Tata Steelworks: Newport

Kevin Brennan Excerpts

Tuesday 8th October 2019 Westminster Hall

[The Parliamentary Under-Secretary of State for Wales (Kevin Foster)]

It is a pleasure to serve under your chairmanship, Mr Hanson. I congratulate the hon. Member for Newport East (Jessica Morden) on securing this debate, which has given us the opportunity to come together to discuss a topic that is important not just for Newport but for the whole of Wales. She has always been, and was today, an energetic and passionate advocate for her constituents and those affected by the potential closure of Tata’s Cogent Orb plant.

It is clear that there is a shared understanding of the important role the steel sector plays in communities and its critical place as a foundation industry in the national economy, especially in Wales. That is evidenced by the number of Members attending this debate. I have heard their comments and the request to meet the unions. I understand that the Secretary of State for Wales has already been in contact with them, and I am more than happy to facilitate meetings. I will pass on the request for a meeting of the steel council. That is something we are always happy to do, and certainly if hon. Members request it. Those who have dealt with me previously know that I am only too happy to meet Members, particularly if it relates to matters in their constituencies that are this important. I would be happy to facilitate that.

[Kevin Brennan (Cardiff West) (Lab)]

Is the Minister saying that he will go back to his colleagues and recommend that the UK steel council meets, as my hon. Friend the Member for Newport East (Jessica Morden) has requested?

[Kevin Foster]

I will pass on the strong demand that the hon. Member for Newport East has made for the council to meet. In terms of what I can offer, and the direct request for meetings with Ministers about the Orb plant, I am more than happy to arrange to do that. That was the second part of her request.

Although there are considerable challenges, we believe there remain great opportunities for the industry to secure a successful, sustainable future at the centre of British manufacturing. The announcement on 2 September 2019 that Tata is to close its Orb Electrical Steels plant in Newport has understandably been a huge blow for employees, their families, contractors, suppliers and customers. I am grateful to the hon. Lady for her commitment to working with Government and other stakeholders, including the Community union, to help secure the future of the business, both in her role as MP for Newport East and as an officer for the all-party parliamentary group on steel and metal-related industries, many of whose members are in the Chamber.

The Government have worked with Tata to seek possible solutions to the financial challenges facing the company. We have also met with the unions to discuss the concerns of the workers and their families. This was a commercial decision by Tata Steel Europe. The Orb Electrical Steels plant has been on sale for two years, but sadly Tata was unable to find a buyer. We are open to considering plans that would deliver a long-term, sustainable future, based on a clear business plan, but as I am sure hon. Members realise, that cannot just be based on an ongoing subsidy or on merely hoping that business will come forward. We have sought and had reassurance from Tata that every effort will be made to mitigate the impact on affected employees. It is offering alternative employment opportunities where possible at other Tata Steel sites. The UK Government are committed to working with Tata to avoid job losses as a result of any closure of the Orb steel plant, as Tata is one of the most important employers in Wales. We will keep all options open to support a sustainable future for that plant and for Tata elsewhere in Wales.

--- Later in debate ---

[Kevin Foster]

I have to conclude, as I am starting to get close to time.

We have also signed up to the UK steel charter, acknowledging and supporting that initiative from industry. We continue to press for the introduction of trade defence instruments to protect UK steel producers from unfair steel dumping. Tata has confirmed the closures are not linked to Brexit; instead competition from much larger players in China and Japan is understood to be the key reason.

[Kevin Brennan]

On a point of order, Mr Hanson, this kind of debate is supposed to be a conversation between the Minister and the Member who secured it. There are five minutes left in the debate; surely it would be appropriate for the Minister to give way to the person who secured the debate.