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GOVERNMENT SET FOR COSTLY DEFENCE OF SPACE AMBITIONS
The Manx Government is squaring up to do battle with Bermuda over the rights to a potentially lucrative satellite slot.
The dispute is being moderated by the UK's Office of Communications (Ofcom) but the Island's Communications Commission will this week be asking Tynwald for 500,000 to 'promote and defend the space industry in the Isle of Man'.
It is believed that the money will cover potential legal costs.
The government said the satellite slot being contested is one of its most important. It has accused Bermuda of seeking to undermine the Island's satellite filing serving the North American market which the Manx-based firm Mansat filed two years ago.
The Island's determination to mount a robust defence of its space and satellite industry was spelt out by Chief Minister Donald Gelling at a briefing for members of Tynwald last week.
He said: 'Business related to space and satellite activity is a multimillion-pound industry for the Isle of Man and the potential for the future is huge. The Island has already introduced a zero income tax rate for this type of business and is serious about developing its position as a significant player in the field.
'We have no choice but to resist this late attempt by Bermuda to muscle in on our slot if we are to protect the credibility of the Island and its space industry.'
Not surprisingly the Bermudian government takes a different view. It claims that the Isle of Man has objected to its attempts to modify one of the three slots allocated by the United Nations in 1983.
In a press statement it said it was in ongoing discussions with the UK Government, including the Foreign and Commonwealth Office and Ofcom.
'This is in order to further Bermuda's efforts in developing the satellite slots by modifying one of its three slots.
During this process, Bermuda has become aware that the Isle of Man is seeking to develop a slot which is nearby to, and overlaps with, the Bermudian slot to be modified. The Isle of Man has objected to Bermuda's proposal to modify its slot.'
Bermuda calculates that it could net an annual revenue of $850 million a year, although the high maintenance costs should result in typical annual profits of closer to $5 million.
Anthony Hewitt of the Island's Communications Commission said the Manx government had identified the space sector as a key growth area and it was in the Island's interest to contest Bermuda's claims.
The Manx government has targeted the space industry as a key growth area.
In last year's Budget it introduced zero corporate tax rate for companies which produce components for satellites and other space-related products, in advance of its 2006 target for zero company tax.
Treasury Minister Allan Bell said: 'It's part of a strategy to attract high-value business to the Island. Already some components for Nasa space probes are produced here.'
Cains Advocates is involved in the space industry and this year was elected to the International Institute of Space Law.
Andrew Corlett, managing director of Cains Advocates, said: 'Space law is now an increasingly important and interesting niche area for the firm. There is no doubt the Isle of Man is starting to become favourably noticed by the world's space community.'
He hopes the space industry will develop in the Island like the film industry. 'As with the film industry, it will take time for a viable cluster of businesses to develop here. The signs are, however, favourable.'
About a year ago a Manx government delegation, including Mr Bell, visited Houston and New York to meet a number of key players in the space and satellite industry.
Mr Bell has described the commercial space industry as a 'small but exeedingly promising area for the Island'.
The commercial space industry had a turnover of $105 billion in 2002. If the Island can attract even a fraction of that the economic benefits for the Manx economy would be significant.
The Island has already established a track record in the space industry through leading companies such as Sea Launch, Inmarsat and Loral.
The Manx government has worked closely with ManSat in its applications to the International Telecommuni
-cations Union for the geostationary orbital slots.
Ian Jarritt, chairman of ManStar, the Onchan-based subsidiary of ManSat, said the Isle of Man is ideally situated to access satellites over the Atlantic and Indian oceans serving a significant part of the global telecoms market.
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Thursday 09 February 2012
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