Crown Estate Bill [Lords]

Caroline Nokes Excerpts

Report stage
Monday 24th February 2025 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Caroline Nokes)]

With this it will be convenient to discuss the following:

New clause 2—Marine Spatial Planning: coordination—

“In relation to any decisions made about marine spatial priorities, the Crown Estate must—

(a) ensure that the decisions are coordinated with the priorities of the Marine Maritime Organisation, and

(b) consult any communities or industries impacted by the plans, including fishing communities.”

Marine plans guide marine use and regulation for sustainable development, balancing the environment, economy, and society. This new clause ensures the Crown Estate collaborates with DEFRA's Marine Spatial Prioritisation through the MMO, using its expertise to inform decisions, preventing conflicts of interest from its new borrowing and investment powers.

New clause 3—Sustainable development: community benefits—

“(1) Before making any investment decision, the Commissioners must assess—

(a) plans for community benefits for local communities, and

(b) plans for community benefits for coastal communities of offshore activities.

(2) In section 3(1) of the Crown Estate Act 1961, at end insert—

‘(1A) The Commissioners must transfer at least 5 per cent of all net profit generated from the Crown Estate’s activities to local communities impacted by those activities.’”

This new clause would require the Commissioners to ensure their activities benefit local communities, including coastal communities, and that 5% of any profits would be transferred to local communities.

New clause 4—Devolution of Crown Estate powers to Wales—

“(1) The Crown Estate Act 1961 is amended as follows.

(2) After section 7 (powers of Minister of Works in Regent’s Park) insert—

‘7A Commissioners’ functions in Wales

(1) The Treasury must set out a scheme to transfer all the existing Welsh functions of the Crown Estate Commissioners (“the Commissioners”) to the Welsh Ministers or a person nominated by Welsh Ministers.

(2) The existing Welsh functions under subsection (1) are the Commissioners’ functions relating to the part of the Crown Estate that, immediately before the transfer date, consists of—

(a) property, rights or interests in land in Wales, and

(b) rights in relation to the Welsh zone.

(3) The Secretary of State must by regulations set a date to implement the scheme under subsection (1) to the transfer of functions to the Welsh Ministers or a person nominated by Welsh Ministers.

(4) A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of either House of Parliament.’”

This new clause would require the Treasury to devolve Welsh functions of the Crown Estate Commissioners to Welsh Ministers or a person nominated by Welsh Ministers.

New clause 5—Limit on the disposal of assets—

“After section 3 of the Crown Estate Act 1961, insert—

‘3A Limit on the disposal of assets

(1) The Commissioners must inform the Treasury if the disposal of assets of the Crown Estate will be of a value totalling 10% or more of the Crown Estate’s total assets in a single year.

(2) The Treasury must approve of any disposal of assets above the threshold in subsection (1) and the Chancellor of the Exchequer must lay a report before Parliament within 28 days of being notified by the Commissioners.’”

This new clause requires the Crown Estate Commissioners to notify and seek HM Treasury approval for the disposal of assets totalling 10% or more of the Crown Estate’s total assets.

New clause 6—Partnership agreement: the Crown Estate and Great British Energy—

“The Chancellor of the Exchequer must lay before Parliament any partnership agreement between the Crown Estate and Great British Energy.”

This new clause requires the Chancellor of the Exchequer to lay before Parliament any partnership agreement between the Crown Estate and Great British Energy.

Amendment 1, clause 1, page 1, line 26, at end insert—

“(3) The Treasury must by regulations limit borrowing to a net debt to asset value ratio of no more than 25 per cent.

(4) A statutory instrument containing regulations under subsection (3) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

This amendment would limit the amount the Commissioners may borrow by regulations.

Amendment 4, page 1, line 26, at end insert—

“(3) The Chancellor of the Exchequer must limit borrowing by the Crown Estate under this section by regulations made by statutory instrument, and these regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(4) The first set of regulations made under subsection (3) must limit borrowing to a net debt to asset value ratio of no more than 25 per cent.”

This amendment would limit the amount the Commissioners may borrow by regulations subject to the affirmative procedure for statutory instruments.

Amendment 2, clause 3, page 2, line 17, at end insert—

“(3B) Any framework document published by the Chancellor of the Exchequer, the Crown Estate and the Commissioners must define ‘sustainable development’ for the purposes of this Act.

(3C) The definition under subsection (3B) must include reference to a climate and nature duty.

