1. Following the comments made by the chairman of the Tata Sons group, what actions are the Welsh Government taking to ensure the future of Welsh steel making at Port Talbot? 374

Can I thank Dai Rees for his question and assure him that we will continue to engage with Tata Steel at every level to discuss how we can support the long-term sustainability of steel plants in Wales, including, of course, the Port Talbot site?

Can I thank the Minister for his answer? On Sunday, in The Sunday Times, the interview published with Mr Natarajan Chandrasekaran—who is the chair of Tata Sons, which is the parent company of Tata Steel—clearly indicated that effectively they were no longer going to look at supporting losses in steel making outside of India. His comments were, 'Why should India keep funding such losses?' This is not new to the workforce, I'm assuming. Clearly, I've met with the unions, I've met with the management, and they're clearly understanding that the transformation programme was about creating sustainability so that their business can be self-sustaining in the future.

However, this comes as another shock to the workforce, making it quite clear to them the challenges ahead following the announcement before Christmas of 1,000 job losses in the UK through Tata. It creates more uncertainty in the workforce. The workforce have done as much as they can, effectively. They are doing everything possible to ensure productivity is improved. They are doing everything possible to make the high-end products.

It is now time, perhaps, for the UK Government to take the decision as to whether it wants a steel-making industry in the UK. I also appreciate the Welsh Government's actions to date. You've been supportive of the Welsh steel industry. But, there now comes a point when you've got to make strong recommendations and calls to the UK Government. Will you now actually call upon the UK Government, whether it's in writing or go and visit them, including the Prime Minister, to reinitiate the steel council, to get this discussion agenda going so that we can talk about the future of UK steel to get the steel sector deal agreed with the Secretary of State?

Perhaps invite the Secretary of State down to have discussions in the Port Talbot works itself, so we can have her seeing, at the position, what the importance is of steel to the economy of Wales. And perhaps yourself could go to India and meet Mr Chandrasekaran to discuss how Tata's future in Wales will be going ahead, because this is a crucial industry, not just for my communities but to many communities across Wales. Therefore, we need to ensure that we can protect steel, but the levers, unfortunately, are not with you—most of them—they are with the UK Government, and we've got to get them to do something.

I'd agree entirely with what Dai Rees has said. I don't think many countries anywhere on this planet would be willing to give up their steel-making abilities. I would urge the UK Government to demonstrate as soon as possible that it is not willing to give up on Britain's steel-making capabilities either. The interview, as Dai Rees has said, contained a statement that is entirely consistent with previous statements from Tata Steel, including those contained within the transformation plan documents.

Now, I think it's fair to say that there are huge challenges and a vast range of challenges that the European steel-making community face. But, here in the UK, the UK Government can implement three actions, more or less immediately, to address the pressures that Tata in the UK and many, many other steel-making and high-intensity-energy companies face.

First of all, they must take action on high and volatile energy prices, as Dai Rees has identified. Secondly, they must deliver on the steel sector deal. And thirdly, as I have long been calling for, they must convene the cancelled UK steel round-table meeting.

Only on Monday of this week, I met with UK Government Ministers and again pressed home the need for them to take immediate action on those high energy prices that are making steel making in the UK unproductive, and are also affecting the competitiveness of the base here in the UK. They must take action soon because, as that interview has probably demonstrated to many readers, patience is running out with the way that the UK Government is not taking action. 

Can I agree with some of what David Rees has said in terms of the disappointing comments from the chairman? That is obviously going to be worrying for the 4,000-strong workforce at Tata Steel.

Clearly, there are roles here for both the Welsh Government and the UK Government; both Governments have levers at their disposal. I wonder if the Minister would welcome the measures that the UK Government has taken to compensate energy-intensive manufacturers for the costs of renewables and climate change policy costs.

Would the Minister also agree with me that the issue with the steel industry is not limited to one thing, it's not limited to just electricity, there are a number of issues, the main one being the low international steel price caused by the global overcapacity? There is the issue of business rates as well, and I wondered if the Minister could update us on whether there's any further action that he can take in terms of alleviating business rates for the industry.

Last year, I think it was either in a statement or in a question like this, you talked about how Tata's announcement may affect the skilled workers at Port Talbot and other Welsh sites. You mentioned that it would be a couple of months before an analysis could take place on a function-by-function basis—I think those were their words. A couple of months later, I do wonder if you have received any update from them, or if not, when you might expect that might be.

