Crown Estate Bill [ Lords ] (First sitting)

Llinos Medi Excerpts

Committee stage
Thursday 6th February 2025 Public Bill Committees

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

The Crown Estate, until now, has made decisions on the leasing of the seabed based mainly on price and cost and nothing else. This Bill will change that by asking commissioners to “keep under review the impact of their activities on…sustainable development”.

Amendment 1 simply clarifies “sustainable development” and slightly expands on what that means for, for example, net zero targets and economic growth. I ask the Minister to consider that and to assure us that that is what the Bill is intended to do, and that it will be the progress and direction of the Crown Estate.

[Llinos Medi (Ynys Môn) (PC)]

It is a pleasure to serve under your chairship. Ms Furniss. I rise to speak to amendment 6, tabled in my name. The amendment would amend clause 3, which relates to the regard of sustainable development that the Crown Estate commissioners must have when undertaking their activities. It would require the commissioners to set sustainable development objectives for their activities and require them to have regard for UK-wide legislation, such as the Climate Change Act 2008 and the Environment Act 2021. I note that is also the intention of amendment 8.

In addition, amendment 6 would require regard for devolved legislation in England, Wales and Northern Ireland. For Wales, that would include the Well-being of Future Generations (Wales) Act 2015 and the Environment (Wales) Act 2016. Shockingly, child poverty in Wales is set to reach its highest rate in 30 years by the end of this decade, with more than 34% of children living in low-income families. That is 5% up on the current rate, and means that around 32,000 more children in Wales could be pushed into poverty.

The activities of the Welsh Crown Estate could be geared towards helping to address rising child poverty by having regard to the seven wellbeing goals of the Well-being of Future Generations (Wales) Act, such as to develop a more equal, prosperous and resilient Wales. More broadly, this amendment draws inspiration from measures within the Scottish Crown Estate Act 2019, which legislates to ensure that management of the Scottish Crown Estate’s assets is done so that it is likely to contribute to economic development, regeneration and social and environmental wellbeing.

The Crown Estate manages a huge amount of land and natural assets. It is only right that it works with existing devolved legislation across all nations to meet sustainable and wellbeing goals, and to do so by fulfilling clear objectives. I urge the Government to incorporate this aim into the Bill.

[Pippa Heylings]

I will speak to amendment 8, which is similar to amendment 6. It would strengthen clause 3 by ensuring that sustainable development is properly defined within the Crown Estate’s framework document and that this definition explicitly includes a climate and nature duty.

The Crown Estate plays a pivotal role in the management of our land, seas and natural resources. It is well known for its ambition around nature recovery. It is a key player in our offshore wind expansion, biodiversity conservation and sustainable land management, but in areas in which there are multiple competing uses and values, including fishing, marine protected areas, and even highly protected marine areas. Therefore we need reassurances, as were obtained in the other House, that clause 3 does not just require commissioners to keep under review their impact on sustainable development without clearly defining what that means in practice.

I must acknowledge where this amendment started in life, which is with Baroness Hayman’s work in the other House. After much debate, it was agreed that sustainable development must be kept under review by the commissioners, but with a reference to the framework document in which a definition would be provided. Baroness Hayman said:

“What matters is the impact we have and how much we have shifted the dial in terms of what the Crown Estate achieves in support of the Government’s climate and nature objectives.” —[Official Report, House of Lords, 5 November 2024; Vol. 840, c. 1448.]

This amendment seeks to provide clarity and accountability for what was agreed verbally in the other House—that the definition would not be on the face of the Bill, but would be in the updated framework agreement. We need that to ensure there is a consistent benchmark against which decisions can be assessed, in line with the public duty to our climate and nature targets. As the definition within the framework agreement would specifically refer to, those are the climate targets under the Climate Change Act 2008 and the nature restoration goals under the Environment Act 2021.

This would mean that the Crown Estate cannot simply pay lip service to sustainability; it must actively contribute to decarbonisation, biodiversity protection and the UK’s broader environmental goals. Climate change and nature loss are economic risks, as well as environmental ones. Embedding clear, enforceable sustainability duties in the Crown Estate’s framework, according to our existing legislation, will ensure that its investments and operations support long-term resilience and prosperity. This amendment strengthens the existing clause. It does not seek to define it on the face of the Bill, but assures us, as happened in the other House, that the definition is within the framework agreement.

