Tata Steelworks: Newport

Nicholas Dakin Excerpts

Tuesday 8th October 2019 Westminster Hall

[Jessica Morden]

I absolutely agree, and I will make that point later.

Tata announced that it would be closing Cogent Orb steelworks on 2 September, with the loss of 380 jobs. This has come as devastating news for a dedicated, highly skilled workforce and their families, and for the city of Newport as a whole, where Orb has been part of the landscape since 1898. I pay tribute to Community, Unite and other unions for the support they have given and continue to give to the workforce, and for their general fight to save our steel industry.

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate my hon. Friend on securing this very timely debate. I represent a steel community in Scunthorpe, and we know exactly what it is like as a steel community to have these things happen. We stand side by side with the steel community in Newport. Does she think that the work the Community union and others have done through the Syndex report gives a possible way forward for the plant?

[Jessica Morden]

My hon. Friend is indeed a doughty and fantastic champion of his steel community, and the thoughts of our steel community are very much with his community and the difficulties it has had recently. I will talk about the Syndex report, because it is very important.

The attendance of my hon. Friends from Wales and fellow members of the all-party parliamentary group on steel and metal related industries represents the importance of the steel industry to us all. As my hon. Friend the Member for Torfaen (Nick Thomas-Symonds) said, many of us have a constituency interest but also a very personal interest. My parents met in the steel industry in Ebbw Vale, and my hon. Friends have close family who have worked in the industry, including my hon. Friend the Member for Cardiff West (Kevin Brennan).

Fewer work places are more ingrained into the life of Newport than Orb. Our iconic transporter bridge was originally built to carry Orb workers over the River Usk. There are street names in Newport such as Dudley, Walsall, Bilston, and Handsworth, and even the Wolverhampton Wanderers-based colours chosen for Newport County AFC commemorate the west midlands migration to Gwent initiated by the Lysaghts family moving their sheet steel production to Newport at the end of the 19th century. Orb played an important role in Newport in both world wars and, from the late 1960s onwards, its activities moved towards cold rolled and electrical steels, a field that became the site’s speciality, as it remains today.

Losing Orb would mean losing the electrical steels skills base that has been built up since the era of Harold Wilson’s “white heat” of technology, and at a time when electrical steels will be more in demand that ever before. Tata’s decision to close Orb, citing losses and wider challenges in the sector, will hit many people in our communities extremely hard. They include recent recruits such as an electrician who joined the company two days before the announcement and is one of 70 new starters over the last two years, and a long-time worker who says, “Orb works has been a part of my family for nearly 60 years. Between my father and brothers we have over 100 years’ combined service. The Orb paid for everything when I was a child and is now supporting my three children.”

Another man’s family came from Tipton; his great-grandfather, grandfather and father all worked there, and their names are on the works’ cenotaph. Mickey, who started work as a 16-year-old messenger boy and ended up as section manager, said, “To allow over 100 years of electrical steelmaking skills simply to disappear is a crime against everyone who contributed to Orb’s history, and the knock-on effect on the Newport community’s economy will be devastating, as these jobs are of high value.”

--- Later in debate ---

[Kevin Foster]

The Government are clear that if a sustainable, long-term business plan can be produced, we will consider support packages, but the key part is that it must be sustainable for the long term, and it must be based on a clear business plan.

[Nic Dakin]

We have heard today about the Syndex report, which places a way forward on the table. Will the Government meet the unions, Syndex and Tata to see how that could be turned into the sort of plan that would deliver not only for this workforce and industry, but for UK plc?

[Kevin Foster]

We are more than happy to meet. Obviously we cannot guarantee that a third party would wish to be involved in those meetings, but certainly from the perspective of the Government and the Wales Office, we would be more than happy to arrange a meeting with the unions and Syndex to see how their plan could be taken further. The key part has to be whether it can provide a long-term sustainable future, and we note that the plant has been for sale for two years with no purchaser having come forward. Certainly, UK Government Ministers are more than happy to meet interested parties to discuss what we could do.

In the context of the wider steel industry, the Government have made up to £800 million of funding available to support decarbonisation and innovation in the industry. We remain committed to supporting the Welsh steel sector in accessing this funding and ensuring that it is able to compete with the best in the world. Recent and ongoing work to support the steel sector includes establishing the £250 million clean steel fund, which was announced in August and will support the sector’s transition to lower-carbon iron and steel production through new technologies and processes. It will also maximise longevity and resilience in the UK steel sector by building on longstanding expertise and skills and harnessing clean growth opportunities.

Our industrial energy transformation fund is a £315 million fund supporting short-term projects in both energy efficiency and decarbonisation for businesses with high energy use. The fund will help businesses with high energy use, including steel companies, to cut their bills and transition UK industry to a low carbon future.

The industrial decarbonisation challenge is a £170 million fund aimed at the UK’s industrial carbon emissions clusters. South Wales has been identified as one of six clusters in the UK that will benefit from that fund, which supports our grand challenge mission to develop a net zero emissions cluster by 2040 through the development of innovative low- carbon solutions. It will provide long-term support to the industry, ensuring Britain’s long term sustainable future.