ASICC PRESENTATION ON THE AUSTRALIAN SPACE INDUSTRY
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1 ASICC PRESENTATION ON THE AUSTRALIAN SPACE INDUSTRY To Parliamentary Secretary The Honourable Warren Entsch Thursday, 24th June 1999 Canberra ASICC Presentation - 24th June
2 OVERVIEW ASICC... Page 3 GIO Space. Page 4 Auspace. Page 5 Commercial Space Industry: Present Page 6 Commercial Space Industry: The Near Future.. Page 7 What capabilities does Australia have?. Page 8 Realistic Opportunities for Australia.. Page 9 How can the Government help?.. Page 10 Regulations - Fees. Page 11 GST.. Page 12 US Regulations... Page 13 Moon Treaty. Page 14 International Political Role Page 15 Government as Customer for Australian Space Goods... Page 16 ASICC Presentation - 24th June
3 AUSTRALIAN SPACE INDUSTRY CHAMBER OF COMMERCE (ASICC) Chamber of Commerce formed to promote Australian Space Industry. National Organisation: Chapters in most major cities. Well established as industry voice for Australian space. Members come from broad range of industries; Telecommunications, Finance, Manufacturing, Insurance, Legal, Accounting, Consulting, Launch Providers, Remote Sensing, Universities, Military, Government. Growing number of overseas members interested in Australian Space Activities. Active Role with Australian Government on behalf of Space. Space Activities Act 1998, Regulations to the Act. ASICC Presentation - 24th June
4 GIO SPACE Division of GIO Insurance Ltd, providing satellite insurance since 1980 s. Largest Space Risk Underwriter in Asia-Pacific Region. One of Top Ten Space Risk Underwriters globally. Revenue of $200 million per annum from space insurance. (Among top 3 Australian earners of space derived income with Telstra, Optus). Virtually all income sourced overseas representing $200 million of export income for Australia from Space Activities. ASICC Presentation - 24th June
5 AUSPACE Subsidiary of Matra Marconi Space (UK) since Established in 1982 as indigenous Space Engineering Company. Expertise in Engineering and Systems Design, Project Management, Research & Development of Space Hardware and Systems. Prime Contractor / Program Manager: Australian Space Telescope flown on Space Shuttle, Along Track Scanning Radiometer 1 and 2, Airborne Multispectral Scanners, Atmospheric Pressure Sensor and others. Defence Projects: Defence Antenna Relocation Project, Milsatcom Feasibility Study, Defence Mobile Communications Network, Auspace GPS Receiver for Glidebomb. Core Industry Member of Co-operative Research Centre for Satellite Systems Developing Fedsat. Core participant of Australian Resource Information and Environment Satellite (ARIES). ASICC Presentation - 24th June
6 COMMERCIAL SPACE INDUSTRY: PRESENT Commercial spending on space exceeded government spending in Telecommunications a mature market with constantly newer systems. Imaging from Space becoming commercially viable. Remote data collection is emerging new field: monitoring remote assets (water levels, pipelines, vehicles). Services: Insurance, Finance, Consulting, Legal, are mature and globally focussed. ASICC Presentation - 24th June
7 COMMERCIAL SPACE INDUSTRY: THE NEAR FUTURE New ways to utilise unique vantage points and physical environment of space driven by business ventures. Lower cost to space is key to business opportunities. Bigger Rockets: Ariane 4, Delta 4, Angara Reusable Launch Vehicles (RLV s): Kistler, Pioneer Rocketplane, Rotary Rocket, Kelly Aerospace. Manufacture and research in-orbit. Commercial Research and Manufacture on Space Station. In-orbit manufacturing facilities (Hyperpure crystals). Mining Moon and Asteroids. Lunar Sample return. SpaceDev. Power generation from space. Financial community recognition of viability of space enables the business environment and endeavours in space. ASICC Presentation - 24th June
8 WHAT CAPABILITIES DOES AUSTRALIA HAVE? Component Manufacture: Phillips, Mitec, Codan, Centre for Photovoltaics. Satellite Sub System Engineering and Manufacture: Auspace, British Aerospace, DSTO Telecommunications: Telstra, Optus Telemetry and Tracking: Telstra, Optus, NASA, Lockheed Martin Launch Providers: Kistler, United Launch Services, Asia Pacific Space Centre Space System Design and Research: Signal Processing and Research Institute, CSIRO Radiophysics, TUNRA, CRC Satellite Systems Local Satellite Programs: Fedsat, Aries, Bluesat Space Imaging: Apogee, ACRES, Spot Image Local Launch Programs: Australian Space Research Institute (ASRI) Services: Consulting, Finance, Insurance, Legal ASICC Presentation - 24th June
