Crown Estate Bill [Lords]

Liz Saville Roberts Excerpts

Report stage
Monday 24th February 2025 Commons Chamber

[Henry Tufnell]

The fishing industry has a great history in my constituency, and it is vital that the Crown Estate takes on board the issues in the fishing industry when it looks at leasing and consenting. I thank the hon. Gentleman for that intervention.

I am grateful also to the Minister for his assurances in Committee that the public framework document will give context to clause 3, on sustainable development. However, no text has yet been shared with this House, nor will any be shared until after the Bill receives Royal Assent. This reduces scrutiny and will encourage a retrospective review, rather than a proactive approach. Furthermore, relying on a public framework document reduces this House’s ability to ensure that the clause is properly enforced. What is the mechanism for enforcement in the event of non-compliance? What if the Crown Estate failed to report in good faith—what would the penalties be?

Off the back of Labour’s resounding victory last July, we know there is democratic consensus across the nation on our economic vision, which promotes energy security, regional economic growth and net zero, yet the Crown Estate appeared to be relying on the window dressing of ESG standards to obfuscate its desire to maximise its 12% of profits, at the expense of our nation.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

The hon. Gentleman is making a powerful argument, and I share his concern for communities such as Milford Haven, in which renewable development will be critical in future. I am sure he will also agree that devolution of the Crown Estate would be a key way to make the best use of supply chains, and to ensure that money stays as local as possible, particularly in Wales.

[Henry Tufnell]

I thank the right hon. Lady for her intervention. I sometimes feel, though, that the ideas of her party are slightly for the birds. The idea of devolution—where is their plan? There is no plan. What are the practicalities?

--- Later in debate ---

[James Murray]

The matter that we are considering today, through the two new clauses that I have mentioned, is the proposal by Opposition parties for devolution to Wales. We are not analysing what may have happened in Scotland, historically; we are looking at the proposals put to us in those new clauses, which I am addressing.

To be clear, the cumulative impact of the changes that the hon. Member for Ynys Môn is suggesting in her new clause would likely be to significantly delay the pathway to net zero.

[Liz Saville Roberts]

The Minister said that the Bill would be beneficial to the people of Wales as it stands. Could he quantify that benefit, please?

[James Murray]

If the right hon. Member waits just a moment, I will come to some of the direct benefits for the people of Wales of retaining the Crown Estate in its current form.

It is important to emphasise that the Crown Estate’s marine investments are made on a portfolio-wide basis across England and Wales. Devolving to Wales would disrupt existing investments, as they would need to be restructured to accommodate a Welsh-specific entity. To devolve the Crown Estate at this time would risk jeopardising the pipeline of offshore wind development in the Celtic sea, which is planned for into the 2030s. The Crown Estate’s offshore wind leasing round 5 is spread across the English and Welsh administrative boundaries in the Celtic sea. It was launched in February last year and is expected to contribute 4.5 GW of total energy capacity—enough to power 4 million homes.

In addition to energy, the extensive jobs and supply chain requirements of round 5 will also likely deliver significant benefits for Wales and the wider United Kingdom. Lumen, an advisory firm to the Crown Estate, has estimated that manufacturing, transporting and assembling the wind farms could potentially create around 5,300 jobs and a £1.4 billion boost for the UK economy. Devolution would also delay UK-wide grid connectivity reform. The Crown Estate is using its data and expertise as manager of the seabed to feed into the National Energy System Operator’s new strategic spatial energy plan. On Wales, the Crown Estate is working in partnership with the energy system operator to ensure that its pipeline of Welsh projects—the biggest of which is the round 5 offshore wind opportunity in the Celtic sea—can benefit from this co-ordinated approach to grid connectivity up front.

[James Murray]

GB Energy is for the benefit of the whole of the UK. It is absolutely right to locate its headquarters in Aberdeen, given the strong connection between Aberdeen and use of the assets of the North sea to generate power for the entire United Kingdom. In fact, the hon. Gentleman’s example underlines my point, which is that when different parts of the United Kingdom work together, we can achieve more than we can separately. I thank him for endorsing my point.

It would not make commercial sense to introduce a new entity, with control of assets only within Wales, into a complex operating environment in which partnerships have already been formed. Furthermore, the Crown Estate’s assets and interests in Wales are fundamentally smaller than its assets in England, and would likely not be commercially viable if their costs were unsupported by the wider Crown Estate portfolio. The Crown Estate can take a longer-term approach to its investments and spread the cost of investments across its entire portfolio. A self-contained, single entity in Wales would not have the same ability; neither would it benefit from the expertise that the Crown Estate has developed over decades of delivering offshore wind at scale. A devolved entity would be starting from scratch.

[Liz Saville Roberts]

The Minister has just told the House that Wales is too small and poor to benefit from the devolution of the Crown Estate. That is an extraordinary argument, and I am sure that the Welsh Government will share my amazement. Has he discussed that with his partners in Welsh Labour?

[James Murray]

I think the right hon. Member has misunderstood the point I was making. If we were to have a devolved entity, it would be starting from scratch midway through a multimillion-pound commercial tendering process, just at a time when the Crown Estate is undertaking critical investment in the UK’s path towards net zero—something I am sure she is keen to support.

The commercial viability of all three 1.5 GW floating offshore wind project development areas in the Celtic sea, which straddle the English and Welsh administrative boundaries, benefited from the Crown Estate’s significant investment of time, expertise and capital, which enabled their entry into the market. UK floating offshore wind, an emerging offshore technology that the Crown Estate is supporting, would be particularly vulnerable to market disruption.

It is important to underline that income generated by the whole Crown Estate benefits the people of Wales. As I have noted, the Crown Estate pays its entire net profits into the UK Consolidated Fund each year. That means that much of the revenue already supports public services in Wales, either by supporting UK Government spending in reserved areas or through the funding provided under the Barnett formula and the Welsh Government’s block grant funding.