Bills Digest No. 152 2000-01
Space Activities Amendment (Bilateral Agreement) Bill 2001
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Space Activities Amendment (Bilateral Agreement) Bill
2001
Date Introduced: 6 June 2001
House: House of Representatives
Portfolio: Industry, Science and Resources
Commencement: Royal Assent
To permit the operation of an inter-governmental
agreement between the Government of the Russian Federation and the Commonwealth
that would facilitate the import of Russian space technologies for possible
launch from Australia.
On
23 May 2001 in Canberra, representatives of the Commonwealth and the Russian
State signed the Agreement between the Government of Australia and
the Government of the Russian Federation on Cooperation in the Field of
the Exploration and Use of Outer Space for Peaceful Purposes. The
signing followed a long saga of various proposals for the launch of foreign
space rockets with satellite payloads from a number of proposed local
facilities.
The import of sophisticated, foreign launch vehicle and
other space-related technologies involves the agreement between governments
for its release and access control, especially given the sensitive basis
of some of the technologies involved. The key provisions include protection
of intellectual and physical property and information.
The Agreement also provides for the exemption of imported
specialised space-related goods and equipment from an Australian duty
of up to 5 per cent. Note that the Sales Tax Legislation Amendment
Bill (No.1) 1998 passed through Parliament in early 1999. This involved
an exemption for space objects such as any satellites launched from Australia.
Australia had already maintained a space agreement with
the former Soviet Union. That Agreement between the Government of the
Union of the Soviet Socialist Republics and the Government of Australia
on Cooperation in the Field of Exploration and the Use of Outer Space
for Peaceful Purposes of 1 December 1987 is replaced by the new Agreement.
It is not clear whether any significant programs emerged or succeeded
under the previous agreement.
The Bill amends the Space Activities Act 1998
to provide for new regulations to give effect to the provisions of the
Agreement. Regulations made under section 79A should enable the Minister
to nominate organisations to carry out specialised activities.
Item 4 of Schedule 1 of the Bill inserts
a new Part 5A in the Space Activities Act 1998, the principal
effect of which is to allow the making of regulations to give effect to
the provisions of specified space cooperation agreements, in this case
the new Agreement.
Item 6 of Schedule 1 of the Bill inserts
a new Schedule 6 in the Space Activities Act 1998 that contains
an English text version of the inter-governmental agreement with Russia.
The effect of the legislation will involve an amendment
to the Customs Tariff Act 1995, with the Minister to authorise
project concessions under guidelines to be developed. This would occur
through the Customs Tariff Proposal No. 5 (2001) during Winter 2001.
A recent Euroconsult 2000 report estimates that the US$34.6
billion launch market for 657 satellites, over this decade, includes a
61 per cent allocation to commercial operators with 42 per cent open to
tender.(1) However, according to a Canberra-based analyst,
the projected supply of commercial space launches far exceeds estimates
of demand over the decade.(2) Asia-Pacific Aerospace Consultants
believes that the oversupply approaches 200 per cent. As well, two major
launch vehicle operators have made large bulk purchases of their own vehicles
to lower costs. It is hard then to see where new launch market opportunities
lie.
The most advanced launch proponent appears to be Asia
Pacific Space Centre with its proposal to launch Russian vehicles from
Christmas Island and plans to commence construction of the space centre
in September 2001. The company completed an Environmental Impact Statement
for the proposed space facility and was given "Major Project Facilitation"
status by the Australian Government. A company with the same managing
director and street address, Soft Star Pty Ltd purchased the Christmas
Island resort as a complementary element of the satellite launching facility
proposed by the Asia Pacific Space Centre.
Meanwhile, the time for the presentation of the report
of the Joint Standing Committee on the National Capital and External Territories
on the sale of the Christmas Island resort has been further extended to
9 August 2001. On 8 November 2000, the following matters were referred
to the Joint Standing Committee on the National Capital and External Territories
for inquiry and report by 5 April 2001:
- the development and implementation of the tender process followed
in the sale of the Christmas Island resort; and
- the outcome of the tender process, the current status of the resort
and proposals for the resort's future development.
The Department of Industry, Science and Resources has
separately prepared a draft Space Activities Regulations 2001 for launch
vehicle licenses and launch permits.
- Villian, R., 'To reach the stars', Asia-Pacific Satellite - April
2001, pp. 12-16.
- Grose, S., 'Expert warns of oversupply in satellite-launch market',
The Canberra Times, 13-03-01, p. 15.
Matthew L. James
21 June 2001
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
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