Seasonal Agricultural Workers Scheme

Neil Parish Excerpts

Thursday 6th July 2017 Westminster Hall

[Neil Parish (Tiverton and Honiton) (Con)]

I beg to move,

That this House has considered the seasonal agricultural workers scheme.

It is a pleasure to serve under your chairmanship, Mr Gapes. There are two points to this debate: first, to highlight the current problems experienced by many in the horticulture and agriculture sectors in recruiting enough seasonal workers; and, secondly, to propose a new seasonal agricultural workers scheme after Brexit and ensure that the industry has enough seasonal workers to pick British fruit and veg.

It is no secret that this country relies on foreign labour to pick its fruit and veg. Some 80,000 seasonal workers pick and process British fruit and veg every year. The majority of them are from the European Union. Many are from Romania and Bulgaria. For better or worse, that is the current situation. Without those workers, British fruit and veg could rot in British fields, and that is the last thing we want. The problem is that seasonal EU workers are getting harder to recruit. Brexit and uncertainty about the status of EU migrants in Britain have played a part. Improving living standards in eastern Europe, particularly Poland, mean that fewer workers are attracted to Britain for higher pay. Perhaps the biggest factor in the labour shortages is the fall in the pound against the euro. The reduction has been between 17% and 20%.

[Norman Lamb (North Norfolk) (LD)]

I am sure that the hon. Gentleman would agree that the soft fruit industry in this country is a big success story. One of the major producers in my constituency is 77 staff short at the moment. That means leaving fruit unpicked. There is a real risk that this major success story could be undermined unless we get a good new seasonal agricultural workers scheme deal in place for the post-Brexit situation.

[Neil Parish]

The right hon. Gentleman is right. We have an extremely successful soft fruit industry. In parts of the country, we have very good vegetable growing, too. By their nature, those crops are perishable, so we have to have the labour there at the right time.

The fall in the value of the pound has immediately made work in the UK less attractive to EU migrants. It is time that the large retailers did something. If they do not buy British fruit and veg, they will have to buy it from the continent and pay more for it because of the value of our currency. It is high time that they stepped up to the plate and ensured we are getting a good price for an excellent crop that has nowhere near as many food miles.

Labour shortages are already having serious consequences. A recent BBC survey of members of British Summer Fruits and the British Leafy Salads Association showed that one in five growers already has fewer pickers than they need. Last year, when the Select Committee did an inquiry, an asparagus grower told us that he employed 900 staff. Those staff are needed when the asparagus is fit. A full 78% of respondents said that recruitment had been more difficult in the past year. That shows that the problem might be getting worse and the situation getting tighter.

A separate National Farmers Union survey from May reported a shortfall of some 1,500 workers. It also reported fewer returning workers in the first five months of the year. That paints a worrying picture. In the short term, it means that some food might simply not be picked. It also means higher prices in the shops for the fruit and veg that is picked. In the long term, if British farmers struggle to source the labour they need, that may delay decisions to invest. That could be a real problem. It could even export jobs and agriculture and horticulture industries abroad. We must not export our industry.

We also need greater flexibility in our labour market. Constituents come to see me because they often find it difficult going on and off benefits with short-term work. They get that work, but if they cannot get any long-term work, they have to go back on benefits. They are not always encouraged to get those jobs, and we want to see more of our own labour out there in the fields.

[Andrew Bridgen (North West Leicestershire) (Con)]

I commend my hon. Friend on securing this debate on an important topic. I bring the Chamber’s attention to my declaration of interest as a major shareholder in a vegetable processing company based in my constituency. Does he agree that businesses such as those in North West Leicestershire are based in areas with sparse populations, but very low unemployment? In my constituency, unemployment is less than 1%. Not only does local labour not necessarily want to take short-term, insecure work, but they are not available to do it, because unemployment is so low.

