Varinder Jassal Senior Internal Auditor



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Mr John Cross

By email



Varinder Jassal

Senior Internal Auditor

Tel: 020 7851 5156

Fax: 020 7851 5125

E-mail: xxxxxxxx.xxxxxx@xxxxxxxxxxxxxx.xx.xx










15 September 2011

Dear Mr Cross

I am writing to let you know the outcome of the internal review that you requested in your email of 18th August 2011 in respect of your original Freedom of Information Act (FOIA) request received on 6th August 2011.
My role was to assess whether The Crown Estate’s handling of your request for information had complied with the provisions of the FOIA:


  • to assess whether The Crown Estate has complied with its responsibilities under the FOI Act, including timeliness, and conducting sufficient and reasonable searches;

  • to assess whether any exemptions were applied properly; and

  • to re-consider the public interest in disclosure and determine whether the information should be disclosed.

I have therefore reviewed and considered all documentation relating to your information request and also met with the individuals who dealt with your enquiries.


You asked for…“a list of non-current assets held by The Crown Estate at 31 March 2011, which were included in the 2011 accounts at a value of £7,884M”, and asked us to include “the name/description and book value of each asset.” You also asked for a brief description of types of non-current assets not given a value in the accounts.

The response on 18th August 2011 cited a section 43 exemption, in that the provision of property values would prejudice our ability to operate commercially and competitively. The public interest case stated that as the revenue surplus of The Crown Estate goes to the public purse, the public interest in maintaining commercially robust outcomes in terms of future Crown Estate revenue outweighs the public interest in making this detail public.



Findings and conclusion

My findings and conclusion are as follows:



  1. Procedure and handling matters: your request for information was responded to within the timescales set out in the FOIA




  1. Section 43 Exemption: the original response to you from The Crown Estate withheld property values on the basis that the provision of property values would prejudice our ability to operate commercially and competitively. I have concluded that this exemption was correctly applied, as revealing The Crown Estate’s valuation of individual properties assets would prevent us from obtaining a fair and commercial result in the event of future transactions. This exemption does not however extend to non-property assets within the balance sheet and I have found in your favour in this respect.




  1. Public interest: the response also referred to the public interest test and explained how this had been considered. This has been fully and clearly considered and explained and was applied correctly to the value of the properties. However, you should have received a list of The Crown Estate property interests and the details requested on non-property assets.




  1. Therefore I provide at Annex A the information that you requested.

If you remain unhappy with the outcome of the internal review, you have the right to apply directly to the Information Commissioner for a decision. The Information Commissioner can be contacted at: Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF.



Yours sincerely

Varinder Jassal

ANNEX A

Additional Information provided to Mr Cross under FOIA following an independent review
Schedule of properties


  1. There is no property schedule as at 31 March 2011, but the most up to date Schedule of Properties Rights and Interests (as at 30 June 2011) is available through our website (link here) and I attach a copy (attached pdf file) in line with your request. There have only been very minor changes in the intervening period.


Non-current assets not given a value in the accounts


  1. Assets which are not revenue producing are not given a capital value in The Crown Estate accounts. These include:




      1. Areas of the foreshore and seabed which are not subject to any lease or dealing. The Crown Estate own around half of the foreshore, the area between mean high and mean low water (spring tides in Scotland) and approximately half of the beds of estuaries and tidal rivers in the United Kingdom. The Crown Estate own virtually the entire seabed out to the 12 nautical mile territorial limit, including the rights to explore and utilise the natural resources of the UK continental shelf including storage of methane and carbon dioxide (excluding oil, gas and coal).

      2. Other areas of ancient possession which are not let

      3. Natural Oysters and mussels

      4. Salmon fishing

      5. Gold and silver

      6. Minerals and rights reserved out of previous sales

      7. Reverters - properties that form part of the hereditary possessions of the Crown which have long been occupied without payment by the Ministry of Defence and other Government Departments.

      8. Escheated land - land that has no owner other than the Crown as lord paramount of the whole soil of the country. Escheat may in some circumstances arise as a result of bankruptcy or the dissolution of companies, although freeholds owned by dissolved companies which were registered in England or Wales are dealt with by the Treasury Solicitor as Bona Vacantia.

      9. Licences and right granted at nil rent (e.g. water mains, cables, substations, war memorials etc)




  1. The Crown Estate valuation is carried out by external valuers on the basis of open market value in accordance with the Appraisal and Valuation standards published by The Royal Institution of Chartered Surveyors (RICS) – further details can be found via the following link http://ar2011.thecrownestate.ry.com/financials/notes.aspx#note15


Non-property fixed assets


  1. A schedule antiques and museum pieces at 31 March 2011 is attached at Annex B and summarised below. The vast majority of the 424 items are held within our portfolio of heritage properties let to tenants within the terms of their leases. A small number of items are held within our offices at New Burlington Place and at Windsor.




Summary of Antiques and Museum Pieces

Net Book Value
£'m


Pictures, drawings and prints

3.6

Furniture and objects

0.9

Sculpture

0.3

Garden Statuary

0.3

Antiqities, Books, manuscripts and photographs

0.1

TOTAL__5.2'>TOTAL

5.2




  1. The remainder of the other “non current assets” “other property, plant and equipment” number over 3400 items comprising plant and machinery, office equipment and motor vehicles. I have provided below an analysis of the types of assets under each of the subheading along with values and a complete schedule of assets at Annex C .




Asset Class

Asset Subclass

Net Book Value (£m)

Plant and Machinery


Agricultural and Forestry equipment - lawnmowers, chainsaws etc

Public Realm assets – CCTV, Regent Street lights etc.



0.5

0.0


Office Equipment

IT Software (inc capitalised development costs)

IT Hardware

Office equipment – desks, tables, shredders, photocopiers etc


5.5

0.6


0.1

Motor Vehicles

Cars

Other Vehicles (including land rovers, tractors, trailers etc)



0.0

0.4





TOTAL

7.1


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