The management of the Crown Estate - Treasury Contents


Examination of Witnesses (Questions 60 - 79)

WEDNESDAY 24 FEBRUARY 2010

MS LINDA ROSBOROUGH

  Q60  Chairman: No, but going back to the Secretary of State, I know you do not represent the Secretary of State but would there be the same meetings with the Secretary of State on the same level?

  Ms Rosborough: It is before my time, I am afraid, so I do not know.

  Q61  Chairman: No, but currently are you aware of the Secretary of State for Scotland having meetings with the Commissioners?

  Ms Rosborough: We would not be aware.

  Q62  Chairman: You would not be told whether that was happening?

  Ms Rosborough: No.

  Q63  Chairman: What is the formal concordat between the Scottish Government and the Commissioners? Is there a separate memorandum?

  Ms Rosborough: No, there is no separate memorandum.

  Q64  Chairman: So nobody has set out how you should work together?

  Ms Rosborough: No. We do have a Scottish Liaison Group which was set up following the review that was mentioned earlier and the Scottish Government has observer status on that.

  Q65  Chairman: Right, but we have been hearing from the local authorities that work is going on on the memorandum. Would you not be a party to that?

  Ms Rosborough: The particular memorandum which was mentioned by the local authorities was something they have initiated in their liaison with The Crown Estate Commissioners. I have not been a party to that.

  Q66  Chairman: Why would the Scottish Government not be involved in that, even as an observer?

  Ms Rosborough: The dialogue, as far as I know, has not yet reached us, but it is something that is happening. We do have a number of working groups upon which we are represented and the local authorities are represented. For instance, we have a working group on the Pentland Firth which is looking particularly at the marine planning issues arising out of renewables development in the Pentland Firth. The memorandum that was mentioned was a specific initiative of the authorities that were giving evidence earlier.

  Q67  Chairman: Do you think it would be helpful for the Scottish Government to have a more formal Memorandum of Understanding with The Crown Estate Commissioners?

  Ms Rosborough: Firstly, the Scottish Government aspires to independence and aspires to the administration of the Crown Estate to happen within Scotland under a different constitutional arrangement would be our policy. Beyond that, we are looking for additional leverage over the administration of the Crown Estate in Scotland, so yes is the roundabout answer to your question.

  Q68  John Thurso: In your written evidence you make clear the priority which renewable energy is for the Scottish Government, and I think that is pretty well taken as read, and you have just said that the Scottish Government would prefer to have more charge of what The Crown Estate does within Scotland. Are The Crown Estate Commissioners doing everything they should to realise the opportunity and what would you ideally like to see changed if you had the opportunity to change it?

  Ms Rosborough: The Crown Estate Commissioners are very active on the renewables agenda and have put a lot of resource into working energetically on the agenda and we have a good working relationship at a number of levels because of that. I think they are constrained by the fact that the remit under which they operate constrains their objectives and that means that they take a rather narrower view on what can be achieved than we might wish. So, for example, particularly in the wave and tidal area, there are lots of unknowns, particularly about the environmental implications of putting the devices into the water and there will be a lot of expensive research and monitoring required to underpin the consenting of devices in the water. I think The Crown Estate may be less ready to put money into that sort of activity than they would in another area where the financial benefits are clearer in the short or medium term because of the need that they have to secure return on their investment.

  Q69  John Thurso: It seems to me that there are two strands. There is the pure rental and maximising the economic value, which is obviously what The Crown Estate is directed to do. There is also the more overall socioeconomic value, which is all the bits that should accrue to communities, whether it is Caithness, Orkney, wherever, companies starting, universities, doing training, whatever it is. At the moment those two strands are thought to be more or less overlapping, but it is quite possible that as this develops The Crown Estates strand for pure revenue will go one way and the socioeconomic will tend to pull another way. It seems to me strange—and the previous witnesses alluded to this—that governments either here or in Edinburgh are not more involved in the direction and that The Crown Estate has been left to make all the decisions. Would not the Scottish Government like to have the ability to be more directive towards The Crown Estate to ensure the greater societal economic good rather than simply a revenue stream for The Crown Estate?

  Ms Rosborough: Yes, indeed, very much so.

  Q70  John Thurso: Just one last question. With the passage of the Marine Scotland Act there is a new system coming into effect. How confident are you that there will be sufficient integration between the roles and responsibilities of Marine Scotland and The Crown Estate Commissioners?

