UK Steel Industry

Lord Davies of Gower Excerpts

Tuesday 12th April 2016 Commons Chamber

[Byron Davies (Gower) (Con)]

I am grateful for the opportunity to speak in this extremely important debate. I thank the Secretary of State and his team for keeping the House informed—in particular for keeping in continuous contact with me and other Members. I thank the Government for the extremely constructive and close way in which they have worked thus far with the unions and other parties.

I congratulate the Community union, whose evidence to the Welsh Affairs Committee was very impressive indeed. Representatives were here yesterday. I am pleased that the Government have kept in contact and ensured that everybody has been kept informed at every stage, because this is about livelihoods. As someone who grew up and was schooled with many who went on to the local steel industry, I recognise how important the industry, the supply chain, the steel stockholders and the maintenance companies that look after the Port Talbot steelworks are to families in my constituency of Gower.

The Government’s interesting announcement yesterday about co-investing with a buyer highlights their commitment to the people who work at Port Talbot. That will help to ensure the survival of the steelworks, but it also demonstrates the need to work on a vast number of issues, many of which have been mentioned today and during the past week, to ensure a viable long-term future for the industry.

It is crucial that parties work with each other in this Chamber and go beyond party politics to ensure the survival of steelmaking at Port Talbot. I want briefly to discuss one of the areas that we need to consider as part of our long-term strategy: the use of British steel in infrastructure projects. I know that there are rules and guidelines, but we must think strategically about our use of steel.

The Government’s increased investment in infrastructure means that British steel has had more opportunities to be used, as a result of which our workers, their families and our communities have been supported. For example, 98% of the steel that National Rail has used has been British, while 95% of that used by Crossrail has been. Indeed, HS2 and Crossrail 2 will provide further huge opportunities for our steel industry. As we have heard, something like 94% of the steel used in manufacturing aircraft procured by the Government has been British and, of course, the Great Western Railway electrification to Swansea will provide a further opportunity to use steel.

We need to ensure that our infrastructure strategy and investment tie in very closely with the use of British steel. I was extremely pleased when the Government and my right hon. Friend the Chancellor of the Exchequer set up the National Infrastructure Commission, headed by Lord Adonis, to give this country the infrastructure to support future economic growth. Will the commission examine how projects could make use of British materials such as steel and support vital industries? Infrastructure projects support local families, local businesses and local communities.

From the coffee shop to the hairdresser and the baker, businesses across south Wales, particularly in the Swansea bay region, are deeply concerned about their future. We need to look at a wide-ranging and long-term strategy to make the industry viable for south Wales. A joint strategy that supports economic growth in the region could consider projects such as the Swansea bay tidal lagoon, which is the type of infrastructure project that would not only add jobs, but continue to support those workers and families just over the bay in Port Talbot.

We must work together. Political grandstanding will not save jobs, provide a long-term viable future for steel production in Port Talbot or support businesses in the supply chain across south Wales. The history of steel in our communities runs deeper than political point-scoring, which causes confusion. Only last week, I spoke to a lady constituent who is a Tata employee, as is her husband, and both of them were appalled and disappointed by the political rhetoric from certain quarters.

We have a shared history and experience of steel in south Wales. Our communities, our social fabric and our lives have all been built or touched by the steel industry. Only by working as one can we provide the future we all want for steel in Port Talbot. Politicians who grandstand in an attempt to ingratiate themselves with steelworkers will not help. We need action, and that is what the Government are clearly providing, constructively and conscientiously. I applaud their actions to date and look forward to a positive outcome for the people of Port Talbot and the many employees who reside in my constituency of Gower.