Item 6 on our agenda this afternoon is the Member debate under Standing Order 11.21(iv) on the steel industry, and I call on David Rees to move the motion. David. 

Motion NDM6950 David Rees, John Griffiths, Bethan Sayed, Russell George, Suzy Davies, Jayne Bryant, Huw Irranca-Davies, Caroline Jones

Supported by Alun Davies, Dawn Bowden, Jack Sargeant, Mike Hedges, Vikki Howells

To propose that the National Assembly for Wales:

1. Welcomes the investments made by the Welsh Government to support a sustainable future for the steel industry in Wales in recent years.

2. Recognises the challenges facing the Welsh steel industry following the UK's departure from the EU.

3. Calls on the Welsh Government to continue supporting the Welsh steel sector which is a key industry for the Welsh economy.

4. Calls on the UK Government to address the high costs of energy facing the steel sector in the UK in comparison to electricity costs in the EU.

Motion moved.

Diolch, Dirprwy Lywydd. I move the motion in my name. As Members are aware, the steelworks in Port Talbot is the beating heart of my constituency, my home town, and the blast furnaces breathe the fire that comes from this Welsh dragon. To be honest, I cannot imagine the skyline of Port Talbot without those blast furnaces as part of it. I've never known it to be anything else. So, steel is part of my DNA and is very close to my heart.

Dirprwy Lywydd, it only feels like yesterday that we were debating the future of the steel industry in Wales here in this Chamber—and, I remember, in the Chamber in Tŷ Hywel, when we were recalled—but it's almost three years since the industry was in that critical position. Tata was up for sale, looking at the closure of the Port Talbot works, and the global markets were hitting the steel producers—all of them—hard. And today, I'm pleased to say the industry is in a better position. We must praise the actions of the Welsh Government to get to this point. We've also seen Tata investing in their plants, including Port Talbot. Only today they've had an announcement from the local council in Neath Port Talbot of the approval for plans to reduce dust emissions in the plant. More investment going into the works at Port Talbot. But it also looks to upskill and build the workforce as well, including a vibrant apprenticeships programme in that works—a clear sign that Tata have confidence in the future of our steelworks. The steel industry in Wales, not only in Port Talbot, is a vital part of the Welsh economy and we must protect it.

However, whilst we had hoped that the future of steel making was assured following the actions of the sector and the Welsh Government, we now face up to more challenging times. The high energy costs continue to present difficult economic challenges within the industry, and now the uncertainty of Brexit is making those challenges bigger and deeper. It is critical that at this time all parties work together to secure the future of steel as it once again hits uncertain times, ensuring that we safeguard the local economies of Port Talbot, Llanelli, Cardiff, Newport and Shotton, let alone protecting our industrial skylines.

During the recent difficult times that our steel communities have experienced, the Welsh Labour Government's focus has been on securing a successful and sustainable future for the steel industry in Wales, one that targets the retention of steel production and jobs. They've invested in all three major steel makers, provided support for research and development, given a commitment to decarbonisation, and continued support for employees. The Welsh Labour Government has demonstrated that they will not abandon the steel industry here in Wales.

However, the challenges being posed to the sector by Brexit and high energy costs cannot be resolved by the Welsh Government. It is now time that a commitment from the UK Government is given to steel producers and their employees. They want assurances that the steel industry will not be forgotten during Brexit and the UK Government will finally deliver on the promises of tackling the disparity on energy costs between the UK and the EU. These are the areas I will concentrate on today, but I'm sure there will be more. Otherwise, I'll be here all afternoon. I don't intend to, Dirprwy Lywydd. 

Just two weeks ago, steel producers and trade union reps attended the steel cross-party group here in the Assembly, which I chair. In that meeting, we heard damning evidence from the sector about the disadvantages they face on a daily basis when it comes to energy costs. This was further compounded this week by UK Steel's annual report on energy costs here in the UK compared to France and Germany. In 2017, the Tory manifesto committed the Westminster Government to seek delivery of the lowest energy costs in Europe for both domestic and industrial consumers. Two years later, the industry is still waiting. In 2018, the same Tory Government released its industrial strategy, which once again promised to make the UK the best place to start and grow a business, yet steel was a byline in that document. 

