Alex Cunningham
Main Page: Alex Cunningham (Labour - Stockton North)Department Debates - View all Alex Cunningham's debates with the Wales Office
(2 months, 4 weeks ago)
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Chris Elmore (Ogmore) (Lab)
Alex Cunningham (Stockton North) (Lab)
The Secretary of State for Wales (David T. C. Davies)
The Government are investing £500 million to secure the future of steelmaking in Port Talbot for generations to come. It is one of the largest UK Government support packages for steelmaking in history, and it will protect 5,000 jobs directly with Tata and many thousands more in the supply chain.
David T. C. Davies
As the hon. Gentleman knows, Tata approached the UK Government and said it was intending to pull out of the United Kingdom. If Tata had pulled out completely, that would have immediately cost 8,000 jobs and many thousands more in the supply chain. The Government therefore acted to take the only deal available, which was to build the electric arc furnace and save thousands of jobs.
Alex Cunningham
I do not think that thousands of jobs will be saved at all. The people of Teesside, who saw the Tory Government abandon them and end virgin steelmaking at Redcar, leading to the loss of 3,000 jobs, will sympathise with those in Wales. The failure of the same Government will see virgin steelmaking also ended in Wales, with the loss of another 3,000 jobs, and leave the UK even more reliant on imports, as they are surrendering the market to other countries. Why would the Government want to do that when steel is a foundation industry and, with the introduction of new technologies, could have a bright future?
David T. C. Davies
I hope that the hon. Gentleman will be aware that 100% of the materials—the iron ore and coke—used to produce steel in Port Talbot are imported from abroad. At the same time, we are exporting 8 million tonnes of scrap steel, so building an arc furnace to make use of that scrap steel will make us less dependent on other countries for our steel.
As far as job losses are concerned, the UK Government have put aside a budget of £80 million, combined with £20 million from Tata, to support anyone who loses their job. Thus far, we have not had one single penny towards that from the Welsh Labour Government—who, by the way, are able to find £100 million to create a whole load of extra Senedd members in Cardiff Bay. I know where my priorities are: with the steelworkers.