Rights of the Sovereign and the Duchy of Cornwall Bill [HL]
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Lord Wallace of Saltaire (LD)
My Lords, I have it in command from Her Majesty the Queen and His Royal Highness the Prince of Wales to acquaint the House that they, having been informed of the purport of the Rights of the Sovereign and the Duchy of Cornwall Bill [HL], have consented to place their prerogative and interests, so far as they are affected by the Bill, at the disposal of Parliament for the purpose of the Bill.
Lord Berkeley (Lab)
My Lords, I am very grateful for the Minister’s statement, which means that I can now proceed.
Before I get into the substance of the Bill, noble Lords might be interested to hear that I found out recently that an ancestor of mine, the third Earl of Berkeley, who was later the First Lord of the Admiralty, was a leading member of something called the Kit-Cat Club. I do not know how many noble Lords know about the Kit-Cat Club but in the early 18th century it was one of those organisations—largely a Whig one—which were united in their belief in the authority of Parliament over the monarchy. One has to consider how much has changed.
This Bill proposes comparatively small changes to the relationship between the monarchy and Parliament, and perhaps starts the process of what I hope will be quite a long discussion over the coming years. There are three clauses in the Bill. The first one amends the Sovereign Grant Act 2011 in respect of royal travel. This is a serious issue because there is a question over how many royals and royal duties should receive taxpayer-funded travel, as well as the scrutiny that Parliament has over these arrangements. I have been following this for some years, as noble Lords will probably know, and have noted that Parliament gets less and less detail of how many journeys there are by air and rail and how much they cost.
I noted that Prince Andrew flew to Jeddah for a funeral, chartering his own aircraft at a cost of £86,000 to the public purse, when the return fare for two people, first class, would cost four grand. Is there an argument for having your own plane to go to a funeral when there is a scheduled direct flight? At the other extreme, Princess Anne does an awful lot of good for transport particularly, but I noted that she took a helicopter to visit two gymkhanas in one day. That is fine if you are horsy but is it really necessary that the taxpayer pay for it?
What worries me is that the arrangements seem to have become open-ended. They used to be confined to 12 members of the Royal Family, but I got a Written Answer on 3 September that said:
“It is for Her Majesty The Queen to decide which members of the Royal Family receive support from the Sovereign Grant to meet travel costs”.—[Official Report, 23/9/13; col. WA 441.]
However, there seems to be no proper independent scrutiny where taxpayers’ money is involved. That obsequiousness seems to affect many of the dealings between Parliament and the royal family, and needs to change.
Clause 1 suggests that the costs should be kept under control and scrutinised. Six members seems a good number. Many years ago, when the Queen was a princess, there were probably only six members of the family performing royal duties; should there be any more? Royal travel arrangements, if funded by the taxpayer, should be scrutinised by Parliament in the same way as Ministers’ travel.
Clause 2 addresses two issues. The first is comparatively minor. It seems reasonable that the heir to the Throne should inherit the title of the Duke of Cornwall, whatever their sex. We debated that when discussing the Succession to the Crown Act, and it seems perfectly reasonable.
Turning to the second half of the clause, as a resident of Cornwall, I hear a lot of views about the Duchy, some good, some bad, but there is an awful lot of correspondence. I see the second half of the clause as tidying up some history. I suggest that the present status and structure of the Duchy remains pretty feudal, and that it is intentionally so, as it seems to suit all those involved not to rock the boat and incur what one might call royal displeasure.
We start with a big debate about whether the Duchy is in the private or the public sector. There is secrecy, obfuscation, Crown immunity and a failure to respond to questions. It is worth going back a bit in history. The Duchy has been around for a very long time, but I discovered that the Duchy of Cornwall Act 1860 states:
“All the provisions of the said Act of the ninth year of King George the third now applicable to Her Majesty, her Heirs and Successors, shall be extended and be applicable to the Duke of Cornwall, in like manner as if the same were re-enacted and the Duke of Cornwall were throughout mentioned or referred to where the ‘Kings Majesty’ or ‘His Majesty’ is in the said Act mentioned”.