There has been some action since then on energy efficiency. However, no amount of energy efficiency improvement will counteract having to pay 50 per cent to 100 per cent more for your electricity than your competitors. At our CPG, we were told that energy costs in the UK are 110 per cent higher than France and 55 per cent higher than Germany. There are worries that this is going to get worse, not better. Support at £65 per MWh was needed to close today's gap, let alone what may happen in the future. 

We have argued for many years that all our steelworkers are asking for is a level playing field, to make them competitive in a global marketplace. Our steelworkers, in my view, are the best in the world, and their commitment to the industry over recent years shows that they can play their part. But they need the UK Government to step up to the plate now. They want the UK Government to actually respond to UK Steel's report on energy costs. That outlines nine measures for the UK Government to implement immediately in order to give the industry a fighting chance in the changing global economy.

To give the UK Government incentive to take action, the UK's five largest steel producers made a firm and direct commitment that all savings on electricity costs would be put back into the industry in the UK, thus delivering cost parity with Germany, which would deliver a £55 million a year investment over and above business as usual. This represents a 30 per cent increase. With this commitment from the steel sector, to me, it's a no-brainer that the UK Government should join in. Such funding would provide vital research and development funding for the industry in years ahead, particularly as we will see the loss of around £40 million a year from the coal and steel research grant administered by the EU, which, as I mentioned last week, will be paid back to the UK Government's Treasury. This money was paid into the EU by the steel and coal industry and is money that they are entitled to and should have full access to, yet the UK Government has refused to ring-fence this for those industries. Research and development is vital as we move ahead to ensure that we stay ahead of global competitors. In the UK, we have seen fantastic research and development initiatives going ahead, particularly here in Wales, and I'm sure colleagues may want to mention some of that, especially as it's in my constituency. Now, I find this absolutely appalling. I want to continue to fight alongside the industry to ensure that this money—money that is actually from the industry itself—is going back to the industry. It belongs there, it should stay there post Brexit. I'm sorry, Dirprwy Lywydd—it does lead me on to the B word. I hoped to get away with it this week, but there we are.

On Monday, UK Steel published its report, 'Implications of a No-Deal Brexit for UK Steel Companies'—genuine fears of a 'no deal' Brexit. And I appreciate that we're not there yet, but it's looking more likely. In that report, they identified seven key areas that would be impacted upon to different levels as a result of Brexit: movement of goods, EU tariffs, free trade agreements and non-EU tariffs, rules of origin—which sometimes we forget about—trade remedies, safeguards and research and development. I'm not going to discuss all of those in this contribution, but I'll just focus on three, which are some blatant and obvious ones: movement of goods, rules of origin and safeguards. And they'll have a direct impact on the steel industry in my constituency in Port Talbot, because 30 per cent of the steel from Port Talbot goes to the automotive industry, 80 per cent of that being UK based, which sounds positive—here it is in the UK, so we don't have to worry about it—but when you put the fact that those cars are exported to the EU, and those cars will be subject to tariffs, then you can see the impact. We saw only this weekend the decision of Nissan to reduce or remove the X-Trail production here, Nissan being a possible client of Tata. I know they do the Juke, but here we have a situation where again we're seeing the automotive industry moving away from the UK.

Now, that has major implications for Welsh steel being sold on the global market, because we want to see more Welsh steel on the global market as a consequence of that, and that is going to be challenging. Now, this exported steel will be subject to EU tariffs if we have no deal, and the tariff is estimated between 4 per cent and 5 per cent. We currently export 2.6 million tonnes to the EU, and Turkey will want to grab some of that marketplace. We export 300,000 tonnes of steel to them, and they could actually impose 15 per cent more tariffs on top of that. So, if there's a deal, no risk. If there's no deal, we have some serious trouble, and we will also be facing tariffs of the US and other countries, and even facing EU tariffs, because we have no protection anymore. These are really disastrous possibilities.

