Industry Canada responds to Emerson space report, promises Space Policy Framework

Industry Canada has responded to the space-related recommendations of last year's Aerospace Advisory Council report with a suite of initiatives and changes aimed at putting the sector back on a firm footing after years of decline (R$, December 6/12). The actions include the creation of a Canadian Space Advisory Council led by Canadian Space Agency (CSA) president Walter Natynczyk, a DM-level Governance Committee on Space and a doubling of the CSA's Space Technologies Development Program (STDP) by FY15-16.

Perhaps most importantly, the government has completed its Space Policy Framework and has committed to release it publicly in early 2014. The framework is a successor to previous Long-Term Space Plans and will outline the government's strategic goals for its space activities in the form of 10-year, five-year and annual government-wide priorities.

"We're very pleased. (Industry Canada) minister (James) Moore's announcements addressed almost everything in the report," says Jim Quick, president and CEO of the Aerospace Industries Association of Canada. "This is a comprehensive response. The industry fell on hard times and (report author David) Emerson said there is an absolute urgency. If we don't act we will lose the industry, our reputation as a space leader and key national assets."

In line with its mandate that any recommendations be fiscally neutral, the Emerson report recommended that the CSA budget be stabilized "in real dollar terms for a period of 10 years" and that major space projects and initiatives be funded from multiple sources within government and beyond.

Industry Canada responded by committing to leave the CSA's budget "unchanged and at current levels" and that it will work to leverage existing programs to support the space industry. That leaves the door open to tap into the cost-shared Industrial Research Program of Defence R&D Canada and possibly access uncommitted funds of the Strategic Aerospace and Defence Initiative and align funding priorities with the granting councils and the National Research Council.

It's unclear what amount the government will peg the CSA's current budget level. According to the agency's Departmental Performance Report 2012-13, the CSA's base budget has been in decline since 2011 when it fell from $300 million to less than $270 million by FY14-15. However, CSA's actual spending is much higher due to $771 million for the construction of the Radarsat Constellation Mission.

The doubling of the STDP budget from $10 million to $20 million falls short of Emerson's recommendation to boost its budget by $10 million annually for three years running, but Quick says it's a welcome start after the CSA allowed its industry support programs to dwindle in recent years.

"There are government limitations at the moment. A balanced budget will give the government more leverage," says Quick. "This is absolutely good news."

Other actions include:

* the alignment of CSA procurement with "the broader review of defence procurement in response to Tom Jenkins' report to support economic opportunities ... as announced in Budget 2013";

* improved project oversight to finalize the scope, timelines and performance of projects earlier in the project definition phase. The CSA has already made changes to improve its project management process, which will be further enhanced with input from the new Space Advisory Board and Governance Committee on Space.

The creation of the Space Advisory Board is particularly noteworthy as it will include representatives from industry, academia and government. In conjunction with the implementation of the other changes, it's hoped that the combination of consensus and alignment wil produce policies that will boost the size and competitive capacity of industry.

"We're optimistic we will continue to work with government to drive the space industry," says Quick. "There have been some difficult times (but) this is turning a corner."

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