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Question
Why were the workforce not involved in this process? Why has only one technology been chosen? What other options have been considered?
Minister reply
The minister did not provide a specific answer to these questions but emphasised that the project includes strong conditions around financial probity, governance and delivery. The deal is part of a long-term plan for steel industry modernisation with significant environmental benefits.
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Question
What will happen to downstream facilities providing packaging and automotive steels that cannot currently be served by an electric arc furnace?
Minister reply
The minister did not provide a specific answer but mentioned that the Government is committed to supporting the transition with up to £100 million funding for affected employees and their local economies.
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Question
What is included in this package as regards ongoing industrial energy costs? When will a grid connection for an arc furnace be provided?
Minister reply
The minister did not provide specific details but stated that the Government's British industry supercharger scheme aims to make electricity prices competitive for energy-intensive industries such as steel, contributing to financial sustainability.
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Question
How will this £500 million of taxpayers’ money be protected? What does this announcement mean for the rest of the UK steel industry?
Minister reply
The minister did not provide specific details but mentioned that the deal is subject to extensive scrutiny, including detailed business plans and due diligence. The Government aims to ensure a broad range of support for affected employees and their local economies.
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Question
Reynolds criticised the decision as a betrayal of workers, questioning why only electric arc furnaces were chosen over other technologies like hydrogen. He also inquired about the fate of downstream facilities such as Trostre and Llanwern.
Minister reply
Ghani responded that discussions had been ongoing for more than a decade and that the blast furnaces were at their end of life, necessitating financial support to ensure viability. She defended the choice of electric arc furnaces due to underdeveloped alternatives like hydrogen and emphasised the importance of securing jobs and continuity in the industry.
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Question
Redwood asked whether there is sufficient old steel for recycling facilities and if plans include retaining capacity for new steel production.
Minister reply
Ghani confirmed that there is enough steel available for recycling, given current export levels. She stated that electric arc furnaces are the best option within the required timeframe to support Tata's business plan.
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Question
Brown questioned the transparency of the £500 million investment and its impact on job losses and supply chain guarantees, highlighting concerns over the involvement of unions and Welsh Government in initial discussions.
Minister reply
Ghani explained that conversations had been ongoing for years with tight timeframes necessitating a decision to support continuity. The transition board will include union members, staff, and government officials for consultation on job losses and support during the transition.
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Question
Tata in Port Talbot and British Steel in Scunthorpe are the last two steelworks in this country that have blast furnaces. Does she agree that, for national security reasons alone, we must ensure that we retain the capability to make virgin steel in this country?
Minister reply
My hon. Friend is absolutely right on the importance of virgin steel production. She is the best champion for her constituency and her steel plant, which is now uniquely positioned as the blast furnace to make virgin steel. Conversations have been taking place with British Steel, but details are commercially confidential. The focus is on ensuring that impacted people get the support they need to transition into jobs.
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Question
Why have the Government put all their eggs into the electric arc furnace basket? Where is the investment in hydrogen, direct reduced iron and carbon capture technology so that we can continue to produce virgin steel?
Minister reply
The hon. Gentleman knows very well the age of the blast furnaces in his constituency and the fact that a transition was needed within the time required. There is no option other than electric to scale up within this timeframe. The focus is on securing the future of the steel sector, and without this funding all 8,000 jobs would have been lost along with 12,000 in the supply chain.
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Question
What assessment has my hon. Friend made of suggestions that electric arc steel is inferior to virgin steel, which is made in blast furnaces?
Minister reply
There is a growing circular economy for steel produced in electric arc furnaces that utilise scrap metal in abundance in the UK. There are differences in the steel produced but Tata has already put up its business plan for how it will continue to supply steel and work with supply chains downstream.
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Question
What assurances can the Minister give me that the Port Talbot blast furnace will continue to supply steel to Trostre until such time as greener technologies are developed there?
Minister reply
There is no other change in any other sites. Now that the deal is out in public, work will continue at pace. Tata has already put up its business plan for how it will continue to supply steel and work with supply chains downstream.
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Question
At a time when we send almost all our previously used steel, otherwise known as scrap, abroad, is this not the best option to provide a less carbon-intensive method of production and to secure UK manufacturing?
Minister reply
All that scrap metal can now be used within this site which is extremely important. We know that a huge challenge is posed by countries that tend to dump their steel elsewhere, and we will work nationally and internationally to protect UK steel.
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Question
Three thousand job losses at Tata Steel will be a huge blow to Wales. Is the Minister proud that her party’s time in power will, once again, leave a toxic legacy in Wales?
Minister reply
We are providing £500 million to ensure that the plant will continue to make steel and support jobs in the industry with 8,000 direct jobs and 12,000 jobs in supply chains. It is unfortunate that she cannot understand that the discussions could have continued uncertainty which would cause the site to close down.
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Question
Why was there no consultation with the unions and the Welsh Government, who should have had a voice in ensuring that there is a fair transition to decarbonisation? What will the Minister do to provide clarity for workers about, for instance, the impact on downstream plants such as Llanwern, and to address the point about the grades of steel needed?
Minister reply
The transition board with £100 million budget is being set up to ensure impacted people are supported. The Minister mentioned ongoing discussions with unions and highlighted a recent event they attended discussing the roadmap to net zero.
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Question
Will the Minister commit to the development of a national skills strategy for workers who might not benefit from green transition opportunities?
Minister reply
The minister acknowledged the importance and mentioned that transition board will be stood up with £100 million to redeploy and reskill people in the steel sector.
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Question
Does the Minister accept that under this deal, the self-sufficiency of our steel industry has been dealt a real blow and that our defence capabilities are badly undermined?
Minister reply
The answer is no. The minister defended the decision by stating it protected jobs, ensured diversity in supply chain, supported UK’s blast furnaces, and enabled reaching decarbonisation targets.
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Question
Will the Minister accept that as a result of this policy, we now have strategic industries under threat, losing jobs, putting greater pressure on taxpayers, pushing production overseas and making ourselves dependent on foreign producers?
Minister reply
The minister defended the decision stating it was about transitioning to cleaner steel due to age of furnaces, loss-making in UK steel sector, and company's commercial decisions. Transition board with £100 million is set up for support.
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Question
Can the Minister tell us what she intends to do working with her colleagues in other Departments to achieve scrap supply and ensure continued support for jobs?
Minister reply
Tata has a substantial package ensuring it thought through its supply chains. Scrap does exist, and electric arc furnaces produce specific kinds of steel, which is why having a virgin steel sector here is important.
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Question
What assessment have the UK Government made of the impact of the announcement on the wider supply chain?
Minister reply
The minister acknowledged importance of vast supply chains for UK manufacturing and mentioned ongoing work internally. Tata Steel had to ensure a business plan with sight of its supply chains.
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Question
Why is she not able to tell us that she has a plan to end the export of scrap steel and to secure its use for electric arc production in the UK?
Minister reply
The minister stated that the comment about UK being only G7 country where steelmaking is in decline was factually incorrect. Tata’s decisions are based on business plans, and they have a relationship with supply chains.