A 'no deal' Brexit will see UK steel or UK-manufactured components—because don't forget, steel goes into components and other aspects, and there are your rules of origin coming in—. Therefore, EU manufacturers will look at exactly how much steel is in their components, because where the rules of origin will take place, will they have to reduce UK steel for EU steel? You might say Tata has places in both, but we are looking at the industry here in Wales, and it will impact on the industry here in Wales. Now, I do know the UK Government is looking to replicate the existing EU free trade agreements, and as a result, 50 per cent of a car produced in the UK is made of UK steel. It will be subject to tariffs, and we've got to look at that very carefully.

Dirprwy Lywydd, we need to protect safeguards, combined with various tariffs. I'm concerned a little bit about the Trade Bill and the trade remedies in that, because 97 per cent of our current exports go out under EU FTAs and if we don't have protection there, we will be facing real challenges. To conclude my contribution, Dirprwy Lywydd, UK steel is on a precipice once more, I'm afraid. I am proud that this is a Welsh Labour Government that has been proactive, but I'm worried that the UK Government is failing our industry. For me, it's time they stood up and acted to save our steel industry. They didn't last time, and now it's time to do it. Our fantastic steelworkers want it, our producers want it, and our local communities deserve it.

Can I just being by saying I absolutely agree with you that we have the best steelworkers in the world here and they deserve the attention that we're giving them now? Because we're talking about a foundational industry for the UK economy, particularly for Wales, particularly for my region, and while we now recognise maybe the dangers of entire communities relying on one industry, such as in places like Port Talbot, contemplating the loss of production as collateral damage in a changing world is just simply not an option.

For me, I think the risks of steel dumping and not controlling controllable costs are the most clear and present dangers, followed by inertia or barriers that could affect the opportunity for Wales to carve out a space for itself in the fast-moving world of innovation. That's an aspect of Brexit that I think it would be a mistake to overlook at a time when the main story is tariffs. Here, as David mentioned, the effect of the country of origin classification for steel and steel products is a massive post-Brexit headache for which we need a cure before it infests the rest of the economy. And while US protectionism may have initially have been seen by workers as more of a threat to the production at the Ford plant in my region than Brexit, now with the UK steel industry so dependent on a flourishing automotive industry, can it really fight a war on two fronts? I think the UK Steel briefing paper, which had some courage today, is pretty clear about why a 'no deal' Brexit is bad news for steel.

Because the UK Government—you know, it's not responsible for China being able to produce steel at a price that's probably the lowest on the planet, I would imagine. So, I'm pleased that this debate isn't framed just in a simple, 'Let's get the UK Government' way. But I think the UK Government needs to understand as well that Welsh Conservatives, apart from expecting an exit agreement, a deal on that, expect trade deals as well to prevent unfair competition and any steel dumping here. Because Wales, as we heard, produces over half the UK's steel, and it's Welsh communities, therefore, that are the most vulnerable. 

The other controllable cost, of course, is energy, which David Rees also mentioned. But there's a serious question here about how to prioritise. I hope we all welcomed the UK Government's recent limitation on domestic energy charging—consumers must now be told where they can get the cheapest deals—and that happened more or less at the same time as every single one of us here in this Chamber was standing up and saying, 'Let's have a Swansea bay tidal lagoon', which I still think was a great idea, but, despite it's many, many benefits, what it didn't do was produce cheap electricity. The same points are hovering over Wylfa and, of course, Hinkley Point at the time. We're asking now for cheaper electricity for heavy industry; it blooming well needs it, but, with no control over oil prices, which affects fuel prices, how can we help the UK Government—[Interruption.]—just let me finish this—prioritise these competing calls on its energy policy?

