9 Global navigation satellite system
| (27678)
11282/06
COM(06) 351
| Draft Regulation amending the Statutes of the Galileo Joint Undertaking annexed to Regulation (EC) No 876/2002
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| Legal base | Article 171 EC; consultation; QMV
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| Documents originated | 29 June 2006
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| Deposited in Parliament | 10 July 2006
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| Department | Transport |
| Basis of consideration | EM of 25 July 2006
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| Previous Committee Report | None
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| To be discussed in Council | Probably December 2006
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared, further information requested
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Background
9.1 The Community has a two-phase policy for developing a global
navigation satellite system (GNSS). The first phase, GNSS 1, is
the European Geostationary Navigation Overlay System (EGNOS) programme.
The second phase, GNSS 2, is the programme, named Galileo, to
establish a new satellite navigation constellation with appropriate
ground infrastructure. It is based on the presumption that Europe
ought not to rely indefinitely on the GPS (the US Global Positioning
System) and GLONASS (the Russian Global Navigation Satellite System)
systems, augmented by EGNOS. Galileo is being carried out in conjunction
with the European Space Agency (ESA). There are a number of agreements
in place or being negotiated with third countries about co-operation
in the Galileo project.
9.2 It is intended that Galileo will allow provision
of five services. These are known as the:
- Open Service (OS), free of
charge at the point of use;
- Commercial Service (CS), offering added value
for more demanding uses;
- Safety of Life Service (SoL), for safety-critical
applications that require high integrity;
- Search and Rescue Service (SAR), to complement
the current COSPAS-SARSAT system (International Satellite Search
and Rescue System founded by Canada, France, the former USSR and
the USA in 1988 and with 33 countries now participating); and
- Public Regulated Service (PRS), a high-performance,
encrypted service for authorised civil government applications.
9.3 The Galileo programme has three phases:
- the development and validation
phase — development of the satellites and the system's ground
components, as well as validation in orbit. This phase was due
to run from 2003 to 2005, but will now continue until 2009. The
project is currently in the validation part of this phase;
- the deployment phase — building and launching
the satellites and the establishment of the entire ground-based
component. This phase was initially intended to cover 2006 and
2007 but will now be taken forward between 2009 and 2010; and
- the commercial operating phase — commencement
of the full commercial operation of the system. This phase was
due to begin in 2008 and will now begin from the end of 2010.
9.4 It is intended that a public private partnership
(PPP) will be established for the Galileo programme. The Galileo
Joint Undertaking (GJU) has been responsible for managing the
programme's development phase for the Community and the ESA, including
the procedure to select the future private-sector concessionaire
to run the PPP. It was created for four years, which it was assumed
would be sufficient time to see it through until the end of the
development phase of the project. In 2004 a GNSS Supervisory Authority
(GSA) was established to manage the public interests relating
to European satellite radio-navigation programmes — currently
EGNOS and Galileo. It is be the formal owner of these two systems
and to act as the regulatory authority for the concessionaire
during deployment and operation. The GSA is expected to become
fully operational in the course of 2006.
9.5 From early in 1999 we and previous Committees
have reported to the House on many aspects of the Galileo project,
most recently in July 2006.[20]
(The matter has also been debated three times in European Standing
Committee A, the last occasion being 2 December 2004.)[21]
When we last considered Galileo we had before us a document about
where matters stood on the project, which amongst other things,
proposed that, even though the development phase was not yet complete,
the life of the GJU should only be extended to the end of 2006
and that the GSA should take over its functions. This was intended
to minimise duplication of structures and costs. We also had before
us a draft Regulation to make the necessary amendments to the
legislation governing the GSA — we still have this proposal
under scrutiny pending a report from the Government of progress
in addressing issues relating to intellectual property rights.
The document
9.6 This draft Regulation would complement the draft
Regulation on the GSA by extending the life of the GJU until the
end of 2006 and providing for its winding up then. Other detailed
amendments to the Statutes of the GJU would:
- enable the GJU to finance additional
costs, which have increased from €1.1 billion (about £764
million) to €1.5 billion (about £1.042 billion), arising
from the development phase; and
- replace, in line with a European Court of Auditors
recommendation, an erroneous use of the word "capital"
in the original Regulation with "contribution" or "funds".
The Government's view
9.7 The Minister of State, Department for Transport
(Dr Stephen Ladyman) reminds us that the Government, along with
most other Member States, supports a speedy and smooth transition
from the GJU to the GSA before the end of the development phase
of the project. He adds that the Government agrees that the best
way to avoid unnecessary additional costs is to close the GJU
by the end of 2006.
Conclusion
9.8 As we said previously, we endorse the intention
to minimise the duplication of structures and costs of the GJU
and the GSA. But before considering this draft Regulation further
we should like an explanation in relation to the increased costs
it is suggested that the GJU should be authorised to finance —
what is the reason for this budget overrun and does it presage
a demand for a greater public expenditure input to the project?
Meanwhile we do not clear this document.
20 (27592) 10427/06 (27593) 10431/06: See HC 34-xxxvi
(2005-06), para 9 (19 July 2006). Back
21
See Stg Co Deb, European Standing Committee A, 2 December
2004, cols 3-30. Back
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