Crown Estate Bill [HL]

Lord Roborough Excerpts

Committee stage
Tuesday 22nd October 2024 Lords Chamber

[Lord Teverson (LD)]

My Lords, I want to make a very brief intervention on the amendment in the name of the noble Earl, Lord Leicester, and I would like some assurance from the Minister on some important points that the noble Earl made.

One of the points the noble Earl made was that we need to look at offshore developments not one by one in sequence but holistically. We are moving now into new waters with floating offshore wind; I am particularly aware of the Celtic Sea development, but obviously there is also floating offshore wind further out in Scottish waters. I would very much like an assurance from the Minister that, before those developments take place, in terms of actual building and specific location, there will be an overall environmental assessment for the whole of the future developments as opposed to each one individually. We want to understand the total effect rather than those individual effects.

We also need to consider the issues around the landing of those electric cables and all the infrastructure. In the North Sea, we have had the issue of a spaghetti of energy cables coming into various places all around it, and now, far too late, we are looking at trying to change that into a rational grid where we can have greater interdependence and greater trading but also fewer landing areas in terms of environmental damage.

In an earlier group, I raised the issue of a potential conflict of interests between the Crown Estate wanting to have offshore wind and therefore doing its own environmental assessments for these developments to be oven-ready—to use that phrase so badly used in the past. I very much wish to be assured by the Minister that there will be that global view of future areas of development, particularly of floating offshore wind, rather than doing it piecemeal in the ineffective and rather damaging way that we have done in the past.

[Lord Roborough (Con)]

My Lords, I thank my noble friends Lord Forsyth of Drumlean, Lord Douglas-Miller and Lord Leicester for these important amendments. I first declare my interests as set out in the register as the owner of fishing rights in both Devon and Sutherland, as a developer and owner of renewable energy assets and as president of the South West Rivers Association.

Amendments 37 and 37G require the Crown Estate to take responsibility for the environmental impact of salmon and broader fish farming, as well as the welfare standards in those industries. This applies both to existing licensed salmon and fish farms as well as new applicants for licences.

We support sustainable farming of wild Atlantic salmon or any fish species when it is done with sufficient respect for animal welfare and with protection of the environment in mind. I agree with the noble Earl, Lord Kinnoull, and recognise that it is critical that fish can be farmed so a growing global population can continue to include fish within its diet without putting unsustainable pressure on wild fish populations. We also celebrate that the United Kingdom is one of the few places in the world that has ideal coastlines and sea conditions, and that the industry can bring much-needed jobs to parts of the country with limited employment opportunities. Its contribution to those communities is important. However, the salmon farming industry should not be at the expense of the wild population that spawned it and was already occupying this coastline and these river systems for millennia before farming began, or at the expense of equally valuable jobs in managing the rod and line fisheries or indeed historic salmon-netting rights.

This Bill and these amendments target only England, Wales and Northern Ireland. As we all fully understand, the Scottish Crown Estate has been devolved. However, it is hard to debate these amendments without acknowledging the damage that Scottish salmon farms have done not only to the west-coast-of-Scotland rivers but to English, Welsh and Irish rivers. Migratory patterns of salmon and sea trout are still not fully understood, but it is clear that fish travelling to these rivers also have to navigate open-cage salmon farms in Scottish waters.

To my knowledge, there is only one fish farm in UK waters outside of Scottish waters, and that is in Northern Ireland. While these amendments will capture that farm, we also hope and intend that they will provide that any future development of salmon farms in our waters, or indeed any other aquaculture, is done with much greater scrutiny of the environmental implications and with full accountability for any harm caused and with the highest standards of animal welfare.

As my noble friend Lord Forsyth and other noble Lords mentioned, the evidence against salmon farms for their impact on wild Atlantic salmon and other salmonids has been well laid out: they are a reservoir of sea lice that prey on passing salmon; they are a reservoir and breeding ground of disease and bacterial and fungal infections; and there is the long-term existential threat, as farmed species’ genetics increasingly diverge from wild, that interbreeding with the wild species by escaped fish has on their continued viability in the wild. I note that it is thought that 5,000 salmon escaped from the Northern Irish salmon farm earlier this year.