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[The Chair]

Will Llinos Medi wish to press amendment 6 to a Division?

[Llinos Medi]

indicated dissent.

[The Chair]

Amendment 8 has just now been debated with amendment 1. Pippa Heylings indicated that she might press amendment 8 to a Division. Will she wish to move it?

Crown Estate Bill [ Lords ] (Second sitting)

Llinos Medi Excerpts

Committee stage
Thursday 6th February 2025 Public Bill Committees

Brought up, and read the First time.

[Llinos Medi (Ynys Môn) (PC)]

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

[The Chair]

With this it will be convenient to discuss new clause 12—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.

[Llinos Medi]

The new clause places a duty on the Treasury to transfer management of the Crown Estate in Wales to the Welsh Government within two years of the commencement of the Bill. This would correct the glaring imbalance in the constitutional settlement of the UK whereby Wales is unable to direct and benefit from its own natural resources in the way that Scotland can. There is an overwhelming majority in favour of devolving the Welsh Crown Estate; it has been called for by the independent commission on the constitutional future of Wales, the national infrastructure commission for Wales and the Labour Welsh Government. I note, sadly, that the Welsh Government have failed to submit any written evidence in favour of devolution to this Committee.

Half of all Welsh councils have passed motions calling for the devolution of the Crown Estate, with more preparing motions for the coming weeks and months. Devolution is also supported by 58% of the population of Wales, according to the latest polling—a clear majority. The Government have argued consistently that devolution of the Crown Estate would “fragment the market”. I note that that is the same position as the previous Conservative Government, which is why the former Labour Secretary of State for Wales, Lord Hain, was right when he said, during the Lords Bill Committee, that this position

“reflects old, centralised, conservative, anti-devolution Whitehall thinking.”—[Official Report, House of Lords, 14 October 2024; Vol. 840, c. 18.]

Scotland is also a proof of concept that a devolved Crown Estate does not impede investment or fragment the market. If there can be a smooth and orderly transition of the management of the Crown Estate to Scotland, why not the same for Wales?

On Second Reading in the Commons, the Government argued that devolution would complicate existing processes and potentially delay grid connectivity reform, as well as the further development of offshore energy. Let me take those points in turn. First, with proper planning and a guarantee by the UK, working with the Welsh Government, to protect reserved interests, including the national grid, it would reduce the risk of impediments to ongoing reforms. That is why new clause 5 includes provision to ensure that the Treasury acts to secure reserved matters, such as the national grid, as part of the transfer of the management of the Welsh Crown Estate to the Welsh Government.

Secondly, on the potential further delays to offshore development in Wales, a devolved Welsh Crown Estate creates the opportunity for it to be strategically integrated into the planning of sub-sectors, including offshore wind in Wales. Looking again at Scotland, devolution has allowed for greater alignment between marine energy planning and licensing for renewable energy projects, such as offshore wind. With a devolved Crown Estate, the Scottish Government have taken a sectoral marine planning approach for offshore wind. They have made a specific plan for offshore wind development that provides the strategic frameworks for seabed leasing for commercial-scale offshore wind by Crown Estate Scotland. While England, Wales and Northern Ireland will have various forms of marine plans that the Crown Estate must have regard to, they cover a wide variety of policy areas and are not sector-specific.

The Welsh Government have a number of other areas that overlap with the responsibility of the Crown Estate in conducting early development of offshore wind. Those include their devolved responsibility over Welsh ports and responsibility for education in Wales, including skills and apprenticeships. These are crucial for the development of robust local supply chains for offshore wind projects. Wales could integrate a devolved Welsh Crown Estate into Welsh devolved plans and responsibilities, leading to a more strategic and joined-up approach to offshore development. In this way, devolving the Crown Estate is about not just profits from renewable licensing, but driving economic development in Wales. That would surely be a more attractive proposition to developers. The Government cannot continue to hide behind the excuse that devolution creates uncertainty. Yes, devolution will mean change.

