Port Talbot Steelworks

Debate between David T C Davies and Richard Thomson

Tuesday 30th April 2024 Commons Chamber

[Mr Speaker]

I call the Scottish National party spokesperson.

[Richard Thomson (Gordon) (SNP)]

Despite what the Secretary of State may claim, the Government are investing in support of plans that will lead to approximately 2,800 job cuts, along with an irreversible cut in the capacity to produce virgin steel. Tata has announced that it will open a voluntary redundancy scheme on 15 May. Can the Secretary of State update the House on what he expects the redundancy packages to include, and will he join me in condemning threats that the company appears to have made to withdraw enhanced redundancy packages if industrial action goes ahead?

[David T. C. Davies]

Let me answer the hon. Gentleman’s questions directly. The value of the redundancy packages will have to be agreed between Tata and the trade unions, but Tata has made it very clear that it wants to go well beyond statutory redundancy. It has put out several figures, some of which could be more generous if there is no industrial action. I do not want to see industrial action, but I do not condemn the unions either; I think that they have played a very positive role in discussions on the transition board and outside it, and I understand the strength of feeling among people at Port Talbot.

As for the two other points made by the hon. Gentleman, let me say this again, and say it clearly, so that everyone can understand it. Tata came to the UK Government and said that it was going to pull out of steelmaking in south Wales. That decision would have cost 8,000 jobs, as well as, we think, about 12,700 in the wider supply chain. Officials from the Department for Business and Trade wanted to come up with a plan that would save as many jobs as possible, which is where the arc furnace plan has come from. That plan will save 5,000 jobs, with a Government investment of half a billion pounds. It is not the outcome that anyone wants, but it is a better outcome to see 2,800 jobs lost than to see 8,000 lost. Neither is a good outcome, but that is what we wanted to achieve.

Let me repeat that this is not really about a sovereign ability to produce virgin steel. All the elements of steelmaking are being imported from abroad. We are not about to start opening up iron ore mines. Steel is produced here with iron ore from abroad, limestone from abroad, and coke made from coal from abroad. We cannot do this by ourselves. At the same time, we have 8 million tonnes of steel that is being exported. We will be making use of a resource that is already in our country.

Oral Answers to Questions

Debate between David T C Davies and Richard Thomson

Wednesday 13th March 2024 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

5. What recent assessment he has made of the impact of increases in the cost of living on people in Wales.

[The Secretary of State for Wales (David T. C. Davies)]

The UK Government fully recognise the challenges posed by cost of living pressures as a result of the covid-19 pandemic and the war in Ukraine, which is why we have provided £96 billion since 2022 to support households and individuals across the United Kingdom —an average of about £3,400 per household.

--- Later in debate ---

[David T. C. Davies]

The hon. Gentleman is a champion of constituents in rural areas such as his, and I am happy to look at any information that he wants to give, but I hope that he will recognise that the increase in the living wage will have helped his constituents, even those who work seasonally. That is alongside the extra payments that the Government have made to households in which people are living on benefits or have disabilities.

[Richard Thomson]

Is the Secretary of State aware of a report published this morning by the Trussell Trust? It states that 55% of the people receiving universal credit in Wales ran out of food last month and could not afford more, nearly 40,000 have needed to use a food bank in the last month, and four in 10 have fallen into debt because they could not keep up with their bills. Whatever the UK Government are doing about this, it is clearly nowhere near enough. What is the Secretary of State going to do about it?

[David T. C. Davies]

The focus of this UK Government is on ensuring that people can work and do not have to live on benefits, but we recognise that there are those in need. That is why pensions, benefits and the living wage have all risen in line with inflation, and why we have ensured that additional payments are made to pensioners, those living on benefits and households where there has been disability. The fact is that people on low wages will not be helped by the plans of the hon. Gentleman’s Government in Scotland—and, indeed, the Labour Opposition—to shut down the oil and gas industry, which would throw 100,000 people out of work.

Oral Answers to Questions

Debate between David T C Davies and Richard Thomson

Wednesday 6th December 2023 Commons Chamber

[David T. C. Davies]

I am absolutely delighted to agree with my hon. Friend: the UK Government are putting Wrexham on the map. I was, of course, delighted with the £160 million investment zone across Wrexham in Flintshire, which was marked by a visit from the Chancellor to the area. The £20 million towns fund for Wrexham will ensure long-term certainty and investment for the area and for the growth deal. I believe that the freeport in north Wales will also benefit my hon. Friend’s constituents.

[Richard Thomson (Gordon) (SNP)]

According to research from the Bevan Foundation, nearly one in four Welsh children have reported having recently been worried about being cold, and around one in eight have worried about being hungry. What are the Government going to do about that?

[David T. C. Davies]

The UK Government have spent £96 billion on measures to help the least well off across the United Kingdom throughout the difficult times brought about by the covid pandemic and the war in Ukraine. On top of that, in the autumn statement we were able to announce a cut in national insurance, which will put more money into people’s pockets. I hope that the hon. Gentleman will be talking to his constituents, who are no doubt hit by the highest taxes in the whole United Kingdom as a result of the policies of the Scottish National party Government.

Oral Answers to Questions

Debate between David T C Davies and Richard Thomson

Wednesday 18th January 2023 Commons Chamber

[The Secretary of State for Wales (David T. C. Davies)]

The Welsh Government are well-funded to deliver public services in Wales. As a result of the autumn statement, Welsh Government funding is increasing by around £1.2 billion over the next two years. That is on top of the additional £2.5 billion a year on average announced at spending review. The Prime Minister has also been clear that we will halve inflation to ease the cost of living.

[Richard Thomson]

The Secretary of State says that the budget is increasing by £1.2 billion over the next two years, but inflation has already eroded the purchasing power of the Welsh Government in the current year by £1 billion. Since the UK Government are responsible for approximately 80% of the resource base of the Welsh Government, what further representations does he plan to make to the Chancellor of the Exchequer to ensure that that purchasing power for essential public services in Wales is made good?

[David T. C. Davies]

The overall funding amounts for the devolved Administrations, including the Welsh Government, have still increased in real terms over the period despite the impact of inflation. If the hon. Gentleman is serious about dealing with inflation, I hope he will support this Government as they propose to halve inflation over the coming year. In doing so, we will need to carefully control public spending in areas such as pay.