My Lords, I was a member of the Low Pay Commission when it was first established, although I did not have the pleasure of serving under my noble friend Lord Myners. We set the first statutory national minimum wage, which was applied to thousands of farm workers who were not covered by the Agricultural Wages Board. It did not render the AWB irrelevant, because the AWB dealt, and deals, with a wide range of other issues relating to the grading structure, pay above the grade 1 level, training, and other important terms and conditions.
Although I am aware that abolition has the support of the supermarkets, the horticultural industry and, regrettably, the NFU, I believe that the country will suffer and that we will come to regret this move if it is carried out. We know about the sorry process, so I will not repeat it. May I ask whether the proposal has the support of the Welsh Assembly Government? Will similar measures follow in Northern Ireland and in Scotland? In other words, have they been asked for their view in Northern Ireland and in Scotland?
The proposal will have a detrimental effect on most agricultural workers. Recruitment is already difficult, and the Agricultural Wages Board has been particularly strong on building a career structure for farm workers, strongly supported by the NFU, I should say. Farms with between one and four employees will find it impossible to resist the relentless pressure on pricing, and I have to disagree with my noble friend who has just spoken; the pricing issue will bring enormous pressures to bear on bringing down the cost in many farms. Their standard of living is already comparatively low, and the wages board was to an extent protection against that downward pressure. Small farms will also have to carry out their own negotiations on pay. That might be perfectly possible—of course, they are not stupid; I would not dream of saying that they are— but it is an extra bit of work on top of a heavy workload.
The most recent impact assessment has revealed a much greater detrimental impact than the first one, and I ask the Minister why there is that difference between the two impact statements. Does he have any assessment of how many small farms will go to the wall as a result of abolition? We know what will
happen in horticulture; the staff will all be temporary, all immigrants, and all on grade 1, which is the equivalent of the statutory national minimum wage. To rely just on the minimum wage and the working time directive is to throw out the baby with the bath water. That is not to say that the board itself does not recognise the need for change and the need to give its constitution more flexibility. It has said so itself.
If I were still chair of ACAS and were asked what I would do to replace it, I would have supported the idea of a joint industry council with an independent chair and a conciliation and arbitration mechanism where there is a failure to agree. The parties involved in the AWB have already called for this. The Minister in the other place has called for salaries and not just wages to be paid, something to which the noble Earl, Lord Cathcart, referred. Again, this could be done without abolishing the board. It seems to me that the Government are hell-bent on abolition. Presumably if they do not get their way in this Bill, they will begin again in another Bill whose subject matter overlaps with half a dozen other Bills, which seems to be the coalition Government’s theme.
As the Minister knows, a lot of overtime is worked in the industry. At present, that is paid at the rate of time and a half. I thought it was 39.5 hours, but somebody said 39 hours, and I stand to be corrected. This will be in jeopardy, and workers may face an 80- to 90-hour week in an industry which is the second most dangerous after the construction industry. The workers might put themselves at risk simply to make up for lost income in order to feed their families. Have the Government assessed the impact on health and safety if pay levels fall and excessive overtime is worked?
The Minister in the other place, David Heath, has recognised the skills shortages and the importance of “rewarding well paid careers”. Amen to that, but the future of farming must take account of the needs of small farmers, not just agribusiness, if we are to protect our food supply for our country. Have the Government given up on small farmers? The industry is a special case because it enjoys a £3.4 billion taxpayer subsidy. In 2011, these payments accounted for around 60% of total farm incomes, so they are practically in the public sector. Farmers and farm workers are special because they help to feed the nation. I ask the Minister: if he succeeds in abolishing the Agricultural Wages Board, which will be a sad day for this country, what will he put in its place?