Crown Estate Bill [HL]

Lord Holmes of Richmond Excerpts

2nd reading
Monday 2nd September 2024 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in this Second Reading debate. As Mark Twain entreated:

“Buy land, they’re not making it any more”.


The Crown Estate has a diverse portfolio of land, shore and sea assets, which gives it a unique opportunity to play a role in our transition not just to green energy but to a new economy and a new future for the nation. I will focus my comments around economic, environmental and governance issues, and will deal with economic issues first.

I note the proposal for increased borrowing powers for the Crown Estate, but what limits are on this? It seems to me that if we want to enable the Crown Estate to be more connected to the country and to the communities that it ultimately serves, perhaps we should consider financial instruments, such as public bond issues, for people to participate directly in some of these proposed schemes. Similarly, does the legislation allow for joint ventures going far beyond just leases for the Crown Estate to play its part in a particular development? On land, if we look at some of the issues around the new technologies that we will need for our future economy and development, would the Crown Estate be allowed to, for example, exchange rent for equity shares?

One of the most promising opportunities, as mentioned by other noble Lords, is floating offshore. It is a nascent technology in which the United Kingdom could play a leading role. To that extent, are the proposals set out in the documentation realistic in suggesting five gigawatts by 2030? Is this a large enough stretch target in that it will largely be in this area where we really drive opportunities beyond the simple receipts we get from static platforms? This is where we can drive new technologies, IP, skills and employment far more than the existing offshore wind, which in many ways, from the United Kingdom’s perspective, has somewhat passed us by from a technology point of view.

What will be in place to speed up the timeline for developing these projects? Is it proposed that the CfD and seabed licences processes will be integrated, which would be a positive move? Can the Minister clarify that? Similarly, what work is being done to ensure that this will always be crowding in, rather than potentially crowding out, private sector investment?

Many noble Lords have rightly mentioned grid connectivity. It is vital, and more important than wind generation itself, because we must appreciate that not only is there no point in generating from wind if we cannot bring it on grid but worse than that is paying billions to generators not to produce, as is currently the case, and those billions currently go on to bill payers’ accounts. What is the plan to ensure that the grid will not lag but will be ahead to take on all this increased generation? Indeed, as noble Lords have commented, at certain points in the year we may well be able to export this wind capacity.

Moving on to environmental questions, does the Minister agree with noble Lords’ comments that the Crown Estate could do much more in terms of biodiversity and in taking steps to help with climate adaptation, such as sea-grasses, kelp and the amount of the estate that is currently not used for those measures? Does he agree that the Bill provides the opportunity to bring forward a prohibition on all sea-bottom trawling and other practices that are effectively damaging and destroying these vital assets?

Similarly, does the Minister agree that there is an opportunity for the Crown Estate, with its nature and its shoreline resources, to play a key role in helping mental well-being? The concepts of social prescribing and nature prescribing have already been rolled out in various parts of the country. It seems to me that the Crown Estate could play a lead role, perhaps partnering with NHS England and health organisations in the devolved nations, in bringing about such a positive element for the well-being of citizens right around the United Kingdom.

While we are on the United Kingdom and devolution, I agree wholeheartedly with my noble friend Lord Bourne, the noble Lord, Lord Wigley, and the noble Baroness, Lady Smith. Surely the Minister must accept that there is no logic or consistency and that the current Crown Estate situation in Scotland and Wales cannot continue. The Bill provides the opportunity to put the situation in Wales and Scotland on a similar footing for the benefit of the entire United Kingdom.

On the question of governance—as other noble Lords, not least my noble friend Lord Young and the noble Lord, Lord Berkeley, have mentioned—does the Minister agree that what is currently set out in the Bill does not go far enough to enable the claim that this is bringing the Crown Estate into the 21st century? The Bill makes some good suggestions, but far more should and could be done. For example, how are we ensuring that these new Crown commissioner posts will really bring the full richness of inclusion and diversity that exists right across this country? Similarly, does the Minister agree that the opportunity exists to clarify a number of provisions in the 1961 Act that are not currently addressed in the Bill?

The Crown Estate has a unique place, as has been identified by speeches around the House, and it has a unique potential role to play in environmental security, economic security, technology and cybersecurity. Perhaps the greatest question we should focus on as we go into the latter stages of the Bill is to ensure that we realise all these benefits while having a laser focus, not least during this transition period, on who pays.