Public Bodies Bill [HL]

Debate between Lord Corbett of Castle Vale and Lord Clark of Windermere

Wednesday 1st December 2010 Lords Chamber

[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.

[Lord Corbett of Castle Vale]

My Lords, I apologise for not being here at the start of the debate on these amendments, to which my name is attached. I will not detain the Committee for long. I declare an interest in that 10 of the happiest years of my life were spent working for Farmers Weekly, during which time I gained a lot of experience of the work of the Agricultural Wages Board. I was provoked to intervene in this debate by the remarks of the noble Earl, Lord Caithness. There is a profound misunderstanding that the national minimum wage can take care of the proper pay rates for agricultural workers. As my noble friend Lord Clark of Windermere has said, there are six grades of pay. As he pointed out, if it is to be left to those on the five grades above the minimum rate to negotiate with the farmer who employs them, it is not beyond the wit of man to imagine that some farm workers will face pay cuts. This must be the logic of it. The noble Earl shakes his head. If I have this wrong, I will gladly sit down and he can put me right on it, but the minimum wage does what it says on the tin: it sets a minimum wage, but takes no account of the grades above that. As my noble friend Lord Clark of Windermere has also said, those grades are there for a purpose. They are accepted by the employers, farmers, who recognise that increased productivity and the higher levels of skills that are needed must be rewarded, which means that there must be different grades for different levels of skills.

Most farm workers—they are a dwindling number—work in groups of two, three and four, working closely with their employer, the farmer. It is only when you get into the poultry packing plants and the vegetable processing plants that you can measure workforces in the dozens and the hundreds, but that is a very different atmosphere in which to negotiate. Are the Government really suggesting that a father and his two sons, who make up the workforce on a mixed farm, will make an appointment with their employer, the farmer, to talk about rates of pay? This is not the real world because there is no equality there. In my submission, the Agricultural Wages Board was put in place in the interests of farmers and the industry as much as in the interests of farm workers because it levelled the playing field. The industry got great value out of the Agricultural Wages Board. The other day I was astounded to hear a former president of the National Famers’ Union, with whom I spent many a happy hour in the old days when I worked for Farmers Weekly, rely on exactly the same argument. He said, “No, Robin, it does not matter because the national minimum wage is there”. I take it that the official view of the National Farmers’ Union is that it now wants to see the destruction of the Agricultural Wages Board. I say simply that it will live to regret that because it could result in immense chaos, let alone unfairness, for the industry. A very heavy price will be paid if the board is abolished.

The last report of the Agricultural Wages Board that I could find in the Library was for 2007-08. It makes the point that the board does not deal just with wages. There have been demands from the workers’ side for an all-industry pension scheme. How will that be dealt with now? What are the unions supposed to do now? To whom do they write? Will they write to the president of the National Farmers’ Union of England, the president of the National Farmers’ Union of Wales and the Farmers’ Union of Wales and the NFU in Scotland? Is this the way that they are meant to proceed? Given the row about tithe cottages, who decides the value of the accommodation provided under the contract of employment to employees who live on the farm as part of their job? The national minimum wage will not take care of that. Who will take care of that? Will this be negotiated farm by farm across the length and breadth of England and Wales? This is a ridiculous way to engage in human relations and will cause immense resentment. I do not believe farmers are bad employers but they are not overgenerous with their money. As the last report of the Agricultural Wages Board notes, this is traditionally a low-pay industry, which is why the Agricultural Wages Board was established.