It was 3p above—so this protection was not necessary. However, as many of my noble friends and other noble Lords pointed out at that time, the Agricultural Wages Board deals with many levels of remuneration. There are five other levels above the minimum wage. The fact that we have a minimum wage would not deal with that situation at all. In a way, the Government’s whole argument about the minimum wage was a red herring. There was an irony, however, in that the minimum wage and other social legislation that the Government prayed in aid for the vote in Committee were all very much opposed by the Conservative Government prior to 1997. Therefore, that did not comfort those of us who wanted to see proper protection for agricultural workers.
Many noble Lords pointed out that agriculture was in many ways unique. Indeed, that uniqueness was recognised in the fact that, when the other wages boards were abolished, the Agricultural Wages Board was allowed to continue. It was very much a reflection of the fact that agricultural workers may be employed individually or as part of a pair on a farm where they might be quite isolated from other workers in the same industry. A body that they can turn to which represents all agricultural workers is therefore a precious asset that helps to value the work of agricultural workers around the country.
It was also effectively pointed out by a number of noble Lords that many farmers also value the Agricultural Wages Board. Although the National Farmers’ Union in England has officially been in favour of abolishing the board, the NFU in Wales has taken the opposite view. In Scotland, too, there is support for the Agricultural Wages Board and how it operates. I also know that some farmers in England value the assistance that the board can give and feel that it helps them in what is sometimes an otherwise difficult and embarrassing negotiation with an individual worker on their farm. I do not know how widely the Minister has spoken to farmers about this; given the lack of consultation, I imagine very little. However, there is more support among farmers than is generally recognised. That is reinforced by the views from Scotland and Wales.
Concern was expressed, which I repeat today, about the abolition of the board having the effect of driving wages down, particularly in the grades above minimum wage. The noble Lord, Lord Maclennan, asked about this in our earlier debate. Concern was raised by a number of Members about pressure from supermarkets on our farming industry, which is already very strong. It might also have a knock-on effect in driving agricultural wages down. Many Members felt that the best way to deal with that was to go ahead with the introduction of a grocery adjudicator or grocery ombudsman. I know that a number of noble Lords have been pressing for that in recent Questions and debates. We are a little concerned that there is something of a go-slow on this appointment because it would help in terms of the relationship with the supermarkets and would be a much more effective way forward than abolishing the Agricultural Wages Board.
My noble friend Lord Whitty asked whether the Government would do an impact assessment of the effect of the abolition of the legal minimum on wage rates, given that when each of the other wages boards was abolished, rates in the relevant sectors fell. The Minister dismissed that idea, saying that it was not necessary, but I wonder whether the will rethink his policy of not doing any assessment of this kind.
I do not think it would be good for the rural economy if wages went down. The Joseph Rowntree Foundation has already pointed how workers in the countryside need to earn more than those living in urban areas simply to have the same standard of living. The recommendations made in the Rowntree report are important to the debate today. Indeed, in the earlier debate my noble friend Lord Clark mentioned that the Agricultural Wages Board provides a benchmark and yardstick for many other workers in rural areas, so again the knock-on effect ought to be taken very much into account. If the Government succeed in their policy, perhaps the Minister will tell us who is going to monitor what is happening to agricultural wages and whether the Government have any plans to review the policy if, in the light of events, the consequences seem to be harmful to farm workers.
I mentioned that Scotland will retain the Agricultural Wages Board, but I am concerned about the position in Wales. Since our last debate I have looked up the debates that took place in the Welsh Assembly way back in October. The Minister there complained that no proper consultation with the Assembly had taken place, which rather contrasts with what the Minister said a few moments ago about far less controversial bodies having been discussed in depth with Members of the Welsh Assembly. In the exchange that took place in the Assembly on 6 October last, the Minister there said that it was clear that Defra did not intend to devolve any budget to the Assembly, and therefore if it had to reinstate the Agricultural Wages Board only in Wales, it would require considerable work and a funding allocation. I am puzzled about the timing because that debate took place last October and yet the proposal to abolish the Agricultural Wages Board is in the legislation before us today. I should like the Minister to comment on why the Welsh Assembly, under pressure from Defra, felt it had to act so quickly when in fact sanction for the abolition of the Agricultural Wages Board will be given only when this Bill completes its passage through both Houses.
If the situation in Wales is unsatisfactory, it is also unsatisfactory in England. The lack of consultation is something that has to be deplored. Indeed, I believe that the Minister would have managed to get some changes through if he had embarked on such a consultation in England because I think that there was some appetite for simplification of the way the board works, as well as some reform and modernisation while adhering to the belief that the wages board overall does valuable work.
Some changes to be made by this Bill are very welcome, and indeed the noble Lord, Lord Taylor of Holbeach, briefly referred to that a few moments ago. It is therefore sad that on this issue the Government have so far remained stubborn and obdurate. They will not save much money and it does seem to be part of a political agenda—of paying off an old score. For all these reasons, I cannot stress how strongly I hope that the Government will announce a change of heart today. I beg to move.
Public Bodies Bill [HL]
Proceeding contribution from
Baroness Quin
(Labour)
in the House of Lords on Wednesday, 23 March 2011.
It occurred during Debate on bills on Public Bodies Bill [HL].
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726 c749-51 
Session
2010-12
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