular with our European partners who are not covered by the Five Eyes agreements? Does he agree that that is crucial?

Jo Johnson (Conservative, Orpington)

Should we identify a need for additional legislation, the Bill provides us with the power to adopt appropriate regulatory measures and the ability to issue directions, where necessary and proportionate, to specific entities.

Spaceport byelaws

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

Will the Minister say a bit about the measures the Government plan to put in place to deal with drones and unmanned aerial vehicles, particularly in relation to their operation around spaceports? There are substantial restrictions on their operation around civil aviation activities in the UK, but a wide range of drones can be commercially purchased and many operators are unaware of the consequences of using them, near to not only airspace but other activities. Will he comment on that, given the particularly sensitive nature of space flight activities and the risk that could be caused by, for example, an incursion into the space around a launch or training activities?

The clause crucially mentions road traffic enactments and the parking of vehicles. We know of terrorist organisations that have attempted to park vehicles near UK airports in the past and it is crucial to retain the physical security around those sites. Given the ability to launch and remotely control drones from great distances, what thought has been given to whether any additional restrictions will be needed or whether the existing regulations for the use of drones will apply in byelaws for space flight operation centres?

Jo Johnson (Conservative, Orpington)

The clause enables the Secretary of State to make security-related regulations and to provide guidance on how they may be complied with. The hon. Gentleman asked specifically about drones. He might be aware that the Government announced at the end of November that it is their intention to introduce drone legislation in the spring. The Government will be publishing a draft drone Bill, which will look to extend police powers to extend drone misuse and to mandate the use of safety applications in the UK. We will also be looking at an amendment to the air navigation order to introduce legislation and leisure pilot tests. I hope that addresses his concerns.

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

Is it therefore the Minister’s intention that when that legislation comes forward it will specifically look at, and make it clear that it applies to, operations around spaceports and space activities? Further, will it be made clear that it concerns not only drones, but—although we are not largely talking here about manned space flight—the use of laser pointers and so on, which we know is a regular problem around airports and which might impede the operation of staff working at those sites or perhaps blind technical equipment being used for space launch activities? Will it be clear that the new legislation applies equally to spaceport activities?

Jo Johnson (Conservative, Orpington)

The hon. Gentleman will be interested to know that we will be introducing draft legislation. Should he detect any shortcoming in its application and should he continue to have concerns about whether the spaceport and spaceflight activity enabled by the Bill would have risks posed to it by drone activity, there will be plenty of opportunities in the development of that legislation for Members to point that out to Government.

Neil Coyle (Labour, Bermondsey and Old Southwark)

When will the draft legislation come forward? Given that the police have indicated they do not have the resources to investigate crimes such as shop lifting, bike thefts and mobile phone thefts, will it include resources to ensure that the police can adequately deliver those new responsibilities?

Jo Johnson (Conservative, Orpington)

Sorry, I did not catch the last bit of what you said.

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

Will the draft legislation also identify new resources to ensure that this responsibility of the police, as well as others, can be adequately enforced?

Jo Johnson (Conservative, Orpington)

On the timing, we announced at the end of November that we would introduce the draft legislation in the spring. Spring is slightly movable. We are not quite in spring, I would say, in the middle of January. Later this year—later on this spring—we will bring forward that legislation. The hon. Gentleman will obviously want us to get the legislation right. We are working carefully in the Department to ensure that it is fit for purpose and covers all the situations that he has rightly been bringing to the attention of the Committee.

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

I want to ask the Minister one further question and would appreciate his indulgence. He refers to the enforcement of the byelaws by a constable. Does he expect, for example, that the responsibilities around any spaceport enforcement of byelaws will be down to the local and geographical police constabulary, or does he expect that the responsibility will be undertaken by one of the non-geographical forces, such as British Transport Police or the MOD police or the Civil Nuclear Constabulary?

The only reason I ask is because, as is often the case and as I have experienced in my own constituency, when there are major national sites of interest—for example, I have the National Assembly and some other major locations of national significance in my area—there is a tendency, given the additional security requirements around those locations, sometimes to divert resources from local policing activities.

Given the existing strains on police forces, community policing and so on, I am a little concerned in that we all want those byelaws to be enforced and security to be absolutely maintained. For example, will consideration be given to additional resources for a police force where a spaceport is located and licensed to ensure that it can cope with those responsibilities and carry them out without being diverted from day to day crime fighting and other police activities?

Jo Johnson (Conservative, Orpington)

I am quite happy either way, Mr Bone.

Clause 27 enables the Secretary of State to issue directions in relation to the security of spaceflight activities and national security. Clause 24 provides for a licensee to request further specific advice from regulators or the Secretary of State about compliance with security requirements of a particular activity, service, site, facility or other matter. The byelaw powers are modelled on airport byelaws, and they would be locally policed and locally resourced.

Power to give directions: international obligations of the UK

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

Significant concern has been expressed about the future participation of the UK in various space industry international obligations, particularly European obligations. Perhaps the Minister could say a little bit about that—I will go on at length here so he can get some inspiration. Perhaps he could also talk about what assessment has been made of the impacts of leaving the European Union on our participation in, for example, Copernicus, Galileo, Egnos, GovSatCom, Iris, and in Space Situational Awareness and Space Surveillance and Tracking.

For those unfamiliar with those, Copernicus deals with earth observation missions, Galileo and Egnos with navigation—the European equivalent to GPS in some respects—GovSatCom deals with communications, and Iris deals with air traffic management, which we discussed along with aspects of air safety regulations in the last debate. Space Situational Awareness and Space Surveillance and Tracking deal with space debris. Those issues to not come up on a day-to-day basis but, given the cross-border nature of operations, it is crucial that we continue co-operating with our European neighbours, in particular on space debris, given the likely trajectories of launches from the UK and the likely descent paths of items falling from launches and so on. Those things are designed and planned in such a way as to avoid the descent of dangerous materials, but given the increasing number of launches and the increasing number of vehicles being launched into space, and with technology going up through space launch methods, getting that stuff right is obviously important.

