It is a pleasure to follow the hon. Member for Stroud (Dr Drew). I congratulate my hon. Friend the Member for Angus (Kirstene Hair) on securing the debate and on putting the case for farmers in Angus so passionately.
In my constituency of Chichester, we are home to a fresh food industry that has an annual turnover in excess of £1 billion and employs 9,000 people full time. This industry has thrived for several reasons, not least because, apparently, we are the brightest part of the UK, with our sunny climate and coastal proximity, which magnifies the brightness by up to 10%. This makes Chichester a great place to grow fruit and veg.
The growers in my area can only continue to grow, in every sense of the word, if they have the workforce to harvest their crops. According to the chairman of the West Sussex Growers Association, the impacts of Brexit, or the EU referendum, are already being felt. Investment locally has been held back by many growers, as they are awaiting the outcome of the negotiations. I am aware that some of their costs for raw materials have increased by up to 20% owing to the falling value of the pound on the international markets. On the flipside, our currency devaluation has made our home-grown crops more competitive, so, for some, sales are up.
Seasonal migrant labour within the growing industry has been part of its history since the post-war period. The work that it does is often physically exerting and repetitive, but it is skilled. I can personally attest to that as I have had the opportunity to pick peppers at Tangmere Airfield Nurseries, where they supply 50% of all the UK grown peppers sold in supermarkets nationwide.
Many growers are struggling to maintain the levels of labour needed. The NFU industry survey identified a shortage of 13% across the 2017 season, peaking in September at 29%, and a fifth of businesses said that last year had been the hardest recruitment year compared with any previous years. Furthermore, growers in my area claim that recruiting more skilled employees who are fluent in English has recently been much harder. They have attributed that to the lower value of the pound, which has meant that seasonal workers can earn just as much, or more, in other European countries, and we are competing for that talent. As a consequence, 73% of UK industry employers are taking steps to encourage seasonal recruitment, with wages up by 9% in 2017 over the previous year.
The rural industries have generally made efficiencies and increased productivity by using advanced robotics to move rows and rows of pots through giant glasshouses from seed, to germination, to packaging. As an industry, the utilisation of technology is key, and growers and farmers in my constituency have invested heavily in that area. However, there is still a point at which people are needed, most commonly during the picking stage.
In Chichester, the industry is keen to upskill and train its employees, and has begun to implement training schemes using the apprenticeship levy. In the coming weeks, several growers are meeting representatives from further education colleges to see how they can collaborate on apprenticeship schemes using the levy and have more home-grown resource.
On my visit to Tangmere, I met a former packhouse worker from Poland, who now runs the whole warehouse operation. As in any industry, hard work and talent are rewarded with promotion. For example, the entire management team at Hall Hunter, a local producer of soft fruits in my constituency, is from Bulgaria.
Since the referendum, immigration control has been discussed by people in the industry at length. Owing to the short-term nature and skill level of the majority of the work, we need to create a migration tool to ensure that our rural industries are able to attract and recruit the people they need. Many, including the NFU, are calling for the reintroduction of the seasonal agricultural workforce scheme—known as SAWS—which could be an appropriate mechanism to ensure labour security for the sector while maintaining control of our immigration system.
Whatever system we put in place, it must facilitate seasonal workers to come to this country to fulfil the needs of the sector. The system needs to be as frictionless as possible, allowing for remote application and high levels of automation, and ensuring that there are as few barriers as possible to bringing in the much-needed labour. Flexibility is required to take into account crops with longer harvest seasons or career progression for those skilled workers who are offered it.
Although the rural industries are concerned about workers as we leave the EU, they also see opportunities as a consequence. Many are hopeful about access to international markets where we can sell our quality produce. Others feel that there may be opportunities to expand our market share domestically as some crops are undergrown in the UK, including tomatoes, of which a massive 80% are imported, despite having the perfect growing conditions in Chichester.
We must do what we can to make sure that we have a suitable mechanism in place to support the growing industry, ensuring that it has the right workforce it needs when it is needed. If we can get this right, I am confident that this industry will continue to thrive in my constituency and across the UK.