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Crown Estate Bill [Lords] 2025-02-24
24 February 2025
Lead MP
Llinos Medi
Debate Type
General Debate
Tags
Wales
Other Contributors: 28
At a Glance
Llinos Medi raised concerns about crown estate bill [lords] 2025-02-24 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The new clause transfers management of the Crown Estate in Wales to the Welsh Government within two years. This ensures that profits generated from natural resources stay within Wales, addressing historical exploitation and current economic challenges such as child poverty. The value of the Crown Estate has increased significantly over five years, but all profits are transferred to the Treasury rather than benefiting local communities. Scotland's devolution of its Crown Estate in 2017 is cited as a successful precedent for similar implementation in Wales.
Llinos Medi
PC
Ynys Môn
Proposes that the Welsh Government should control and benefit from natural resources within two years of the Act's commencement. Emphasises historical exploitation and current issues such as child poverty at 34.4% by end of decade. Highlights Scotland’s successful devolution in 2017, advocating for similar implementation in Wales.
Jim Shannon
DUP
Strangford
The fishing sector in Northern Ireland could be impacted by measures taken for net zero development, such as wind farms. The Crown Estate must consider the effects on fishing when leasing and consenting.
Dwyfor Meirionnydd
Devolution of the Crown Estate to Wales would ensure local supply chains are used, keeping money in Wales. This is critical for communities like Milford Haven where renewable development will be crucial.
Ben Lake
PC
Ceredigion Preseli
Devolution of the Crown Estate could look at what is happening in Scotland as a model, addressing practicalities and ensuring local economic benefits. This would involve regional strategies for renewable energy projects.
Member for Mid and South Pembrokeshire
Party Unspecified
Proposes an amendment to limit the Crown Estate’s borrowing power to no more than a net debt-to-asset value ratio of 25%, arguing that this is necessary to prevent overreach and ensure parliamentary oversight. Also, suggests new clauses for transparency regarding asset disposals and partnership agreements with GB Energy.
Matt Rodda
Lab
Reading Central
Supports the Bill as an important step towards tackling climate change and ensuring energy security. Argues against amendments 3 and 5 and new clauses 5 and 6, stating that they would reduce flexibility for the Crown Estate in managing its assets and potentially harm business interests.
South Cambridgeshire
Supports the Bill while calling for financial accountability, proportionate borrowing caps, protection of nature in marine environments, and community benefits. Argues that the Liberal Democrat amendments aim to ensure the bill delivers both environmental and social benefits.
The amendment seeks to clearly define sustainable development in the Crown Estate’s framework agreement, including a climate and nature duty. The speaker argues that this is necessary for accountability, economic benefits, environmental protection, and ensuring local communities benefit from large-scale developments.
Wolverhampton North East
Supports the Bill, arguing it will enable the Crown Estate to borrow, invest and back long-term projects that deliver real benefits for communities. Emphasises its potential economic impact in Wolverhampton North East through job creation, apprenticeships and manufacturing opportunities.
James Naish
Lab
Rushcliffe
Questions Mrs Brackenridge about the Bill's impact on jobs and opportunities for young people. Emphasises the economic growth of the net zero sector compared to the overall UK economy, highlighting the need to seize this opportunity.
Chris Vince
Lab/Co-op
Harlow
Agrees with Mrs Brackenridge that removing outdated restrictions on the Crown Estate will benefit constituents across the country by allowing greater return for the public purse and driving economic growth through local communities.
North Norfolk
Supports amendment 3 regarding coastal erosion, advocating for protections similar to those given to energy infrastructure in Happisburgh. Highlights the need for fairness towards communities living alongside renewable energy infrastructure and the importance of protecting against climate change impacts.
Jayne Kirkham
Lab/Co-op
Truro and Falmouth
Supports the Bill, highlighting potential benefits for Truro and Falmouth from floating offshore wind. The MP mentions a CBI report showing green economy growth three times faster than national average with higher wages.
Brecon, Radnor and Cwm Tawe
Expresses frustration over the Government's refusal to devolve Crown Estate powers to Wales. The MP argues that profits generated in Welsh waters should benefit local communities rather than flowing directly to the UK Treasury.
Jim Allister
TUV
North Antrim
Opposes new clause 7, which seeks devolution of the Crown Estate to Northern Ireland. The MP argues that the current Stormont Executive is incapable of handling such controversies due to unresolved historical issues involving Lough Foyle.
Concerned about the impact on fishing fleets in Portavogie, Ardglass and Kilkeel. Requests assurances from the Minister that any development will not harm the fishing sector's sustainability.
