Oral Answers to Questions

Jo Stevens Excerpts

Wednesday 18th January 2023 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[Jo Stevens (Cardiff Central) (Lab)]

This month has seen dreadful news for steel businesses and steelworkers in Wales. Steel is an energy-intensive industry, and its operating costs during the cost of living crisis have rocketed. Thirteen years of Conservative Governments have seen decline, offshored jobs and damaged communities.

Steel is integral to a modern economy. Labour will put Welsh and UK steel at the heart of our wider industrial policy, building wind turbines, railways and investing in carbon capture and storage and in hydrogen infrastructure. Other than creating a cost of living crisis, what is the Government’s plan for our steel industry and for steelworkers’ jobs?

[David T. C. Davies]

First of all, the news from Liberty in Newport was very disappointing and is very concerning for many people. That has not come about as a result of actions by the UK Government, as I think the hon. Lady will recognise; there are other issues pertaining there.

The UK Government are completely committed to the steel industry. We demonstrated that with a £30 million loan to Celsa during the covid crisis, and we have demonstrated it with the various schemes that have been brought forward to support industries with high energy use. We are developing a scheme that will enable those in the industry, such as Tata, to decarbonise. We are also in discussions with Tata about how we can support it further over the coming years.

[Jo Stevens]

Steelworkers need a Government on their side. The industry needs a partner that can provide stability, not sticking plasters. Floating offshore wind in the Celtic sea is a real opportunity for our steel industry and the wider supply chain in Wales. It would also help to mitigate the impact of the cost of living crisis for many Welsh businesses in the supply chain. If the Government do not provide the necessary stability, we will see platforms being built in France and Spain and floated over to the Welsh coast, which would be absolutely unconscionable. What is the Secretary of State doing to ensure that the Crown Estate leases will use local supply chains in Wales?

[David T. C. Davies]

I have met the Crown Estate on a number of occasions to discuss the next bidding round for the sites out in the Celtic sea. Obviously we hope to develop the industry. I agree with the brunt of the hon. Lady’s question, which is about the importance of developing a floating offshore wind industry off the coast of Wales. I have been trying to ensure that the supply chain is as local as possible. That is why we have supported the conversations between developers and the Crown Estate; it is also why I have personally visited Pembrokeshire to ensure that the growth deal there supports the new infrastructure at the dock that can allow those projects to be floated out to sea. We are actually doing a great deal to support the floating offshore wind industry in Wales.