[Noah Law (St Austell and Newquay) (Lab)]

Does the hon. Member recognise that the potential devolution of the Crown Estate in Wales could cause no end of issues for the fair distribution of supply chain and economic benefits in communities, alongside their Celtic neighbour in Cornwall, for example?

[Llinos Medi]

That is why we have asked for a two-year approach, so that we can work together. It has happened in Scotland and it is possible. I think it is only fair that we ask the new UK Government, who want to devolve local authorities and regions in England, for devolution of the Crown Estate in Wales as well. It was another Labour Secretary of State, Ron Davies, who said:

“Devolution is a process. It is not an event and neither is it a journey with a fixed end point. The devolution process is enabling us to make our own decisions and set our own priorities, that is the important point.”

I urge this Labour Government to heed those words and support my amendment to devolve the Crown Estate to Wales.

[Pippa Heylings (South Cambridgeshire) (LD)]

I will speak to new clause 5 and to new clause 12 which calls for the devolution of the Crown Estate to Wales. While Scotland has controlled its Crown Estate since 2017, Wales has been left without these powers, despite the fact that vast Crown Estate assets lie within its borders. It is time to correct that unbalance and bring Wales into line with Scotland. Devolving control of the Crown Estate would not only recognise Wales’s status as an equal nation, but deliver substantial economic benefits to communities across Wales. Under the current system, profits from the Crown Estate flow directly to the UK Government.

--- Later in debate ---

[James Murray]

I thank the hon. Member for Ynys Môn for tabling new clause 5, which would require that within two years of the day on which the Act commences, the Treasury must have completed a transfer of the responsibility of the management of the Crown Estate in Wales to the Welsh Government. It would allow the Treasury, by regulations, to make provision about the transfer relating to reserved matters as necessary, and would require it to make provision to ensure that the employment of any person in Crown employment is not adversely affected by the transfer of responsibility.

I also thank the hon. Member for South Cambridgeshire for tabling new clause 12, which would require the Treasury to set out a scheme to transfer all existing Welsh functions of the Crown Estate commissioners to Welsh Ministers or a person nominated by Welsh Ministers. The Welsh functions would consist of the property, rights or interests in land in Wales and rights in relation to the Welsh zone.

The Government believe there is greater benefit for the people of Wales and the wider United Kingdom in retaining the Crown Estate’s current form. Both new clauses would most likely require the creation of a new entity to take on the management of the Crown Estate in Wales which, by definition, would not benefit from the Crown Estate’s current substantial capability, capital and systems abilities. It would further fragment the UK energy market by adding an additional entity and, as a consequence, risk damaging international investor confidence in UK renewables and disrupting the National Energy System Operator’s grid connectivity reform, which is taking a whole-systems approach to the planning of generation and network infrastructure. Its reform aims to create a more efficient system and reduce the waiting times for generation projects to connect to the grid.

[Llinos Medi]

For clarification, does that plan not include Scotland, which has already been devolved?

--- Later in debate ---

[James Murray]

My hon. Friend is absolutely right that a collective approach to projects such as those in the Celtic sea, which cross English and Welsh administrative boundaries, can increase a return for the UK Consolidated Fund, which benefits people in Cornwall, Wales and other parts of the UK. It ensures that we get the best return on our investment through Crown Estate activities. Our concern about the proposition in the new clauses is that it would undermine such revenue generation for all our public services, as well as disrupting the emerging market in offshore floating wind at a critical time, when what investors need is stability, certainty and confidence to invest in a growing sector, not organisational change that might undermine the investment they seek to make.

To pick up further the point made by my hon. Friend the Member for Camborne and Redruth, were Wales to benefit only from the income generated in Wales, it would likely receive zero or negligible benefits for several decades to come, because Welsh assets are relatively new and it will take them time to mature—in the order of 10 to 15 years. The Crown Estate has shown itself to be a trusted and successful organisation, with a proven track record in effective management and profit generation, which are valuable outcomes that we need to be careful not to undermine.