I thank the Member for taking the intervention. I agree and understand that point, but it is possible, if the UK Government was prepared to put investment into Tata, for example, to look at how we can recycle the waste gases. It could become self-sustainable, therefore it doesn't rely upon oil or gas prices outside because it can do it itself. 

You've predicted what I'm about to say next, David. Because, in the meantime, the sector will want to know what all the actors in this space can do to overcome the fact that they're paying twice as much for their electricity as French steel makers. So, I'm actually really encouraged that Tata's taking a lead on this—already some distance down the recycling of energy within the plant itself, and, of course, if both Welsh Government and, indeed, UK Government stick with the programme, then there'll be money going to ensure that the power station is actually completed and contributing to much cheaper and, of course, actually, just more sustainable energy production. 

Personally, I'd like to see a bit more progress on the UK steel sector deals—you know, it was finally hauled out as something important. But I want to come back to this essential and perhaps more optimistic opportunity for Wales to be seen as a centre of research and development, excellence and innovation in steel. We can look at a small country like Israel, not that much bigger in terms of population than us, and it is soaring ahead in all areas of innovation across a number of sectors despite a more deeply rooted challenge about security and identity than Brexit is presenting to us.

While I share David Rees's concerns about the EU research fund for coal and steel, I agree with you actually—because it was levied from that sector it should be returned to that sector. But Wales has got to be ready for that. This is where we look to Welsh Government for action and the Welsh sector itself. We've got the UK's industrial energy fund, the new £66 million transforming foundation industry challenge fund just to be announced, and we'd like Welsh Government to be seizing all those opportunities to push its own decarbonisation agenda as well as helping the steel industry directly.

And while the Government perhaps is dragging its heels on the Reid review recommendations, which would help raise our status as a quality research nation, we already know that the city deal is committed to the national steel innovation centre, building on the success of the Swansea University steel and metals institute. And while I accept, Minister, you can't just roll over on things like this, you can't let small squabbles over land hold up big progress. We are looking at a big picture that's facing big challenges. I think you could score some big brownie points by tackling some of the smaller barriers that might be threatening steel's sustainability here in Wales. Thank you. 

Thank you, David Rees, for tabling the motion. I speak both on behalf of Bethan Sayed, who's one of the signatories of the motion, and as Plaid Cymru spokesman on the economy.

And our commitment to the steel industry I think has been clear enough, not least through the fact that elements of support provided to Tata Steel from Welsh Government have come about through co-operation between our two parties. We've been clear, I think, before, during and since the crisis at Tata Steel in 2016 that securing the future of the industry is vital, is crucial, if we want Wales to remain a centre of manufacturing and industry. And Bethan Sayed went so far as to say that she didn't want to live in a Wales that didn't have any steel making, so central the industry is to our economic past and economic future. Every economically successful nation needs an industrial sphere to prosper.

So, we've been eager to put pressure on and to work with Welsh Government on steel, because we know that, although we may have disagreements, there are areas where, if we can co-operate, then we should for the benefit of people in this country. Co-operation with the Government on this and a cross-party approach has meant that critical funding, such as the £30 million to support an upgraded power station facility for Tata Steel at Port Talbot, was secured, improving generation, lowering emissions, helping to control the costs of energy, a major financial burden on steel making, as we've already heard. And, incidentally, I reiterate Plaid Cymru's longstanding support for establishing a national energy company, which we believe could help things further, but something, so far, the Labour Government has continued to resist.

But, as much as we welcome the thrust of this motion, perhaps it doesn't quite reflect just how vulnerable a position our steel and wider industrial sector finds itself in. But, certainly, Dai Rees, in presenting the motion today, has expressed concerns that we also share here. I think we're beyond apologising for using the B word by now—it comes up in everything that we do. We are heading towards the EU exit. We're hurtling towards that exit without a deal in place, or any sort of customs and market access protection or agreement. The Trump administration, if we want to look at what's happening in the United States, continues its damaging and short-sighted use of tariffs to make political points, particularly on products such as steel. And the UK will soon find itself in an increasingly precarious world economic environment without our European partners standing alongside us. So, I think firm foundations and having firm foundations for our steel industry now are more important than ever.

