Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning
We recognise that the UK Government needed to take action today to introduce the Steel Industry (Special Measures) Bill - (Steel Industry (Special Measures) Bill - Parliamentary Bills - UK Parliament) – as a direct response to the exceptional and unique circumstances faced during its negotiations with Jingye, the owners of British Steel.
Steel is at the core of so much economic activity in Wales and the UK. It is a vital material for our current and future success. Construction, automotive, infrastructure and renewables all rely on steel. Steel will be at the heart of the development of new industries as well as supplying our current manufacturing base. With the events we are experiencing globally, now more than ever, we must do all that we can to protect our steel industry.
Steel has also been at the heart of our communities for generations. We therefore understand better than others what the community in Scunthorpe is going through faced with uncertainty over the future of the British Steel plant and our thoughts are with them.
The situation debated in the UK Parliament today is different from the one we faced with Tata Steel. The deal secured in Wales was a deal not just for the here and now but also for the future of steel. The UK Government following its election was able to negotiate a much better deal for the Tata Steel plant in Port Talbot than the plan announced in September 2023. It may not have been the deal that we would have wished for, but, given the parameters and the time pressures to secure the build of the new Electric Arc Furnace, it was a substantially improved deal.
The transition to an electric arc furnace at Port Talbot builds a bridge to a more sustainable future for the company. We want our steel sector in Wales to thrive and the transition now taking place at Port Talbot provides a clear and set path for a long term future. We continue to engage with the company on the transition, the significant opportunities and its future plans including for the downstream sites throughout Wales.
We recognise this transition is having a significant impact on our communities and businesses. Through the continued work of all the partners on the Tata Transition Board we are providing advice and support to those affected and will continue to do so.
The Board has brought all our collective support mechanisms together, including those provided by local community groups to provide a holistic approach to helping those workers, their families and the wider communities impacted by Tata’s transition. A webpage is available on the Neath Port Talbot Council website providing access to the support available.
The new UK Government also committed a £2.5 billion National Wealth Fund for the steel sector along with a new Steel Strategy. Today’s debate on the Bill confirmed this is in addition to the £500m going to Port Talbot and will offer further opportunity for investment in the industry in Wales. I have been pleased to sit on the Steel Council which is overseeing work to develop a new Steel Strategy.
It is critical that Welsh based steel companies benefit from the fund through capital investments and through policy developments that can further secure the future of the industry and create meaningful jobs. I have written today to Jonathan Reynolds, Secretary of State for Business and Trade confirming a shared position and commitment to the whole of the steel sector in the UK specifically sites in Wales.
Steel sits at the heart of a much wider transition in Wales. We have a strong holistic vision for the transition of the Wales and the South Wales region based on new infrastructure and investment.
This is an exciting vision with broad stakeholder support and transformation for the region into the long term. However, this needs a fully joined up approach with support from the UK government and we will be looking to see that materialise through work on the UK Industrial Strategy.
We will continue to work closely with the UK Government to ensure that Wales gets its full share of investment and policy support so that our steel industry can thrive for the long term and our communities can recover and face a more certain and successful future, and we look forward to making an oral statement on this issue to Members on 29 April on our return from recess.
This statement is being issued during recess to keep Members informed. Should Members wish me to make a further statement or to answer questions on this when the Senedd returns, I would be happy to do so.