Public Bodies Bill [HL]

Debate between Earl of Caithness and Lord Clark of Windermere

Wednesday 1st December 2010 Lords Chamber

[The Earl of Caithness]

My Lords, I agree with the noble Lord, Lord Whitty, in so far as the Agricultural Wages Board has done a good job in the past, when it was badly needed. However, I cannot follow him in the rest of his arguments, except possibly his last statement, when he said that a legal minimum wage must be retained. Well, it will be retained, because there is the national minimum wage as the base floor. That solves the noble Lord’s last point.

Besides the national minimum wage, there are the working time directives and regulations that have emanated from and will continue to come out of Europe, as we are increasingly bound in our employment laws by Europe. I firmly argue that the days of the Agricultural Wages Board are otiose. It can all but be done by the farmers with the current legislation in place, which gives the workers the security that they certainly did not have when this came in 1948.

Nobody has really mentioned Amendment 21 on the agricultural wages committees. Nobody has sought to defend those—not even the noble Lord, Lord Whitty. It is worth reminding the Committee of the hard work that these committees do. The only thing left to the agricultural wages committee is to appoint the members of the ADHACs. As we discussed in the last amendment, there are only eight applications for ADHACs, while there are 17 ADHACs. So a lot of people are wasting a huge amount of time and money. Perhaps it is the best thing that we get rid of them soon.

[Lord Clark of Windermere]

I support the amendment by the noble Lord, Lord Greaves, and I do so in the same tone and with the same approach. The real point of these amendments at this stage is to try to ascertain what the Government’s real intentions are. What do they have in mind for the agricultural wages in the years ahead? This House has a high reputation because it is comprised of people who represent, often, the top of their professions—eminent people. As I look around and look across the House, I see so many people who know a great deal about this subject from the other side of the fence from the one that I occupy. I see a number of landowners from my native county of Cumbria. My only locus in speaking for this is that I started my working life under the Agricultural Wages Board and still remember when we used to glean The Westmorland Gazette—I think it was in October—for the advert that would tell us what our wage would be for the following year.

That was 50 years ago. I accept that times have moved on. However, as we heard from my noble friends Lady Prosser and Lord Whitty, there may still be a case for that certainty. My noble friend Lady Prosser made the point very clearly and graphically on the relationship between the small teams—often a farmer and his employee—that work on so many farms. It is difficult because they do work for a team; it is embarrassing and awkward for both sides. That has been the substance that has kept the Agricultural Wages Board going for the 62 years that it has been in existence. There may be a case for that certainty to continue.

The noble Lord, Lord Greaves, quite rightly made the point that 154,000 individuals are covered by the Agricultural Wages Board. However, it is much more significant than that, because the Agricultural Wages Board provides the yardstick and benchmark for many other workers in rural areas. While they might not be encompassed by the Agricultural Wages Board, they are influenced, and their wages determined indirectly by it. Again, we are talking about a great many people.

In the spirit of the noble Lord, Lord Greaves, I must say that one thing that has disappointed me most about the Agricultural Wages Board in committee issues has been the lack of consultation. I was amazed to read a letter from Mr Jim Paice, who I know well and respect a great deal. He is a thoughtful and considerate man. In a letter dated 8 September 2010, which was circulated to the members of the Cumbria, Northumbria and Tyne and Wear AWC, he responds to comments about a lack of consultation. The letter states that,

“we do not consider it would be productive to have a consultation on the proposals, although individuals will be welcome to continue to submit their views to Defra”.

That is not written in the same spirit in which Ministers have advanced their case in this House. I ask them to think a little more about this. With more consultation we are more likely to get a better result and a better conclusion. I hope that that negativity will disappear. As I say, I am very surprised that Mr Jim Paice wrote such a letter.

I stress the other main point that has been raised—that the Government argue that there is no longer a need for an Agricultural Wages Board as agricultural workers are protected by the national minimum wage. Of course they are; every worker in this country should be protected by the national minimum wage. However, as has been said repeatedly, that applies only to the basic agricultural wage, which currently is one penny an hour greater than the national minimum wage, so the amount is not great. However, modern agriculture is a highly technical industry involving a great deal of skill and often a great deal of expertise. That is recognised by the agricultural industry and is certainly recognised by the Agricultural Wages Board. While it is true that the national minimum wage would protect a worker on the basic rate, what about the five higher grades? What protection would people on those grades have? Mr Jim Paice states in the letter that,

“on the abolition of AWB, the six different grades of worker will not be retained, as agricultural workers will be covered by the national minimum wage rate, as for all other workers. It will be for individual workers and employers to agree different rates while taking into account experience and qualifications alongside the needs of the business and individual circumstances. Agricultural workers will continue to be protected in the absence of the AWB by bringing them into the framework of the National Minimum Wage”.

Again, I am worried by the tone of the letter. If I am right in my submission that the agricultural industry is a modern, highly technical industry, we need to encourage and reward skills. However, I submit that if we leave this matter to individual negotiations, bearing in mind the points raised by my noble friend Lady Prosser, there will be an erosion of skills in the agricultural industry.

I will not go on for much longer but I am probing the Minister to try to ascertain how the Government foresee the future for agricultural workers and related workers in forestry and other land-based industries. There may be a case for rationalisation but I seek reassurance that the Government have thought this through.