Mike Penning: To ask the Secretary of State for Trade and Industry what the nature is of his Department's contingent liabilities pertaining to the issue of licences to operators of satellites and other space objects; and if he will make a statement. [52571]
Barry Gardiner: Under UN Treaties, the Government are internationally responsible for activities in outer space carried on by its nationals, and assumes certain liabilities for damage caused to third parties as a result of those activities. The Department administers the Outer Space Act 1986, which requires that such space activities be licensed. Anyone who carries on a licensable activity gives an unlimited indemnity to the Government against claims. The Department seeks to secure indemnification in part by requiring £100 million insurance cover. If the insurance policy proved insufficient to cover a particular claim, the licensee would be required to indemnify the Government of the excess. However, if the licensee were unable to meet this, the Government would have to fund the remainder from its own resources. Hence, there is a contingent liability. |
