To provide an update on progress with the legal action arising from the proposed development.

1.1 The formal claim against the 1962 Menai Strait Oyster and Mussel Fishery Order by the Isle of Anglesey County Council and the Crown Estate Commissioners acting jointly is set out in their court submission at Annex A.

1.2 There are two defence court submissions prepared on behalf of the four Defendants. The first at Annex B is the defence of the National assembly for Wales prepared by UK Treasury Solicitors and the second at Annex C is the combined defence of this Committee and the two mussel companies which hold lays which would be directly impacted by the marina development. These defence submissions were served on the Claimants within the Court deadline on 17 May 2007.

2.1 At the time of writing, decisions on how the case will proceed have still to be finalised. We expect that the next step will be for the Court to hold a ‘case management conference’ with representatives of all parties to agree how the two parallel legal actions (the FEPA licence judicial review and the declaratory proceedings) should be decided. They may be taken by the Court together or separately in which case it may be logical to take the declaratory proceedings first.

3.1 It is not possible to estimate the costs of this legal action at this stage. In the worst case, if the case is lost, the claimants may be awarded costs so the defendants together could be required to meet both sides’ costs. The Menai Strait (East) Fishery Order has some funds and the mussel industry has agreed to meet any additional costs either directly or through a supplementary lease fee.

4.1 This legal action by Anglesey Council and Crown Estate is having wider implications. Pending the outcome of the case, Crown Estate have given only partial consent to the proposed Morecambe Bay Fishery Order in terms which allow Crown Estate to take their land out of the Fishery Order with 6 months’ notice. Crown Estate also appear to be withholding consent for the renewal of the Menai Strait (West) and Conwy Bay Orders and a similar partial consent only has been offered for another application for the Exe Estuary in Devon.

4.2 Defra’s legal opinion is that this partial consent is not a proper consent under the 1967 Act and they are in negotiation with Crown Estate to try and resolve the issue. However, continuing delay would mean that renewal of the Menai Strait (West) and Conwy Bay Orders before they expire in 2008 becomes more difficult.