Tata Steel

Part of 4. Topical Questions – in the Senedd at 3:22 pm on 8 January 2020.

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Photo of Ken Skates Ken Skates Labour 3:22, 8 January 2020

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.