Crown Estate Bill [Lords] 2025-01-07

Asks why provisions for England and Wales do not extend to Scotland's Crown Estate.

Questions the potential conflict of interest regarding investment in GB Energy and concerns about liability if investments fail, as well as borrowing from the Government at commercial rates.

Asks whether the Crown Estate will be compelled to prioritise renewable energy development over fishing industry interests in case of conflicts, highlighting potential legal compulsion based on primary duty.

Offers reassurance by citing the Crown Estate's engagement with both renewable energy and fishing industries to prevent conflicts through early planning.

Highlights Clause 3, which requires the Commissioners to review the impact of their activities on sustainable development in the UK.

Questions the Minister about why powers should apply to Crown Estate in England and Wales but not in Scotland. Inquires if reasons for this disparity are clear.

Asks whether the Bill will stimulate economic growth in other regions, specifically highlighting potential wind energy opportunities in the south-west peninsula.

Supports the bill's aims to modernise the Crown Estate but raises concerns about lack of parliamentary oversight on borrowing levels and governance. Questions the effectiveness of relying solely on a memorandum of understanding for borrowing limits.

Considers potential risks associated with investment if things go wrong, questioning who would be liable in such cases.

Expresses concerns about the transparency of the partnership between GB Energy and The Crown Estate, questioning if the partnership has been created for political reasons. Raises issues regarding accountability and transparency in the reporting requirements.

Defends the Bill's provisions related to salmon farming regulations, arguing that it is necessary despite existing regulation due to its role in raising awareness of environmental impacts and animal welfare standards on Crown Estate lands.

Supports the Bill focusing on modernizing buildings in central London and promoting renewable energy development, particularly offshore wind. Highlights challenges such as grid connectivity delays and potential for supporting smaller renewable projects like hydro generation schemes.

The objectives of the Bill are to broaden the investment and borrowing powers of the Crown Estate and to strengthen its corporate governance, in order to help accelerate new renewable energy, particularly offshore wind. We welcome the Bill but would like further scrutiny on issues such as a cap on borrowing; accountability in the relationship with Great British Energy; managing conflicts between competing interests and values on our seabed and coastline; community benefit; devolution in Wales; and our climate and nature duty. The Crown Estate oversees 200,000 acres of land, 12,000 km of coastline and a seabed area larger than the combined land mass of England, Wales and Northern Ireland. Despite constraints on its ability to borrow, the Bill could unlock investment in vital infrastructure across supply chains, ports and green energy sectors. The borrowing cap is 20% of the loan-to-value ratio. Annual reports should be provided on activities within that relationship. A framework for devolving the Crown Estate in Wales needs to be set out. Mapping the seabed around our coastline must balance economic development with environmental responsibility. Communities need assurance that they will benefit from investment and renewable projects facilitated by this Bill. Amendment 10 requires commissioners to review the impact of their activities on sustainable development.

The Crown Estate, a peculiar feature of our society, sits as one of the most powerful natural resources in wind. This Bill grants up to £60 billion of borrowing powers to the Crown Estate, demonstrating its scale and influence. The key question is whether it serves the people or seeks to feather its own nest. Offshore Pembrokeshire has an abundance of wind but requires enabling investments into UK supply chains for ports and coastal facilities for floating wind. Unfortunately, no assurances have been secured that the Crown Estate will utilise its financial resources for energy security, jobs, and acceleration to net zero. The conflict between raising national income via annual option fees and incentivising early investment needs resolution.

The Crown Estate owns a significant portion of Wales’s foreshore and riverbeds, as well as substantial land. In recent years, the value of these assets has increased dramatically, with profits rising from £345 million in 2020 to £1.1 billion in 2024. However, unlike Scotland, where revenues are retained locally, Wales loses this revenue to the Treasury and the sovereign grant. Welsh councils also face substantial lease fees for using Crown Estate land. Medi argues that devolving control of the Crown Estate to Wales would ensure profits from natural resources benefit local communities, akin to what happens in Scotland.

