Agricultural Wages Board

Pat Glass Excerpts

Wednesday 24th April 2013 Commons Chamber

[Pat Glass (North West Durham) (Lab)]

The Agricultural Wages Board is important in constituencies such as mine—rural communities where there is already much poverty, and wages are low. Established by the Attlee Government in 1948, the board has served us for the last 65 years, setting a minimum wage and terms and conditions of employment for workers employed in agriculture. It costs the Government little to administer; I am told that it will probably cost more to abolish than to maintain.

It appears that the decision to abolish the Agricultural Wages Board is not based on financial evidence. It is yet another decision from a Government who spurn concepts such as data and evidence in favour of ideology and dogma. Once again, their adherence to ideology and dogma will have an impact on one of the hardest working and least well paid groups of workers in our rural communities.

The Government were intent on abolishing the Agricultural Wages Board from day one. The original announcement was made in July 2010. The leading party in the coalition Government, whose MPs include members of the wealthiest landowning families in this country, hardly had time to get their well-heeled shoes under their new shiny Government desks when they made their initial announcement. However, before the Government could take the final abolition decision, I understand they were told that they needed to carry out a consultation of interested parties or face a judicial review that they would probably lose on the grounds of insufficient consultation, and that they needed the consent of the delegated Welsh authorities to abolish the board.

[Mr Spencer]

Given that the hon. Lady knew about the decision in 2010, has there not been adequate time between then and now to consider all the options?

[Pat Glass]

I am not the Government, so I cannot respond to that question. Had I been the Government, I would have stuck to their rules and standards for consultation. They did not.

What did the Government do? Did they conform to Cabinet Office standards for consultation? Did they carry out an extensive 12-week consultation, avoiding main holiday periods, and making extensive efforts to ensure that all those affected, as well as all those with an interest, had an opportunity to take part? Did they carefully consider the outcomes of consultation in their final decision? Did they consult the Welsh Government, whose agreement was needed for abolition? They did none of those things; they came up with an extremely shabby plan to get round them.

The Government redefined the Agricultural Wages Board as a “regulatory reform” to avoid the necessity of even trying to get the co-operation of the Welsh Government, and they cobbled together a four-week consultation that failed to meet their own standards on consultations, issued by the Cabinet Office. Even then, 63% of those who responded to that sham and shameful consultation disagreed with abolition, so they were simply ignored.

Having failed to carry out a proper consultation, the Government decided to attach an amendment to the Enterprise and Regulatory Reform Bill and pushed it through the House without debate. When the Government hold something that is clearly a sham consultation over four weeks instead of 12, ignore their own standards, and then ignore the results of the consultation, is it any surprise that people question, and are suspicious of, any public consultation?

[Andrew George (St Ives) (LD)]

The problem was not just the lack of consultation with the public, but the lack of consultation with the House. Those of us who were engaged in the passage of the Public Bodies Bill expected that there would be a full debate on the abolition of the Agricultural Wages Board in the future but, whether through cock-up or conspiracy, we were denied that opportunity.

[Pat Glass]

I agree with the hon. Gentleman. This is not a decent way for a Government to behave. Hon. Members start to feel superior about foreign Governments that we consider illegitimate when we see them behaving in this way. We criticise such behaviour in others, and it is not what the House and the country expect from our Government.

Why are the Government so desperate to abolish the Agricultural Wages Board that they will breach their own consultation and deny debate in the House? Is the board excessively expensive? Does it act illegally? Is it so far beyond reform that the only way to deal with it is by abolishing it in this high-handed manner? It is a public body that costs very little, yet decides the terms and conditions of agricultural workers. It sets rates for young workers, including those under 16, who are not covered by the minimum wage. It also sets out maximum deductions for tied housing, which affects up to a third of farm workers.

Why are the Government so determined to use whatever means possible to abolish the board? Their only answer is that it is too bureaucratic for farmers, so implementing decent wages and conditions for workers on top of all that form filling to claim EU farm subsidy payments is clearly too bureaucratic. The Government argue that abolishing the Agricultural Wages Board, and hence the agricultural minimum wage regime, will simplify employment practices and remove an unnecessary regulatory burden. The problem for farmers is therefore nothing whatsoever to do with the predatory practices of the supermarkets, but all about the time it takes to read the annual bulletin from the Agricultural Wages Board.

The Government’s impact assessment shows clearly that workers’ wages will fall by up to £34.5 million a year over 10 years as a result of abolition. For new contracts, the change in the value of annual leave, if employers implement statutory terms rather than those under the agricultural workers order, will be up to £13 million a year over 10 years. Farmers’ employment costs that represent transfer payments to the Government and others will fall as wages fall, so the Exchequer will also be hit, and that is before we consider the cost to the public purse of paying the working benefits that agricultural workers will need as their wages fall.

The north-east is the region that has the smallest number of people working in agriculture. That is partly because it is the smallest region and partly because it has the highest rate of unemployment in the country. Nevertheless, 3,360 people in the north-east work on the land. The abolition of the board will have a direct impact on 60 people in my constituency. If we force agricultural workers off the land and cannot attract younger workers, just who do Ministers think will fill these jobs? Let me tell them: it will be people from overseas.

According to the Government’s figures, the abolition of the Agricultural Wages Board will take £260 million out of the rural economy over 10 years. It will take money out of rural communities, village shops, pubs and post offices, and away from everyone who relies on those businesses. Rural communities have already lost local buses, and the Government are set on a national funding formula for schools that has no place for a small schools premium, which will result in the closure of rural schools—hon. Members heard it here first. The abolition of the board will lead to lower wages, poorer rural housing and an increase in the number of immigrant workers on the land. The way in which the Government have brought about the abolition does them no credit whatsoever, yet the real tragedy is not the way this discredited Government have acted, but the real impact that their policy will have on rural communities such as mine throughout the country.