Memorandum submitted by the Department
for Business, Innovation and Skills (UKSA 00)
Letter to the Chairman of the Committee
from the Minister for Universities and Science, 31 August 2010
Please find attached a submission from the department
in response to your inquiry on the role of the UK Space Agency.
This submission provides factual evidence in relation to the specific
questions.
The one point that cannot be cleared in the timescale
of the deadline for input is the question of the agency's funding.
As you are aware we are currently in the midst of a spending review,
which will not be concluded before October. At present neither
I nor officials will be able to make any firm statement on the
funding of the agency for the next financial year.
The Rt Hon David Willetts MP
Minister for Universities and Science
Department for Business, innovation and Skills
MEMORANDUM
KEY POINTS
The Department for Business, Innovation and
Skills Structural Reform Plan published in July 2010 commits BIS
to establish the UK Space Agency as a full executive agency of
BIS from 1 April 2011. This follows the UK Space Agency launch
on 1 April 2010, which itself resulted from a decision by the
previous Government following both a public consultation and a
space innovation growth team report in 2009-10.
The UK Space Agency replaced the British National
Space Centre (BNSC) which was an umbrella organisation of 10 Government
departments, research councils and non-departmental public bodies.
The agency is operating in shadow form, whilst
the detailed legal, administrative and financial commitments are
agreed and completed before the agency begins operating as a full
executive agency from April 2011.
The agency will work to ensure the UK has a
competence in space technology.
This improves upon the previous structure whereby
the British National Space Centre (BNSC) worked within a structure
which was based on a partnership across government. In establishing
the agency, consideration was paid to the sort of structure which
would ensure and encourage continued growth, and equally importantly
ensure that the UK retains a core competence on space applications,
technologies and systems in both industry and academia.
The previous multi-partner approach meant that
BNSC could not take active responsibility for the overall delivery
of the government's civil space strategy, and the "bottom
up" approach could have resulted in the UK losing its "critical
mass" competence in space. Also, the structure had each partner
programme budget operating on different timescales militating
against having a unified long term programmatic and financial
outlook.
The agency will also work to maximise UK benefits
from space activities and to ensure that the UK remains at the
forefront of global scientific excellence as well as in the exploitation
of space infrastructure, products and services. The agency encourages
interaction between industry and academia.
For more than a decade the UK space industry
has shown consistently high growth levels, and this has been maintained
even during the recession. Preliminary results from the ongoing
biennial Study of the UK Space Industry indicate that growth over
the last three years averaged about 11%.
The contribution of the UK space industry to
the economy was highlighted in a 2009 report from Oxford Economics,
sponsored by the South East England Development Agency (SEEDA),[1]
which showed that the UK space industry had a turnover of £5.9
billion and directly contributed around £2.8 billion to UK
GDP in 2006-07. If the spill over effects from space investment
in research and development are also included then the GDP contribution
increases further to over £6.5 billion a year.
INTRODUCTION
1. The UK Space Agency was created following
the space innovation growth team (IGT) report[2]
sponsored by the Department for Business, Innovation and Skills
(BIS), and a public consultation, which ran from July to October
2009. The Space IGT report supported the creation of a UK Space
Agency to lead on all space-related activities. The consultation
sought views from interested parties on how to fund and organise
the civil space sector so that it can meet the challenges of the
future and deliver the greatest benefits to the country. Results
showed a high level of support for a restructuring of space activities
in the UK, with the majority of respondents backing the creation
of an agency. The agency was established in the first quarter
of 2010, and replaced the British National Space Centre. The UK
Space Agency is bringing together for the first time a range of
UK civil space activities under one single management to enhance
efficiencies and improve strategic decision making.
2. The agency's responsibilities will include
scoping and delivering UK Government's space requirements, strengthening
the UK's relationship with the European Space Agency; agreeing
with UK industry how to maximise the benefits of space technologies;
and working with the scientific community to provide a clear voice
on decisions that affect the sector.
