The translated heading is: "Great Britain Questions ESA Investments: Untapped Potential in Space Strategy
- The United Kingdom receives lower returns on its contributions compared to other countries.
- The British National Audit Office has expressed doubts about the effectiveness of investments in the ESA.
Eulerpool News·
The UK's National Audit Office (NAO) has cast doubt on the effectiveness of Britain's investments in the European Space Agency (ESA). Compared to France, Germany, and Italy, the United Kingdom has received lower returns on its contributions to the ESA over the past decade. In a comprehensive report, the NAO criticized the progress in implementing the national space strategy, which was introduced by the previous Conservative government in 2021. While the ESA provides British space companies and scientists with access to extensive space programs that would be hard to replicate nationally, the report noted that the UK has not yet received a proportionate number of contracts relative to its financial contributions.
In addition to the criticism of the returns from ESA membership, the NAO highlighted a lack of clarity and detail in the national space strategy. Three years after its unveiling, the UK Space Agency (UKSA) and the Department for Science, Innovation and Technology were still in the early stages of planning and developing the necessary capacities. This revives the debate over the value of ESA membership, especially after British companies were excluded from bidding for contracts related to the Galileo navigation services and the Copernicus Earth observation project following Brexit. Since January, British firms have been allowed to bid again for Copernicus contracts, but many in the space industry argue for a strong national program to accelerate growth in areas such as Earth observation and data analysis.
"We still do not have a major national project for the industry to focus on," said an experienced representative of the space industry. The ESA acts as a procurement agency for the EU but is an independent intergovernmental organization with 22 member states, including non-EU countries like the United Kingdom, Canada, and Norway. The UK is the fourth-largest contributor to the ESA, with about three-quarters of the UKSA's budget going into ESA programs. In 2022, the previous government pledged £1.84 billion in funding for the years 2023 to 2027. The ESA aims for member states to receive the equivalent of their financial contributions as contracts for industry and science, minus a small administrative fee.
A confidential report by the UKSA's executive committee found that between the last quarter of 2015 and February 2023, the UK received 93 pence for every pound invested. The NAO emphasized that the UKSA had taken steps to increase returns. By the end of 2022, the value had risen to 96 pence per pound, but British industry and science still do not fully benefit from the ESA contributions. France, Germany, and Italy had returns between 0.99 and 1.02. David Parker, until 2023 the Director of Human and Robotic Exploration at the ESA, told the Financial Times that the UK derived significantly more economic benefit from ESA membership than contract awards reflect. "The UK has a larger share of returns from scientific programs," Parker said. He attributed some shortfalls to shifts in the British industrial landscape but noted efforts to inform companies about opportunities and procedures. "It will go up again," he added.
The UKSA emphasized that it is working to improve returns, aiming for parity by the end of this year. "We are making good progress," stated the agency. Josef Aschbacher, ESA Director General, said at the Farnborough Air Show that the ESA is taking steps to give more energy to its UK-based centre for satellite applications and telecommunications.
EULERPOOL DATA & ANALYTICS