Port Talbot Steelworks

Debate between Holly Mumby-Croft and David T C Davies

Tuesday 30th April 2024 Commons Chamber

[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.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Back home in Scunthorpe, we watch very closely what is happening in Port Talbot. What work has been done to determine the quality of those 8 million tonnes of scrap and whether it will be suitable for use in the electric arc furnaces? May I also ask my right hon. Friend to reflect on this point? When it comes to sovereign capability, the issue is not always what you are doing and choose to make; it sometimes comes down to what you may need to make at some point in the future. May I remind my right hon. Friend that we have a perfectly good mine full of coke and coal in Cumbria, and that there is an awful lot of limestone under the ground in this country as well?

[David T. C. Davies]

My hon. Friend is right that if we wanted to, we could probably find iron ore, coke, coal and limestone in the UK, but I do not see any great enthusiasm at the moment for opening up the mines to do that. As for the 8 million tonnes of scrap in the UK that will go into the arc furnaces, officials from the Department for Business and Trade and EY have gone over very carefully the business plan being put forward by Tata. Let me point out to my hon. Friend that not only are the UK Government investing half a billion pounds, but Tata is investing £750 million, so Tata obviously feels that there is a good, strong, commercial case for building that arc furnace, and is putting its money where its mouth is.

Protecting Steel in the UK

Debate between Holly Mumby-Croft and David T C Davies

Tuesday 23rd January 2024 Commons Chamber

[David T. C. Davies]

The Welsh Government have made it clear that they are not able at the moment to put in the sort of money that would be needed to come up with any kind of different plan. There is no other plan on the table, which is why we find ourselves in the situation we are in.

I will turn very quickly to a couple of points that were made. First, on primary or virgin steel, obviously all the iron ore and coal used in the plant is being imported. We are, therefore, at this moment, dependent on other countries for our virgin steel capacity. The advantage of an arc furnace, although this is not the situation that I want to be in, is that we would not be dependent on foreign countries for the supply of steel because, as the Minister for Industry and Economic Security, my hon. Friend the Member for Wealden (Ms Ghani) pointed out, we currently export 8 million tonnes.

[Holly Mumby-Croft]

Will the Minister give way?