Agricultural Wages Board

James Paice Excerpts

Wednesday 24th April 2013 Commons Chamber

[Mary Creagh]

They are certainly driven by ideology, although the ideology of the Minister of State seems to have changed from when he was a Back Bencher, now that he enjoys the privilege of a Government car. I do not know what has changed for him.

Without the AWB, farm workers will be worse off. As my hon. Friend the Member for Corby (Andy Sawford) said, there will be no minimum wage for children under 16. Seasonal workers will lose their entitlement to their own bed, which is currently guaranteed by the board. The cap on the amount employers can charge workers for tied accommodation, currently £4.82 a day for a caravan, will be removed. Some 42,000 casual workers will see their pay cut to the minimum wage as soon as they finish their current job. The rest will see their wages eroded over time.

[Sir James Paice (South East Cambridgeshire) (Con)]

What evidence does the hon. Lady have for her statement that all those casual workers will see their pay cut immediately at the end of their contracts? Farmers are desperate to get casual workers, and that is why they are keen for us to continue the schemes to bring them in from eastern Europe. They will not be able to get the staff if, as she suggests, they cut their pay.

[Mary Creagh]

I will be talking in detail about the seasonal agricultural workers scheme. I just say to the right hon. Gentleman that 1,610 people in his constituency will be affected by the reduction in pay. I do not know whether he has read the Department for Environment, Food and Rural Affairs impact assessment that was conducted when he was the Minister; I certainly have. It states that 42,000 casual workers are likely to see their pay default to the national minimum wage when their current employment comes to an end. The cost to the rural economy that the Department for Business, Innovation and Skills impact assessment estimates—there are varying figures—are to do with the direct loss of wages, holiday pay and sick pay out of workers’ pockets.

--- Later in debate ---

[Andrew George (St Ives) (LD)]

It is quite clear that the proposal to abolish the AWB is not driven by a worry that it holds pay back or conditions down.

[Sir James Paice]

Yes, it is.

[Andrew George]

If the Government are arguing that it is being abolished to enhance pay and conditions, we will hear that from the Front Bench in a moment. Does the hon. Lady agree that we do not want simply to go the lowest common denominator?