HC Deb 04 February 1988 vol 126 cc1146-7
8. Mr. Pike

To ask the Minister of Agriculture, Fisheries and Food what representations he has received about the effects of the introduction of the community charge on farmers and farm workers.

Mr. Donald Thompson

I have received a number of representations about the effects on farmers and farm workers of the proposed introduction of the community charge.

Mr. Pike

Is it not true that many farm workers who are poorly paid have their rates paid for them with the provision of the property in which they live? Once they have to pay the new poll tax, will they not be heavily penalised? If the farmers pay it for them, will not the farm workers have to pay income tax on that payment?

Mr. Thompson

The National Farmers Union and the farm workers' unions are seeking clarification from the Inland Revenue on that precise point.

Mr. Barry Field

Does my hon. Friend share the surprise of many Conservative Members to hear Opposition Members criticising the community charge, when their policy is to rate agricultural property, which would put up food prices and devastate farm incomes?

Mr. Thompson

My hon. Friend is correct. Agriculture receives about £450 million by not being rated. That increases every year as some authorities, such as my own, put rates up by 40 per cent.

Mr. Wilson

Does the Minister accept that rural depopulation will be significantly increased if the poll tax is imposed on agricultural workers without full compensation being taken into account in agricultural wages board settlements? Does he also accept that it is an absurdity that the poorest farm labourer, on a wage counted in tens rather than hundreds of pounds, will pay exactly the same poll tax as the richest landowner and the wealthiest farmer?

Mr. Thompson

I do not accept the last part of the hon. Gentleman's question. If the poll tax— the community charge — [HON. MEMBERS: "The poll tax."] If the community charge — [Interruption.] My right hon. Friend the Prime Minister will be here in a minute, and Opposition Members can tell her that.

If and when the community charge is introduced, moving will make little difference, because the charge will be equal and level throughout the country.

Mr. Bill Walker

Is my hon. Friend aware that I represent a constituency of 2,000 square miles, most of them agricultural? Is he further aware that the chairman of my constituency party is a farmer and that he and other farmers have examined carefully the effect of the community charge on their workers? They have calculated that it will be a matter of swings and roundabouts. What workers are being paid now in the way of rates will be offset in their pay. Farmers will end up paying no more, and the workers will be no worse and no better off.

Mr. Thompson

I thank my hon. Friend for those words. Every aspect is considered when a farmer discusses wages with his men. The community charge will be part of that.