We do not want to find ourselves getting into a dispute with our European neighbours after something falls off something we have launched. That is why international agreements on space activities are so crucial, particularly with our European neighbours. Will the Minister say something about the assessment that has been made of our existing international obligations and obligations that we could be in the process of entering into if we stay in the European Union, and their implications?

Jo Johnson (Conservative, Orpington)

The Government recognise the enormous benefits of European collaboration in space, and indeed in research and innovation generally. We published a science and innovation discussion paper as well as an external security discussion paper in September 2017 that set out the Government’s clear wish to discuss options for future arrangements in the EU space programmes, including Galileo, Copernicus, Agnos and others. The decision that concluded phase 1 of the exit negotiations in December provides certainty that UK businesses can continue to bid for and win contracts to build, operate and help develop the EU space programme, which we have played a huge part in over the years.

The Government continue to invest in the success of the UK space sector. We recently invested more than £100 million in new satellite test facilities at Harwell and manufacture and test facilities for rocket engines at Westcott in Buckinghamshire. As the hon. Gentleman knows, that is in addition to the substantial UK investment in the European Space Agency, which is a non-EU body, of around £300 million per year.

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

I thank the Minister for his answer on some of those agencies. Again, I have a particular interest in this as declared in the Register of Members’ Financial Interests. Airbus Defence and Space is in the next door constituency and a number of my constituents work there. I know they and many other members of UK space bodies have concerns about future participation in these agencies.

I welcome what the Minister said on the principles with respect to the agencies, but he did not mention specifically the more technical space debris agencies and other agencies. Rather than detain him now, could he write to the Committee and outline how he sees our international obligations functioning under all of the agencies I mentioned?

Jo Johnson (Conservative, Orpington)

I am happy to provide further details about our common approach to space debris, if that would be helpful, and undertake to do so.

Power to authorise entry etc in emergencies

Karl Turner (Labour, Kingston upon Hull East)

I beg to move amendment 19, in clause 32, page 23, line 31, at end insert—

‘(4A) An enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours, following the 48 hour period under subsection (7) in which the enforcement authorisation remains in force.”

This amendment provides that an urgent enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours, following the 48-hour period under Clause 32(7) of the Bill, during which the enforcement authorisation remains in force.

The amendment provides that an urgent enforcement authorisation must be referred to a justice of the peace for evaluation within 48 hours following the 48-hour period under subsection (7), during which the enforcement authorisation remains in force. The amendment aims to clear up any ambiguity surrounding clauses 31 and 32, which grant warrants authorising entry or direct action and powers to authorise entry in emergencies.

Clause 32(2) permits a named person to do anything necessary for protecting national security, securing compliance with international obligations or protecting health and safety. My colleagues in the other place raised concerns about emergency warrants and such vague wording. The power conferred by clause 32 is very extensive and broad. It contains no thorough judicial oversight. The Minister is well aware that the House of Commons Science and Technology Committee also expressed concerns about this aspect of the Bill, which was obviously mentioned in detail in the other place.

We welcome the fact that the Government reduced the authorisation period from one month to 48 hours, which limits the Secretary of State’s power to a degree. However, we still have concerns that such significant and wide-ranging powers will be exercisable without anticipatory or rapid post hoc judicial involvement.

Currently, there is not enough in the Bill to check whether the powers granted under clause 32 will be appropriately or proportionately used by the authorised person. The Minister in the other place stated that the amendment would “impose unhelpful bureaucracy”. We believe that judicial oversight of emergency warrants is crucial to ensure that such excessive powers are not abused, and we do not believe that we are asking for anything unreasonable. Having checks in place to ensure that this extensive power is not misused will improve the Bill. It is not, as stated by the Minister in the other place, “unhelpful bureaucracy”. I hope the Minister can give assurances that the Government are listening to those concerns and will take them on board.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I rise to support the amendment. Clause 31 refers to the seeking of warrants from justices of the peace, where there is time to do so. Clearly, there will be situations where that is not reasonable and therefore we accept that there is a need to allow emergency entry— 48 hours should be sufficient to allow that warrant to be reviewed by a justice of the peace. We welcome that the Government reduced emergency entry from a month to 48 hours, but it is perfectly reasonable that it should be looked at by a justice of the peace within two days.

Jo Johnson (Conservative, Orpington)

I thank the hon. Member for Kingston upon Hull East and for Central Ayrshire for raising the issue of emergency powers. The clause confers on the Secretary of State the power to grant an enforcement authorisation to carry out any specified action in the most urgent cases, such as a serious risk to national security, compliance with our international obligations or people’s health and safety. The amendment tabled by the hon. Gentleman would seek to require that such an enforcement authorisation be evaluated by a justice of the peace within 48 hours of the 48 hours that the authorisation has been in force.

The Government have listened carefully at all stages of the discussion of the provision and addressed concerns before the Bill was brought to the House. Before the Bill’s introduction, the Science and Technology Committee raised concerns about the length of time for which an enforcement authorisation would remain in place. In response to that helpful intervention, we reduced the time for which an enforcement authorisation can remain in place from one month to 48 hours.

The Opposition in the other place attempted to introduce amendments similar to that tabled by the hon. Gentleman. The amendments are not clear on the purpose that a post hoc evaluation by a justice of the peace would serve—the order would have already been spent and the specified action taken. It is also not clear what is expected to follow from any such evaluation. However, the Government have reflected further on the amendments and the intentions underpinning them. Officials have carried out extensive discussions with colleagues across Whitehall, including in the Ministry of Justice, the chief magistrate’s office and the Home Office, which is responsible for the powers of entry gateway process. None of the discussions resulted in the suggestion that the power should be amended as the amendment proposes. An important reason for that is that there is no known precedent of a justice of the peace conducting an evaluation of an emergency power once it has been exercised.