That means that the Duke of Cornwall is effectively in the position of King of Cornwall. We can debate whether that appeals to the people of Cornwall, but it is confirmed in a preliminary statement by the Duchy of Cornwall in a foreshore dispute in 1856. It suggests that the three Duchy charters are sufficient in themselves to vest in the Duke of Cornwall not only the government of Cornwall but the entire territorial dominion.
It is also interesting to note that, whereas the sheriffs of the counties of Britain swear an oath of allegiance to the sovereign, the Sheriff of Cornwall swears an oath of allegiance to the Duke of Cornwall as sovereign of Cornwall. Those examples appear to provide strong confirmation that the Duchy is a public body and, as such, subject to environmental, housing and other laws. That was confirmed in a judgment concerning Port Navas on the Helford river on the question of whether the Duchy should be subject to environmental legislation. The Duchy lost the case, perhaps influenced by evidence from the Duchy which said that,
“the Duchy is not democratically accountable in any meaningful sense”.
The Duchy is appealing; that appeal is still pending, but it must be comforting for it to have the free advice of the Treasury Solicitor. The man who made the original complaint has to fund his own legal costs; we are funding the Duchy's costs.
There is an issue of tax. The Public Accounts Committee published a report last week which, I thought, was very deferential. I am sure that if I or any other noble Lord had been questioned by the Public Accounts Committee about not paying tax, we would not have received the response that, yes, there ought to be a bit more investigation by the Treasury. The Treasury responded even more deferentially. That was an opportunity lost to get things on a proper footing. Then there is the question of Crown immunity. The Duchy does not pay capital gains tax or corporation tax, and Duchy income is taxed on a voluntary basis. Would not we all like to be taxed on a voluntary basis?
The Duchy accounts state that, in accordance with the memorandum of understanding of 1993, the Prince of Wales pays rent on Highgrove, his house in Gloucestershire. There is no lease in place and, as I understand the evidence given by Sir Bertie Ross for the Duchy, the Prince is entitled to the income from the Duchy, so it would be a matter of the Prince taking money from one pocket and placing it in another, so he does not actually pay rent. He can claim tax relief on that proportion of the rent which relates to Highgrove being used for public purposes, so it appears that he is claiming tax relief in respect of rent which is paid in theory but not actually paid or which, having been paid, is returned to him. I hope that noble Lords can follow that.
On the issue of housing, Mr Alan Davis, who lives in the Isles of Scilly, wants the right to buy his leasehold property from the Duchy. He is challenging the Prince on his decision in the Prince’s Council to resist that because the Leasehold Reform Act does not apply to the Duchy because of Crown immunity. There is an awful lot of confusion and documents have been lost. Mr Davis’s case comes before the tribunal in Truro, so I shall not comment on it further. It seems wrong that people who live in houses leased from the Duchy cannot buy their own houses in the way that other people can because the Duchy claims that it wishes to manage the built and national environment. There is legislation to do that. The Leasehold Reform Act may not be perfect, but the exclusion of the Duchy from it is a matter of concern.
The next issue is the rents that the Duchy charges for its properties. According to Richard McCarthy, who is chair of the Duchy Tenants Association, average Duchy rents in 2011-12 were £130, whereas council rents averaged £70 and housing association rents averaged £100. The average household income on the Scillies is just £277 a week, compared with the national average of £390, so those rents are very hard for tenants in the Duchy to afford.
My last example is something called bona vacantia. It applies to people who die in Cornwall without a will. Their estate then goes to the Duchy. It is worth about £500,000 a year. I think that the people of Cornwall think that that money should be spent on good causes in Cornwall, but it appears from the Duchy accounts that it is distributed to Strata Florida in Wales, Gordonstoun School, which Prince Charles attended, and a Kennington residents’ association. Because the money came from Cornwall, there is a feeling that the funds should be distributed to good causes in Cornwall.
I have been able to give just a snapshot of the obfuscations, uncertainties and spurious claims by the Duchy of being in the private sector or in the public sector and having Crown immunity, which seems to vary on the time and the subject, all coupled with the secrecy from both the Duchy and, sad to say, the Government, whose obsequiousness sometimes seems more appropriate to a feudal era, when the Prime Minister would get his head chopped off if he did not do whatever the sovereign or the heir to the Throne wanted.
