Enterprise and Regulatory Reform Bill Debate

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Enterprise and Regulatory Reform Bill

Lord Greaves Excerpts
Wednesday 6th March 2013

(11 years, 9 months ago)

Lords Chamber
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If the complaint is that the AWB has not been properly modernised, then it should be modernised. You do not scrap a car or a tractor because a part of it is damaged: you mend it. The AWB was needed when Winston Churchill first set up the wages councils; it was needed in the 1980s when other wages councils were abolished and it is still needed now. Let the AWB be improved and updated, but not abolished.
Lord Greaves Portrait Lord Greaves
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My Lords, I was pleased to add my name to this amendment. I congratulate the two previous speakers who said quite a lot of what I might have said, and I will try not to repeat what they said. I agree with practically every word that both speakers said and I think we should be aware that the noble Lord, Lord Whitty, is probably the greatest expert on these matters in your Lordships’ House. There are obviously others on different sides who have similar expertise.

This takes me back to the debates on the Public Bodies Bill some two years ago when I moved an amendment in Committee to remove the Agricultural Wages Board from the purview of that Bill. Noble Lords will be surprised to learn that I made a long speech on 1 December 2010, which is reported in Hansard, beginning in column 1513. I read it again just now and nothing seems to have changed, so I thought I would read it all out again. Then I looked around the House and saw at least half a dozen people whom I remember being present in that debate; it would be unfair to them to subject them to it again, although it might have done everybody else some good.

At the time, efforts were being made within what I might call coalition circles, led by my honourable friend Andrew George, who was co-chair, along with me, of the Liberal Democrat Defra committee at the time. We were trying to save the AWB, or at least find an alternative system which would preserve some of its best features. We thought we were going to achieve some success, but we failed; I very much regret that. One reason may have been that the Defra Ministers at that time did not include any Liberal Democrats, but I do not know.

When the then Secretary of State Caroline Spelman announced that she wanted to abolish the Agricultural Workers Board, there had been no consultation whatever. There has now been a consultation, but, as the noble Lord, Lord Whitty said, it was for a mere four weeks. That breached the standard of 12 weeks which is supposed to prevail for such consultations. It was obviously part and parcel of the effort to shunt this clause into the end of this Bill, pretty well at the end of the parliamentary process. It has resulted in my appearance for the first time in this Bill at the end of the process.

Why are the Government doing this? The Government’s consultation and their report on it are thorough and very interesting. It is absolutely clear, as the right reverend Prelate said, that the people and organisations in favour of it include, in particular, the horticultural sector, with its very large number of seasonal workers. There are some very good horticultural firms, but there are also some where the conditions for the workers leave a lot to be desired. They are different from most other farms in this country. Those in favour of abolition also include the big farms, which are often prosperous, the supermarkets and the food processors. They are the people who want this and we have to ask ourselves why.

Then there are the people who do not support it, which is clear from the consultation. There are some quite harrowing comments from small and medium-sized farmers who believe that, far from it removing the regulatory burdens from farm business, as the Minister argued when he opened this debate, it will increase their administrative burdens. These are small businesses that rely very much on the help and support they get by having a firm structure and framework for employing their staff. If they have to do it all themselves, it is going to be much more difficult for them.

Two years ago, my honourable friend Mark Williams spoke in the Public Bill Committee in the House of Commons and quoted what I had said here; it is all a bit circular, but there is a good reason for this. He said:

“As we have heard, it is not totally acceptable to rest behind the national minimum wage legislation, because other concerns about terms and conditions need to be addressed. Lord Greaves said in that debate:

‘Will there be a new national system set up? Will there be a bargaining system set up within the industry—an unofficial system…outside the purview of statutes and government, in which employers and representatives of agricultural workers negotiate? Or to what extent will it be left to individual farmers to negotiate with their own workers or just impose’—

the word “impose” is critical—

‘terms and conditions and wages…above the national minimum wage?’—[Official Report, House of Lords, 1 December 2010; Vol. 722, c. 1515.]

I am still looking for the elusive clarity on that matter, particularly about the issues that the hon. Lady mentioned on terms and conditions, people under 16 and so on”.—[Official Report, Commons, Public Bodies Bill Committee, 8/9/2011; col. 54.]

As far as I can see, that remains the position. The NFU has answered this to a degree by saying that it would provide support, assistance, advice and help to its members, but first, not all small and medium farmers are members of the NFU by any means. That is a problem.

Secondly, the NFU, which sounds like a trade union, is in fact the employers’ organisation in this context. It simply cannot give the sort of balanced and unbiased regulation that the AWB now provides. The AWB has an equal number of representatives from the NFU and from Unite, as well as five independent members on top. It provides a place in which negotiation can take place, but it also has to take an overall balanced view, which we would lose. The questions that Mark Williams put have not been answered; it will be interesting to hear how the Government think it will work.

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Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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I thank my noble friend the Duke of Montrose for that question. It is best that I get back to him in writing after the debate.

While I welcome that the amendment acknowledges the need to abolish the 15 agricultural wages committees and 16 agricultural dwelling house advisory committees in England, we do not consider that there is a need to retain any of the functions. The amendment tabled by the noble Lord provides the Agricultural Wages Board itself to take over the functions of the ADHACs in England. The Government are committed to growing the rural economy. A key part of that would be to ensure a dynamic and prosperous future for the agriculture industry.

We are already taking forward the recommendations of the Farming Regulation Task Force which will remove a range of unnecessary regulatory burdens from farm businesses. We are improving access to superfast broadband and the mobile network coverage in rural areas, which will make it easier for farm and rural businesses to operate. We have provided almost £57 million to the Welsh Government to ensure that broadband access is available to homes and businesses including the hardest to reach areas in Wales.

Some £100 million is being invested from the Rural Development Programme for England, which will help small rural businesses to improve their skills, facilities and competitiveness. We have also introduced a pilot of rural growth networks to share lessons learnt to stimulate sustainable economic rural growth.

This whole package of measures, together with the ending of a separate agricultural minimum wage, will support the agriculture industry in having a successful and competitive future, which will benefit all those who work in agriculture and the rural economy.

The abolition of the Agricultural Wages Board is supported by industry bodies, including the National Farmers’ Union, the Country Land and Business Association, the Tenant Farmers Association and the Association of Labour Providers. It is supported by independent professional advisers, such as the Central Association of Agricultural Valuers and the Agricultural Law Association. In view of the above, I hope that the noble Lord will feel able to withdraw his amendment and I commend the government amendments to the House.

Lord Greaves Portrait Lord Greaves
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On the question of dairy prices, is the Minister aware that for many dairy farmers, many of whom have been forced out of business, the farm gate price which has been forced on them by the market power of supermarkets and milk processors has been around or even below the cost of producing the milk? The supermarkets and milk processors have been able to use their market power to force down prices. The fact that there may be cheap milk imports means that the supermarkets can do that. But it is the supermarkets themselves who are responsible.