Memorandum 2
Submission from the British National Space
Centre (BNSC)
OVERVIEW
1.1 Space systems are now an integral aspect
of many areas of daily life, such as news broadcasts, communications,
financial transactions, navigation, disaster monitoring, environmental
monitoring, climate understanding and science exploration. Many
of these activities are now commercial ones, and the space industry
can no longer be defined simply in terms of the hardware of launchers
and spacecraft. There are significant commercial opportunities
in the downstream activities of the space industry and this needs
to be recognised in the future activities of the UK space programme.
The UK, a pioneering space nation, has a world-class reputation
and a highly selective approach in choosing to invest in activities
that have a clear contribution to economic, scientific and societal
needs. But international competition is very strong and UK at
both Government and industry level, need to be proactive if we
are to remain a significant player in a sector which is growing
in size and importance.
1.2 The current UK Civil Space Strategy[10]
has three high level objectives, pursuing economic, scientific
and technological priorities:
— enhancing the UK's standing in astronomy,
planetary and environmental sciences;
— stimulating increased productivity
by promoting the use of space in government, science and commerce;
and
— developing innovative space systems
to deliver sustainable improvement in quality of life.
1.3 In the past the UK has reaped many benefits
from its investments in space and space systems have made significant
contributions in economic, scientific and environmental terms:
— in economic terms space based
applications play a vital role in a number of key sectors, telecommunications,
broadcasting, IT, broadband and navigation, and the UK has a significant
share of the global commercial market, with Astrium, Paradigm,
Inmarsat and Surrey Satellite Technology Ltd being leading companies
in their fields;
— in science, space exploration
has enabled us to build knowledge of the solar system and better
to understand our own planet. UK scientists and engineers are
at the leading edge of developing scientific knowledge of space
and Earth;
— in terms of societal need, space
is important in climate change and environment understanding,
weather forecasting, and, through Galileo, navigation. Space systems
are also important in the military world, and whilst this is not
part of the civil programme there is much common underlying technology.
1.4 Many countries, including developing
countries, are investing heavily in space activities as a way
of "fast tracking" development. This role of space in
employing highly qualified staff and driving high technology gives
space a strategic position and as a result there remains a significant
role for public funding in the development of the sector.
1.5 The British National Space Centre (BNSC)
coordinates activities across a partnership of Government Departments
and Research Councils and also acts as the UK point of contact
internationally, including with the European Space Agency (ESA)
and the European Commission. This memorandum sets out an overview
of UK space activities and the membership and structure of BNSC.
1.6 Detailed statements on the interests
and activities of BNSC partners in the use of space are set out
in the separate memoranda of those bodies.
SPACE BENEFITING
SOCIETY AT
LARGE
Economic Benefits
2.1 The global space industry is growing
fast and has revenues of $114 billion. This is forecast to rise
to $150 billion in 2010.[11]
To understand the industry it is necessary to divide it into two
parts, "upstream" activities, which consist of the manufacture
and development of space assets such as satellites, and "downstream"
activities, which consist mainly of satellite service providers
for broadcast, communication and navigation purposes. In the UK
space related turnover in 2004-05 was approximately £4.8
billion, made up of upstream activities of £700 million and
downstream activities of £4.1 billion. The average growth
in space related turnover in UK industry over the 5 year period
1999-2000 to 2004-05 was 10.2% overall, 8.6% in upstream activities
and 10.5% in downstream activities.[12]
Space employs some 16,200 people in the UK of whom 57% are graduates,[13]
and with an average productivity of over £100k per employee,
well above the national average of £36k per employee.[14]
Overall the UK space sector contributes around £6.8 billion
and 70,000 jobs to the UK, taking direct, indirect, induced and
spillover benefits. These figures do not include the added spillover
benefits, which potentially run into billions, for example due
to weather forecasting, broadcasting and communications.[15]
2.2 Forecast average annual growth in world-wide
space revenues up to 2010 are overall 7.6%, (upstream 3.7% and
downstream 11.2%). An estimate of the UK share of the world-wide
space market by value (2005), based on these sources, is 7.3%
overall, (upstream 2.3% and downstream 11.8%).[16]
The growing economic importance of space and UK's role in it are
examined further in the separate DTI response.
2.3 The UK space industry is one of the
most R&D intensive sectors in the UK and in 2004-05 invested
12% of its GDP contribution in R&D, making the space industry
six times more R&D intensive than the UK economy as a whole.[17]
Thus both in terms of its direct benefits and in its significant
potential to enhance the "health" of UK's wider economy,
space is a key part of UK's "portfolio" of high technology
industries for employment.
