Golden age in space?
February 2016 - For an economy still struggling to establish high-value adding industries, space technologies, including those relating to small satellites, provide a promising potential for new advanced technology enterprises.
In fact, back in 1998, the Australian Government legislated the Space Activities Act 1998, believing that we were about to develop a large commercial launch industry. The Act's primary purpose was to set the scene for a commercial launch facility on Australian soil.
But this has never eventuated.
Instead, the Act was primarily used to issue overseas launch certificates to providers of commercial telecommunications satellite services.
Times have changed, though, and while Australia's endeavours in space are still heavily reliant on the public purse, the Government believes there is now a growing interest from private investors in commercial space activities.
Emerging technologies, such as small satellites and reusable launch systems, have opened a space market to smaller enterprises and research institutions.
The question is, though: Do Australia's legislative arrangements still appropriately balance between supporting new emerging commercial opportunities in space and Australia's international obligations. And the answer to this won't come easy as the space regulatory framework is complex and space-related regulations must consider many diverse and often conflicting issues.
It is also worthwhile noting that under international law Australia has unlimited liability for damage caused by an Australian space object - and that is ultimately the Australian taxpayer.
In October last year, the Australian Government commissioned a review to assess this, and on 24 February in released an Issues Paper to provide some background information. It also invited the public to comment on the review until 30 April 2016.
Of course, Australia is not the only country recognising the emerging commercial possibilities - far from it. In fact, compared to many other countries we have a less active space industry.
Consequently, competition in space is increasing, as are concerns about the impact on space environment.
Nearly 300 satellites were launched in 2014. Half of these satellites were small in size - less than 10kg - and these typically have a relatively short life, which means they are likely to soon add to the space debris.
Emerging issues such as space debris are currently examined by global regulators, including the including the United Nations Committee on the Peaceful Uses of Outer Space (UNCOPUOS) and the United Nations Office for Outer Space Affairs
(The problem is also the focus of the $20 million Cooperative Research Centre for Space Environment Management.)
Nevertheless, the race in space is on, also as there is a general recognition that public investment in space research should eventually translate into commercial opportunities. However, the Issues Paper details a number of challenges for Australia to be successful in this, which are here sketched in brief:
- Regulatory hurdles - in light of the current growth of global space activities, environmental regulations are likely to tighten in order to protect the space environment.
- Accessing global supply chains - In 2013 the global space economy generated over US$250 billion in revenue. But Australia's space technologies are just emerging and lack well-established competitive strength in the Australian economy.
- Financing - Space activities are high-risk activities, with high investments costs, high initial capital costs, while potential profits are often relatively low in the short term.
- Skills - Space start-ups are often established by individuals with low levels of experience or expertise in business, and need to source specialist skills that are in high demand in related sectors.
The potential risks associated with space activities are significant and as mentioned above, Australia has unlimited liability for damages caused by an Australian space object. Under current legislation, that risk is partially offset by certain requirements that businesses share this risk.
Whether and how much the government should indemnify space enterprises against potential losses is a complex issue, though, and it will require to weigh up the risks and potential benefits for Australia.