Department for Transport explains that there are plans to create a potential contingent liability each time launch activity is conducted under the Space Industry Act 2018

Department for Transport explains that there are plans to create a potential contingent liability each time launch activity is conducted under the Space Industry Act 2018

The National Space Strategy, which we published in September, established the government’s audacious spaceflight goals.

The UK excels in offering satellite-based communications and high-end navigation services thanks to a thriving satellite manufacturing sector.

In the UK, the space industry directly employs 45,000 people, and satellites contribute to at least £360 billion of the country’s GDP.

However, in order to launch UK-built and -operated satellites into orbit, including those vital to our defence and security, the UK is currently dependent on other launch nations.

To enable the licencing of spaceflight activities from UK spaceports, we have established the regulatory framework and appointed the Civil Aviation Authority as the spaceflight regulator through the Space Industry Act 2018 (the 2018 Act) and the Space Industry Regulations 2021 (the 2021 Regulations).

Everyone in this country benefits from the fundamental services that space-based technologies offer, including better weather forecasts, faster and more efficient travel, support for defence and security, smart phones, and faster and more efficient travel.

Possessing a launch capability will allow the UK to have more control and options for launching our satellites into space, which will benefit everyone.

It will also create and support many more high-skilled jobs across the nation.

As a result, I’ve filed a departmental minute today (19 July 2022) outlining a new contingent liability that the Department of Transportation intends to assume with regard to any future launch operator licences issued under the 2018 act.

The UK’s participation in the 1972 United Nations Convention on International Liability for Damage Caused by Space Objects, the 2018 act’s authority and duty to compensate operators and those who suffer harm or damage as a result of spaceflight activities in the United Kingdom, and the limitations on a launch operator’s liability imposed by or under the 2018 act and the 2021 regulations all contribute to the liability.

The departmental minute provides a detailed explanation of the events leading to the contingent liability.

Every time a launch activity is carried out in accordance with the 2018 act, a potential contingent liability could be produced.

Although the liability cannot be quantified, we believe that the likelihood of any liability exceeding an operator’s liability limit is extremely low.

The Department of Transport will report on the specific indemnities entered into under this notification in our annual report and accounts that are presented to Parliament in order to keep Parliament informed.

The contingent liability has received preliminary approval from HM Treasury.

Final approval to proceed with incurring the liability will be withheld pending an examination of the objection if, within the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before Parliament, a member signifies an objection by submitting a parliamentary question or otherwise bringing the matter up in Parliament.

I’ve taken a step today that will help us launch the first small satellite from Europe this year.

It reaffirms this administration’s fearless dedication to making the UK one of the world’s most alluring and inventive space economies and the top provider of commercial small satellite launch services in Europe.