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

Part of the debate – in the Senedd at 3:41 pm on 17 November 2020.

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Photo of Ken Skates Ken Skates Labour 3:41, 17 November 2020

Can I thank Caroline Jones for her questions? I'd agree entirely that the announcement will cause deep concern for workers, but we have to assure those workers that we are all—we are all—determined to safeguard their jobs, to provide the support that's required in order to see Tata's UK facilities become more competitive in the global market, provide more steel for the UK and for other nations. And for the reasons that I've already outlined, I'm confident that Tata are truly committed to the UK.

But, as I've said, also, an early indication will come of their commitment in the form of some of the consultation that will take place now during the company's separation process, including how Tata responds to the needs within the UK for research and development, sales, procurement, digital functions to be re-established. Once we see the re-establishment of those particular capabilities, then we can have even more confidence that Tata is on the right path to securing UK operations and to make them self-financing. Making them self-financing is a considerable ambition, but I think it's one that's necessary to secure all of the UK's plants for the long term. But it will require, as I've said on repeated occasions, direct intervention by the UK Government, and those discussions are ongoing, but I would urge UK Government Ministers to bring those negotiations to a swift and positive conclusion as soon as possible.

Steel workers in Wales and across the UK employed by Tata have suffered anxiety for far too many years now, and it's time that they're given the assurance that, even with those other challenges we face in terms of decarbonisation and Brexit, they will have a future in that sector. Transport for Wales has engaged directly with businesses across Wales, including with Tata Steel, in terms of opportunities for businesses through the metro transformation programme. Other businesses in the steel sector in Wales, the likes of Liberty Steel, for example, they produce a significant amount of steel for Network Rail's operations. So, there are obvious opportunities there with the metro for steel businesses in Wales.

And I've already answered the questions regarding energy, the energy prices, the need for steel businesses in Wales to become competitive. There is the industrial energy transformation fund that I've already pointed to, but we have been ready to work with steel businesses, through some of the research and development and innovation centres that we've been funding, to ensure that they can reduce their carbon emissions, to ensure that they can undergo the transformation that's required to make them competitive globally.