1. What assessment has the Counsel General made of the impact that the trade agreement between the UK and EU will have on the future of the Welsh steel industry, particularly the Trostre works in Llanelli? OQ56175

We understand the steel industry and unions have cautiously welcomed the EU-UK trade co-operation agreement. We welcome the tariff-free quotas agreed for GB steel exports to the EU, but share the concerns of the industry about the capacity of sales to Northern Ireland counting against these quotas.  

I'm grateful to the Counsel General for his answer. Obviously, the future of the industry depends on being able to move towards a decarbonised future, and I wonder if the Counsel General can inform of us today of any further discussions that have taken place between the Welsh Government and the UK Government with regard to their support for the future of the industry in Wales in that regard. And can he tell us whether the Welsh Government will be able to make further support available for the company in areas such as skills and research and development, bearing in mind that if we are to have a successful steel industry in future, and to be able to take advantage of that tariff-free arrangement, there'll be an extensive need to update the industry and how it operates? 

Well, in terms of the updating of the industry on the operation of the tariff-free arrangements, obviously, she will know that there is a moment in June of this year when the safeguard arrangements need to be clarified, and we are pressing as a Government for immediate clarification from—[Inaudible.]

Plenary was suspended at 14:28.

The Senedd reconvened at 14:38, with the Llywydd in the Chair.

Jeremy Miles to continue with his response to the question from Helen Mary Jones. 

Diolch, Llywydd. In terms of supporting the steel sector in Wales, in order to respond to the new arrangements, one of the first considerations that we need clarity on with the sector is in relation to the safeguard measures that currently apply to protect certain quantities of steel exports into the EU. Those safeguards expire, as the Member may be aware, in June of this year, and we're seeking immediate clarification from the UK Government about the status at that point. We recognise, certainly, in Wales, that an announcement coming close to the wire would not be in the interests of the sector in Wales.

In terms of the other kind of support that the Member was asking about, obviously we've funded skills support in the sector for a number of years, and continue to do that, including in relation to the workforce at Tata. And, indeed, there's a significant amount of work happening in the sector in relation to decarbonisation, which the industry itself is keen to ensure happens in a way that can support and sustain the industry into the future. And I know in her own—. She mentioned Trostre in Llanelli in her question, and I know from my discussions with Lee Waters, the Member of the Senedd for Llanelli, that he is closely in touch with the works in relation to those sorts of issues as well. 

Thank you, Minister, for that clarity, particularly on the safeguarding agenda, because it is important that we look at how we protect steel imports and exports, and the trade agreement is looking at that. I'm also concerned about, perhaps, how steel comes in and is stored in bonded warehouses or steel stockholders, and the concern is that, when people then say, 'We're using British steel', they're particularly talking about British-sourced steel, not British-produced steel. Now, it's important, therefore, that we go through this next step to ensure that we use Welsh- and British-produced steel, and not simply steel that's sourced in the UK. Will you therefore have discussions with your colleagues in the Cabinet, and with the UK Ministers, to ensure that they now start reflecting upon British-produced steel to ensure that, when they put in their procurement, they are supporting our steel industry and not simply using bonded warehouses to get steel in from elsewhere, which is going to damage our steel industry?

Absolutely. I take very much the point that David Rees raises in his question. It's absolutely essential that we do all that we can, and continue to do all that we can, to support British-produced steel, and in our case, of course, Welsh-produced steel. One of the considerations that we are anxious about is that one of the consequences of the safeguarding arrangements currently in place is that the quota that protects British-produced steel effectively is eaten up, if you like, by transit of steel into Northern Ireland. And so that is one of the concerns—you want to make sure that should not reduce the overall availability of the protection available to British steel.