Agricultural Wages Board

Lord Hanson of Flint Excerpts

Wednesday 24th April 2013 Commons Chamber

[Mary Creagh]

I think the hon. Gentleman has made that case very well himself. We expect an announcement from our colleagues in the Welsh Assembly Government, but they have made a commitment to retain the functions of the AWB in Wales. We will see what that delivers over time.

All was quiet until the appointment of the Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for North Shropshire (Mr Paterson), who decided to abolish the AWB by tacking it on to the Enterprise and Regulatory Reform Bill—a regulatory reform that could therefore bypass the Welsh Government. His Department conducted a pitifully short, four-week consultation. Let us remember that there was a full 12-week consultation on banning ash trees from Europe four months after Ministers were first told that ash dieback disease was here. We can see where this Secretary of State’s priorities lie—apart from the squirrels. He is swift to take money from workers’ pockets and hand it back to their bosses, but slow to defend the natural environment.

[Mr David Hanson (Delyn) (Lab)]

Does my hon. Friend recognise that the Secretary of State represents a border constituency? If, as expected, the Labour-controlled Welsh Assembly maintains the AWB at its own expense, members of the farming community in his constituency would have to travel only one or two miles, potentially, to get a better deal. He will have a skills shortage in his own constituency.

[Mary Creagh]

Absolutely. The Secretary of State has not only 1,120 agricultural workers, but a food bank, in his constituency, so that is an excellent point very well made.

--- Later in debate ---

[Mr David Hanson (Delyn) (Lab)]

I begin by telling the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) that it is not just Conservative Members who represent rural areas; many of us on the Opposition Benches represent large rural communities, know them, understand them, live in them and want to represent them in the House today.

In this week of praise for great Prime Ministers of the 20th century, I would like to add my words of praise for Clement Attlee for introducing the original legislation in 1948. I do so not to look back more than 60 years to the conditions in 1948, but to put it on the record that these things matter today for my constituents and those of other Opposition Members.

[Mr Russell Brown]

I represent a constituency north of the border, where this discussion has no real relevance or impact, but farm worker constituents who have contacted me are in solidarity with their colleagues in England and Wales and say that what is going on is absolutely wrong. I appreciate that the hon. Member for Westmorland and Lonsdale (Tim Farron) says that he has not been contacted, but I have. Perhaps his constituents have not contacted him because they have no trust in what he is doing.

[Mr Hanson]

This issue certainly matters to people across the whole of the United Kingdom because, even though the AWB is for England and Wales, its abolition will have an impact throughout the UK.

In my constituency, 235 businesses are involved in agriculture and farming, and more than 11% of my constituents work in the agricultural sector. The market town of Mold in my constituency depends not only on the cattle and agriculture markets to bring people in, but on the wages of people who work in agriculture to maintain its shops, business and rural community.

[John Glen (Salisbury) (Con)]

I have a great deal of respect for the right hon. Gentleman, but the National Farmers Union briefing states:

“The Annual Survey of Hours and Earnings (ASHE) for 2010 showed that 90% of workers employed in agricultural trades received gross pay above £6.50 an hour”,

which I think was the minimum set by the AWB. If he is seriously concerned about wage levels in the agricultural sector, how does he respond to that review of actual pay levels?

[Mr Hanson]

I am grateful to the hon. Gentleman for his question. I am genuinely worried that wages will fall when the AWB is abolished, and I am not the only one: the Farmers Union of Wales, which I will come on to later and which represents the bulk of farmers in my area and other farmers in Wales, supports the official Opposition’s stance against the abolition of the AWB. There is a division of opinion and we need to expose it.

[Andrew Percy (Brigg and Goole) (Con)]

I am not sure that I follow the right hon. Gentleman’s logic, so could he talk us through it a little more? If 90% of pay is already above the AWB’s minimum, how come it has not already fallen back to that minimum?

[Mr Hanson]

If the hon. Gentleman will let me develop my argument, he will see that this is not just about pay. He was not here at the time, but the Secretary of State kept me up for 36 hours so he could vote against the minimum wage. He did not do that so that wages could rise; he did it so that wages would not rise. My worry about the abolition of the AWB is based on exactly the same principle: it will remove a floor that protects the work force in my constituency.

