Agricultural Wages Board

Nia Griffith Excerpts

Wednesday 24th April 2013 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Mr Owen Paterson)]

I am grateful to the hon. Member for Wakefield (Mary Creagh) for securing a debate on this issue. I acknowledge the strong feelings that she has expressed, but I am firmly convinced that the abolition of the Agricultural Wages Board is in the best interests of all those working in the industry. It will provide simplification and greater flexibility, thereby encouraging investment, growth and job opportunities in the sector.

[Nia Griffith (Llanelli) (Lab)]

Will the Secretary of State explain exactly how the board’s abolition will create job opportunities? Will it happen by driving down wages?

[Mr Paterson]

I am grateful to the hon. Lady for that early intervention. If she gives me a chance, I will explain my case. I take a completely contrasting view to hers. I have a positive view of agriculture and I see an expanding demand for labour in the countryside. I believe that the current minimum wage arrangements will give protection to those at the lower end of the scale, but I am absolutely convinced—because it is happening already—that the overwhelming number of employees in the sector will be paid well above the minimum wage. Let me make my case; I might be able to convince her.

A successful agricultural industry will contribute to the growth of the wider rural economy, which is one of the four key objectives of my Department. Agriculture is vital for the UK. It produces much of the food that we eat and supports other industries that add nearly £90 billion to our economy. The food supply chain employs nearly 4 million people and includes the largest manufacturing sector in the UK. Exports of agricultural food and drink have seen seven years of continuous export growth and were worth £18 billion in 2011.

There are huge opportunities for further growth within agriculture to meet the demands of feeding the world’s population as it grows from 6 billion to 9 billion. We want to ensure that the UK industry is in the forefront of meeting those demands, and we are already doing a great deal to help to ensure the success of the industry. An example is the joint Department for Business, Innovation and Skills-Department for Environment, Food and Rural Affairs agri-tech strategy, which will provide a framework for research and the development of technologies. It will support growth through encouraging the global uptake of world-class UK-based agri-science and associated technologies, stimulating their translation into high-tech agricultural systems in the UK. We are working on the design of the new rural development programme, which we will use to develop professional skills, including business management and risk awareness, across the agriculture and forestry sectors.

--- Later in debate ---

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I am glad to have the chance to speak in this debate. I have been getting increasingly frustrated, as is often the case, by what seems to be a cack-handed effort on the part of the Opposition to ingratiate themselves with the rural community. In so doing, they have managed to be pretty offensive to every aspect of the rural community.

I can only share some anecdotal thoughts in this debate. Prior to entering Parliament, I spent 28 years working in various parts of that community. I have worked on a farm, I have worked for farms, I have worked for big estates and small estates, I have represented landlords, tenants and farm workers, and I have worked in forestry and country sports. There is almost no aspect of the rural economy and the rural community that I have not come into contact with over quite a long period.

Throughout that whole period, not one single person ever said to me, “Of course, what we really need to do is preserve the Agricultural Wages Board.” In the run-up to the last election, I asked a group of farmers and farm workers in my constituency if there was a single thing that the Government could do: if there was one thing only on the Christmas list, what would it be? Without hesitation, the answer was, “Get rid of the Agricultural Wages Board. It has outlived its usefulness.”

[Nia Griffith]

Can the hon. Gentleman tell us what members of the Farmers Union of Wales told him in response to that question?

[Simon Hart]

I can. The FUW members supported the abolition of the Agricultural Wages Board. The FUW as a union made rather a different representation. I speak on behalf of members in my own constituency. Of course I cannot speak for the union based in a different area.

One of the things that I find startling is that the shadow Secretary of State, the hon. Member for Wakefield (Mary Creagh), rather than the whole party that she represents, seemed to find it impossible to believe that an owner, a manager, a farm worker and a forester can all work harmoniously together because they have a common shared love of food production or a common shared love of their community and want to do the right thing by their farmer. That seems to be a concept that the Opposition cannot absorb because they have a union-fuelled view that it is some kind of Dickensian existence out there. For those of us for whom it is our daily life—it is where I shall be by the end of tomorrow—it is not like that. It may be like that in Wakefield, but it ain’t like that in Pembrokeshire.

