3. Statement by the Minister for Economy, Transport and North Wales: Tata Steel

Part of the debate – in the Senedd at 3:26 pm on 17 November 2020.

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Photo of Helen Mary Jones Helen Mary Jones Plaid Cymru 3:26, 17 November 2020

I'd like to begin by thanking the Minister for his statement and for the briefing that he provided to opposition parties on Friday. I'd associate myself with everything that he said about the huge importance of the steel industry to Wales. We tend, for obvious reasons—because of the number of jobs—to focus on Port Talbot, but as the Minister has said, there's a much broader significance. Extremely important in Llanelli, part of the region I represent, are the people employed at the Trostre plant.

Now, in the Minister's statement he focuses a lot on the role of the UK Government and reports back on the discussions that he's had, and obviously all of that is important. I do understand what he says about the need for the UK Government to step in and commit to real and significant support for Tata. But I need to ask him this afternoon: what is his plan if they don't? Experience suggests that we can't rely on this UK Government. If we just think of the recent experience of furlough, where that support was not made available when it was needed in Welsh communities, but it was there as soon as it was needed in Surrey, what reliance can we place on the UK Government for doing the right thing here? What if conditions, as has been reported—those conditions that the UK Government place on that support—lead to really significant redundancies? I have to ask him: is it his understanding that UK Government support, as again has been reported, is likely to be conditional upon the replacement of blast furnaces at Port Talbot with electric arc furnaces?

I agree with everything the Minister has said about decarbonisation, but I hope he would agree with me that this is not the way to do it. Taking on board what the Minister has said about the likely rise in demand for steel in Wales and across the UK, does he agree with me that we shouldn't rush to decarbonise our steel industry in such a way that means that we have to massively increase steel imports, effectively exporting our carbon footprint instead of dealing with it using new technologies and making our steel industry sustainable using, for example, emerging hydrogen technologies? Now, if this isn't a risk, what has been reported, surely it's in the company's best interests in terms of customer confidence for this to be firmly and finally denied, and if it is a risk, then surely we need to publicly debate it and the potential implications.

The Minister refers to Tata reviewing all options to make sure the business is self-sustaining without the need for any funding support from Tata in India in the future, and I'm sure we would all understand why that would be. I understand what the First Minister said to Adam Price about the Welsh Government being at the service of the UK Government and the company at this time. But does the Minister accept that it's dangerous to rely on this alone as a strategy? Shouldn't he and the Welsh Government be, at the same time, exploring other models that would enable the ownership and control of the company to be taken back into Welsh hands if that's what's needed? The Welsh Government was prepared to support a management buy-out, potentially, of Port Talbot a couple of years ago. Will the Minister this afternoon commit to considering other potential ownership models if the approach he's currently taking is not successful? Would he consider a co-operative model? Would he look at a not-for-profit company? And if the UK Government does end up taking a stake in the company, will he commit to finding a way that the Welsh Government can do so too, so that we have a seat at the table when future decisions about this vital industry are made?