Select Committee on European Legislation Eighteenth Report


THE EUROPEAN UNION AND SPACE

12.   We consider that the following raises questions of political importance, but make no recommendation for its further consideration:--

Department of Trade and Industry

(17860)
5225/97
COM(96)617
Commission Communication and draft Resolution: The European Union and Space: Fostering applications, markets and industrial competitiveness.
Legal base: --

  Background

    12.1  This Communication is an update of a document on which we reported in November 1992[26], and which assessed the extent to which the Community could contribute to the space effort whilst aiming at specific objectives. We regarded it as raising matters of political importance, though we did not recommend debate. In the document now before us the Commission reviews European space activity and proposes further actions to assist Europe's space effort.

  The Communication

    12.2  The scope of the document is described in an Explanatory Memorandum, dated 18 February submitted by the Parliamentary Under-Secretary for Science and Technology, Department of Trade and Industry (Mr Ian Taylor). The Minister says that the Communication

      "recognises that while the level of activity in the European space industry has been affected by reduced government funding, the commercial sector has continued to grow. Encouraging prospects are identified, particularly in the fields of satellite telecommunications, satellite navigation and positioning, and the various applications arising from Earth observation from space. The Commission recognises Europe's strengths in these growing markets, including a significant technological and industrial capacity, but also recognises current weaknesses relating to the size of the European market and the structure of industry in Europe. It reaffirms the separate role of the European Space Agency (ESA) in fostering European co-operation and strategic planning in the space field, but claims an existing role for the Commission in creating an open and competitive environment as the basis for a strong European space industry. It asserts the need for an active Commission role in improving co-ordination or European research, technology and development (RTD) and industrial policies, assisting the European and global reach of space applications and in international co-ordination issues pertaining to those applications."

    12.3  The Communication proposes a number of actions for the European Union's increased contribution to space programmes. They include:

      --  various measures to liberalise services, co-ordinate and harmonise regulatory requirements and review research to facilitate the use of space communications;

      --  preparing an Action Plan to define Europe's contribution to a global navigation system and possibly a secondary system to provide Europe with an independent satellite navigation system;

      --  carrying out research and pilot studies to develop the use of space for earth observation for a variety of purposes;

      --  encouraging the maintenance of Europe's ability to provide space launch services as well as pursuing the possibility of establishing basic rules for the conduct of open and fair competition among the most important space launch providers, worldwide.

    12.4  A preliminary draft Resolution is attached to the Communication. It is not discussed in the Minister's EM, and so we asked for further information. We now understand that it is not being pursued at present, and is likely to undergo substantial revision.

  The Government's view

    12.5  In his Memorandum, the Minister tells us the implications of the Commission's proposals for subsidiarity:

      "The Communication recognises that the Commission's role must be seen within the subsidiarity principle. It further states that all of the activities proposed should be co-ordinated with those of the Member States and the European Space Agency in order to obtain greater synergy between the efforts at the European level. In one particular area, that of defining the regulatory environment for satellite navigation, the Government believes that this is a matter for Member States and will pursue this with the Commission."

    12.6  On the general policy implication of the Communication, the Minister says:

      "The Government agrees with the general thrust of the Communication in aiming to set the framework for a competitive European space industry, recognising the need to work with the European Space Agency and consulting industry and others in the European space sector. The Government also supports the policies aimed at liberalising European and international markets, developing telecommunications technologies with good prospects for commercialisation and seeking to enable the development of a market in Earth observation data. On launch services, the Government welcomes efforts to encourage a competitive market and is willing to explore with the Commission and Member States ways to take this forward without stifling competition or going beyond the bounds of Community competence."

  Conclusion

    12.7  The Commission notes in its introduction that since its last Communication, in 1992, there have been technical developments requiring an update of the Commission's position. On the other hand, Government funding in this area has tended to reduce. We think that because the use of space technology for a wide and growing range of services continues, and because it is important that European industry should have a significant involvement in these developments, this Communication raises matters of political importance.

    12.8  We note that the Government welcomes efforts to encourage a competitive market. We shall, of course, wish to consider the revised draft Resolution with an Explanatory Memorandum in due course. Meanwhile, we are clearing this document.


26.The European Union and Space: challenges, opportunities and new actions. (14046) COM(92)360; see HC 79-viii (1992-93), paragraph 6 (4 November 1992). Back

 
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