National Minimum Wage (Hansard, 19 February 1998)

§ 5. Mr. Hammond
What representations he has made to the President of the Board of Trade with regard to the minimum wage. [28749]

§ Mr. Morley
As is the case with the formulation of Government policies, the national minimum wage has been the subject of internal discussions between Ministers.

§ Mr. Hammond
Is the Minister aware of the National Farmers Union estimate that a minimum wage, 1170 if introduced at half male median male earnings, would add about £250 million per annum to the costs of agriculture, and that those costs would fall disproportionately on the sectors that employ a large number of casual workers? What studies has he commissioned to assess the impact on agriculture of the minimum wage, and in particular employment in, and survival of, horticultural businesses?

§ Mr. Morley
The rate for the minimum wage has not yet been set, so the hon. Gentleman's comments are pure speculation. The NFU sided with the Labour party when the previous Government tried to abolish the only minimum wage board left—the agricultural wages board.

§ Mr. Hanson
Does my hon. Friend agree that the Labour party, the trade unions and the NFU all supported the retention of the agricultural wages board because they recognised that there needed to be a minimum below which wages would not fall, and that, contrary to the assertions of Opposition Members, that is also the policy of the Government?

§ Mr. Morley
My hon. Friend is absolutely right. The agricultural wages board sets a benchmark that goes far beyond the agriculture sector and is important within the whole rural economy. That is why it was supported by rural interests and the Labour party, and was opposed by the Conservative party.

§ Mr. Livsey
From the latest farm management survey figures for Wales I have calculated that, on the basis of a 40-hour week, farmers earn £2.50 an hour? In his discussions with the President of the Board of Trade, will he take that into consideration, as clearly farmers will not be able to afford to employ anybody.

§ Mr. Morley
We have already taken into account the pressure on farmers in Wales and, indeed, in other sectors. That is why my hon. Friend the Minister of State recently announced a package of £85 million-worth of extra aid, which is targeted at the most vulnerable groups.