1. What discussions has the Welsh Government had with counterparts in the UK Government about the future of the steel industry in Wales? OAQ54303

Llywydd, can I thank the Member for that question, and for his consistent advocacy of the importance of the steel industry in Wales? As he will know, we are in regular discussions with the UK Government. We continue to press them to discharge their responsibilities to support strategic manufacturing in Wales and to play their part in securing a long-term future for our steel industry.

Thank you for that answer, First Minister. You rightly point out that the UK Government needs to play its part. It hasn't even done a steel sector deal yet. The previous Secretary of State and the current Secretary of State seem to be oblivious to the importance of addressing this issue of our steel sector. Now, as you know, Port Talbot steelworks is crucial to my constituency. Many steelworks across the areas in Wales are actually the lifeblood of many local communities, and, whilst I want to talk about Port Talbot, I think it's more important we talk about the wider steel agenda and the recent announcement by Tata on closing the Orb works. The Orb works is part of the steel family in Wales, is part of the structure of Wales. What actions are the Welsh Government taking to look at the help it can give to the workers of the Orb works, because even though Tata are saying they will relocate many, actually what that does is take away jobs from other people and the jobs of future people coming into the Orb works. Opportunities will disappear. So, what's the Welsh Government going to do to ensure that the Orb works and the workers have a future?

Well, Llywydd, I thank David Rees for that follow-up question. Of course, he is right; it is deeply disappointing that the UK Government has failed to deliver a sector deal for the steel industry, despite the many opportunities that we have taken to put that case to them. And they won't do it because they have failed to solve some of the issues that lie directly in their own hands. Time after time, the industry and the Welsh Government have urged the UK Government to tackle the issue of industrial electricity price disparity between the United Kingdom and competitors of Tata on the continent of Europe. As recently as 27 August, my colleague Ken Skates was discussing this with the new Secretary of State at the Department for Business, Energy and Industrial strategy. It's time for the UK Government to step up and to play their part in supporting the steel industry in Port Talbot and more widely in Wales. And, of course, it is disappointing to have had the news on 2 September that no buyer has been found for the Orb site in Newport. It's disappointing for Wales and it's extremely worrying for workers at that plant. 

Now, I welcome the fact that Tata have said that they aim to avoid compulsory redundancies and to offer alternative employment at other sites. But that consultation that's being carried out with staff needs to be real, it needs to attend carefully to the case being made by the trade unions on behalf of their members, and, as a Welsh Government, we will work with the trade union movement, as well as with the company, to do everything we can to support that very loyal and very skilled workforce. 

Speaking here in 2015, in the debate that called on the Welsh Government to adopt a charter for British sustainable steel, I noted that Tata Steel Colors in Shotton were not only critically dependent upon the supply chain for sustainable British steel, but also had an emphasis on commitment to investment in improving their environmental performance and sustainability, where they were working with Welsh Government and Natural Resources Wales to meet the industrial emissions directives. What engagement has the Welsh Government had with the UK Government since its March announcement of a consultation on an industrial energy transformation fund to help businesses with high energy use cut their bills, particularly steel, backed up by £315 million of investment?

Well, Llywydd, the Welsh Government was the first signatory of the steel charter earlier this year. And, of course, we work both with the industry and, where there are opportunities, with the UK Government. The industrial energy transformation fund was discussed by my colleague Ken Skates at the opportunity that I mentioned a few moments ago. And we will pursue as well the clean steel fund that was announced on 29 August, not intended to be operational before 2024, but offering opportunities across the United Kingdom. And I think it is very important indeed that we emphasise that to the UK Government—that this is to be a fund that is to be spent in Wales, as well as elsewhere, to assist the sector in its transition to low-carbon iron and steel production through new technologies and processes. And that will be very important for us here in Wales.

The announcement about the Orb works in Newport, obviously, was devastating for the workers involved, but it's also devastating for the potential of the steel industry in Wales. I think Tata said that converting the site to producing steels for future electric vehicle production would cost in excess of £50 million. Now, what negotiations did Welsh Government get involved in, in either finding, or making, or contributing towards that kind of investment? Because £50 million would have been an absolute bargain in terms of securing the future of the plant and the potential that it offered in terms of this key sector.

Well, Llywydd, the £50 million investment is only one part of the set of reasons that were identified by Tata in coming to their decision. Not only did they say that it would require an investment of that scale, but they also pointed to the fact that Orb Electrical Steels is part of the Cogent Power group, and Cogent have a plant in Sweden that already manufactures steel that is used in electric vehicles. So, the money by itself was not the issue; it's an issue of the global construction of the steel industry, and where companies choose to make their investments and where they choose to source the steel that they need. Now, of course we would like to see that investment in Wales. Of course we think there is a powerful case for making sure that there is a UK supplier of the sort of steel that will be needed for electric vehicles and the wider automotive industry, and we make that case to Tata and with our trade union colleagues. But the steel industry is in a global set of difficulties and concerns, and Tata Steel and the events at Orb cannot be isolated from those wider considerations—wider considerations for which the UK Government has to take a responsibility.

First Minister, steel has been made at the Orb site in Newport East since the end of the nineteenth century, and over that 120 years or so, the workforce and production have continually changed and adapted, and investment has been made, to meet the evolving demand for steel. And I do think that, given that track record, it's perfectly possible for further change and adaptation to occur, with necessary investment, to produce electrical steel for the mass production of electric cars in the future. And surely there's a strong case for that electrical steel to be produced here, in the UK, and at the Orb site. So, I would be very grateful if you would redouble your efforts, First Minister, to work with UK Government, the trade unions and industry to look at facilitating and encouraging that investment and that strong future for the Orb works.

I thank John Griffiths, who speaks, I know, on behalf of those many individuals and families in his own constituency who are affected by the announcement. The Minister for Economy and Transport spoke to Tata Steel immediately following the announcement to make these points to them—that they have this long history of an immensely loyal, committed workforce, who've gone through many changes in that past and would be with them on a journey of change if they were willing to pursue it in the future. And there is, as John Griffiths said, and as I said in my answer to Rhun ap Iorwerth, a strategic case for ensuring that, in the United Kingdom, there is a capacity to manufacture steel that will be needed for new forms of vehicles and new possibilities in the future. We make all those points to the company, where we have those opportunities, while at the same time making it clear to that workforce that, should the assistance of the Welsh Government and the approach we put in place when people need to find new skills and new job opportunities be needed, we will be there to support them when that time comes.