2.4 Much of the economic activity is currently
in broadcasting and telecommunications and reflects past investments,
with a significant downstream service industry based on the use
of satellites systems. Future developments in this area will look
at broadband links, digital communications and broadcasting. In
addition benefits from space technology can transfer to other
sectors, such as the technology for monitoring planetary environments
being "spun out" as novel scanning equipment for health
and security purposes.
2.5 Today space is an important and growing
aspect of commercial life, especially in downstream services.
However, there remains an element of inherent risk and expense,
particularly in the early development phase where risk reduction
is important. In parallel, many countries are recognising the
value of space in developing a national high technology capability
and are funding significant space developments. Recognising these
dynamics, in order to retain its leading position, the UK needs
to determine the appropriate level and type of support for new
initiatives within DTI.
Public Benefits
2.6 Earth observation satellite systems
are essential to understand the Earth's climate, environment and
its complex systems. In the BNSC partnership, Defra lead on these
issues, while the role of satellites is recognised and is beginning
to be exploited in a routine way in areas such as monitoring land
usage, agricultural regulation, disaster management and civil
security.
2.7 In addition, Earth observation data
from meteorological satellites is essential to weather forecasting,
which itself has a crucial social and economic impact for modern
society. UK's Meteorological Office is a world leader and is a
major contributor to EUMETSAT, the European agency responsible
for operating a number of meteorological satellites.
2.8 The Galileo satellite navigation project
jointly funded by the European Union and ESA is an initiative
which could bring real benefits to UK transport planning systems
as well as a variety of new commercial applications. BNSC partner
the Department for Transport leads on policy towards Galileo.
Benefits in Scientific Activities
2.9 Space-based astronomy (space science)
and space exploration are providing valuable insights into our
neighbouring planets, the solar system and beyond. Knowledge of
how the solar system works enhances the understanding of our own
Earth's systems and life on it. The Particle Physics and Astronomy
Research Council (PPARC) takes the lead on space science and exploration
and the role of space systems is recognised as critical in their
overall set of objectives and activities.
2.10 Satellites are also vital tools across
a broad range of environmental sciences, from modelling the atmosphere
and sea surfaces to biodiversity. Within the BNSC Partnership,
the Natural Environment Research Council (NERC) leads on Earth
science research activities.
2.11 UK scientists and engineers have built
a world-class reputation in both the above branches of space-related
science as well as the related technology areas such as robotics,
instrumentation and software.
Education and Skills
2.12 Space activities contribute to the
promotion of science and technology among young people. Space
has a particular ability to provide exciting contexts in which
teachers can demonstrate many scientific concepts and ideas in
a compelling way. The UK has a diverse range of excellent organisations
exploiting the capability of space for the teaching of science,
and organisations that offer lesson plans using space as the context
for illustrating many scientific and mathematical concepts. BNSC
works with the National Space Centre in Leicester in its outreach
work.
Underpinning National Technology Activities
2.13 Space technology is advancing rapidly
and facing competitive pressures. The UK space industry and science
community have significant expertise but there is a need to continue
to invest in key technological capabilities if the UK is to maintain
its leading position in those areas. This issue is widely recognised
and many countries are investing heavily in technologies as a
way of driving forward their industry and overall technological
capabilities. With the extensive science and societal use of space
there is a role for BNSC, particularly in the initial risk reduction
and "proof of concept" study stages.
2.14 Many BNSC partners currently have some
national technology activity, and there is a significant focus
of activity at the Rutherford Appleton Laboratory (RAL). In the
science field there are also significant centres of activity for
preparing future missions and exploiting existing ones. These
activities are not formally integrated between partners, yet much
of the technology is transferable across all space, including
military use. Recognising this, BNSC is actively taking steps
to bring greater cohesion to existing activity through a Joint
Space Technology Programme (JSTP). To enhance this, the CCLRC
is making a bid for additional resources on behalf of the partnership
to establish the necessary critical mass.
Dual Use
2.15 BNSC deals exclusively with civil space
programmes. However, satellite technology is largely applicable
to "dual use", that is, able to be used in civil and
military applications. The MOD is a BNSC partner to ensure that
it is well-placed to understand and exploit and advise on the
benefits of the BNSC activities in accordance with its vision
to "have sufficient assured access to space-based capability
to maximise and sustain military effectiveness across Defence".
