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

Part of the debate – in the Senedd at 5:23 pm on 6 July 2021.

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Photo of Luke Fletcher Luke Fletcher Plaid Cymru 5:23, 6 July 2021

Of course, thank you to the Minister for his statement and the copy of his statement in advance. There's some good news in the steel industry at the moment. I'm told that the market is at a 15-year high, so now is the perfect time to look at developing the sector for the future, which is why I think this statement is very welcome.

A few questions and points. First of all, will the Welsh Government be publishing a long-term strategy for the development of research and development for the steel sector in Wales? I'm sure the Minister is aware that currently Tata Steel are looking to separate the UK and Dutch sides of the business. In fact, I believe that's out for consultation right now, so, as far as I'm aware, as part of any potential strategy, it would be important to see how this would affect the UK industry if it were to go ahead. Given that we've declared a climate emergency, R&D in particular will be vital to the sector, especially given that, as things stand, the path to decarbonisation for steel isn't as clear as other sectors, even though renewable energy, of course, is very reliant on steel in the first place. To that end, what discussions has the Welsh Government had with the UK Government on what funding would be made available, whether that's through co-investment or solely through the Welsh or UK Government?

Another important consideration, of course, relates to energy and pricing, as the Minister pointed out. I'd be interested to know what measures the Welsh Government will be taking to make prices more competitive for the steel industry, similar to what has been done already in Germany. It's welcome, of course, to hear that the Minister raised marine renewable energy, and I'm looking forward to seeing the Government's ambition here and, hopefully, that will lead to the Swansea bay tidal lagoon in the long term. I'd also be interested in knowing what role the Minister thinks community-led energy projects have, not only in creating more competitive prices, but also in increasing capacity on the local grid for the sector in Wales.

Further to this, what support will the Welsh Government be looking to give regarding recycled steel? The Minister alluded to it in his statement, but there currently seems to be an issue with the quality of scrap coming through, specifically issues surrounding contamination from dirt, plastics and other metals. I'm sure the Minister is also aware, of course—and I'm pretty sure he alluded, again, to it in his statement—of the SUSTAIN project, through Swansea University, which has yielded very positive results relating to the separation of metals in scrap. The project, of course, has an important role to play when it comes to recycled steel, so I would be interested to hear if the Welsh Government has had any further conversations with the sector and the team behind SUSTAIN to see how their work can be carried forward. 

And finally, I've mentioned it several times in the Chamber before, but what plans does the Welsh Government have to pursue a similar set-up to the Scottish Government in setting up a just transition commission? As I mentioned at the beginning of my contribution, industries like steel do not have a clear path to decarbonisation, and so workers in those industries are at more risk of job insecurity, going forward, as we look to decarbonise. I'm sure a strategy to safeguard workers would be gratefully appreciated. Diolch yn fawr.