As I have said, my constituency depends on agriculture and more than 11% of my constituents work in agriculture. Courses in horticulture and agriculture at Northop college bring in people to train in agriculture. These are key issues. Although Government Members may view minimum rates of pay, overtime, holiday entitlement, sick pay, rates of pay for young workers, compassionate leave, rest breaks, maximum deductions for tied housing, allowances for keeping working dogs and payment of on-call and night allowances as issues of regulation, to my constituents they are bread and butter matters that impact on their lives and they want their representative and others who represent rural areas in Parliament to stand up and speak on their behalf. They are not idle issues.

I am getting a bit long in the tooth. I have been here for 21 years and the first Bill Committee I sat on was for the 1992 employment Bill that abolished every single wages board apart from the AWB. That Bill was taken through this House by the then Member for Stirling, the now noble Lord Forsyth, who is not known for his left leanings, but who decided to maintain the AWB because he recognised, even at that time, that it was crucial for conditions as well as wages.

The national minimum wage has been mentioned. I was very proud to vote for the national minimum wage and am grateful that my right hon. Friend the Member for Derby South (Margaret Beckett) is here. It was one of the greatest achievements of the Labour Government. The then Opposition kept this House up late into the evening because they did not support it. Why should we trust a party that does not support the national minimum wage when it says that this measure will maintain or improve pay and conditions?

[Yasmin Qureshi]

Is it not right that over the past 15 or 20 years, the Conservative party has always taken away working people’s rights and benefits when in government?

[Mr Hanson]

My main worry is that the assessment of the Welsh Assembly that some £26 million to £28 million will be taken out of agricultural wages in Wales over the next 10 years will prove to be correct and that rural poverty will increase. That is money that will not be spent in the shops of Mold, Holywell and Flint in my constituency, that will not help to sustain the rural economy in my constituency, and that will not be spent in the rural post offices, pubs and communities of my constituency. That money will be lost to the area. This measure will be damaging for the 13,829 people across Wales who work in the agricultural sector and who depend on the wages board.

As I have mentioned, the Farmers Union of Wales, which, with respect to the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart), is not affiliated to the Labour party, has said on many occasions that it opposes the moves by the UK Government to abolish the Agricultural Wages Board. It stated:

“The Union has always supported the AWB and remains concerned that unless there are systems in place to protect payments to agricultural workers, the industry will not attract the highly skilled individuals it needs to thrive”.

It went on to say:

“As many farms in Wales run with relatively few staff, the AWB is considered an important means of avoiding potential conflict and lengthy negotiations with individual staff”.

It also said:

“The economic climate within the agricultural industry has made it a less attractive option for young people, and rewarding skills, qualifications, and levels of responsibility is a vital means of persuading high calibre people to remain or enter into the industry.”

As my hon. Friend the Member for North West Durham (Pat Glass) said, the Labour-controlled National Assembly for Wales was not consulted about the abolition of the AWB, as it should have been by statute. The Government failed to do that and passed the measure through the back door in a Bill that did not require consultation. The Secretary of State knows that he should have consulted the National Assembly. These are important matters for my colleagues there. As has been mentioned, the National Assembly may outline shortly its plans to keep the minimum wages and conditions set by the Agricultural Wages Board in a Welsh context. However, that will involve bureaucracy and cost. It would have been far better, particularly from a Unionist party, if the conditions had been maintained across England and Wales.

As I mentioned in an intervention, the Secretary of State represents a border area. His constituency of North Shropshire is not far from mine; his borders Wales and mine borders England. If there are different terms and conditions on either side of the border, the market will flow across it. If the conditions are worse in England than in Wales, which they may be if the Welsh Assembly retains the board, the Secretary of State will find that there is a flow of individuals looking for better terms and conditions, who will perhaps only have to travel 1 or 2 miles across the border. I find it strange that that will be caused by a Unionist politician. Mold, Holywell and Flint in my constituency will lose income because of this measure, but I believe that there will also be a confidence issue.

In conclusion, 63% of the people who were consulted did not support this measure and the Welsh Assembly does not support it. I accept, as the hon. Member for Carmarthen West and South Pembrokeshire said, that Unite the Union does not support the measure to abolish the board, but it is part of a broad-based coalition that does not accept it. The Minister of State—the Tonto to the Secretary of State’s Lone Ranger—did not support this proposal in opposition, but is an advocate of it in government. He should examine his conscience and think about what is in the interests of his constituents.

The people driving the change are the same people driving tax cuts for millionaires. They are out of touch with their communities and with rural areas. I am proud to represent a rural area and speak up for it in Parliament, and I will be proud to vote today and say that whatever has already happened in legislation, I support the AWB.