Sovereign Grant Bill

Mel Stride Excerpts

Thursday 14th July 2011 Commons Chamber

[Mr Davidson]

Of course, as my hon. Friend says, that biscuit would be a Bourbon.

It is worth while clarifying the question of the ownership of the Crown Estate. Is it owned by the monarch as an individual or the monarchy as an institution? When the Public Accounts Committee looked at this matter, there was a consistent attempt by officers of the monarchy to confuse and conflate the two. We need to ask ourselves this question: were the monarchy abolished, would Crown Estate moneys and properties belong to the deposed monarch as an individual or would they remain with the state? It is quite clear that they would remain with the state. Therefore, the moneys and the estates are not the property of the individual who happens to be the monarch at any particular time. That clarifies a number of things.

[Mel Stride (Central Devon) (Con)]

Will the hon. Gentleman give way?

[Mr Davidson]

No, I want to proceed because we are short of time.

I am seeking clarification from the Chancellor, who, I remember, was on the Public Accounts Committee when he was a young whippersnapper—I have often wondered what happened to him since. Will the National Audit Office, the interventions of which I will welcome, also be able to look at all elements of royal involvement? In particular, can it look at the royal art collection, about which there were serious discussions and disputes in the past? That would seem to be covered by what he has said, but it is not immediately clear.

Is the Crown Estate the right body to take into account when determining the monarch’s income? Those of us on the Public Accounts Committee who examined the Duchy of Cornwall’s accounts were absolutely clear that the Duke of Cornwall was manipulating the money involved, by playing a major role in determining the amounts of expenditure and income, thereby determining how much money came, or was available, to him as an individual.

Quite clearly, the Crown Estate could be leant on by the monarchy to make decisions on expenditure and income in the short term to affect the amount of grant that the royal family receive. The grant would then be on, as it were, a golden ratchet—a bit like EU expenditure, it would always go up, and never down. There is clearly scope for abuse in those circumstances. Will the Chancellor clarify those points?

Will the Chancellor also take into account the fact that there is due to be a windfall from wind and wave power? Will he assure the Committee that all of that will be taken into account when the review takes place in due course?

--- Later in debate ---

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I have a series of concerns with the Bill. First, it creates an artificial link between the profits from an estate given up by the royal family in 1760 and an amount required to carry their official duties in the present day. My major concern is with the escalator process that is put in place, whereby the amount that is received each year will be the same as or greater than that of the previous financial year, either through the floor introduced in the Bill or because 15% of the Crown Estate’s profits is greater than the floor. I am disappointed that the Opposition amendment on that was defeated in Committee.

There are curious oddities in the Bill. Why is there a need to round up the Crown Estate’s profit to the nearest £100,000? Why round it upwards and not downwards? Why round it up at all? The profit of the Crown Estate is a red herring. There is no link between the successful organisation of the estate’s affairs and the amount received by the royal family. This is not a business arrangement. I recognise that there are arguments that the royal family should receive a lump sum and be able to transfer funds for better use. I also recognise the argument that the money provided is given for a specific purpose. However, if it is not being used for that purpose, on what grounds is that amount of funding being given?

As many Members have said, there should be a regular needs-based analysis of the royal family’s expenditure, with grants provided accordingly. Having said that, I like the idea of a reserve fund for money that is not used. This sounds like the end-of-year flexibility that the Welsh Government set up under Plaid Cymru a few years ago, only for the Treasury to steal back £400 million earlier in the year. I look forward to the day when the Treasury follows the same pursuit in taking back money allocated to the royal family.

The Crown Estate, which is a key part of the Bill, is owned by the state and administrated by commissioners. It owns large areas of land in Wales and claims the seabed and foreshore as part of its urban, rural and maritime portfolios. Yet last week’s annual report fails to provide a nation-by-nation or regional breakdown of the investments and profits of the Crown Estate. Figures for Scotland are provided on the website, but apparently no comparable figures for Wales are published. In the interests of transparency, we would like to see those figures published. In the interests of Wales, we would like to see responsibility for the Crown Estate in Wales transferred to the Welsh Government. This is our land and our seabed, and it should be used for investments that benefit the people of Wales.

[Mel Stride]

I feel that I must return to the status of the Crown Estate. Does not the hon. Gentleman accept that it is effectively owned by the institution of the monarchy and not by the state at all?

[Jonathan Edwards]

I do not agree. My belief is that the Crown Estate in Wales should now be devolved to the Welsh Government.

Profits are coming from the use and exploitation of these assets. Those profits, be they for renewable energy on land or sea, should be given to the people of Wales. Having control of the Crown Estate land and sea in Wales would give us the opportunity to be a world leader in renewable energy and to develop our economy accordingly. In the meantime, the Bill should not include reference to the Crown Estate and should instead provide a series of grants according to the needs of the royal family to undertake their duties. If we are to have one single sovereign grant that is not needs-based, then why not simply increase it by the consumer prices index, as that seems to be the Government’s preferred measure of inflation?