There are other environmental impacts that have also been discussed: the amount of wild fish that are caught solely to be processed for fishmeal and fish oil to feed farmed salmon; the dead zones created on the seabed; and the chemicals that are used to treat diseases impacting on local wildlife. In addition, lumpfish and five species of wrasse have been used since the 1990s as cleaner fish in the industry to eat sea lice. The lumpfish are also farmed, and the industry is moving to farming of wrasse as well. What environmental standards do these have, as well as animal welfare standards?

There are also significant welfare concerns for the farmed fish themselves, as expressed during this debate—exposure to predation from sea lice; images of hundreds of tonnes of dead fish routinely being taken out of these cages and disposed of by incineration, burial and other means; and the apparent overcrowding of these fish within the open-cage salmon farms.

As my noble friend Lord Forsyth mentioned, Washington state chose to ban open-cage Atlantic salmon farming in 2018, and British Columbia plans to shut all its open-cage salmon farming by next year. That is not what is suggested by these amendments, which would ensure that the Crown Estate environmental and welfare obligations are explicit and that the entity is held accountable for any environmental damage or welfare issues caused on its estate. Better practice is available in the world; there are better techniques for farming Atlantic salmon that could be brought into operation to mitigate and even eliminate many of the causes of damage. We understand that these are all likely to add to the cost of production, but why should our environment and our wild Atlantic salmon subsidise this industry? Surely we have learned our lesson from the impact of the green revolution on native bird species and river system health?

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[Baroness Kramer (LD)]

I appreciate that intervention from the noble Earl because I now understand his position better, but I do not think that is how this clause would be used. It would create a level of dissent, with each side saying, “We do it better than you do”, and “You need to copy us”. We can see the kind of constant pressures that come to—I am losing language; it is just so late—dilute the power of devolution.

On that basis, I do not support this language. Co-operation, partnership, looking at best practice—all those things are extremely positive, but let us be absolutely clear: the Crown Estate Scotland falls under the Scottish Government. Interestingly, it is often much more regulated than the Crown Estate back in England. I hope we learn from the Scottish experience not that each needs to mirror the other by rote, but that devolution works and should be extended to Wales.

[Lord Roborough (Con)]

My Lords, I am afraid that I may not entirely agree with the noble Baroness, Lady Kramer, on this. I agree with the intention of this amendment from the noble Earl, Lord Kinnoull, and the noble Lord, Lord Vaux of Harrowden. While we also acknowledge that the Crown Estate in Scotland is devolved, the entity remains closely aligned in its nature and the objectives sought from it, with considerable overlap in the kind of assets that are owned and managed. The Bill before us creates considerable new powers for the Crown Estate of England, Wales and Northern Ireland. First among those is the power to borrow, with the benefits to investment and flexibility that that allows. It also creates new obligations—hopefully, to include taking full responsibility for the environmental impact of offshore energy and fish farming. Those are not present in the devolved Crown Estate of Scotland. As noble Lords have described, it may well be helpful if the Minister committed to providing clear information on those differences once the Act has been implemented in order to allow both entities to learn what is best practice. Oversight and transparency are desirable in all areas of government, and I am most interested to hear the Minister’s response to this amendment and debate.

[Lord Livermore (Lab)]

My Lords, Amendment 37D, tabled by the noble Earl, Lord Kinnoull, would require the Secretary of State to lay a report before Parliament within 12 months of the day this Act is passed that assesses any differences between the provisions made by this Act for the management of the Crown Estate in England, Wales and Northern Ireland, and equivalent provisions for the management of the Crown Estate in Scotland.

It is possible now to provide such an assessment, and I am happy to set that out. Section 36 of the Scotland Act 2016 inserted a new Section 90B into the Scotland Act 1998. Subject to certain exceptions, Section 90B provided for the devolution in relation to Scotland of the commissioners’ management functions relating to property, rights or interests in land in Scotland and rights in relation to the Scottish zone.

Devolution occurred on 1 April 2017 under, and in accordance with, the Crown Estate Transfer Scheme 2017. The relevant property, rights and interests are now managed separately by Crown Estate Scotland under the Crown Estate Scotland (Interim Management) Order 2017 and the Scottish Crown Estate Act 2019, as enacted by the Scottish Parliament. They do not form part of the Crown Estate as currently managed by the Crown Estate commissioners.

