The Steel Industry

Part of 3. Questions to the Minister for Economy – in the Senedd at 3:03 pm on 31 January 2023.

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Photo of Vaughan Gething Vaughan Gething Labour 3:03, 31 January 2023

Yes, I'll certainly do that. And it's not just about meaningful investment, but you're right to point out that the industry itself recognises that it needs to chart a path to decarbonisation for a sustainable future. But, to do that, we shouldn't simply collapse our own capacity within the UK and end up importing steel without understanding the carbon footprint of steel produced in other parts of the world. This is a set of questions that will affect other Members in the Chamber. I see both Newport constituency Members with an interest in what's happening with Liberty; the Deputy Presiding Officer can't speak, but he's obviously got a significant interest too.

What we have been calling for is to get us to that greener future for steel production, and to recognise that it's important for a range of industries today. That means action on the high costs of energy compared to European counterparts. That also means action on scrap exports. We export millions of tonnes of scrap metal every year; we should be keeping more of that in the UK for our steel sector. We also want the UK Government to partner with the industry to chart out some of the challenges over capital investment. We also want to see investment in hydrogen as an alternative for blast steel technologies in the future, rather than seeing all of that take place in other parts of the world.

So, there are direct jobs, there are dependent jobs in the supply chain, and, of course, large industries, whether it's construction or manufacturing, that are reliant on steel, including the big opportunities that exist in marine energy and floating offshore wind. I want to see British and Welsh steel in those products in the future, and that requires a different approach from the UK Government. A £600 million offer between two companies isn't going to get us where we need to be, but at least there is an offer for us to work with, and hopefully see an end result that all of us can celebrate and be positive about.