Crown Estate Bill [HL]

Baroness Smith of Llanfaes Excerpts

2nd reading
Monday 2nd September 2024 Lords Chamber

[Baroness Smith of Llanfaes (PC)]

My Lords, I thank the Minister for the way in which he introduced the Bill and for the constructive manner in which he has approached initial proceedings, including the offer of meetings last week to discuss the Bill. In my contribution today, I will view the Bill from the perspective of its implications for Wales. I have listened carefully to Members from across your Lordships’ House, and I look forward to hearing from more Members.

I will first add comment to some of the contributions heard so far. My noble friend Lord Wigley raised important questions on learnings from the Scotland Act 2016 and the great opportunities in Wales to expand green energy through local supply chains. I look forward to his Private Member’s Bill shortly.

The noble Earl, Lord Russell, pressed for the exploration of devolving powers over the Crown Estate to Wales, and the noble Lord, Lord Bourne of Aberystwyth, questioned whether Wales is getting a fair deal. I share their interest on that matter. The noble Baroness, Lady Hayman, also raised important questions in relation to the role that the use of the Crown Estate plays in contributing towards our net-zero goals. I look forward to hearing more in future debates.

I want to address the way in which this legislation does not deliver fairness for Wales, and I will begin by outlining four issues. First, rising Crown Estate profits will not be retained in Wales. The Crown Estate in Wales is seeing rising profits as the demand for renewable energy projects increases. The Bill as it stands will not ensure that these profits are retained for the public purse in Wales; rather, they will go directly to the Treasury and contributing to the sovereign grant. This contrasts with the situation in Scotland, where the Crown Estate is devolved and profit is transferred to the Scottish Government.

Secondly, the proposed changes to the Crown Estate board do not include Welsh representation. The Bill proposes to expand the number of Crown Estate commissioners, yet there is no requirement for a certain number of these to represent Wales. Expanding the membership and changing the way their salaries are paid does not address the fact that membership of the Crown Estate board is largely outside democratic control, as it is the monarch, not Parliament, who appoints the commissioners who make investment and borrowing decisions.

Thirdly, expanding investment and borrowing powers for the Crown Estate may undermine the Welsh Government. The Bill proposes to expand the investment and borrowing powers of the Crown Estate, seemingly without any cap or limits on the amount that can be borrowed with the consent of the Treasury. I agree with the calls from the noble Earl, Lord Russell, to have sight of the draft framework from the Treasury. Meanwhile, the Welsh Government have a cap on their borrowing powers under the Welsh fiscal framework. As the Crown Estate is being vested with new borrowing powers to perform duties such as investment in ports and the seabed, there is a risk that this may undermine the Welsh Government’s ability to shape economic development in Wales, particularly given their limited borrowing powers.

There are a number of areas where the Welsh Government may overlap with the Crown Estate’s responsibility for conducting early development for offshore wind, such as the Welsh national marine plan, devolved responsibility over Welsh ports and responsibility for education in Wales, including skills and apprenticeships, which may form part of the supply chain for offshore wind developments.

Finally, the Bill does not make provisions to promote the economic or social well-being of Wales. It does not put any conditions on the investments that the Crown Estate will make. There is no guarantee that Welsh supply chains will feel the maximum benefit from the investments made or that these investments will promote the goals of the Well-being of Future Generations (Wales) Act 2015 and other Welsh policy aims. The Scottish Crown Estate Act 2019 legislated to ensure that management of the Scottish Crown Estate assets must be done such that it is likely to contribute to the

“economic development, regeneration, social wellbeing, environmental wellbeing”

of Scotland. There may be a missed opportunity in this Bill to apply similar duties to the borrowing and investment powers of the Crown Estate. It may also be argued that the Bill’s proposals to require commissioners to be paid out of the profits of the Crown Estate, instead of a salary agreed by Parliament, creates a profit motive that risks superseding other goals, such as environmental and well-being ones.

I hope your Lordships’ House will consider those four points when we proceed to Committee on the Bill.

