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Civil List

Much of what I wish to say has already been said. I congratulate the Chancellor on what seems to be the beginnings of an elegant solution to a difficult problem. I wish to make three quick points for him. First, on the matter of principle, it is extremely important that the process does not become a formula that is reviewed annually which puts the whole of the household's finances into play on an annual basis. Whatever method is used for the calculations, it must be robust enough, as the previous debates that the shadow Chancellor cited made clear, to allow the dignity of the Crown across a period of time. That is an important principle. Secondly, as other Members have suggested, we should consider exactly what we mean by the profit, because students of the Crown Estate's annual finances will know that that is a highly variable figure, depending on the point at which we decide to look. It depends on whether it is the operating profit and whether there are movements in surpluses. There is one number that we might look at, which is not necessarily a profit but relates most closely to what might be regarded as the surplus cash within the Crown Estate: the annual remittance to the Treasury, which last year was £200 million or so. That is the figure that the Crown Estate remits to the Treasury, having considered what it wishes to withhold for future investment and having regard to the various discrepancies that come in the statement of total recognised gains and losses. The Chancellor might wish to look at that percentage, rather than a particular profit figure, and perhaps it could be made clear whether the grant is intended to be supplemental to that £200 million or part of it. My final point relates to the Chancellor's comment on the potential income from marine renewable energy, including wind, tidal and wave energy. It is rather curious that that sits within the Crown Estate at all. If we look at the precedent of the Forestry Commission, which was created in 1919, and to which the Crown Estate forests were transferred in 1923, we will see that it might be worth considering whether the marine estate should be transferred in its entirely out of the Crown Estate and possibly given to all the local authorities on the coast that could benefit from what is going on. That might be an interesting way of giving a direct benefit to local authorities on the coast, where marine energy could form the bedrock of a future economy, without having to trouble the Chancellor. I leave that little thought with him and again congratulate him on what looks like the beginnings of a very elegant solution to an old problem.