6. Statement by the Minister for Economy: The Future of the Steel Industry

Part of the debate – in the Senedd at 5:11 pm on 6 July 2021.

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Photo of Paul Davies Paul Davies Conservative 5:11, 6 July 2021

Can I thank the Minister for his statement this afternoon? This statement, of course, is timely, following the UK Government's decision last week to support the UK steel industry by extending safeguard measures. The UK Government has also confirmed that it's reviewing the trade remedies framework as a matter of urgent priority, and that it's also developing a monitoring and surveillance system, which will enable the UK to respond rapidly and decisively to import surges, dumping, and unfair competition. I'm pleased that the Minister has welcomed this development in today's statement, and, as we move forward, it's vital that discussions are ongoing between the UK Government and the Welsh Government, given the complex challenges facing the sector. Therefore, Minister, perhaps you can update us on the latest discussions that are taking place with Westminster and the UK Government in relation to steel safeguard measures and industry decarbonisation more widely.

Minister, we all want to see the Welsh steel industry thrive for the future, and so it's important that both Governments are working together to support the sector from unfair trading practices, a sudden surge of imports, and to ensure that our industry can compete on a level playing field. I appreciate the role that the UK Government has in underpinning the sector too in terms of securing higher end strategic investment and in terms of energy pricing, and that's why collaboration is so important, to ensure that the sector is sustainable and competitive for the future.

Your statement reconfirms that, within Wales, the Welsh Government has committed to achieve a transition to net-zero emissions by 2050, and we know there are some potential ways forward in relation to carbon capture and storage, melting scrap steel and the use of hydrogen instead of coal. Minister, you are right to say that one of the greatest challenges to reaching net zero across the economy is the change needed to electricity supply, and so, can you tell us a bit more about the current work that's taking place to start making progress on this front?

Your statement mentions opportunities to develop marine renewable energy and supporting innovation in new renewable energy technologies, which need to be developed further. Of course, these options require a huge amount of investment and collaboration between governments, industry and, indeed, academia, and there has to be sufficient investment not just to the sector directly but also in fields like research and innovation, to ensure that all opportunities are being explored. Therefore, Minister, perhaps you can tell us a bit more about the levels of investment the Welsh Government is providing, not just to the sector directly, but also in terms of research and innovation, so that Wales is at the forefront of any global and technological developments.

Today's statement talks about Wales's economic resilience, and the COVID pandemic has showed us the importance of developing our domestic manufacturing sector and creating strong supply chains. It's crucial that the Welsh Government is using its levers to maximise any procurement opportunities. And with the news of Nissan expanding its electric vehicle production at its car plant in Sunderland, it's vital that discussions are taking place to ensure Wales's steel production benefits from that announcement. Therefore, Minister, can you tell us a bit more about the Welsh Government's procurement strategy and the steps that are being taken to maximise any procurement opportunities, both in Wales and in other parts of the UK?

Of course, we have to ensure that steel makers have every opportunity to be part of supply chains for publicly-funded projects with a steel requirement, and yet the Welsh Government has recently confirmed that it's looking to shift spending towards better maintaining our existing roads, rather than building new ones. That announcement would surely have an impact on the sector, which would have had a substantial role in supporting those new, major infrastructure developments. And so, perhaps, Minister, you can tell us what assessment was made of the impact on the steel sector of freezing new road projects, and in light of that, what other opportunities the Welsh Government is exploring to maximise the use of Welsh steel?

Now, it's also vital that the Welsh Government develops the workforce and doesn't overlook the opportunities in the steel sector in terms of apprenticeships and skills. Tata Steel, for example, has played a huge role in this particular field, first offering apprenticeships to its employees back in the 1950s. Therefore, I'd be grateful to know what the Welsh Government is doing to increase the opportunities for apprenticeships within the steel sector, and what other programmes and developments are being considered.

Llywydd, we all recognise that global economic conditions continue to be challenging for the steel sector, and that's why it's so important that both the Welsh Government and the UK Government are committed to supporting it to become a sustainable and modern industry. To ensure our steel industry is a success, collaboration is essential—collaboration between Governments, the sector itself, the wider business community and with research partners. Thank you.