At first glance, why would an established, or entrepreneurial, state-of-the-art space or satellite business choose to base itself on a small island in the middle of the Irish Sea, some 30 miles off the UK mainland? With a population of around 84,000, boasting the worlds oldest continuous Parliament stretching back well over 1,033 years, the Isle of Man might seem an unlikely location for such a forward looking industry. However, with all due consideration to the past and long standing political and economic stability, its to the futureor more specifically, the skies abovewhere a growing portion of the islands versatile economy is now firmly focused.
In addition, recent international space industry reports note the Islands core focus is on satellite financing and innovation in space commerce. Others suggest that due to its commercial focus, via Island based companies such as Excalibur Almaz and Odyssey Moon, the Isle of Man is now the fifth nation most likely to return to the Moon.
At present, the Islands star is very much in the ascendancy, according to Tina Rawlinson, Director of Cavendish Trust (http://www.cavendishtrust.com), one of the Isle of Mans leading niche international trust service providers, with strong connections to the space and satellite sector. The Isle of Man is fast becoming the jurisdiction of choice for the establishment and administration of space and satellite companies, she said. This is an extremely space friendly environment where we also enjoy one of the highest standards of living in Europe.
The Company has partner status with ManSat (http://www.mansat.com), the privately run business approved by the Islands Government to handle orbital filings with the International Telecommunications Union (ITU) in Geneva on behalf of Isle of Man based or incorporated companies.
What makes the Isle of Man such an advantageous location for conducting space business? One reason is that the Isle of Man is recognized as a well-regulated, commercially focused jurisdiction, with a AAA rating from Standard and Poors and AA+ rated by Moodys. Furthermore, in todays shifting global climate, the political and economic stability offered by the Isle of Man, together with its renowned dedication to the Rule of Law, are also key considerations.
Yet, fundamental to the Islands appeal, is the pro-space stance of the Government, with its strong political commitment to developing space commerce. The Island has developed space- friendly legislation, which has helped create a strong base of space, aerospace and high tech industries. This is supported by a world class telecommunications infrastructure which has, in turn, encouraged the growth of excellent local telecoms support service providers, offering state-of-the-art hosting, IT and digital media.
Significantly, the Isle of Man was also the first jurisdiction in the world to offer a zero corporate tax rate to space and satellite businesses, plus a highly competitive insurance premium tax rate for the industry.
Additionally, the Government remains committed to the development of space law and finance. A regulatory level launch pad, if you will, with a core concept of neutrality in all areas, allowing competing space and satellite companies to all work from the Island without too many of the complications, real or imagined, that can be found in other jurisdictions.
Tim also emphasised that the Government was keen to provide financial incentives and grant aid for businesses that created new jobs on the island. Mr. Craine also stressed that the Isle of Man encouraged flexible employment laws which made it easy for Island based companies to use contract workerswhich might not necessarily be the case in other jurisdictions.
Annual growth of around 9 percent in the Islands space and satellite sector is being watched with a growing sense of achievement at ManSat, who are now handling an unprecedented number of inquiries from companies that are seeking orbital slots.
ManSat estimates that the financial advantages of flying a geostationary satellite via an Isle of Man orbital position, as opposed to one flagged in the U.S. or UK., are in excess of US$100m over the approximate life cycle of a satellite. When looking purely at the bottom line, thats a definite advantage the Isle of Man has to offer, in addition to its other regulatory and financial advantages.
Even despite current global economic uncertainty, Tina Rawlinson believes the Isle of Man can stay ahead of the curve, thanks to its favorable location status. The space and satellite industry is now recognised as being an increasingly important niche market for the Island, she said. With our advantageous tax regime, satellite companies can achieve significant savings by structuring the operations of group holding companies or subsidiaries in the Isle of Man, or by establishing R&D or manufacturing centres on the island.
The Isle of Mans unique approach to space activity allows it to punch above its weight in terms of global visibility in the space industry. [We] imagine other nations and jurisdictions will look to the Isle to replicate its success, the Report added. (http://www.futron.com/resources.xml)
In reference to the Futron study, ManSats Chris Stott said, It speaks volumes that such a highly respected international consultancy firm specialising in the space sector should have produced such a positive analysis of the Isle of Mans vibrant, diverse and rapidly growing space industry.
For a jurisdiction just 33 miles long and 13 miles wide, that also happens to be family friendly and enjoys low crime rates, the sky really does not appear to be the limit.