Turning to what else the Welsh Government can do, since November, when I asked the question—it mentioned something about business rates again. But, what else do you think, besides business rates, that the Welsh Government can do to help the industry be structurally competitive here in Wales?

We are on the other side of the general election, and now that Brexit is going to happen, I wonder what discussions you've had with the new UK Government—I appreciate that time has been limited since that Government's been in place—on revisiting the competition concerns that were expressed by the European Commission regarding the proposed merger.

Also, in a post-Brexit world, some would argue that there's some flexibility over the current EU emissions regulations, and I wonder what the Welsh Government's view is on providing additional flexibility over emissions regulations for the steel industry, also taking into account, of course, the Welsh Government's declaration of a climate change emergency. I wonder if you've got a gauge, really, on your thinking on that.

And finally, what has the Welsh Government done to update public procurement guidance in the Welsh Government's departments so that any environmental factors can be taken into account when the Welsh Government procures steel?

Can I thank Russell George for his questions? Whilst I do acknowledge that some action has been taken by UK Government, according to industry itself, that action is insufficient, whether it be in the form of the fund that's been established for high-intensity-energy companies, or the green steel initiative. I think what's absolutely vital is that it listens to the sector at a reconvened round table and takes action based on what they say, what those businesses say is needed in the UK. Based on what I hear consistently, the single biggest issue that they face concerns the volatile and often excessively high energy prices.

I'm expecting feedback next month on the roles that are to be affected by Tata's announcement before Christmas. If I receive any information before February, I will of course update Members accordingly.

Other areas of support beyond, perhaps, business rates—which is an issue that my colleague the finance Minister will give great attention to—we are, of course, considering further support for research and development opportunities to ensure that new and emerging technologies are exploited here and that new products can be manufactured here in Wales and the steel for them can be produced at Port Talbot. In all likelihood, there will be no revisiting of the merger by Tata, and therefore revisiting the decision of the EU Commission is highly unlikely. However, during the course of discussions that I'll be having with Tata in the coming weeks, this is an issue that I'll be raising with them.

In terms of emissions, there is an absolute need to reduce carbon emissions across Wales and around the world, and that's why we have been investing in improved power-plant structures within the Port Talbot site and why we, through the calls to action in the economic action plan, are investing in the decarbonisation of industry, and manufacturing in particular. I would urge UK Government to assist in this regard by making sure that the UK industrial strategy and the various challenges that it supports benefits Wales as much as it benefits other parts of the UK

Finally, on procurement, and the incredibly important matter that the Member raises, he will be aware that, in January of last year, the Cabinet Secretary for finance announced the publication of a procurement advice notice supporting the sourcing and procurement of sustainable steel in construction and infrastructure projects in Wales. In addition, since its launch, Value Wales has been promoting the benefits of signing the steel charter—Welsh Government was the first signatory of the steel charter—to local authorities across Wales, through direct contact and through group sessions, both in the north and in the south.

Minister, the futures of the sites in Port Talbot and Shotton are linked through the production chain, and I stand solidly by my colleague David Rees in supporting the workforce at Port Talbot and the steelworkers right across Wales. This Welsh Labour Government has always supported the steel industry, and once again we have to show how important it is to Wales. Now, key to that demonstration is to continue to support and fund the training of the next generation of steelworkers, whilst upskilling the current workforce. This would send a clear message that Wales is committed to the future of its steel industry. Will you pledge to continue that funding and support? Also, will you use your time today, Minister, to put on the record your frustrations with the UK Conservative Government in Westminster, who have completely failed to support the industry over the years? My constituents have seen it more than anyone, back over 20 years ago. Will you call on them to follow your lead in the Welsh Government and come back to the table and demonstrate the support that is finally needed to save our steel?

Can I thank Jack Sargeant for his questions and his contribution? The UK Government has been making very recent soundings that would suggest it is willing to be more interventionist than it has been since 2010. I would urge them to use steel and the need to intervene in what's happening to the UK steel industry to demonstrate that willingness to be more proactive to save valuable, highly skilled, well-paid jobs. The First Minister and I will together be visiting Tata in Shotton in the coming weeks. I'm looking forward to receiving the Member there, speaking with management, with unions, and with the workforce, and in particular discussing opportunities for the site. Of course, there's the potential for a Heathrow logistics hub at Tata in Shotton, which could bring huge opportunities to the area. But, I'm keen also to support the role that Welsh Government could offer in terms of skills training. We've already put on the table and utilised £11.7 million for skills training at Tata across its sites, and that has made a great difference to the life chances of people employed in the company. I'm keen to make sure that we are maximising opportunities for people to reskill and to upskill accordingly.

