Documents considered by the Committee on 9 April 2014 - European Scrutiny Committee Contents


9 Space policy

(34738)

6952/13

+ ADDs 1-2

COM(13) 107

Draft Decision establishing a space surveillance and tracking support programme
Legal base Article 189(2) TFEU; co-decision; QMV
Department Business, Innovation and Skills
Basis of consideration Minister's letter dated 17 March 2014
Previous Committee Reports HC 86-xxxviii (2012-13), chapter 3 (17 April 2013), HC 83-iii (2013-14), chapter 4 (21 May 2013) and HC 83-xxx (2013-14), chapter 1 (29 January 2014)
Discussion in Council 14 April
Committee's assessment Politically important
Committee's decision Cleared

Background

9.1 In its April 2011 Communication Towards a space strategy for the European Union that benefits its citizens the Commission set out proposals for a space policy and said a specific industrial policy was necessary to deliver greater competitiveness on the world stage, independence for specific sub-sectors such as launchers and the development of the market for space products and services.[38]

9.2 In a February 2013 Communication the Commission, building on the areas highlighted in the 2011 Communication, set out five specific objectives for a space industrial policy:

·  to establish a coherent and stable regulatory framework;

·  to further develop a competitive, solid, efficient and balanced industrial base in the EU and support SME participation;

·  to support the global competitiveness of the EU space industry by encouraging the sector to become more cost-efficient along the value chain;

·  to develop markets for space applications and services; and

·  to ensure technological non-dependence and an independent access to space.

9.3 Underpinning these objectives were 37 specific proposals divided into six work streams, including supporting establishing and operation of an EU space surveillance and tracking (SST) service.[39]

9.4 In February 2013 the Commission also published this draft Decision, which would establish an SST support programme for the EU. In support of the proposal the Commission said that:

·  space-based systems play a fundamental role in everyday life and are critical to the economy and security;

·  there is a need to protect EU space infrastructure accordingly; and

·  in order to mitigate the growing risk of collisions amongst satellites and orbital debris,it is necessary to identify and monitor space objects in an increasingly congested and contested orbital environment, in order to ensure the safety, security and sustainability of the space operations upon which there is critical dependency.

9.5 The programme the Commission envisaged would aim to establish a SST capability in the EU with emphasis on:

·  exploitation of existing sensors (optical and radar) to survey and track space objects;

·  establishment and operation of a function to process and analyse SST data to support risk assessment involving collision avoidance in orbit and re-entry of objects into the Earth's atmosphere; and

·  setting up and operation of a SST function to support spacecraft operators and public authorities.

9.6 The Commission said that:

·  the level of funding proposed for the SST support programme, €10 million (£8.34 million) per annum, was relatively modest and should be drawn from other programmes provided for in the MFF framework for 2014-20;

·  it envisaged providing support and oversight for the development of services, but did not intend to invest in new SST sensors, relying upon the coordination of existing sensors, owned and operated by the Member States;

·  those Member States wishing to participate in the programme would need to demonstrate ownership of SST sensors or capabilities and services and adequate resources to operate and deliver them and to provide a plan for engagement in the SST programme;

·  it anticipated a coordinating role and funding for the EU Satellite Centre (EU SatCen) based in Torrejón, Spain; and

·  information generated in the framework of the SST programme would be managed and exchanged in accordance with data security and governance rules, which would likely reflect similar existing measures developed by the EU SatCen for handling sensitive remote sensing data products.

9.7 When we last considered this matter, in January, we heard that:

·  no substantive negotiations on the draft Decision had taken place between June and November 2013;

·  negotiations had begun on the basis of a Presidency text which presented the SST support programme as a framework activity instead of a programme, withfunding allocated rather than drawn from perceived beneficiary programmes including Galileo and Copernicus;

·  with the support of the Commission, the Greek Presidency was pushing for an agreement on the proposal within the current European Parliamentary period;

·  during substantive negotiations in the Council's Space Working Group in January, the Government negotiating team had secured significant improvements for the UK in redrafting the Commission's draft text to reflect the Government's major policy and security concerns;

·  since the latest version of the Council draft text was marked Limité, we could not report on it in any way which would bring detail contained in the text into the public domain;

·  the Government continued to seek a solution wherein the EU SST support activity would be delivered by national entities comprising sensor and data centres, deriving SST information from observation data and releasing services in the form of collision warning, in-orbit breakup detection, and re-entry estimation, and delivering services via the EU SatCen (which was currently performing a similar role for delivery of Earth observation services);

·  it believed this operational approach enabledit to address security concerns over release of sensitive orbit data and related information;

·  its position on security and the respective roles of capable Member State entities was well aligned with the major SST players in the EU;

·  its biggest policy concern had related to previous references to the Internal Security Fund, of which the UK team had successfully negotiated deletion in the latest Council text, though references remain in the European Parliament text; and

·  informal trilogue negotiations were underway and might lead to rapid agreement.

