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Department of Trade and Industry
London, U.K.

Tue, 27 May 2003

P/2003/310

Galileo Agreement means boost for UK Space Industry

The European Space Agency (ESA) has agreed the national funding
contributions for its share of the development and validation phase
of the Galileo programme. 

The UK Government will contribute 95.7 million Euros, which is the
same contribution as France, Germany and Italy. The investment could
create up to 1000 new jobs in the UK.

Galileo is the European programme to develop and operate its own
civil satellite system for navigation, positioning and timing
applications. It will offer long-term improvements to traffic
management systems for all forms of transport and in commercial,
industrial and other strategic areas. 

Secretary of State for Trade and Industry Patricia Hewitt has
welcomed the agreement:

"The Government's investment in Galileo will maintain UK influence
and industrial involvement in this satellite programme and the wider
exploitation of space technologies for the benefit of users and the
public. This investment, made by my Department and the Department for
Transport, allows UK industry to build on its leading edge expertise
in space technology and development, and to prepare it for later use
in existing and innovative applications of satellite navigation
technology. 

"The Government's investment has secured the same share as France,
Germany and Italy, and is likely to create around 1000 new high
technology jobs in the UK. As well as benefiting the UK's satellite
manufacturing companies, many of the jobs and investment
opportunities created will be in the smaller supply companies, and
leading edge research and development facilities. 

"However, our longer term objective is to place the UK at the
forefront of the wider economic and consumer benefits that will come
from establishing innovative new applications and services using
Galileo and other global navigation systems. This is where we hope
that the Pinpoint Faraday Partnership will play a vital role by
helping UK firms work with our best researchers to produce innovative
time, positioning and navigation products and services."

The Government will also be working with the Galileo Joint
Undertaking, other EU Member States and the private sector to ensure
that the deployment and operational phases of Galileo are funded by a
public private partnership (PPP), in order to achieve value for money
for the public sector. 

Notes to Editors:

Galileo

1. Galileo is a joint initiative of the European Community (EC) and
the European Space Agency (ESA). The development and validation phase
is estimated to cost 1.1 billion Euros of which half will be provided
by ESA through direct contributions from its Member States and half
by the European Union from its Trans-European networks budget. The
development and validation phase is expected to take four years
during which time it is expected that funding arrangements for the
deployment and operations of the system will be negotiated and agreed
through a public private partnership.

2. The EC is responsible for the political dimension and the high
level definition of requirements. The Transport Council has committed
550 million Euros from the Trans European Networks (TENs) budget. In
addition, the development of services to specifically exploit Galileo
is to receive 100 million Euros under the Sixth Framework Programme
of research, technology and development.

3. ESA's responsibilities cover the detailed definition, development
and in-orbit validation of the space segment and related ground
element. The ESA Ministerial Council agreed in principle at its 15
November 2001 meeting in Edinburgh to contribute 550 million Euros to
Galileo. This agreement was contingent on a positive decision from
the EC Transport Council, which was given at its March 2002 meeting.

4. When the ESA programme closed to subscriptions, Member States had
announced their willingness to subscribe up to 130 per cent of the
original proposed programme. This recognised the economic potential
offered by the programme. Like the UK, Germany, France and Italy made
bids to achieve 25 per cent of the work in the programme but as a
result of negotiations each will obtain 17.31 per cent, based on a
total contribution of 553 million Euros. 

5. The Transport Council in March 2002 also agreed to the
establishment of the Galileo Joint Undertaking (JU) to manage the
development and validation phase including the negotiations for the
public private partnership for the later phases. The founder members
of the JU are to be the EU and ESA. The ESA Council in finalising the
subscription issue has also agreed ESA participation in the JU and it
will now be formally established. 

Faraday Partnerships

1. Faraday Partnerships bring together leading researchers with firms
of all sizes working through two or more "core partner"
organisations -- such as a university and an independent research and
technology organisation, together with a number of companies across
the country.

2. The Partnerships enable companies to access high quality research
and the expertise of the industrial research organisations.  They
employ "technology translators" -- people who act as a link between
research and business, ensuring that good ideas are properly
developed and that researchers understand the potential that their
work offers in generating wealth in the future. 

3. Each Partnership receives underpinning support worth up to
L400,000 per year, usually from DTI, to put in place an industrially
focused management team; employ technology translators; offer
infrastructure support to allow PhD students to work in
non-university laboratories; and put in place industry clubs and
similar mechanisms to disseminate good practice.

4. The Pinpoint Faraday Partnership (originally known as the Global
Navigation Satellite Systems (GNSS) Applications Faraday Partnership)
award was announced on 5 September 2002 (Press Reference P/2002/560)
The core partner is the National Physical Laboratory (in
collaboration with several universities). Core funding will be
provided by DTI with research funding from EPSRC (Engineering and
Physical Sciences Research Council).

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