Oral Answers to Questions

Helen Whately Excerpts

Thursday 20th April 2017 Commons Chamber

[Dr Coffey]

I entirely agree with my hon. Friend: robust enforcement will be important to ensure that the rules are effective. She will recognise that the police and border agencies do an excellent job of enforcing the current rules. We will work with them on how best to enforce the new measures, but she will also recognise that our strategic approach to tackling the illegal wildlife trade is about enforcement, strengthening criminal justice and tackling demand, so that together we can help to solve the poaching crisis.

[Helen Whately (Faversham and Mid Kent) (Con)]

11. What recent discussions she has had with fruit and vegetable growers on the seasonal agricultural workforce.

[The Secretary of State for Environment, Food and Rural Affairs (Andrea Leadsom)]

I very much enjoyed my visit to my hon. Friend’s constituency last week. It was a great pleasure to meet some of her growers, including those at Oakdene farm, to discuss seasonal labour. I am very aware of the horticultural sector’s concerns about labour supply issues. The Government plan to commission advice from the Migration Advisory Committee and to consult with businesses later this year.

[Mr Speaker]

The Secretary of State obviously had an agreeable excursion: I am very interested to hear about it.

[Helen Whately]

I thank my right hon. Friend for coming to Kent to visit one of my local fruit farms and listening to the growers who assembled there, especially as it was during the Easter recess. Can she give me an update on the discussions that she has had with the Home Office about introducing the much-needed seasonal agricultural permit scheme?

[Andrea Leadsom]

I visited not only my hon. Friend’s constituency, but that of my hon. Friend the Member for Maidstone and The Weald (Mrs Grant), so I had a lovely day in the county I grew up in. My hon. Friend the Member for Faversham and Mid Kent (Helen Whately) is right that this is an important issue. The Government have assessed the need for a pilot seasonal workers scheme, and have decided that the evidence shows that one is not needed. As I have said, the Migration Advisory Committee and a consultation with businesses later this year will seek to determine exactly what the need is, and the Government are committed to making a huge success of the food and farming sector as we leave the EU.

Oral Answers to Questions

Helen Whately Excerpts

Thursday 2nd March 2017 Commons Chamber

[George Eustice]

I have regular meetings with NFU Scotland. Earlier this year, we had a meeting and engaged on a wide range of issues pertinent to future agriculture policy in Scotland, including labour.

[Helen Whately (Faversham and Mid Kent) (Con)]

4. What recent discussions she has had with Cabinet colleagues on the employment of seasonal agricultural workers.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

There is a lot of interest in seasonal agricultural labour at the moment. DEFRA Ministers engage regularly with ministerial colleagues at the Home Office and other Departments to discuss the issue of migrant labour in the agriculture sector after we leave the EU. We are aware that the availability of labour is a concern for some sectors of the industry. However, leaving the EU and establishing controlled migration does not mean closing off all immigration; it simply means that we will be able to identify where we have needs and put in place suitable arrangements.

[Helen Whately]

Growers in my constituency are worried about fruit going unpicked not only after we leave the EU, but this year. Can my hon. Friend assure me that he will continue to press the Home Office on this issue, and not only on seasonal agricultural workers after we leave the EU, but between now and then?

Oral Answers to Questions

Helen Whately Excerpts

Thursday 17th December 2015 Commons Chamber

[Helen Whately (Faversham and Mid Kent) (Con)]

Will my right hon. Friend join me in welcoming Taittinger and Hatch Mansfield’s new venture to produce sparkling wine in my constituency, and will she take steps to ensure that policy across Government supports the growth of the English sparkling wine industry?

[Elizabeth Truss]

It is no surprise that even the French want to get in on the action in the English sparkling wine industry. Using DEFRA’s data, we have identified an additional 75,000 acres across the country that are suitable for producing sparkling wine. That is the equivalent of the champagne region, so I am sure that the industry will go from strength to strength.

Oral Answers to Questions

Helen Whately Excerpts

Thursday 5th November 2015 Commons Chamber

[George Eustice]

We have worked hard with the European Commission to get a support payment. The Rural Payments Agency is processing that now—for Scotland, England and all other parts of the UK. We aim to get that out in the first week of December. That will offer some support to dairy farmers with their cash-flow problems. In addition, we are working hard in England to ensure that we can get the basic payment scheme payments out to farmers on time.

[Helen Whately (Faversham and Mid Kent) (Con)]

I thank my hon. Friend the Minister for his response to last week’s debate on the impact of the living wage on fruit farmers. As he knows, fruit farmers in my constituency support the living wage, but they are worried that supermarkets will not pay them a price that recognises the increased cost of production. What steps is he taking to support the fruit farming industry on this issue?

[George Eustice]

My hon. Friend is right that we had a good debate on this issue last week. As a former strawberry farmer, I can say that supermarkets pay a premium for English fruit—the quality is superior and we have better varieties. It commands a premium over both Dutch and Spanish fruit.

Living Wage (Farmers)

Helen Whately Excerpts

Wednesday 28th October 2015 Westminster Hall

[Gordon Henderson]

Yes, and I will come on to discuss how we might resolve that later in my speech.