Let me reassure hon. Members that there are adequate safeguards in the Bill with respect to the exercise of this significant power. Such an authorisation can be granted only to a named person who the Secretary of State is satisfied is suitably qualified to carry out the necessary action. Each time the power is used, the authorisation must be in writing, must specify the action required and will remain in force for only 48 hours from the time it is granted.

In response to concerns previously raised about the exercise of this power without sanction by an independent judicial authority, it is important to note that the decision of the Secretary of State to issue an enforcement authorisation could be challenged by judicial review. I would also point out that this power is more conservative and requires more stringent authorisation than other comparable powers of entry, such as those of nuclear inspectors or health and safety inspectors who are provided with a standing authorisation and may act at their discretion. The power would be used only in the most serious and urgent cases, but it is necessary to ensure that those involved in spaceflight activities and third parties are adequately protected should such situations arise.

Mark Garnier (Conservative, Wyre Forest)

The Minister is being very helpful. One of the interesting points that lies behind some of the concerns is about who advises the Secretary of State that the intervention needs to be made in the first place. Will the Minister give a little more flavour of the process whereby advice is given that leads to an intervention order? That may give some comfort to the Opposition.

Jo Johnson (Conservative, Orpington)

The enforcement authorisations would be a last resort where the regulatory bodies in question felt that it was absolutely imperative to have one in the interests of our national security, or for the pursuit of our international obligations, or the health and safety of individuals in and around the spaceport or elsewhere in the UK. It is very much a power of last resort. Given the nature of the activities being undertaken at spaceports, everyone should be able to see the need for such provisions.

Karl Turner (Labour, Kingston upon Hull East)

I hear what the Minister says, but he seems to be saying that, because there is no precedent for a justice of the peace to review such warrants, it is not necessary. He also said that judicial review is available, but he must appreciate that the threshold to succeed in judicial review is very high and that it is extremely costly to the party bringing the proceeding. Frankly, he has not gone anywhere near far enough, and for that reason I am pressing the amendment to a Division.

Liability of operator for injury or damage etc

Karl Turner (Labour, Kingston upon Hull East)

I beg to move amendment 20, in clause 33, page 24, line 2, leave out subsection (1).

This amendment relates to situations where the operator has no liability in order that those living around the spaceports have adequate powers to protect themselves from noise and nuisance.

It is a pleasure to serve under your chairmanship, Mr Bailey. The amendment relates to situations where the operator has no liability, and seeks to ensure that people living around spaceports have adequate powers to protect themselves from noise nuisance. The Bill originally contained no proper provisions to protect people living close to spaceports or under potential flightpaths from noise. The word “noise” was not even included in the Bill. It now is, but only once. Again, I pay tribute to my colleagues in the other place, particularly my Front-Bench colleagues, who managed to secure that vital concession.

I welcome the Government’s insertion of an assurance that licences can include a condition that an assessment must be done of the noise and emissions that activity will cause, and of the impact on local communities. To say that aircraft noise is rather loud would be an understatement. I can imagine the noise and nuisance if we ended up regularly launching rockets in the UK. Will the Minister therefore give us an assurance that he will look closely at what powers people who live around potential UK spaceports have to protect themselves from such noise nuisance?

Jo Johnson (Conservative, Orpington)

I appreciate that there are concerns about the possibility that spaceflight activities may have an adverse effect on local people. Clause 33 is designed to balance the right to quiet enjoyment of land against the right to carry out a commercial activity, to ensure that there is only minimal encroachment of rights where the operator acts in accordance with the law.

Subsection 1 is replicated from section 76(1) of the Civil Aviation Act 1982, which provides a similar protection for aircraft operators. Amendment 20 would remove the protection for spaceflight operators. However, the Government believe that subsection (1) is appropriate to enable spaceflight operators to carry out activities from the UK. Such a provision is necessary to prevent an operator who acts lawfully from being sued by a third party who considers that his or her right to quiet enjoyment of land is being affected.

Where carrier aircraft are used as part of spaceflight activities, local people will continue to have no such claims against aircraft operators because of the protection in section 76 of the Civil Aviation Act, so the amendment would have little practical effect on spaceports that are adapted aerodromes, such as the potential spaceports at Newquay and Prestwick. However, it should be stressed that such a protection does not apply if an operator does not comply substantially with all the requirements imposed on them.

The protection from claims of nuisance and trespass does not prevent anyone who suffers injury or damage arising from spaceflight activities from bringing a claim against an operator under the strict liability course of action provided for in subsection (2). With that assurance, I ask the hon. Gentleman to consider withdrawing his amendment.

Karl Turner (Labour, Kingston upon Hull East)

I am grateful to the Minister for those assurances. On that basis, I beg to ask leave to withdraw the amendment.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I beg to move amendment 7, in clause 33, page 24, line 31, leave out “may” and insert “must”.

This amendment places a definite cap on the amount of a licensee’s liability.

Philippa Whitford (Scottish National Party, Central Ayrshire)

This group of amendments comes back to the issue of liability for operators and, in particular, the need to set some form of cap on their liabilities so that they can get insurance.

Amendment 7 would change “may” to “must” in subsection 5. As I said earlier, that is not to set the limit, but to raise the principle of one. Later, as we will see when we come to Government amendments to clause 34, the Government themselves change “may” to “must”, implying that there is a cap that they are paying above. Similarly, in clause 33(6) we would also change “may” to “must”.

It needs to be stated that the maximum limit would not go above the €60 million that satellite launchers currently have to indemnify elsewhere. However, what has been described in the Bill and in the explanatory notes is that the launch activities carried out in the UK may be quite different, as the Minister just talked about with regard to noise nuisance. In horizontal take-off, we are talking about an aeroplane carrying a small rocket that will launch cube satellites and micro-satellites such as Unicorn.

As I said earlier, the current limit of €60 million per satellite, and therefore the launch of micro-satellites, would be untenable. Therefore, we need to consider in the consultation making the amount per launch, or per cluster, as opposed simply to per satellite. The Government need to reassure us that they accept the principle of a limited liability and of a liability cap.

