Tata Steel: Port Talbot

Debate between Lord Johnson of Lainston and Lord Touhig

Tuesday 19th September 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

Again, I appreciate very much the questions on this extremely sensitive and complex area. It is not the Government who run Port Talbot steelworks or Tata Steel, so I am not able to give a specific figure. We are projecting that at least 5,000 jobs have been saved through this move, and we think that tens of thousands of other jobs will be created through the release of land and the transformation of Port Talbot and the freeport area. I hope that that gives the noble Baroness some security.

[Lord Touhig (Lab)]

My Lords, perhaps I misunderstood, but the Minister seemed to suggest that it was not possible to engage with the workforce before this announcement because there was some sort of commercial sensitivity. What commercial sensitivity would have been at risk from telling the workers that there were to be substantial job losses? Following the comments made by the noble Baroness from the Liberal Democrat Benches, the Minister has now engaged on working with the Welsh Government. Do the Government have a specific package of proposals that they intend to put to the Welsh Government to work in partnership to find new and alternative employment for the people who will be made unemployed in that part of Wales?

[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.