As The National exclusively reported earlier this week, rocket firm Orbex – which had been aiming to launch satellites from the Highlands – was forced to call in administrators after all fundraising, merger and acquisition opportunities fell through.
The firm was based in Forres, in the constituency of SNP MP Graham Leadbitter, who has now written to Business Secretary Peter Kyle asking why around £100 million in UK Government funding pledged to the company never materialised.
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Leadbitter noted that a European Space Agency document last year confirmed that €112m of €144m in UK Government funding, earmarked for the European Launcher Challenge (ELC) scheme, was still “to be distributed”.
As a result, Orbex received just €34.9m from the scheme – one-fifth of the €169m awarded to each of its rivals by European governments, Leadbitter said.
However, a UK Government spokesperson said that the funding had not been delivered to Orbex as it had failed to match public cash with private investment.
In his letter to Kyle, the SNP MP wrote: “I hope you’ll share my deep concern regarding the news that space launch company Orbex, headquartered in Forres in my constituency, is going into administration.
UK Business Secretary Peter Kyle
“It’s clear this development is linked, in no small-part, to the UK Government’s recent decision to withhold vital funding to the company that has played a critical role in the development of sovereign launch capabilities.
“I would be grateful if you would provide urgent clarity over why the decision was taken to withhold funds for Orbex, and what action the UK Government can take to support the company going forward, and the workers who are facing the very real threat of redundancy.
“Over 160 high-paying and highly skilled jobs are based at Orbex. In a small community like this one the wider economic impact on the local area and economy in my constituency cannot be understated.”
On Thursday, Leadbitter and Moray MSP Richard Lochhead – who is also the SNP’s Employment Minister – said that 20 space companies had made initial contact to register an interest in taking on Orbex’s assets.
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A UK Government spokesperson said: “The UK allocated the maximum possible amount of funding to Orbex as per European Space Agency rules and selection criteria. To access further funding the company needed to secure a matched level of private investment, which it was unable to do.
“We remain committed to supporting our dynamic space sector. The UK attracts some of the highest levels of private space investment in Europe, and we are home to over 1900 innovative space companies supporting tens of thousands of high-skilled jobs across the country.
“We recognise this will be a very worrying time for staff at Orbex. Space launch is a highly competitive sector, and it has always been the case that some companies will fail. We will be setting out more details about our plans for developing key national space capabilities, including launch, in due course.”