There is also the discussion in the paper of describing launches as having a green or amber risk—obviously, those at red risk would not get a licence. Therefore, it could be done by class as opposed to launch by launch. Horizontal take-off vehicles launching cube satellites and micro-satellites might be given a different classification than a vertical take-off vehicle carrying large satellites, as has been the case elsewhere.

This cluster of amendments simply intends to bring back this basic principle that the industry has raised with me, and I am sure with other Members. It has also submitted in writing again that the failure to commit to setting a liability cap whereby industry indemnifies the Government up to a certain level means that companies will not manage to get insurance and they simply will not launch from the UK.

Carol Monaghan (Scottish National Party, Glasgow North West)

To add to the comments of my hon. Friend, this issue could affect where future developments take place in the space industry. Jurisdictions such as Singapore do not require satellites—Glasgow has strength in satellites—to be built locally. However, other jurisdictions require satellites to be built in the local area or in the country.

If cube satellite businesses do not get a mandatory liability cap within this Bill, there is a danger that future development will be affected, and a danger that, when those businesses are looking to expand or develop satellites for future use, they will do so where they can get one. That would be where they can insure and launch satellites. It is absolutely crucial that we get this issue sorted at this stage.

Jo Johnson (Conservative, Orpington)

We discussed an operator’s liability to indemnify the Government against claims from foreign states and their nationals in clause 35. In addition, clause 33 places a strict liability on the operator to compensate third parties in the UK who suffer injury or damage as a result of space flight activity. This is necessary because the Bill allows spaceflight activities to take place from the UK. The intention is to provide easy recourse to compensation for the uninvolved general public in the UK on the same basis as compensation available to foreign nationals.

Clause 33(5) provides a power to make regulations to limit an operator’s liability arising out of spaceflight activities. As we have discussed, the Government intend to issue a call for evidence to consider whether such a cap is appropriate. The amendments seek to require the Government to make regulations that specify a cap on liability in an operator’s licence based on the risk profile of the launch.

The proposal is to set an upper limit on that cap in secondary legislation of €60 million. That figure, as we have discussed, reflects the existing cap on an operator’s liability to indemnify the Government in a licence for a standard mission issued under the Outer Space Act 1986, which was set following considerable experience of satellite licensing. There is no reason to believe that that is also an appropriate level at which to cap a launch vehicle operator’s liability to third parties in the UK, since that activity is likely to be inherently more risky.

Creating inflexibility in legislation is also not helpful. The existing Government indemnity liability cap of €60 million for satellite operators is set by a policy decision and can be varied as appropriate—the figure is not laid down in the Outer Space Act for that reason. The UK Space Agency is considering its approach to risk management of satellite licensing, including the implications for liabilities and insurance requirements. That flexibility is vital if regulation is to keep up with a rapidly changing space sector. The UK Space Agency intends to issue further guidance on that new approach later this year.

As that demonstrates, legislative flexibility is better for both industry and the Government, because it allows the regulator to determine case by case whether to cap liability and the level of any cap. That should encourage operators to design their missions to reduce injury and damage as much as possible, leading to safer launches and reduced costs for them.

Carol Monaghan (Scottish National Party, Glasgow North West)

Will the Minister give way?

Jo Johnson (Conservative, Orpington)

Let me turn to some of the hon. Lady’s specific points before she intervenes—I may anticipate what she is about to ask.

A mandatory cap on liability and mandatory Government compensation embedded in primary legislation could potentially breach state aid rules. That could also cause difficulties in respect of future trading rules applying to the UK, although those are of course as yet unknown. For that reason, it is important to retain the flexibility to deal with the issue by way of secondary legislation. In that way, this and future Governments will have a power to introduce and vary a cap to ensure that it is in line with our legal obligations. It can also be varied in the light of changes in the market or in our trading commitments.

The amendment to clause 33(4)(a) means that the Government—the hon. Member for Central Ayrshire commented on this—must compensate a claimant only in the event of a cap. That amendment does not mean that there is a cap on the face of the Bill.

Philippa Whitford (Scottish National Party, Central Ayrshire)

As I said in my remarks, it is the principle a cap as opposed to the amount. I totally understand the need for consultation, because the type of space industry being discussed is different from space industries elsewhere, where vertical rockets are launched. I am still not clear why the Government are unwilling to commit to a cap in principle when that is what the industry is crying out for.

Jo Johnson (Conservative, Orpington)

I will repeat what I said before. As soon as the Bill receives Royal Assent we will start the process of a call for evidence to determine whether there is a need for a cap and the level at which any such cap might be set.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I beg to move amendment 11, in clause 33, page 24, line 39, at end insert—

“(7) Within 6 months of this Act coming into force the Secretary of State must lay a report before Parliament setting out divisions of responsibility and the level of liability for parties’ spaceflight activities, including—

(a) the Spaceport;

(b) the launch operator; and

(c) the satellite operator.”

This amendment places a requirement on the Secretary of State to publish clear guidelines with regards to responsibility and liability for parties involved in spaceflight activities.

This is a probing amendment to highlight the fact that in the past the space industry was very much state-driven, state-paid-for and state-covered, and now we are moving to a commercial situation where a spaceport, a launch company and a satellite company will be totally different entities. Therefore, I seek clarification in the consultation of exactly where the handover of liability is from one to the other and what responsibilities they have. We would not want to see people arguing at the edges and bystanders, other companies or satellite companies ending up not being compensated for a mission that failed.

Jo Johnson (Conservative, Orpington)

I thank the hon. Lady for raising the important matter of the respective responsibilities and liabilities that spaceports, launch operators and operators of satellites will have. The full scope of a licensee’s responsibilities will be set out in the Bill, in regulations made under the Bill and in the terms of specific licences granted by the regulator. In broad terms, it is envisaged that the Bill will enable the regulator to license four types of activity initially: operation of a spaceport, spaceflight activities involving launch of a spacecraft, operation of a satellite and provision of range control services.

