Crown Estate Bill [ Lords ] (First sitting) Debate

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Department: HM Treasury
Perran Moon Portrait Perran Moon (Camborne and Redruth) (Lab)
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I will also speak to amendment 1. I add my voice to the request for assurances from the Minister on the alignment of sustainable development with the UK’s net zero goals, and also on community benefits. I agree with him that we must not lay too narrow a scope on the Crown Estate and seek to limit its opportunity as a key revenue driver for the UK economy. Goodness knows, we need it after 14 years of Conservative failure.

I am really concerned, however, about the potential bypassing of deprived coastal communities in the revenue from the Crown Estate to the Treasury. It would be nice to get reassurance from the Treasury of the Government’s plans to ensure that coastal communities closest to many of these huge revenue opportunities will see some of the benefits of that growth.

Andrew Snowden Portrait Mr Andrew Snowden (Fylde) (Con)
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It is a pleasure to serve under you on this Committee, Ms Furniss. I would like to echo the final points—not some of the other points, obviously—of the hon. Member for Camborne and Redruth regarding reassurances from the Minister about the economic benefit that these offshore projects will create for local communities. I represent a coastal community with the beautiful Fylde coastline, and north of us is Blackpool and Fleetwood. The Crown Estate owns significant amounts of seabed off the coast of Fylde. There are a number of projects under way, including the Morgan and Morecambe wind farm, which will cable through Fylde constituency to get to the national grid.

These amendments reference the Environment Act 2021 and regional economic growth. Can the Minister give reassurances that when projects such as offshore wind go ahead—they could be further encouraged by these amendments—local communities will be taken into account regarding the economic benefit? At the minute, a lot of the projects end up being opposed by and very unpopular with local communities, because all they see is the environmental damage being done to their area, countryside and coastline, and there is no economic benefit left from residual cabling that runs through areas. Although I welcome some of what the amendments try to do, I seek assurances that, at the heart of this, we have the communities who are negatively impacted by these projects seeing benefit as well.

James Wild Portrait James Wild
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Clause 3, the first of several clauses added on Report in the House of Lords, will amend section 1 of the 1961 Act to require the commissioners to review the impact of their activities on achieving sustainable development.

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James Murray Portrait James Murray
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I rise to speak to amendment 9 and new clause 10.

Amendment 9, tabled by the hon. Member for South Cambridgeshire, would mean that in satisfying proposed new subsection (3A) of the 1961 Act, which states,

“The Commissioners must keep under review the impact of their activities on the achievement of sustainable development in the United Kingdom”,

the commissioners must assess the adequacy of protections against coastal erosion in areas affected by their offshore activities. I very much understand the concerns reflected in the amendment, but protections against coastal erosion are not the responsibility of the Crown Estate, and therefore the amendment is not relevant to the Bill.

The UK has dedicated statutory bodies under each devolved Administration with responsibility for ensuring adequate protection against coastal erosion. The Crown Estate always collaborates and complies with the relevant statutory authority for any assessment of the impact of offshore activity on coastal erosion, and the potential for coastal erosion should be considered as part of marine licensing, which is considered by the relevant regulator, depending on the jurisdiction. However, the statutory responsibility falls on the relevant body in each devolved area.

The Crown Estate becomes involved in coastal defence only when the statutory bodies responsible for coastal erosion wish to construct defences. In such cases, the Crown Estate typically grants leases to those bodies for defence works.

Although the Crown Estate is not responsiblefor coastal erosion, the Government are committed to supporting coastal communities and are investing ausb record £2.65 billion over two years in building, maintaining and repairing our flood and coastal defences. Shoreline management plans are developed and owned by local councils and coastal protection authorities to provide long-term strategic plans that identify approaches to managing coastal erosion and flood risk at every stretch of the coastline. Shoreline management plans have recently been refreshed with updated action plans, following several years of collaborative work between the Environment Agency and coastal groups.

