Senedd members criticised Labour’s “utterly embarrassing” position on the Crown Estate, with ministers in Cardiff Bay backing devolution while Westminster blocks reform.

Plaid Cymru’s Luke Fletcher said 75% of the public supports devolving powers over the Crown Estate which owns much of the seabed around Wales and 50,000 acres of land.

The shadow economy secretary told the Senedd: “If I was a member of the Welsh Government, I would be both embarrassed and fuming right now.

“Here we are again, another debate on the Crown Estate, and we'll see what we always see … Labour MSs getting up to voice their strong support for its devolution, only for them then to be undermined by Labour colleagues in Westminster.”

Mr Fletcher criticised Labour MPs for voting down a Plaid Cymru amendment to the crown estate bill, which called for its devolution, in February.

Pointing out that 17 of 22 councils have backed devolution, he said: “It's quite unbelievable that Labour MPs in Wales voted down that amendment when it is their party's policy.”

He argued the UK Government’s arguments against devolution do not stand up to scrutiny.

Mr Fletcher said: “They claim it would fragment the energy market and delay grid connectivity reform, but in reality the current system is already delaying projects.

“At least a Wales-run Crown Estate would have the ability to unlock new developments, set the terms of investment and ensure infrastructure constraints are tackled in Wales' interest.”

He said funding for Scotland from Westminster was reduced by £10m as a result of devolution in 2017 but the revenue generated was £113m in 2023/24.

But Janet Finch-Saunders argued the Crown Estate should “absolutely not” be devolved to Wales due to the risk of market fragmentation.

The Conservative stated Wales and the UK lead the world on renewables, warning devolution risks making processes more bureaucratic and complicated.

She said: “Our time in this Welsh Parliament should be spent on tackling the real problems facing us here in Wales – not your constant obsession with further devolution.”

Labour’s Alun Davies said he did not understand the UK Government’s position, stressing the question of the devolution of the Crown Estate is deeply practical and philosophical.

Mr Davies read the debate in the House of Commons and was concerned by the response.

He told Senedd members: “You would have thought that the proposal was control of the Crown Estate in Wales be transferred not to a Crown Estate Wales or under the control of this parliament and this government, but to the control of some foreign power.”

Plaid Cymru’s Cefin Campbell said more than £100,000 flows from councils in mid and west Wales to the coffers of the UK treasury and royal family every year.

Mr Campbell told the Senedd: “This debate comes at a time when the financial situation of our councils is at its worst in generations.

“For 15 years now, due to budget cuts under blue and red governments in Westminster, local authorities have been forced to cut public services and increase council tax….

“How on earth, therefore, is it possible to justify, in the age of austerity that we are facing, sending more than £105,000 over the border every year to the British Government and to one of the richest families in the UK, if not the world?

Mr Campbell added: “Either the Welsh [Labour] colleagues here in the Senedd are not very good at making the case to your Westminster colleagues, or they are just not listening. Which is it? Are you, basically, two parties pretending to be one?”

During the debate on March 25, economy secretary Rebecca Evans reiterated the Welsh Government’s position that the Crown Estate should be devolved.

She said: “I’ll just start with a newsflash really … and that’s that Welsh Labour has policy autonomy, so it is natural that there will be points at which we take a different view.”

Welcoming the appointment of a Crown Estate commissioner to represent Welsh interests, she stressed that devolution “will not happen overnight”.

Ms Evans told Senedd members: “Investor confidence in the political and policy landscape is essential to bring the scale of investment that we want to see to Wales. The Crown Estate has played a significant role in attracting international investment.”

The minister, who is responsible for energy and planning, said: “We will continue to press the UK Government…. There is no reason for Wales to be treated differently to Scotland.”