[Neil Parish]

My hon. Friend makes a very good point. It is partly because of the success of our economy that we have so much going on and that we need this labour. My constituency has the same situation as his, with very low unemployment. I do not have as much vegetable growing, but I have meat and poultry processing, which are almost entirely done by central and eastern European labour, and that is an issue. We want to ensure that we can find as much home-grown labour as we can, but we have also got to have accessibility to labour from Europe and, in the future, probably from beyond Europe.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I congratulate the hon. Gentleman on securing this important debate. He allows me to segue neatly on to an issue that does not just affect agriculture. We have labour from beyond Europe in fishing. There are fishing boats on the west coast of Scotland and in Northern Ireland that are tied up at the moment due to a lack of people. One boat alone has lost £100,000 in uncaught fish. People are willing to come back from the Philippines to the boats they used to work on. The Scottish community is one thing—everyone says yes in the Philippines and Scotland—but if one man in London says no, we cannot get the people in. The Immigration Minister has a big role to play here.

[Neil Parish]

The hon. Gentleman raises an interesting point on fishing. As we leave the European Union, there should be greater opportunities for fishing and catches, but we need the labour to do that. Going out to fish is not always seen as the nicest job in the world. We have probably got to look not only at labour availability in the long term, but the types of fishing boats we are using and everything. There is a lot to be done, but we need labour.

This April, the Environment, Food and Rural Affairs Committee published a report on labour constraints in agriculture. We came to a clear conclusion: the sheer weight of evidence from a range of farming and horticulture businesses was that they have big problems in retaining labour. We did not necessarily share the Government’s confidence that the agriculture sector does not have a problem. Some of the figures that the Home Office Minister provided were perhaps six or nine months out of date, and the situation is getting tighter all the time. Simply put, the challenge will become a crisis if the Government do not swiftly take measures. The challenge will only become more acute after Brexit, when the free movement of workers ends.

A strategy is urgently needed to ensure that British agriculture has the workers it needs in the short to medium term. Many people ask why British people cannot do the jobs. We all agree we want to see more British workers in the industry in the long term. It is not sustainable to rely on almost exclusively foreign labour for seasonal jobs. We need to think about a long-term shift now. Unemployment is now at 4.6% nationally. As my hon. Friend the Member for North West Leicestershire (Andrew Bridgen) said, in many constituencies it is much lower. In fact, it is at its lowest since 1995.

In many constituencies we are reaching almost full employment; it could be said we are a victim of our great success. The truth is there are not necessarily enough workers who are able and want to do the jobs. In my own constituency in Devon where agriculture is a key part of the local economy, there simply is not the demand for such seasonal labour among local people, so foreign labour must play a part.

[Pete Wishart (Perth and North Perthshire) (SNP)]

I congratulate the hon. Gentleman on securing this timely debate this afternoon. He has mentioned only in passing a word that has two syllables: one begins with “Brex” and the other begins with “it”. That clueless exercise is at the bottom and at the heart of the difficulties that we have now. The ending of freedom of movement has created massive difficulties and we will not get access to labour. What does his report say about how freedom of movement helps assist the situation?

[Neil Parish]

There is no doubt that freedom of movement helps to assist the required labour for these industries. In a minute I will talk about having a seasonal workers scheme that I think will help not only those in the European Union, but those who come from beyond the European Union, if they wish to come and work here. The one thing that the Brexit vote showed is that many people who wanted to leave the European Union might have done so because they wanted some control over the number of people coming in and out. I do not think they were necessarily against people coming here to work; I think they wanted to know who was coming and who was leaving. Perhaps that is one of the policies that we will have to get in place.

The alternative is to see food go unpicked and our industry potentially relocated abroad, which we really do not want. We want a pro-British policy that keeps our industries here with enough workers to make sure we pick the fruit and veg.

So how do we solve the problem? Luckily, there is a solution that does not require unfettered free movement within the EU and addresses the need for specific skills in each sector: namely, a new seasonal agricultural workers scheme. The scheme has run in various guises since 1945. In short, it allows non-British workers to work in UK agriculture on a temporary basis. The last version of the scheme was closed in 2013, prior to the free movement of labour from Bulgaria and Romania.

