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

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

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

Indeed I will, and can I thank Dai Rees not just for his questions but also for his tireless fight for Port Talbot steelworks and indeed for UK steel more broadly? Deputy Llywydd, Dai Rees made the very important point that the US-China trade war is influencing the challenges and contributing to the challenges that Tata and the steel industry in the UK face right now, suppressing demand within both countries. I do not believe that Donald Trump will do the UK steel sector any favours, but, once that trade deal is agreed, that will unleash potential for steel producers within the UK and Europe and provide opportunities specifically for Tata within the automotive supply chain.

Dai Rees is absolutely right that capex has to be invested in those products that will offer the highest value and the highest levels of return, and one of the four work strands of the transformation programme concerns the need to improve the product mix within Tata. I would agree with Dai Rees that worker loyalty has to be repaid with an honouring of the memorandum of understanding, and I'm very, very relieved that I was given the assurance yesterday and indeed today by Tata that it would honour the MOU.

I can tell Members today that plans were already being made for an automotive summit on 5 December, and for a broader manufacturing summit in the new year, to look at the opportunities, but also the challenges, that advanced manufacturing and the steel sector face in the twenty-first century. I'm going to touch briefly on Orb. I know that this was an announcement that was separate from yesterday's news, but a number of Members have asked about the consequences for those workers at Orb of yesterday's announcement. I also struggle to figure out how it could be that Tata will be losing 3,000 jobs in Europe but at the same time will be able to find opportunities for so many loyal and skilled workers from Orb, but, as I said a little earlier, the majority of jobs that will be lost because of yesterday's announcement will be office based, whereas the majority of jobs that are going to be lost at Orb are blue collar. I was told again today that they are very confident that they will be able to identify opportunities within Tata for those workers who wish to remain in employment with Tata.

I referred to the supply chain in my statement. Dai Rees also talked about the need to provide some certainty for the supply chain, and, again, that's the reason why I think it's so important that a steel council round-table is convened at the earliest opportunity. I also think that the earlier that Tata is able to indicate to workers what their fate may be the better. Clearly, going through Christmas and the new year with the question of their future prosperity hanging in the balance is not a good position to be in. It will be addressed by February of this year, but I'm hopeful that Tata will be able to provide more detail to as many people as possible before then.

And, in terms of the city deal, as I said in my statement, we have already provided several millions of pounds to establish the institute at Swansea University, and I was pleased also that HEFCW awarded the institute a further £3 million. Now, in terms of the Swansea bay city deal, there is a proposal for a national steel innovation centre—it was formerly called the steel science centre— and that's designed to build on the institute now. The proposal sits within a wider project called supporting innovation and low-carbon growth. The project is still in the development phase—it has not been formally submitted to Government—but I am in no doubt that it could contribute to the development of a wider selection of products that Tata could deliver in the future.