We are in a very different position to the one we found ourselves in 2016. Tata Steel merged with a major European steel company, ThyssenKrupp. I look forward to hearing from the Minister, hopefully, about the kinds of long-term assurances that he and Welsh Government have received, the kinds of assurances that we now require, about the new company's commitment to their sites in Wales. At the moment, it's fair to say that we can be encouraged that some of the investments being made by the steel sector seem to be for the longer term; they do suggest an expectation of continuing steel making in Wales over, say, the next decade at least. But it's essential, of course, that Welsh Government remains focused. It cannot afford in any way to take its eye off the ball on steel making. Our current circumstances are unclear. There's much confusion about the direction in which we're heading, lack of certainty, and things look uncertain for the whole industrial and manufacturing sector across the UK.

But I'm very concerned about, as Dai Rees said, what news emerging from the automotive industry could mean for the steel makers that supply it. These are major questions and of huge significance to the future of the Welsh economy. So, hopefully, when the Minister replies, he can offer us some assurances that this will remain a priority for this Government over the long term, so that steel continues to be recognised as the anchor industry it quite frankly must be and remain for the wider Welsh economy.

I'd first of all like to thank David Rees for tabling this debate today, and it's a pleasure to take part. Steel is in the blood of my region. It was at the heart of the industrial revolution and transformed south Wales into the world’s powerhouse. Without the steelworks, large parts of South Wales West wouldn’t exist. Port Talbot grew out of this revolution to become one of Britain’s most significant steel producers. The steelworks' location gave it an advantage as production moved from utilising poorer quality British iron ore to higher quality source material from overseas.

The history of iron making in the Port Talbot area extends back to the thirteenth century, when the Lord of North Cornelly granted the monks of Margam Abbey the rights to extract iron and lead ores from his lands. Neighbouring landowner Philip de Cornelly also granted monks the rights to produce iron from the ores extracted from his lands. Iron production continued down the centuries until the advent of the industrial revolution, when a new dock was created to facilitate the import of ores and the export of finished products. The dock was named after its builder, Christopher Rice Mansel Talbot, and became known as Port Talbot. One hundred and eighty-odd years later, Port Talbot is still dependent upon steel production. Living in the shadow of the steelworks, the plant not only dominates the horizon but also the very psyche of our town. At one stage you either worked at the plant or knew someone who did. Nowadays, fewer people may work at the steelworks, but it is still responsible for the employment of many in the region due to the wider supply chain that has sprung up around Port Talbot.

The decline in steel production has been a major concern in recent years as the global market has become flooded with inferior steel from China and with the US embarking on a trade war at the behest of its protectionist President. It was therefore an enormous relief when the first roll of coiled steel came off the line following the refit of blast furnace 5 at Port Talbot.

Tata Steel’s £50 million investment underlines the firm’s commitment to the plant, the people who work there and the wider community. It is now up to the Welsh and UK Governments to work together to ensure the plant’s long-term future. Tata have shown their commitment, and Government must do the same. Steel is as vital to the UK’s infrastructure as it is to Port Talbot, and the Governments here in Cardiff and at the other end of the M4 must do all they can to ensure the UK remains a steel producer.

Post Brexit we must have a level playing field when it comes to tariffs. The EU must resist the urge to punish the UK for having the temerity to leave. Rationally speaking, tariffs harm both sides. I urge the UK Government to pursue fair, tariff-free trade agreements with the rest of the world, opening up new markets for our high-quality Welsh steel. We might not be able to compete with Chinese steel on price, but we can certainly beat them on quality. Tata have renewed their faith in Port Talbot, and it’s now up to the UK Government to level this playing field and ensure a cast-iron future for steel making in South Wales West.

