Public Bodies Bill [Lords]

Lord Beamish Excerpts

Tuesday 25th October 2011 Commons Chamber

[Mr Hurd]

This is a long list of amendments, but I hope we can deal with it quickly, as I sense that the mood of the House is in favour of moving on swiftly to what might well be more contentious issues. First however, it would be wrong of me not to join the Deputy Leader of the House in thanking the members of what was a very good Committee for their work and the spirit in which they undertook it.

This group of Government amendments relates to four aspects of the Bill, and to matters which I hope the House will agree are sensible and uncontentious. New clauses 3 and 4 and amendments 25 to 29 will provide powers to enable certain bodies carrying out public functions—specifically the Environment Agency, Natural England and Royal Botanic Gardens, Kew, as well as the Joint Nature Conservation Committee, the Marine Management Organisation and internal drainage boards—to share back-office functions with other bodies. The powers also apply to other bodies carrying out Welsh environmental functions.

New clauses 1 and 2 and amendments 12 and 16 to 20 will provide powers to enable the Environment Agency to delegate non-devolved functions to Welsh environmental bodies. They also incorporate provisions currently in clause 16 relating to delegation of Welsh environmental functions. Amendments 5 and 8 to 11 will extend the definition of “eligible persons” in clause 1(3) to include co-operative and community benefit societies and charitable incorporated organisations. Finally, amendments 6, 7, 13 to 15 and 21 to 24 are minor and technical drafting amendments.

Turning first—and briefly—to the issue of shared services, there is a move across government to reduce the cost of back-office functions such as human resources, IT and payment processing. Freeing up bodies to share back-office services is an important way of rationalising and delivering economies of scale. The Department for Environment, Food and Rural Affairs has some large non-departmental public bodies, such as the Environment Agency, which could serve as centres for delivering back-office services to other bodies in its network. However, these bodies do not currently have clear legal powers to be able to provide such services. That is because providing these back-office services to others is not always incidental or related to their main or primary purpose. The aim of these amendments is to provide a clear power so that, for example, the Environment Agency could provide back-office services such as accounting services to a body such as Royal Botanic Gardens, Kew, or operate contracts for vehicles for the DEFRA network. That would be beneficial in efficiency and economic terms, and there are likely to be many more such examples as sharing of services becomes more common.

[Mr Kevan Jones (North Durham) (Lab)]

I understand why these amendments have been tabled, but it is not a God-given right that the organisations in question will win these contracts. Surely some of the contracts will be sufficiently large to have to be put out under the Official Journal of the European Union—or OJEU—notices.

[Mr Hurd]

That is a separate issue. We are trying to make the powers clearer so that more circumstances arise whereby such bodies can share services and seek efficiencies. These amendments will therefore enable the Environment Agency—

[Mr Jones]

The hon. Gentleman did not answer my question. The fact of the matter is that these measures will give the powers he describes, but they do not necessarily mean that the organisations in question will be able to circumvent European competition law in respect of contracts they put out to tender.

[Mr Hurd]

The hon. Gentleman is right to say that everything will be subject to appropriate procurement regulations, but the purpose of these amendments is to make it easier for such bodies to share services.

These amendments will therefore enable the Environment Agency, Natural England, the Joint Nature Conservation Committee, the Marine Management Organisation and internal drainage boards, which are bodies performing public functions, to provide back-office functions to other bodies carrying out public functions. The Bill already provides a similar power for Welsh environmental bodies, so this step will provide parity for these English bodies.

The amendments also carry forward arrangements in clause 16 whereby forestry commissioners may share services with Welsh environmental bodies carrying out functions in Wales. This power does not extend to the Forestry Commission making arrangements with non-Welsh bodies. As this is an enabling power, it will be used only where a body listed wished to use it, and where it would be financially beneficial to share back-office services. Also, it could not be exercised without the consent of the relevant Ministers. This power is in many respects similar to the provision in the Flood and Water Management Act 2010 enabling internal drainage boards to agree that one should provide back-office services to another. In debate, this was warmly welcomed by all parties. As in the case of these amendments, the express purpose was to make the delivery of administrative functions more effective and cheaper. I hope that right hon. and hon. Members will agree that, with public funding under severe constraints, it is sensible to ensure that bodies are able to share services, thus leading to increased efficiency and potential savings in the delivery of back-office functions.

--- Later in debate ---

[Andrew George]

I was going to remind the House that the proposal to abolish the Agricultural Wages Board was in the Conservative party manifesto, not in the Liberal Democrat manifesto, and the proposal to abolish the Agricultural Wages Board was not in the coalition agreement. The issue should be subject to discussions between the two parties, as well as parliamentary debate and scrutiny.