9.8 We noted that we had said previously that we wished to have an account of the progress in Council working group negotiations on the various issues which had been drawn to our attention. However, apart from the issue of the Internal Security Fund, we could not discern clear enough information in the latest account of developments about assured success on the other issues. So, if the Government was likely to want clearance from us at short notice, it needed to let us know soon where matters stood on:

·  clarity on governance and management of the system in order to ensure that EU aspirations were practicable and deliverable;

·  verification that the new functions proposed for the EU SatCenwere compatible with its current competencies and capabilities;

·  retention of Member State ownership of the overall EU SatCen product;

·  robust data security; and

·  a cap on programme expenditure.

9.9 In connection with the last point we were unclear as to what "presenting the SST support programme as a framework activity instead of a programme, with funding allocated rather than drawn from perceived beneficiary programmes including Galileo and Copernicus" meant, particularly in relation to Multiannual Financial Framework limits.

9.10 In connection with the comments about the Limité status of the draft, we noted that it represented an apparently significant development in the Council's activity as a legislator. We observed that this secretive approach to considering legislation hardly enhanced democratic legitimacy and referred the Minister to the comments we had made on the Limité status of the final draft of the Directive on the European Investigation Order.[40] We asked the Government to convey this observation to the Presidency and the Commission and to report back to us.

9.11 Meanwhile the document remained under scrutiny.[41]

The Minister's letter of 17 March 2014

9.12 The Minister for Universities and Science, Department for Business, Innovation and Skills (Mr David Willetts), tells us now that the latest version of the proposal, of which he sends us a Limité copy, with a repeat of his earlier caveat, was approved by Coreper on 29 January and that this is being reviewed by jurists-linguists in anticipation of approval by the plenary of the European Parliament this month and subsequent ratification by the Council.

9.13 The Minister then addresses the questions we asked, saying first, on the issue of the clarity on governance and management of the system to ensure that EU aspirations are practicable and deliverable, that:

·  the proposal recognises that the SST service will be delivered through a consortium of Member State entities, exploiting existing national assets and agreeing the nature of level of service and most notably the security of SST data and information;

·  both Ministry of Defence and UKSpace Agency officials have been working with their international counterparts, who will contribute to this service, and are reassured that the envisaged service is possible with existing assets and that national control of those assets will provide the necessary oversight/control of activities; and

·  Ministry of Defence and UKSpace Agency officials visited the EUSatCen in January and can confirm that its demonstrated expertise in SST is compatible with the envisaged functions it would perform in support of national entities.

9.14 The Minister then tells us that Member States will retain control of the data, information and product made available to the EUSatCen for onward transmission to third parties and that this information may be enhanced by EUSatCen (for example, risk assessment of over-flight of territories by uncontrolled objects tailored to civil contingency entities in Member States).

9.15 On data security the Minister continues that:

·  this is addressed through appropriate risk management structures, identified in Recital 21, and provided for in Article 9; and

·  the mechanisms for achieving this are well understood and already implemented at national level within Member States, which will be able to reflect this experience through the consortium and the formal management processes of the EUSatCen.

9.16 Next, on the issue of funding, the Minister says that:

·  a new legal structure was created under which interested Member States with necessary expertise/infrastructure could enter into a consortium to receive funding from the Commission;

·  funding would be allocated by the relevant funding programmes, such as Horizon 2020 and Copernicus, from within their current MFF allocations; and

·  a notional budget of €70 million (£57 million) has been estimated for the envisaged activities and will be limited by the allocations made from the contributing programmes that will benefit from the SST service.

9.17 The Minister also reports that the UK negotiating team has been successful in removing all references to an Internal Security Fund in the text, thereby avoiding involvement of Justice and Home Affairs and the potential triggering of a UK opt-in.

9.18 On the point regarding the use by the Commission of a Limité restriction on texts provided to us, the Minister says that this cross-cutting issue is being addressed separately by Cabinet Office Ministers.

9.19 Finally the Minister says:

    "As the House of Commons retains parliamentary scrutiny on this proposal, I am writing to bring you up to date on developments and to seek scrutiny clearance from you as we embark on the final phases of adoption of the text."

Conclusion

9.20 We thank the Minister for these clarifications and, having no more questions to ask, now clear the document.

9.21 However, we remain concerned at the use of Limité texts by the Council when acting as legislator. We repeat that a secretive approach to considering legislation hardly enhances democratic legitimacy. So we ask the Minister to confirm that he fulfilled our earlier request to convey this observation to the Presidency and the Commission and we look forward to hearing from Cabinet Office Ministers the Government's view on this matter.



38   (32660) 8693/11 + ADDs 1-6: see HC 428-xxvi (2010-12), chapter 1 (11 May 2011) and Gen Co Debs, European Committee C, 23 May 2011, cols. 3-14. Back

39   (34737) 6950/13: see HC 86-xxxviii (2012-13), chapter 3 (17 April 2013) and HC 83-iii (2013-14), chapter 4 (21 May 2013). Back

40   See (33597) 18918/11: HC 83-xxviii (2013-14), Chapter 1 (22 January 2014). Back

41   See headnote. Back


 
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Prepared 25 April 2014