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Scottish Crown Estate Act 2019

Type Act of the Scottish Parliament

Publication 2019-01-15

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Part 1 — Crown Estate Scotland

Crown Estate Scotland

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(1) Crown Estate Scotland (Interim Management) (in Gaelic, Oighreachd a' Chrùin Alba (Stiùireadh Eadar-amail)) is renamed and is to be known as Crown Estate Scotland (in Gaelic, Oighreachd a' Chrùin Alba).

(2) Any reference in any enactment to Crown Estate Scotland (Interim Management) is, unless the contrary intention appears, to be construed as a reference to Crown Estate Scotland.

(3) Schedule 1 makes further provision in consequence of this section.

Part 2 — Changes in management of Scottish Crown Estate assets

Meaning of “Scottish Crown Estate”, “asset” and “manager”

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In this Act—

“Scottish Crown Estate” means the property, rights and interests to which section 90B(5) of the Scotland Act 1998 applies,

“asset”, in relation to the Scottish Crown Estate, means any property, right or interest forming part of the Scottish Crown Estate, other than money or investments,

“manager” means a person who, for the time being, has the function of managing one or more Scottish Crown Estate assets on behalf of the Crown.

Transfer of management function

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(1) The Scottish Ministers may by regulations make provision for or in connection with the transfer of—

(a) the function of managing a Scottish Crown Estate asset from the manager of the asset to another person mentioned in subsection (2) (“the transferee”),

(b) any right or liability the manager has in relation to the asset to—

(i) the transferee,

(ii) another person mentioned in subsection (2).

(2) The persons referred to in subsection (1)(a) and (b)(ii) are—

(a) the Scottish Ministers,

(b) Crown Estate Scotland,

(d) another Scottish public authority with mixed functions or no reserved functions (within the meaning of the Scotland Act 1998),

(e) a Scottish harbour authority,

(f) a community organisation.

(3) Regulations under—

(a) subsection (1)(a) may include provision—

(i) restricting the exercise of the function by the transferee,

(ii) about the management of records relating to the exercise of the transferee's functions as a manager,

(b) subsection (1)(b) may transfer different rights or liabilities to different persons.

(4) Where the transferee is a community organisation, regulations under subsection (1) may—

(a) provide that, if the transferee ceases to exist, the function of managing a Scottish Crown Estate asset, and any rights or liabilities the transferee has in relation to such an asset or former asset, are to transfer to another person mentioned in subsection (2),

(b) require the transferee to notify the Scottish Ministers of any proposed change to its constitution which would result in the transferee ceasing to be a community organisation,

(c) require a court or a person specified in the regulations to notify the Scottish Ministers of any application made to the court or person which, if granted, would result in the transferee—

(i) ceasing to exist, or

(ii) ceasing to be a community organisation,

(d) make such other provision in connection with the transferee ceasing to exist or to be a community organisation as the Scottish Ministers consider appropriate.

(5) Where the transferee is a Scottish harbour authority, regulations under subsection (1) may—

(a) provide that, if the transferee ceases to exist, the function of managing a Scottish Crown Estate asset, and any rights or liabilities the transferee has in relation to such an asset or former asset, are to transfer to another person mentioned in subsection (2),

(b) require a court or a person specified in the regulations to notify the Scottish Ministers of any application made to the court or person which, if granted, would result in the transferee ceasing to exist,

(c) make such other provision in connection with the transferee ceasing to exist as the Scottish Ministers consider appropriate.

(6) Before making regulations under subsection (1), the Scottish Ministers must consult—

(a) each person from or to whom the regulations would (if made) transfer a function, right or liability,

(b) such other persons as the Scottish Ministers consider appropriate.

(7) Regulations under subsection (1) may modify any enactment.

(8) In subsection (3)(a)(ii), “management” includes keeping, storage, securing, archiving, preservation, destruction or other disposal.

Directions requiring delegation of management function

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(1) The Scottish Ministers may direct the manager of a Scottish Crown Estate asset to delegate the function of managing the asset to another person mentioned in section 3(2)(c), (d), (e) or (f).

(2) Subsection (1) does not apply where the manager is—

(a) the Scottish Ministers,

(b) a Scottish harbour authority,

(3) A direction under subsection (1) must—

(a) be in writing,

(b) set out—

(i) the person to whom the function is to be delegated,

(ii) any terms and conditions on which the function must be delegated.

