Port Talbot Transition Project
Debate between Llinos Medi and Jonathan Reynolds(2 months, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jonathan Reynolds
I thank my hon. Friend for his question and for recently visiting the site to speak to management and the workforce. He is right about the understandable level of concern in the workforce. Obviously, that is often speculated on in the media, and there is a huge amount of interest in it. I made this statement today because of the need to proceed with part of the plan, and not to lose everything entirely. I also wanted to be able to answer questions such as his and to make it clear that the Government’s manifesto commitment to the steel transition fund forms part of a wider ambition, a coherent strategy, for the future of steel across every part of the UK.
Llinos Medi (Ynys Môn) (PC)
The loss of virgin steel production in Wales is a serious economic blunder that will devastate the community of Port Talbot. Unions have previously called for additional investment of £683 million in Port Talbot to save jobs. Meanwhile, Germany has invested €1.3 billion in decarbonising steel in one region alone this year. Can the Secretary of State explain why he will not match the ambition of the workers here and Governments of other countries to save Welsh steel?
Jonathan Reynolds
The levels of ambition and resource that we have as a new Government are actually greater than the figures that the hon. Lady has just given. To do the work that she describes requires a private sector partner. The Government cannot alone meet the capital expenditure needs. Indeed, to be successful it is better to work with a private sector partner to deliver that. Having a partner to retain virgin steel production is part of what the strategy will be able to address. If I had a partner willing to keep blast furnaces open, I would be very interested in that. However, I do not want to spend this very large sum of money in our clean steel fund on subsidising operating losses for one or two years, which would eat up most of that £3 billion and leave us with nothing at the end of it. I want to co-invest with the private sector for good, secure, long-term jobs, which are much in demand. She is right to say that other European countries have been way ahead of the UK in the past few years, but the level of ambition from this Government not only matches that among some of those European competitors but exceeds it.