Tata Steel: Port Talbot - Statement

Part of the debate – in the House of Lords am 6:53 pm ar 19 Medi 2023.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Lord Johnson of Lainston Lord Johnson of Lainston Minister of State (Department for Business and Trade) 6:53, 19 Medi 2023

I thank the noble Lord for a point well made. The Welsh Government and the UK Government are working together on a transformational transition board. Forgive me for not having the specific nomenclature for it, but it is a collective group led by the UK Government, with participation from the Welsh Government, to ensure that there is strong transition for the people and communities most affected. That includes £100 million, with a substantial contribution from Tata, to ensure that there is money available for that transformation and the transition for the affected individuals and communities. That is a very important commitment. As I said, if we look back 40 or 50 years, it was perfectly reasonable for the charge to be raised that there was not enough done to allow communities and individuals to transition properly from one industrial position to another—that is something that we will not allow to happen. It is absolutely essential that we work closely with the Welsh Government; I see this as a partnership between the two Governments of the UK and Wales. As I responded to the noble Baroness, this is the exact benefit of a strong United Kingdom and a strong union.

I will return again to the point raised about the consultation process on this commercially sensitive and complex arrangement. It is impossible to know what the ramifications of a transformation will be until you have decided what the funding and financing behind it will be. Tata is investing over £1 billion in this transformation programme and the UK Government are putting in £500 million. Until that had been confirmed, it would have been impossible—noble Lords must surely realise this—to know what the future of the site and its industrial capability would be, and, as result, what the projections on the consultations for employment would be. I have great sympathy with both the Government and Tata for making sure that there was a high degree of confidentiality around the specific deals. But make no mistake: this discussion has been going on for a decade and the outcome is no surprise to anyone in this House or in Port Talbot. What is a delight and to be celebrated is that we have come to a decision; people no longer have to worry about a decision that has not been taken. Now we can get on with the job of delivering a transformed Port Talbot steelworks, a strong partnership with Tata and a very strong partnership between the UK Government and the Welsh Government.