Australia said on Friday it had abandoned a billion-dollar plan to develop a series of space satellites as it sought to cut costs amid the economic downturn and cost of living crisis. The $1.2 billion (US$770 million) National Earth Observation Space Mission was announced just last year and has been hailed as an important link in the development of Australia’s space industry.

The aim of the program was to design, build and operate four satellites to be launched between 2028 and 2033 to collect Earth observation data.

This data helps authorities predict the weather, respond to natural disasters and manage the environment. But the country’s centre-left government has said the plan will be shelved due to a “budget fix”, leaving Australia dependent on Earth data from overseas partners.

Industry and Science Minister Ed Husick told public broadcaster ABC on Friday that prioritizing “broader environmental issues” while tackling inflation means “hard decisions”.

“If I don’t cut a billion in there, I have to find it elsewhere in the portfolio,” he said.

“There are other ways we can build capacity – we’re definitely interested in that. We just have to make a decision about it.”

The Australian government has promised to balance the budget this year despite sluggish growth and a steady rise in defense spending. The Australian Space Industry Association said the decision to cancel the satellite program was “short-sighted”.

“This will undermine the Albanian government’s climate, defence, STEM, advanced manufacturing and technology affairs agenda,” the Space Australia lobby group said. said.