Part of the debate – in the Senedd at 4:38 pm on 6 July 2016.
The Member has repeatedly ignored the fact that raw materials imported from abroad are now even more expensive and will stifle growth in this sector. There is no doubt about it; there is no net benefit. There is also, as Members have already pointed out—Bethan Jenkins, Dai Lloyd and others—a tragic Shakespearian irony in what UKIP Members have said today and what they’ve actually done in previous times, where they have today claimed that protective tariffs will be great for the steel industry, but in the past, when they had an opportunity to introduce tariffs that would favour our steel industry, they did precisely the opposite. A cynic might suspect that UKIP in the past have deliberately sabotaged the steel industry in order to make political gain from the uncertainty that it led to.
I think members of the public would rightly suspect any politician who stands up now and says, definitively, ‘This is great’ or ‘This is dire.’ Let’s leave it to the experts. Just in the final few days, UK Steel have published their manifesto, which opens with a pretty clear statement. I quote:
‘The result of the EU Referendum was a blow to the steel industry.’
It’s my belief that Brexit is still not the best course for Britain’s steel industry to be taken on, but I can assure you of this: the people have spoken and, as a Welsh Government, we will do all we can to deliver a secure future. We are working relentlessly to support the sales process and the communities involved, and we will continue to put every resource we have as a Government to that purpose. The First Minister has consistently and directly pressed this message with Tata’s senior leaders in Europe and in Mumbai, as well as at the highest levels of the Westminster Government. We will continue to press this message. Indeed, the deputy permanent secretary, my most senior official, is flying out to the board meeting on Friday to convey in the strongest possible terms our position.
Nevertheless, both the referendum result and the UK Government changes do pose important questions about the future. It is essential that leadership uncertainty at a UK Government level does not impact on their stated commitment to do all they can to secure the future of our steel industry. I do hope that attention at Whitehall on the future of our steel plants here in Wales has not slipped as a result of recent events, will not waver and will not cease. One of our key priorities is keeping the blast furnaces at Port Talbot operating, but, of equal importance is ensuring that Port Talbot continues to be the primary supplier of steel to other Welsh sites, as well as to Hartlepool and to Corby.
Hannah Blythyn raised the important issue of securing all of our steel sites, and I’d like to commend her for the work she has done in representing workers at the Shotton site. Hannah Blythyn also, rightly, pointed to the fact that considerable uncertainty would be caused during the course of negotiating a new framework agreement, which could take a decade or more—uncertainty and, of course, as I’ve said already, anxiety for those employed in the steel industry.
We are waiting for updates from Tata on how it is progressing with the sale process, and we remain ready to support any bidders that will see jobs and sustainable steel production remain in Wales. Our offer of support remains on the table, but we can only consider the detail of any particular proposal when we get to the next stage and have greater clarity about a bidder’s plans. [Interruption.] I’d like to, but I’m sorry.
Whilst Tata is continuing to give the matter due consideration, it is more vital than ever before, as Russell George said and as John Griffiths said, that the UK Government continues to work with us, the steel industry, steel trade unions and other partners to instil confidence that we are all working together to create the right business environment that will support a sustainable steel industry in the United Kingdom. Last month, I attended the UK Government’s steel council. The council has four industry-led working groups that are considering not only how we respond to the current steel crisis, but also how to enable the long-term sustainability of steel making in the future. Of course, we also have our own steel taskforce. I will be chairing future meetings of the taskforce to ensure we keep up the momentum and maintain the positive partnership that is being developed to support workers. And, I would be pleased to update Member in the coming weeks on the progress that has been made.
Work is also advancing well to strengthen our procurement policy, which will clarify the importance of opening up opportunities for UK steel suppliers. There has been progress, too, on the newly established Port Talbot waterfront enterprise zone, which held its first meeting last month. The board will develop its strategy by building on the world-class advanced manufacturing skills and strong manufacturing heritage. It will focus on research and development, innovation-driven entrepreneurship, including opportunities related to the university and Swansea bay city region, as outlined by my friend and colleague, Dai Rees.
Deputy Presiding Officer, we will continue to work with the UK Government, Tata Steel and representatives of the steel industry in Wales and the UK to reiterate that Wales, as a country, is committed to doing all we are able to to ensure a sustainable steel industry. We expect all those we are engaging with to do their utmost to ensure this is achieved. Despite the referendum result, Wales is—and I am determined to keep it—open for business, and I am equally determined to build a bright future for our steel industry, too.