Tata Steel: Port Talbot

Lord Berkeley Excerpts

Tuesday 19th September 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

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.

[Lord Berkeley (Lab)]

My Lords, the Minister will be aware of the great interest from his colleagues in the Department for Energy Security and Net Zero about offshore wind farms in the Celtic Sea. A number of us have been attending meetings about where these would be located and where the shore stations would be, if we can call them that. I live in Cornwall and felt fairly miserable that they could not be built there because there is no flat land big enough for those enormous great tanks to be built—although that is fair enough. Obviously, Port Talbot comes top of the list for having a large number of flat areas and decent quays and, until now, the right steel-making facilities. Is anyone, between the Minister’s department and the energy department, talking about how those facilities could still be built at Port Talbot, even with a new electric arc furnace? Is it the right type of steel, and is there enough space? Presumably, it will create some jobs, which I hope will be welcomed.

[Lord Johnson of Lainston (Con)]

My Lords, I am very grateful to the noble Lord for his comments. I am afraid that I was not entirely clear on some of the points he made, but, as I understood it, he was looking for clean energy supply to the Port Talbot facility. There have been a number of discussions on that, and I share his view on, and enthusiasm for, offshore wind—particularly floating offshore wind—and I believe that all these options are being explored. They will create a huge amount of inward investment, a huge number of jobs and an enormous amount of innovation. The UK is leading the way, as noble Lords know, on the provision and building of offshore wind capabilities.