2.16 There are discussions in EU and ESA
fora on the role of space in dual use. BNSC ensures that the relevant
UK partners are informed of these discussions. The basic UK position
supports the exploitation through European harmonisation of space
application for civil security and counter terrorism purposes.
However, neither ESA nor the EU has a mandate to fund and develop
space systems to meet military requirements and the UK insists
that this boundary is observed.
INTERNATIONAL PARTNERSHIPS
3.1 Space activities, because of their inherent
cost, risk and the required range of technological capabilities,
are characterised by international collaboration. For the UK,
the traditional focus for space activities is through collaboration
in Europe, with the European Space Agency (ESA) being the main
mechanism for such collaboration. In addition, via the Meteorological
Office, the UK is a major contributor to EUMETSAT, the European
agency responsible for operating a number of meteorological satellites.
The EU is also a growing influence in space. Notwithstanding the
above, there are also opportunities for bilateral activities,
both inside and outside Europe, and these are undertaken on a
case by case basis.
European Space Agency
3.2 ESA has an excellent reputation through
the world-class scientific missions that it has delivered and
the majority of UK space spending is undertaken through ESA. With
its mix of mainly optional programmes and core mandatory activities
the European Space Agency (ESA) provides a good "fit"
for the UK to choose and collaborate on specific projects on an
equitable basis. Thus a key priority for UK in terms of ESA is
to ensure that it remains fit for purpose, user-driven and continuously
striving to provide value for money.
3.3 The ESA mandatory programme covers the
general administration, basic technology, and most importantly,
the space science programmes. The UK is the second highest contributor
to this mandatory programme which is based on Net National Income
(NNI).
3.4 In contrast the ESA optional programmes
are funded by countries on a selective basis, and whilst the optimum
is for all countries to subscribe at NNI, it is possible to be
a participant in a specific programme at one quarter NNI, and
to go significantly above NNI. The UK has been very selective
in subscribing to ESA optional programmes, focusing on Earth Observation,
telecoms and navigation. The UK has no involvement in the International
Space Station, and only a token involvement in launcher development
activities. The UK has no role in manned space flight. Aurora
at this stage is not a manned space programme.
3.5 ESA arrangements are such that companies
and organisations from each member state receive contracts of
value in direct proportion to the member state's subscription
(on given projects). Traditionally UK's industrial returns have
exceeded the value of its subscriptions. However over the last
few years, our overall returns have dropped marginally below the
level of our subscriptions (ie under return). BNSC is monitoring
the placement of ESA contracts and working hard to reverse this
trend.
European Union
3.6 The European Union is also becoming
more involved in space activities and with ESA it is developing
the European Space Policy, a framework for the future governance/management
of European space activities. The UK is playing an influential
role in its development seeking to ensure a user driven approach
and an appropriate split of roles and responsibilities between
EU and ESA. The EU also funds space-related research through its
Framework Programmes.
3.7 Galileo was an early space-related initiative
for the EU because of the potential to benefit transport networks
across Europe. It has been carried out as a joint EU and ESA initiative.
EU funding has been provided via the Framework Programme and TENS
(Trans European Networks) budgets. Galileo's first validation
satellite, GIOVE-A, was built by Surrey Satellite Technology Ltd.
The Global Monitoring for the Environment and Security (GMES)
programme is the second and latest joint EU-ESA space-related
initiative. The UK has taken a smaller share of the ESA programme
in GMES because of concerns over its relevance to UK policy needs
as currently defined.
3.8 The Research Framework Programmes are
the EU mechanism for funding research activities, with Framework
Programme 6 (FP6) currently being in place and FP7 starting in
2007. In FP7 space, for the first time, has a separate programme
in its own right. BNSC has been closely involved in the development
and definition of the associated Space thematic priority programme.
In doing so, BNSC is drawing on advice from its EU Advisory Board.
It is seeking to ensure that UK organisations will have maximum
opportunity to access available research funds.
EUMETSAT
3.9 In order to meet their common requirement
for the provision of data to support operational meteorology and
climate research, European countries established EUMETSAT[18]
in 1986 to operate the European meteorological satellites. Met
Office attends EUMETSAT to represent all UK interests including
BNSC.
3.10 EUMETSAT has a close working relationship
with ESA for the initial development and procurement of satellites.
EUMETSAT is then responsible for launching satellites and further,
development of the remaining satellites in each series, ground
segment and all operational activities.
