THE ABSENTEE LANDLORD

The news about the developers being chosen to develop off shore wind energy fields of our coast is actually some good news. That said, once again Wales will receive little or no benefit from the economic exploitation of its own natural resources, except this time the waters are off-shore rather than inland or underground. Why should the fees go to the Crown and the UK Treasury? And not to Wales? 

The Welsh Government should (but won’t) insist that decisions about the use of Wales’ natural resources should be made in Wales for the benefit of Wales. Even without devolved powers they should been able to set up a Welsh national energy company immediately to develop our own Welsh-owned sector and have  at least explored the  possibilities of setting up an embryonic sovereign wealth fund for receipts, rents received, etc.

The two companies - BP and EnBW ( described by the BBC as a German energy firm)  have been chosen as the preferred developers for a major new wind farm off the north Wales coast. Both companies are effectively the preferred developers for a 500 square kilometre lease, situated approximately 30 kilometre off the north Wales coast, and another 300 square kilometre site east of the Isle of Man. These off shore  wind farms have the potential to generate enough power for 3.4 million homes. 

Now what is worth noting in passing is that EnBW is over 90% owned by the regional government and local authorities of Baden-Wurttemberg - not they you will find any reference to that on the BBC. It is doubly ironic that the Scandinavian State-owned Vattenfall and Statkraft and largely State-owned EDF mean that citizens of other countries will own more of Wales' renewable sector than we do ourselves (and also benefit from it).

The Welsh Government has understandably stated that it is looking forward to working with the two companies. The devil, as they say, lies in the detail or perhaps in the case the literal small print, once you get beyond the spin. Understandably the Westminster government, has called this development a "major vote of confidence in the UK's green economy and net zero ambitions”. 

Now that’s all very well and good. However, it gets more interesting the further you delve, it turns out that it is the Crown Estate, not the Welsh government, which manages the seabed around Wales, as it does with the seabed of England and Northern Ireland, has also announced six proposed new offshore wind projects.

The auction of seabed rights - which was the first of its kind in a decade - apparently attracted frenzied bidding. Both the projects will now move onto the next stage in the lengthy process for acquiring rights to build out at sea - which involves assessing the potential impacts on habitats and wildlife.

The Crown Estate expects this to conclude in Spring 2022 and subject to the outcome the developers could then be granted an agreement for lease and be able to start getting their projects through the planning process - including consulting with local communities. With luck and hard work the projects could begin to generate electricity by the end of the decade.

Beyond being either a willing or a reluctant minor partner the Welsh Government has little choice in the matter but to co-operate. Of course once our nation achieves independence, then there will be no question, of course, of the Crown Estate auctioning off development rights with no direct benefit then to the people of Wales. This deal clearly  demonstrates that Wales' marine energy potential is of international significance.

The Crown Estates, plays the role of barely mentioned absentee landlord, in Cymru / Wales. As far back as March 2012  a report produced by the then Scottish Affairs Committee (in Westminster) stated that the Crown Estates management of the marine environment around Scotland lacked transparency and public consultation. 

The Crown Estate's owns portions of our coast, almost all the seabed, and some of the land beneath our feet - little appears to have changed in relation to the lack of transparency and the lack of public consultation . It owns around 65 per cent of the Welsh foreshore and riverbed, and inland, and also owns around 27,800 hectares (68,700 acres) of Welsh common land, owns the rights to the sites of fish farms, renewable energy developments, ports and marinas.  

The Westminster government (post BREXIT) if it believes in ‘local control’ should commit to having the Crown Estate's seabed and marine responsibilities and all rights related to Wales devolved to the Welsh government. Those who have dealt with the Crown Estates on a regular basis are often highly critical of the Crown Estate - back in 2012 the then Scottish Affairs Committee (in Westminster) heard that the organisation effectively behaved like an "absentee landlord" and "tax collector".

The revenues do not belong to the monarch and surplus revenue from its businesses are paid each year to the Treasury. The Crown Estates revenues in Cymru / Wales are not vast at the moment, but, the assets have what could best be described as game changing potential. That's why control of these marine and and coastal assets particularly in the case of renewables and off shore wind generated hydrogen could our nation to opportunity to reboot our economy and make a significant contribution to fighting global climate change.

Our energy and water resources including the responsibility for sewerage for the whole territory of Wales should be the responsibility of the Welsh Government. The Crown Estate still remains largely unaccountable to the people of Wales and all profits from its holdings (which includes on and off shore wind farms) are passed to the UK Westminster Government. Profits from these holdings are likely to grow significantly mostly due to the growing demand for renewable energy. 

For way too long our natural resources have been run for the benefit of others with few real or lasting benefits trickling down to the people of Wales. Ownership and control over the Crown Estates in Wales should be transferred to the Welsh Government. The final say on how our natural resources are exploited and developed should be the direct responsibility of the Welsh people (and the Welsh Government) with 85% of the profits or dividends directly benefit the people who live here rather than opaque absentee landlords.