09:30 Nia Griffith (Labour)

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 are all aware of the risk to the 2,800 jobs at Port Talbot and elsewhere. We need to be highly alert to the fact that the one blast furnace is part of ensuring that there is a just transition for the community. Other communities in Wales are facing losses—including the farming community, which will face 5,500 job losses if the Welsh Labour Government bring in the sustainable farming scheme, and the just transition is exactly the same issue.

I am sure the hon. Lady will join me in asking the Minister and other Governments to ensure a just transition for communities across Wales that have experienced decades of suffering because transitions have not been carried out properly as a key part of ensuring the industries of all our communities.

Indeed, we do seek a just transition for the steel industry.

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09:45 Christina Rees (Neath) (Lab/Co-op)

The challenges facing the steel industry are undeniable. Global competition, fluctuating market demands and environmental concerns loom large on the horizon, yet alongside those challenges lies the opportunity to bring about transformation and renewal. The industry cannot do that against a backdrop of uncertainty and a diminished workforce. The idea that 2,800 jobs will be lost from Tata Steel operations across the UK—the majority from Port Talbot—is unthinkable. The rejection of well thought out union plans for a gradual transition to decarbonisation means the almost immediate closure of two blast furnaces. The single electric arc furnace replacement will obviously produce less carbon dioxide, but also fewer jobs.

Although I appreciate the need for decarbonisation, we must remember that steel accounts for only 14% of industrial emissions in the UK, which in turn is around only 2% of total national emissions. Importing virgin steel simply transfers the emissions and decarbonisation responsibility. Such overseas manufacturing is also far more carbon-intensive.

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09:54 Jessica Morden (Labour)

The UK Government are not contemplating the multi-union plan, which promises a fairer, just transition to a greener future for the sector. The UK Government shut the Welsh Government and unions out of decision making on this matter, and the Secretary of State has claimed that those proposing credible alternatives to protect jobs and virgin steelmaking for the future are “unconstructive”. These are plans that his Conservative colleagues in the Senedd backed in a vote very recently. Then we have the Secretary of State for Business and Trade calling plans to make up to 3,000 people redundant a “good news story”.

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09:58 Stephen Kinnock (Labour)

It is crystal clear that the plan that is being pushed by Tata Steel and the UK Government fails on three counts. First, it fails on jobs. In the US, Joe Biden’s £290 billion Inflation Reduction Act is creating 170,000 green jobs. In Europe, national Governments are investing billions of euros in decarbonising their single steel plants. The UK is the only country that is throwing thousands of steelworkers on the scrapheap.

Secondly, the plan fails on decarbonisation. The Tata-Tory plan is based on importing millions of tonnes of semi-finished products from India, where steel production is 30% to 40% more carbon intensive than in the UK. The deal is based on exporting jobs from Wales to India, and importing carbon from India to Wales. You could not make it up.

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10:05 Ruth Jones (Labour)

Decarbonisation cannot and should not mean deindustrialisation, as we know that that increases costs and pushes the environmental burden on to developing countries. With a Labour Government in Westminster working together with a Welsh Labour Government in the Senedd, we will ensure that steel production continues to play a key role in the growth and prosperity of Wales, for our economy and our people.

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10:26 Nus Ghani (Conservative)

Before I give way to the hon. Member for Croydon Central, let me say that Opposition Members constantly want harder, greener net-zero policies, and this is what happens when we flow those through. Customers—end users—want cleaner, greener steel that is made in electric arc furnaces, and this is the outcome of that demand. The reality is that, without the support, there would have been a high risk of Port Talbot and Tata no longer producing steel in the constituency of the hon. Member for Aberavon (Stephen Kinnock).

We are, then, ensuring the resilience and prosperity of the UK steel industry in the face of increasingly competitive global markets. This work is preparing UK steelmaking for the coming years, but it is not the final word in future-proofing the industry. The SUSTAIN future manufacturing research hub, which is led by Swansea University, is the largest fundamental research activity centre working right now to decarbonise and improve the efficiency of steelmaking in the UK. I believe it is also looking at the quality of scrap steel and new technologies to ensure that we can make even more products using steel in the UK.

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