Steel Industry: Wales

Debate between Christina Rees and Jonathan Edwards

Wednesday 21st February 2024 Westminster Hall

[Christina Rees (Neath) (Lab/Co-op)]

Thank you, Sir Gary—21 again! As always, it is a pleasure to serve under your chairmanship.

I congratulate my hon. Friend the wonderful Member for Llanelli (Dame Nia Griffith) on securing this vital and timely debate. As we contemplate the future of the steel industry in Wales, we are discussing not merely the fate of an industrial sector but the heartbeat of a nation’s economy and identity, and nowhere more so than in the Swansea bay region generally and Port Talbot specifically. The area that includes my Neath constituency and its town has long been synonymous with steel production, its history intertwined with the rise and fall of coal and the resilience of its workforce. Today we stand at a pivotal moment in that narrative, poised to script the next chapter in the saga of Welsh steel.

The challenges facing the steel industry are undeniable. Global competition, fluctuating market demands and environmental concerns loom large on the horizon, yet alongside those challenges lies the opportunity to bring about transformation and renewal. The industry cannot do that against a backdrop of uncertainty and a diminished workforce. The idea that 2,800 jobs will be lost from Tata Steel operations across the UK—the majority from Port Talbot—is unthinkable. The rejection of well thought out union plans for a gradual transition to decarbonisation means the almost immediate closure of two blast furnaces. The single electric arc furnace replacement will obviously produce less carbon dioxide, but also fewer jobs.

First and foremost, innovation must be at the fore- front of our endeavours, from embracing advanced manufacturing techniques to investing in research and development. We must harness the power of technology to drive efficiency and sustainability. Innovation will always be the cornerstone of a vibrant steel industry in Wales, but electric arc furnaces do not produce virgin steel and the difference must be considered. The UK has only two sites that use conventional blast furnaces—Scunthorpe and Port Talbot—which collectively produce 5.9 million tonnes of steel per year and make up 82% of UK steel production. Despite the UK importing most of its virgin steel, the notion that we become a country that produces none is beyond the pale. British Steel, the owner of the Scunthorpe plant, is also planning to replace its virgin steel production by 2025. Should that happen, the UK will become the only G20 country that does not produce its own virgin steel. The consequences need to be fully understood.

Secondly, collaboration is essential for success. Alongside partnerships forged between industry, academia and the community, the UK Government need to step up to the table. A £500 million grant is welcome, but much more can be done on energy prices, R&D support and fiscal leverage. In addition, neither the Welsh Government nor the unions were involved in discussions prior to the announcement of the investment deal. The multi-union plan called for an additional investment of £683 million, involving a two-stage transition that would protect a further 2,300 jobs for over a decade, and not involving a single compulsory redundancy. The plan accepted that one blast furnace, and potentially the coking ovens, would close during a managed transitionary period that involved producing iron for use in the new electric arc to be installed by 2031. The second blast furnace would close in 2032.

It is clear that sustainability must be a guiding principle. We are all aware that the steel industry has a significant environmental footprint, and we cannot ignore our responsibility to future generations. By investing in clean technologies, reducing carbon emissions and promoting circular-economy practices, we can minimise our impact on the planet, while maximising our long-term viability. Sustainability is not just a moral imperative; it is also a business imperative, as consumers and investors increasingly demand ethical and eco-conscious products.

Although I appreciate the need for decarbonisation, we must remember that steel accounts for only 14% of industrial emissions in the UK, which in turn is around only 2% of total national emissions. Importing virgin steel simply transfers the emissions and decarbonisation responsibility. Such overseas manufacturing is also far more carbon-intensive.

Lastly, we must never forget the human element at the heart of the steel industry. Our success is built on the dedication and skill of the men and women who toil day in, day out. As we navigate the challenges of the future, we must prioritise the wellbeing of our workforce today, ensuring fair wages, safe working conditions and opportunities for growth and advancement. A thriving steel industry is not just about profits; it is about empowering communities and enriching lives. Employment in the steel industry is not what it used to be, but a quarter of all steel industry employees work in Wales. As such, job losses are disproportionately felt in Welsh communities.

