4. 4. Statement: Tata Steel

Part of the debate – in the Senedd at 3:57 pm on 8 June 2016.

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Photo of Bethan Sayed Bethan Sayed Plaid Cymru 3:57, 8 June 2016

I’m grateful to the First Minister for bringing this statement and I agree with some of the comments that have been raised here today, although I would like to say, in relation to the dumping of steel, the UK Government has already previously refused higher measures on the dumping of steel, and so, if we did come out of the European Union, you would expect opposition on that level. So, I can’t understand the rationale that is being brought to the debate today in terms of the UK Government somehow being more supportive of putting higher tariffs on Chinese steel.

Particularly concerning to me is the precedent the UK Government could be setting with the pension fund, as has been mentioned earlier. The moral hazard argument is one that was well rehearsed with Ministers and their officials while dealing with ASW and Visteon cases, all to no avail—our warnings fell on deaf ears in Whitehall.

But, I just wanted to focus briefly on the internal dynamics at Tata as reported by steelworkers to myself. Has the First Minister heard that officials from Tata Europe attended a town hall meeting in Port Talbot in the past fortnight, at which they got up and severely criticised the workforce, causing the trade union delegation to get up and walk out? This seems to be the latest concern surrounding Tata Europe leadership and its conduct before and during this period.

You’ll know it was largely comprised of the Hoogovens management—the company that was effectively saved from bankruptcy through the Corus merger with British Steel. Since Tata brought Corus, steelworkers say the IJmuiden plant has received the bulk of investment, including the same kind of investment that Plaid Cymru have mooted in relation to a new power plant, predominantly because of the Dutch management and the influence that they have. Is that something that you have heard, First Minister?

Also, it’s been claimed that Port Talbot’s financial position was effectively made to look worse than it was, because the cost of materials bound for both steelmaking sites were booked solely for Port Talbot. So, I heard of one example of a shipment of iron ore that stopped off in Wales first before going to the Netherlands, with the entire cost borne by the Port Talbot site. Is that something that you’ve heard about, First Minister?

Then, of course, my question comes to the order book. As far as we know, this has been centralised in the Netherlands. This is considerably worrying to my constituents who see it as an opportunity for Tata Europe to pick off the best contracts even though, as I hear, they are not capable of fulfilling some of them, leaving Port Talbot and the rest of the UK operation to fail. So, I would like to know whether the Welsh Government has enquired as to the whereabouts of the order book and questioned the rationale for moving it to the Netherlands, and whether efforts have been made by yourself or your officials to repatriate the order book ahead of any potential sale. Do we have reassurances from the company that it is happy to open its books to potential buyers for the diligence phase of any sale? I think these are questions that need answering, for the workforce especially, who have raised those points with me, but also for the wider steel industry here in the UK.