As I set out earlier, the Government supported the inclusion of clause 6, which will require the appointment of a commissioner responsible for giving advice about Wales. I will not repeat what I have already set out, but it is important to underline that that will help to ensure that the board of commissioners for the Crown Estate continue to work in the best interests of Wales, alongside their existing duties as commissioners. That will certainly strengthen the Crown Estate’s ability and mission to deliver benefits for the whole UK.

I am aware that hon. Members may not agree with the points I have made, but I hope that I have set out clearly why the Government believe the existing structure remains the best approach. I hope hon. Members feel able not to press their new clauses.

[Llinos Medi]

I thank the Minister for those comments; I will come back on a few of them.

This debate is about fairness. We are asking for fairness and equity for Wales, and parity with Scotland. It is important to give a bit of history. Our natural resources in Wales have been extracted from our communities yet, as I mentioned earlier, by the end of this decade 34% of children in Wales will live in poverty. If the money we are discussing was spent back in Welsh communities, it would have a dramatic effect.

--- Later in debate ---

Brought up, and read the First time.

[Llinos Medi]

I beg to move, that the Clause be read a Second time.

The new clause would require the Crown Estate commissioners to transfer all profits generated by the Crown Estate in Wales to the Welsh Government on an annual basis. Although figures for the profits generated in recent years by the Welsh Crown Estate are not available, the figures from across the whole Crown Estate show that overall profits have increased dramatically. Since 2021, there has been a 408% increase in Crown Estate profits and therefore the profits from Wales have likely seen a similar level of increase.

Even if one accepted the Government’s argument that devolution of the management of the Crown Estate would involve too much risk, that does not justify profits generated on assets in Wales not remaining in Wales. Therefore, will the Government outline whether they support the principle that all profits generated through Welsh natural resources should be kept in Wales, as is the case with Scotland?

Some argue that Wales would not benefit financially from the devolved Crown Estate given the impact on the devolved Welsh budget. However, the Scottish model already demonstrates how profits from the Welsh Crown Estate could interact with the devolved Welsh budget. In Scotland, all profits from the Scottish Crown Estate are paid into the Scottish Consolidated Fund and redistributed for public spending. These profits interact with the Scottish block grant adjustment mechanism, which was agreed with the Treasury under the 2016 Scottish fiscal agreement.

The mechanism removes a portion of the block grant as the profits from the Scottish Crown Estate increase, to avoid Scotland gaining twice over. That is due to the Scottish budget benefiting from a Barnett share of the expenditure in England, supported by Crown Estate revenues arising from England, Wales and Northern Ireland. Crown Estate Scotland has estimated that net revenue profits in 2023-24 will be £113.5 million. The current reduction to the Scottish block grant under the adjustment mechanism will be £10 million, which should result in an estimated usable revenue from the Crown Estate Scotland for the Scottish Government of £103.5 million.

If Wales followed a similar approach to Scotland, it would likely gain additional revenues from the Crown Estate and would have only a small proportion removed from its block grant in return. That would occur through a Welsh block grant adjustment mechanism to be negotiated between the Welsh Government and the Treasury. Will the Government look at opening discussions with the Welsh Government on retaining profits in Wales and establishing a fair block grant adjustment mechanism to account for rising profits over time? It would be up to the Welsh Government to decide what to do with the money from the Crown Estate.

Plaid Cymru has proposed targeting investment into deprived communities in rural Wales and our deindustrialised valleys, and using the money to develop a Welsh sovereign wealth fund. However, that is not within the scope of the new clause. I hope the Government will listen and agree to the new clause, thereby endorsing the principle that profits generated in Wales should remain in Wales.

[The Chair]

Do you wish to say anything, Mr Wild?

--- Later in debate ---

[James Murray]

I thank the hon. Member for Ynys Môn for tabling new clause 6, which would require that the commissioners must transfer all net revenue profit generated from the Crown Estate’s activities in Wales to the Welsh Government on an annual basis. As The Crown Estate’s operations are not divided into business units for each nation, calculating the exact net profit figure attributable to Wales is not straightforward, because most of the associated costs cannot easily be disentangled from the Crown Estate’s overall costs and would, in places, require subjective judgment.

