Agricultural Wages Board

Simon Hart Excerpts

Wednesday 24th April 2013 Commons Chamber

[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.

[Tim Farron]

I deal with about 9,000 pieces of casework a year and I have not had a single farm worker write to me on the issue, which is surprising, but not when we think that the overwhelming majority of livestock farmers and dairy farmers in places like ours do not employ anybody, because they themselves are so hard up and are probably existing on significantly less then the minimum wage, considering what they earn and the hours that they work. We should be concentrating on how those farmers can get a fair deal for feeding the rest of us.

[Simon Hart]

The hon. Gentleman speaks with great knowledge because he represents an area suffering those hardships.

I shall not speak for long. I find it bizarre that last night when my hon. Friend the Member for Montgomeryshire (Glyn Davies) was fronting a debate on the hardship facing upland farmers, I was reprimanded by Mr Speaker for mentioning cattle when I should have been speaking about sheep. Never mind. Here we are debating something which is not relevant to the hardships facing the agricultural industry, certainly in my area, when we should be devoting our energy to other matters. I am surprised that the shadow Secretary of State was not there to hear the debate, which was important and involved her party as much as it involved ours. I am surprised that we are engaged in the present debate when we know that the abolition of the Agricultural Wages Board will not leave agricultural workers, certainly in my area, exposed or vulnerable.

[Glyn Davies]

Does my hon. Friend agree that if we believed that abolishing the Agricultural Wages Board would lead to some decrease in the wage agricultural workers are paid, we would not be in favour of it? It will not make any difference at all. The Opposition are keen to emphasise that it will, and they are wrong because they do not understand the countryside. They are driven by a completely different motive.

[Simon Hart]

I think that my hon. Friend is wrong on only one point: he says that the Labour party does not understand, but I think that it understands only too well. It is caught in a difficult position because its union sponsors are saying one thing and its constituents in certain areas are saying another.

[Yasmin Qureshi]

May I just confirm that, as a former barrister, I neither belong to a union, nor am I financed by a union? I am concerned about the working conditions and pay of working people. I will ask the hon. Gentleman the same question I asked the Secretary of State earlier: if after the abolition of the Agricultural Wages Board we find that workers’ wages, accommodation and so on deteriorate, will he reintroduce it?

[Simon Hart]

It might surprise the hon. Lady to learn that I am not a member of the Government and so I am not really in a position to answer that. Of course, I sat through 13 years of Labour disdain for rural Britain, and that question was asked on many occasions. However, I do not want to be reprimanded by the Chair twice in two days for getting off the topic by talking about union sponsorship, so if she will forgive me—

[Mary Creagh]

The hon. Gentleman said that the motion is somehow sponsored by unions. It is nothing of the sort. This debate is about a point of principle—[Interruption.] I am sorry that Government Members are laughing. This debate is about whether people who work in remote, isolated areas, in unseasonable conditions and in one of our most dangerous industries deserve to be paid 2p an hour above the national minimum wage and to have some sort of protection against eviction from their homes.

[Simon Hart]

The hon. Lady will forgive me if I note that pretty much all the electronic traffic we have seen on this debate has been generated by her party’s biggest sponsor. Call me a cynic, but I am not going to accept her comments.

I believe that workers in my area are protected by the minimum wage, employment legislation and a raft of accommodation legislation applying to tied cottages and the like. I do not recognise the image projected by the Labour party of farm workers in tied cottages, and have 28 years’ experience in the industry. I agreed with the Secretary of State when he referred to the noble Lord Falconer’s comment that regional and sectoral pay was a thing of the past. I find it odd that we seem to be disagreeing with that now.

The final abolition of the AWB raises two questions, both of which have been raised before, but since neither has been answered I will ask them again. If the abolition of the AWB exposes young workers, foreign workers or people who are vulnerable, either through poverty or in some other way, in the way the shadow Secretary of State has set out—I know all about the unique aspects of agricultural work—why is it that no other sector in the UK from which a wages board has been removed is suffering from those consequences? Perhaps she could explain—we asked this question earlier but did not get an explanation—why those dangers are apparently unique to agriculture. I will ask her a third time, more in hope than in expectation: would Labour reinstate the AWB if it was lucky enough to form a Government in 2015? It is no good her saying that they have a couple years to come clean about their proposals. I think that this is absolutely the right forum and the right time to make clear the policy as it applies to the AWB of a party that might—I hope not—form a future Government.

--- 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.