Tata Steel and Thyssenkrupp

Part of 3. Topical Questions – in the Senedd at 3:10 pm on 15 May 2019.

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Photo of David Rees David Rees Labour 3:10, 15 May 2019

Can I thank the Minister for that answer and the commitment he's given to supporting the steel industry here in Wales? Now, many will remember that, in 2016, the beginning of it, we saw the threat of closures of Port Talbot works. Following the decision by Tata then not to close it, in the commitment to seek a joint venture or merger with ThyssenKrupp, indicating it would be that offer that would give steel making a strong future, the trade unions accepted that—maybe reluctantly, but they accepted it—and that was reinforced this week by the Tata Steel European Works Council in the 10 May statement, saying that they supported that path. Now, that's gone, and I agree with your statement yesterday, and I thank you for that statement. It's a worrying time; there's no question about that. Grey clouds are once again on the horizon over Port Talbot, with the fear that they're moving in our direction. I think it's time to have cool heads, as you pointed out. It's not time yet—take time; cool heads. We must look and set out our own visions for ensuring that Wales has a sustainable steel sector.

I also agree that UK Government has a critical role to play in this, and you highlighted those points, whether it's a steel sector deal they need to get on with, or whether it's the attack on high energy costs, which we've been calling for for many years so that we can strengthen the financial position of companies in steel. That's one agenda. But I want to ask: what are the intentions of the Welsh Government to support the sector? You've done a fantastic job to date. I can't dispute the support this Government has given, both in this Assembly and the previous Assembly, to the steel industry, but we now need to see where we're going. I haven't seen a specific Welsh steel strategy, so can I ask whether you will be publishing a specific Welsh steel strategy for the future? 

Can I also say that steel is being supported by increasing income? You know, we talk about costs—lowering costs—but we can also talk about increasing income. One of the ways of increasing income is improving investment through CAPL galvanising lines in Port Talbot, for example, so the higher end products become more expensive and you get more money in as a consequence. So, the question I'm asking is: are you looking at future investment into the sector? Are you going to look at greater use of research and development? Are you going to be innovative and creative in your approach to supporting environmental projects? Because we've often argued that it's state-aid rules, but there are ways around state-aid rules so that you can help companies—environment and R&D being two of those ways. Now, both of those, actually, will help not just the industry but actually help constituents in my town on a wider basis as well. So, again, will you look at that and can you tell us what your plans are for that type of approach?

Can you also—? We've had people call for a summit from the First Minister. Well, to be honest, steelworkers and their families in my constituency don't want more talk. They want positive action that will remove the uncertainty they are now facing. That's definitely returned. We know it's there. We are fearful that it's there. We want a commitment from the Welsh Government of that continued support, and I want to ensure that, actually, perhaps that can be reinforced by somebody going to Mumbai to talk to the Tata board in India to reinforce the commitment this Welsh Government gives to the steel industry here in Wales.