Brexit threat to space and aerospace sectors Brexit threat to space and aerospace sectors
Page 1 of 4 123 ... LastLast
Posts 1 to 10 of 32
  1. #1

    Better than AtW

    sasguru - scorchio!


    Join Date
    Jul 2005
    Posts
    36,631

    Default Brexit threat to space and aerospace sectors

    https://www.ft.com/content/2f0e7a6e-...4-ab04428977f9*

    Britain's essential role in global aerospace may come under pressure from Brexit



    *FT article reprinted here if you dont have access:

    "The European Commission is demanding the right to cancel existing contracts without penalty if a supplier is no longer based in an
    EU member state.

    It is also insisting that any supplier ejected from the programme should repay all costs to the EU of finding a replacement,
    according to companies that have been asked to agree to the conditions.

    Europe’s global satellite navigation system is an EU-funded project, managed by the European Space Agency, with work shared out
    between member states. To retain access to Galileo after Brexit, the UK would have to negotiate a new security relationship with the EU.

    However, the break clause has raised concerns in government and industry circles because it in effect rules out UK access to work
    on Europe’s global navigation system even while it remains an EU member. Contracts under the Galileo programme are designed to run
    for several years but under the new terms could be cancelled with immediate effect at any time after 2019, when the UK is set to leave
    the EU.

    The clause “makes it quite difficult for a company in the UK to contemplate bidding”, said one supplier who has been asked to agree
    to the new terms. The risks presented by a potential ejection from an existing contract were unacceptable, he said. His comments were
    echoed by other sector players.

    The clauses have been presented as a condition for winning work on the final eight satellites to complete the Galileo constellation,
    a tender that is already overdue and could be worth €400m to UK companies. Jo Johnson, UK science minister, recently met EU commissioner
    Elzbieta Bienkowska to voice the government’s concern over the implications of the proposed new conditions.

    The clause now threatens to spur a flight of high-tech space companies from the UK, jeopardising the British government’s ambition to
    take 10 per cent of the £400bn a year global space market.

    Executives from two space companies said they were considering whether to relocate their UK activities to EU member states, or to
    choose different partners in a bid to ensure eligibility for future procurement. The tender for the next generation of satellites
    is set to be launched later this year, while the industry estimates that Galileo-related services and applications could be worth
    up to €6bn by 2025.


    “We may be forced to consider withdrawing from our UK market operations,” said a senior executive from a UK-based space systems company.

    “We will be looking at . . . who is best placed to participate,” said another. “If you have the option not to do work from the UK
    this gives you a reason to think that is safer.”

    A commission spokesman said that “similar” termination clauses have been standard since 2003, and insisted that the new clause was
    “not prepared in view of Brexit”.

    However both UK companies and government officials see its recent introduction as a move to squeeze them out in favour of continental
    rivals, who do not face the same prospect of suddenly becoming ineligible.

    “It feels like the UK is being targeted,” said a UK government official. “We have been fighting to stay involved in Galileo whereas
    some European partners are working to push us out.”

    Richard Peckham, head of UKspace, the trade association, said: “Since the UK government has so far failed to make any clear statement
    of intent or even a wish to remain in these important EU space programmes, it is not surprising that the EU is cautious about UK
    industry participation.”

    The majority of Galileo’s existing satellites have been provided by a consortium of the UK’s SSTL, a subsidiary of Airbus which
    integrates the payload on the constellation’s spacecraft, and Germany’s OHB. Other companies with UK interests that could be
    affected include Qinetiq, CGI, Airbus and Scisys.

    People familiar with the EU’s position said the clause was aimed at protecting classified information, for example in the event
    of a UK contractor being acquired by a company from a non-EU country such as China.

    Galileo’s navigation services include a heavily encrypted, jam-resistant capability designed for government use that is reserved
    for EU member states and where UK industry has had a significant role. However, without a security agreement dictating the
    relationship between a post-Brexit UK and the EU, British companies could not be involved in work that touched on classified
    information, one person with knowledge of the situation said.

    “The issue for the moment appears to be the absence of agreements on security,” the person said. The consequences of the current
    uncertainty were not good for either the Galileo programme or the UK, he said. “The commission may be forced . . .
     not to accept UK companies. It was always clear there would be a price to pay for Brexit and this is the price.”
    Last edited by sasguru; 13th April 2017 at 13:13.
    Hard Brexit now!
    #prayfornodeal

  2. #2

    My post count is Majestic

    vetran has reached the peak. Play again?

    vetran's Avatar
    Join Date
    Jul 2005
    Location
    Come Friendly Bombs
    Posts
    35,426

    Default

    oh goody can we privatise any EU owned businesses after Brexit?

    You want to be a part of this organisation?
    "If you didn't do anything that wasn't good for you it would be a very dull life. What are you gonna do? Everything that is pleasant in life is dangerous."

