5. 4. UKIP Wales Debate: The Impact of the EU Referendum on Tata Steel

Part of the debate – in the Senedd at 4:06 pm on 6 July 2016.

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Photo of Russell George Russell George Conservative 4:06, 6 July 2016

Thank you, Deputy Presiding Officer. I’d like to move the Welsh Conservative amendment in the name of Paul Davies. Now, the Welsh Conservatives and I welcome this debate on the future of the steel industry in Wales. Welsh steel production is of course of vital importance to the Welsh economy, to workers and their families, and to those communities that rely on steel making.

We will not be supporting the proposed motion without amendment as we don’t believe that the motion adequately reflects the complexity and uncertainty of the difficult situation facing steel communities across Wales. The steel industry across the UK and Europe is facing very challenging economic conditions with a global collapse in demand for steel and there is a major over-production going on across the world. This is a truly global issue and as such I believe that the situation facing Tata in Wales cannot be seen in isolation of a Brexit vote.

I acknowledge the fact that the result of the EU referendum means that it is all the more important for the UK Government to work with the Welsh Government to secure a strong future for steel making in Wales. The EU, of course, remains the most important market for steel, with over half of our exports going to the EU and more than two thirds of our imports coming from the EU. In that context, we are therefore happy to support the Government’s amendment in the name of Jane Hutt and amendment 4 in the name of Simon Thomas. I should say we also support the wording in amendment 1, in the name of Simon Thomas, but we can’t support that amendment in voting as it would delete, of course—our amendments would fall.

I suspect that all Members in this Chamber, Senedd, Parliament, recognise the importance of Welsh steel to our nation’s economic well-being and I’m pleased, to date, that there has been a significant amount of cross-party consensus to support our steel industry. Therefore, in the spirit of co-operation I was very keen that the Welsh Conservatives’ amendments were uncontentious, and I hope that Members will agree with that. I’m disappointed that UKIP can’t support our amendments in that spirit. But, you know, the steelworks play an important part in the Welsh economy and it’s important that the UK and Welsh Governments continue to work together to maximise the viability and the potential of Welsh steel production into the future.

Tata Steel contributes £200 million in wages to the Welsh economy and a further £3.2 billion in total economic impact to Wales as a whole—that’s according to the Members’ research brief that I read. It also employs 4,000 people at Port Talbot with many more, of course, in the region reliant on the steel industry for their livelihoods. We therefore believe it’s essential that the Welsh and UK Governments continue to work closely together to devise a strategy to help Tata secure a credible buyer for the steelworks that offers the best possible opportunities for future economic growth and safeguards jobs and the Welsh steelworkers.

I think, as well, that it’s critical that this strategy isn’t a knee-jerk approach, such as those calling for nationalisation, but is rather a long-term plan to secure the future of the Welsh steel industry within the private sector. We therefore support amendment 6, in the name of Simon Thomas, which looks to the Welsh and UK Governments to provide additional funding if that’s necessary. Of course, the UK Government has already taken action to create a competitive environment for steel making in Wales by providing a package of support worth hundreds of millions. Also, the Welsh Government has created a package for those threatened with redundancy, and the UK Government has also taken action on the high energy costs.

Other measures to offset the burden of high energy on steel manufacturing would also be welcome, and I am therefore interested in considering Plaid’s amendments and details in amendment 5 for a new renewable energy plant and further reducing energy costs, and how a new steel research and development centre would fit into Treasury support for an enterprise zone for Port Talbot. I also want to, myself, encourage the UK and Welsh Governments to work together with other nations—not just in Europe, but around the world—to secure the best possible trade agreements for the Welsh steel industry. In the light of the Brexit vote, there does remain a great deal of uncertainty—that’s got to be recognised—of how future trade deals will be formulated. That’s uncertain yet, and it is, of course, essential that future trade agreements are arranged with other nations and they don’t ignore the importance of the steel industry.

Now, I would say—