These comments from the head of Tata clearly are very worrying. I'd just like to briefly reiterate one of the comments made by David Rees. You'll know that I've been calling for an industry summit for Wales. The Member for Aberavon emphasised now the need to bring the UK steel industry players and key stakeholders together at the highest level and, whether that's a steel council or the kind of summit I've been talking about, these aren't talking shops. These are about emphasising the importance of these sectors and the need for urgent action. Will Welsh Government specifically demand now the reconvening of that council with a seat for Welsh Government around that table in order to make the case always about the importance of the steel industry to Wales? It's not just about energy, of course, but we do need cheap energy for steel. We need cheap, clean energy for steel. We need to clean up the steel industry, and it's clear that we're running out of time.

Can I be absolutely clear with Members? We have made repeated calls for the convening of a UK steel council meeting. I wrote to the Secretary of State for Business, Energy and Industrial Strategy on 25 November urging her urgently to reconvene the cancelled UK steel round-table meeting that had been granted following my urgent requests earlier in the autumn. There have been phone calls with the Secretary of State as well, in which I have pressed the case for bringing together key industry leaders to ensure that we are exploring all opportunities to improve the resilience of the sector in the UK. I would repeat today there is an absolute urgent need to reconvene the UK steel council; we have to ensure that the right people are around the table to discuss the actions that could be taken by Governments at every level across the UK to help the industry.

And the Member is right. There is a need, I think, to convene industry leaders more widely as well to discuss the future of manufacturing in Wales, which is why, before Christmas, I agreed to host a manufacturing summit. That will take place this winter at the Advanced Manufacturing Research Centre in Broughton. It's also why, before Christmas, I hosted an automotive summit concerning the future of the auto industry in Wales, which proved to be incredibly productive. And we will ensure that we stretch every sinew to save the steel industry, and manufacturing more generally in Wales. 

Finally, John Griffiths. 

Diolch, Llywydd. Minister, of course, in Newport, we have the Llanwern site, which is integrated with Port Talbot. As Dai Rees and Jack Sargeant have already said, these Tata operations are very much seen as a whole. So, we have a great deal of concern in terms of the jobs at Llanwern, and also, of course, at the moment, at the Orb works. The plant is mothballed, with potential buyers still in talks with Tata as to the possible future use of that plant.

You talked about the UK Government signalling a more interventionist approach now. There is such a strong case, I think, for an electric vehicle industry in the UK, with the Orb steelworks supplying the electric steel for such an operation, where we could gain real advantages in terms of what is sure to be a big, big growth industry for the future. An interventionist approach by the UK Government would understand that; would make sure that the necessary support is given to the potential buyers and Tata Steel, working with Welsh Government and the trade unions, so that that viable, promising future would be realised. So, will you, as well as stating the case more generally, as Members have called for already today, Minister, make sure that the Orb works, and the situation there, as well as Llanwern, are at the forefront of your discussions with Tata, with the UK Government, with the trade unions, and all other players in these matters?

I thank John Griffiths for his questions and his contribution, and assure him that Orb is indeed at the forefront of our communications with Tata, and with the UK Government as well. I think it's absolutely essential that if they are to intervene, they won't just intervene with warm words, but with hard cash. And it wouldn't take, in the great scheme of things, a vast sum of money from the UK Government, through the industrial challenge fund, for Orb, to provide it with a future, particularly with regard to the manufacturing of electric vehicles. And, at the moment, as John Griffiths is aware, Orb doesn't currently make the advanced steels used for electric vehicles, but the Syndex proposal outlines the work that would be required in order to move the site to making non-grain-oriented steels, in addition to grain-oriented steels. 

Now, we visited, together with the First Minister, and with Jayne Bryant, the Orb facility back in mid-November. We met with the trade unions' representatives; we met with the workforce, and we discussed the opportunities for the site, which are very, very real. I'm pleased to say that Tata will continue to discuss with potential buyers any opportunity to ensure that there is continued manufacturing at the site, and we will do all we can to ensure that those talks come to a fruitful end. 

Thank you, Minister. And now a question to the Minister for health, and that question is to be asked by Helen Mary Jones.