8. What action is the Welsh Government taking to protect and support the steel industry in Wales? OAQ52284

We remain fully committed to supporting steel making in Wales and to ensuring a secure and sustainable future for the sector. We're working hard, of course, with Tata. If I could read to the Member the joint statement that we sent out last week with Tata Steel, which says:

We're working closely and constructively together to finalise the substantial public investment in the power plant at Port Talbot, which will reduce energy costs and cut carbon emissions. We remain fully committed to a secure and sustainable future for steel making at Port Talbot and this investment will play a significant part in this. We look forward to announcing the final go-ahead for the project and drawdown of funding in the near future.

That builds on, course, the substantial help that we've given to steel making in Wales, and rightly so, because we know how important steel making is to our economy.

Thank you, First Minister, for that answer and pre-empting my question, to an extent. But the sanction that has been imposed by the US on UK steel is going to have a major impact upon Port Talbot steel and steel products from elsewhere in Wales. Steel companies will look elsewhere, to other markets, which you've you already highlighted, to sell their steel and, therefore, the price of steel is likely to go down. This affects the profitability of steel, therefore, we need to address these matters, and you've already, thankfully, commented upon the leaked report that was mentioned in the press a couple of weeks ago about the £30 million investment in Tata for the power plant, so I can leave that one.

But you also, in your response to Caroline Jones, mentioned the actions that need to be taken to address the steel tariff issues. What are you doing as a Government to actually push those? Because it's important that we get this message across to the UK Government, and elsewhere, to ensure that actions are taken to protect our steel industry and the profitability of our steel industry. Otherwise, we will see damage done to our industry here. 

Can I thank the Member for his question, and the many questions he's asked on behalf of his constituents, and rightly so? He asks what I have done. I was in Washington last week. I had several meetings there, including meetings with British embassy staff. We worked through what needed to be done next. It's not clear, because the US Government can be unpredictable, if I can put it that way. It's been made clear many, many times to the US that, actually, steel from Wales and steel from the UK does not pose a threat to the American steel industry. Many of the products that we export to the States are not made in the States. All that will happen is the price will go up for the American consumer. What we are not clear about is what effect there will be in terms of tariffs. I know in Trostre, for example, that exports to the US are a very profitable part of that business, and it's not clear, actually, whether Trostre will still be able to continue to sell to the US, if only for the fact the US doesn't produce what Trostre produces. But, as I said earlier on, what's hugely important is that we don't see steel that was previously bound for the US market ending up in the European market, causing a drop in the price of steel. That inevitably would not help in terms of the long-term sustainability of our industry.

Yes, First Minister, I think, when it comes to the threat of the US tariffs, all UK Governments need to be working together and speaking with one voice on this and actually improving efforts, not least in getting these city deal moneys flowing, because, obviously, part of that, for the Swansea bay city deal, is the steel innovation centre. I take some reassurance from your comments on the power station. I think we were all slightly confused by the comment that the decision would not be made on that until after you'd left as First Minister, so perhaps you can reassure us that this money from last year's budget will be released as soon as possible. If you can give us a date for that, rather than 'we are working together', I think all Tata workers would be far more reassured.

Nothing is on hold while I am the First Minister. As the Member can well imagine, I'm very keen to take decisions that help the people of Wales as quickly as possible. That is something that we intend to do once we're in a position to do so. With regard to Port Talbot, we ask people to judge us on what we've already done: the money that we've committed, the close working that we have had as a Government with Tata—not just in the UK but also in Mumbai as well. And she will have heard the joint statement that I read out in the Chamber that was made by both ourselves as a Government and by Tata.

It was on the power plant that I wanted to ask further because, of course, I met with Tata and they said that they've obviously completed phase 1, but they've got three other stages to complete with regard to the replacement of the power plant, and we're talking here about US steel tariffs. Surely investment now is critical in the power plant in Port Talbot to ensure that we mitigate against any of the worst effects coming from those tariffs. So, I understand from their briefing that the heads of terms for the grant funding have not yet been agreed between you. Can you give us assurances that you will make that decision as soon as possible and that you will give us a clear outline as to when that decision will be made, so that progress can be put forward in Port Talbot on this particular scheme?

The clear answer to that is 'yes'. Of course we want to make the decision as quickly as possible. Tata understand that as well, and she will have heard what was said as part of the joint statement that was issued between ourselves and Tata. I'm looking forward, of course, to the announcement when that can be done, and the drawing down of funding. Tata know that they have experienced a level of support, both financially and morally, from the Welsh Government. The situation is one of trust, and we want to make sure, of course, that we can make this announcement as quickly as possible.

Thank you, First Minister.