[Jonathan Edwards]

I commend the hon. Member on her excellent contribution. Is the reason for the backlash to this announcement not the fact that it appears that the UK Government are providing £500 million to lose 3,000 jobs in Wales, which has been a massive PR disaster for them?

[Christina Rees]

I completely agree with the hon. Gentleman, and thank him for his important point.

The future of the steel industry in Wales is not predetermined; it is ours to shape and define. By embracing innovation, fostering collaboration, championing sustainability and prioritising our people, we can build a future where Welsh steel shines brightly on the global stage. The story of steel should not feature uncertainty, job losses and community adversity. Let us write the next chapter in the industry’s history: one of resilience, renewal and prosperity for generations to come.

Groceries Supply Code of Practice

Debate between Christina Rees and Jonathan Edwards

Monday 22nd January 2024 Westminster Hall

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

I congratulate my hon. Friend on her introductory remarks and welcome the debate. The last few years have been very difficult for farmers, with inflation in the wider economy increasing their input costs substantially: we need only to look at fertiliser for one example. The reality is that they are very exposed in the supply chain, so we need to look at how we can strengthen support for our primary producers.

[Christina Rees]

My hon. Friend is a champion for the farmers in his constituency, and I hope to come to those issues later in my speech.

Welsh Affairs

Debate between Christina Rees and Jonathan Edwards

Thursday 27th February 2020 Commons Chamber

[Christina Rees]

Thank you, Madam Deputy Speaker. I am going to finish now, because I am sure that lots of other Members want to speak.

[Jonathan Edwards]

Will the hon. Member take a friendly intervention before she moves on?

[Christina Rees]

I was getting to the good bit, but I will give way to my constituency neighbour.

[Jonathan Edwards]

I am sure the hon. Member will also have some concern about the negotiating mandate set out today by the British Government in relation to the second phase of Brexit and the trade negotiations. Indeed, the Welsh Government have issued a stern statement indicating that they were not consulted at all about the mandate. I fear that the best we can hope for is a bare-bones free trade agreement. The Welsh economy will be more exposed because of our reliance on exports into the single market. What does the hon. Member think the Welsh Government should do now, since the British Government clearly are not taking any notice of Wales’s position?

[Christina Rees]

The hon. Member makes some very good points. It has been a concern of mine for a long time that the Welsh Government have not been involved in the negotiations. They have to be involved; this is the future of Wales that we are talking about. I am really disappointed that they have not been involved to the extent that they should have been.

Now I come to the good bit. The House will know how passionate I am about sport. Wales is a sporting nation. When Wales wins the people of Wales are very happy. When we lose it is the end of the world. I went to the Wales versus Italy match, which was a great result, as the House knows—I don’t think I want to talk about the other matches, so I will move swiftly on.

My constituency of Neath has a proud sporting history. The Welsh Rugby Union was created in the Castle Hotel in Neath. The best player in the world, Gareth Edwards, was born and bred in Gwaun-Cae-Gurwen. Dan Biggar’s family was born and bred in the Dulais valley, where I live, as was Dennis Gethin, who recently stood down as chair of the WRU. Of course, Neath RFC are also called the All Blacks—a great tribute.

In a former life I was a squash player and played for Wales over 100 times. It was a great honour to pull on the red jersey of Wales. I became national coach for Squash Wales, and one of my roles was to develop squash for all ages and all standards throughout Wales. We have a superb junior development structure, which has produced some great players. I am very proud to say that on St David’s Day we will have two senior players ranked in the top 10 in the world, and they have both come through the junior structure: Tesni Evans, based in Prestatyn, is two times British champion and bronze medallist at the last Commonwealth games; and Joel Makin from Aberdare, a member of the Welsh men’s team who came third in the last world championships. Wales is again showing that we are punching above our weight.