The Bill sets out certain high-level responsibilities and obligations on licensees. Most obligations are on persons carrying out spaceflight activities. I shall refer to them as spaceflight operators for convenience, although that term is not used in the Bill. Those include persons carrying out launch and operating a satellite. It is considered that activities of the spaceflight operator are the most likely to cause injury or damage to third parties.

In the case of spaceflight operators, clause 9 imposes obligations to assess the risk to health and safety posed by the spaceflight activity, to comply with the risk assessment requirements and to take all reasonable steps to reduce risks to the general public so that they are as low as reasonably practicable.

Under clause 16, the spaceflight operator must not allow individuals to take part in a spaceflight activity unless they meet criteria prescribed in regulations and have signed a consent form signifying that they understand and accept the risks of taking part in the spaceflight activity. Under clause 17, the spaceflight operator must not allow unqualified individuals to take part in or otherwise be engaged with the spaceflight activity.

Clause 33 places a strict liability on a spaceflight operator to provide the uninvolved general public with a straightforward remedy for compensation for injury or damage caused by their spaceflight activities. This strict liability would apply to any injury or damage caused in the UK or its territorial waters, and to an aircraft in flight or persons and property on board such aircraft. It applies to damage that is caused by a craft or space object being used for spaceflight activities.

Spaceflight operators also have an obligation under clause 35 to indemnify the Government for any claims brought against the Government for loss or damage caused by their spaceflight activities. Other bodies that may be carrying out functions on behalf of the Government also benefit from the indemnity.

On the responsibilities and liabilities of spaceport operators, clause 10 requires that applicants for a spaceport licence must take all reasonable steps to ensure that risks to public safety of operating the spaceport are as low as reasonably practicable. In addition, the applicant will need to fulfil any criteria and requirements set out in regulations. In the case of providers of range control services, they will be governed by the provisions of clauses 5, 6 and 7 and regulations made under those clauses.

In addition to the Bill, further detailed obligations and responsibilities for all types of licence holders will be prescribed in regulations: for example, safety requirements under clause 18 and security requirements under clause 21. Those regulations will be supplemented by detailed guidance.

The regulations will set out licensing and ongoing requirements and any oversight of operations to ensure that spaceflight activities and spaceports are operated safety. In addition to general responsibilities and liabilities imposed by the Bill, and regulations made under it, the terms of individual licences will specify the particular activities authorised under that licence and the responsibilities that go with them. Individual licences will also be subject to licence conditions tailored to their application, examples of which are set out in schedule 1.

I hope I have reassured the hon. Lady that the Bill, combined with the regulations to be made under it and the terms of individual licences, will provide the necessary clarity on the responsibilities and liabilities that come with being a licence holder under the Bill. The Government intend to consult publicly an all initial draft statutory instruments and statutory guidance. All draft regulations will be accompanied by a full explanation of their intent. Furthermore, reflecting the importance that the Government place on consultation, we have amended the Bill to impose a statutory duty to carry out public consultation before making any regulations under the affirmative resolution procedure. I therefore ask her to withdraw her amendment.

Stephen Doughty (Labour/Co-operative, Cardiff South and Penarth)

As ever, it is a pleasure to serve under your chairmanship, Mr Bailey. I want to underline the point that has been made as it applies well to what we are talking about—the wording that relates to liabilities, given their legal implications. It also applies to clause 68.

The Minister will be aware that UKspace, the space trade association, has raised concerns about the terminology used, which in this circumstance and in other parts of the Bill is not necessarily consistent with that used in the industry. To give an example of the confusion, the industry uses “launch systems” or “launch services” to refer to the launching of satellites, whereas the Bill appears to use “spacecraft” for that. The industry uses the word “spacecraft” to refer to man-made objects that are to be delivered into space—also known as “the payload.”

I do not want to get into a big semantic debate but, particularly when we are talking about where liabilities lie—whether with a launch operator or a satellite operator, or with a spacecraft, a launch system or launch services—I want an assurance from the Minister that there will be clear guidance, understood by the industry, the public and the courts when it comes to interpreting the Bill’s provisions.

Jo Johnson (Conservative, Orpington)

I am happy to repeat the assurance I gave a second ago. We will consult publicly on all the initial draft statutory instruments and the statutory guidance that will give effect to the provisions. I hope that that process will address any remaining areas of uncertainty about terminology, to which the hon. Gentleman refers.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I look forward to seeing the regulations. I beg to ask leave to withdraw the amendment.

Power of Secretary of State to indemnify

Jo Johnson (Conservative, Orpington)

I beg to move amendment 1, in clause 34, page 25, line 15, leave out “may” and insert “must”.

This amendment concerns the case where a person is caused injury or damage by spaceflight activities carried out by a licensee whose liability to that person is capped by regulations under clause 33(5). It converts the Secretary of State’s power to indemnify that person in respect of any shortfall into a duty to do so.

Jo Johnson (Conservative, Orpington)

The Bill is designed to ensure that spaceflight activity is as safe as possible, and risks to third parties are minimised as far as possible. However, no activity is entirely without risk and we have to account for that. If injury or damage arise, it is right that affected third parties should have easy recourse to compensation. That policy does not change if an operator has a capped liability.

As we discussed, clause 33(5) provides a power to make regulations that enable a regulator to specify a cap on an operator’s liability for injury or damage arising out of their spaceflight activities to prescribed persons, or in prescribed circumstances. Those persons and circumstances would be set out in regulations, but we envisage that a cap would be on an operator’s liability to the uninvolved general public who suffer injury or damage as a result of spaceflight activities. As that liability can be capped, clause 34(3), as drafted, provides the Secretary of State with a power to indemnify a claimant in situations where injury or damage caused by spaceflight activities exceeds an apparatus capped liability amount.

Having listened carefully to the debate in the other place, the Government agree that it is right to go further, and the amendments turn the power under clause 34(3) into a duty, and ensure that the Government must pay the remaining compensation above that amount. I am sure that that will be welcomed by hon. Members, as it reflects the desire on both sides of the House to ensure that third parties will rightly never miss out.