I have had lots of support from the people of Cornwall about this; many of them fear that they cannot speak out, and one can understand why. So my solution is to separate the Duchy estate from any historical link with the monarchy and turn it into a public trust for the benefit of the people of Cornwall and the Isles of Scilly. There is over 600 years of history to unravel and that is not easy, so this would need secondary legislation and perhaps some primary as well, but the opportunity should be taken to clear up all the anomalies about the status of the Duke of Cornwall and his rights. In this context, my Bill would ensure that the Prince of Wales should no longer be King of Cornwall in the feudal sense. I think that he should retain his links with Cornwall as he does with Wales—but he does not own Wales. That is the purpose of that clause.
Clause 3 has rather been overtaken by events. It concerns the issue of consent from the Queen or the Prince of Wales before a Bill receives Royal Assent. The Minister kindly indicated the consent at the start of this debate. I do not need to go into this topic in any particular detail because, in evidence to the Political and Constitutional Reform Committee on 31 October, the Clerks of both Houses of Parliament basically said that Parliament could change that; it would not need any legislation but if it wished to stop this, it could do it. To demonstrate why we need to change the current arrangements, I have a couple of examples of cases where approval was not signified for a Bill. The Clerks’ evidence is that this has happened twice. Although the legislation was not refused—this is a deferential way of “not saying no but meaning no”—two Private Member’s Bills were affected. One was the Second Reading of the Military Actions against Iraq (Parliamentary Approval) Bill on 16 April 1999, in which Tam Dalyell tried to require Parliament to give approval of declarations of war, which did not go ahead because the Prime Minister of the day almost certainly advised the Queen that it would not be a good idea to go ahead, perhaps because he might want to bomb Iraq without getting the approval of Parliament —we can debate that. The other was the Third Reading of the Pig Husbandry Bill on 3 May 1991. I do not know whether the Royal Family keep pigs in Windsor Castle, but why that did not go ahead I also do not know. All I can do is quote John Kirkhope, a public notary and chartered insurer who has given me a lot of help with this information:
“I am surprised Parliamentarians tolerate this situation which means, in effect, if you introduce a Bill to Parliament someone taps you on the shoulder and says you need the consent of the Duke of Cornwall because it may affect his private interests!”.
So I hope that when the Political and Constitutional Reform Committee reports it will be a lot more robust and less deferential, and will recommend the end of this feudal period.
In conclusion, there is much that needs doing, sorting out and cleaning up in many areas of the relationship between the monarch, the Prince of Wales and Parliament. I hope that the constitutional monarchy survives and prospers but at the moment the Prince of Wales in particular is put in an impossible position in seeking to do what he believes is best in a kind of feudal environment that started 600 years ago but in the 21st century is not appropriate. Change is necessary, but we have to get away from this deferential relationship of obfuscation and silence that is hampering the debate. I hope that the Bill, covering only a small part of that relationship, will start an open debate and eventually some very necessary change. I beg to move.
Lord Wallace of Saltaire (LD)
My Lords, this is the second of two Private Members’ Bills we have had in this Session which attempt to “tidy up”, as the noble Lord, Lord Berkeley, said, our history. I have mixed views on this. The noble Lord himself holds a feudal title which is old enough to descend along the female line. As a liberal, in many ways, I am thoroughly in favour of a rational and written constitution. I think I am right in saying that the Act of 1863, one of the first of the modern Acts which regulate the Duchy of Cornwall, was passed under a Liberal Government at the same time that that Government proposed for the first time that the Law Lords should be separated from the House of Lords—something which took only 160 years to carry to its conclusion.
The Duchy goes back nearly 700 years. I have a sense from debates on Lords reform that there is not an enormous appetite in the Chamber for rationalising our constitution. I have myself come up against some interesting historical anomalies. Many years ago, when I was first in this House, I asked some questions about the Crown dependencies. The chief executive of Jersey came to see me the following week and started by saying very vigorously, “I hope you understand that we were promised in 1204 that the Channel Islands would be a low-tax jurisdiction”. Some while later I asked to see the charter which had promised that and was told that it has been lost in the late 13th century. If one starts trying to rationalise the constitution, a number of issues come into play.
