International telecommunications experts have been predicting for some years that satellite-borne telecommunications could be the fastest growing sector of telecommunications trade over the next 10 years.

Recently, space industry analysts Teal Group estimated that between 1997 and 2006, the world will see the launch of a further 273 geostationary satellites and 1062 low Earth orbiting satellites.

Australia's legislation which was promised by the ruling Liberal Party late last year was drawn up by the Space Policy Unit of the Federal Department of Industry Science and Tourism.

The proposed ambit of the bill which was recently circulated to local space industry groups and private companies for comment, places upon commercial spacecraft launchers and satellite owners liability for any damages caused by the craft during their life-cycle.

The bill is deemed necessary by the Government because of the trend world wide towards commercial purposes space craft launches compared to mainly government-funded launches in the first 40 years of space exploration.

Under various UN treaties to which Australia is a signatory, launching countries have liability for spacecraft-related damage incidents.

Launching countries' liabilities are mainly spelled out in the Outer Space Treaty which says states such as Australia "shall bear international responsibility for national activities in outer space" and "the activities of non-governmental entities shall require authorisation and continuing supervision by the appropriate state".

The treaty adds that each country that "launches or procures a launch" and each state from "whose territory or facility an object is launched is internationally liable for damage" to another treaty signatory country.

The liability provisions of the treaty have in the recent past frustrated some space agencies from participating in commercial space launches.

For instance, the European Space Agency which operates the Ariane space launch service recently knocked back a contract to launch a satellite for the Iridium global telecommunications project when it determined the satellite will directly pass over densely populated London.

The planned legislation has been drawn up because of increasing interest in Australian facilities by local and international companies as commercial spacecraft sites and the realisation by Australian and other telecommunications companies that provision of satellite-borne services will be increasingly sought by their customers.

The legislation consists of six key parts;

• An explanation of the legislation's objectives and confirms that it binds the Commonwealth, covers Australia's external territories from Christmas Island to Antarctica and places offences under the legislation within the federal criminal code
• Regulates space activities associated with Australian facilities and entities including the granting of launch permits and the conditions of operations for launch permits
• Granting the relevant Minister the power to grant launch certificate exemptions under specified conditions
• Specifies the insurance and other financial requirement imposed by the legislation on persons who are granted launch permits or certificates of exemption for the launch of space craft
• Outlines the liability for damages caused by space objects including the payment of compensation and the third party liability of damage caused to other man-made space objects
• Civil penalties for breaches of the legislation and provision for the application of the legislation to any pre-existing agreement for a space launch.

The launch licensing process consists of three steps;

• obtaining a space licence,
• operations approval
• launch permit.

A space licence will be granted to an operator after the Government has approved the launch site on environmental and infrastructure grounds and the proposed space craft is deemed safe.

An operations approval will be granted after Government approval of worker safety matters, emergency preparedness, environmental management and monitoring systems and incident investigation arrangements.

For a launch permit to be issued, an operator will have to assure the federal Government that appropriate insurance is in place, licence fees have been paid, payloads contain no hazardous materials and the agreement by the country of origin or ownership to register payloads as set out in the UN's Registration Convention.

Passage of the legislation which is not expected to be opposed by the federal Opposition is expected to be immediately proclaimed and become applicable to three planned space projects;

• Use of the Woomera space facility in South Australia later this year to launch the K-I reusable space launch vehicle by Kistler Aerospace which in March won project environmental approval.
• The possible setting up of an Asia-Pacific space centre on the near-equatorial Christmas Island which proposes to use Russian-made Soyuz space craft for commercial tasks.
• The proposed siting of a space facility near Gladstone Queensland of a project proposed by United Launch Systems for a space lift facility using Russian-made Unity rockets.

Elio Grohovaz director of the Australian government's Space Policy Unit told the Australian Space Development Conference in Sydney July 28, that the space regulatory legislation had been developed to "regulate satellite launch activities to a degree which will not unduly hamper the commercial viability of projects but neverthless ensure that Australia's international obligations are met and that domestic safety issues are covered".