Powers to obtain rights over land

Philippa Whitford (Scottish National Party, Central Ayrshire)

I really just want to speak to clause 38(4), and the rights created under that. Again, this refers to the devolved nations, which currently have four of the five sites being discussed, although obviously future sites may well be scattered right across the UK. We are looking, again, for some consultation in the event of rights being taken over land that would be with the devolved Government. I have an amendment on that later, but I wanted to refer to it during debate on the clause itself.

Jo Johnson (Conservative, Orpington)

I can set out some context for the hon. Lady that might clarify the issue. Some concern was expressed in the other place about the provisions, but I assure the Committee that the Government are taking a responsible and balanced approach. We have sought to address those concerns by amending the Bill.

In clause 38 in particular, we made it clear on the face of the Bill that an order will be made only when the Secretary of State considers it appropriate, rather than when it is expedient, as the Bill said originally. Powers are restricted to what is required and proportionate for securing safe space flight operations. There are no powers in the Bill for a spaceport licence holder, launch operator or range control service provider to purchase land compulsorily.

The clause allows for the creation of orders granting rights over land. Such orders may be necessary to ensure that utilities and other supporting infrastructure can be installed and maintained—for radar or surveillance, for example. Space flight from the UK will be conducted on a commercial basis, so we expect operators to negotiate access in the vast majority of cases. Such an order, therefore, would be created only as a last resort, where a negotiation with the landowner had failed to produce a mutually agreeable outcome. Schedule 6 sets out further provision for such circumstances, including how notice for such orders should be given and how proposed orders can be objected to.

Challenges to and commencement of orders

Philippa Whitford (Scottish National Party, Central Ayrshire)

I beg to move amendment 12, in clause 42, page 31, line 12, at end insert—

‘(4) An order under section 38 or 40 cannot be made in relation to a spaceport or prospective spaceport without the consent of—

(a) the Scottish Ministers, in relation to the use of land in Scotland;

(b) the Welsh Ministers, in relation to the use of land in Wales;

(c) the Northern Ireland devolved authority, in relation to the use of land in Northern Ireland.

(5) In this section, a “Northern Ireland devolved authority” means the First Minister and deputy First Minister acting jointly, a Northern Ireland Minister or a Northern Ireland department.”

This amendment would ensure that consent of devolved administrations is sought prior to the Secretary of State exercising their powers under Clauses 38 and 40.

This is the formal amendment on the point that I made in relation to clause 38 about a requirement to consult on land enforcement orders with the devolved powers in Northern Ireland, Wales and Scotland.

Jo Johnson (Conservative, Orpington)

I thank the hon. Lady for tabling this amendment, allowing me again to address the subject of land powers, in the specific context of the devolved Administrations. I reassure her and other Committee members that there has been considerable engagement with the devolved Administrations as the provisions have been developed.

Officials have been engaging with the devolved Administrations since early 2014, when they met the Welsh and Scottish Governments to discuss ambitions to create a UK spaceport. Representatives from the devolved Administrations have since been invited to launch UK events across the country, bringing together many of those interested in becoming involved in the operations or supply chains of spaceports or space flight activities.

Alongside this general engagement, we have worked with Scotland, Wales and Northern Ireland at official level to ensure that the devolved Administrations are content with all provisions in the Bill. Specifically, on land powers, we have agreed an approach that the devolved Administrations have confirmed they are content with.

Before the introduction of the Bill, we discussed the land provisions with the Scottish Government, the Lands Tribunals for Scotland and Northern Ireland, and Registers of Scotland. We have since consulted the Scottish Civil Justice Council on the practical implications of orders under clauses 38 and 40. These organisations have confirmed that they are content with the implications for their processes and have not requested amendment to the current drafting of the clauses. Orders made on Welsh land would be subject to the same registration process as those in England, and any tribunals that were to be involved would be the same ones as for England.

The previous Minister of State for Transport spoke with the Scottish Government Minister for Transport to update him on the progress of the Bill and the proposed amendments ahead of Report in the other place. In addition, my officials continue to engage with the devolved Administrations of Wales, Scotland and Northern Ireland as the Bill makes its progress through the parliamentary process.

Going back to the clauses to which the hon. Lady’s amendment refers, I should say that an opportunity for those in the devolved Administrations to raise any concerns about a specific order is provided in schedule 6. The schedule requires that notice of a proposal to make an order under clause 38 or a land order under clause 40 must be published in local newspapers and served on the local authority. However, we expect that spaceport or launch operators, or range control service providers, will work closely with local landowners and local authorities as they develop their plans for sites and launches.

We also expect that, rather than orders under clauses 38 and 40 being necessary, operators will negotiate with landowners for access to land or for restrictions on the use of land or water near a spaceport site. Representatives of the companies hoping to develop the first spaceports have confirmed that they have indeed been working closely with local landowners and local authorities as they progress their plans.

I should also emphasise that orders that may be made under clauses 38 and 40 are compatible with the existing body of planning legislation and will not restrict the ability of local planning authorities to take planning decisions. Should Ministers in the devolved Administrations wish to call in any planning decision relating to the development of a spaceport site, their right to do so will not be affected by any provision in this Bill.

I hope that the hon. Lady is reassured that the powers in clauses 38 and 40 will not impact on the ability of local planning authorities or Ministers in Scotland, Wales or Northern Ireland to take planning decisions as they would usually. I hope she is reassured that the devolved Administrations, as well as any persons served with a notice, will be able to object to the making of orders through the process set out in schedule 6. I therefore ask the hon. Lady to consider withdrawing amendment 12.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I thank the Minister for that detailed explanation. I beg to ask leave to withdraw the amendment.

