This is a rewrite of a piece originally written in 2015 and long overdue given the number of developments in this area since then.
If the Crown Estate was devolved to Wales in the future, you would assume it would be managed similarly to Scotland (more on this coming up).
Upon independence, the Crown Estate’s offshore assets would transfer to the Welsh Government as all independent nations have control over their foreshore, seabed and continental shelf. I’m not so sure about “onshore” assets (like estates) – but they’re often either too small to bother with or managed by organisations like Cadw. The money maker is out at sea.
The options available would be slightly different depending on who the head of state would be. I’m putting (M) to signify a monarchist scenario, (R) for options more suited to a republic and (M & R) where it would suit both.
- The Status Quo; Crown Estate management (M) – The Crown Estate continues to manage its current assets in Wales, with 15% of the net profits (the equivalent of £1.4million in 2020-21) going towards the Sovereign Support Grant and the remainder going to the Welsh Treasury.
- The Scottish Model (M) – The Crown Estate’s assets remain “in right of The Crown” (the monarch is the legal owner), but all net profits go to the Welsh Treasury to spend however they wish. An independent agency and board would be appointed to manage the estate’s assets, fully accountable to the Senedd.
- Natural Resources Wales Management (M & R) – As the Scottish Model above, but instead of an independent agency being established, control and administration passes to Natural Resources Wales, with net profits returning to the Welsh Treasury. This can either be done with the assets remaining “in right of The Crown” or fully nationalised as state assets.
- Direct Welsh Government Control (R) – A Welsh Government department would be responsible for managing the current assets of the Crown Estate. All net profits got the Welsh Treasury. This is similar to the arrangements in the Republic of Ireland.
- A Public Estates Management Agency (R) – All state-owned land and property in Wales, including offshore assets, would transfer to a single management agency to act as a corporate landlord. Germany, Finland, Austria and Sweden have similar agencies, though they’re focused on onshore properties like government buildings.
- Local management & regulation (R) – Local or federal state authorities would manage the foreshore and territorial waters off their particular coasts, keeping revenues for themselves. This is similar but not completely identical to what happens in the United States.
As for what happens with the money itself, there are several options including:
- Returning all of the net profits to the Welsh Treasury for general public spending.
- Using some of the net profits to pay towards the upkeep of an elected head of state (similarly to how it’s used now, but in a republic).
- Holding net profits in escrow for suitable projects in coastal communities.
- Nationalising the assets as part of a state energy company.
- Using the net profits to match fund or contribute towards coastal and onshore renewable energy, carbon reduction and environmental restoration/conservation projects (similar to how the single-use bag charge is used).
The figures speak for themselves though – an £8.7million profit last year.
There isn’t a massive financial windfall awaiting Wales from the Crown Estate as things currently stand. The issue ultimately comes down to who controls the land, seabed and foreshore and whether any profits generated, however meagre, should be Wales’ by right. Also, any Welsh Government of any colour wanting to found a national/state-owned energy company pretty much has to have control over offshore renewables to make such a venture more viable.
