Public Bodies Bill [HL]

Debate between Lord Cameron of Dillington and Lord Henley

Wednesday 23rd March 2011 Lords Chamber

[Lord Cameron of Dillington]

My Lords, I rise to oppose the amendment. The noble Baroness, Lady Quin, says that her amendment has some support in the agricultural industry and that the Agricultural Wages Board’s pronouncements are a good benchmark that the agricultural industry and others use. Both those statements are true; it is frightfully easy for farmers and others to give no thought to what they pay their workers and staff. They just follow the van, as it were. However, as I said in Committee, on our farm and on many others we do think about what we pay our workers and we pay more than what the Agricultural Wages Board sets down. As has been said by the noble Lord, Lord Newton, and the noble Baroness, Lady Byford, farm staff are in charge of really expensive equipment. They are very skilled; they have computers, sat-nav and all sorts of things. Sometimes this equipment costs £200,000 per piece and that is why we pay more—it is a really skilled job.

The noble Lord, Lord Whitty, said that supermarkets will drive down wages. I disagree—in the audit that supermarkets put farmers through, they are very keen on environmental behaviour and other things, but also on behaviour towards the workforce. They insist on very high standards of facilities and I very much doubt that they would want to force farmers to pay less, because, if it got out to the public, they would not be so popular. In my experience, anything that the supermarkets can do to impose extra costs on their producers, they seem to go along with; but that is perhaps another point and why I spoke in the adjudicator debate.

The noble Baroness, Lady Quin, is probably right that the industry needs a benchmark, but I do not believe that there is any need to make this a statutory benchmark. A very good alternative would be a voluntary get-together of the NFU and the unions which farmers who do not wish to settle their own wage agreements can use as a benchmark. I think that that kind of voluntary situation would deal with a lot of the worries that are coming from this side of the House.

[Lord Henley]

My Lords, allow me to intervene at this stage. I add to the remarks of the noble Baroness, Lady Quin, as to how much, as always, we miss my noble friend Lord Greaves, who is, unfortunately, unable to be here. I listened very carefully to what she said; I am still not persuaded and I will set out why. I will start with a very small apology. When she said that 2p was the difference from the minimum wage, I interrupted her from a sedentary position to say that it was 3p. She was correct—it was 2p. So, mea culpa, I was wrong. But I am not sure that 1p makes that much difference.

I think it worth saying at this point, in relation to the points made by the noble and learned Baroness, Lady Butler-Sloss, and the noble Lord, Lord Whitty, about the protection of vulnerable workers, that the Gangmasters Licensing Authority will continue to be there. Its job is to protect those vulnerable people and it does not appear in the Bill at all. It exists and there is no plan to change that. We intend to abolish the board and to remove outdated—my noble friend Lord Newton correctly described them as antique, worse than outdated—and unnecessary regulatory burdens from farm businesses so that they can focus their time on farming in order to develop a thriving, sustainable and prosperous industry.

I ask all noble Lords to listen very carefully to what the noble Lord, Lord Cameron of Dillington, had to say, particularly about the way in which farmers themselves make decisions about what they pay their employees. These employees are using large machinery which very often costs a great deal of money, and these employers are not going to employ people without the appropriate skills. They will pay them the appropriate amount of money if they want to look after that machinery. Similarly, I commend the noble Lord for what he said about supermarkets, including the deals and quality assurances that they want. These assurances often involve the environmental and employment practices of farms and so on.

As noble Lords will know, the board has itself been keen to modernise the agricultural wages legislation; for example, to allow farmers and workers to agree payment of annual salaries. This will be far easier to achieve outside the current restrictions of a statutory framework. Once abolished, these functions of the board will cease to exist and agricultural workers within England and Wales will be protected by the National Minimum Wage Act and by wider employment legislation, as are workers in all other sectors of the economy.

My noble friend Lady Byford asked how much it would save, and how much it had cost over the past 10 years. All I can say is that the cost of the board last year was some £200,000, but that is without taking into account the cost to the department. However, this is not purely about saving money. We think that the board has outlived its term and therefore ought to go. Importantly, one should also remember that workers will retain contractual rights that exist at the time when the board is abolished until such time as the contract is varied by agreement between the employer and the worker or until any contract comes to an end.

Agriculture: Farming

Debate between Lord Cameron of Dillington and Lord Henley

Tuesday 22nd March 2011 Lords Chamber

[Lord Henley]

My Lords, all I would say is “good for Gloucestershire”, but it is for Gloucester County Council to make that decision itself, not for central government.

[Lord Cameron of Dillington]

My Lords, on the innovation side of this Question, it is encouraging to note that the agricultural colleges seem to be attracting more students than in recent years. Can the Minister say how the Government are going to attract scientists into this area, which is very important? How are the Government going to give them the confidence to choose a career that will help us to solve one of the great problems of today, which is how we are going to feed 9.4 billion people in 30 to 40 years time?

[Lord Henley]

My Lords, I am not sure that I can solve that problem in a 20-word answer. Obviously we will find it difficult to feed another 3 billion people within the next 40 years. Technological and scientific changes will all play their part, as will the Government and the industry. However, at this stage it would be rash of me to give the noble Lord too lengthy an answer.