Regulations: general

Karl Turner (Labour, Kingston upon Hull East)

I beg to move amendment 21, in clause 67, page 43, line 40, leave out subsection (6) and insert—

‘(6) A statutory instrument containing (whether alone or with other provision)—

(a) regulations under section 4(2),

(b) regulations under section 5(2),

(c) regulations under section 7(4),

(d) regulations under section 7(6),

(e) regulations under section 9,

(f) regulations under section 12(7),

(g) regulations under section 18,

(h) regulations under section 22,

(i) regulations under section 34(5),

(j) regulations under section 35(3)(a),

(k) regulations under section 58,

(l) regulations under section 64, or

(m) regulations that create offences,

is subject to the super-affirmative resolution procedure.

(6A) For the purposes of this Act the “super-affirmative procedure” is as follows.

(6B) The Minister must lay before Parliament—

(a) a draft resolution, and

(b) an explanatory document.

(6C) The explanatory document must—

(a) introduce and give reasons for the resolution,

(b) explain under which power or powers in this Act the provision contained in the resolution is made, and

(c) give a detailed explanation of provisions included in the resolution.

(6D) The Minister must have regard to—

(a) any representations,

(b) any resolution of either House of Parliament, and

(c) any recommendations of a committee of either House of Parliament charged with reporting on the draft resolution,

made during the 40-day period with regard to the draft resolution.

(6E) If, after the expiry of the 40-day period, the Minister wishes to make a resolution in the terms of the draft, he must lay before Parliament a statement—

(a) stating whether any representations were made under subsection (6D)(a), and

(b) if any representations were so made, giving details of them.

(6F) The Minister may after the laying of such a statement make a resolution in the terms of the draft if it is approved by a resolution of each House of Parliament.

(6G) However, a committee of either House charged with reporting on the draft resolution may, at any time after the laying of a statement under subsection (6E) and before the draft resolution is approved by that House under subsection (6F), recommend under this subsection that no further proceedings be taken in relation to the draft resolution.

(6H) Where a recommendation is made by a committee of either House under subsection (6G) in relation to a draft resolution, no proceedings may be taken in relation to the draft resolution in that House under subsection (6F) unless the recommendation is, in the same Session, rejected by resolution of that House.

(6I) If, after the expiry of the 40-day period, the Minister wishes to make a resolution consisting of a version of the draft resolution with material changes, he must lay before Parliament—

(a) a revised draft resolution, and

(b) a statement giving details of—

(i) any representations made under subsection (6D)(a), and

(ii) the revisions proposed.

(6J) The Minister may after laying a revised draft resolution and statement under subsection (6I) make a resolution in the terms of the revised draft if it is approved by a resolution of each House of Parliament.

(6K) However, a committee of either House charged with reporting on the revised draft resolution may, at any time after the revised draft resolution is laid under subsection (6I) and before it is approved by that House under subsection (6J), recommend under this subsection that no further proceedings be taken in relation to the revised draft resolution.

(6L) Where a recommendation is made by a committee of either House under subsection (6K) in relation to a revised draft resolution, no proceedings may be taken in relation to the revised draft resolution in that House under subsection (6J) unless the recommendation is, in the same Session, rejected by resolution of that House.

(6M) In this section the “40-day period” means the period of 40 days beginning with the day on which the draft resolution was laid before Parliament under subsection (6B).”

The amendment provides for the use of the super-affirmative procedure rather than, when applicable, the affirmative procedure for considering regulations and secondary legislation. The super-affirmative procedure provides that a Minister must lay a draft resolution and explanatory document before both Houses and take account of any representations.

The amendment provides for the use of the super-affirmative procedure rather than, when applicable, the affirmative procedure for considering regulations and secondary legislation. As we know, the super-affirmative procedure provides that a Minister must lay a draft order and an explanatory document before both Houses and take account of any representations.

I do not intend to speak for long to the amendment, because it was previously debated at some length in the other place. It is about parliamentary scrutiny. It aims to change the Bill so that a significant statutory instrument arising from the delegated powers consistently go through a super-affirmative procedure, which will mean that it is debated in both Houses, rather than the negative procedure, when it would automatically become law without proper parliamentary debate or scrutiny.

I will set out the case why such statutory instruments should be under the affirmative procedure each and every time they are brought forward. The Opposition have expressed great concern that the Government are attempting to evade proper parliamentary scrutiny on clause 67. Let me be clear that we support the Bill, but it is a skeleton Bill. It is already difficult to scrutinise properly in its current format. My colleagues in the other place raised the point that crucial regulations will not even be consulted on until next year, and will not come before Parliament for nearly two years at the very earliest.

I accept that we must consider rapid technological change and advances in the space industry—those points were made by the Minister in the other place—but how can we make sure that we get the proper legislative framework in place for the space industry, which is constantly developing? The Government and future Governments in years to come still need to be held to account, and Parliament needs to scrutinise legislation properly. I am sure that everyone in this Committee Room wants the United Kingdom’s space industry to grow. However, that should not come at the expense of parliamentary scrutiny. Will the Minister assure us that he will consider the points raised and set out the Government’s position for future statutory instruments under the Bill?

Philippa Whitford (Scottish National Party, Central Ayrshire)

The amendment is, as the hon. Gentleman referred to, about the potential delay for the industry from considering regulations. I seek assurances from the Minister that the timescale of two years that seems to be being discussed is erroneous, because otherwise we will not be launching anything in 2020. That timescale seemed to be referred to in the House of Lords—the hon. Gentleman also referred to it—but it would kick the industry into the long grass again. This process started in 2014 and we are in 2018. There had been an aspiration to be ready to launch from the UK in 2020, if the vehicles are ready. There is an urgency and I seek reassurance that we are getting on with it.

Jo Johnson (Conservative, Orpington)

Hon. Members may be aware—my noble Friend mentioned this—that a similar amendment was tabled in the other place. The Government reflected on the concerns of noble Lords and amended the Bill to impose a statutory duty to carry out a public consultation before making any regulations under the affirmative resolution procedure. The Bill now includes a requirement for a report by the Secretary of State on the consultation to be laid before Parliament. As my noble Friend the Minister made clear in the other place, a public consultation would invite a response from all interested parties. Subsequent regulations that materially change the substance of the original regulations would also be subject to public consultation.

