Crown Estate Bill [HL] Debate

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Department: HM Treasury
Baroness Ritchie of Downpatrick Portrait Baroness Ritchie of Downpatrick (Lab)
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My Lords, as a follow-on to what the noble and learned Lord, Lord Thomas, said in relation to Wales, if the Crown Estate is devolved to Scotland, why should it not be devolved to Northern Ireland? The Crown Estate plays a critical role in the stewardship of our seas and terrestrial environment. As well as large landholdings, the estate manages the seabed around England, Wales and Northern Ireland, along with 50% of our coastline, and it will support the tripling of the electricity sector’s capacity, with the deployment of 125 gigawatts of offshore wind by 2050.

During Second Reading, I pointed out that, in the Northern Ireland context, the electricity industry is managed on an all-island basis, north-south, through the all-Ireland electricity market. I received a very helpful response from the Minister, my noble friend Lord Livermore, in relation to this issue. Could he give some thought to the devolution of the Crown Estate to Northern Ireland, in the context of the electricity market and how the electricity supply is managed? Can he say whether there will be a connection and co-operation with the Irish Government on the Great British energy market and the all-Ireland energy market and the Irish Sea?

Lord Berkeley Portrait Lord Berkeley (Lab)
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My Lords, briefly, I support these amendments. I get involved, along with many other noble Lords, in offshore energy issues, particularly in Cornwall. I can see a time coming when there will be enormous pressure on central government as to where these great big tanks—the floating windmills or whatever you want to call them—are manufactured, where they are located, from where they are serviced and, probably most important of all, where the power lines come ashore. There has already been lots of talk about Port Talbot as the only possible place for their manufacture for the south-west. There is lots of flat land there and it is probably very good, but, living in Cornwall, I would like to make sure that some benefits come to the ports in Cornwall from some of those issues.

It would seem, from what many noble Lords have said, that there is a strong argument for drawing a line down the Bristol Channel out to the medium and sticking to it, then using that line for any kind of debate or discussion that takes place on offshore oil or offshore wind, or anything else like that. If not, we are going to have this kind of debate every time: “How much does Wales get?”, “How much does Cornwall get?”, “How much does Devon get?”. It would be much better if it was agreed—I am not sure by whom, but there has to be someone in this Government—where this line was and everything that leads from there.

While I am on my feet, I would like to ask my noble friend the Minister where the Duchy of Cornwall and its offshore or beach interests come into this, if at all. The Duchy of Cornwall has the right to treasure trove if treasure is found in Cornwall, and that goes into the coffers of the Duke of Cornwall—as opposed to in the rest of the country, where it would go into the coffers of the Government. Again, it would be nice to know where the boundaries are. It would be much easier to have a good debate about them if we knew where the start and finish were.

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In effect, the Crown Estate is seeking to make a profit on the backs of leaseholders, who are being offered the freehold at a far higher price than they would have had to pay had their freeholder not disappeared. That is what the Crown Estate believes, but what does the Minister think? How does he begin to defend what I have just said? In his Written Answer to me, published today, the Minister confirms that we will have a new “draft Memorandum of Understanding” between his department and the Crown Estate. The solution is for that document to make it clear that the Acts of Parliament apply when the Crown disposes of freeholds under the process of escheat. I look forward to his reply and to the views of others who had the patience to listen to what I have just said. I make it clear that I will come back to this on Report if there is no satisfactory resolution before then.
Lord Berkeley Portrait Lord Berkeley (Lab)
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My Lords, I rise to add a little extra interest to the statements made by the noble Lord, Lord Young of Cookham. We discussed this at Second Reading and my Amendment 42, which will come at the end of tomorrow night if we ever get that far, is about the same issue. I go back to the statement made by the Chief Whip of the previous Government, who basically said that the Crown will comply with the legislation if it chooses to; that is a summary. The way it chooses to do it will be published at some time, which is relevant to my amendment.

The reason I am speaking now is because the comments made by the noble Lord, Lord Young, beg the question: who is in charge? Is it the Government or the Crown Estate or, in my case, the Duchy of Cornwall? Each one blames the other and says that they are not in charge, but they actually probably are. They then refuse to have correspondence. I am pleased that the noble Lord, Lord Young, got a letter.

I have a good friend, Dr John Kirkhope, who advises on many issues around the Duchy of Cornwall, which is not much different to the Crown Estate. He tried to get a freedom of information decision on whether he could seek copies of correspondence between the Duchy and the Government—I think that includes the Crown Estate, the Duchy and the Government—on matters of policy. The answer was no. He went back and said, “Here you have an unelected body apparently advising government on matters of policy and that does not seem very right to me”.

