I rise to support new clause 57. The transfer of the Crown Estate in Scotland and its assets was a key commitment agreed to by the cross-party Smith commission, and I know that the Secretary of State will be keen to deliver it in full. The Heads of Agreement stated, in paragraph 32:
“Responsibility for the management of the Crown Estate’s economic assets in Scotland, and the revenue generated from these assets, will be transferred to the Scottish Parliament. This will include the Crown Estate’s seabed, urban assets, rural estates, mineral and fishing rights, and the Scottish foreshore for which it is responsible.”
We have heard a lot today about the nonsense of connecting payments of the Crown Estate and the royal grant, so I will not go into that. I think it is fair to say that unfortunately we will not be supporting the amendment tabled by the hon. Member for North East Somerset (Mr Rees-Mogg).
The amendment proposed by the hon. Member for Edinburgh South (Ian Murray) has the look of a sensible proposal. Were it not for the Treasury’s approach to the transfer scheme, it might have been worthy of support. However, when put together with the Treasury transfer scheme, it would have the effect of removing from Ministers the ability to exercise management functions, which would be logical and necessary.
The Bill, as it stands, fails to meet the promises of the Smith commission. New clause 57 would reduce the frankly unnecessary complexity of the current arrangements relating to the Crown Estate. By removing the reservation relating to the management of the Crown Estate, it would provide the Scottish Parliament with full legislative competence in relation to the management of the Crown Estate in or as regards Scotland. It would also transfer any functions of the Crown Estate Commissioners in relation to the rights to the continental shelf beyond the 200-mile limit adjacent to Scotland.
If the Government are truly committed to delivering on the promises of the Smith commission, much needs to be done to reduce the level of unnecessary complexity in the Bill. As drafted, it provides for restrictions on the Scottish Parliament’s ability to legislate and for retention of the Crown Estate Act 1961 powers. These carve-outs and powers of direction were not envisaged by the Smith commission. For example, the area of the continental shelf beyond the 200 nautical mile limit, where the Crown Estate has “spill over” responsibilities, is not covered by the proposals.
The Bill also excludes assets not wholly owned by the Crown Estate. The most striking example must be Fort Kinnaird shopping centre in Edinburgh. As I pointed
out earlier, the Smith commission agreed that the Crown Estate’s economic assets in Scotland, and the revenue generated from them, would be transferred to the Scottish Parliament, and that specifically included urban assets. To be clear, that is economic assets and urban assets. Fort Kinnaird generates net revenue of up to £8.4 million a year—surely a significant urban asset—yet the Bill seeks to exclude it from transfer on the basis that for the Crown Estate it is not an asset. That is nonsense. The Crown Estate is in a 50:50 partnership with a company called Hercules. The seventh labour of Hercules was to capture the Cretan bull. In this particular piece of mythology that we are debating tonight, it is no Herculean feat to capture the bull contained in this exception. This is an asset. Therefore, to honour the Smith commission agreement, it must be included.
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Another serious issue—I am grateful to the right hon. and learned Member for Beaconsfield (Mr Grieve) for pointing this out earlier—is the proposal to allow the Crown Estate that is not devolved in this agreement to continue to operate within Scotland, potentially using assets remaining in Scotland, and revenues raised in Scotland, effectively to compete head-to-head with the devolved assets. Although there is a suggestion that that route would not be used by the remaining Crown Estate, there is no guarantee or protection from any future decision taken. It would surely be best to protect against the devolved Crown Estate becoming a “toom tabard”—an empty jacket—as a consequence of corporate power wielded outside Scotland.
Let me turn to the amendment proposed by the right hon. Member for Orkney and Shetland (Mr Carmichael). He might not remember that, as a former leader of Highland Council, I was one of the people who asked him over many years for the devolution of the Crown Estate, as did my predecessor in that role, Michael Foxley, the Lib Dem leader of Highland Council, and he, too, received no response—I am looking around for the right hon. Gentleman, but I cannot see him in the Chamber. I am sure that he has tabled his amendment for the best of reasons, but it does not take into account local communities or local authorities with island communities that have supported and have an interest in the “Our Islands: Our Future” proposals, such as the highlands and Argyll and Bute. They, as well as those other communities, must be taken into account.
The Smith commission recommended that, following the transfer to the Scottish Parliament, responsibility for the management of those assets would be further devolved to local authority areas such as Orkney, Shetland and Na h-Eileanan an Iar, and to other areas that seek such responsibilities. As we heard earlier from the former First Minister, the Scottish Government plan to allocate 100% of the net income from the islands’ seabed leasing revenues to island communities, rather than to central Government. That is not for Westminster to decide; it is an issue for Scotland and the ministerial island working group, which incidentally is meeting this Wednesday to progress discussions. In discussions today with a council leader from the island group, I was assured that they are content with the Scottish Government’s proposals on a commitment to further devolution to the islands once powers are devolved to the Scottish Parliament.
In conclusion, there is an opportunity to really deliver on the Smith commission if these obvious issues are
addressed through our new clause. Communities across Scotland have been waiting for and are expecting the full devolution of the assets and revenues of the Crown Estate in Scotland. Let us see that promise delivered by making sure that the Bill lives up to the serious expectations of the people of Scotland. I commend new clause 57 to the Committee.