CSST chief executive Steve Cotter said last week the Alexandra-based centre might no longer build the cubesats proposed in its original business plan, and that it was ``more economical and a better use of taxpayer funding'' to partner with existing providers rather than duplicate what was already available.
He also said CSST was re-evaluating its business plan, as much had changed in the space industry since its proposal was submitted.
The comments followed last week's announcement from CSST about a new partnership with space-to-cloud data analytics company Spire Global Inc, under which CSST would use Spire's Automatic Identification System (AIS) data, collected from its satellites.
CSST - which was awarded $14.7million through MBIE's Regional Research Institute initiative in 2016 - would use the AIS data across New Zealand and the Pacific Islands, in areas such as fishing, fleet monitoring and control, vessel tracking and collision avoidance, maritime security, cargo tracking, search and rescue operations and accident investigation, CSST operations director Rafael Kargren said.
Early proponents of CSST were philosophical about the news cubesats might no longer be built by CSST, saying any changes could be the reality of turning the CSST concept into a working model, although working party member Gary Kelliher said it was ``sad'' the centre might no longer build New Zealand's first satellites.
The MBIE was unable to comment by deadline following last week's announcements by CSST, but subsequently released a statement.
MBIE manager strategic investments Danette Olsen said significant market changes could mean some of the proposed methods of achieving CSST's objectives ``no longer make sense'', and MBIE expected the space centre ``to be agile and responsive to changing conditions''.
Ms Olsen said the MBIE's Regional Research Institute initiative, through which CSST received its government funding, ``seeks to maximise the unique business, technology and economic growth opportunities in our regions by establishing research centres that help build research and development intensity and lift innovation in key regional industries''.
Regional Research Institutes were operated as private, independently governed organisations, Ms Olsen said.
``In this case, CSST was established as a limited liability company that is owned by a trust and governed by a board of trustees. The funding the institute has received from MBIE is devolved funding, meaning how the institute best meets the obligations of its contract are at the discretion of CSST.
``As it has been noted, there have been significant market changes that mean some of the proposed methods of achieving CSST's objectives no longer make sense. We expect CSST to be agile and responsive to changing conditions.''
Ms Olsen said MBIE would ``work closely'' with CSST throughout the term of its contract, ``to ensure its business plan continues to represent the agreed objectives in its original proposal, as well as those of the Regional Research Institute initiative''.