Jessica Morden
Main Page: Jessica Morden (Labour - Newport East)Department Debates - View all Jessica Morden's debates with the Cabinet Office
(10 months ago)
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Jessica Morden (Newport East) (Lab)
Happy birthday to my hon. Friend the Member for Neath (Christina Rees). I commend my hon. Friend the Member for Llanelli (Dame Nia Griffith) for securing this important debate. Its importance was highlighted for me and other hon. Members on Saturday, when we marched in solidarity with the workers of Port Talbot and Newport and the unions, which I praise for their work. There was a lot of strong political support on both marches, including from my hon. Friend the Member for Newport West (Ruth Jones).
We should never underestimate just how difficult a time this is for these highly skilled workers and their families. I should point out to the Minister that the average age of a steelworker in Llanwern is now 34, so they are people with mortgages and families to support. That will also be true for those at Port Talbot, represented by my hon. Friend the Member for Aberavon (Stephen Kinnock). In my time as an MP, I have seen year after year just how workers in Llanwern have repeatedly had to adapt and innovate to keep the business alive. I pay tribute to them for that. These are well-paid jobs and, as we often say, for every one job in the plant, there are estimated to be three more in the wider community.
I am sorry that the Government and the company have put the workers in this position. We feel deeply for them and we commend the unions for all they are trying to do, because this is a bad deal for steel. We need the best deal for steel, not the cheapest deal for steel, which is what the Government are offering. As the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) said, no matter how the Government dress it up, they are giving £500 million to Tata to make redundant up to 3,000 people—300 in Llanwern. In doing so, they are in effect ending our history of making virgin steel—we will be the only country in the G7 and G20 not to do so—at a time when we will need this steel to build our green infrastructure.
At a time of global insecurity, we will be reliant on imports. The Secretary of State for Wales claimed on Monday that closing the blast furnaces will make us “less dependent on imports”, when he knows that Tata will have to import steel shipped in diesel-fuelled vessels from India. As the Welsh Government’s Minister for Economy, Vaughan Gething, has said, the UK Government are alone in seeking to propel the steel industry off a cliff in this way. In the Netherlands, Sweden and Canada, we see Governments working in partnership with their steel industry.
The UK Government are not contemplating the multi-union plan, which promises a fairer, just transition to a greener future for the sector. The UK Government shut the Welsh Government and unions out of decision making on this matter, and the Secretary of State has claimed that those proposing credible alternatives to protect jobs and virgin steelmaking for the future are “unconstructive”. These are plans that his Conservative colleagues in the Senedd backed in a vote very recently. Then we have the Secretary of State for Business and Trade calling plans to make up to 3,000 people redundant a “good news story”.
We are now in the third week of the formal consultation period, and Ministers continue to signal that this is a done deal. Will the Minister confirm today that she will not undermine the consultation and that she is still willing to engage constructively with Tata and the trade unions should the opportunity for an alternative approach arise? Will she also set out whether she has had assurances from Tata that the consultation will be given as much time as it needs—beyond the 45-day mandatory minimum, if necessary—for a path forward to be agreed? There is still little detail available about how the funding available to the transition board is planned to be spent. Will she also elaborate on that and confirm whether steelworkers, supply chains and communities that may be affected beyond Port Talbot, including in my own constituency, will be supported?
We have often said this, but we have had 12 Steel Ministers and 14 years of inaction, with this Government vacating their role as the champion for our steel industry in a green industrial future. It is the Labour party that is filling the void of ambition by committing to accelerate a £3 billion green steel fund to invest over the next five years in the future of our sovereign steel industry. I strongly urge the Government to look again at the deal. If they will not step up and look again, they should step aside and let us have a Government who will.
Jessica Morden
On the issue of competitiveness, we pay 50% more for our energy costs in this country than they do in Germany. The German Government are putting around £2.6 billion into helping the industry transition. That has a major effect.
Ms Ghani
I will go on to answer that point. We have provided support for the energy costs of high-energy industries, and the supercharger initiative is coming down the line, but I will reflect on that point shortly.
The reality is that the Port Talbot plant would have been in jeopardy. Its closure would have had devastating consequences for the town and would have posed a serious threat to the UK as a whole, endangering the 8,000 jobs provided by Tata Steel across the country and numerous small businesses in the steel making supply chain.