In the Budget, Treasury Minister Allan Bell extended the zero rate of corporate income tax to businesses involved in the space and satellite industry.

'I cannot stress enough the positive impact this news has had within the space industry, promoting the Island's good name and potential as a business jurisdiction. With this news the Isle of Man Government has taken a truly forward-looking approach to winning business for the Island,' said Mr Stott.

The Isle of Man already has a zero tax regime for a number of industries — including shipping, insurance and fund management — and is moving to a standard zero rate for business in 2006.

Within the space industry, the Island is looking to ultimately attract manufacturing and educational concerns.

Manx-born Mr Stott has wide experience in the space industry, including working for Nasa where his wife is an astronaut specialist.

Next month Mr Bell and Chief Financial Officer Mark Shimmin are to travel to New York and Houston to meet leaders in the field of satellite telecommunications and human space flight.

Mr Stott said he could not name the companies for commercial confidentiality reasons. 'However, I can say that they are all NYSE-listed Fortune 500 companies. This is a great example of the Manx government going the extra mile to win this business. Taking such a personal and hands-on approach does make a difference within the space community. Much like the Isle of Man, everyone knows each other in the space community. The very fact that the Island's government is making this effort has been noted and warmly welcomed.'

While in Houston, the Island representatives will meet Dr Franklin Chang-Diaz, Nasa Astronaut, and director of the Advanced Space Propulsion Laboratory (ASPL).

Mr Stott said a Manx company is close to securing a contract with the ASPL to supply high-tech materials to NASA for use in their new VASMIR Mars engine.

He said that despite tough competition the Island has a real chance of establishing itself in the space industry as a financial centre and a potential home for the industry. Increasing privatisation within the space industry will provide openings for the Island.

In the past three years the big three international governmental organisations working in space — IntelSat, Inmarsat, and Eutelsat — have privatised.

'National and regional satellite operators have engaged in a cut-throat round of consolidations to emerge as global satellite communications providers. Commercial remote sensing missions (basically commercial spy satellites] have been launched that now provide markets, farmers, government agencies and commodity brokers with daily pictures of crops, water tables, and even maps of cities for property developers. What was once purely the domain of governments is now a thriving marketplace.

'It is also a marketplace without a true home. The Island is a globally recognised centre of excellence for banking, insurance and for financial services. It is becoming a recognised centre of excellence for shipping and film-making and we now have an opportunity to also become a home to the fledgling new international space industry.'

The world's media tends to focus on government programmes, overlooking the far larger commercial effort under way in space.

'In 2002 the space industry contributed over $100 billion to the world's economy and that was considered by many a bad year for our industry. In comparison, that same year Hollywood contributed $9 billion to the world's economy.'

Mr Stott said the space industry was vital to daily life, with satellites providing a host of activities such as Sky TV, overseas phone calls, the internet and weather reports.

'Space technology impacts on us every day and adds true value to our lives. Space isn't just the science fiction of Buck Rogers or Flash Gordon any more,' he said.

There are 57 satellite operators in the world; eight major satellite manufacturers; three major launch vehicle (rocket) providers.

'It is a small marketplace with huge turnover and potential. Already the Island is home to world-renowned satellite operators and launch vehicle providers

Mr Stott stressed the initiative had to be viewed as a long-term project.

'This isn't going to happen overnight and we're not the only offshore jurisdictions to recognise the great potential of this industry; we're in hot competition with our fellow Crown dependencies and overseas territories for this business.

'We are in our own version of a "space race" with the other financial centres of the world to compete for this business. Fortunately the Manx government recognises this and is willing to act accordingly. The space industry is starting to look more closely at the Island. We are gaining a reputation for excellence in the space industry.

Mr Stott said the first step would be for the Island to establish itself as a domicile for the international partnerships, joint ventures and business interests of space companies.

'It fact this has already happened. Next will hopefully come corporate headquarters bringing new types of jobs and levels of expertise to our economy. Given the nature of the industry, along with these interests will come new high-tech jobs for the Island working in the field of satellite communications … a ripple effect much like that occurring now with the Island's film and shipping industries.'

The Manx government has arranged for the International Space University from Strasbourg to present a two-day course for representatives from the Island's business community in May. The ISU is the industry's leader in specialised space education for the most senior executives in the satellite industry and leaders of the world's space agencies, including NASA and the European Space Agency.

Mr Stott said that inviting the ISU to the Island sends out a strong message to the space community that the Island is serious. 'It also affords our people the chance to learn from the very best in the industry. The Island is unique in this ground-breaking approach and is most certainly the first jurisdiction to take advantage of this unique resource.

'This is a long-term project. We won't see the gains overnight. But with careful planning and execution we will hopefully see the benefits for our economy. The competition is stiff and very active, but the Island has much to offer. In my opinion we are hands down the best in the world in regard to space — and we're only getting better.

'We've heard much discussion in the international press about plans to return to the moon and to push on to Mars. It is the space industry that will work to make this happen in partnership with the world's space agencies. In addition to the $100 billion-a-year satellite industry, this new programme holds much promise.

'We have nothing to lose and everything to gain. We have the chance of positioning ourselves to play a meaningful role as a business jurisdiction in this new and growing industry.'

Mr Bell said he has been in discussion with a number of satellite-related business over the past 12 months.

'A major international company has recently been incorporated in the Island. And I have a number of American leads very interested. There is a big buzz in America about the space industry at the moment and I think there is an opportunity for us to see if we can get some new business and to help raise the Island's profile.

'We need to be innovative, we need to be creative, and we need to take chances if the Island is going to capitalise on opportunities which are coming up.'

Mr Bell said some people had scoffed when the Island first proposed establishing a film industry. In the last 12 months the Island's film industry has generated 21,000 bed nights for the hotel industry and nearly £13 million of local spend.

'We have got to be looking for new opportunities all the time — some will work and some won't, but we have got to keep trying.'