Crown Estate Bill [Lords]

Llinos Medi Excerpts

2nd reading
Tuesday 7th January 2025 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

The Crown Estate owns 65% of Wales’s foreshore and riverbeds, and more than 50,000 acres of land. Recent rising demand for renewable energy projects has resulted in the value of the land sky-rocketing. In 2007, the asset value of the Crown Estate in Wales was £21.1 million, and in 2023 this reached £853 million. Correspondingly, profits generated from these assets have also increased. Net revenue profit across the Crown Estate rose from £345 million in 2020 to £1.1 billion in 2024. Profits generated from Wales’s natural resources are, however, not retained for the Welsh public purse; instead they leave Wales and are sent to the Treasury and the sovereign grant. In contrast, in Scotland the Crown Estate is devolved and profits from Scottish natural resources are transferred to the Scottish Government. In 2024 the sum was estimated to be a record £108.3 million. How can the Government justify Welsh profits being sent to the Treasury and the monarch when in Scotland they are held back and put back into the Scottish purse? The situation is worse than that, with Welsh councils having to pay lease fees simply to use the land which is owned by the Crown Estate. In 2023 the sum was nearly £300,000. With huge pressures on council budgets, how can that be justified?

In the age of coal, Wales saw a huge extraction of wealth from our communities. In 2025, Wales is now experiencing a similar process of extraction of our green wealth.

[Catherine Fookes (Monmouthshire) (Lab)]

The reality is that Plaid Cymru Members are divided on this issue and are confused as well. Their colleagues in the other place supported provisions in this Bill to create a new commissioner with special responsibility for Wales, yet now the hon. Member is saying only devolution will do. Why does she think Plaid Cymru colleagues in the other place are wrong?

--- Later in debate ---

[Llinos Medi]

I will come on to answer that question and perhaps show a pragmatic way of working forward.

As I said, in 2025 Wales is now experiencing a similar process of extraction of our green wealth and we cannot let this happen. As in Scotland, it is for the people of Wales to have control and derive the benefit from all profits generated from our own resources. However, the Bill makes no mention of devolving the Crown Estate to Wales despite the fact that the new investment and borrowing powers under the Bill may allow the Crown Estate to generate £100 million more a year in profits for the Treasury. None of this will be retained by the Welsh Government.

In the other place, Lord Hain’s amendment, supported by Plaid Cymru, has ensured that there will be Welsh representation on the Crown Estate board. While we welcome that as a step forward it still does not address the fact that membership of the Crown Estate board is largely outside of democratic control as it is the monarch who appoints the commissioners who make investment and borrowing decisions, not Parliament or the Senedd.

[Claire Hughes (Bangor Aberconwy) (Lab)]

Devolving the Crown Estate would needlessly jeopardise the role it is playing now to deliver good clean energy and jobs, which are needed across Wales, including in the hon. Member’s constituency, which neighbours mine. These jobs are much needed across north Wales, as she well knows. The hon. Member is a great champion for her constituency, but does she really want a delay in delivering the jobs in clean energy projects that are needed so much across Wales?

[Llinos Medi]

I will come on to that, too, because as an energy champion for my constituents for many years I am fully aware that we do not want any delay but there is a way of working that through slowly while also benefiting from Scotland’s experience.

Plaid Cymru has been leading the calls for devolution of the Crown Estate for many years, and in July 2023 the Senedd passed a Plaid Cymru motion calling for the devolution of the management of the Crown Estate to the Welsh Government. Only through the devolution of the Crown Estate can the people of Wales have democratic control over their natural resources.

Plaid Cymru will be bringing forward an amendment to devolve the Crown Estate to Wales. Although we will be looking to engage constructively with the Government, including on how to support the Welsh Government, the Crown Estate and energy developers to prepare for devolution, they cannot simply ignore the direction of travel. There is an overwhelming consensus in Wales for devolution. It is supported by the Welsh Labour Government and the independent commission on the constitutional future of Wales as well as 58% of the people of Wales. It is time for the Government to listen and devolve the Crown Estate to Wales.