I now turn back to my first point regarding profits not being retained in Wales. As your Lordships’ House knows, the devolution settlements in Wales and Scotland differ on the Crown Estate, as has been outlined by my noble friend Lord Wigley.

I ask the House to consider whether that is fair for Wales. The Crown Estate’s assets in Wales were valued at more than £850 million in 2023, yet all profits go directly to the UK Treasury. I grew up on the coastline of north Wales, near wealthy seabeds where poverty is rife and families continue to struggle to make ends meet.

In Scotland, the Crown Estate assets were valued at over £650 million, and the profits go to the Scottish Government. According to its latest annual report at the end of 2023, the Scottish Crown Estate had generated £103 million for the Scottish Government’s purse. A portion of net revenues generated from the Scottish Crown Estate’s marine assets are allocated to councils to support community benefit projects in their areas. In 2023-24, this amounted to £11.1 million. Higher amounts of this money were given to rural and relatively deprived areas in Scotland, such as £1.7 million to the Shetland Islands, £2.8 million to the Highlands and £1.5 million to Argyll and Bute. Imagine how such a funding structure could benefit communities in Wales.

In its entirety, the Crown Estate made a record £1.1 billion net revenue profit in 2023-24. That was £660 million higher than in 2022-23. I recently asked the Minister a Written Question on this topic, and the idea of devolving the Crown Estate to Wales was challenged. The Minister said:

“Introducing a new entity would fragment the market, complicate existing processes, and likely delay further development offshore, undermining investment in Welsh waters”.


I ask him to reflect on the success of this in Scotland. It is proof of concept that a devolved Crown Estate does not impede investment by fragmenting the market. The value of the Scottish estate has risen from £568 million to £653 million in the last year alone, through its various initiatives and investments.

I am speaking on behalf of Plaid Cymru, but I know that many share this position to devolve the powers of the Crown Estate to Wales. Last year, YouGov found that 58% of people supported devolving the Crown Estate to Wales. There is also widespread political support from within Wales, as your Lordships have briefly heard about.

The organisations that support devolving the Crown Estate include the Independent Commission on the Constitutional Future of Wales, which said that the Crown Estate

“should become the responsibility of the devolved government of Wales, as it is in Scotland”.

The National Infrastructure Commission for Wales said:

“By 2030, The Crown Estate’s functions in Wales should be completely devolved to a new body that has as its principal aim the reinvestment of all funds in Wales for the long-term benefits of the people of Wales in the form of a Sovereign Wealth Fund”.


The Welsh Government said:

“Our longstanding position is that the Crown Estate should be devolved to Wales in line with the position in Scotland. We have been clear that the current devolution settlement for energy limits our ability to deliver policy in Wales in a way that reflects our policy priorities and the needs of future generations”.


The Bill before us fails to deliver fairness. Constitutionally, we should support Wales to be on an equal footing with Scotland, as there is currently asymmetry in powers between the two nations when it comes to managing their natural resources. We have the opportunity to right this wrong and deliver fairness to Wales. I hope that the House considers these issues ahead of Committee, and I look forward to hearing the Minister’s initial response to them.

Crown Estate Bill [HL]

Baroness Smith of Llanfaes Excerpts

Committee stage
Monday 14th October 2024 Lords Chamber

I hope that there will be fresh thinking from this new Labour Government, although I fully recognise that the impossible financial predicament inherited from the bankrupt Tory Government means that finding the money to devolve management of the Crown Estate to Wales at this time would be very difficult. I also understand that this matter is not currently a priority, given all the other matters on health, education and local government that certainly are. I hope, therefore, that my noble friend the Minister, when he replies, will give me some encouragement that discussions will now take place with Welsh Labour First Minister Eluned Morgan—my noble friend Lady Morgan—and her colleagues on their firm desire to see powers over the Crown Estate devolved to Wales in the future, as they have long been in Scotland.