Once Britain leaves the EU in March 2019, a new seasonal scheme will become essential to ensure British agriculture has enough labour. A new scheme has three main advantages: first, it would allow the Government to control the numbers. It would not be the free movement of old. Instead, it would allow the UK to import skills and labour for specific sectors of the economy. Secondly, we could extend the new seasonal scheme to EU and non-EU workers. That would give the UK wider scope to source the agricultural workforce it needs. We would not need to rely so heavily on two or three EU nations for seasonal labour. Thirdly, a scheme could be designed so that applicants have to have a confirmed job before entering the UK. That would fit with what looks like the likely immigration model for Britain after leaving the EU.

In giving evidence to the Committee the previous Immigration Minister, my hon. Friend the Member for Scarborough and Whitby (Mr Goodwill), stated it would take five to six months to establish a new seasonal agricultural workers scheme. That means it is too late to establish a scheme for this summer’s harvest, but it may be an option for 2018 if labour shortages are still a problem. We are seeing a tightening in the labour market.

[Helen Whately (Faversham and Mid Kent) (Con)]

I am sure my hon. Friend will know from conversations with farmers that they need to make decisions years in advance of growing fruit. Is it not the case that farmers need positive signals from the Government sooner rather than later and preferably a pilot scheme next year rather than a wait and see approach, which is what we have heard up till now?

[Neil Parish]

My hon. Friend makes a good point regarding a pilot scheme. I am fond of my hon. Friend the Member for Scarborough and Whitby, but I do not always share his confidence that Government can move quickly to make sure that everything is in place within a few months. We ought to plan ahead much more. A pilot scheme next year, or an even wider scheme, is essential. Here we are in July 2017; two years will pass incredibly quickly and we need to be ready.

On the labour shortage problem, the new scheme in 2018 would allow workers from outside the EU to top up any shortages that EU workers were not able to fill. Secondly, it would ensure the UK is match fit for Brexit after March 2019 and could easily put a new system in place. There would be no cliff edge for British agriculture industries in finding labour because a scheme would be ready to operate from summer 2019.

British food and veg industries are not yet in crisis, but there are signs that the labour situation is getting tighter and we need to take that on board. The Government must take the necessary steps now to ensure we do not face a labour cliff edge in 2019. A sensible, proportionate seasonal agricultural workers scheme is essential to make sure British agriculture has enough workers. The Minister’s family has done much in the fruit and vegetable industry, so he understands the need for an availability of labour. As I said earlier, we also want to make sure our own labour market for our own workers is as flexible as it can be so that people are not worried about leaving benefits to get a seasonal job and then not being able to get on benefits again. That is an essential consideration.

If the Government were caught out, the consequences could be severe. We want more fruit and vegetables grown in this country—not less—and we want our businesses to thrive. I look forward to the Minister’s response and to hearing what plans the Government have in place.

--- Later in debate ---

[The Minister for Agriculture, Fisheries and Food (George Eustice)]

It is a pleasure to serve under your chairmanship, Mr Gapes. I welcome the shadow Minister, the hon. Member for Stroud (Dr Drew), back to this place and back to this wonderful brief, DEFRA, where we have so many complex issues to deal with.

I congratulate my hon. Friend the Member for Tiverton and Honiton (Neil Parish) on securing this debate to discuss the important work that the Environment, Food and Rural Affairs Committee has done on migrant labour as it applies to agriculture. It published its report in April, getting it out just before the general election, and it was a pleasure to give evidence to its inquiry earlier this year, alongside the Home Office Minister who is now the Minister of State, Department for Education, my hon. Friend the Member for Scarborough and Whitby (Mr Goodwill).

I completely recognise that the Committee has received a number of strong representations from the farming industry. I also understand that, as a number of hon. Members have said, part of the backdrop to the debate is a general apprehension in the farming industry about what might happen once we have left the European Union and what arrangements might be put in place to replace the free movement of labour that it currently enjoys.

