Item 7 is the Agricultural Sector (Wales) Act 2014 (Continuation of Effect) Order 2018. I call on the Cabinet Secretary for Energy, Planning and Rural Affairs to move the motion. Lesley Griffiths.

Motion NDM6700 Julie James

To propose that the National Assembly for Wales, in accordance with Standing Order 27.5:

1. Approves that the draft Agricultural Sector (Wales) Act 2014 (Continuation of Effect) Order 2018 is made in accordance with the draft laid in the Table Office on 5 March 2018.

Motion moved.

Thank you, Deputy Presiding Officer. I laid the Agricultural Sector (Wales) Act 2014 (Continuation of Effect) Order 2018 on 5 March 2018, and I'm presenting the Order today for debate in the National Assembly. The Act contains a sunset clause that states that it will fall if no action is taken to preserve it by 30 July 2018. The Order will preserve the Act, and the Welsh Government's commitment to ensure fair wages and employment terms and conditions for agricultural workers continues to operate in practice.

In the summer of 2017, I consulted on the operation and effect of the Act. The resulting report on the review of the Agricultural Sector (Wales) Act 2014 was laid before the National Assembly on 27 February this year. The report highlighted how the Act has supported rural communities and ensured that workers in the agricultural sector receive fair pay. It also identified how the Act supports my commitment to the long-term viability and success of the agricultural industry in Wales. The Act has enabled fair minimum wage rates to be set for agricultural workers in accordance with their responsibilities and skill sets. The minimum pay rates and allowances safeguard household incomes and support local communities to thrive across Wales. This reflects the importance of the contribution agriculture makes to our economy, environment and rural communities, which is crucial to the further development of a prosperous, resilient and more equal Wales. The Act supports the development of an appropriately skilled agricultural workforce necessary for the long-term viability of agricultural businesses and the wider industry, and important to our rural communities. We also know that sustainable employment is the best route out of poverty.

The agricultural advisory panel for Wales was established under the Act on 1 April 2016. In the short time since establishment, the panel has undertaken a significant amount of work. The first Agricultural Wages (Wales) Order prepared by the panel took effect on 1 April 2017. This was replaced by a new Order on 1 April 2018, which takes account of increases in the national minimum wage. The panel quickly established its statutory skills development and training sub-committee, demonstrating its commitment to helping to improve the long-term future of the industry. The panel, along with its sub-committee, is investigating the provision of professional development, and has commissioned research on the labour market to identify priority areas in need of improvement. This was commissioned in partnership with the food and drink Wales industry board to ensure there is consideration of the whole food and drink supply chain and to achieve economies of scale. The findings of the research are expected later this month.

Retaining the agricultural minimum wage regime in Wales and implementing the Act provide benefits for the whole sector and rural economies. It underpins the Welsh Government's vision of a modern, professional and profitable agricultural industry, and this Order will ensure these benefits continue. Thank you.

May I say at the outset that Plaid Cymru will be supporting this Order today to keep the legislation in effect? The reason we’re discussing this today is that there is a sunset clause in the original legislation. The reason there was a sunset clause was because it was passed as emergency legislation—we just had experience before Easter of that. It’s slightly ironic in this context because it took 18 months after passing emergency legislation to establish the board that there was such urgency in terms of its requirement. However, having been established, the board, as the Cabinet Secretary has said, has outlined many of the important things underpinning salaries in the agricultural sector.

I think there are three reasons why we should support the continuation of this legislation. First of all, if we gave up the legislation today, we couldn’t return to this legislation in the future, because the Wales Act has changed the situation and we would no longer have the right to legislate in this area. That’s not any reason to hold on to powers over centuries, or we’d still be voting on prohibiting drinking on Sundays if we stuck to that sort of argument, but it is an argument for us to consider as an Assembly, not to give up the powers that we currently hold.

The second reason, of course, is that although the board is operational and although we do have an agricultural sector supported by this legislation, the level of salaries is still lower than the average salary through other sectors in Wales. So there is work to be done in enhancing skills, raising salaries and raising the level of awareness and information within the sector. So, obviously, there is ongoing work to be done in this context.

The third reason, and the final reason, of course, is the fact that this sector is facing one of the greatest challenges imaginable over the next year or two, and that is exiting the European Union. We don’t know, if we’re entirely honest, whether this legislation will be of great benefit as we exit the European Union, but what we do feel strongly is that we shouldn’t add to that process of change within the sector as it faces so many changes and the challenges on the horizon. Therefore, I am in favour of retaining as much consistency as possible within the sector, and that is something that the sector has become well used to, in terms of ensuring that the interventions that will happen as a result of Brexit are kept to a minimum.

There is one aspect of this, however, which does strike me as being a weakness within Government and more generally: the information that we have available about Wales—about the impact of salaries in the agricultural sector, on the comparison between the agricultural sector in Wales and that in England, and the comparisons on a cross-sectoral basis too. What’s described in the papers published by the Government does highlight this lack of information. In supporting the continuation of this legislation, I would ask the Cabinet Secretary whether it would be possible for her to tell us what she has in train in order to improve the way that we gather information and to gather evidence as to how effective this legislation is and how effective the work of the board is too.

Thank you. Can I call the Cabinet Secretary to reply to that debate?

Thank you very much, Deputy Presiding Officer, and to Simon Thomas for his comments, and I'm grateful for Plaid Cymru's support. I think you raised some very pertinent points. Certainly, I mentioned that the group was looking at research into professional development and raising skills and I think it's very important that we continue to do that and I'll be very happy to publish the information when I get it later this month or next month, if I think that Members would wish to see it. 

You're quite right, at this current time, we are facing a great deal of uncertainty around Brexit, so I do think it's good that we don't add to any more of those challenges that we face. With regard to your last point, I do recognise that—obviously the current regime has not been in place long enough, I think, for us to properly assess the impact it's having, but I think it's something that we need to look at. I would think that we would need a policy review of it, maybe within the next couple of years, to ensure that it is fit for purpose. 

So, with the Assembly's approval, Deputy Presiding Officer, the Agricultural Sector (Wales) Act 2014 (Continuation of Effect) Order 2018 will come into force tomorrow.

Thank you very much. The proposal is to agree the motion. Does any Member object? No. Therefore, in accordance with Stranding Order 12.36, that motion is agreed.

Motion agreed in accordance with Standing Order 12.36.