[Baroness Smith of Llanfaes (PC)]

My Lords, my Amendment 21 is included in this group. I endorse the contribution made by my noble friend Lord Wigley in making the case for the other amendments in this group, and thank him for supporting my amendment. I will now speak to Amendment 21.

I spoke at Second Reading outlining why the Bill, as drafted, does not deliver fairness for Wales. Therefore, I will not repeat my case today. However, I will highlight that at Second Reading there appeared to be a sense of agreement from around the House that Wales was not being treated fairly when it comes to powers over the Crown Estate—in particular, the stark contrast between the powers given to Scotland but not to Wales.

Amendment 21 simply aims to resolve this unfairness and would transfer the management of the Crown Estate in Wales to the Welsh Government within two years of commencement of this Act. Devolving these powers would also support the Welsh Government in the delivery of policies in the areas already in their control, such as energy and the environment. This lever would open up more opportunities to deliver for the people of Wales. I am grateful to the noble Lord, Lord Hain, for his support of this amendment and for his contribution, and to the noble and learned Lord, Lord Thomas of Cwmgiedd, for adding his name to it.

A move to devolve this power is supported by many in Wales, including senior colleagues in Wales of the new Labour Government here. Additionally, the Independent Commission on the Constitutional Future of Wales also recommends that the devolution of the Crown Estate is progressed, as the noble Lord, Lord Hain, outlined. Campaigning for this change has heated up across all parts of Wales in recent months. In addition to Cyngor Gwynedd’s motion, which my noble friend Lord Wigley raised, we have seen similar motions passed by Swansea Council, and I expect momentum to build across Wales if no progress continues to be made. This amendment offers this Committee and the new Labour Government an opportunity to make that progress, right this wrong and deliver fairness to Wales.

This amendment goes hand in hand with Amendment 23 in this group, which I support, as Wales must also receive the profits that result from the use of the land in Wales. These profits should be invested directly into the communities of Wales. I welcome support for this group of amendments from all corners of this Chamber, and I look forward to hearing the Government’s response.

--- Later in debate ---

[Earl Russell (LD)]

My Lords, I will speak to my Amendment 31. I apologise in advance that I have no “Monty Python” sketch references, but I support the amendments from the noble Lord, Lord Young, and the other amendments already spoken to.

Amendment 31 seeks to give an explicit power to Crown Estate commissioners to lease parts of their holding in exchange for either part or full ownership of any project or development, as the commissioners see fit. For the sake of clarity, the full wording of the proposed new Section 3(1)(a) of the Crown Estate Act 1961 is:

“The Commissioners may waive lease fees in exchange for full or part ownership of any project or development”.


I say this only as the Member’s explanatory statement used the word “land”. My amendment is intended to—and does, as far as I am concerned—cover all the Crown Estate’s holdings. That is particularly important because, as we all know, most of its money comes from the leases of the seabed. This amendment is designed to help the Government and the partnership with GB Energy. It is designed to help the Crown Estate itself. I want to see a transition to net-zero power by 2030. I welcome that commitment from this Government.

But I also want to see us grow and develop as an economy and as a country. I want the energy transition, which is arguably one of the greatest transitions in our use of energy since the Industrial Revolution, to be of benefit to ordinary people. I want the UK to be able to own at least parts of our new energy infrastructure—the energy infrastructure of the future. That is my thinking in my amendment. I want the UK to receive long-term benefits above and beyond just the green and environmental benefits that come with these things.

The Crown Estate generates its income primarily from the lease of seabed plots for offshore wind and floating offshore wind developments. The Crown Estate reported record profits for 2023-24 of £1.1 billion, boosted by round 4 sales. Round 5 of the offshore wind auction was not as successful but we have just had a successful round 6, which I welcome, which generated some 4.9 gigawatts of capacity but at somewhat lower prices than in round 4. Labour has plans to generate 20 to 30 gigawatts of offshore wind capacity by 2030. For context, that is enough to power 20 million homes.

