Joyce StevenOUTER SPACE AND HIGH-ALTITUDE ACTIVITIES BILLFirst ReadingHon STEVEN JOYCE (Minister of Science and Innovation): I move That the Outer Space and High-altitude Activities Bill be now read a first time. I nominate the Foreign Affairs Defence and Trade Committee to consider this bill. This bill has been a lot of work over a short space of time but it is now completely ready for lift-off. It creates a modern regulatory environment to enable the development of a space industry in New Zealand and to ensure its safe and secure operation. It will enable New Zealand to meet our international obligations relating to space activities and space technology and it provides for the management of certain high-altitude activities that take place from New Zealand. Space and the use of space are already immensely important to our daily lives. Satellites enable a range of critical services and infrastructure that we use every day including banking telecommunications internet navigation disaster response and national security. The costs of accessing space are falling. As the technology continues to improve those costs will continue to fall and the quality of spacecraft and satellites will improve. These factors are driving increased user demand for a range of satellite-enabled services. Rocket Lab a company founded by a New Zealander Peter Beck is making the most of these market opportunities. The company's mission is to provide a dedicated low-cost and frequent space launch service for the growing small-satellite industry. New Zealand has certain advantages that make it an attractive location for space launches. We have clear seas and skies access to valuable launch angles a skilled workforce and an innovation friendly business environment. These advantages are key factors behind Rocket Lab's decision to locate its launch business in New Zealand. There is an opportunity to build New Zealand's capacity and expertise across a broad spectrum of space and high-altitude activities from rocket technology to the use of satellites to perform functions that benefit our economy environment and society. The development of a space industry will attract offshore talent and investment into New Zealand as well as provide local opportunities for highly skilled young New Zealanders. There will also be benefits for regional economies associated with increased visitors and even international space tourists attending rocket launches. The intent of the bill is to facilitate a space industry while managing the risks and meeting our international obligations. Space activities create significant opportunities for economic development and innovation but they also create risks to public safety national security and the environment. The bill establishes a licensing regime for launch activities payloads launch facilities and high-altitude vehicles. The licensing regime will enable the appropriate safeguards to be put in place to manage safety and security. However highly prescriptive provisions in the primary legislation are likely to suppress innovation and stifle the development of the space industry so to avoid this the bill establishes a decision-making framework that enables licence conditions to be tailored to particular risks of proposed activities. The bill will enable New Zealand to implement its international obligations associated with space activities and space technologies including the Technology Safeguards Agreement (TSA) which we have recently signed with the US. The TSA enables commercial entities in New Zealand to import launch technology and satellites from the US. The TSA creates obligations on the Government to protect sensitive technology and it also protects New Zealand's national interests. New Zealand will be able to exercise a veto over any launch should the Government determine that the launch is contrary to our domestic laws. To support New Zealand's regulation of space activities the Government has agreed to become party to the UN Convention on Registration of Objects Launched into Outer Space. That convention requires the registration of objects launched into orbit or outer space. The bill provides the mechanisms required to manage Crown liability risk associated with launches. It does this by including a provision that authorises the responsible Minister to require an indemnity against the Crown's liability and to set licence conditions that require the applicant to take out insurance for a specified amount. The bill also establishes a legal framework to govern high-altitude activities that originate from this country. High-altitude vehicles are being deployed to perform similar functions to satellites in outer space. By including high-altitude vehicles and their payloads within this regime these activities will be regulated consistently with other space activities as appropriate. The ability to provide a safe and secure environment for space activities is a necessary precondition for the growth of the industry in New Zealand and will ensure that we attract the types of businesses that we seek to locate here. Consistent with this the bill establishes a new model for managing national security risk comprising a consultation process and a certification process which will act as a veto in cases when there is a significant national security risk identified. The bill also establishes offences to support the bill with penalties that apply to comparable conduct under criminal law. Futureproofing the bill is a key policy and design objective. The bill provides flexibility to respond to advances in space technology applications and related market demand. Space technologies are evolving rapidly. There are for example new hybrid vehicles that are both aircraft and spacecraft. To deal with these advances in technology the bill contains powers to make regulations prescribing things or classes of things that are or are not launch vehicles payloads high-altitude vehicles or launch facilities. This will futureproof the regime and allow for regulations that require only one licence when dual functions of a particular technology might otherwise require two. These regulation-making powers are subject to significant safeguards including consultation requirements. The bill also includes a requirement for a review of the legislation 3 years after its enactment. This will provide an opportunity to adjust elements as required. The introduction of the Outer Space and High-altitude Activities Bill signals that New Zealand is ready to join the global space economy. A modern regulatory environment that responds to innovation and enables high-technology industries is a critical part of building a diversified high-value economy. The emerging New Zealand space industry aligns with the innovation stream of the Government's Business Growth Agenda in developing New Zealand as a hub for high-value research and development - intensive businesses. We have never had so many opportunities to create and sell high-quality products and services around the world. It is innovation that creates those products and services and that helps Kiwi companies compete and win on the world stage. We have hundreds and hundreds of high-value exporters making high-quality niche products. Whether it is medtech biotech agritech ICT high-value manufacturing or now space technologies it is innovation that is driving the diversification in New Zealand's economy and creating a prosperous future for all of us. Having the right high-quality regulations for this diversification is very important. This is a great bill. I now commend this bill to the House.