My hon. Friend the Member for Tiverton and Honiton will be aware that the Home Office leads on this issue. He will also be aware that I have personal experience in this industry and understand the challenge well. The challenge has been set out by a number of hon. Members, particularly those with fruit producers in their constituencies, including my hon. Friends the Members for Tonbridge and Malling (Tom Tugendhat), for Faversham and Mid Kent (Helen Whately) and for North Herefordshire (Bill Wiggin). All those constituencies rely heavily on migrant labour.

I ran a soft fruit enterprise for the best part of 10 years. We used to employ 250 staff. Our farm in Cornwall was nicknamed locally “the United Nations”, because we had people from many different countries. We had staff from EU countries, but also some staff from Commonwealth countries, such as Australia and New Zealand, who were here on the then holiday work visa scheme. I know what it is like, and I know what it is like to have to close the gate on a field of strawberries that cannot be harvested because there are not enough staff.

As my hon. Friend the Member for Tiverton and Honiton pointed out, the seasonal agricultural workers scheme has been around since 1945. It was brought in after the war to ensure that we could provide our farms with the workers that they needed. However, as the EU expanded, the need for the scheme decreased. From 1990, it was subject to quotas, and in 1990 the quota was set at 5,500 places. It went up to about 25,000 by 2003, was reduced again in 2005 after the big accession of a number of new member states whose people were able to come here and work, and was put back up to 21,250 in 2008.

In 2005, the Home Office announced its intention to phase out, over time, existing quota-based low-skilled migration schemes, including SAWS, because labour needs at low skill levels were deemed to be capable of being met from an expanded EU labour market. From 2008 to 2013, SAWS was open only to nationals of Bulgaria and Romania, while transitional restrictions on their labour market access remained in place. The decision to end SAWS was informed by advice from the Migration Advisory Committee, which considered there to be no immediate shortfall in the supply of seasonal labour, although at the point at which it gave that advice, it conceded that in the medium to long term, which it identified as being possibly sometime after 2017, shortages could arise and we should therefore keep matters under review, which we have.

DEFRA established the SAWS transition working group. That met as recently as 6 March this year and discussed some of these issues of anecdotal reports that things are getting harder. Its conclusion in the March meeting, which I will come on to in more detail, was that this was a challenging situation but not a crisis.

My hon. Friend cast some doubt on the figures used by the former Home Office Minister and suggested they were out of date. That is unfair because the figures are clear and correct. The Office for National Statistics figures for January to March 2017 show that the number of EU nationals working in the UK was up by 171,000 to a total of 2.32 million. We also know that around 350,000 EU nationals work in the food chain.

The figures are right, but I agree and concede that they are migration figures. We are talking about something slightly different—seasonal migration, which does not show up in those figures. Seasonal migration is for those who come here for short periods—typically six months —and then return home for part of the year. Estimates of the number of people who come here as seasonal migrant workers and return home every year range from 67,000 to 80,000.

When the SAWS transition group met on 6 March, it discussed the reason for this anecdotal reporting of a tightening in that labour market, and a number of possible reasons were advanced. First, as a number of hon. Members have pointed out, the weakening of the pound against the euro means that it is less attractive to come here and work, particularly if people are sending money back home. Secondly, it was pointed out that there have been changes to child benefit entitlement in Poland, which means fewer people from Poland are coming to the UK. Thirdly, Bulgaria has been taking steps to encourage its workforce to stay and work there, which is also thought to be a factor. A number of factors may have had an impact on seasonal migrant workers, even though we know that net migration from the EU has continued to rise.

A number of hon. Members, including the shadow Minister, asked what research we are doing. The EFRA Committee’s report asked us to review things before the end of the year. I have asked officials to continue to monitor the situation closely, given the reports we are getting. In fact, they have a meeting tomorrow with some of the employment providers and the NFU. The purpose of the meeting is to establish what data we need to come back from the industry and under what timescale they are able to provide it. Having established that, we have at the earliest opportunity to convene another formal meeting of the SAWS transition group to review the data. It is very important that we are able to review the data across the whole of 2017.

[Neil Parish]

I thank the Minister very much for that thoughtful and good response. We can collect all these data, but if we see a tightening in the labour market, are we able to put a SAWS arrangement in place for next year? This is the bit I worry about. The Government say they can act fast, but some of the previous fast actions have taken longer than six months—dare I say?—and I am a little concerned. I hope we can be swift of foot. I am not making a party political point, just a point for the Government.

