9. Urgent Question: Tata Steel

Part of the debate – in the Senedd at 6:11 pm on 7 December 2016.

Alert me about debates like this

Photo of David Rees David Rees Labour 6:11, 7 December 2016

Can I join you in welcoming this news today? Because, having spoken to the unions this afternoon, it’s clear that there are still some serious concerns amongst the unions regarding some of these proposals, particularly in relation to the pension scheme and the longer term aspects, but do you also agree with me now that this has to be supported by Welsh Government and UK Government investment? You’ve already indicated, I think—you just said, I heard—that you’re going to make some announcements, perhaps, towards that end. Will you also talk to Cabinet colleagues in Westminster to ensure they now honour some of their commitments of support for the steel industry? Tata’s announcement itself asked for support for the steel industry on some of the aspects. We need that for longer term investment.

When you, hopefully, will meet with Ratan Tata—I did call for you to do that earlier—I think it’s also important for you to get him to actually give an undertaking personally to the steel industry here in the UK, because Adam Price is quite right in what he said: there’s a lack of confidence in Tata’s commitments because of the last 12 months, and that has strained the relationship between the employees and the company. It is now important that that confidence is returned and, perhaps, personal commitments from Ratan Tata might help that process. I think it’s important we get that so that the commitments that have been made for five years, we have confidence they will be delivered, and that the 10-year, £1 billion investment is therefore likely to ensure that those commitments to the works will go ahead in the longer term.

Can you also tell me what discussions you might be having now with ThyssenKrupp to look at the merger proposals? We know from the previous reports about their consolidation considerations. This is a plan for five years; what’s their position in relation to the next five years? Will there also be an honouring of the Dutch commitments if a merger takes place? I think we need that.

I welcome the skills, because efficiency and productivity are the way forward, but we also need to look at how we get the markets and the procurement undertaken so we can get the competitiveness in delivering and actually selling the steel. So, will you also look at ways in which the Welsh Government can look at procurement to again ensure that the steel that is produced in Wales can be used in Wales whenever possible, and if not in Wales, discuss with your colleagues in Westminster that it’s used in England, Scotland and Ireland, so that we can get the best for our steel industry?

Cabinet Secretary, this announcement has lifted, to an extent—I use the words ‘to an extent’—the darkness away from many steelworkers and their families. They’ve been living through hell for the last 12 months, there’s no doubt about that. The communities around them have tried to support them, but there has been uncertainty, and that support, therefore, has been limited because of that uncertainty. What they want now and what we want now is certainty. I hope that this actual statement starts that process of certainty.