Labor at odds over National Space Mission for Earth Observation funding cuts

SA Deputy Premier Susan Close has criticised the Albanese government’s space program cuts, amid an industry fallout over a shelved $66m Australian Space Park precinct.

Anthony Albanese and Ed Husic. Labor’s NASA-backed NSMEO satellite program, axed in the budget, would have delivered four locally designed and built satellites.

South Australian Deputy Premier Susan Close has criticised the ­Albanese government’s space program cuts as “disappointing” amid an industry fallout over the shelving of a $66m Australian Space Park precinct and the axing of a $1.2bn sovereign satellite program.

The Defence and Space Industries Minister, who was appointed ALP vice-president at last month’s national conference in Brisbane, said the Malinauskas government was committed to ensuring South Australia remained the nation’s premier space hub.

Ms Close, who with US officials was alerted to the secret budget axing of the National Space Mission for Earth Observation hours before it was announced on June 29, said the state government would maintain space industry investment because it is “an enabler of critical technologies in the ­national interest”.

Amid industry fears the Malinauskas government had sunk the Australian Space Park in its recent budget, Ms Close said they were instead establishing a common user facility at Lot Fourteen, where the Australian Space Agency is based.

She revealed that repurposing the state’s commitment was “not subject to joint funding by the state and federal governments and the federal government decision to withdraw its funding”.

In the March 2022 Coalition federal budget two-months before the election, the Morrison government announced a $20m grant supporting a satellite manufacturing hub at the space park.

“The Australian government’s decision to cut funding from important space programs this year has been disappointing,” Ms Close told The Australian.

“Space remains a priority future industry in South Australia, and support from the state government remains steadfast with $33m committed to support the sector’s continued growth in this year’s state budget.

“This is the largest South Australian government commitment to space since the South Australian Space Industry Centre was established. The South Australian government is committed to investing in programs that develop and grow innovative ideas and space technologies.”

SA Deputy Premier Susan Close. Picture: NCA NewsWire / Naomi Jellicoe

A spokesman for Industry Minister Ed Husic said that “following the finalisation of contract negotiations earlier this year, the Australian Space Park project no longer aligned with MMI Collaboration Stream program guidelines and consequently funding was withdrawn”.

SA opposition defence and space industries spokesman Stephen Patterson said it was a “cruel blow to the space industry”.

“We feel now we’ll be left with a much smaller $20m common user facility instead of what was a groundbreaking $66m Australian Space Park. It puts at risk the ­thousands of jobs it was going to create,” Mr Patterson said.

“Because the Malinauskas government and Susan Close are not standing up for South Australia to the federal Labor government’s cuts to space, South Australia is now at risk of losing its position as the nation’s space capital.”

The NASA-backed NSMEO satellite program, axed in the budget, would have delivered four locally designed and built satellites.

Mr Patterson, a former trade and investment minister under Steven Marshall, said they were “hugely disappointed with the federal government’s $77m massive cuts” to space programs and the NSMEO decision.

“Susan Close needs to be fighting hard for the space industry and convincing her federal counterparts to continue to fund space. Because not only does it have an impact on the South Australian space industry, it’s got an impact more broadly on sovereign capability and Australian space capability,” he said.

Ms Close said the withdrawal of two of the original prospective tenants for the Australian Space Park resulted in the “state government deciding to relocate the common user facility to Lot Fourteen”.

“We continue to work with the remaining tenants to support their manufacturing needs. Growing space manufacturing capability remains a priority for the South Australian government,” she said.

“Our efforts to establish a new, local space manufacturing facility at a different site is a strong show of support in our space industry and reaffirms our $20m commitment to the sector’s future growth.

“The common user facility will support the expansion of space manufacturing, and the acceleration of local innovation into real world commercial technologies.”