Tata Steel

Part of 5. Topical Questions – in the Senedd at 3:53 pm on 11 March 2020.

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Photo of Ken Skates Ken Skates Labour 3:53, 11 March 2020

Can I thank Dai Rees for his questions and the points that he's made, which are absolutely right? After I repeatedly called for a UK steel round-table to be convened, one was convened on 5 February. There were two major issues raised at that round-table: one concerned procurement and the need to ensure that we use steel produced in the UK on UK infrastructure projects, and then the second concerned the incredibly high cost of energy and the need for the UK Government to address this. 

Now, Dirprwy Lywydd, I haven't been able to check on the very latest announcements as part of the budget, but the message was absolutely clear at that round-table that the Government had to take an opportunity in this budget to announce measures to alleviate the high and volatile costs of electric. That is absolutely vital if the sector is to transition to a low-carbon position in the years to come, which will be assisted by, of course, development money from Welsh Government and UK Government. 

A lot has been said about funds such as the industrial energy transformation fund and the clean steel fund, but I think we need to bear in mind the scale of these funds compared to funds that are being rolled out elsewhere. It amounts to about £500 million in total over several years for the whole of the sector in the UK and, indeed, other sectors where energy-intensive operations are found—£500 million over several years. Compare that with the £5 billion that the Dutch Government is investing every year in decarbonisation of industry, and that demonstrates why the UK Government really does need to take more ambitious action in this regard, listen to the steel sector and implement change as necessary.

Now, Dai Rees is absolutely right that, whilst it would be inappropriate to discuss at length a leaked memo, it does give us heart that we're seeing a movement in the right direction insofar as Tata is concerned and the Welsh plants are concerned. I can inform Members that I, along with the First Minister, had a very, very productive meeting with Henrik Adam, CEO of Tata Steel Europe, just a few weeks ago where we discussed a number of issues, including their transformation plan. The company made it clear that they would be providing me with a formal update on the impact on the Welsh sites according to their transformation plans as soon as that information is available. They're still looking into issues concerning the identity of the proposed jobs that will be lost, but I pledge to update Members as soon as I have had that formal notification.