We still have quite a long way to go with this offshore wind and floating offshore wind transition in particular. The hope is that £8.3 billion of investment by the Government will help to leverage some £60 billion of private investment. It is interesting that we are talking about this today, the day on which the Labour Government are holding their investment summit. I wish them well with that because the UK economy needs to grow and we need inward investment to do that.

We welcome, obviously, the plans for GB Energy and this partnership and tie-up with the Crown Estate. But although I very much welcome Labour’s ambition to decarbonise our power generation by 2030, it is worth noting that GB Energy will not be an energy supplier or own any energy generation assets. To my mind, that is a missed opportunity and I think we could do better.

To quote the Labour Energy Forum document title, Who Owns the Wind, Owns the Future. The Floating Offshore Wind Task Force has predicted that floating offshore wind could be the UK’s biggest industrial success by 2030, worth £47 billion to the UK economy and employing some 10,000 people. We should never lose sight of the fact that the UK is well placed and is estimated to be the third-best country in the world for the generation of wind energy. We are extremely lucky in that regard.

Other significant parts of the Bill seek to make rights that were implicit in the 1961 Act explicit. From my reading of the original Act, I can see no reason why the Crown Estate could not waive lease fees in exchange for part-ownership of offshore or floating offshore energy wind projects—but, at the same time, I can find no implicit right in the original Act. Frankly, I think there should be an implicit right.

As far as I can tell, the Crown Estate does not own or part-own any offshore wind installations now. It has a helpful page on its website that shows who owns all the offshore wind under its control. In many cases it is foreign Governments, hedge funds and other nations and their capital which own it. In 2022, for example, nearly half the UK’s offshore wind capacity was owned by state-owned or majority state-owned foreign companies. They are getting the long-term benefit of the investment in our third-best wind energy in the world and are using it to support their economies.

I want our wind energy to generate and support our economy. While leasing plots brings in revenues, part-ownership of the infrastructure itself could bring in much-needed longer-term and consistent revenue streams to the Crown Estate. I believe there is greater long-term financial gain from part-ownership of energy infrastructure than from simply leasing the seabed.

This would be good for the Crown Estate. As we have heard today, the Crown Estate is in a period of transition and allowing it the ability to explore this, if it wants to, would be useful at the start of the partnership. I also believe that allowing this to happen could be useful for the generation of small-scale community energy projects. This is something that I believe in strongly and would like to see the Government do a lot more of, and this amendment would be useful in helping that to happen. It could be the basis of a new model for the way the Crown Estate works, generating much smaller, local community benefit projects.

This would be good for energy transition, good for the Crown Estate, good for the UK economy and good for jobs and growth. I welcome your Lordships’ responses and look forward to hearing from the Minister. I hope that this amendment finds approval.

[Baroness Smith of Llanfaes (PC)]

My Lords, I will speak briefly to Amendment 22 in my name, which is included in this group of amendments. I also add my support to Amendment 18 from the noble Lord, Lord Holmes of Richmond, on inclusion in governance and Amendment 24—my noble friend Lord Wigley will follow with further commentary—on the transparency of financial reporting.

One of the aims of bringing forward the Crown Estate Bill was to increase the number of commissioners on the board. Increasing the size of the board is a good opportunity to reflect on its composition, and I share the curiosity of the noble Baroness, Lady Vere, in relation to what the Government hope the additional commissioners will add, specifically, to the committee.

At present there is no representation from our national Parliaments on the board, which makes investment and borrowing decisions across England, Wales and Northern Ireland. Having representation from our national Parliaments on the board will improve the Crown Estate’s alignment with the public policy aims of our national Parliament, in particular on crossovers with policy on devolved areas such as energy and the environment. My amendment would give each of our national Parliaments where the Crown Estate has activities the opportunity to nominate a representative to the board.

This amendment provides a meaningful mechanism for our democratically elected Parliaments to have a say on decisions made by the Crown Estate. I welcome support for this amendment from all corners of the Chamber and look forward to hearing the Government’s position too.