3. During the transition to a full executive
agency, the shadow agency is negotiating to take over responsibility
for BIS policy and key Government budgets for space. This has
started with the European Space Agency (ESA) subscriptions currently
funded by Natural Environment Research Council (NERC), Science
and Technology Facilities Council (STFC) and Technology Strategy
Board (TSB). The agency will also take on responsibility for managing
UK interests in EU projects including the space component of GMES,
and Galileo which are currently the responsibility of DEFRA and
DfT respectively. Further policy transfers may be agreed.
4. It has also been agreed in principle
that the agency will manage the UK's financial interest in the
EU Satellite Centre, which is currently the responsibility of
the MOD. The shadow agency will also begin to take responsibility
for space funding for technology and instruments currently carried
out by the Research Councils and TSB. It will also negotiate on
the UK's behalf on international bodies.
5. The new agency will allow the UK to exploit
better its competitive advantage in satellites, robotics and related
technologies and to take full advantage of the opportunities offered
by a world increasingly dependent on advances in space innovations
and science.
What progress has been made in setting up the
UK Space Agency?
6. Since launching the agency in March,
a number of steps have been taken towards setting the agency up
to run as a full executive from April 2011. These include:
(a) Agreement on civil space programmes and funding
to transfer
The agency transition team is working with
previous partners of the BNSC to agree which programmes and funding
will transfer to the agency. Agreement has been reached in principle
to transfer all the European Space Agency budgets to the agency
from April 2011. The agency will also take on responsibility for
managing UK interests in EU projects including the space component
of GMES, and Galileo which are currently the responsibility of
DEFRA and DfT respectively. It has also been agreed in principle
that the agency will manage the UK's financial interest in the
EU Satellite Centre, which is currently the responsibility of
the MOD.
(b) Agreements between UK Space Agency and BNSC
partners
A Service Level Agreement (SLA) was signed earlier
this year between the UK Space Agency and the Science and Technology
Facilities Council (STFC). This SLA forms an interim measure in
advance of the UK Space Agency being formed as a fully functional
executive agency. The SLA sets out a framework by which the STFC's
interests in the UK Space Science and Space Exploration programme
will be managed.
As a result of the SLA, a specific STFC space
programme team has been created within the UK Space Agency, resourced
and staffed through support from STFC and under the direct management
of the Chief Executive of the UK Space Agency.
Further agreements are being drafted between
the agency and the Natural Environment Research Council, DEFRA,
and the Met Office to formalise the working relationship between
these bodies and the UK Space Agency on the exploitation of, and
support for, space-related programmes. A programme of regular
bi-lateral meetings has also been established between the agency
and the Met Office. The agency transition team is working closely
with DfT towards final agreement on resources which will be transferred
in support of the Galileo programme management.
(c) Support of industry staff
The Innovation and Growth Strategy committed
to ten industry placements into the space agency. Four staff have
been loaned to date and are overseeing the implementation of the
Innovation and Growth Strategy recommendations, and working to
formalise a means by which the MOD and the Space Agency will work
together on space security and resilience issues.
(d) Space Leadership Council established
Recommendation 16 of the Innovation and Growth
Strategy (IGS) was to establish a Space Leadership Council which
would be co-chaired by a BIS minister and industry. The Council
has been set up and has met four times, the two most recent meetings
being co-chaired by the new Minister for Universities and Science,
David Willetts. Council members comprise representatives from
industry, the research community and government. Members agreed
that the Council's purpose should be:
To provide strategic advice and challenge for the
UK Space Agency and identify future opportunities for growth in
the space sector, the wider economy and society in general while
overseeing the progress of the IGS implementation.
A list of Council members is attached at Annex
A.
(e) Agreement to establish a steering board and
audit committee
In order to become a full executive agency, a steering
board and audit committee will need to be set up. David Willetts
has agreed the terms of reference of both of these bodies and
advertisements for independent members will be placed through
the Cabinet Office appointments system in the early autumn.
An internal project board comprising senior
BIS staff and a space agency representative has been established
to agree how finance, HR, legal and support systems such as IT
will be provided to the space agency when it becomes a full executive.
How does the UK Space Agency work with other bodies
(national and international) on space issues?
