Oral Answers to Questions

Debate between Nia Griffith and Jim Shannon

Wednesday 6th November 2024 Commons Chamber

[Dame Nia Griffith]

The Budget includes a total of £320 million and a commitment for the investment zones in Cardiff and Newport and in Wrexham and Flintshire. This is a crucial part of our work with the Welsh Government to provide a rocket boost for sectoral strengths such as the creative industries, the life sciences and advanced manufacturing, including our world-leading compound semiconductor cluster.

[Jim Shannon (Strangford) (DUP)]

There is great potential for creating new jobs in wind energy and sea energy in Wales. We in Northern Ireland, and in Belfast in particular, have the engineering skills to provide the turbines for that energy production. Everyone would gain: Wales would get the jobs, and Northern Ireland would get the jobs as well.

[Dame Nia Griffith]

This Government are absolutely committed to economic growth across all parts of the United Kingdom.

Steel Industry: Wales

Debate between Nia Griffith and Jim Shannon

Wednesday 21st February 2024 Westminster Hall

[Dame Nia Griffith (Llanelli) (Lab)]

I beg to move,

That this House has considered the future of the steel industry in Wales.

It is a pleasure to serve under your chairmanship, Sir Gary. First I want to express my gratitude to Mr Speaker for allowing this debate on the very important matter of the future of the steel industry in Wales, particularly as we were limited by time constraints during our debate on steel four weeks ago.

The news that we have had over the past few months has been devastating, with Port Talbot set to bear the brunt of Tata’s plans to shed 2,800 jobs across the UK. With so many jobs going in such a short time, the effect will reverberate right across south Wales, because the number of people affected will be far greater. That will include all the families of the workers, the loss of work for the contractors and the suppliers connected to the plant, and the massive loss of spending power in the community, with the knock-on effects that that will have on local businesses.

I pay tribute to the trade unions that have been working hard to present alternative plans to preserve jobs, keep primary steelmaking in the UK and facilitate a just transition to the green primary steel of the future. I urge both Tata and the UK Government to look again at those plans.

We stand today at a real crossroads for the steel industry in Wales and the UK. We have the opportunity to be at the forefront of the new green industrial revolution, or to allow ourselves to slide into a second-rate position to be left behind as the only country in the G20 that does not have primary steelmaking facilities. I will return to the bigger picture of steelmaking across Wales later. I know that many of my hon. Friends will talk about it, but I want to focus specifically on the future of the Tata tinplate plant at Trostre in my constituency of Llanelli.

Wales has a proud industrial history. Llanelli has thrived on the production of coal, iron, steel, copper and tinplate. The tinplate industry was already established in Llanelli in the 18th century. By the 19th century, 80% of the world’s tinplate was produced in south Wales, with Llanelli the tinplate capital of the world. Today’s Tata plant at Trostre in Llanelli makes a variety of different materials that go on to be used in a range of products—from the tin can that contains the baked beans that we buy to the compounds used to make the aerosol cans on our bathroom shelf.

Forgive me if I sing the praises of the humble tin can: a practical, versatile and green product. It is eminently recoverable and recyclable. Food in sealed cans keeps for months and does not need to be in the freezer or even the fridge—a great advantage for those who cannot afford to run a freezer or have no access to one. Food in tin cans tends to be cheaper than food in other forms of packaging. Furthermore, those in dire straits can even resort to eating tinned products cold without the need to afford the energy costs to heat them. It is little wonder that in hard times, covid and the cost of living crisis, sales of tinned products have held up. By the way, back in 1935, Felinfoel Brewery in Llanelli was home to the first canned beer in the UK and one of the first canned beers in Europe.

Trostre currently receives its steel from Port Talbot, just 20 miles down the railway track. That makes good economic and environmental sense. Most importantly, Trostre workers know that they can depend on the consistency and quality of the steel that comes from Port Talbot. Tata tells us that when it closes the blast furnaces at Port Talbot in the short term before the electric arc furnace is built, it will import steel to supply the Trostre plant. That will be imported steel made in blast furnaces abroad, so there will not be any saving in carbon emissions—quite the opposite. Processes abroad might be dirtier, and then there are the costs and emissions associated with transporting the steel to Trostre.