Paragraph 16 of the eight-page response from the Information Commissioner’s Office on whether any information should be disclosed says:

“The Commissioner considers that the following factors will be key indicators of the formulation or the development of government policy”.


There are then three bullet points.

“the final decision will be made either by the Cabinet or the relevant minister; … the government intends to achieve a particular outcome or change in the real world; and … the consequences of the decision will be wide-ranging”.

The Crown Estate therefore

“advised that it considered direct correspondence as well as correspondence where the Crown Estate and the Duchy of Cornwall had been copied into”

and decided that it is reasonable to withhold information.

It looks as if the Crown Estate and the Duchy of Cornwall—we never mention the Duchy of Lancaster, but I think it is rather less difficult—seem to be a Government of their own. This is back to the feudal system, where Ministers, whom we elect and appoint, are unable to effect any legislation regarding the Crown Estate or the Duchy because they are not so important. It is back to the feudal system, and I shall come back to this on Amendment 42.

I hope my noble friend will give the noble Lord, Lord Young, a pretty strong response, because this is something that will go on and on—whether it is escheat or something else. The people affected are getting pretty fed up with the Duchy and Crown Estate playing them and not coming back with a decent response.

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Lord Livermore Portrait Lord Livermore (Lab)
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I would like to be helpful to the noble Lord. I am told that the memorandum of understanding deals exclusively with borrowing powers, so it may not be the most appropriate vehicle to insert that into.

Lord Berkeley Portrait Lord Berkeley (Lab)
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Before the Minister sits down, I have a very simple question to ask him. We have had a very interesting debate, and I have understood much of it, but who does the Crown Estate—and therefore the Duchy of Cornwall—report to? Is it the Government or Parliament? Who controls them, or are they a law unto themselves? In spite of the amendment tabled by the noble Baroness, Lady Smith, I do not think the King comes into it.

Lord Livermore Portrait Lord Livermore (Lab)
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It is a very good question, and I shall endeavour to find the answer and write to my noble friend.

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Lord Berkeley Portrait Lord Berkeley (Lab)
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My Lords, it is a great pleasure to follow the noble Lord, Lord Teverson. I congratulate him on the work that he is doing in Cornwall and the Isles of Scilly.

I support these amendments for two reasons. First, earlier this year the noble Baroness, Lady Willis, and I discovered that Defra’s JNCC had produced a report advising the Government not to drill for oil in MPAs. We had a debate about it and the noble Lord, Lord Callanan, basically said, “Drilling for oil is more important than protecting the environment”. I do not know what has happened to that. Perhaps my noble friend the Minister could come back to me at some point and say, but that was a very low point. The reports were very good, and I do not think that the oil demand for this country needed to have particular oil wells. I might be wrong, but I think it was in the 33rd oil and gas licensing round. We must be pretty careful about this. As the noble Lord, Lord Teverson, said, there is a balance to be drawn.

I do not know whether the noble Lord, Lord Teverson, has talked to the fishermen’s association in Cornwall. I have been talking to it, at its request, and it is concerned. It is a reasonable concern, because he is quite right about some of the methods used in fishing at the moment, which are pretty unacceptable. On the other hand, those fishermen are frightened that, when we get these wonderful floating windmills in the south-west or anywhere else, they will be told that they cannot finish within several miles of the installation. I do not know whether that applies to the supply cables and everything else like that, but there needs to be a proper consultation about who needs what, how big these areas of protection are and, if necessary, where the fishermen can fish instead.

I am told that there is a report from Defra that was commissioned a year ago, entitled “Working on the Marine Special Protection Project”. I do not know whether the Minister knows about this. It has not been published but it would be a very good contribution to the debate if it could be and discussed with the fishing industry and the other people involved in offshore, and maybe a proper conclusion—

Lord Teverson Portrait Lord Teverson (LD)
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As we are in Committee, I would just like to answer one of those questions. I do speak to the Cornish Fish Producers’ Organisation and absolutely commend Chris Ranford, who operates it, for his great work in that area. The noble Lord is right. One thing that needs to come out of these planning areas is the fishing industry having the right spaces to fulfil what it wants to do in economic growth and the good things that happen to the local and coastal economies. This is important and I am thankful to him for mentioning it.

Lord Berkeley Portrait Lord Berkeley (Lab)
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I am grateful to the noble Lord. We both need to have another discussion with Chris and his colleagues, as does the Minister, to make sure we can come up with something that works for everyone. I end by congratulating the noble Lord on his appointment; I look forward to working with him.