Furthermore, as I set out earlier, given that the Crown Estate takes a long-term approach to investments, it is anticipated that its investments in Wales could take up to 10 to 15 years to see an appropriate return. Therefore, if net profits were transferred to the Welsh Government now, they are likely to be zero or negligible. I hope that explanation was helpful and that the hon. Member feels able to withdraw the new clause.

[Llinos Medi]

I am unsure how the Minister can say that we would not receive any profits when the Government cannot work out what profits Wales generates. It feels a bit difficult to understand that argument.

I am fighting the corner for fairness for Wales. We have lost all our natural resources and that has been feeding the UK machine. Unfortunately, we are seeing poverty on the rise and deindustrialisation in communities. The new clause would see the profits that are generated given back to those communities, to be spent in those communities and on their future.

Question put, That the clause be read a Second time.

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Brought up, and read the First time.

[Llinos Medi]

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

[The Chair]

With this it will be convenient to discuss the following:

New clause 8—Publication of lease fees—

“In section 2 of the Crown Estate Act 1961 (reports and accounts), after subsection (4) insert—

‘(4A) In their accounts the Commissioners must publish details of all individual lease agreements with public bodies in—

(a) Wales,

(b) England, and

(c) Northern Ireland.

(4B) The information provided under subsection (4A) must include the value and name of the agreement.’”.

This new clause requires the Crown Estate to publish, in its annual accounts, a list of all lease agreements it has with public bodies in Wales, England and Northern Ireland including each lease’s name and valuation.

New clause 9—Publication of separate reports for England, Wales and Northern Ireland—

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

‘(1A) In addition to the report under subsection (1), the Commissioners shall produce a report on the performance of their functions each year in each of England, Wales and Northern Ireland.

(1B) The Commissioners shall lay—

(a) a copy of the report in relation to England before both Houses of Parliament,

(b) a copy of the report in relation to Wales before Senedd Cymru, and

(c) a copy of the report in relation to Northern Ireland before the Northern Ireland Assembly.’”.

The new clause would require that the Crown Estate Commissioners report separately for each country and for the devolved legislatures to have the report laid before them.

[Llinos Medi]

I note that since 2021 the net revenue profit and asset value data for Wales has not been published by the Crown Estate. The Crown Estate says that the reason for this is that:

“While in the past, we have produced illustrative figures for Wales, we have since shifted our focus to a more holistic approach to assessing value and increasing our investment, and we realise that such figures are not a fair reflection of value. The previous Wales numbers we published have not included a cost allocation.”

In an answer from September 2024 to my written question asking about the merits of producing regular disaggregated assets and revenue data for Wales, the Government said:

“To achieve efficiency in its operations, the Crown Estate runs many of its functions at a whole enterprise level. As a result, separate financial statements for Wales would not reflect the fact that expenditure is incurred for the benefit of the whole portfolio, and it is not possible to disaggregate net revenue profit attributable to Wales.”

I also note that the Government accepted an amendment to the Bill in the House of Lords to include national commissioners for England, Wales and Northern Ireland on the board of the Crown Estate. The amendment also grants Welsh Ministers and the Executive Office in Northern Ireland the right to be consulted about the Welsh and Northern Irish appointments. Therefore, can the Government outline how these national commissioners will be able to advise on the affairs of each respective nation if there is no process by which the Crown Estate can measure and delineate the profits and costs incurred separately in England, Wales and Northern Ireland?

New clause 7 would address this gap by requiring annual reporting of both asset value and revenue across all nations under the Crown Estate, and by doing so, it would require the Crown Estate to develop a way to measure asset value and revenue in a consistent manner. I hope the Government will accept this amendment to strengthen the ability of national commissioners to fulfil their intended role to advise and act in the interests of the nations they represent on the Crown Estate board.

I turn to new clause 8. Under the current arrangements, many public bodies, such as local authorities, pay lease fees to the Crown Estate simply to lease the land in their own area. However, details of these are not routinely published. In response to my written question in October 2024, the Government noted that,

“Publishing details of those fees would risk prejudicing the commercial interests of both The Crown Estate and the local authorities involved.”