(4) Before giving a direction under subsection (1), the Scottish Ministers must consult—

(a) the manager to whom the direction is to be given,

(b) the person to whom the function is to be delegated,

(5) A direction under subsection (1) may—

(a) be given only with the consent of the person to whom the function is to be delegated,

(b) be revised or revoked by the Scottish Ministers at any time before they consent to the terms and conditions on which the function is to be delegated under section 5(6)(b).

(6) Subsections (4) and (5)(a) apply to the revision or revocation of a direction under subsection (1) as they apply to such a direction.

(7) The Scottish Ministers must publish, in such manner as they consider appropriate—

(a) any direction given under subsection (1), or revised under subsection (5)(b),

(b) notice of any revocation of such a direction under subsection (5)(b).

(8) A direction or revised direction may be published in whole or in part, but the following information must not be withheld from publication—

(a) the manager to whom it was given,

(b) the asset to which it relates,

Delegation agreements

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(1) The manager of a Scottish Crown Estate asset (other than the Scottish Ministers) may delegate the function of managing the asset only if directed to do so by the Scottish Ministers under section 4(1).

(2) Where the Scottish Ministers are the manager of a Scottish Crown Estate asset, they may delegate the function of managing the asset to—

(a) Crown Estate Scotland,

(b) a local authority,

(c) another Scottish public authority with mixed functions or no reserved functions (within the meaning of the Scotland Act 1998),

(d) a Scottish harbour authority,

(e) a community organisation.

(3) Delegation of the function of managing a Scottish Crown Estate asset is to be given effect to by an agreement in writing between the manager of the asset and the person to whom the function is to be delegated.

(4) That agreement must set out the period for which, and other terms and conditions on which, the function is delegated.

(5) The terms and conditions may, in particular, provide for—

(a) restrictions on the exercise of the function by the person to whom it is delegated,

(b) circumstances in which the agreement may, or is to, be terminated.

(6) Where the manager is not the Scottish Ministers—

(a) the terms and conditions of a delegation agreement must include any terms and conditions set out in the direction in pursuance of which the agreement is made,

(b) the Scottish Ministers must consent to the terms and conditions (and a purported delegation without that consent has no effect).

(7) Except to the extent that the delegation agreement provides otherwise—

(a) the person to whom the function of managing the asset is delegated is to be treated as, and has all of the powers and duties from time to time applying to, the manager of the asset for all purposes (other than those of this Part),

(b) the function is not exercisable by the manager of the asset (and the manager is not responsible for its exercise).

Meaning of “community organisation” and “Scottish harbour authority”

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(1) In this Part, a “community organisation” is—

(a) a body corporate (other than a Scottish public authority) which—

(i) relates to a community, and

(ii) has a written constitution which includes the matters mentioned in subsection (2), or

(b) a body corporate designated as a community organisation, or falling within a class of bodies designated as community organisations, for the purposes of this Act by the Scottish Ministers by regulations.

(2) The matters referred to in subsection (1)(a)(ii) are—

(a) provision that the body must have no fewer than 20 members,

(b) a definition of the community to which the body relates,

(d) provision that the members of the body who consist of members of that community have control of the body,

(e) provision that membership of the body is open to any member of that community, and

(f) a statement of the body's aims and purposes, including the promotion of a benefit for that community.

(3) In this Part, “Scottish harbour authority” means a harbour authority in relation to a harbour in Scotland.

(4) In subsection (3), “harbour authority” and “harbour” have the meanings given in section 57(1) of the Harbours Act 1964 (interpretation).

Part 3 — Management of Scottish Crown Estate assets

Managers' powers and duties

Duty to maintain and enhance value

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(1) The manager of one or more Scottish Crown Estate assets must maintain and seek to enhance—

(a) the value of the assets, and

(b) the income arising from them.

(2) In complying with the duty under subsection (1), the manager must—

(a) act in the way best calculated to further the achievement of sustainable development in Scotland, and

(b) seek to manage the assets in a way that is likely to contribute to the promotion or the improvement in Scotland of—

(i) economic development,

(ii) regeneration,

(iii) social wellbeing,

(iv) environmental wellbeing.

Power to act as owner

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(1) The manager of a Scottish Crown Estate asset may do anything on behalf of the Crown in respect of the asset that the Crown could do as owner of the asset.

(2) The manager may hold the asset on behalf of the Crown if—

(a) the asset cannot vest in the Crown, or

(b) the manager is satisfied that it is more convenient for the asset to vest in the manager than to vest in the Crown.

(3) The manager may—

(a) transfer ownership of the asset,

(b) acquire land on behalf of the Crown.

(4) When the manager acquires land on behalf of the Crown, the land becomes a Scottish Crown Estate asset which is managed by that manager.

