6. Member Debate under Standing Order 11.21(iv): Steel Industry

Part of the debate – in the Senedd at 4:17 pm on 6 February 2019.

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Photo of Suzy Davies Suzy Davies Conservative 4:17, 6 February 2019

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.