However, local authorities are able and willing to provide this information through freedom of information requests. These FOIs have revealed that in 2023 local authorities in Wales paid fees amounting to well over £300,000 a year. At a time when council budgets are under enormous pressure, how can these fees be justified? This is public money that vital council services such as housing, education and social care are being deprived of.

We should be having a debate on the merits of these fees. This has to start with total transparency and a full account of what is being charged and where. That is why I have tabled new clause 8, which requires the Crown Estate to publish in its annual accounts a list of all lease agreements it has with public bodies in Wales, England and Northern Ireland, including each lease’s name and valuation. I ask the Government to support my new clause for the sake of transparency and to agree that, where public money is being spent, the public should be able to see where this money is going.

New clause 9 is similar to new clause 8. It would require that the Crown Estate commissioners report separately for England, Wales and Northern Ireland, and that the devolved legislatures have these reports laid before them. The Crown Estate already produces highlights reports for Wales and Northern Ireland. This amendment would place this type of reporting on a statutory footing by ensuring that these reports are made available to both the Senedd and the Northern Ireland Assembly, and would allow for greater transparency and engagement between the Crown Estate and the devolved legislatures. Diolch.

[James Murray]

New clause 7, tabled by the hon. Member for Ynys Môn, would require the Crown Estate to disaggregate reporting in its accounts to show capital and revenue figures for the activities of the Crown Estate in England, Wales and Northern Ireland. At present, the Crown Estate’s operations are not divided into business units by nation. It would therefore not be straightforward to disaggregate reporting in that way. It would be a complex task, requiring a series of highly subjective judgments to be taken. Although it is possible to identify gross revenues from each nation, reporting them without any representation of the costs associated would be entirely misleading. However, the Crown Estate does publish broader information relating to its activities in England, Wales and Northern Ireland as part of its annual report and accounts. The Government’s view is that it remains appropriate for the Crown Estate to continue its reporting on a whole-business basis. I hope that that explanation is helpful and encourages the hon. Member to withdraw her new clause.

--- Later in debate ---

As the Crown Estate’s operations are not divided into business units by nation, attempting to disaggregate performance in each nation is a complex task. The division of the Crown Estate’s performance by nation would inevitably require a high degree of subjective judgment that would likely be misleading. It is therefore the Government’s view that it remains appropriate that the Crown Estate continues to report on a whole-business basis, supplementing its annual report with a Wales review that highlights its activities in Wales. On that basis, I hope the hon. Member feels able to withdraw the new clause.

[Llinos Medi]

This is a leadership discussion—it is about the leadership we are asking the Government to show in giving Wales the fairness it deserves. We are asking for clarity around public money. I am a bit concerned that there should be a commercially sensitive discussion around public money, which is meant to be transparent. We can get it through freedom of information requests, so it should be easy to collate that information so that the people of Wales and across the United Kingdom can see how their local authorities are spending their money on the Crown Estate and where that is spent afterwards.

In addition, I am unclear about the role of the commissioners. The information that we are asking for in these new clauses would strengthen the role of the commissioners and give them the ability to fulfil their role for the benefit of those regions whose concerns they are there to voice. I will press this matter to a vote.

Question put, That the clause be read a Second time.

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.

Christmas Adjournment

Llinos Medi Excerpts

Thursday 19th December 2024 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

I believe that the Government should be holding a debate on the UK-wide impact of the closure of the port of Holyhead. Although ports in Wales are a matter for the Welsh Government, international trade is a matter reserved to the UK Government, and Holyhead’s strategic location is key to the UK economy. Westminster cannot ignore this issue.

The port sustained serious damage in the aftermath of Storm Darragh, and all sailings have been cancelled until 15 January at the very earliest. The storm brought gusts of up to 94 mph and caused enormous disruption to the port, which provides the main sea route between north Wales and Ireland and is the UK’s second busiest roll-on roll-off port. Its closure just before Christmas has had a direct impact on livelihoods and businesses on the island: the sudden ending of freight traffic means that businesses have seen their work vanish overnight.