7. The UK Space Agency works closely with
a number of other bodies nationally, within Europe, and internationally
on space issues and has a variety of mechanisms to undertake this
work. These links are being strengthened as the Agency begins
to take over its full responsibilities.
(a) UK Cooperation
The UK Space Agency has strong links with government,
industry and the research community. These links have been strengthened
with the creation of the Space Leadership Council which is co-chaired
by the Minister for Universities and Science, and the Chief Executive
of Logica. The Agency is also revisiting the advisory structure
it will implement, with the aim of taking advice from all sectors
of its stakeholders.
Around 90% of UK Space Agency investment is
channelled through the European Space Agency. UK Space Agency
staff represent the UK at a number of ESA committees and programme
boards, including ESA Council, the overall governing body of ESA,
which is attended by heads of Member States' space organisations.
The ESA Council is currently chaired by the head of the UK Space
Agency.
Working with the European Union is a major strand
of activity. The Agency is planning to lead for the UK on all
civil space policy and programmes in the EU, and currently leads
on general policy and the space component of GMES. In the latter
case Defra retain overall policy lead.
An agreement was made at the ESA Ministerial
meeting in 2008 that ESA would establish an ESA research facility
in the UK at the Harwell Science and Innovation campus. This facility
was opened officially in July 2009 and marks a new departure for
ESA as it is the first time that it has set up for business at
an existing large science and technology facility. Having an ESA
facility in the UK has strengthened the relationship between the
UK and ESA and raised the profile of the UK among other Member
States and within ESA headquarters. The closer working relationship
has helped the Space Agency to engage more directly with the Director
General of ESA, resulting in him attending and presenting at high
profile international events in the UK including the launch of
the UK Space Agency and the Space Day at Farnborough International
Airshow. Alongside the ESA facility the UK has also established
the International Space Innovation Centre (ISIC) at Harwell. This
will provide a central hub for British space activity, ensure
the UK maintains its world-leading space capability and provide
the accommodation and facilities necessary to maximise the scientific,
technological and business impact of closer liaison with ESA through
the ESA facility which is also located at Harwell.
(d) Global Cooperation in Exploration
The UK collaborates with most of the world's
space agencies and continues to forge new international partnerships.
The UK Space Agency will continue the work started by BNSC as
part of the International Space Exploration Coordination Group
(ISECG). BNSC was one of the founding partners of this group which
was established in 2007 to improve how agencies work together,
strengthening exploration programmes and coordinating activities.
The UK works with the United Nations Office
for Outer Space Affairs, responsible for promoting international
cooperation in the peaceful uses of outer space. An important
aspect of this work is in the granting of licences for UK objects
to fly in space, and the monitoring of satellites and debris.
The agency represents the UK interests in three
important Earth observation fora: the Committee On Earth observation
satellites (CEOS) coordinates civil observations of the Earth
from space, the International Disaster Management Charter (DMC)
deals with the provision of satellite data sets in response to
international disasters, and the Group on Earth observations (GEO—Defra
is the policy lead) which is coordinating efforts to build a global
system of observations. The agency is the policy arm for DMC and
provides some financial support to a UK company that runs the
participating UK satellites.
The agency has inherited a number of bilateral
co-operation agreements, and since its creation has also negotiated
and agreed two new agreements. The first is with the UK's longest
standing international partner, the United States. A Statement
of Intent was signed in July 2010 between the UK Space Agency
and NASA which confirmed the mutual desire of the two agencies
to identify new cooperative activities related to Earth and space
science, life sciences, and space exploration, in addition to
other areas of mutual interest.
In the same month, the UK Space Agency signed
a Memorandum of Understanding with ROSCOSMOS, the Russian Federal
Space Agency. This MOU set out a framework for collaborative activities
between the UK and Russia and agreed to explore options for information
and technology sharing. Since signing the MOU, discussions have
started with the Russian Embassy on how to take things forward.
The agency is also at an advanced stage of negotiation
with Peru over an agreement which would facilitate a possible
commercial sale of satellites to the country. Other similar arrangements
are also being considered with a number of countries including
India where the UK recently agreed to explore opportunities to
collaborate on space projects. Agency staff are holding preliminary
negotiations with Indonesia and the UAE on further agreements.