We need cheaper energy, free access to international markets and a commitment to the use of Welsh steel in new infrastructure projects. The UK Government must step up to the bar and work with the Welsh Government to ensure our steelworks are protected. My neighbours and their families are dependent on employment at Port Talbot steelworks. Tata are doing their bit, and the workers also, and the workers work long, long hours to secure the future also. Now it is the turn of both Governments to work together, and post Brexit we must all work together and ensure Wales is not worse off by one single penny. 

Can I also begin by saying that I'm very pleased to support today's motion? And thank you to David Rees, my colleague, for bringing forward this debate but not only bringing forward today's debate, but your continuous commitment towards the Welsh steel industry through your work both in the Chamber and the cross-party group. I'm very pleased to speak in this debate today and to stand up for the steel industry as a whole, but particularly steel making in Shotton in my constituency, which produces many quality steel products, such as galvanised, metallic and pre-finished steels.

Deputy Llywydd, I must say that when I saw that this debate was tabled, it took me back to the date it was tabled and my by-election campaign last year, during which I made a commitment to standing up for steel, for the steel industry. So, I think it's pleasing to say, one year on, I can come here and stand up for our Welsh steel industry. It also took me back to the Save Our Steel campaign and the work that my dad did at the time to stand up for the industry and the workers, particularly in that site in Shotton. Developments in the steel industry were rightly one of the most high-profile political issues of 2016, and I vividly remember him working day and night, contacting the trade union officials and lobbying hard to both the Welsh and UK Governments to support the very important industry. Everyone who supported that campaign knows how important the industry is to Shotton, but to Wales and the UK as a whole, as David Rees has rightly highlighted on many, many occasions.

As we all know, Deeside's darkest day occurred in March 1980, when British Steel, after a decade of battering union and political pressure, axed 6,500 jobs at Shotton steel. It was the biggest industrial redundancy on a single day in western Europe, and entire families faced redundancy; communities were ruined. The impact on the industry for our area and the whole of Wales is massive. The Welsh economy research unit at Cardiff University found that the total economic impact of Tata was £3.2 billion in Wales per year, which supported a gross value added of £1.6 billion. Tata contributes £200 million in wages to the Welsh economy each year, and each job at Tata supports an additional 1.22 jobs throughout the Welsh economy.

Deputy Llywydd, let's not forget that steel is either in every single product or in every single process in our current world, so the steel industry rightly deserves all the support it can get. And I'm proud of the Welsh Government, and I think the Welsh Government has a great track record of backing the steel industry, and I know that, under the guidance of Mark and Ken, it will continue to do so. But it's clear to me that support shouldn't just happen when crisis hits, and the UK Government, as many Members have said from across this Chamber, can learn and should learn from lessons of the past.

In closing, Deputy Llywydd, I do want to take time to mention the workers in the steel industry, especially those working at Shotton. I've had the pleasure to visit the site on quite a few occasions, and I know that, just last year, we took many Members from my party up to the site as well. And it's clear to me that the workers are extremely proud of what they are doing and what they're achieving day in, day out, and I'm proud of the contribution the industry makes to my community and to the whole of Wales. So, in closing, my final message is a message to the workers within the steel industry: we will in this Chamber keep fighting for you in this difficult time, and we thank you for everything you do to improve our Welsh economy. Diolch.

Thank you. Can I now call the Minister for Economy and Transport, Ken Skates?