[George Eustice]

My hon. Friend will be aware that the Home Office leads on this area. He will also be aware that our colleague, the then Immigration Minister, said that he believed it could stand up a SAWS scheme within five to six months. I understand that it would require a statutory instrument, because it is not the case that the SAWS scheme is dormant and reduced to zero. In secondary legislation, the SAWS scheme was discontinued when we passed the legislation allowing the accession and ending of the transitional arrangements for Romania and Bulgaria. I believe it needs secondary legislation, and it would be a matter for the Home Office. My hon. Friend’s Committee heard what the Home Office Minister had to say on that.

There is a difference across the year and between sectors. A number of hon. Members have used the term “peak strawberry”. We know that the third quarter—that is, from July to September—is always the period when demand for seasonal labour is highest and the most important quarter to watch. In other parts of the year the pressure is lower, which can mean that different sectors are affected differently. It means, for instance, that the soft fruit sector reports the greatest problems.

Earlier today I spoke to a farmer I know, a daffodil grower in Cornwall, who employs more than 1,200 seasonal staff, predominantly from Romania and Bulgaria. They reported to me that they did not have any problems at all and actually want to increase the number of seasonal staff. They are looking at Bulgaria, a very large country, and working with jobcentres there. They are not reporting any difficulty in getting the staff they need. Of course, this is the daffodil industry during the first quarter, when competition for labour tends to be low, so I appreciate that it is different for some others. I also mentioned exchange rates, and they pointed out that it is not a big issue for them because although the exchange rate is down, it is roughly back to the levels it was in 2010-11. Exchange rates do go up and down and businesses have to plan for that.

I want to talk a bit about the context of the EU, which the hon. Member for Perth and North Perthshire (Pete Wishart) raised. Obviously, while we are in the EU, nothing changes. We still have free movement. I understand, however, that people want clarity about what will happen after we leave, and that is part of the backdrop, which the Government understand. While we want to have controlled migration, we are very clear that we are not pulling up the drawbridge. The shadow Minister, the hon. Member for Stroud (Dr Drew), asked about research. In addition to the work being done by the SAWS transition group convened by DEFRA, the Home Office intends to commission the Migration Advisory Committee to look at the UK labour market and our reliance on EU migrant labour across sectors. That will include looking at the SAWS.

--- Later in debate ---

[Neil Parish]

I thank the Minister very much for summing up, and thank the shadow Minister. I thank the hon. Member for Perth and North Perthshire (Pete Wishart), my right hon. Friend the Member for North Shropshire (Mr Paterson), the hon. Member for Strangford (Jim Shannon), my hon. Friends the Members for North Herefordshire (Bill Wiggin), for Faversham and Mid Kent (Helen Whately) and for Tonbridge and Malling (Tom Tugendhat), and the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil).

I again welcome the shadow Minister, the hon. Member for Stroud (Dr Drew). It is good to see him here. He made some interesting points regarding how the flexibility of labour in this country has something to do with some of the fixed-term tenancies in housing. That is interesting to put into the mix, because we need more home-grown labour.

I thank the Minister very much for his summing up. He is a man who actually knows the industry and what is happening. He knows that, with perishable vegetables and fruits, we need that labour and we need it now. What I will say to him, as would be expected, is that the Select Committee has done this report and realises that the labour situation is just about okay at the moment, but will follow what the Government are doing. Naturally, we will call the Government to account to ensure that there is a scheme in place when we need it. Otherwise, those fruits and vegetables will go to waste. We want more great fruit and vegetables. Colleagues from across the country decided that their counties and countries were the best for producing fruit, but we can absolutely agree that British fruit and vegetables are great; that we want to grow more of them; that we very much want the labour, from either home or abroad, to pick it; and that we have to ensure the labour is available.

I thank the Minister, the shadow Ministers and all Members for contributing, and you, Mr Gapes, for chairing.