There is a massive potential to benefit from growth in the business of space. Photo / Trevor Mahlmann
The country will for the first time have a Minister for Space under the new National-led Government.
Cabinet Minister Judith Collins will take responsibility for this portfolio, in addition to also having responsibility for technology.
Businessman Kevin Jenkins, previously a founding board member at Aerospace Auckland, tells The Front Page podcast he wasn’t surprised at all to see the National Party appoint a minister to this role.
“Mr [Christopher] Luxon, the new Prime Minister, announced in October that if they became Government, they were going to appoint a Minister for Space,” says Jenkins.
“At the same time, the National Party also announced some space policies that included things like the notion of an annual Prime Minister’s Space Prize for the top student in aerospace-related subjects, fast-tracking for high-skilled migrants and possibly establishing some dedicated testing zones for space.”
In terms of Collins being appointed to the role, Jenkins notes that it is quite common internationally to see the portfolios of tech and space come together under the responsibilities of a single Minister, as is the case in Canada, the United States, Australia and South Korea.
Jenkins says the growing importance of space comes down to the economic value this sector can deliver if developed appropriately.
“The world’s our oyster,” he says.
“In 2019, the space sector in New Zealand was estimated to directly contribute around $900 million in GDP and more than 5000 jobs in New Zealand. Indirectly, it supported another $790m and about another 7000 jobs.”
Jenkins says that based on global averages, average annual GDP growth in the space sector has been rising by about 5 to 10 per cent annually.
“If you apply that to New Zealand, then you’re talking about doubling the New Zealand space sector by 2030. And globally, the numbers are already quite amazing. Revenue in the space sector is estimated at around $550 billion and is expected to reach close to $800b in five years.”
While there is growth in many tech businesses, Aotearoa has a rare advantage when it comes to space.
“We’re one of only 11 countries with launch-to-orbit capability. Just think about that. How many countries are there in the world? More than 200? We’re one of 11 that launch to orbit. We’ve also achieved the world’s first successful launch from a private site with Rocket Lab. And in 2022 New Zealand launched the fourth most rockets in the world, only behind the United States, China and Russia. We have some genuine advantages, and this isn’t just a fluke.”
So what will it take to actually capitalise on those advantages? What potential hiccups could we face? And are we taking the risks of climate change and space junk seriously enough?
Listen to the full episode of the podcast for a rundown on this fascinating growth area.
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. It is presented by Damien Venuto, an Auckland-based journalist with a background in business reporting who joined the Herald in 2017.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.
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