I am particularly sad that the shadow Minister, the hon. Member for Ogmore (Huw Irranca-Davies), is not in his place. He seems to be dancing to the union tune on the subject. I know Ogmore in the way that he knows Pembrokeshire, and we both know, as I said, that this is not an issue for agricultural workers in either of our constituencies. I am surprised that he has not stood up to the pressure from the sponsors of the debate and spoken on behalf of the agricultural workers, with whom we are all familiar and for whom we have great respect in west Wales.

--- Later in debate ---

[Nia Griffith (Llanelli) (Lab)]

Ministers have still not convinced me about why they want to abolish the Agricultural Wages Board. If they are so convinced that agricultural wages will not go down, why are they so determined to abolish it? Why should it matter to them if it continues to exist and people continue to be paid at the rates it sets?

DEFRA’s own assessment has calculated that abolishing the AWB will take £260 million out of the rural economy over the next 10 years. That can mean only one thing: the 80% of agricultural workers who are on grades 2 to 6 will be vulnerable to having their pay driven down to minimum wage levels, regardless of the skills involved, not to mention the antisocial hours and the need to be out in all weather, using complex machinery, but still getting wet and dirty. Of course, that means less money in the rural economy, with a knock-on effect for the village shop and others employed locally.

We talk about fair trade for developing countries and getting a fair price for their products so that their farming communities can get reasonable rewards for their efforts. After much campaigning by Opposition Members, and indeed the hon. Member for St Ives (Andrew George), the Government have agreed to give the groceries code adjudicator some teeth, which is an important step towards tackling exploitation and giving farmers a fair price for their produce. However, it is equally important to ensure that the workers who harvest that produce are fairly remunerated, and the AWB has a vital role in protecting agricultural workers.

In other words, it is not enough that the groceries code adjudicator ensures that the supermarket does not exploit the farmer; the AWB’s conditions also ensure that the farmer does not exploit the worker. That is particularly important because, as a response to the Macdonald report, the Government are now threatening to reduce the impact of the Gangmasters Licensing Authority, whereas we would like to see its remit extended to cover sectors such as care homes and construction.

As my right hon. Friend the Member for Delyn (Mr Hanson) said, the Farmers Union of Wales is firmly opposed to the abolition of the AWB. I find it quite insulting that the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) seems to have completely ignored what the FUW has on its website and what it has repeatedly said when it has come to see us.

[Simon Hart]

What I actually said was that the members of that union in my constituency who have approached me take a different view.

[Nia Griffith]

Well, farmers in general want to be fair to their staff, and I would certainly say to the hon. Member for Tiverton and Honiton (Neil Parish) that the good guys do not need the legislation, but legislation is necessary for those who do try to exploit people and who do not necessarily play by the rules. As I have said, most farmers want to be fair.

Many farmers in areas such as rural Wales are both employer and employee, because they often work on contract for other farmers. They might sometimes employ agricultural workers, but they or members of their family might also be employed as agricultural workers. They have said themselves that it is not about being unable to set pay rates, but that it is far simpler and fairer in a rural community to say that everyone will go by the same rate. That is the importance of the AWB, and that is exactly what the FUW has been telling us.

Of course, it is not just about a minimum wage, because there are all the other things that the AWB sets, such as allowances for night work and being on stand-by, bereavement, sick leave, holiday entitlement and the rates for under-16s, none of which are covered by the national minimum wage legislation. In a rural community there are few alternative job opportunities and it is difficult for agricultural workers to find alternative employment. The cost of living is often higher because of the higher costs of transport and fewer opportunities to shop around for cheaper deals.

Those who rely on their employer for accommodation are even more vulnerable. There is often no alternative accommodation in rural areas, and the AWB plays a vital role in setting maximum charges for accommodation and minimum standards of sanitation, and in making sure that each worker has their own bed to sleep in.

What will happen when casual workers start their next job and find that the going rate is less? For many of them that will mean that their households incomes fall, so more families will become more reliant on higher levels of tax credit, which will not be good for the public purse. It would be far better to make sure that they had the proper rate of pay for their work and a proper wage from their employer, so that they could be less reliant on handouts.

This is part of a seemingly much wider attack by the Government. I regret that the legislation to abolish the AWB is being passed in such an unpleasant way and by the back door, when the Welsh Government made a very strong case to keep it in Wales when it was part of the Public Bodies Bill, not the Enterprise and Regulatory Reform Bill. This has done a terrible disservice to our rural communities.