Is the UK Space Agency more effective at coordinating
space policy than its predecessor, the British National Space
Centre?
8. Although it is too early to be definitive,
the UK Space Agency believes it is making good progress towards
being ready to operate as a full executive agency and when fully
operational, the agency will certainly be more effective at coordinating
space policy than the British National Space Centre (BNSC).
9. A fully operational UK Space Agency will have
responsibility for all civil space policy across government. This
will join up disparate policies which in some areas currently
sees more than one government department with responsibility for
particular programmes. A joint US/European satellite altimetry
programme, Jason-3, is a current example of this. A number of
government departments have an interest in and contribute financially
to the programme. In future, by drawing the programme and funding
together, it will be clear where the UK lead is and policy can
be co-ordinated from a single point within Government.
10. The governance structure of the agency
will be significantly stronger than that of the BNSC which will
lead to greater focus and better coordination of policy. The Space
Leadership Council is already in place to provide strategic advice
and challenge for the agency. Later this year we will start the
process of appointing members to the agency steering board and
audit committee. Members will be expected to advise Ministers
and the Agency Chief Executive on strategy and to ensure propriety
of the agency's operations.
11. The UK Space Agency is also working
with the Science and Technology Facilities Council on the creation
of an International Space Innovation Centre (ISIC) at Harwell.
A novel partnership between the public and private sectors, the
ISIC will be established as an independent entity governed by
its partners commencing operations in April 2011.
What should the UK Space Agency's priorities be
for the next five years?
12. The 2010 Innovation and Growth Strategy
sets out an ambitious vision for the UK space sector over the
next 20 years. To deliver on this vision, it is critical that
the UK Space Agency, government, industry and the research community
work together. One of the actions the Agency plans to implement
before April 2011 is to review its overall strategy and objectives.
These will be based upon the existing strategy, the IGS recommendations,
and consideration of priority government objectives such as long
term stability and growth. The agency will also draw on advice
from stakeholders and groups such as the Space Leadership Council
in drafting the strategy. Thus the existing activities will remain
a priority, with new efforts being made in a number of key areas.
An ongoing objective which the agency will continue to support
is the integration of the research community with industry to
promote innovation. This is an area where the UK is already strong
and through initiatives such as the ISIC, greater integration
can continue to be nurtured. Specific issues in the next five
years include:
(a) Economic Growth and Industrial support
Working with industry to develop new market
opportunities will be a key feature in the next period. This will
be wide ranging a cover issues such as:
— Regulation—including de-regulation
as appropriate and new regulation to enable new activity. eg space
tourism.
— Representation in wider government. This
will aim to identify cross government policies that could benefit
from a space infrastructure. This will involve co-operative agreements
with OGDs as necessary.
— Ensuring the UK industrial capability
is represented internationally and specifically in European debates.
— Selective and competitive support for
enabling technologies where there is market failure and/or a strategic
need.
— International negotiation when bilateral
agreements are a tool to pave the way for industry.
The next ESA Ministerial Council meeting will
be held within the next three years and after the high level of
commitments made by the UK at the Ministerial meeting in November
2008, Europe will be looking to the UK to reaffirm its commitment
to future space programmes. In the current economic climate, it
is not easy to identify what commitments the UK will make at this
meeting but working with guidance from the Space Leadership Council
and others, the UK will need to prepare a position which is both
positive and realistic. There are two broad categories of ESA
programme: mandatory and optional. Subscription to the mandatory
programmes is calculated according to the net national income
of a country. This currently results in the UK being the 2nd largest
contributor to the mandatory programmes, contributing 17.4%. Participation
in mandatory programmes allows the UK to play a leading role in
areas of long-term expertise, for example in space science. The
UK subscribes to optional programmes on a programme-by-programme
basis. Participation in optional programmes allows the UK to focus
on areas such as telecommunications, satellite navigation and
Earth Observation—areas in which the UK has real strengths
and sees user opportunities, in line with its user-led approach
to space. The UK's involvement in ESA programmes benefits the
UK space industry because ESA awards contracts to national companies
in proportion to the contribution made by each country. UK commitments
to ESA programmes are agreed at Ministerial level and the last
such Ministerial level meeting was held in 2008.
