‘One giant leap’ for industry as Bill to cap space companies’ liability advances
Labour MP John Grady said current legislation is acting as a ‘deterrent’ to investors, and a legal cap would protect companies from costs.
A Bill to approve a cap on liabilities for companies launching spacecraft has been described as “one small step for Parliament, one giant leap for the space industry”, as it moved closer to becoming law.
Labour MP John Grady said current legislation is acting as a “deterrent” to investors, and a legal cap would protect space companies from costs if an accident or damage to property occurred.
The MP for Glasgow East’s Space Industry (Indemnities) Bill, which seeks to put a liability cap on a “firm footing” by amending 2018 legislation, passed its second reading on Friday.
The liability cap will be specified in licences, which are granted to space operators by the Civil Aviation Authority (CAA).
Mr Grady told MPs that his Bill “has one big objective – to ensure further investment in the UK space industry”.
He continued: “I could say that this is one small step for Parliament, a big step for the space industry, if I was any good at puns and humours.
“But as I suspect some of the honourable members from Scotland here could tell you, I am no good at puns and I am humourless.”
On the benefits of the legislation, Mr Grady earlier said: “Satellites and related technology are critical to modern life, and they will become even more so.
“There is a very significant economic opportunity for the United Kingdom.
“European demand for satellites up to 2033 is forecast to be worth 50 billion dollars – even 2% of this would bring around one billion dollars in revenues for the UK economy alone.
“This provides a very serious economic opportunity to the United Kingdom and we must seize this with both hands, and this is because we must get growth back into the British economy and that is what our Government is determined to do.”
Mr Grady also raised the importance of space capability for defence, saying: “We must invest in space and we must have our own capability here in the United Kingdom, that is absolutely critical.
“Over my lifetime, the domain of warfare sadly has expanded from ground and sea and air to space and also online, and it is absolutely critical that we invest in our capabilities here.”
Labour MP for Cumbernauld and Kirkintilloch Katrina Murray also highlighted the defence capabilities of increased space capacity.
She said: “This motion in itself is exceptionally technical in its nature, and the need for it is immense.
“The Prime Minister rightly reminded us this week of the need for Europe to be united and to not rely on the United States when conflict comes to our continent.
“Whilst this is true in Ukraine, it’s also immediately true in space.
“There may be competition within the sector in Europe.
“We’ve even heard about the competition within the sector in Scotland, but this is healthy.
“However, we need to break up the dominance of the US private sector in this space.
“To develop the sector at warp speed is vital.”
Transport minister Simon Lightwood said the Government “fully supports this Bill”, as he set out the UK ambition to be “internationally competitive” in the spaceflight and satellite sector.
He said: “If Government did not limit the space flight operators’ liability, space flight companies and investors would instead look to more favourable regulatory regimes in other countries where governments share the risks involved by limiting an operator’s liability or by offering state guarantees, such as in the United States or in France.”
MPs agreed to give the Bill a second reading without a division.