    I want to see the hand of history on his collar.

  3. #3

    Better than AtW

    sasguru - scorchio!


    Join Date
    Jul 2005
    Posts
    36,631

    Default

    Quote Originally Posted by vetran View Post
    oh goody can we privatise any EU owned businesses after Brexit?

    You want to be a part of this organisation?
    Richard Peckham, head of UKspace, the trade association, said: “Since the UK government has so far failed to make any clear statement
    of intent or even a wish to remain in these important EU space programmes, it is not surprising that the EU is cautious about UK
    industry participation."

    "People familiar with the EU’s position said the clause was aimed at protecting classified information, for example in the event
    of a UK contractor being acquired by a company from a non-EU country such as China.

    Galileo’s navigation services include a heavily encrypted, jam-resistant capability designed for government use that is reserved
    for EU member states and where UK industry has had a significant role. However, without a security agreement dictating the
    relationship between a post-Brexit UK and the EU, British companies could not be involved in work that touched on classified
    information, one person with knowledge of the situation said."


    HTH, BIDI.
    Hard Brexit now!
    #prayfornodeal

  4. #4

    Contractor Among Contractors

    tomtomagain is NOT a disguised employee


    Join Date
    Nov 2012
    Posts
    1,967

    Default

    “The issue for the moment appears to be the absence of agreements on security,”
    .... hardly surprising since negotiations haven't begun in earnest.

    More BREXIT Non-News from the usual suspects.

  5. #5

    My post count is Majestic

    vetran has reached the peak. Play again?

    vetran's Avatar
    Join Date
    Jul 2005
    Location
    Come Friendly Bombs
    Posts
    35,426

    Default

    https://www.theguardian.com/politics...erms-of-brexit

    EU leaders have said there will be no talks on Britain’s future relationship with the bloc until the UK government makes “sufficient progress” on the Brexit divorce, including settling its bills and citizens’ rights.

    “Once, and only once we have achieved sufficient progress on the withdrawal, can we discuss the framework for our future relationship,” said Donald Tusk, the European council president. “Starting parallel talks will not happen.”

    Speaking as the EU’s draft negotiating guidelines were sent to national capitals, Tusk said the EU27 were united. Talks would be “difficult, complex and sometimes confrontational,” he said, but the bloc would not seek to punish Britain. “Brexit itself is already punitive enough,” he said.

    Which part of the EU wants to screw us don't you understand?

    Lets hope Mr Peckham learns to keep his mouth shut when the grown ups are talking.
    "If you didn't do anything that wasn't good for you it would be a very dull life. What are you gonna do? Everything that is pleasant in life is dangerous."

    I want to see the hand of history on his collar.

  6. #6

    I Am Legend

    BrilloPad has reached the peak. Play again?


    Join Date
    Aug 2006
    Posts
    108,497

    Default

    Britain's essential role in global aerospace

    Exactly. They can't do without us.
    Fight HMRC now! Help sue HMRC individual officers/government ministers for malfeasance in office. Visit https://www.loanchargejustice.com/ and scroll to the bottom of the page to donate.

  7. #7

    Fingers like lightning

    motoukenin has more data than eek

    motoukenin's Avatar
    Join Date
    Aug 2005
    Posts
    528

    Default

    Quote Originally Posted by sasguru View Post
    https://www.ft.com/content/2f0e7a6e-...4-ab04428977f9*

    Britain's essential role in global aerospace may come under pressure from Brexit



    *FT article reprinted here if you dont have access:

    "The European Commission is demanding the right to cancel existing contracts without penalty if a supplier is no longer based in an
    EU member state.

    It is also insisting that any supplier ejected from the programme should repay all costs to the EU of finding a replacement,
    according to companies that have been asked to agree to the conditions.

    Europe’s global satellite navigation system is an EU-funded project, managed by the European Space Agency, with work shared out
    between member states. To retain access to Galileo after Brexit, the UK would have to negotiate a new security relationship with the EU.

    However, the break clause has raised concerns in government and industry circles because it in effect rules out UK access to work
    on Europe’s global navigation system even while it remains an EU member. Contracts under the Galileo programme are designed to run
    for several years but under the new terms could be cancelled with immediate effect at any time after 2019, when the UK is set to leave
    the EU.

    The clause “makes it quite difficult for a company in the UK to contemplate bidding”, said one supplier who has been asked to agree
    to the new terms. The risks presented by a potential ejection from an existing contract were unacceptable, he said. His comments were
    echoed by other sector players.

    The clauses have been presented as a condition for winning work on the final eight satellites to complete the Galileo constellation,
    a tender that is already overdue and could be worth €400m to UK companies. Jo Johnson, UK science minister, recently met EU commissioner
    Elzbieta Bienkowska to voice the government’s concern over the implications of the proposed new conditions.

