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Steel Industry

Volume 608: debated on Wednesday 13 April 2016

The steel industry is currently dealing with unparalleled global economic conditions and the UK is deeply concerned by the social and economic impact that they are having in south Wales. While we cannot change the status of the global steel market, our objective remains to overcome the challenges and play a positive role in achieving a sustainable future for the steel industry in Wales and across the UK.

I thank the Minister for that answer. Does he agree that in order to secure the future not only of the Port Talbot site but of Tata sites around the UK, no option should be ruled out?

I pay tribute to my hon. Friend for the way in which he has represented the interests of his constituents and of those who depend on steelmaking in his area. He recognises the way in which the plants are interlinked and he has been working closely with the Business Secretary and me to help to support a secure future. I can reassure him that no stone will be left unturned to secure a long-term future for the Corby plant as well as for every other plant across the UK.

I welcome the Secretary of State and his deputy to their new positions and assure you, Sir, that I will endeavour to give them ample opportunity to explain themselves after my questions. Why did the Secretary of State not travel to Mumbai for the Tata board meeting of 29 March?

The Government have been in close dialogue with Tata steel for many months. My right hon. Friend the Business Secretary was at Tata the month before the Mumbai meeting and had engaged with its directors well before that. I am sure that the hon. Gentleman will be grateful that as a result of the Government’s actions we managed to avert the immediate closure of the plant and propose a sale.

I will give the Secretary of State another go. Did he fail to attend the meeting because a more senior Cabinet colleague told him not to do so? Did he decide not to go off his own bat? Or was it more down to the fact that, as the Minister for Small Business, Industry and Enterprise said of her boss the Business Secretary to the Select Committee on Welsh Affairs yesterday,

“He would not have gone to Australia had he known that they were going to close the ruddy works”?

What stopped our Secretary of State? Was it the Cabinet’s pecking order, was it indolence, or was it just plain ignorance?

I am disappointed with the hon. Gentleman’s approach. Steelworkers want to see Government and Opposition, and the unions and the company, work together to secure a long-term future. The Government have been in a long-term dialogue, which is demonstrated by the ongoing sales process, as opposed to the plant facing the risk of immediate closure.

Will my right hon. Friend assure me that he and the Wales Office will work with all relevant Government Departments to ensure the long-term future of Port Talbot, particularly for the workers who live in my constituency?

I pay tribute to my hon. Friend. He met the Business Secretary last week, and he and I have had several conversations about support for his constituents who depend on the plant, demonstrating its regional impact. The Government are determined to do everything possible to secure a long-term, viable future for the plant.

As the Secretary of State well knows, at sites across Wales, such as Shotton, Llanwern, Orb, Trostre and Port Talbot, Tata steelworkers produce a whole range of specialist products. What assurances has he obtained from Tata that it will not siphon off the production of the most profitable lines to their plants aboard? What guarantees has he received that the intellectual property will remain with the Welsh operations in order to attract a suitable buyer and safeguard thousands of Welsh jobs?

The hon. Lady makes an important point about the sale of the operations in the United Kingdom, which demonstrates the positive engagement between the UK Government and Tata Steel that has resulted in its decision to sell off all its operations, rather than simply to dispose of what some might see as the more profitable assets.