The second thing I want to emphasise is that, like me, farmers in my constituency and beyond support the principle of a living wage. Nevertheless, they are concerned that, because of a number of challenges unique to their industry, they will be forced out of business, not by the national living wage directly, but because they will be unable to compete with cheap imports from countries where farmers will not have to pay their workers as much as their British counterparts.

[Helen Whately (Faversham and Mid Kent) (Con)]

I thank my hon. Friend from Kent for calling for this debate and setting out the case very well. Fruit farmers in my constituency are also worried about the effect of the living wage, although they also very much support it and often pay experienced workers well above it. They are worried that it will increase their labour costs by perhaps 11%, when they make margins of only around 1% or 2%. I feel strongly on their behalf that the Government must look at mitigating the impact if we want to maintain a successful British fruit industry.

[Gordon Henderson]

I am pleased that my hon. Friend and fellow Kent MP has raised that important issue, because I will be dealing with it later in my speech.

Another problem faced by farmers is foreign competition, which has made things worse. Their main customers are supermarket chains that are notoriously hard-nosed when it comes to price negotiations: they always look for the cheapest suppliers, whether or not they come from this country. It is inconceivable that supermarkets will, without protest, allow farmers to pass on the increased labour costs they will be forced to pay. The supermarkets will simply buy cheaper, imported produce.

Many of the workers employed by farmers are seasonal. Traditionally they were students who, because they were generally under 25, would not be covered by the national living wage, but the supply of home-grown student workers dried up and was replaced by foreign workers, many of whom came to this country under the seasonal agricultural workers scheme. Sadly, two years ago the Government scrapped SAWS, a decision that will exacerbate the problems faced by farmers if they are forced to pay the living wage.

Some farmers will look into introducing even greater mechanisation in order to reduce their labour costs. There is little doubt that such a move will inevitably lead to fewer staff, so it is highly likely that an unintended consequence of the national living wage will be a rise in unemployment among farm workers. Of course, some farming sectors do not lend themselves to mechanisation, and horticulturists such as soft, top and stone-fruit farmers are in that category, which is why they face the biggest challenges. As I said earlier, some of those challenges are unique to farmers. For instance, they have to deal with the vagaries of the supermarkets, which, in addition to demanding unsustainably low prices, have been known to reject a delivery of perfectly good crops as imperfect, simply because they still had some of that crop in stock from a previous delivery.

Farmers have to contend with unpredictable weather, which can decimate their crops. They also have to contend with the additional costs associated with the sale and delivery of highly perishable products and, as I have pointed out, competition from foreign imports from EU countries such as France that are becoming even cheaper because of the fall in value of the euro against sterling.

Farmers are not like widget manufacturers: they cannot just buy in components to produce goods; they have to plant crops, nurture them and eventually harvest them. Top-fruit farmers face a particular problem, because when they plant trees they are unlikely to have a saleable crop for three or four years. When considering whether to invest in new trees, a farmer needs to be confident that he or she will be able to sell the eventual crop of fruit profitably. Such farmers believe that the national living wage will make that very problematic. There are farmers in my constituency who planted fruit trees last year based on the understandable assumption that, over the next few years, their wage costs would be in line with the trend in the minimum wage seen over recent years. Imposing the new living wage on those farmers, without consultation or warning, will put their financial stability in jeopardy unless mitigation is forthcoming from the Government.

I accept that it was announced in the summer Budget that the cost to employers of paying the living wage would be offset by changes to corporation tax rates. The problem is that in the horticultural industry a reduction in corporation tax will not have the beneficial impact that the Government suppose, because 95% of producers are sole traders or partnerships, for whom corporation tax is not payable. Similarly, although the increase in the employment allowance will reduce employers’ national insurance contributions, that will have little effect on horticultural businesses because, typically, they employ relatively large numbers of workers, and the change to the employment allowance applies only to a business, not to the number of workers employed.

Although horticultural businesses employ large numbers of workers, they are, in the main, low-turnover small and medium-sized outfits.

Oral Answers to Questions

Helen Whately Excerpts

Thursday 10th September 2015 Commons Chamber

[Elizabeth Truss]

The hon. Lady is absolutely right that Northern Ireland has a great record in exporting. On my last visit to China, I had Northern Irish representatives with me to promote its products. There is more that we can do, particularly on dairy, to get products into the Chinese market and across the world.

[Helen Whately (Faversham and Mid Kent) (Con)]

Fruit farmers in mid-Kent support the living wage, but they expect it to increase production costs. Has my right hon. Friend had any discussions with supermarkets about their willingness to pay more for British fruit or talked to colleagues at the Treasury about the impact of the living wage on fruit farmers?

[Elizabeth Truss]

The farming Minister, my hon. Friend the Member for Camborne and Redruth (George Eustice), has discussed that matter with the industry. Of course, to help firms with the increased cost, the employment allowance will increase from £2,000 to £3,000 in April 2016, which means that a farmer will be able to employ four people full time on the national living wage and pay no national insurance contributions.