It has always been my view that one of the great benefits of a coalition is that it puts Parliament on the front foot, whether the Opposition like it or not, and it strengthens Parliament. It means that issues such as this, which cannot be resolved between the two parties through whatever usual channels are now established within the coalition, are subject to quite proper parliamentary scrutiny, and Back-Bench Members of the two parties in the coalition are able to hold those on the coalition Front Bench to account.

[Mr Kevan Jones]

Is it not the case that the hon. Gentleman and the Liberal Democrats have not been consulted about the abolition of the Agricultural Wages Board, and that his new clause is an attempt to save face with some of his constituents who will be affected by that? He can give the impression that he has fought for them, when later tonight the Government will abolish the Agricultural Wages Board anyway.

--- Later in debate ---

[Mr Thomas]

I rise to speak to amendment 32, which is in my name and that of my right hon. and hon. Friends, and to urge the Government to keep the Agricultural Wages Board. Let me say in passing that it is a sad indictment of the modern Conservative party that it can fill its Benches for a debate on Europe, and yet a debate of such considerable significance to the future of the countryside is better attended by Labour Members.

The hon. Member for St Ives (Andrew George) has done the House a service by raising the issues in the way that he did. His new clause 7, on the Agricultural Wages Board, is a positive and constructive one, as are his other proposals, but it is not as clear-cut or positive as the proposal in amendment 32 in my name and that of my right hon. and hon. Friends. However, if he decides that he does not receive a good enough response from the Minister, which I fear will be the outcome, I shall urge my right hon. and hon. Friends to support his new clause. Nevertheless, we hope that when we press our amendment, he will join us, given its greater benefit.

The AWB helps to ensure fair wages, so it will come as no surprise that the Conservative party wants it abolished. It is more surprising, however, that Liberal Democrat Ministers are signing up to the proposal. Like many others, rural workers will find it difficult to believe that this proposal is proof of the Deputy Prime Minister’s claim that he is a brake on the Conservative party. The AWB helps to ensure that people working in the countryside, be they apprentices, farm supervisors or small farmers, get a fair deal. Frankly, it is difficult to see how, without the AWB, farm workers will not inevitably be worse off.

[Mr Kevan Jones]

Does my hon. Friend think it rather ironic that although the Conservative party claims to be the protector of rural communities, only one Conservative Back Bencher and one Conservative Parliamentary Private Secretary are attending this debate? Is it not clear that that party protects certain parts of the countryside, but not others?

[Mr Thomas]

My hon. Friend makes a good point, emphasising the one that I made about how it is surprising that so few Conservative Members are present.

Even Margaret Thatcher decided, in the end, that the AWB was too important to axe. Perhaps it would help the House if I gave two examples of the concerns about abolition that have been put to me. As my hon. Friend the Member for Hemsworth (Jon Trickett) said, had witnesses been invited to give their views on the Bill before the Committee stage, other Members might have had the opportunity to have direct conversations such as those I have had with the following two people. Richard Neville, from near Haywards Heath in Sussex, is on grade 4 of the AWB’s pay scale, reflecting his additional skills and experience—he has a craftsman certificate and a national certificate in agriculture. If the AWB were abolished, however, there would be no guaranteed protection of the extra wages reflecting his skills.

Richard Neville is particularly concerned about what would happen to overtime pay, which is currently paid at time and a half. He has to work one weekend in six and, obviously, considerably longer hours in summer over the harvest period. If he and those like him move jobs, what guarantee can the Minister offer that his new employer would offer him the same level of overtime pay? I would be happy to take an intervention from him, if he wants to get to his feet.

--- Later in debate ---

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

I rise to speak to amendments 32 and 39, and I do so as a rural trade unionist and a rural Labour MP. The AWB is not a quango; it involves the Secretary of State, independents, workers in the industry and employers meeting to negotiate pay, and terms and conditions. Its destruction undoes the rightful and valuable recognition of skilled labour in the food manufacturing sector. Its destruction only creates a disincentive to young workers to enter the industry by reducing skilled labour to the level of the national minimum wage. That is a general wage for general work and it should not be used as a general means for conducting pay negotiations across a whole industry.

The scrapping of the AWB will have significant consequences for the rent relationships of workers at their place of work. Furthermore, it will undermine overtime pay arrangements, as the national minimum wage carries no overtime rates. Without the AWB, agricultural workers will have no mechanism to pursue collective bargaining to improve their pay and terms and conditions, and thus pursue their aspirations and improve their lot, not only for themselves, but for their families and their communities—they can only just about afford to live in those. If the AWB is scrapped, they will no longer be able to pursue those things.