I associate myself with what the noble Lord, Lord Teverson, said about the good work of the Duchy of Cornwall—the Prince’s Trust. There was a remarkably positive article in the Financial Times last weekend about Poundbury and how, in spite of all its critics, it is a working local community with a great deal to offer, particularly in environmental terms, as a place for people to work as well as live.
The Bill has three separate parts. The first proposes restrictions on the use of the sovereign grant for travel. The noble Lord, Lord Berkeley, made a number of pointed criticisms of current members of the Royal Family, which in some ways we should as a House regret as they got relatively personal. Her Majesty the Queen asks a number of members of her family to stand in on her behalf as engagements demand and some of these, as has been said, are members of the Royal Family who are lower than sixth in the line of succession. The Royal Family carries out a large number of public duties and the sovereign is well placed to assess who can best take her place at functions—particularly as she still carries out a great many duties but obviously not as many as she was able to do some 20 or 30 years ago.
The second part proposes amendments to the Duchy of Cornwall estate. The Duchy of Cornwall is an interesting anomaly. It is a private estate that funds the public, charitable and private activities of the Prince of Wales and his family but, as the noble Lord, Lord Berkeley, has commented, it is nevertheless governed by a number of Acts passed in the past 150 years, the combined effect of which has been to place the Duchy’s assets in trust for the benefit of the present and future Dukes of Cornwall and to govern the use of the assets. Many of the assets are in Cornwall but quite a large number of them are outside Cornwall. Mention was made in this debate of the Kennington estate.
His Royal Highness the Prince of Wales and Duke of Cornwall is entitled to the annual net income of the Duchy. He is not entitled to the proceeds or profits from the sales of the Duchy’s capital assets, which are retained in the Duchy to provide income for the Duke and future beneficiaries. Since it was established in the early 14th century, the Duchy’s main purpose has been to fund an income independent of the monarch for the heir apparent. The current Prince of Wales chooses to use a substantial proportion of his income from the Duchy to meet the costs of his public and charitable work. At present the Duchy funds the public and private lives of four members of the Royal Family—the Prince of Wales, the Duchess of Cornwall, Prince William and Prince Harry. The Bill’s proposal to place the assets of the Duchy of Cornwall in public trust is an unacceptable encroachment on private property rights as currently established. If the Duchy were to be taken away from the heir apparent, it would still be necessary to fund their activities through the sovereign grant.
The next part touches on succession to the Duchy of Cornwall and this overlaps with the previous Bill we were discussing on the succession to the Crown. I have some sympathy with the anomalies at stake and the peculiarity of this charter. There are many peculiarities in succession. I was talking to the noble Countess, Lady Mar, yesterday about the succession to her Earldom and the noble Lord, Lord Berkeley, himself benefits from a particular sort of succession. Rationalising all of these may be part of what we need to do in the 21st century and I recognise that, when it comes to the Royal Family, this is a particularly interesting issue to attack. However, if we look back at recent history there have been long stretches when there has been no Duke of Cornwall and the Duchy has continued to manage its affairs well. There is nothing to stop a female heir having an active role in the running of the Duchy should the sovereign so wish. I can also reassure the House that a female heir apparent will not find herself at a financial disadvantage because the Sovereign Grant Act 2011 broadly ensures that financial provision equivalent to the income from the Duchy is made for the heir apparent.
Then we come to the removal of the Queen’s and Prince’s consent—a rationalisation of one of the ancient practices of the two Houses of Parliament. It is a long-standing parliamentary requirement that the consent of the Queen and the Prince of Wales should be given for certain Bills. The parliamentary authorities decide which Bills require that consent, not the Government. Signifying the consent of the Queen and the Prince of Wales for certain legislation is a parliamentary requirement and the Government will continue to do that for as long as Parliament requires it. The Government’s role is to ensure that consent is sought for government and Private Members’ Bills when it is required by Parliament. This requirement reflects the unique relationship between the sovereign and the legislature which is rooted in the historical royal prerogative and provides for a formal parliamentary process by which the sovereign can be informed of, and consulted on, legislation which affects the sovereign’s prerogative and interests. The Government will generally seek consent for Private Members’ Bills even when they oppose the Bill on the basis that Parliament should not be prevented from debating a matter on account of consent not having been obtained.