Clause 34 - Enforcement officers for agricultural wages legislation

Employment Relations Bill

Public Bill Committees, 24 February 2004, 10:45 am

Question proposed, That the clause stand part of the Bill.

Photo of Mr Henry Bellingham

Mr Henry Bellingham (North West Norfolk, Conservative)

I represent an agricultural and farming constituency, and it has always surprised me that officials from the Department for Environment, Food and Rural Affairs enforce the minimum wage for agricultural workers, rather than officials of the Inland Revenue. I presume that the reasons for that are historical: for instance, the framework of the Agricultural Wages Board was in place. However, would it not make sense to change that, as the Government are keen on streamlining the operations

of Whitehall, and the Inland Revenue has substantial expertise in the field of the enforcement of the minimum wage?

In my constituency and in south Lincolnshire there are many food packing and food processing businesses that are closely linked to the agricultural sector. There might be farms on which the Inland Revenue enforces the minimum wage if there is a plant for packing, potato grading or carrot topping, but DEFRA officials enforce it if people who drive tractors or other types of agricultural equipment are also employed.

It might be a good idea for the Minister's officials to seize this opportunity to try to rationalise the situation. He might talk to his colleagues in DEFRA and explain that it would make sense for everything to be put under the roof of one organisation. That would make things more streamlined and user-friendly for growers and farmers, particularly in places such as East Anglia.

Photo of Mr Gerry Sutcliffe

Mr Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations, Competition and Consumers), Department of Trade and Industry; Bradford South, Labour)

I am grateful to the hon. Gentleman for giving me an opportunity to explain the nature of clause 34. He is right that there is an historical relationship that explains why DEFRA is involved in these provisions for agricultural workers.

Clause 34 amends the Agricultural Wages Act 1948 to give powers to the Secretary of State for Environment, Food and Rural Affairs—and the National Assembly for Wales—to appoint officers from other Departments to enforce the agricultural minimum wage. Section 13 of the National Minimum Wage Act 1998 allows the Secretary of State to appoint officers from other Departments to pursue national minimum wage cases. We appointed officers of the Inland Revenue to act as the enforcement body for the minimum wage. Although DEFRA is the long-standing expert in enforcing the agricultural minimum wage, as a matter of principle it seems sensible to give it the same flexibility as the DTI has under the 1998 Act.

Photo of Mr Henry Bellingham

Mr Henry Bellingham (North West Norfolk, Conservative)

I would be grateful if the Minister could comment on my point. The Gershon report is about rationalising how Whitehall works. A number of suggestions have been made about finding ways to streamline and rationalise how certain types of Government policy are implemented where there is overlap between Departments. Will he talk to his DEFRA colleagues to find out where it might be possible to bring this matter solely under the roof of the Inland Revenue?

Photo of Mr Gerry Sutcliffe

Mr Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations, Competition and Consumers), Department of Trade and Industry; Bradford South, Labour)

I hear what the hon. Gentleman is saying. However, there are many detailed differences between the two systems and the ways in which they are enforced. An additional complicating factor is that agriculture is a devolved matter. DEFRA has been enforcing the agricultural minimum wage, or its nearest equivalent, for more than 50 years. It has expertise in the area. We are always looking at ways to

rationalise and improve the situation, but because of the detailed differences that exist it is appropriate for us to deal with it in this way.

Question put and agreed to.

Clause 34 ordered to stand part of the Bill.

Clause 35 ordered to stand part of the Bill.