Crown Estate Bill [HL]

Lord Thomas of Cwmgiedd Excerpts

Committee stage
Monday 14th October 2024 Lords Chamber

Whatever the composition of our new Senedd, I hope that the increase in Members will mean a return to the surefootedness of earlier years, when the National Assembly, as it was then, dealt efficiently and competently with EU objective 1 funding. Our enlarged new Senedd will have the confidence to carry out an increased number of functions, including the devolved Welsh functions of the Crown Estate commissioners. Many of us will continue to press for the devolution of further powers to Welsh Ministers, including the devolution of justice. Over 25 years we were told that devolution is a process, not an event. I hope those words come to fruition.

[Lord Thomas of Cwmgiedd (CB)]

My Lords, I rise briefly to support the amendments in the names of the noble Lord, Lord Wigley, and the noble Baroness, Lady Smith Llanfaes, respectively. I do so, following what has been said by a number of others on some detailed points, because there is an important constitutional issue and an interesting constitutional test for this Government.

It seems clear to me that in our union, it is accepted as things stand that the Crown Estate is not a union function. That is shown by the fact that it has been devolved to Scotland and therefore is quite unlike monetary policy, defence or other matters that are union functions. I see the powerful argument, advanced by the noble Lord, Lord Macpherson, that our constitution should be slightly different—that this should be seen as an energy issue and reserved to the central Government—but this is not the current position and we must address things as they are. Therefore, it is very clear that when the Government look at this question, they must do so from the point of the constitution. This is a power capable of devolution and the question therefore arises, if it can be devolved to Scotland, why is it not devolved to Wales?

It is also important that we stand at a turning point in devolution. I had hoped, and still hope, that the advent of this new Government means that we think for the first time in a long time about the structure of our union—that we look on it as something that should be based on principle and good co-operation between the nations. The latter is extremely important in this policy area, bearing in mind the current constitutional structure. I keep on using the word “constitutional” because we sometimes forget that what is critical to our country is good governance based on a sound constitution.

It is said by the Scottish authority that runs the Crown Estate that they

“invest in property, natural resources and people to generate lasting value for Scotland”.

Why cannot that be given to Wales? It has been said in the past that the Welsh are not up to it, or that London knows better. I am delighted that those arguments are not being run, and I hope they are consigned to the dustbin of history. However, the Minister said the following on Second Reading:

“devolving … would significantly risk fragmenting the energy market, undermining international investor confidence and delaying the progress towards net zero by … 10 to 20 years, to the detriment of the whole nation”.—[Official Report, 2/9/24; col. 1021.]

That is similar to what the noble Lord, Lord Hain, quoted in relation to the position of the last Government. So much, possibly, for new thinking.

It is important to analyse those phrases; there is no evidence to support any of them. I hope it is not unkind to say that the use of the phrase “undermining investor confidence” is often the resort of a politician in distress. Even if there was anything in any of these points, their argument does not touch on the issue of principle: that the management of the Crown property in Wales, historically acquired by the English Crown from the Welsh people, should be for the people of Wales and the money obtained should be transparently accounted for as a distinct amount and used for their benefit, in a way decided by the Government of Wales.

Those are two key points of the devolution of the Crown Estate: management and money. If it is good enough for the Scots, why is it not right for the Welsh? It will be interesting to see how the Minister argues that specific point of constitutional principle.

The Minister knows, from his own considerable experience, that it is of course possible to run things in co-operation. What is promised by this new Government is a new approach to the union: co-operation between the Governments in Edinburgh, Cardiff, Belfast and London. If there are benefits from matters such as gearing up together to deal with the energy market then that is possible through joint ventures or other arrangements, but it in no way detracts, it seems to me, from the issues of principle—that the management of property in Wales should be for the Welsh Government and the money should go back to Wales.

In relation to that, as someone who comes from the industrial area of Wales, I know it is important to recall what happened in the last century and the century before last. Wales possessed enormous mineral wealth that drove the supplies of energy which powered our industrial revolution. Let us hope that now that there are alternative means of generating the power that is driving our present economy, the people of Wales will not be short-changed as they have been in the past.

[Baroness Ritchie of Downpatrick (Lab)]

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?