The destruction of the AWB is only one part of this Government’s attack on the countryside. If it were not for the national minimum wage, the AWB’s removal would definitely take industrial relations in the fields of our nation back to an appalling condition not seen since the time of the Tolpuddle martyrs. For many on the Government Benches, “The Hired Man” is not merely a fictional account based on our social history of more than 100 years ago, but an economic vision for the future, exploiting the worker in the field. The Conservatives and Liberal Democrats cannot claim to be the parties of rural communities when the only part of rural society they want to talk to is the affluent one. The AWB provides a proper and efficient means for workers and employers to resolve human resources and industrial matters quickly. Its destruction only disfranchises workers—they will not have the right to negotiate a day’s pay—and complicates matters of negotiation. The move is divisive and will undoubtedly divide rural communities between employer and employee.

The destruction of the AWB has a cynical kernel at its heart. It implies that because of record levels of unemployment employers can drive down terms, conditions and pay on the assumption that people will simply be grateful for a job. In that sense, it is intended precisely to let the rural rich exploit the very rural working class who provide the food we eat and feed our families with.

[Mr Kevan Jones]

I am getting a little concerned for the health of the hon. Member for St Ives (Andrew George) because when he speaks as he did tonight and as he did in the health debate, he seems to be in a certain amount of pain—perhaps the fence he has been sitting on in all these debates is causing pain to his nether regions. Clearly he is trying tonight to give the impression to his rural constituents that he is supporting them, while giving succour to the abolition of the AWB. He has to make a clear decision about whether or not he supports this move. His new clauses are seriously flawed, as was shown by some of his arguments. I agree with my hon. Friend the Member for Ogmore (Huw Irranca-Davies) that the hon. Gentleman made a better argument for the AWB’s retention than he did for his new clauses.

I have a problem with the new clauses. The hon. Gentleman said that he had had discussions with the Low Pay Commission, but subsection (1) of new clause 7 would require some form of legislation to amend the LPC’s remit. This is not simply a matter of transferring functions to the LPC, because we would be changing its role and nature greatly. Subsection (2) simply bemuses me. It states:

“The Low Pay Commission shall establish an advisory board of employer and employee representatives from agricultural and related industries to make recommendations to the commission in fulfilment of its duties under the Agricultural Wages Act 1948.”

That sounds very much to me like a description of the AWB. Why do we need to move things to the LPC, given that subsection (2) basically retains the function? If there is a need for the AWB to protect rural workers, we should leave it as it is.

The hon. Gentleman said that he wanted to take this approach to save money. I believe that the AWB costs £272,000 a year, which is less than half what the new special advisers appointed by the Deputy Prime Minister cost—we will keep an eye on the Tory Ministers throughout the coalition Government. So we are paying a small price to protect rural workers and rural communities. If the hon. Gentleman really wants to support rural workers in his constituency and the rest of the country, he should support our amendments 32 and 39. They make clear the need for, and importance of, the AWB, not only for workers, but for rural economies.

[David Wright]

I am delighted that my hon. Friend has talked about agricultural workers, because this is not solely an urban/rural issue. Many people who live in towns such as Telford, which I represent, go out of the town to work in rural areas. So this is not just about sustaining the rural economy; it is also about urban areas.

[Mr Jones]

My hon. Friend makes a very good point; places such as Telford are surrounded by large rural areas. It is ironic that Conservative Members keep telling us that they are the champions, supporters and voice of the countryside, given that a second Conservative Member has only just arrived for this very important debate. That tells me loud and clear that they will protect certain parts of rural communities but not others—the most vulnerable. May I say, as a former trade union official, that it would be the first time in history if something like the abolition of the AWB led to an increase in the wages of rural workers? It is therefore vital that the AWB is retained.

If the hon. Member for St Ives wants to prove to his constituents that he really cares about their needs, all he needs to do is vote for amendments 32 and 39 and encourage the rest of his party to do so. I assure him that at the next general election the Labour party in his constituency and in other Liberal Democrat rural constituencies will remind constituents of exactly what the Liberal Democrats did. As with a lot of things that this coalition is doing to attack working people in this country, this could not be done without the support of the Liberal Democrats.

[Jonathan Ashworth (Leicester South) (Lab)]

I will speak briefly, as I am conscious of the comments of my right hon. Friend the Member for Cardiff South and Penarth (Alun Michael). I do not represent a rural constituency, but a city-centre constituency which, as the House of Commons Library tells me, has approximately zero agricultural workers living in it. It seems to me that this is about fairness. As many speakers have pointed out, the Agricultural Wages Board covers not only workers’ wages but grading arrangements, skills and qualifications, overtime, training costs, apprenticeships, allowances and grants, holidays, sick pay, leave and housing. It is inconceivable that, if the board were abolished, there would not be downward pressure on the terms, wages and conditions of agricultural workers.

