Tata Steel and ThyssenKrupp

Part of 3. Topical Questions – in the Senedd at 2:53 pm on 4 July 2018.

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Photo of Ken Skates Ken Skates Labour 2:53, 4 July 2018

Can I thank the Member for her questions, and begin by saying that my party here, and in the UK as a whole, couldn't have demonstrated a greater commitment to sustaining steel making in the UK? We've been absolutely determined to influence the UK Government, and to influence the company in terms of long-term investment, and the work that we've invested in this area, I think, has paid dividends, and the announcement demonstrates it.

With the exception of the funding—and the Member rightly points to the support that the Welsh Government has been able to offer to Tata—I can say that, with the exception of funding for skills support, Tata won't be able to draw down funding against these offers until we have agreed the detail of overarching, legally binding conditions, and I would expect all Members to support that. We need to make sure that those conditions apply for several years, and that they are, indeed, legally binding.

Now, in terms of Brexit, we'll continue to work closely and constructively with Tata in terms of planning for the challenges and the opportunities presented by Brexit, but, to date, the Welsh Labour Government has offered £8 million towards an £18 million investment in the power plant at Port Talbot, and we continue to discuss the potential for further investments to increase efficiencies in this area, and I think it's worth reflecting on the important point that the Member makes concerning state aid rules. Well, until the UK has exited the European Union, of course, Welsh Ministers remain bound to comply fully with EU state aid rules, and any support provided to the steel sector must be given in accordance with EU state aid rules. However, post Brexit, whether and to what extent Welsh Ministers would continue to be bound by the EU state aid rules will depend on the terms of the withdrawal agreement that the UK negotiates with the EU. But it's absolutely essential that, during the course of the negotiations that are continuing, the UK Government recognises the importance of steel making to the UK.