Other collaboration
3.11 BNSC also looks to cooperate where
beneficial with a range of other countries to facilitate activities
which it cannot carry out through ESA and to assist UK companies
in accessing overseas markets. It also works with the United Nations
and in space debris coordination fora. BNSC works closely with
partner the Foreign and Commonwealth Office in its international
relations.
BNSC ORGANISATION
Membership
4.1 The British National Space Centre (BNSC)
was established in November 1985 to ensure better coordination
of space interests, under the leadership of DTI. As this coordination
has developed, both within the UK and in handling international
relations, most notably with ESA, BNSC has grown from four[19]
to eleven partners. Current members, and their space interests,
are:
— Department of Trade and Industry
— Particle Physics and Astronomy Research
Council
— Natural Environment Research Council
— Office of Science and Innovation
— Department for Education and Skills
— Department for the Environment, Food
& Rural Affairs
— Department for Transport
— Council for the Central Laboratory
of the Research Councils
— Foreign and Commonwealth Office
Reviews
4.2 The structure and operation of the whole
or parts of UK civil space policy have been reviewed a number
of times both internally and externally. Beginning with the House
of Lords Science and Technology Select Committee report on UK
space policy in 1988, the most recent external inquiries were:
— Public Accounts Committee report
on UK's civil space activities in June 2005;
— ESA/UK Commission of Inquiry report
into the loss of Beagle 2 in February 2005;
— Transport Committee report on Galileo
in November 2004;
— House of Commons Science and Technology
Committee inquiry into Government support for Beagle 2 in November
2004;
— National Audit Office report on civil
space activities in March 2004; and
— Trade & Industry Committee's
inquiry into civil space policy in 1999.
4.3 BNSC also consults widely both in developing
the UK space strategy and in reviewing its operation. These have
been made available on the BNSC website www.bnsc.gov.uk. This
memorandum does not seek to repeat these reviews.
Role of BNSC
4.4 The governance of BNSC was reorganised
in 2005 to distinguish more sharply the management and advisory
functions. The UK Space Board was put in place to provide
the strategic steering role for BNSC. Its members are PPARC, NERC,
DTI, Met Office and Ministry of Defence, who provide the main
institutional funding for UK space activities. The Space Advisory
Council reports to the Board and is composed of all BNSC partners
as well as the chairs of the specialist BNSC advisory groups and
representatives from industry and academia. Five Advisory Boards
advise the Director General of BNSC and include representation
from BNSC partners, industry and academia.
4.5 The core staff of BNSC—ie those
who carry out functions on behalf of the partnership as a whole—are
made up primarily of DTI staff with some seconded from some of
its constituent partners.
4.6 The key policy roles now carried out
by the BNSC core staff in headquarters are to:
— advise the Science Minister
— develop the UK Space Strategy
— oversee and review implementation
of the Strategy
— liaise across government bodies
— foster the strengths of the UK space
community
— develop industrial policy and liaise
with industry
— lead at the European Space Agency
Council and its Boards, and with the space interests of the European
Commission
— provide international representation
and develop cooperation
— promote awareness of space through
education and publicity.
4.7 BNSC is not an executive agency and
its leadership role is in defining an overall strategy, international
and cross government representation, and common issues with specific
programmes funded by the relevant partner. Nevertheless, it is
acknowledged as being effective in encouraging UK organisations
to use space as a tool where appropriate and in meeting national
objectives for the use of space. In reviewing the BNSC, the National
Audit Office commented:
"Our analysis shows that the partnership
approach is a cost effective way of securing the benefits of national
and international co-operation on space programmes. This is because
it ensures that partners consider the benefits of expenditure
on space against alternative investments, while also avoiding
duplication".[20]
4.8 BNSC is currently in the process of
updating the UK Civil Space Strategy and will consider the recommendations
of the Committee prior to publication in mid-2007.
Funding
4.9 Policy direction is determined by Ministers
and/or the governing bodies of partners in the light of their
own priorities and the resulting expenditure comes from the budgets
of the individual BNSC partners. These priorities are discussed
in the separate memoranda of the partners. Thus there is no single
national space budget. Each partner considers the merits of using
space against other means of achieving its policies, or assesses
the relative merits of space-related and other proposals for research
funding. Where space is shown to provide the most effective means
of achieving their wider objectives the relevant partner(s) will
consider funding the space activity. BNSC provides the forum for
pooling such requirements and sharing the costs where possible.
This ensures budgets are spent on the most effective means or
on the highest quality research. Space is by its nature an activity
that requires long-term commitment and BNSC aims to provide continuity
of approach.
