The Scotland Bill

Written evidence submitted by The Highland Council

1. Introduction – Provisions regarding The Crown Estate

Highland Council has long campaigned for reform of the Crown Estate in Scotland. The Council led the Crown Estate Review Working Group (CERWG), which consisted of the Highland and Islands local authorities, HIE and COSLA (as observer). For a full and authorative account of the Crown Estate in Scotland, the Council directs the Bill Committee to the CERWG report of 2007, titled: ‘The Crown Estate in Scotland – New Opportunities for Public Benefit’ Highland Council remains fully supportive of the findings of this report; that there should be a properly constituted review of the Crown Estate in Scotland.

As a contribution to their respective enquiries the Council has previously provided evidence on the Crown Estate in Scotland to the Scottish Parliaments Rural Affairs and Environment Committee, the Calman Commission on Scottish Devolution and the UK Parliament Treasury Sub Committee.

The Highland Council supported the recommendations of the Treasury Sub Committee, particularly where it referred to the need for greater partnership with partners in the marine environment, management arrangements in Scotland, the need for clarity on the public benefits delivered by the Crown Estate and that a future Government should commission a wide ranging review of the management of the Crown Estate. However the Council could not support the recommendation of the Calman Commission on the Crown Estate in Scotland. The Commission’s recommendations were considered very weak and likely to result in very little additional benefits for Scotland.

2. The Scotland Bill: Part 2

Clause 18: Scottish Crown Estate Commissioner

Subsection (2) of this clause amends paragraph 1 of Schedule 1 to the Crown Estate Act 1961 so as to require that one of the Crown Estate Commissioners be appointed as the Scottish Commissioner. Subsection (3) inserts a new paragraph 1(4A) into Schedule 1 which requires the Chancellor of the Exchequer to make any recommendation to Her Majesty as to whom to appoint as the Scottish Commissioner, and to consult the Scottish Ministers before making that recommendation.

The Highland Council is firmly of the view that Clause 18 of the Scotland Bill does not go far enough. The Council believes that the only way to ensure improved accountability and that direct benefits are delivered to Scottish communities is through fully devolving the management, administration and revenues of the Crown Estate in Scotland to Scottish Ministers in the first instance. Given the new management, regulation and planning roles of Marine Scotland, the case for full devolution is even stronger.

Securing a wide range of benefits from offshore renewable energy developments is a major policy area for The Highland Council which, with its Highland and Island partner authorities has been discussing how community benefits can be delivered via the Crown Estate Commissioners current role as marine landlord, regulator and revenue income generator. The H&I partners wish to maximise:

· Skills development and training opportunities;

· Available infrastructure, including the contribution made by local harbours and testing facilities to the offshore energy sector;

· The involvement of local companies in the offshore sector;

· Ownership of seabed within harbour areas by harbour authorities;

· Employment during the construction and maintenance, and ;

· Wider community benefits, including community ownership or assets and resources.

The current arrangements can been seen as being unaccountable and have placed constraints in relation to harbour developments and aquaculture. While discussions regarding joint projects have been helpful, little headway has been made in terms of agreeing the procedures for collecting and distributing community benefit contributions under the present arrangements.

This is a major stumbling block to securing future benefits from renewable energy developments in the marine environment. It is an issue that The Highland Council has raised in its response to the Scottish Governments current consultation: ‘Securing the benefits of Scotland’s Next Energy Revolution’. A copy of the response, which includes the Council’s thinking on the collection and distribution of community benefit from offshore renewable energy projects, is available to the Committee on request.

The Highland Council would therefore recommend that Clause 18 be amended to make provision for devolving the management, administration and revenues of the Crown Estate in Scotland to Scottish Ministers.

The Highland Council would very much welcome the opportunity to provide oral evidence on this part of the Scotland Bill if invited to do so.

January 2011