(5) This section—

(a) is subject to any restriction placed on the powers of the manager by this Act or any provision made under it, or any other enactment relating to Scottish Crown Estate assets, but

(b) is not subject to any other restriction on the powers of the person who is the manager which would not also apply to the powers of the Crown as owner of the asset.

(6) Where the consent of the Scottish Ministers is required by this Act, or any provision made under it, for the transfer of ownership, or acquisition, of a Scottish Crown Estate asset, any such transfer or acquisition made without that consent is void.

(7) In subsections (3) and (4), “land” includes buildings and other structures, land covered with water, and any right or interest in or over land.

Transactions on behalf of Her Majesty

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(1) The manager of a Scottish Crown Estate asset may enter into a transaction in relation to the asset in the same manner, and with the same formalities, as if the manager were acting on behalf of a person other than Her Majesty.

(2) A document relating to the asset which is executed by the manager in the name of Her Majesty is to be construed, and may be registered, as if the manager were acting on behalf of a person other than Her Majesty.

(3) In subsection (2), “registered” means—

(a) recorded in the Register of Sasines,

(b) registered in the Land Register of Scotland, or

(4) The Scottish Ministers may by regulations modify the definition of “registered” in subsection (3).

Disposals requiring Ministerial consent

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(1) Where subsection (2) or (3) applies, the manager of a Scottish Crown Estate asset (other than the Scottish Ministers) may transfer ownership of the asset only with the consent of the Scottish Ministers.

(2) This subsection applies where, as a result of the transfer, the manager would no longer manage any Scottish Crown Estate assets.

(3) This subsection applies where the asset is or includes a portion of the seabed (that is, the bed and subsoil of the sea within the Scottish marine area).

(4) In subsection (3)—

“Scottish marine area” is to be construed in accordance with section 1 of the Marine (Scotland) Act 2010,

“sea” is to be construed in accordance with section 2 of that Act.

Duty to obtain market value

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(1) The manager of a Scottish Crown Estate asset must not make any of the following transactions (“a relevant transaction”) for consideration of less than market value—

(a) a transfer of ownership of the asset,

(b) a grant of a lease of the asset,

(2) Despite subsection (1), the manager may make a relevant transaction for consideration of less than market value (including for no consideration) if the manager is satisfied that the relevant transaction is likely to contribute to the promotion or the improvement in Scotland of—

(a) economic development,

(b) regeneration,

(d) environmental wellbeing, or

(e) sustainable development.

(3) In deciding whether to make a relevant transaction for consideration of less than market value, the manager must have regard to the likely effect of the transaction on the value of the Scottish Crown Estate as a whole.

(4) Subsection (1) does not apply where the manager makes a relevant transaction—

(a) for the purpose of complying with an obligation enforceable against the Crown or against the manager,

(b) in pursuance of paragraph 3(2) or 4(2) of Part 1 of schedule 4 of the Crown Estate Transfer Scheme.

Meaning of “market value”

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(1) In section 11, “market value” means the estimated amount which it would be reasonable to pay in respect of a relevant transaction based on the assumption that the transaction is agreed to—

(a) on the day on which the determination of the estimated amount is made,

(b) on an arm's-length basis,

(d) between parties each of whom has acted knowledgeably, prudently and willingly,

(e) on a day on which a person other than a manager is offering to make a transaction equivalent to the relevant transaction in relation to an asset which is similar to the asset to which the relevant transaction relates, and

(f) where the relevant transaction is a grant of a lease, on appropriate terms of lease.

(2) But where a manager enters into an agreement under which a relevant transaction may or is to occur more than 10 years after the day on which the agreement is entered into—

(a) subsection (1)(a) does not apply, and

(b) the estimated amount is to be determined on the day on which the relevant transaction may or is to occur.

(3) In the application of section 11 to a relevant transaction made in pursuance of—

(a) an agreement within the meaning of paragraph 15 of Part 3 of schedule 4 of the Crown Estate Transfer Scheme, “market value” has the meaning given in that paragraph,

(b) an agreement within the meaning of paragraph 25(1) of Part 4 of that schedule, “market value” has the meaning given in that paragraph.

(4) The Scottish Ministers may by regulations modify—

(a) the definition of “market value” in subsection (1),

(b) the application of that definition in subsection (2).

(5) In this section, “relevant transaction” is to be construed in accordance with section 11(1).

Directions about rent and other charges

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(1) The Scottish Ministers may, in a direction under section 37(1), specify—

(a) the amounts that managers may charge—

(i) by way of rent for the lease of Scottish Crown Estate assets,

(ii) in connection with any other agreement for the use of the assets, or

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