Amendment 12

Part of Crown Estate Bill [HL] - Committee (1st Day) – in the House of Lords at 5:15 pm on 14 October 2024.

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Photo of Baroness Vere of Norbiton Baroness Vere of Norbiton Shadow Minister (Treasury) 5:15, 14 October 2024

My Lords, my Amendments 12 and 36 focus broadly on the governance and management of the Crown Estate. Amendment 12 in my name seeks to introduce a process by which Parliament can scrutinise the appointment of new Crown Estate commissioners. If passed, the Bill will increase the number of commissioners from eight to 12. The Government have not given a clear reason for this change, arguing merely that the new number will bring the number of commissioners in line with best practice for modern corporate governance. Further information and thoughts on that from the Minister would be welcome. It would be interesting to hear what problems this change will solve, what particular skills he feels the Crown Estate is missing and why those additional four commissioners will deliver the change needed.

As many noble Lords have remarked already in Committee today, the Crown Estate bears the most enormous responsibility as the custodian of many of the nation’s important assets. That responsibility is significant, yet the level of parliamentary oversight—over not only the activity of the commissioners but their stewardship of these billions of pounds’ worth of incredibly important assets—is weak and has been further weakened by the Bill.

My Amendment 12 would give Parliament a role in scrutinising commissioner appointments to ensure that candidates were qualified for the role that they are anticipated to play. That would include the new commissioners who will be introduced after the Bill becomes law, as well as the chair of commissioners, for which I believe a recruitment process is currently under way. The chair of the commissioners will be an incredibly important role. Again, I believe it would be beneficial and reassuring to all parliamentarians if a committee—for example, the Treasury Select Committee—had the opportunity to question the candidate for that role before they took up the reins.

The amendment in the name of my noble friend Lord Young of Cookham identifies a specific issue when it comes to oversight. Commitments are made on behalf of the Crown Estate but there is no mechanism to ensure that those commitments are implemented. Therefore, I hope that the Minister will listen carefully to what my noble friend has to say, and will agree that the amendment in my noble friend’s name would improve the Bill.

Amendment 36 also seeks to improve parliamentary scrutiny of the governance of the Crown Estate, by ensuring that the disposal of assets owned by the Crown Estate is reported to the Treasury and then to Parliament. The Minister will know that I was concerned about this, as I asked in a meeting what restrictions there were over sale of assets. I did not receive a satisfactory response at all. Again, I note that the Crown Estate owns some of our most important landmarks. These are valuable pieces of land, buildings or indeed seabed, but they are not just valuable; they are iconic.

There is limited transparency to the decisions of the Crown Estate beyond the annual report. This measure is simply designed to ensure that Parliament has some visibility in the decision to dispose of assets. In this case, I picked an amount of £10 million, but it could be higher than that. This seeks to discourage the commissioners from taking inappropriate short-term decisions about the ownership of national landmarks, and indeed the natural environment, for short-term gain.

I am grateful to my noble friend Lord Holmes of Richmond for his amendments in this group about creating public good, and I will listen with great interest to the response from the Minister. The spirit of my noble friend’s Amendment 19 aligns closely with my Amendments 37A, 37B and 37C in a later group, and will touch on that there.

Finally, I was interested to note the proposal from the noble Earl, Lord Russell, to grant the Crown Estate commissioners the power to grant leases in exchange for full or part ownership of any project. Again, that is something the Minister may wish to consider.

I hope the Minister will look carefully at these constructive amendments, and specifically confirm to the Committee whether he agrees that Parliament should have a greater role—or indeed, in my view, any role at all at this stage—in scrutinising the work of the Crown Estate. I beg to move.