(c) International Collaboration
Having signed agreements recently with some
international space agencies, the UK Space Agency will seek opportunities
to develop these agreements, in particular through identifying
opportunities for mutual collaboration on technology development
and information exchange. The agency will also continue ongoing
work to set up similar agreements with other international space
agencies.
(d) Education and Outreach
A European Space Education Resource Office (ESERO)
is being launched in the UK (at the University of York) in September
2010. This will provide space-related resources to UK teachers
to assist them in teaching science, technology, engineering and
maths (STEM). ESA is part funding the ESERO and one of the UK
Space Agency's priorities over the next five years should be to
look for opportunities, through the ESERO for example, to encourage
more children to take up STEM subjects and continue these into
higher education.
Through its "Space for All" community
funding scheme the UK Space Agency will continue to support UK
groups in carrying out education, research and promotion activities
around the UK. In its first round, the scheme supported 13 groups
carrying out these activities. These included a schools contest
in which 160 pupils from 12 schools spent a hard weekend at Imperial
College designing space settlements in four teams. Other grants
support inspirational STEM teaching in Cornwall, space days in
primary schools, and cross-curricular space-based activities run
by Queen Mary University of London focused on IT, design and STEM.
The Lisbon treaty (articles 4 and 189) gave
the European Union shared competence in space. This says the EU
will define a space policy and have their own space programme.
As a result, the EU are now planning to have both a space policy
and in the next EU financial perspective a programme of space
activities. These will consolidate the ongoing work in the current
EU Framework research programme and the implementation and operations
of the Galileo navigation programme and the Global monitoring
for environment and security programme (GMES). One of the agency
priorities will be to continue working with European partners
through ESA to ensure that the commitments in the Lisbon treaty
are delivered without duplicating the work of ESA, or diluting
the role of ESA.
A major priority for the UK Space Agency will
be to work with the ISIC and with ESA to ensure the success of
the Harwell campus in providing the central hub for British space
activity. It will also to be to work with nodes around the UK
such as those in Surrey and the East Midlands.
Is the UK Space Agency adequately funded?
13. The UK Space Agency has legal commitments
to ESA over the coming years and to a certain extent, these commitments
dictate the level of funding required. To deliver more than the
BNSC delivered, it is essential that the agency has a national
technology programme budget, in particular to continue developing
the links between the research community and industry. The agency
is involved in the Comprehensive Spending Review which will be
the framework for decisions making on the UK space budget.
Department for Business, Innovation and Skills
August 2010
Annex A
MEMBERSHIP OF SPACE LEADERSHIP COUNCIL
David Willetts, Minister for Universities and Science
(co-chair)
Andy Green, Logica (co-chair)
Will Whitehorn, Virgin Galactic
Colin Paynter, Astrium
Perry Melton, Inmarsat
David Williams, Avanti
Martin Sweeting, Surrey Satellite Technology Ltd
Nigel McNair Scott, Helical Bar
Craig Clark, Clyde Space
Rob Douglas, South East England Development Agency
Paul Monks, University of Leicester
Robert Gurney, University of Reading
John Zarnecki, Open University
Sa'id Mosteshar, London Institute of Space Policy
and Law
Brian Collins, Department for Transport & the
Department for Business, Innovation and Skills
Mike Segal, Department for Environment, Food and
Rural Affairs
David MacKay, Chief Scientific Adviser, Department
of Energy and Climate Change
Tim Wheeler, Department for International Development
Peter Schofield, Her Majesty's Treasury
Baz North, Ministry of Defence
Patrick White, Cabinet Office
David Clary, Foreign and Commonwealth Office
Neil Stansfield, Home Office
Alan Thorpe, Natural Environment Research Council
Keith Mason, Science and Technology Facilities Council
Iain Gray, Technology Strategy Board
Phil Evans, Met Office
1 Oxford Economics "The Case for Space: The Impact
of Space Derived Services and Data", published July 2009. Back
2
A UK Space Innovation and Growth Strategy 2010 to 2030, published
February 2010. Back
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