The relationship between Crown Estate Scotland and the Scottish Government is governed by a public framework document which sets out a broad framework within which Crown Estate Scotland operates, and certain financial aspects. Any changes to that framework document or the wider legislation that underpins it are a matter for the Scottish Government.

I turn to the principal differences and similarities. The Bill grants the commissioners of the Crown Estate a power to borrow with Treasury consent and provides the Treasury with the power to issue loans and financial assistance to the commissioners, including out of the National Loans Fund. The Bill also specifies that the Treasury may determine the rate of interest on any loan and requires the Treasury to pay any sums received in respect of the loan into the National Loans Fund.

In comparison, Part 2, Section 1.1 of the framework document for Crown Estate Scotland explains that

“Scottish Ministers may make grants and loans to Crown Estate Scotland”

and such grants and loans are

“subject to such conditions (including conditions as to repayment) as the Scottish Ministers may determine”.

Part 2, Section 2.1 requires that:

“All borrowing by Crown Estate Scotland … shall be from the Scottish Ministers in accordance with guidance in the Borrowing, Lending & Investment section of the”


Scottish Public Finance Manual.

On investment, this Bill clarifies the commissioners’ existing ability to invest by inserting into the 1961 Act that:

“The powers exercisable by the Commissioners in the discharge of their functions under this Act include powers to do anything which is calculated to facilitate, or is conducive or incidental to, the discharge of those functions”.

It also omits subsection (4) from Section 3 of the 1961 Act, which will broaden the commissioner’s investment powers.

In comparison, Part 1, Section 3.2 of the framework document for Crown Estate Scotland explains that Scottish Ministers are responsible for

“approving Crown Estate Scotland’s Corporate Plan”,

which includes their investment strategy. Part 2, Section 7.3 requires Crown Estate Scotland to

“undertake investment in line with its legislative duties”,

which are set out in the Scottish Crown Estate Act 2019, principally in Part 3, across Sections 7 to 21.

On the constitution of the commissioners, the Bill increases the maximum number of commissioners from eight to 12 and omits the requirement that the second Crown Estate commissioner, if any, be deputy chairman. It also simplifies the legislative process by which commissioners are paid, such that the commissioners’ salaries and expenses are paid directly out of the income of the Crown Estate, rather than out of money provided by Parliament, which comes from the return made by the commissioners to the Government each year.

In comparison, under Part 1, Section 3.5 of the frame- work document for Crown Estate Scotland, the board membership is limited to nine members, including the chair. On remuneration, Section 7 of the Crown Estate Scotland (Interim Management) Order 2017 makes it clear that

“Crown Estate Scotland … must pay each member such remuneration and allowances (including expenses) as the Scottish Ministers may determine”.


The differences between these two organisations reflect the fact that the organisations have formed in different ways. The 1961 Act, which, as I have set out, is the legislative basis of the Crown Estate in its current form, was fulfilling a recommendation of the government Committee on Crown Lands—as set out in its report presented to Parliament in June 1955—to appoint an independent board of commissioners to manage the Crown Estate, with provisions designed to enable Parliament and the Treasury to know how it is discharging its responsibilities. To briefly quote from the 1955 report:

“The board should be a public authority, but not a government department in the sense of an organ of executive government. … We do however respectfully advise that the board should be more, not less, independent than the present Commissioners and that they should be given defined powers and duties as trustees and allowed to work them out with the minimum of direction and control.”


In comparison, Crown Estate Scotland was created by the Scottish Crown Estate Act 2019, which makes specific provisions about the management of the Scottish Crown Estate and followed on from a process of devolution established by the Scotland Act 2016. Crown Estate Scotland is specifically required to align its aims and objectives with the Scottish Government’s published programme for government, and Scotland’s economic strategy and national performance framework.

I hope this assessment was helpful and that I have provided some clarity on the points raised.