Fookes criticises Plaid Cymru for being divided on the issue of devolving the Crown Estate. She questions why some members support provisions in the Bill to create a commissioner with special responsibility for Wales, while others argue only full devolution is acceptable.

Hughes argues that devolving the Crown Estate could delay delivering clean energy jobs and opportunities across Wales. She suggests a pragmatic approach, citing the need for development in her constituency and neighbouring areas.

Kirkham welcomes the Bill's changes to the Crown Estate’s powers but emphasises that these should be aligned with sustainable development goals. She advocates for non-price factors in lease auctions, such as socioeconomic impacts and environmental considerations, and suggests using exemptions to WTO rules to factor these into decisions.

Supports the Bill's efforts to enhance the Crown Estate’s capacity for renewable energy projects. Emphasises the importance of community benefits from such developments. Cites examples from Germany where offshore wind farms generated significant community benefits.

Acknowledges community benefit initiatives by companies like Ørsted and RWE in her constituency, highlighting specific contributions to youth support and local education activities.

Welcomes the Bill's provisions for improving Crown Estate governance and investment powers. Focuses on the potential of floating offshore wind in the Celtic sea to benefit deprived areas like Cornwall, emphasising the need for improved grid connectivity.

Highlights concerns about the prioritization of offshore wind development over traditional fishing industry interests. Questions whether sustainable development is balanced in favour of wind farms at the expense of environmental impacts and local communities.

Advocating caution regarding offshore wind farms near UNESCO sites and the importance of balancing environmental protection with development.

Supports the Bill for its potential to bring jobs and economic growth, highlighting its role in reaching net zero goals and tackling climate change. Emphasises the Crown Estate's need for modernisation to support future industries.

Welcomes the Bill’s potential to drive investment, create educational opportunities in renewables, and foster collaboration with existing industries. Emphasises the importance of sustainable development and community benefits.

The Bill is an important piece of legislation that unlocks growth and drives clean energy. It changes outdated rules to allow the Crown Estate to reinvest its resources, supporting new projects worth up to £60 billion in private sector investment. The Bill also enhances GB Energy's initiatives for green energy transition and economic growth.

Supports the view that the Bill is crucial for creating growth and jobs, highlighting its importance alongside other legislation like the Great British Energy Bill. Emphasises the need for public ownership of clean power to ensure energy security.

Encourages the Crown Estate to consider local areas like Newcastle-under-Lyme when investing under its new freedoms, while noting that the additional revenue from the Bill will benefit constituents across the UK.

The Crown Estate is neither the property of the Government nor part of the sovereign’s private estate. Its core purpose is to maintain and enhance the value of the estate and the income derived from it. Greater transparency about the partnership with GB Energy is needed, including publishing the partnership agreement before Committee stage. Concerns exist regarding conflicts and risks around investment decisions and returns for taxpayers.

Purpose of the Bill is to bring Crown Estate legislation into the 21st century by enhancing its powers and governance, enabling it to further invest in the energy transition and deliver returns to the public purse. Borrowing powers will be from the Treasury or with Treasury consent, consistent with fiscal rules. Commissioners' pre-appointment scrutiny follows established processes. Chief executive pay is at the lower end of private sector peer groups, performance-based. Partnership agreement details are commercially sensitive but will be published in annual reports. Amendment on seabed sale may be needed and will be considered.

Raised points about the Crown Estate's responsibility to balance offshore renewables expansion with fishing industry needs, marine wildlife protection and environmental stewardship.

Emphasised the importance of long-term community benefits, local supply chains, and investment in jobs and skills through clean energy projects.

Stressed the need for collaboration between the Crown Estate and local communities to ensure employment opportunities and environmental protection alongside renewable energy development.

Highlighted the importance of long-term community benefits, such as providing apprenticeships and skills training for offshore wind projects.