    The clause now threatens to spur a flight of high-tech space companies from the UK, jeopardising the British government’s ambition to
    take 10 per cent of the £400bn a year global space market.

    Executives from two space companies said they were considering whether to relocate their UK activities to EU member states, or to
    choose different partners in a bid to ensure eligibility for future procurement. The tender for the next generation of satellites
    is set to be launched later this year, while the industry estimates that Galileo-related services and applications could be worth
    up to €6bn by 2025.


    “We may be forced to consider withdrawing from our UK market operations,” said a senior executive from a UK-based space systems company.

    “We will be looking at . . . who is best placed to participate,” said another. “If you have the option not to do work from the UK
    this gives you a reason to think that is safer.”

    A commission spokesman said that “similar” termination clauses have been standard since 2003, and insisted that the new clause was
    “not prepared in view of Brexit”.

    However both UK companies and government officials see its recent introduction as a move to squeeze them out in favour of continental
    rivals, who do not face the same prospect of suddenly becoming ineligible.

    “It feels like the UK is being targeted,” said a UK government official. “We have been fighting to stay involved in Galileo whereas
    some European partners are working to push us out.”

    Richard Peckham, head of UKspace, the trade association, said: “Since the UK government has so far failed to make any clear statement
    of intent or even a wish to remain in these important EU space programmes, it is not surprising that the EU is cautious about UK
    industry participation.”

    The majority of Galileo’s existing satellites have been provided by a consortium of the UK’s SSTL, a subsidiary of Airbus which
    integrates the payload on the constellation’s spacecraft, and Germany’s OHB. Other companies with UK interests that could be
    affected include Qinetiq, CGI, Airbus and Scisys.

    People familiar with the EU’s position said the clause was aimed at protecting classified information, for example in the event
    of a UK contractor being acquired by a company from a non-EU country such as China.

    Galileo’s navigation services include a heavily encrypted, jam-resistant capability designed for government use that is reserved
    for EU member states and where UK industry has had a significant role. However, without a security agreement dictating the
    relationship between a post-Brexit UK and the EU, British companies could not be involved in work that touched on classified
    information, one person with knowledge of the situation said.

    “The issue for the moment appears to be the absence of agreements on security,” the person said. The consequences of the current
    uncertainty were not good for either the Galileo programme or the UK, he said. “The commission may be forced . . .
     not to accept UK companies. It was always clear there would be a price to pay for Brexit and this is the price.”
    Just another example of UK infrastructure falling apart due to Brexit bad planning, I read a post on here recently about Ryanair telling us that they would have to suspend services due to open skies policy concerns as well.

    Of course your going to get responses such as "This guy wont know what hes talking about" same people you know the ones that also said the same for Michael O Leary, despite the fact that he's a billionaire and has run one of the biggest airlines successfully in Europe for many years.

    Hilarious really

  8. #8

    Better than AtW

    sasguru - scorchio!


    Join Date
    Jul 2005
    Posts
    36,631

    Default

    Quote Originally Posted by motoukenin View Post
    Just another example of UK infrastructure falling apart due to Brexit bad planning, I read a post on here recently about Ryanair telling us that they would have to suspend services due to open skies policy concerns as well.

    Of course your going to get responses such as "This guy wont know what hes talking about" same people you know the ones that also said the same for Michael O Leary, despite the fact that he's a billionaire and has run one of the biggest airlines successfully in Europe for many years.

    Hilarious really
    He's only the head of the aerospace trade body, you know, nowhere as near as qualified to comment on the matter as vetran (sic) who is not at all a misinformed, poorly-educated mediocrity with no accomplishments to his name whatsoever
    Hard Brexit now!
    #prayfornodeal

  9. #9

    Fingers like lightning

    motoukenin has more data than eek

    motoukenin's Avatar
    Join Date
    Aug 2005
    Posts
    528

    Default

    Quote Originally Posted by sasguru View Post
    He's only the head of the aerospace trade body, you know, nowhere as near as qualified to comment on the matter as vetran (sic) who is not at all a misinformed, poorly-educated mediocrity with no accomplishments to his name whatsoever
    I was a bit surprised at vetrans response to keeping his mouth shut, lets hope after Brexit we dont find Mr Peckham in vetrans garage tied to a chair and gagged

    Good job we are not in the UK while this unfolds, sitting on the sidelines watching free speech being censored is kinda scarey.
    Last edited by motoukenin; 13th April 2017 at 15:12.

  10. #10

    My post count is Majestic

    AtW is always on top

    AtW's Avatar
    Join Date
    Jul 2005
    Posts
    55,505

    Default

    If EU does not bend to May's will, then UK will switch to Putens GLONASS!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •