Tata Steel: Port Talbot - Statement

Part of the debate – in the House of Lords am 6:32 pm ar 19 Medi 2023.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Baroness Chapman of Darlington Baroness Chapman of Darlington Shadow Minister for the Cabinet Office, Shadow Spokesperson (Business and Trade), Shadow Spokesperson (Treasury) 6:32, 19 Medi 2023

Noble Lords will understand that there is deep concern about the loss of as many as 3,000 jobs in south Wales. It is important to remember that, for many communities, this is not happening for the first time. The areas of the country where steel making is still a significant industry are scarred by decisions made in the 1980s in the name of progress by Conservative politicians without any thought to the economic devastation or the need for alternative investment, and no understanding of the damage to community pride, sense of place and even long-term health of the people affected. Doing deals over the heads of local people and then presenting as a success an outcome that costs £0.5 billion of taxpayers’ money and 3,000 jobs, leaving us with only one blast furnace site in the UK and diminished capacity to make virgin steel, shows how arrogant, out of touch, lacking in strategy and blasé this Government have become.

There are some serious questions that the Government have so far failed to answer. First, why was this deal done behind the backs of the workforce and their representatives? Secondly, the electric arc furnace uses scrap steel, but this will not work for Trostre and Llanwern, so where will that steel come from in future? Will it come from India or Turkey? Thirdly, when will a grid connection for the arc furnace be provided? Fourthly, what specifically is the intention for the site? Fifthly, what is going to be done to support the workforce?

Green steel is something that we all support, including workers and trades unions, so the Government need to do much better in planning for transition because, if this mass job loss model becomes the norm, workforce and wider public support will vanish. Transition requires trust, detail, openness and the involvement of all interested parties, and the Government have failed Port Talbot. The most important question that the Government need to answer is simply this: do they accept that the ability to make virgin steel for our national security is strategically important and must be sustained? Will they guarantee that the UK will retain its ability to make virgin steel in future?