A satellite-reading antennae is seen at a satellite ground receiving station in Inuvik, Northwest Territories in this undated handout photo. Years of federal bureaucratic delays may cost the North millions of dollars of investment in an emerging high-tech industry, businessmen and observers say. THE CANADIAN PRESS/Handout, Kongsberg Satellite Services

‘We’re quite frustrated:’ Red tape threatens growing Arctic space industry

Years of federal bureaucratic delays may cost the North millions of dollars of investment in an emerging high-tech industry

Years of federal bureaucratic delay may cost the North millions of dollars in investment in an emerging high-tech industry.

A Norwegian company has been waiting since 2016 for Ottawa to grant an operating licence for a satellite ground receiving station in Inuvik, N.W.T. The delay has limited services the company can provide to increasingly restive clients and its partner is considering moving.

“We’re quite frustrated with the pace of the Canadian bureaucracy,” said Rolf Skatteboe, president of Norway-based Kongsberg Satellite Services, or KSAT.

Inuvik, on the N.W.T.’s northern tip, is considered a prime location for receiving stations for earth observation satellites. The first station was built there in the mid-2000s by the federal government for RADARSAT, its own earth observation satellite.

Since then, such satellites have become privatized. A 2017 industry report estimated global revenues from earth observation satellites at $100 billion a year, growing at 11 per cent.

Inuvik got into the game in 2015, when KSAT came to town.

KSAT had won a contract from the European Space Agency to receive data from Sentinel satellites, the agency’s premier environmental monitoring program. The company needed receiving stations to complement its installations in Norway’s Svalbard area.

“We looked for a place in Alaska, but since we knew there was ongoing activity in Inuvik, we decided to support the satellite business there,” Skatteboe said.

“It also was part of our decision that Canada was an associate member of the European Space Agency, so we thought it was a good match.”

Related: Elon launches Tesla into space

KSAT — with partner Planet based in California — has seven satellite-reading antennas in Inuvik and plans for three more, for a total investment of $50 million.

For reasons including national security, satellite receiving stations must be federally licenced under the Remote Sensing Space Systems Act.

But a report from the McGill Institute of Air and Space Law says that legislation, written when only governments launched satellites, has become outdated.

“This industry is really evolving very quickly,” said Aram Kerkonian, who helped write the report. “The commercialization of space is the direction we’re headed now.”

The act is too restrictive, says the report. It recommends licences be streamlined for ground stations that receive data and send it out untouched. It also says Global Affairs Canada staff on the file are severely under-resourced.

“We spoke with the regulators and it was their position that the resources just weren’t there,” Kerkonian said.

Despite interventions from the Norwegian ambassador and pleas to Global Affairs Minister Chrystia Freeland, the licences still aren’t there.

The government is doing its best, said an email from spokeswoman Amy Mills.

“We are aware that this is an important issue both to the company and to the local community, and we work to complete the review process as quickly as possible.”

The company, which can’t operate its antennas without licences, is losing patience.

“Europe is losing data from its flagship series of satellites,” Skatteboe said. ”Valuable data is just being lost.

“We’ve had stations in 21 countries around the world and we’ve never seen anything like this before.”

The head of Planet has suggested his company may just move elsewhere.

Tom Zubko, who owns the company that maintains and operates the receiving station, said the industry keeps six people on the payroll in a city that has seen little economic activity since energy exploration ended. Construction would add more jobs, he said.

“It’s kind of put a big stop to potential developments,” Zubko said. ”It’s very difficult for us now, as a business, to go to other space-based satellite companies and convince them Canada is a good place to put facilities.”

Kerkonian agreed.

“The long-term consequences are that companies that want to do really great and innovative things go to other jurisdictions where it’s clear how they’re allowed to do things and they get their licences on time.”

Skatteboe’s shaking head is almost audible over the phone line from Norway.

“We underestimated the Canadian bureaucracy.”

Related: B.C. space sleuth discovers NASA satellite not a ‘piece of space junk’

Related: China’s defunct space lab hurtling toward Earth for re-entry

Bob Weber, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

B.C. chiefs show solidarity with Wet’suwet’en hereditary chiefs

Chiefs from around B.C. outside the Coastal GasLink pipeline route in Smithers show support.

December windstorms led to record ferry cancellations

Baileys for breakfast? It may not be what the doctor ordered, but… Continue reading

RCMP to review actions at Wet’suwet’en pipeline protest camps

Senior Mountie says he hopes protests will be peaceful following deal with hereditary chiefs

On the Wing: Christmas Bird Count #4 — Skidegate Inlet

By Margo Hearne The marine forecast read “winds northwest 15 to 25… Continue reading

Haida Gwaii mountain biking gets in gear

The frost was gone, but the iced puddles on Mac Blo Road… Continue reading

B.C. chiefs show solidarity with Wet’suwet’en hereditary chiefs

Chiefs from around B.C. outside the Coastal GasLink pipeline route in Smithers show support.

B.C. chief says they didn’t give up rights for gas pipeline to be built

Hereditary chief: no elected band council or Crown authority has jurisdiction over Wet’suwet’en land

Condo rental bans may be on way out with B.C. empty home tax

Many exemptions to tax, but annual declarations required

UPDATE: B.C. boy, aunt missing for three days

The pair are missing from Kamloops

Daredevil changes game plan to jump broken White Rock pier

Brooke Colby tells council daredevil event would help boost waterfront business

Liberal bows out of byelection after singling out Jagmeet Singh’s race

Karen Wang says she made comments online that referenced Singh’s cultural background

Truck hauling compressed gas for ‘virtual pipeline’ crashes on B.C. highway

Driver charged and highway closed for nine hours - containers did not rupture

Canucks rookie Elias Pettersson ‘feeling good’ after knee injury

Pettersson said he wasn’t feeling any pain during Wednesday’s skate

Most Read