Diolch Dirprwy Lywydd, and can I thank all Members for their contributions to this important debate today? This motion is most welcome and also very consistent with the Welsh Government's position on the steel industry, and so it's my pleasure to support it. I especially enjoyed the many reflections on the history of our steel-making activities here in Wales, with David Rees, Jack Sargeant and Caroline Jones providing some great assessments of the social as well as economic value of our steelworks. I think David Rees welcomed the work of Welsh Government in saving our steel, but he also made the very important point that we, once again, find ourselves standing near a precipice. We've debated many times in this Chamber the principal challenges that impact on the steel sector, and these include, of course, uncompetitive industrial electricity prices, global overcapacity and unfair international steel trading practices. These matters continue to be of huge concern to the sector, but as many Members this afternoon have identified, we now have considerable uncertainty about Brexit. The US section 232 tariffs on steel have highlighted the importance of ensuring the steel sector is safeguarded from unfair international trading practices. We've ensured the concerns of the steel producers in Wales have been raised at the highest level in Westminster.

After the UK and Ireland, the primary market for UK-produced steel is, of course, Europe. When we exit the EU, it is therefore vital that the steel industry in Wales is not disadvantaged through unnecessary trade barriers such as additional customs, tariffs, quotas or technical barriers to trade. The steel sector is highly dependent on free trade, but, equally importantly, on the rules such as trade remedies that underpin this free trade. It's also important, Deputy Presiding Officer, to emphasise the steel industry will be impacted by any disruption in its supply chain as a result of Brexit, including, importantly, in the auto sector, as Suzy Davies and Rhun ap Iorwerth identified. Indeed, the first two rolls of steel that came from blast furnace 5 last week were destined for auto manufacturers in the west midlands and north of England. And I heard for myself just last week the sector's concerns at the Cross-Party Group on Steel. The sector has been engaging directly with the UK Government's Department for International Trade to raise its concerns and to emphasise the importance of ensuring future trade remedies in the UK are robust.

The Welsh Government is in regular dialogue with the UK Government on Brexit, and we are making the case for them to provide as much certainty as possible for Welsh industries, including, of course, the steel industry. The impact of the UK industrial electricity price disparity with other countries, especially with regard to France and Germany, is another issue that we continue to raise with the UK Government and which Members this afternoon have identified. This is of utmost importance if the sector is to compete on a level playing field internationally and if it is to attract investment in plant and research and development. This is being reinforced by the most recent statistics published by the UK Government, which show that the UK has the highest industrial electricity prices in the EU. For extra-large industrial users, prices are 90 per cent—90 per cent above the EU median.

Now, it was a pleasure to visit Tata Steel's Port Talbot works last week alongside the First Minister to mark the re-lighting of blast furnace 5. The completion of this project marks a substantial investment in the future of the plant and in its workforce, and demonstrates Tata Steel's commitment to sustaining steel making in Wales. In June 2018, Tata Steel announced it signed a definitive agreement to enter into a joint venture with Thyssenkrupp. This is currently subject to regulatory examination by the European Commission. However, meanwhile, we continue our engagement with Tata Steel UK regarding further potential supporting relations to enable their operation to become more sustainable for the long term. To date, we have offered £17 million of funding across Tata Steel's Welsh operations that support skills development in the workforce and, of course, an £8 million investment in the Port Talbot power plant.

Many Members in this Chamber, alongside Tata Steel, recognise the importance of increasing levels of research and development for the long-term sustainability of the business, and our support includes over £600,000 of funding for research and development in new product development alone. And our economic action plan has been designed, in part, to help Wales develop new platforms and new partnerships between Government, universities, colleges, businesses and so forth that might enable us to target more competitively awarded funding in UK industrial strategy challenge funding. There are clear synergies between our economic action plan and the UK Government's industrial strategy. Wave three of the industrial strategy challenge fund includes two challenges particularly relevant to the steel sector: firstly, a £170 million challenge focused on decarbonising industrial clusters, and as Suzy Davies said, a £66 million challenge transforming foundation industries. We are working with the sector to take advantage of these and other opportunities available from the UK Government.

The UK steel sector has identified public sector procurement as a key core action that Government could take to strengthen the sector and to improve its ability to compete, and in January last year, we published a procurement advice note supporting the sourcing and procurement of sustainable steel in construction and infrastructure projects here in Wales. This is part of our ongoing commitment to support the long-term viability of steel making in Wales, and is designed to encourage the widest use possible of Welsh and UK steel in public sector contracts.

