Questions Without Notice from the Party Leaders

Part of 1. Questions to the First Minister – in the Senedd at 1:45 pm on 5 June 2018.

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Photo of Carwyn Jones Carwyn Jones Labour 1:45, 5 June 2018

We would encourage, of course, there to be as much sourcing of Welsh steel as possible. She has also raised two other important points in terms of steel tariffs and also the tidal lagoon. I can inform Members that I have written today to Greg Clark and suggested to him that the UK Government should make an offer in terms of the contract for difference to the tidal lagoon on the same terms as they made the offer to Hinkley. If it's right for Hinkley, it's right for Swansea. And she's right to point out that electrification was promised and then reneged on by the UK Government. The tidal lagoon has been talked down by the Secretary of State this morning and by others. Well, we have put money on the table and we have said today, 'Treat the tidal lagoon in the same way as you treated Hinkley.' We ask no more than that, and we believe that it would be possible for the tidal lagoon to move ahead on that basis. We await the UK Government's response with regard to that.

In terms of steel, there are two issues with steel. Firstly, of course, the tariffs that the US has imposed will create a situation where Welsh steel will become more expensive in the US market. What is not clear is whether that would in fact lead to a decrease in demand, given the fact that so much of the steel is not made in the US and has to be bought from outside anyway. Okay, we don't know what the effect of that will be, but of great concern as well is where the steel that was originally bound for the US market will end up. If it comes to Europe, it will create a glut of steel in Europe, the price will drop, and that will not be of benefit to the Welsh steel producers. So, I have said—I was in Washington and met with people there at the end of last week—that it's also important that the European Union now takes prompt steps, within weeks, not within months, to ensure that sufficient safeguards are in place to ensure that the price of steel is supported in Europe.