Public Bodies Bill [Lords]

Lord Field of Birkenhead Excerpts

Tuesday 25th October 2011 Commons Chamber

[Andrew George]

I did not answer the hon. Member for Harrow West (Mr Thomas), the Opposition spokesman, who asked whether the new clause is intended to be probing or whether I intend to press it to a vote. This is clearly a matter of judgment. My intention is to advance the proposal as a solution that is available to the Government. The Bill is, after all, enabling legislation; it does not actually abolish the Agricultural Wages Board. At some point in the future there will be a framework within which the Government can bring forward a proposal, and we hope that they will genuinely consult upon it and that we will have an opportunity to debate the matter before taking it forward. My intention is to probe the matter. If I receive a deeply unsatisfactory response indicating that the Government have no intention of even considering the retention of any of the protections, or that they intend to drive on as quickly as possible with the abolition of not only the board but the regulations themselves, I will certainly consider pushing the new clause to a vote. I hope that the Minister is listening on that.

[Mr Frank Field (Birkenhead) (Lab)]

The last time the Liberals were in power they established the protection for agricultural workers. It will be a deep and wicked irony if, now that they are back in power, even if sharing it, they played any part in the abolition of that minimum protection. The hon. Gentleman says that his new clause is intended to be probing, but presumably he has probed his own Government. If there is any doubt whatever, I make a plea that he either presses the new clause or supports the Opposition’s amendment so that agricultural workers have that minimum protection.

[Andrew George]

I am grateful to the right hon. Gentleman for his intervention, which follows the theme of others in doubting the sincerity of my purpose, which is obviously a matter for him to judge—[Interruption.] Okay, perhaps he does not doubt the sincerity of my intention, but others sitting around him certainly have. I have a genuine intention to retain the protections, but I am not precious about the board. That is the bottom line for me, as set out in the new clause. That is what I am seeking to achieve, because I believe that agricultural workers will be vulnerable if they lose their protections, that they are very isolated and that they have no muscle in the negotiating framework to enhance and improve appropriately the salary scales and terms and conditions to which I believe they are entitled.

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[Andrew George]

I am grateful to the hon. Gentleman for making that important point. We are part of a United Kingdom and, in spite of some hon. Members, a European Union in which the work force can migrate. The protections that an Agricultural Wages Board provides, which may be lost from England and Wales—and, I emphasise, from Cornwall—will not be lost in Scotland and Northern Ireland as a result of the Bill. Those who support the Bill’s measures on behalf of the agricultural sector argue that agricultural workers are highly prized. If the Agricultural Wages Board is withdrawn, there is a risk, certainly in the north of England, that agricultural workers will migrate north of the border, where their pay and conditions might be rather better. That will happen over time. The Minister looks at me in a rather quizzical and critical manner. Although it is true that the pay grades and terms and conditions of agricultural workers will not immediately be withdrawn as a result of the abolition of the board, for new entrants to agriculture the only protection similar to the regulations that will be jettisoned will be the application of the national minimum wage.

[Mr Frank Field]

Like the hon. Gentleman, I have been looking at the Minister’s face, and a quizzical look did appear on it when he talked about the importance of the minimum rates to agricultural workers. May I invite him to spike the Minister’s argument if he is going to give us figures showing the number of farm workers who are paid above the minimum rate? Is it not true that in those circumstances, farm employers still use increases in the minimum rate to increase the rates that they pay their workers, even though those rates are above the minimum?

[Andrew George]

I am grateful to the right hon. Gentleman for making that point. The initial defence that Ministers gave for their proposal was that it is okay because there is a national minimum wage. The last Conservative Government did not consider such a proposal because there was no national minimum wage, but now that there is, they say that there is no fear because it provides a safety net for agricultural workers.

There are six grades of pay, from grade 1, which is only 2p above the national minimum wage, up to grade 6 which is—I do not have the figure in front of me, but I am sure the Minister will tell me it—about £8.80 an hour. Grade 6 is paid to farm managers and equivalent positions. I do not think that that is a lot to pay a farm manager. It is important to acknowledge that as little as 20% of the agricultural work force are paid at the grade 1 level. Therefore, 80% are paid above the grade 1 level. That helps to emphasise the point that it is vital to retain those grades.

It is not only the grades that are vital, but the conditions on holidays, sick pay, retention to be available on duty, standing pay, payment for the retention of a dog, and tied accommodation. About 30% of agricultural workers have tied accommodation. The regulations that apply to that are important because once somebody is in tied accommodation, they have a rather different relationship with their employer.

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[Mr Frank Field]

Might not the National Farmers Union give a different answer if the Government were to address the question of how we can grow more food to feed our population? We have a huge trade deficit, and the answer must surely be to invest more. If we raise our investment in people, we will raise productivity. The push should be not to lower wages but to raise them and to raise productivity.

[Mr Thomas]

My right hon. Friend is absolutely right. Indeed, I hope that he will catch your eye later, Madam Deputy Speaker, to enable him to make that point in more detail.

I shall return, if I may, to the concerns expressed by Mr Leniec about the abolition of the Agricultural Wages Board. He is also worried about the loss of sick pay that he could suffer. He has never needed it to date, but knows of others who have done so. He also shares Mr Neville’s concern about the loss of protection of the right to overtime if he should move to a different employer.

The Agricultural Wages Board continues to provide an unheralded but important service in helping to protect vulnerable people and their families, who are vital to the rural economy, from seeing their terms and conditions progressively worsen. It helps to regulate basic pay and protection for fruit pickers, farm labourers and other farm workers. It deals with wages, holiday pay, sick pay and overtime, as well as bereavement leave, holiday entitlement and rates for night work. It provides a crucial floor beneath which wages in the agricultural economy cannot fall.

Nearly 150,000 agricultural workers in England and Wales depend on the Agricultural Wages Board. Those workers play a part in maintaining the vibrancy of our rural communities. They are the unsung essential staff who support farmers in helping to keep agricultural businesses thriving. As my right hon. Friend the Member for Birkenhead (Mr Field) has just suggested, they form a vital part of our food production industry, helping to ensure that we and our constituents can all enjoy healthy—and, occasionally, unhealthy—meals.

It is striking that many farmers continue to support the Agricultural Wages Board. Its presence means that they do not have to become employment specialists, and that they can instead concentrate on running their businesses. The deputy director of the Farmers Union of Wales has noted that

“the AWB is considered an important means of avoiding potential conflict and lengthy negotiations with individual staff”.