A GOVERNMENT scheme to licence gangmasters could mean temp agencies in Worcester, which operate in the food packing industry, will be faced with huge fees.

The warning comes from Paul Jackman, director of recruitment firm Thorn Baker, which has offices in the city and six more across The Midlands.

The details of the government plans are yet to be finalised, but a worst-case scenario could see agencies supplying temps to the food industry facing mandatory registration fees of up to £32,500. The licence idea was originally intended to combat unethical gangmasters operating teams of agricultural workers, but the scheme could also apply to temp agencies.

Mr Jackman said that although Thorn Barker has signed up to the licence and recognise that unethical gangmasters need to be addressed, the fees seem very unfair.

"At Thorn Baker we recognise that gangmasters working illegally need to be stopped and support any action to tackle this, but the government haven't really thought it through," he added.

"The proposed new licensing system seems very unfair to me and biased against legitimate operators in the sector. In reality with fees at anything like the levels described, labour providers will be deterred from registering, especially the gangmasters who are already operating illegally". Agencies signing up to the scheme could have to pay a flat fee of about £2,100 under proposals set out by the Gangmasters Licensing Auth-ority, which administers the scheme on behalf of Defra.

Other proposals though include a pay scale decided by the size of the business, from £600 for small businesses to £32,500 for companies turning over £5m or more.

Under the new rules it will be against the law to use unlicensed gangmasters also known as labour providers, or agencies and will also mean labour providers will be responsible for the health and safety of workers and will have to agree to comply with existing employment law.