My Lords, I thank the noble Lord, Lord McNally, for raising this important issue. This clause sets out that a regulator and persons listed in subsection (2) are not to be held liable for their actions or omissions in relation to spaceflight activities or associated activities.
The primary concern of the Bill is to secure safety. As regulators of spaceflight activities, we will take all steps possible to ensure that the risks to the public are as low as reasonably practicable and that all spaceflight activities are carried out as safely as possible. However, given the nature of the activities, the regulator cannot guarantee that all the risks can be eliminated. I highlight that without such a clause, a regulator may be reluctant to take any action in relation to spaceflight activities—for example, licensing that activity—because of concerns that they will be subject to claims, in negligence or breach of statutory duty, in the event of loss or damage arising from regulated spaceflight and associated activities. This would inevitably affect the growth of the sector.
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It should be stressed that the clause is not a free pass for a regulator and those listed in subsection (2). In cases of wilful misconduct, the protection afforded by this clause will not apply and the regulator and those listed people will be liable for their actions. This brings me to Amendment 37, which would include the words “or gross negligence” in subsection (3). That would limit the protection provided by the clause so that the regulator and others listed would be held liable in cases of both wilful misconduct and gross negligence.
As the noble Lord, Lord McNally, observed, this issue was also considered by the Science and Technology Committee in the other place. In its report, it recommended adding an exception for gross negligence. I take this opportunity to thank that committee for its invaluable work in scrutinising the draft Bill. However, public policy requires that public authorities, including regulatory authorities, act independently and without threat of litigation. I reiterate that shrinking this protection may mean that regulators will be reluctant to license space activities, which would undoubtedly affect the market.
The clause does not mean that no one is held accountable if things go wrong. Ultimately, spaceflight operators are responsible for the safety of their operation and activities and are therefore liable under the Bill for any injury or damage caused as a result. That is why the operator is held strictly liable; it means that a claimant who suffers injury or damage can bring a claim against the operator without having to prove fault. That is a key part of our policy—that the uninvolved general public have easy recourse to compensation.
We need to strike a balance here because this is a new activity for which safety cannot be guaranteed. Our view is that a gross negligence test would be inappropriate, and that the wilful misconduct test is more appropriate as it protects a regulator who is acting in good faith. Quite rightly, though, we are not proposing to protect a regulator that intentionally does something wrong. On those grounds, I commend the clause and ask the noble Lord to withdraw Amendment 37.