9 REALISTIC OPPORTUNITIES FOR AUSTRALIA Launch and re-entry market: Australia has ideal geography and infrastructure for RLV s. Services: Finance, Insurance, Legal, Consulting are world class and already operate globally. Opportunity to play lead role for regional space programs: weather, imaging, launch, technology transfer. Instrumentation Manufacture: Australia well recognised for development of sophisticated space instruments. Tracking systems and ground support: Australian expertise can support regional requirements for ground stations and computer processing. Space Mining: Australian world class mining skills can be used in this new field. ASICC Presentation - 24th June
10 HOW CAN GOVERNMENT HELP? Build supportive environment for Australian Space: Legislative Framework to support space Ensure Australian business environment at least as good as international competitors Issues: Taxes, Red Tape, Fees Be politically active internationally to support Australian Space Issues: US Regulations, Moon Treaty, Liability Convention, Intergovernment Agreements Government Support as Customer for Australian Space Goods. ASICC Presentation - 24th June
11 REGULATIONS - FEES Space Activities Act 1998 will set fees for Space Activities. Industry Supports Reasonable Fee Structure, however Excessive fees could kill the fledgling space industry. Fees on Full-Cost recovery for SLASO unlikely to be sustainable for emerging industry in early years. ASICC recommends the Government set fees based on time involved in processing application rather than for full cost recovery of SLASO. ASICC Presentation - 24th June
12 GST In June 1998: Commonwealth Government granted exemption from Wholesale Sales Tax for satellites, launch vehicles and other goods imported to Australia to be launched into space. The policy rationale was to remove a severe commercial disadvantage to Australian launches not faced by it s international competitors. A 10% GST will have a similar effect as Wholesale Sales Tax, thus re-create the commercial disadvantage. This disadvantage will kill the Australian launch industry. ASICC recommends that the Government retain its original intention and exempt satellites, launch vehicles and launch services from GST. ASICC Presentation - 24th June
13 US REGULATIONS March 1999: As a result of alleged Chinese espionage the US Government placed all commercial satellites on the Munitions List subject to International Traffic in Arms Regulations (ITAR). This requires State and Defence Departments clearance for export of rockets, satellites or information about those items. Australia, along with NATO countries should get special (relaxed) export controls. This is not happening. This lack of timely information is affecting Australian Space subcontractors and may soon affect the space insurance industry. This will also affect Australia s ability to participate in the design effort for the Kistler project. ASICC recommends the Government demand the preferential rights for export controls to which Australia is entitled. ASICC Presentation - 24th June
14 MOON TREATY Australia is one of the 8 countries that has signed the UN Moon Treaty. This treaty forbids property rights and ownership of goods in space. Australia s signatory status to this Treaty is impeding Australian access to new space manufacturing and mining ventures. Australia is well placed to participate in these ventures but companies will not take the legal risk of losing their goods from space due to the Moon Treaty. ASICC recommends that Government either revise the Moon Treaty or withdraw from it to allow Australian participation in new space mining ventures. ASICC Presentation - 24th June
15 INTERNATIONAL POLITCAL ROLE Australia could be leader in a Regional Space Group. Intergovernment Agreements for Space Activities often facilitate business ventures in Space. The UN Treaties on Space were not written for the commercial environment. Australia could play a lead role in revising these for today s environment. ASICC recommends that the government take a more active role in supporting Australian Space internationally. ASICC Presentation - 24th June
16 GOVERNMENT AS CUSTOMER FOR AUSTRALIAN SPACE GOODS Australian Government is purchaser of space products. Little purchased from Australia at the moment. Capability exists for major elements to be produced in Australia. Australia has technology edge and world class capability in certain niches, Hyperspectral Instrumentation, State of Art Data Handling Electronics. Government should consider focussing its buying power to help Australian industry develop these niches. Coherent policy to promote Australian participation in emerging space arena is needed. ASICC Presentation - 24th June
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