The amendment tabled by the hon. Member for Kingston upon Hull East goes much further than that by imposing the super-affirmative procedure on affirmative regulations. As I have said, the Government have listened and taken on board the concerns raised in the other place, and the Bill now ensures that there is the enhanced scrutiny of affirmative regulations. The amendment would lead to a duplication of effort.

I assure hon. Members that it is the Government’s intention to continue to build on the open collaboration that has taken place throughout the development of this legislation—from publishing the Bill in draft, to the publication of policy scoping notes, to committing to formally consult on the draft regulations prior to laying them. As the hon. Member for Middlesbrough (Andy McDonald) noted on Second Reading, the Government have taken a very open attitude in developing this legislation and in engaging with hon. Members and noble Lords in the other place to ensure we have a successful Bill. We want that to continue as we go on to the next stages of secondary legislation, consultation on guidance and so forth.

The question from the hon. Member for Central Ayrshire on the timing of the laying of statutory instruments is a novel and complex challenge. I know she appreciates that that requires detailed policy development, building in parallel internal expertise to enable us to deliver an effective regulatory regime. There is a wealth of best practice in the industry and we need to work with stakeholders to identify how we can best design the regulatory framework and the subsequent legislation on the basis of being informed adequately by those discussions. I can confirm that it is the Government’s intention to formally consult as soon as the draft statutory instruments are available.

I hope that that has assured hon. Members that the approach will continue as we develop secondary legislation, and that the hon. Gentleman will withdraw the amendment.

Karl Turner (Labour, Kingston upon Hull East)

I beg to ask leave to withdraw the amendment.

Grant of licences: assessments of environmental effects

Potential impact of leaving the European Union on the United Kingdom’s space industry

Philippa Whitford (Scottish National Party, Central Ayrshire)

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

In light of the process of leaving the European Union, the clause seeks, as was referred to by hon. Members earlier, to consider the impact. We have looked at the impact assessments, particularly at the aerospace assessment, when we had the opportunity to view what are called the Brexit papers, and what we saw was a description of the aerospace industry and comments from the industry, but not the impact.

Although the European Space Agency is separate to the EU, it receives significant funding from it. With the new clause, therefore, we seek assurances that the UK will still be able to be part of the agency, to be active in it and, as the Minister said earlier, to be able to bid for contracts under Copernicus or Galileo for satellite work, in which the UK is a leading player. The clause simply calls for an assessment of the impact on the developing space industry of leaving the EU, to ensure that, as negotiations go forward, the Government set themselves to achieve the best deal for the space industry.

Jo Johnson (Conservative, Orpington)

As the hon. Lady knows, the UK has played a major part in developing the main EU space programmes, Galileo and Copernicus, which have supported the rapid growth of the UK space sector and contributed directly to our prosperity. The UK is recognised for its specialist capability in the area of earth observation, and has been especially involved in the development of the Galileo security modules and encryption, which are integral to a secure and resilient earth observation system. The Government recognise that, which is why the future partnership papers I referred to earlier, which were published in September 2017, set out that, given the unique nature of the space programmes’ applications to security as well as to science and innovation, and the extent of the UK’s involvement, the EU and the UK should discuss all options for future co-operation, including new arrangements subsequent to our departure from the European Union.

We are working to ensure that we get the best deal with the EU to help support the sector’s continued strong growth. The agreement that successfully concluded phase 1 of the exit negotiations in December 2017 makes clear that, as part of the financial settlement, the UK will remain part of the space programmes until at least the end of this EU budget period in 2020. That provides significant certainty to industry to enable it to continue to bid for and win contracts from the space programmes.

As the hon. Lady said, the European Space Agency is a non-EU organisation. We are a full member of it and have every intention of continuing to be so long after we leave the European Union, and we are contributing record sums to its budget.

Philippa Whitford (Scottish National Party, Central Ayrshire)

Does the Minister therefore foresee the UK continuing to pay funds? If so, will they be paid directly to the ESA or via the EU? Obviously, the EU is a significant funder of the ESA.

Jo Johnson (Conservative, Orpington)

The European Space Agency delivers a number of programmes for the European Union, but we continue to be a member of the ESA in our own right and, as I said, we are contributing record amounts—more than €1.4 billion in the current budget period.

Neil Coyle (Labour, Bermondsey and Old Southwark)

For absolute clarity, is the Minister suggesting that payments via the EU could still be possible, in contrast with the Foreign Secretary’s position on that matter?

Jo Johnson (Conservative, Orpington)

I am not going to parse comments by others that I have not seen, but I can confirm that we remain a full member of the European Space Agency in our own right, we are contributing record amounts to its budget, and we have every expectation of continuing to be a full member of that organisation long into the future.

On the new clause’s requirement to undertake an assessment, the Secretary of State for Exiting the European Union provided the relevant Committees with reports for many sectors, including one for the UK space sector, on 27 November. As the hon. Member for Central Ayrshire said, that report contained a description of the sector, the current EU regulatory regime, existing frameworks for the facilitation of trade between countries in the sector, and sector views.

Vicky Ford (Conservative, Chelmsford)

This is my first Bill Committee, so bear with me, Mr Bailey. The new clause suggests that the Secretary of State should have to make an annual assessment of the impact of our leaving the EU on research and development, including Horizon 2020, every year well after 2020, but Horizon 2020 clearly finishes in 2020. Does the Minister agree that it seems illogical to assess something that has already finished?

Jo Johnson (Conservative, Orpington)

I obviously note the point about the duration of Horizon 2020, which does indeed end at the end of 2020, but we have committed as a Government to exploring all options for future participation in the next set of framework programmes, which will start after 2020. We have every hope that those discussions will conclude successfully, because those research programmes deliver huge value to our science and research communities and to our universities all over the country, including in Scotland.

On that basis, I ask the hon. Member for Central Ayrshire to consider withdrawing her new clause.

Philippa Whitford (Scottish National Party, Central Ayrshire)

I beg to ask leave to withdraw the motion.

Written evidence reported to the House