Mr. Chair and members of the committee, thank you very much for inviting me today.
I'd like to introduce Mr. Steven Shrybman, our legal counsel, who is prepared to provide you with information and take your questions regarding our legal opinion on the Remote Sensing Space Systems Act and the conflict with U.S. law should Radarsat-2 be purchased by a corporation subject to U.S. law.
We have long expressed at the Rideau Institute our concerns about the proposed sale of the MDA space division to Alliant Techsystems, or ATK, and we have similarly expressed our support for Industry Minister Prentice's decision to not approve the deal under the Investment Canada Act. In our view, the government is moving in the right direction.
However, we've also underscored the need for the government to address the long-standing lack of a clear direction for Canada's engagement and use of space. What we need now, maybe more than ever, is a national space policy.
Now that the deal is dead, or at least barely moving, the government needs to assure the industry, the scientists, and the engineers working in the industry that Canadians cherish our space capability and will make a commitment to see it flourish.
In 2005 the Canadian space industry generated over $2.5 billion in overall revenues, of which 50% stemmed from exports, a testimony to Canada's international recognition as a reliable and sought-after space partner.
Globally, space is a $100-billion market worldwide, growing at nearly 7% yearly. The space sector is a proven catalyst, enabler, and driver for innovation, knowledge, state-of-the-art technology, and the development and delivery of cost-effective services. Yet Canada's investment in space, in civilian space in particular, is declining. According to Athena Global, between 2000 and 2004, as expressed as a percentage of GDP, Canada's investment in civilian space declined by 10%. Meanwhile, in the U.K., for instance, their investments in space increased by 25%.
Currently, there is a fragmented approach by different ministries and departments to the role of space-based systems in meeting their respective mandates. There is an urgent need to pull these various interests together under a coordinated and coherent framework. Such an approach would help the Government of Canada focus on developing space technologies and programs useful for implementing a wide range of government policies, make a more cost-effective use of federally appointed budgets, and favour an integrated Canadian policy-making approach.
By the way, 2007 marked the 40th anniversary of the entry into force of the outer space treaty. Ratified by 90 countries, the treaty has enabled the peaceful uses and exploration of space and has contributed to maintaining international peace and security.
Space technologies provide a critical infrastructure to the military, and today, space remains the only environment where no weapons have yet been placed. In order to ensure that space remains safe and secure for all space players, Canada should continue to advocate the non-weaponization of space, as well as strengthening the outer space treaty. We view this priority as part of a national space policy for both domestic policy and our representations internationally.
The adoption of a Canadian space policy based on the peaceful exploration of space would enable the government to achieve numerous objectives, such as developing space programs and technologies that serve Canada's public policy objectives; ensuring and protecting the safety and security of Canadians, the Canadian Forces, and Canada; and promoting a competitive space industry and providing economic leadership.
The time has come for Canada to consider space as a whole and to comprehensively address these issues, ranging from national security and the non-weaponization of space to providing critical infrastructure and promoting our industry.
Our recommendation would be that the Department of Foreign Affairs, and possibly even this committee, should structure a public consultation process to initiate engagement of Canadians in developing a new national space policy. This could include online consultations, regional hearings, and expert studies looking at the various aspects of space. The foreign affairs committee could prepare its own report to contribute to a government process, along with other affected committees such as industry and defence.
What's needed now is the political commitment to space as an area of important national priority.
I turn now to Mr. Shrybman to provide remarks on the legal study.