Budget cuts shoot down $1.2bn space plan

The $1.2bn National Space Mission for Earth Observation (NSMEO) was announced last year by the previous Morrison government and was to be led by the Adelaide-based Australian Space Agency.  Its closure is expected to cost about 30 jobs, including five in Adelaide, although any public servants will be redeployed.

A $1.2bn space program to design, build and launch four Australian satellites over the next decade has been scrapped by the Albanese government as it seeks to make budget savings. 

Despite axing the program, Industry Minister Ed Husie said “the Albanese government values the role our space sector plays”.

However, deputy premier Susan Close said it was “extremely unfortunate the prevailing economic conditions have resulted in the commonwealth cutting these important South Australian-based programs and we are disappointed with this decision”.

It is expected the federal government will save $452.4m over the next four years by ending the program. NSMEO was scheduled to launch four satellites between 2028 and 2033 and would have cost more than $1bn over its lifetime.

When the program was announced, the satellites were earmarked to add to the nation’s earth observation data and provide improved response to bushfires and floods, as well as adding to maritime surveillance capabilities and information available to the agricultural and mining sectors.

Then science and technology minister Melissa Price said “the information we get from Earth observation satellites is central to our everyday life”. The minister also predicted the program would generate 500 new jobs in its first four years and build a supplier network that would involve more than 100 companies.

The current government will now continue to rely on international partners to provide earth observation information. The NSMEO was to have its project management office based in Adelaide as part of the Australian Space Agency at Lot 14.

ADA chief executive Enrico Palermo said last year the NSMEO was a “unique opportunity” for Australia.

“The National Space Mission is a true milestone in Australia’s space history”, Mr Palermo said then.

Mr Palermo has predicted Australia’s space industry could triple in size to $12bn by 2030 but it’s unknown if this latest announcement will impact on that forecast.

Mr Palermo was not available for comment Wednesday 28 June 2023.

In its most recent budget, the Albanese government added $34.2m to the ASA budget. ”In our recent budget we placed The Australian Space Agency on sustainable financial footing,” Mr Husic said.

Mr Husic also said he would encourage space companies to apply for funding in technology, defence and transport through the $15bn National Reconstruction Fund and smaller companies to its $392m Industry Growth Program.

The program’s demise had been feared by many in the industry since last year when the Space Industry Association said national space policy had fallen into a “vacuum” as the Albanese government reviewed all spending in the sector.

By: Michael McGuire

From: Advertiser  29-6-2023 p.4