[Lord Lansley (Con)]

My Lords, I briefly intervene on this group of amendments, not least to support my noble friend Lord Young of Cookham in the point he made. I think it raised—as did Amendment 31 from the noble Earl, Lord Russell—the question of the interpretation and interaction of the powers in the 1961 Act and how they are being used. I want particularly to raise one issue with the Minister. I should also say that in the register of interests noble Lords will see that I chair the Cambridgeshire Development Forum, and the Crown Estate is a member of that, although I do not think any of its activities or that interest impinge on this Bill in any way.

My noble friend Lord Young of Cookham referred to the way in which the Crown Estate interprets its statutory duty in Section 3(1) of the 1961 Act, which says that it must secure

“the best consideration in money or money’s worth”

in

“all the circumstances of the case”.

That is indeed what the statute says, but I have had the benefit of looking at the Crown Estate Act and talking with officials. I am grateful for their time, not least because it seems to me that there is an inherent restriction on the function of the commissioners which, as the Minister earlier made clear, is in Section 1(3) and sets out that they should “maintain and enhance” the value and return obtained from the estate with

“regard to the requirements of good management”.

As far as I understand it, the view of the Government and the Crown Estate is that, over 60 years or thereabouts, the requirements to obtain best consideration in money or money’s worth have effectively been trumped where necessary by the function of the commissioners, particularly as regards securing the requirements of good management. My first question to the Minister is: in the light of what the noble Lord, Lord Young of Cookham, was saying, does he agree that the requirements of good management in that instance mean that the Crown Estate would live by the practice of other public authorities, or those with public responsibilities, in relation to the interests of the leaseholders?

Crown Estate Bill [HL]

Baroness Smith of Llanfaes Excerpts

Committee stage
Tuesday 22nd October 2024 Lords Chamber

[Lord Roborough (Con)]

My Lords, I will speak also to Amendments 39 and 40 in my name.

These amendments concern the publication of a framework document and the partnership agreement and memorandum of understanding between Great British Energy and the Crown Estate. We must have the opportunity to see, and vote on, the framework document before the Bill can be passed. Amendment 38 prevents the Crown Estate Bill coming into force until two months after the framework document has been laid before Parliament and has been subject to a vote. Amendments 39 and 40 in my name similarly seek to ensure the partnership agreement and memorandum of understanding between Great British Energy and the Crown Estate is laid before Parliament before the Bill is passed.

It would be negligent to pass a Bill without consideration of such integral documents. We must see the framework document and partnership agreement with Great British Energy before we can accept this legislation and I express my deepest concern over the absence of these documents to date. We must scrutinise the framework document to understand and be confident that it is appropriate for the Bill. Currently, the details on the Crown Estate’s partnership with Great British Energy are similarly limited. As I propose with the framework agreement, we must also have sight of the partnership agreement and memorandum of understanding between Great British Energy and the Crown Estate and Amendments 39 and 40 demand that this will be laid before Parliament before the Bill is passed.

This is a major and unprecedented partnership. The Crown Estate estimated that it will result in up to 30 gigawatts of new offshore wind developments reaching seabed lease stage by 2030. Considering this, we must be given the opportunity to read, review and scrutinise the partnership agreement and memorandum of understanding between the Crown Estate and Great British Energy before we accept this legislation.

I agree with the sentiment of the noble Baroness, Lady Smith, in her Amendment 41, and the noble Lord, Lord Berkeley, in his Amendment 42. I echo their concerns over the absence of the publication of the fiscal framework with Wales and its lease extension policy.

I hope the Minister will carefully consider the concerns I have raised and will confirm to the House that the framework document and partnership agreement and memorandum of understanding between the Crown Estate and Great British Energy will be published and laid before Parliament before this Bill is passed.

[Baroness Smith of Llanfaes (PC)]

My Lords, Amendment 41 in my name is included in this group of amendments and is supported by my noble friend Lord Wigley. This amendment would require the publication of an agreed fiscal framework between the Treasury and the Crown Estate before commencement of the Act.