Dirprwy Lywydd, to conclude, I fully recognise the ongoing challenges that steel companies in Wales face, particularly given the uncertainty caused by Brexit, but equally, I can assure the steel sector that this Welsh Government will continue to work at its side to ensure a long-term future for all steelworks in Wales, and I am pleased to support this afternoon's motion.

Thank you. Can I call John Griffiths to reply to the debate?

Diolch, Dirprwy Lywydd. May I begin by thanking all Members who've taken part and contributed to this debate? I do feel that there can be little doubt of Members' commitment to the steel industry in Wales, regularly evidenced in this Chamber in debates and at questions in general.

Obviously, foremost amongst those contributions, always, is Dai Rees's, so it was entirely fitting that David Rees opened this debate today. I would like to join Jack Sargeant in paying tribute to David Rees for his work on the cross-party group and his general commitment. I think we all realise very well, through David's contributions, the importance of Port Talbot steelworks to his constituency and his determination to fight the cause to ensure that everything that might be done is done by Welsh Government, by UK Government and by the industry, working with the trade unions and the workforce to ensure that those jobs are safeguarded and developed for the future. It's certainly a commitment and a strength of feeling that I can readily understand, representing Newport East with the Llanwern steelworks, and also important steel players in my constituency, such as Cogent and Liberty Steel. We need to protect those jobs to develop the industry and bring new investment and new jobs for the future, and that is a matter of working with the industry, Government at different levels, the trade unions and the workforce. Those are the messages that we've heard today and I think we very regularly hear, and rightly so.

There are some very common themes within that general debate, Dirprwy Lywydd. Newly, I guess, is the importance of Brexit and avoiding the huge risks of a 'no deal' Brexit. There are some very big issues involved in Brexit, per se, but much bigger risks involved in a 'no deal' Brexit, and that's been made crystal clear by UK Steel recently, but further back, also, by the trade unions, by Members here and by Ken Skates as the relevant Minister. There can be little doubt that the crippling uncertainty, as it's been described, Dirprwy Lywydd, is hugely destabilising for the industry and in terms of planning for the future. There are particular worries around the automotive industry, as we've heard, the situation with tariffs, with research fund moneys and a great deal else besides. Obviously, the sooner we get to some degree of certainty around those issues, the better for all concerned.

The high cost of energy also always, and rightly, features in these debates and it has again today. I think we are, all of us, Dirprwy Lywydd, very conscious of that disparity, that unfairness in competition between the UK steel industry and the steel industry in other countries and the need for the UK Government to finally get to grips with those issues. We have seen investment in energy efficiency; we are seeing important moves towards the generation of energy by the industry itself, as we've heard, and that's an important matter for Liberty Steel, for example, in Newport, where they have important plans for the current Uskmouth power station. So, the industry is taking the steps that it can itself, but it needs that help from UK Government.

I very much welcome the Minister's recognition of all of those issues and reassurance again of Welsh Government's commitment to work with the industry, to work with the trade unions, to work with Members here to meet these challenges. Procurement, as the Minister mentioned, again is another absolutely central matter for necessary progress, and I welcome the new development of policy and strategy by Welsh Government, which I think is very promising and we will all want to see delivery on. 

Dirprwy Lywydd, the investment by Tata, you know, is a great statement of confidence for the future of the steel industry in Wales, and we all welcome that, and the workforce very much welcomes that. So, what we need to do, in terms of Government action, is to play our part. As has been said in this debate, Welsh Government has stepped up to the plate as far as that is concerned. UK Government also has a very important role, and we need to see UK Government step up to that plate also.

Thank you very much. The proposal is to agree the motion. Does any Member object? Therefore, the motion is agreed in accordance with Standing Order 12.36.

Motion agreed in accordance with Standing Order 12.36.