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Scottish Parliament take powers away from The Crown Estate

By: Sheena Maguire 28/11/2014 SG Communications

General Grid Tidal Windfarms

The Crown Estate has been responsible for leasing areas of seabed for all stakeholders including those interested in development of Offshore Wind, Tidal and Power projects. Lord Smith has today published his recommendations for further devolution of powers to the Scottish Parliament.

These include taking on the responsibility for the management of the Crown Estate’s economic assets in Scotland, and the revenue generated from these assets, will be transferred to the Scottish Parliament. This will include the Crown Estate’s seabed, urban assets, rural estates, mineral and fishing rights, and the Scottish foreshore for which it is responsible.

Following this transfer, responsibility for the management of those assets will be further devolved to local authority areas such as Orkney, Shetland, Na h-Eilean Siar or other areas who seek such responsibilities. It is recommended that the definition of economic assets in coastal waters recognises the foreshore and economic activity such as aquaculture.

The Scottish and UK Governments will draw up and agree a Memorandum of Understanding to ensure that such devolution is not detrimental to UK-wide critical national infrastructure in relation to matters such as defence & security, oil & gas and energy, thereby safeguarding the defence and security importance of the Crown Estate’s foreshore and seabed assets to the UK as a whole.

Responsibility for financing the Sovereign Grant will need to reflect this revised settlement for the Crown Estate.

The Crown Estate whilst better known as a Landlord of some of the more prestigious areas of the UK such as St. James and Regent Street, and constructed a significant portfolio of prime retail assets across the country, they have according to them during the last ten years

committed over £100 million to help drive the UK's fast growing offshore renewable energy industry
overseen the installation of offshore wind farms that are already meeting the electricity needs of 1.4 million homes
adopted a proactive, co-investment approach to our Round 3 offshore wind leasing, which has resulted in the UK leading the world in the offshore wind market
helped establish a new renewable industry by completing the world's first commercial wave and tidal leading rounds

First Minister Nicola Sturgeon said that while she welcomed the transfer of those powers recommended by the report the proposals fall well short of commitments made during the referendum campaign, and far short of the proposals made by the Scottish Government and by a wide range of civic organisations and people across Scotland.

The First Minister is today writing to the Prime Minister to agree an approach to take forward the Smith Commission proposals.

The First Minister said:

“I spoke to Lord Smith earlier today and thanked him for the job he has done in chairing the Commission and getting agreement on the package of proposals.

“The Scottish Government has played a full and constructive part in the work of the Commission, and I welcome the proposed transfer of those powers it recommends should come to Scotland.

“However, I am disappointed that the report falls well short of the proposals from the Scottish Government and those from a wide cross section of civic Scotland – proposals which would have ensured a powerhouse parliament in line with the various commitments made to ‘home rule’ and ‘maximum devolution’.

“We will use whatever new powers are delivered to the Scottish Parliament to ensure we take forward this Government’s work to create a fairer and more prosperous country for everyone who lives here.

“I am today writing to the Prime Minister on the next steps in the process and how the Smith Commission proposals are taken forward. The Scottish Government will work jointly with the UK Government on the next stage of this progress, in line with the full and constructive part we have played so far.

“We want to ensure that the spirit and intention of the Smith recommendations are reflected in the legislative proposals to be published by the end of January, and that the process includes the people of Scotland following the unprecedented levels of engagement during the referendum, and the public consultation continued by Lord Smith.”

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Scottish Parliament take powers away from The Crown Estate

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