  Ms Rosborough: The legislation both in terms of the Scottish legislation and the UK legislation brings in a new statutory system of marine planning and The Crown Estate will be bound by marine plans, as other government agencies and departments are bound by marine plans. So the new legislation will provide an integrating force and it is a momentum in the right direction, but that primarily bites on consenting and authorising decisions and not necessarily the wider role of making things happen, supporting the expansion of the industry, nor the downstream benefits that can flow from an expanding industry. It does not take us into that territory. So it will help, but it is not the full picture.

  Q71  Sir Peter Viggers: The memorandum given to us by the Scottish Government says for some years there has been concern in Scotland, largely from marine users, about whether the management of the Crown Estate in Scotland was sufficiently attuned to Scottish interests and when the Calman Commission looked at this issue in 2009 it came to the conclusion that The Crown Estate in Scotland benefits from being part of a much wider and more profitable estate which enables The Crown Estate to invest in assets in Scotland. From your position as Head of Marine Planning Policy do you see The Crown Estate investing in marine development? Do you see them involving themselves in Scottish development, or do you think that the comment by the Scottish Government that there is not much interest is a fair one? Can you guide us in this?

  Ms Rosborough: I think The Crown Estate has improved in terms of the visibility of the work they are doing in terms of additional investment and they have actually produced some publications as part of their annual report which highlight the work they are doing in Scotland which they did not used to do. I think there is still a gap in terms of perception in Scotland on the extent to which it is perceived as accountable, engaged and involved in Scottish affairs and I think that will continue under the present arrangement.

  Q72  Sir Peter Viggers: You say there is a gap in perception. Do you think there is a gap in reality? Do you think that in fact The Crown Estate is taking from Scotland and not reinvesting not in perception but in reality?

  Ms Rosborough: In reality the driver for The Crown Estate is raising the revenue that is passed back to the Treasury, so in reality the money does flow out of Scotland.

  Q73  Sir Peter Viggers: Into the consolidated fund which benefit the whole of the United Kingdom?

  Ms Rosborough: Yes.

  Sir Peter Viggers: Thank you.

  Q74  Chairman: Can I just be clear about the amount of revenue you think you should get your hands on or you want to get your hands on. Have you quantified that?

  Ms Rosborough: No. I have not got figures to hand today on the revenue, no.

  Q75  Chairman: But you have an aspiration that this money ought to be retained in Scotland?

  Ms Rosborough: The Scottish Government has an aspiration for independence and the Crown Estate is one of many elements of the Scottish Government's aspiration for independence.

  Q76  Chairman: Right, but you have not totted up how much that might bring you?

  Ms Rosborough: No.

  Q77  Jim Cousins: This question in a sense follows naturally on from the Chairman's question. The Crown Estate in their evidence to us have shown us a map of the marine boundaries out to the continental shelf including a boundary between England and Scotland. It is somewhat complicated, of course, by the Isle of Man which The Crown Estate Commissioners have classified to Europe but, be that as it may, I wonder if you have seen this map and if you could have the opportunity of perhaps writing to the Committee and letting us know whether you accept the boundaries that are presented here?

  Ms Rosborough: I would be happy to do so, yes. I have not seen the map, but I would be happy to have the opportunity.

  Q78  Chairman: Could I turn, if I may, to the appointment of The Crown Estate Commissioners and to a Scottish Commissioner, because I think it is one of the things Calman looked at. Why is that so important?

  Ms Rosborough: Why is it important that there is a Scottish Commissioner? I think it is important that, if we continue with the current arrangement, there is a Commissioner who has knowledge of Scottish interests and that is because the marine estate in particular is such an important part of The Crown Estate's overall estate and it is particularly important for Scotland. The Crown Estate is quite an Anglo-centric body as it stands at the moment, and it is important, given more than half of the seas around the UK are Scottish seas, that there is a strong Scottish presence within it.

  Q79  Chairman: But it is still quite a small proportion of the Estate's overall activity and revenue, is it not?

  Ms Rosborough: The revenue comes largely from the more commercial aspects of its holdings, which are predominantly in England in the more urban areas. In terms of the actual area you are talking about very large amounts of territory, if you can count the seabed as territory, being part of the Scottish estate.


 
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