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Moved by

[Lord Roborough]

38: Clause 3, page 2, line 14, leave out from “force” to end of line 15 and insert “two months after a revised Framework Document has been laid before Parliament and the Secretary of State has arranged for the tabling of a motion for resolution on the Framework Document in each House of Parliament”
Member’s explanatory statement
This amendment would prevent the Crown Estate Bill from coming into force until two months after the Framework Document has been laid before Parliament with a motion for resolution in both Houses of Parliament.

[Lord Roborough (Con)]

My Lords, I will speak also to Amendments 39 and 40 in my name.

These amendments concern the publication of a framework document and the partnership agreement and memorandum of understanding between Great British Energy and the Crown Estate. We must have the opportunity to see, and vote on, the framework document before the Bill can be passed. Amendment 38 prevents the Crown Estate Bill coming into force until two months after the framework document has been laid before Parliament and has been subject to a vote. Amendments 39 and 40 in my name similarly seek to ensure the partnership agreement and memorandum of understanding between Great British Energy and the Crown Estate is laid before Parliament before the Bill is passed.

It would be negligent to pass a Bill without consideration of such integral documents. We must see the framework document and partnership agreement with Great British Energy before we can accept this legislation and I express my deepest concern over the absence of these documents to date. We must scrutinise the framework document to understand and be confident that it is appropriate for the Bill. Currently, the details on the Crown Estate’s partnership with Great British Energy are similarly limited. As I propose with the framework agreement, we must also have sight of the partnership agreement and memorandum of understanding between Great British Energy and the Crown Estate and Amendments 39 and 40 demand that this will be laid before Parliament before the Bill is passed.

This is a major and unprecedented partnership. The Crown Estate estimated that it will result in up to 30 gigawatts of new offshore wind developments reaching seabed lease stage by 2030. Considering this, we must be given the opportunity to read, review and scrutinise the partnership agreement and memorandum of understanding between the Crown Estate and Great British Energy before we accept this legislation.

I agree with the sentiment of the noble Baroness, Lady Smith, in her Amendment 41, and the noble Lord, Lord Berkeley, in his Amendment 42. I echo their concerns over the absence of the publication of the fiscal framework with Wales and its lease extension policy.

I hope the Minister will carefully consider the concerns I have raised and will confirm to the House that the framework document and partnership agreement and memorandum of understanding between the Crown Estate and Great British Energy will be published and laid before Parliament before this Bill is passed.

[Baroness Smith of Llanfaes (PC)]

My Lords, Amendment 41 in my name is included in this group of amendments and is supported by my noble friend Lord Wigley. This amendment would require the publication of an agreed fiscal framework between the Treasury and the Crown Estate before commencement of the Act.

During day one of Committee there were strong arguments made in support of the second group of amendments—a number of them seeking to write a fiscal framework. I believe that there is a shared view from around the Chamber that such a framework should have been drafted and published before Second Reading of this Bill. I am therefore grateful that the Minister, in his response to the second group of amendments, committed to publishing the framework before Report. If that is the case, I will not need to push for an amendment of this kind on Report.

However, I will take this opportunity to highlight some concerns regarding the possible content of the fiscal framework. I am concerned by the possibility of no hard cap on borrowing. I am led to believe that the framework will instead impose a loan-to-value ratio of 25%, which, as the Minister has already noted, would currently be around £3 billion and could go beyond that. To put this into perspective, the Welsh Government fiscal framework has a cap of £l billion on capital expenditure, with an annual borrowing limit of £150 million, which it can borrow from the National Loans Fund or a commercial bank. I ask the Minister: would the passing of this Bill as it stands, alongside a fiscal framework of a loan-to-value ratio of 25%, give the Crown Estate more or less borrowing power than the devolved Government of Wales?

I share the view expressed by the noble baroness, Lady Kramer, that the Crown Estate is no “cuddly” organisation. I look forward to hearing the Minister’s response to my question on how the proposed borrowing powers will compare to the current fiscal powers of the devolved Governments, particularly the Welsh Government.

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[Lord Roborough (Con)]

My Lords, I offer another view to that of the noble Baroness, Lady Kramer: perhaps going into government also changes the perspective of Members of this House. I am grateful to the Minister for his response to these amendments and for his contribution to this debate. We have not really had the answers that we are looking for but, in the meantime, I am happy to withdraw.

Amendment 38 withdrawn