Examination of Witnesses (Questions 280-299)
THE ACCOUNTS
OF THE
DUCHIES OF
CORNWALL AND
LANCASTER
7 FEBRUARY 2005
Q280 Mr Davidson: On quite a lot
of properties you could formulate your capital gains tax gains.
Okay. Can I clarify in terms of the independence of the Prince's
Council—about which others have commented—of the people
on that, how many of them sit on other committees and subsidiaries
that the Prince has control of, in particular Duchy Originals,
Home Farm and other structures and organisations?
Mr Ross: Other organisations?
Q281 Mr Davidson: Of which the Prince
has control or an involvement?
Mr Ross: I cannot think of any.
Q282 Mr Davidson: None of them sit
on anything else?
Mr Ross: There is; sorry. The
Prince of Wales's Private Secretary does.
Q283 Mr Davidson: Right. In terms
of the accounts of Duchy Originals and Home Farm, are they lumped
in with the Duchy?
Mr Ross: Duchy Originals is totally
separate.
Q284 Mr Davidson: Can you clarify
for me, Duchy Originals and Home Farm, and any other enterprises
that you have, where do their profits go? Do they come back into
the Duchy of Cornwall?
Mr Ross: Home Farm is let to the
Prince of Wales so any profit and loss is his own personal business.
Q285 Mr Davidson: What is it let
to? It is let to the Prince of Wales at what?
Mr Ross: Full market rent, established
by independent valuers. The other question, Duchy Originals is
a trading company, it is a subsidiary of a charity. All the proceeds
go into the charity.
Q286 Mr Davidson: In terms of the
relationship with the Prince of Wales can I clarify what happens
in circumstances where the Prince comes to stay occasionally,
maybe in a Duchy property, or does something similar. You have
no properties that would ever be occupied in any circumstances
by the Prince?
Mr Ross: We have one property
on the Isles of Scilly which he has not even spent a night in
for the last 25 years. Highgrove, I beg your pardon, is owned
by the Duchy of Cornwall.
Q287 Mr Davidson: Highgrove is owned
by the Duchy of Cornwall. That is interesting. Can I ask in terms
of capital works which are undertaken at Highgrove, who pays for
those? Is that the Duchy?
Mr Ross: Capital works are usually
paid for by the landlord, which is the Duchy.
Q288 Mr Davidson: So the development
of the Orchard Rooms, for example, would have been paid for by
the Duchy?
Mr Ross: Correct.
Q289 Mr Davidson: Was that competitively
tendered?
Mr Ross: I cannot tell you that,
I was not around.
Q290 Mr Davidson: Can you give us
a note?
Mr Ross: I can give you an answer
to that.
Q291 Mr Davidson: In terms of the
entertainment which takes place at Highgrove, of which I understand
there is a fair amount, how is the charging done in terms of cost?
There must be costs incurred for heat, lighting and so on, is
all of that met by the Prince because he pays the entire costs
of the building all the time?
Mr Ross: It does not involve the
Duchy of Cornwall at all. We let the premises to the Prince of
Wales.
Q292 Mr Davidson: There is no basis
on which there is any subsequent charge against the Duchy?
Mr Ross: There is absolutely no
cost for any private matters paid by the Duchy of Cornwall.
Q293 Mr Davidson: Does the Duchy
incur any costs at all for entertaining in any way whatsoever?
Mr Ross: Yes, we do.
Q294 Mr Davidson: Are those competitively
tendered?
Mr Ross: The cost of entertainment?
No.
Q295 Mr Davidson: Are these contracts
for entertaining disposed of by Premier Mode?
Mr Ross: No. We do no business
with Premier Mode. I go and attend events which are hosted by
the Prince of Wales, but there is nothing the Duchy of Cornwall
does which involves Premier Mode.
Mr Davidson: Thank you very much, Chairman.
Chairman: There are one or two supplementary
questions from members.
Q296 Mr Williams: I was going to
ask about Highgrove myself, because I seem to remember at one
time it being said the Prince himself paid for it, but I gather
now the Duchy paid for it?
Mr Ross: Paid for what sorry?
Q297 Mr Williams: The building of
Highgrove.
Mr Ross: The building of Highgrove?
We did not pay for the building of Highgrove, it was built about
300 years ago.
Q298 Mr Williams: Whatever the cost
was of Highgrove.
Mr Ross: The Duchy of Cornwall
purchased Highgrove.
Q299 Mr Williams: The Duchy of Cornwall
purchased it?
Mr Ross: Correct. We now let it.
It is set out in the Memorandum of Understanding that there is
a proper agreement between the Duchy of Cornwall and the Prince
of Wales for which he pays a full market rent which is, in this
case, assessed by two separate valuers because of the sensitivity.
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