4.10 The UK has made some significant and
hard choices on space. Specifically, we have stood aside from
funding for human space flight, the International Space Station
(ISS), and new launcher development. On human space flight and
ISS the rationale was that the cost did not justify the return,
while on launchers, the view is that alternative commercial options
exist.
4.11 The total UK spend on civil space activities
by BNSC Partners is around £200 million a year. Annex B provides
a graph of overall space-related spending by BNSC partners over
recent years. The bulk of this is spent on scientific activities
and about two-thirds is invested in the programmes of the European
Space Agency.
4.12 In terms of national spending on space
relative to GNI, in 2004 the UK spent some 0.02% of its GNI on
public civil space expenditure. This was substantially lower than
other large ESA members, with France at 0.09%, Germany at 0.042%
and the ESA average at 0.048%. The US by comparison was at about
0.13% and Japan at 0.06%.[21]
A key reason for this is UK's highly selective approach to space
activity and a low level of support for technological developments
which will underpin commercial activity.
FUTURE CHALLENGES
5.1 Space activity is increasingly providing
a pivotal technology and platform for wealth creation and addressing
a number of important challenges for the 21st century. As such
it is a crucial sector for the UK, which is well placed to take
advantage of these opportunities through its industry, science
and government. However, we are facing increasing competition
from our European partners and globally. UK needs to take a strategic
approach, keeping abreast of developments if we are not to be
overtaken in key areas. Industry and Government must play a strong
role in this.
5.2 BNSC has responsibility for overall
strategy direction, co-ordination of public activity and influence
on the international scene. The main areas for focus in the short
to medium term are:
(i) In a rapidly changing global space environment,
and with rapid technological change and increasing use of space-derived
material for both public and private activities, BNSC needs to
remain fit to serve its many stakeholders in industry and science,
and to serve the economy and society more broadly. It needs to
keep under review its structure and focus, and whether resources
meet demands. Many space related programmes are internationally-led
with timescales determined at the international level. The UK
needs to develop improved systematic means of deciding levels
of funding, particularly on initial programmes stages and those
that involve cross Government interests.
(ii) The greater part of UK public space
funding is invested in the programmes of the European Space Agency,
while the EU is increasingly using space to meet its policy needs.
BNSC needs to continue to ensure that both organisations remain
genuinely focused on the real needs of the citizen, that they
address effectively and efficiently new demands from society and
that they cooperate together in a manner beneficial to both and
also to the public that they serve.
(iii) The UK will need to decide how it should
respond to the new US-led initiative on exploration and exploitation
of space. This is not entirely an issue of science but will also
address exploitation, and involve the opportunity for robotic
technologies.
(iv) The balance of national and ESA programmes
has long been weighted in favour of cooperation through ESA and
this may need to be considered further.
(v) DTI is the anchor government department
and this role needs to continue.
5.3 BNSC also needs to develop its capacity
to assess and influence new areas where space may benefit the
economy and society. Such horizon scanning might relate in particular
to new commercial opportunities deriving from technological development
and the emergence of new space-faring nations; new areas of policy
that might be addressed by space, such as health; and the potential
impact of scientific developments arising from space activity.
October 2006
10 UK Space Strategy 2003-06 and beyond: Space
for science, enterprise and environment. Back
11
State of the Space Industry 2005, page 1. International
Space Business Council. Back
12
Size and Health of the UK Space Industry: 2006 Executive
summary, page 2. Bramshill Consultancy Limited. Back
13
Ibid page 6. Back
14
The Case for Space. The Impact of Space Derived Services and
Data, page 13-14. June 2006. Oxford Economic Forecasting. Back
15
Ibid page 4. Back
16
State of the Space Industry 2005, page 1. International
Space Business Council. Back
17
The Case for Space. The Impact of Space Derived Services and
Data, page 22, June 2006. Oxford Economic Forecasting page
22. Back
18
European Organisation for the Exploitation of Meteorological
Satellites; created through an international convention and now
with 18 European Member States (Austria, Belgium, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland, Turkey, and the
United Kingdom), the UK being a member since its inception. Back
19
Department of Trade and Industry, Ministry of Defence, Science
and Engineering Research Council, Natural Environment Research
Council, the latter two then funded by the Department of Education
and Science. Back
20
NAO report on UK Civil Space Activities HC 359 Session 2003-04
page 3. Back
21
The European Space Sector in a Global Context: ESA's annual
analysis 2004 pages 42 and 100. Back
| 