The challenge will be to source the appropriate quality of steel to satisfy Trostre’s needs. As Trostre makes a number of products and serves a number of different customers, that means steel of the right quality to satisfy all those requirements. As we can imagine, workers at Trostre are very anxious to know that deals for supplies of quality steel have all been sorted out before anyone even thinks about switching off the blast furnace in Port Talbot. They and I know that the works manager and his colleagues at Trostre are doing all they can to assess potential sources, but inevitably, instead of the security that we currently enjoy with our supply from Port Talbot, people are feeling worried.

Importing steel means that there are far more unknowns. We will be more vulnerable to logistical difficulties or price fluctuations; if there is a shortage of supply, foreign producers may prioritise their home customers. What talks has the Minister had with bosses at Tata about where they will be sourcing the imported steel for Trostre, what guarantees they can give that the quality will satisfy all the requirements at Trostre, when they expect the first shipments to arrive, and what risk assessments and contingency plans they have drawn up to cope with challenges such as price fluctuations or a tightening of the market if other countries want to prioritise their own needs? Will she also tell us how imported supplies will be affected by the carbon border adjustment mechanism?

The Government have promised half a billion pounds for Tata to develop an electric arc furnace. Will the Minister tell us whether there is any conditionality attached to that loan in respect of Trostre? In other words, is its availability to Tata contingent not just on building an electric arc furnace but on securing short-term supplies for Trostre—and, indeed, Shotton—and safe- guarding jobs there?

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing this debate. She is right to say that the job losses at Tata Steel affect Wales, but they also affect the ability of the whole of the United Kingdom of Great Britain and Northern Ireland to manufacture steel for our businesses. Does she agree that the production of British steel, which is of the highest quality, needs greater governmental support to ensure it can compete with steel imports from other nations? Does she further agree that the steel sector can provide employment throughout the UK, and that it should be encouraged to do so?

[Dame Nia Griffith]

Indeed. As the hon. Gentleman knows, there have been five asks from the steel industry over many years, which encompass those issues.

Tata says that for safety reasons it is not possible to keep the blast furnace going until its proposed large electric arc furnace is up and running. However, there have been other suggestions, including starting with a smaller electric arc furnace, which could be built while blast furnace is maintained. What discussions has the Minister had with Tata about keeping at least one blast furnace going in Port Talbot until an electric arc furnace is up and running?

Armed Forces Covenant

Debate between Nia Griffith and Jim Shannon

Thursday 22nd November 2018 Commons Chamber

[Nia Griffith]

I thank the hon. Gentleman for his intervention, but I am asking why we are privatising more services, including the particular ones I mentioned. I would like the Minister to explain why the Government are not considering putting a stop to this and having a complete rethink.

At the heart of all these issues is the need to ensure that the promises made in the covenant are being effectively delivered in a way that benefits the forces community— regulars, reservists, veterans and families.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Lady recognise that there is a disproportionate number of veterans in Northern Ireland—not just those, like the Minister, who served in Operation Banner, but those who served in other sectors? Does the hon. Lady feel—as I, other Northern Ireland Members, and, I suspect, the Minister, feel—that there is a need for more proportionate funding for veterans in Northern Ireland because of the large scale of service that there has been? In terms of looking after people, the service of those from Northern Ireland needs particular attention.

[Nia Griffith]

I thank the hon. Gentleman for making a valid point, and we are very grateful to all those from Northern Ireland who have served our forces so well.

Local authorities are responsible for many of the services that fulfil the covenant’s guarantees, yet they have borne the brunt of much of the Government’s austerity programme. Many councils are doing their very best, despite devastating budget cuts from central Government, and I pay tribute to the armed forces champions who do so much in councils up and down the country to promote the armed forces covenant—and look forward to welcoming some of our Labour champions to Parliament on Monday. However, as the Minister has said,

“we know there is much more still to be achieved, particularly in ensuring consistency of outcomes”,

and I think that there is a discussion to be had on whether some aspects of the covenant should be formalised as statutory duties to ensure that they are being delivered properly, because ultimately what matters are not the warm words of politicians, but the real-life experience of our forces community, who do so much for us all and who deserve the very best.