During day one of Committee there were strong arguments made in support of the second group of amendments—a number of them seeking to write a fiscal framework. I believe that there is a shared view from around the Chamber that such a framework should have been drafted and published before Second Reading of this Bill. I am therefore grateful that the Minister, in his response to the second group of amendments, committed to publishing the framework before Report. If that is the case, I will not need to push for an amendment of this kind on Report.

However, I will take this opportunity to highlight some concerns regarding the possible content of the fiscal framework. I am concerned by the possibility of no hard cap on borrowing. I am led to believe that the framework will instead impose a loan-to-value ratio of 25%, which, as the Minister has already noted, would currently be around £3 billion and could go beyond that. To put this into perspective, the Welsh Government fiscal framework has a cap of £l billion on capital expenditure, with an annual borrowing limit of £150 million, which it can borrow from the National Loans Fund or a commercial bank. I ask the Minister: would the passing of this Bill as it stands, alongside a fiscal framework of a loan-to-value ratio of 25%, give the Crown Estate more or less borrowing power than the devolved Government of Wales?

I share the view expressed by the noble baroness, Lady Kramer, that the Crown Estate is no “cuddly” organisation. I look forward to hearing the Minister’s response to my question on how the proposed borrowing powers will compare to the current fiscal powers of the devolved Governments, particularly the Welsh Government.

[Lord Berkeley (Lab)]

My Lords, I will speak to Amendment 42 in this group. It is another attempt at putting a condition on the Government in bringing this Bill into effect, until the Crown Estate in my case has fulfilled the undertakings given on Report of the Leasehold and Freehold Reform Act: specifically, the commitment that it would publish its lease extension policy. I got an answer from the Minister’s colleague in July when I asked when this was going to happen. The answer was very interesting. It was that the Crown would act in accordance with the Leasehold and Freehold Reform Act 2024 and the statutes it amended, subject to specific specified conditions—I do not know what specific unspecified conditions are, but we will leave that out—set out in the undertaking, and the expectation was that the Crown bodies would work with the tenants as they developed these policies.

The problem is of course that the specific specifying conditions referred to refer to the Isles of Scilly and the tenants there—about whom I have spoken to your Lordships many times—are suffering significantly due to their inability to negotiate leases of a reasonable length of time which would be allowed under the new Act.

I was told subsequently that this Crown statement cannot be made in advance of the relevant regulations under the Leasehold and Freehold Reform Act being tabled, because that is the way it always is. But the worry I have is also that the Duchy of Cornwall and Crown Estate may publish them and there will be no opportunity for debating them and offering and suggesting changes to them. This gets back to my question last time we raised this: who is in charge? I was very pleased to get a response from Dr John Kirkhope, an expert on Duchy things, explaining that this is all because of the Duchies of Lancaster and Cornwall (Accounts) Act 1838. It is because the two Duchies got their revenue from George I and George IV and, before that, from being Electors of Hanover rather than Kings or Queens of England

I am told that, under Salic law, a female could not be elector of Hanover, so Queen Victoria suddenly thought that she was going to lose all this money. She persuaded the Parliament of the time to bring in this Bill, which became the Duchies of Lancaster and Cornwall (Accounts) Act 1838. I can read out the whole Act—it is not that long—but I think noble Lords would probably prefer that I did not. It required the two duchies to submit accounts to the Government every year for Parliament to approve.

When I tried to put down a Question to ask for how many years this had taken place, who could tell me which years those were and where the accounts were, I was told by the clerks that it was a bit unclear who was in charge. Was it Parliament, the Government or the Crown? I do not think it would be the Crown, because that would mean the Crown being in charge of itself, which is probably not very desirable and probably not true. I would be grateful if my noble friend the Minister could tell me over how many years these two duchies have submitted accounts and over how many years, if any, they have been debated in either House of Parliament.

