SNP MP Graham Leadbitter has written to the UK Government demanding answers after space technology firm Orbex, based in Forres, announced its intention to appoint administrators.
The Moray West, Nairn and Strathspey MP said the move follows a decision by the UK Government to withhold nearly £100 million in funding from the company, which employs around 160 people.
An European Space Agency document published last year confirmed that €112 million of €144 million in UK Government funding earmarked for the European Launcher Challenge scheme was still to be distributed.
As a result, Orbex received €34.9 million from the scheme, compared with €169 million awarded to each of its European rivals by their respective governments.
In a letter to the Secretary of State for Business and Trade, Peter Kyle, Mr Leadbitter called for urgent clarity on the decision and its consequences for the workforce.
“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.
“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.
“I’m happy to meet or discuss this over the phone at your earliest convenience.
“I would appreciate a response as soon as possible given the significant worry many of my constituents will be experiencing.”
Mr Leadbitter said the situation raises wider questions about support for the UK space sector.
“To have the capabilities Orbex was developing here in Scotland is representative of the wide range of talents and skills that exist here, as well as the potential of our country.
“But for these companies to grow and achieve their mission, one that’s critical to the UK’s national and economic security, they require public investment.
“That support has shamefully not materialised from the UK government who have consistently talked up a big game about their support for the sovereign launch capabilities being developed by companies like Orbex, but failed to put their money where their mouth is.
“Now, as a result, we have a company on the brink, and 160 highly skilled people left fearing for their jobs.
“In a community the size of Forres the impact that will have on the local economy can’t be understated.
“This also sends a broader message to companies that, under Labour, the UK isn’t worth investing in, and that their efforts and investment will never be met with enthusiasm from Westminster.
“And it sends an equally grim message to people who dream of working in the space sector, that to do so they’ll need to take their skills and expertise abroad to countries that, unlike the UK, actually take the growing opportunities presented to us seriously.”
The development leaves significant uncertainty for workers in Forres and raises fresh debate about the future of sovereign launch capability in the UK.