This is pushing local businesses to breaking point. The owners of Royalty Recruitment, a family-run business, told me that they had had to let 10 brand-new staff members go, three of whom had only recently joined them. Holyhead Truck Service is another local business that has been affected; it has seen its work dry up completely, as 40% of its annual income is from mechanical work for Irish companies. This time of the year would usually be the busiest period for these businesses, but now they are facing huge job cuts and reduced demand owing to the closure of the port. The sudden loss of income is unsustainable for many businesses, and job losses will push families into financial hardship, leaving them struggling to pay their bills.

In a statement earlier this week, the Secretary of State for Wales did not announce any direct support from the UK Government to address the crisis. I am certain that if we were talking about the Port of Dover or an airport in London being closed for at least a whole month, there would be a huge effort to get the site open again and to support the thousands of supply-chain jobs affected, but so far Holyhead has been treated as an afterthought. The UK Government must recognise the huge impact that the closure of the port will have not only on trade—given that total UK exports to Ireland amount to £54 billion and that Ireland is the UK’s third largest export partner—but on the livelihoods of the people of Ynys Môn and north Wales. They should set up a hardship fund to support businesses and families directly affected by the closure, as well as those involved in the supply chain. The funding should be directed towards the council and third sector organisations that are best placed to offer financial and other support to those struggling.

The port operator says that the earliest the port may open is 15 January. However, that is with weather permitting, and I fear that more cold and stormy weather at this time of year will push the date back. Once the port reopens, the damage done to the local economy will take time to heal. Decisive action by both the UK and Welsh Governments is needed to minimise the damage and the suffering that people will be feeling. As climate change fuels more violent storms, the Port of Holyhead will be vulnerable to closure again.

The Chair of the Welsh Affairs Committee, the hon. Member for Newport West and Islwyn (Ruth Jones), has joined my calls for support for businesses. She wrote to the Secretary of State for Business and Trade yesterday to seek an update on the support that the UK Government are providing to get the port back up and running, and to all businesses and employees impacted by the closure. The Government must step up and provide the emergency funding needed to get us through this difficult period of time.

Budget Responsibility Bill

Llinos Medi Excerpts

2nd reading
Tuesday 30th July 2024 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

Diolch yn fawr, Madam Deputy Speaker. Before I begin, I extend my deepest condolences on behalf of Plaid Cymru to all the families affected by the horrific attack on innocent children in Southport. I congratulate the hon. Member for West Ham and Beckton (James Asser) on his maiden speech. His constituency has some similarities with mine, which is is a place of hard work, community spirit and plain speaking. We will get along well.

It is an honour to deliver my maiden speech. I am deeply humbled by the fact that the people of Ynys Môn, my home island that I love so dearly, have put their faith in me as their MP, and I will work hard to be worthy of that trust. Ynys Môn is known for its political unpredictability. We have been represented by four different parties since the 1950s, making elections here quite the spectacle—a treat for political anoraks, but nerve-racking for candidates. The people of Ynys Môn keep their representatives on their toes, and I thank them for that. It reminds me that in every decision and every debate, they come first.

Reflecting on my constituency’s rich political history, I first mention Megan Lloyd George, the first female MP for a Welsh constituency and a pioneer for women in politics. She served Ynys Môn as a Liberal and an advocate of home rule for Wales. Her legacy paved the way for greater female representation in this House. She was followed by Labour’s Cledwyn Hughes, whose parliamentary career of 28 years included his tenure at the Welsh Office, during which the Welsh Language Act reached the statute books in 1967. That was a significant milestone in the history of our language.

Cledwyn Hughes was followed by a Conservative, Keith Best, until 1987, when Ynys Môn made history by electing its first-ever Plaid Cymru MP. I owe Ieuan Wyn Jones a huge debt of gratitude, and I am honoured to follow in his footsteps. His legacy remains unmatched, and I thank him for his continued support and guidance. Labour’s Albert Owen took the reins in 2001. Albert served our island diligently for 18 years, always ready to work across party lines to serve the people of Ynys Môn. The constituency turned blue again in 2019. I pay tribute to Virginia Crosbie, whose work ethic I greatly admire.

