Wales Bill Debate

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Department: HM Treasury
Tuesday 6th May 2014

(10 years, 6 months ago)

Commons Chamber
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Owen Smith Portrait Owen Smith
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On a point of order, Mr Crausby. Is it in order for the Secretary of State—who we have not heard from for, I think, fully 245 minutes—to dwell for almost the entirety of his speech today on continuing the war on Wales and the Welsh NHS, none of which is addressed in this Bill, which is meant to be about the financial circumstances post-the Silk commission as they relate to Wales, not the NHS in Wales?

David Crausby Portrait The Temporary Chair (Mr David Crausby)
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The Minister is addressing the clauses. It is up to him what he says in his speech.

David T C Davies Portrait David T. C. Davies
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Further to that point of order, Mr Crausby. Given that Labour Members of the National Assembly for Wales’s health Committee are refusing to hear this evidence and are refusing to hear from important witnesses, is it not absolutely right that my right hon. Friend the Secretary of State should continue to raise the issue of the scandalous standards of care in the NHS in Wales?

David Crausby Portrait The Temporary Chair
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As long as—[Interruption.] Order. As long as the Minister is talking to the amendments, he can say what he likes.

David Jones Portrait Mr David Jones
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Thank you, Mr Crausby. It is clear that the hon. Member for Pontypridd (Owen Smith) does not want to hear what we are doing to remedy the problems in the Welsh health service.

Work is under way, led by the Department of Health and the Wales Office, to find practical and durable solutions to the problems which patients living on both sides of the border face on a daily basis. In March, the Secretary of State for Health made a commitment to this House that, by the end of this year at the latest, we would find a solution to the problems faced by English patients who must currently use NHS services in Wales but who would prefer to receive their treatment in England. My right hon. Friend has also asked the chief executive of NHS England to investigate the possibility of the English NHS providing treatment to Welsh patients in areas where the Welsh NHS proves unable to provide the care they need.

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Elfyn Llwyd Portrait Mr Llwyd
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I beg to move, That the clause be read a Second time.

David Crausby Portrait The Temporary Chairman (Mr David Crausby)
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With this it will be convenient to discuss the following:

New clause 8—Crown Estate in Wales: Revenue—

‘Revenue raised by the Crown Estate in Wales shall be paid into the Welsh Consolidated Fund.’.

New clause 9—Crown Estate Commissioner with special responsibility for Wales—

‘(1) In Schedule 1 to the Crown Estate Act 1961 (Constitution etc of Crown Estate Commissioners), paragraph 1 is amended as follows.

(2) After sub-paragraph (3) insert—

“(3A) One of the Commissioners shall be appointed as the Crown Estate Commissioner with special responsibility for Wales, who must be a person who knows about conditions in Wales as they relate to the functions of the Commissioners.”.

(3) After sub-paragraph (4) insert—

“(4A) The Crown Estate Commissioner with special responsibility for Wales shall be appointed on the recommendation of the Chancellor of the Exchequer, who shall consult the Welsh Ministers before making that recommendation.”.’.

Elfyn Llwyd Portrait Mr Llwyd
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Everyone will be pleased to hear that I shall be fairly brief. [Interruption.] I sense the disappointment. I am sorry to let the Chamber down at this late hour.

New clause 7 is about the transfer of ownership and control of the Crown estates in Wales, new clause 8 is about the consequent transfer of revenue and new clause 9 is about appointing a Crown Estate commissioner with special responsibility for Wales. As has been said in various debates by various colleagues, we have set about preserving the integrity of the Silk recommendations, so in speaking to these new clauses, which stand in my name and those of my two honourable colleagues, my hon. Friends the Members for Arfon (Hywel Williams) and for Carmarthen East and Dinefwr (Jonathan Edwards), I shall first deal with new clause 9.

New clause 9 is the recommendation of the cross-party commission on devolution, which was chaired by Paul Silk. The recommendation is less than we wanted, but it recognises what was agreed as part of a compromise. That is why it is disappointing to see it left out of the Bill by the Government. The new clause deals with the appointment of a Crown Estate commissioner with special responsibility for Wales.

The Crown Estate has a diverse range of holdings throughout Wales. As well as agricultural land and mineral rights, these include the sea bed out to the 12-mile nautical limit, within which it is responsible for issuing, for example, permits and leases for wind energy creation. However, the Crown Estate is not accountable to the people of Wales, and all profits from its holdings, both onshore and offshore, are passed to the UK Government. These are likely to grow substantially in the future, mainly due to the demand for renewable energy. We in Plaid Cymru believe that ownership and control over the Crown Estate in Wales should be transferred to the Welsh Government. That is the issue we are probing through new clauses 7 and 8.

The Crown Estate in Wales is likely to be increasingly important, especially in the context of its role, as I said, in developing renewable energy. Devolving the Crown Estate is essential in order for Wales to have a say in how energy projects are planned and to see financial gain from the natural riches that are harvested by them, whether that is renewable or other forms of energy.

We welcomed the announcement roughly a year and a half ago by the United Kingdom Government establishing the coastal communities fund, which will increase investment in Wales based on a share of Crown Estate revenues above the existing Barnett formula allocation, but we need to make progress and build on this.

The Silk commission recommendation of a Crown Estate commissioner with special responsibility for Wales was reached as a compromise. We believe that the recommendation should be adopted as soon as possible and the Bill seems to us to be the vehicle for so doing. The London Treasury is the Crown Estate’s sponsor Department, with the Economic Secretary as its sponsoring Minister. The Crown Estate is led and directed by its board of eight commissioners. The board includes a member who represents Scotland, but no other part of the United Kingdom is specifically represented. The Scottish Government are consulted on the appointment of the member representing Scotland.

Although Wales accounts for a relatively small percentage of the value of the Crown Estate’s portfolio, amounting to roughly £8.6 million, we believe that that will increase substantially in the future and that it should be within the control of the Government and the Assembly of Wales. Dr Richard Cowell of Cardiff university suggested in his evidence to the Silk commission that

“bringing ownership of the Crown Estate in Wales to the Welsh Government might enable a better quality of debate about the kind of off-shore renewable energy development pathway that is appropriate for Wales, and open up discussion on how the royalties from resource exploitation should be best invested.”

We believe the Wales Bill, given its financial and taxation remit, should include the same provision as is made for Scotland in the Scotland Act 2012, which provides for a Crown commissioner with special responsibility. Not only should Wales be equal with Scotland in this regard, but all the main parties have agreed to it as part of the recommendation of the Silk commission. Recommendation 17 of the second Silk report states that

“there should be a Welsh Crown Estate Commissioner”

and that

“a Crown Estate office should be established in Wales”.