The Environment Agency has published the updated national coastal risk map for England, which is based on monitoring coastal data, the latest climate change evidence and technical input from coastal local authorities. There are also strong safeguards to manage the flood and coastal risk through the planning system. I hope that on that basis the hon. Member for South Cambridgeshire feels able to withdraw her amendment.

I turn to new clause 10, which would require that in relation to any decisions made about marine spatial priorities, the Crown Estate must ensure the decisions are co-ordinated with the priorities of the Marine Management Organisation and must consult any communities or industries impacted by the plans, including fishing communities.

I can confirm to the Committee that the Crown Estate and the Marine Management Organisation already have well-established ways of working together to ensure effective collaboration for marine spatial planning and prioritisation. The Crown Estate’s collaboration with the Marine Management Organisation and other relevant statutory bodies is governed by the Marine and Coastal Access Act 2009, which establishes the framework for marine planning and licensing in the UK, and requires the Crown Estate to have regard to marine policy documents such as marine plans in its decision making. It is also governed by the habitat regulations, which require the Crown Estate to conduct plan-level habitat regulation assessments for leasing or licensing activities.

Furthermore, the Crown Estate and the Marine Management Organisation jointly agreed a statement of intent in 2020, which is reviewed periodically to provide a focus on priorities and opportunities for alignment, as well as longer-term ambitions. The statement of intent complements a memorandum of understanding agreed in February 2011, which sets out a framework to encourage co-operation and co-ordination between parties in relation to the sustainable development of the seabed and rights managed by the Crown Estate, based on active management, shared information and effective marine planning and management by both parties.

In addition to the Crown Estate’s relationship with the Marine Management Organisation, there are also various regulatory requirements on developers leasing areas of the seabed from the Crown Estate to engage with the Marine Management Organisation through a number of routes. Those include through marine licensing; developers must obtain marine licences from the Marine Management Organisation for activities that could impact on the marine environment. The process involves consultation with statutory bodies and adherence to marine plan policies. As part of a marine licence application, developers must also conduct environmental impact assessments for projects that could significantly affect the environment, which includes consultation with the Marine Management Organisation and other relevant authorities to ensure compliance with environmental regulations. Developers are also encouraged to engage with local communities, statutory bodies and other stakeholders throughout the planning and development process to address concerns and ensure compliance with marine plans.

This new clause therefore duplicates existing regulatory requirements and practice. I hope the hon. Member for South Cambridgeshire feels able to withdraw her amendment.

Andrew Snowden Portrait Mr Snowden
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I feel sympathy with the contributions from both the Minister and the hon. Member for South Cambridgeshire. There are some issues at the heart of what the amendment and new clause are trying to achieve, but whether they are within the scope of the responsibility of the Crown Estate is an equally valid point. New clause 9 talks about coastal erosion and, while that is an issue, there is also the issue of coastal damage caused by projects where the seabed in particular is licensed. Again, Morgan and Morecambe off the Fylde coast will lead to years of work trying to rebuild sand dunes that will be cabled and tunnelled through for a new cabling corridor. The dunes will be completely damaged due to activity coming in to connect to the national grid.

Furthermore, the new clause talks about consultation. This is where I really do have some sympathy with the Minister, because that is not the responsibility necessarily and primarily of the Crown Estate. The root cause of the issue is that there are already regulations in place for consultation to happen where licences are being issued. The consultation happens; people consult and then they just ignore local communities and industries. Nothing changes, and perfectly valid objections and alternative routes for cabling corridors coming in from the sea are just ignored—but that is a broader issue rather than specific to this point.

Pippa Heylings Portrait Pippa Heylings
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I will not press either of these amendments to a Division, but I would like to call attention to the fact that, given the greater borrowing and investment powers, the existing frameworks and regulations under which the Crown Estate has been co-ordinating the Marine Management Organisation need to be considered. I think we can all recognise that the situation has changed hugely. Therefore, I urge the Government to consider how they will ensure that there is greater consultation on decisions around prioritisation of what happens where, that greater weight is given to that, and that more resources and powers are given to the MMO to ensure that that happens. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.