--- Later in debate ---

[Mr Paice]

It is not an insult. If it is an insult, it is an insult to Opposition Members who have been using that sort of analogy to show the relationship between modern-day farmers and their work force.

[Mr Kevan Jones]

I do not think that I was doing that, but is the Minister really telling the House that, if the Agricultural Wages Board is abolished, farmers—I understand that he was a farmer before he was a Minister—will drive up wages, rather than driving them down?

[Mr Paice]

The market is what will affect wages. That is the reality of how wages are set in every other—[Interruption.] The hon. Member for Harrow West and the hon. Gentleman told us everything that happened after the abolition of the other wages councils and boards. I would take much more seriously all the remarks that we have heard from Opposition Members if they had recreated a single wages council or board in their 13 years in office. They did not do that, and that is why—[Interruption.] The hon. Gentleman says, “The minimum wage.” Yes, we support the minimum wage, and we have got it now.

[Mr Jones]

The Minister argues that wages should be left to the market. Is he therefore suggesting that there is no need for the Low Pay Commission and the minimum wage? That is the ultimate conclusion of his logic.

[Mr Paice]

The hon. Gentleman knows full well that that is not what I said. This group of amendments deals with not only the Agricultural Wages Board, but the Commission for Rural Communities.

--- Later in debate ---

[Mr Paice]

The hon. Gentleman does not seem to grasp that, if someone decides to change their job in the future, they will obviously want to take into account what terms and conditions the alternative is offering them. I will not dispute his figures, because they are the ones laid down at the moment, but anyone changing jobs will want to consider the options available to them.

[Mr Kevan Jones]

The Minister has just referred to agricultural wages being gold-plated. What does he consider to be gold-plated about the wages paid to agricultural workers?

[Mr Paice]

I was referring to the wages order, not the wages themselves. The Agricultural Wages Board structure is gold-plated. As other hon. Members have mentioned, the reality is that a lot of agricultural wages order measures go way beyond what is laid down in statute for any other walk of life or sector of employment.

--- Later in debate ---

[Andrew Percy]

My right hon. Friend makes a point that I was coming to. We have not identified where the savings could be in this system. Many would contend that the costs of adjourned and delayed hearings and of expensive judicial reviews could be taken out of the system by the chief coroner. My concern is that far too much emphasis has been placed on costs.

I said that I was going to talk about three particular issues. The first is independent leadership, which I think we all agree lies at the heart of the chief coroner’s appointment and is the reason for his status as linchpin of the Coroners and Justice Act 2009. Parliament accepted back then that if real reform was to be achieved, there must be an independent judicial leader with responsibility for spearheading that reform. Independence is key.

[Mr Kevan Jones]

I was a member of the Committee that considered the Coroners and Justice Bill, and I remember that it was supported by not only the Government of the day, but the Front Bench of the hon. Gentleman’s party and the Liberal Democrats. One of the key points made by the Liberal Democrat Front-Bench spokesman was that the person concerned would be independent of Government.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Justice (Mr Jonathan Djanogly)]

I thank my hon. Friend the Member for Brigg and Goole (Andrew Percy) for initiating this important debate and I thank the hon. Member for Barnsley East (Michael Dugher) for his contribution. I thank also stakeholders, particularly the noble Baroness Finlay, the Royal British Legion, INQUEST and Cardiac Risk in the Young for their passion for and commitment to reform. I have met them all on numerous occasions and our discussions have helped to shape the Government’s thinking on our proposals for reform of the coroner system. I have to say that our discussions have not been just of the yes/no variety described by the hon. Gentleman.

[Mr Kevan Jones]

Does the Minister agree with the Under-Secretary of State for Justice, the hon. Member for Reigate (Mr Blunt), who has just said that what the Royal British Legion said was a disgrace?

[Mr Djanogly]

We are all aware of the importance of the issue and the outcome of this debate has the potential to affect thousands of people who come into contact with the coroner system, often in exceptionally difficult circumstances. Honouring the memory of those who give their lives for their country is very close to the heart of this Government, as it is to all hon. Members I am sure, but I point out to my hon. Friend the Member for Brigg and Goole that our reforms go further, as they concern all coroners, not just military inquests.

Hon. Members will be well aware of the Government’s position on this. Urgent reform is needed to drive up standards across the piece and to learn lessons from the inquest process. This must be achieved through consistent training for coroners, by tackling the cause of delays in the inquest process, by setting a framework of standards that the bereaved have the right to expect from the coroner system and by removing barriers to hearing inquests at the most convenient location for bereaved families.