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

Part of the debate – in the Senedd at 4:20 pm on 6 February 2019.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 4:20, 6 February 2019

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.