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

Part of the debate – in the Senedd at 4:41 pm on 6 February 2019.

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Photo of John Griffiths John Griffiths Labour 4:41, 6 February 2019

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.