5. Statement by the Minister for Economy and Transport: Tata Steel

Part of the debate – in the Senedd at 4:45 pm on 19 November 2019.

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Photo of Ken Skates Ken Skates Labour 4:45, 19 November 2019

Can I thank John Griffiths for his questions and also for coming along to Orb with the First Minister and me last week? I thought it was an incredibly productive discussion that we had with Roy Rickhuss and Community union with workers from across the site? Of course, with a potential loss of 380 jobs, some people would choose to retire, some people would choose to go into employment with a different employer. But I was promised again today that Tata would endeavour to find anybody who wishes to stay within the company a job elsewhere within the Tata family. But before that happens, I have been pressing upon Tata the need to ensure that as much time is given, as is needed by Community and Syndex or, indeed, as much time that is needed by any other interested party that may emerge looking to take over and transform Orb.

I won't specify how long is required for Syndex or anybody else to have their proposals fully assessed; I think that's better for them themselves to specify. But I do recognise that it would come at a cost for Tata. But, overall, the cost of transforming the Orb site in order for it to produce the advanced steels that are used for electric vehicles is not that considerable—something between £30 million and £50 million. Yes, it sounds a huge sum of money compared to other investments, but, actually, this money would secure enormous opportunities within the development and manufacturing of electric vehicles. And as we look to phase out pure diesel and petrol-driven cars, there are massive opportunities for the UK automotive sector. But we're not going to realise those opportunities if we allow specialist steel manufacturers to go by the wayside, if we take our eyes off the challenges that the automotive sector currently face, and if the UK Government fails to get over the line important sector deals, as they are failing with the steel sector deal.