Now Ynys Môn is Plaid Cymru green again. It was yet again very close; there were 637 votes in it. Yes, Ynys Môn is the gift that keeps on giving on election night, but I am very aware that this nail-bitingly close result makes it my duty to work even harder to earn the trust of the people in all communities on Ynys Môn, whether they voted for me or another party, or even chose not to vote.

Budget responsibility is the topic of today’s debate, which offers me an opportunity to reflect on my professional background. From 2017 until my recent election, I was the leader of Ynys Môn county council. During that time, I witnessed at first hand the human consequences of the austerity measures imposed by successive Governments. Those decisions forced us to make cuts to essential services—decisions made not by choice, but by necessity, due to the reckless fiscal policies set in Westminster. I recognise the important principle of budget responsibility behind this Bill. It is a sensible step to ensure that the Government’s plans are independently assessed by the Office for Budget Responsibility before implementation. That oversight is important to prevent the fiscal mismanagement that led to the previous Government’s disastrous mini-Budget, which included the largest package of tax cuts in 50 years without any efforts to make the public finance numbers add up. Such a situation must never be allowed to occur again.

However, I have a niggling concern that the Government might use the chaos of their predecessors as an excuse to shy away from taking bold economic decisions. Child poverty in Ynys Môn stands at a staggering 35%. We need bold measures, such as the abolition of the two-child cap on benefits, and real investment in our services and infrastructure to tackle the pressing issues. I fear that tinkering around the edges will not be enough to drive growth in our economy. We need real investment to attract well-paid jobs and bring some dynamism back into our economy.

Just today, we saw the Secretary of State for Wales refuse to commit to the electrification of the north Wales main line. We recognise the fiscal difficulties facing the Government, but investment in the economy should not simply be seen as a cost to be cut. I urge the Government not to let the shock of the mini-Budget deter them from making the necessary investment in our communities.

As council leader, I saw how the previous Conservative Government undermined our plans for the Wylfa nuclear site. We had plans to create high-quality, long-term jobs and build skills and supply-chain opportunities. Our efforts also focused on ensuring that any development would respect our island’s unique environment and culture and the Welsh language. Sadly, the Conservative Government pulled the plug in 2019.

Now more than ever, we need clarity and commitment from the new Government. Like many areas, Ynys Môn is bleeding young people, who leave in search of better opportunities. We need high-skilled, well-paid jobs to sustain our communities and ensure that they flourish.

My journey into politics was not typical. As a farmer’s daughter, I grew up understanding the value of hard work, watching my father, a first-generation farmer, establish a farm alongside my mother. I left school at 16 and undertook a care course. By the age of 18, I was working as a carer in our care homes. I have been a carer, a teaching assistant and a youth worker. I have also had several other roles, including selling eggs and milk recording on milk farms. In 2013, I entered politics, standing as a county councillor. Like many women, I initially lacked the confidence to step forward—I was forced into it—but by 2015 I had become the leader of the opposition, and in 2017 I became the first female leader of Ynys Môn council.

My personal journey has not been typical, either. In 2015, I found myself homeless with my two children. It was tough, but now I am the MP for Ynys Môn. [Hon. Members: “Hear, hear!”] As for the most important lesson from my experience, I want to inspire other women to believe that “If she can do it, I can do it.” I aim to bring women along on this journey, regardless of their starting point. I will always be filled with pride when women come up to me to say, “Thank you. I’ve gone for it because of you.” I am not here for myself. I want people in Ynys Môn who might also have been through a tough time to see my work here and be inspired to put themselves forward.

Ynys Môn is known as Gwlad y medra, which translates to the land of the can-do. That attitude has always guided my approach to politics, and will continue to do so in my work here. I look forward to cracking on with the job. I will work with colleagues from across the House with a can-do attitude to secure a brighter future for the people of Ynys Môn. I thank my two children, Elliw and Twm, for their continued support, which has ensured that their mother is stood here as the MP for Ynys Môn. Diolch yn fawr iawn.

[Madam Deputy Speaker (Ms Ghani)]

I call Rosie Wrighting to make her maiden speech.