Jim Shannon
DUP
Strangford
Mr. Shannon emphasises his support for renewable energy but expresses concern about the sustainability of the fishing industry in Kilkeel and Ardglass due to Crown Estate activities. He also highlights additional red tape faced by local councils when dealing with the Crown Estate, while acknowledging its social impact through initiatives like homelessness schemes. Mr. Shannon requests assurances that existing relationships are not compromised for new developments.
Ben Lake
PC
Ynys Môn
Mr. Lake questions whether the devolution of Crown Estate powers to Scotland has fragmented the market and been detrimental, challenging the Minister's stance on similar proposals for Wales.
Dwyfor Meirionnydd
Ms. Roberts seeks quantifiable benefits of retaining Crown Estate powers in their current form and questions whether the Minister can provide such specifics.
Dwyfor Meirionnydd
Ms. Roberts criticises the Minister's argument, suggesting it is an extraordinary claim that Wales cannot benefit from Crown Estate devolution. She questions whether the Minister has discussed this with Welsh Labour.
James Murray
Con
Bexleyheath and Crayford
Mr. Murray clarifies his point, stating that a devolved entity in Wales would be starting from scratch at a critical juncture of commercial investment processes. He supports the Crown Estate's role in advancing energy capacity and increasing net profits.
Llinos Medi
PC
Ceredigion
Ms. Medi highlights that the Barnett formula is not fair for Wales, referencing a Scottish model where £10 million was taken out of the block grant but communities received £103 million back as a fair exchange.
Jim Shannon
DUP
Strangford
Mr. Shannon seeks assurance that ambitious net zero targets will not negatively impact the fishing sector in Northern Ireland and asks for direct contact with the Northern Ireland commissioner regarding fishing concerns.
James Murray
Con
Bexleyheath and Crayford
Mr. Murray reassures Mr. Shannon about the Crown Estate's commitment to sustainable management of the seabed, including environmental assessments and adherence to marine plans. He also emphasises that the Bill will not impact commercial fishing activities directly.
Pippa Heylings
Con
South Cambridgeshire
Ms. Heylings expresses willingness to withdraw the new clause but seeks reassurance regarding a potential review of the memorandum of understanding between the Crown Estate and Marine Management Organisation due to new investment powers.
James Wild
Con
North West Norfolk
Proposes new clause 5 to impose a requirement for the Crown Estate to seek Treasury consent before disposing of assets valued at 10% or more of its total assets in any year, and new clause 6 to mandate the Chancellor to lay partnership agreements with Great British Energy before Parliament.
Llinos Medi
Lab
Vale of Clwyd
Argues that devolving the Crown Estate to Wales could lead to greater alignment with Welsh economy and strengthen local supply chains, citing a £700 million investment in Scotland as evidence. Criticises lack of ambition from Labour Government regarding child poverty reduction.
James Wild
Lab
There is support across the House for the aims of the Bill, which will deliver the modernisation that the Crown Estate needs, and should generate greater returns for the Exchequer. However, we are disappointed that the Government have resisted our proposals for greater transparency and appropriate parliamentary oversight, including on borrowing.
Government Response
The Minister acknowledges the concerns raised by MPs and outlines that the Government has made changes to the Bill, including ensuring appropriate protections for seabed disposal. He explains that devolving Crown Estate powers to Wales would disrupt existing investments and delay UK-wide grid connectivity reform. The Minister also highlights potential economic benefits from offshore wind developments and emphasises the importance of maintaining a unified energy market. Mr. Murray outlines that the Government believes the existing structure is best for advancing energy capacity, increasing Crown Estate net profits, and supporting public services in Wales. He also emphasises the collaboration between the Crown Estate and Marine Management Organisation. The minister reassures the House that strong safeguards are already in place to ensure the Crown Estate maintains and enhances its estate, and opposes new clause 5 arguing it undermines flexibility for commercial operations. Also argues against transparency of partnership agreements citing commercial sensitivity. The central aim of the Bill has been to ensure that the Crown Estate has a sustainable future for decades to come. Through these targeted and measured changes to its founding legislation, particularly in respect of its investment and borrowing powers, the Government are building on the Crown Estate’s strong track record of success in creating long-term prosperity for the nation. The measures will unlock more long-term investment, helping to drive growth across the UK.
Shadow Response
None
Shadow Response
The Bill was developed to provide the Crown Estate with broader borrowing powers, aiming to increase revenue and enhance asset value. The Welsh functions of the Crown Estate are not suitable for devolution at present due to licensing complexities in the Celtic Sea that could undermine returns for taxpayers. There is support across the House for the aims of the Bill, which will deliver the modernisation that the Crown Estate needs, and should generate greater returns for the Exchequer. However, we are disappointed that the Government have resisted our proposals for greater transparency and appropriate parliamentary oversight, including on borrowing.
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