My question to my noble friend is: when will the Government publish these Crown Estate policies? Do they have to wait until they have published secondary legislation on leasehold reform? When these special conditions are published, will the Government provide an opportunity for debate? I can see the Crown saying that it is in charge and that nobody can tell it what to do, and so we cannot debate them. The conditions applicable to the Leasehold and Freehold Reform Act will be modified to the extent that the people of the Isles of Scilly, who suffer quite a lot, not just from rents but from transport and a few other things, will not have an opportunity to debate this and see whether the duchies are playing fair. I look forward to my noble friend’s response.

Crown Estate Bill [HL]

Baroness Smith of Llanfaes Excerpts

Report stage
Tuesday 5th November 2024 Lords Chamber

[Lord Murphy of Torfaen (Lab)]

My Lords, I will speak to move Amendment 11 on behalf of my noble friend Lord Hain, who cannot be with us this afternoon. I was present in Committee on the Bill and listened with great interest to noble Lords discussing the issue of devolving the Crown Estate to Wales. I had a great deal of sympathy with the points that were made. I believe it is incongruous that it has already been devolved to Scotland but is not devolved to Wales or Northern Ireland. I speak as someone who was Secretary of State for both Wales and Northern Ireland. Therefore, I welcome the amendment tabled by my noble friend, in so far that it means that there will be commissioners specifically responsible for giving advice to the Crown Estate itself on behalf of Wales and Northern Ireland—which is very good.

I take the point made by the noble Baroness, Lady Humphreys, about consultation, but it is pretty clear to me that it would be a very foolish Government to appoint commissioners who were not approved by the First Minister in Cardiff and the First and Deputy First Ministers in Belfast. It is a start, though it is not exactly everything that was wanted. I agree with the noble Baroness, Lady Humphreys, that my noble friend the Financial Secretary has indeed moved his stance to one which would be agreed to by lots of people in Wales, and I guess in Northern Ireland.

We are living in different times; we now have a Labour Government in Cardiff and in Whitehall. I believe it is important that Governments can get together and talk about these issues in a very special way. That is why this amendment is before us this afternoon: exactly because there have been proper discussions, which I guess the Secretary of State for Wales has also been involved in. Personally, I do not think it goes far enough, but as I said, it is a start.

In the new regime—in this new Britain since the general election—there is a very serious case to be made for a much better relationship between the devolved Administrations and the United Kingdom Government. We have a new Council of the Nations and Regions, which will do a great deal of good for that relationship. We have a situation in Northern Ireland where we now have the Executive up and running, at last, and I congratulate the previous Government on the work they did on that. In this new era, where devolution means something very different from what it has meant over the last number of years, we have to believe that this new relationship will result in decisions such as this one.

I hope that this is not the end of the discussions between the Treasury, the Government, the Welsh Government and the Northern Ireland Executive; I hope it is the beginning of discussions on these issues, not just on this one, but on other ones as well. In my personal view, I hope that, ultimately, the Crown Estate should be devolved. However, we are where we are: the Government have made a concession, the Financial Secretary has very kindly signed my noble friend’s amendment, and I very much look forward to what he has to say in the course of this important debate.

[Baroness Smith of Llanfaes (PC)]

My Lords, I will speak to both amendments in this group. I thank the Minister for the comprehensive letters he wrote to Members who took part in Committee, addressing some of our unanswered questions.

I will set out the context of how I am approaching this group. At Second Reading, I outlined clearly how the draft legislation did not deliver fairness for Wales for four key reasons: first, the Crown Estate profits will not be retained in Wales; secondly, the proposed changes to the Crown Estate board do not include Welsh representation; thirdly, expanding investment and borrowing powers for the Crown Estate may undermine the Welsh Government; and, finally, the Bill does not make provisions to promote the economic or social well-being of Wales. In Committee, I tabled three amendments, and my noble friend Lord Wigley tabled an additional three, which sought to remedy these four key issues from a Welsh perspective—issues on which Plaid Cymru has long campaigned.