(3D) A ‘climate and nature duty’ means a duty to achieve any targets set out under Part 1 of the Climate Change Act 2008 or under sections 1 to 3 of the Environment Act 2021.”

This amendment would ensure that this act’s Framework Agreement must define “sustainable development”, and that the definition must include reference to a climate and nature duty.

Amendment 3, page 2, line 17, at end insert—

“(3B) In pursuit of the objective under subsection 3A, the Commissioners must assess the adequacy of protections against coastal erosion in areas affected by their offshore activities.”

This amendment would require the Commissioners to assess the protections against coastal erosion in areas where landfall is made for offshore projects.

Amendment 5, page 2, line 17, at end insert—

“(3B) In keeping the impact of their activities under review, the Commissioners must have regard to―

(a) the United Kingdom’s Net Zero targets;

(b) regional economic growth; and

(c) ensuring resilience in respect of energy security.”

This new sub-section would require the Crown Estate Commissioners, in reviewing the impact of their activities on the achievement of sustainable development, to have specific regard to the United Kingdom’s Net Zero targets, regional economic growth, and resilience in respect of energy security.

[Llinos Medi]

New clause 1 transfers the management of the Crown Estate in Wales to the Welsh Government within two years of the commencement of the Act. The principle behind it is simple: the people of Wales should control and benefit from their own natural resources. For much of Welsh history, that has not been the case, with resources often exploited for the benefit of others. From copper in Amlwch in Ynys Môn, slate in Gwynedd, steel in Port Talbot and Newport, to the coal across the south-east valleys, the rivers of wealth that flowed from those industries were sucked out of our communities—and those communities have since been ravaged by poverty.

Wales is blessed with natural wealth and brilliant people, yet we are also a nation afflicted with deprivation, following years of extraction. Shocking new figures show that child poverty in Wales is set to reach 34.4% by the end of the decade. That is the legacy of our past, in which wealth generated was not used to benefit the Welsh economy or communities. Today, in 2025, that extractive pattern is being repeated with Wales’s green wealth.

Wales has immense renewable energy potential in our windy seas and long coastlines—we can see that demonstrated in the Morlais project on Ynys Môn—but the seabed, along with thousands of acres of land, is controlled by the Crown Estate. Renewable energy projects using these resources are expanding rapidly and delivering profits. We see that in the value of the Crown Estate, which sky-rocketed from £96 million five years ago to £853 million in 2023. However, all profits generated by the Crown Estate in Wales are transferred to the Treasury. This green wealth, just like the wealth from coal and other minerals in the past, is being sucked out of our nation. Millions of pounds generated on the Welsh Crown Estate is taken out of Wales each year, away from our communities who have borne the brunt of decades of economic decline.

In 2017, Scotland gained control over the Scottish Crown Estate and ensured that all profit was kept in Scotland. Devolution has generated millions for the Scottish public purse, with funds going directly to deprived communities such as those in the highlands. Why do the Scottish people get the benefit from their own water, wind and sea resources, but the people of Wales cannot? It is simply not credible for the Government to continue to say that devolution is too complicated, too costly and too time-consuming. These are all issues that can be addressed with proper planning and resourcing. Scotland’s Crown Estate was devolved in 2017. It is ludicrous to say that the Welsh Crown Estate cannot be devolved in a similar way. In Scotland, interim measures were put in place to ensure a smooth transition from the point of devolution until the implementation of a long-term framework for managing assets. New clause 1 takes a similar pragmatic approach by introducing a transition period. It worked in Scotland; it can work for Wales, too.

Throughout this whole debate, the Government have still not addressed the principle of control, so I would like the Minister to answer directly: do his Government believe that the people of Wales should have democratic control over their own natural resources? The people of Wales certainly believe so. Polling shows that majority support among the Welsh public for the devolution of the Crown Estate is higher than ever. It is also supported by the Welsh Labour Government. A majority of councils in Wales have passed motions in support of devolution; Wrexham council did so just last week, with the support of its Labour group. More councils will follow suit, and we may very likely have all councils in Wales declaring support for devolution in the near future. There is a mandate from right across Welsh society for devolution. Members of Parliament would do well to remember that they are here to serve and represent the people, and that the people of Wales have clearly made their views known on this matter.

In closing, I return to the principle that I outlined at the beginning of my speech. Do Members of this House believe that the people of Wales should, after centuries of exploitation, finally be given the right to control and benefit from their own natural resources? If they believe in that principle, I urge them to join me in the voting Lobby.