Support for the Steel Industry

1. What steps she is taking with Cabinet colleagues to support the steel industry in Wales.

11. What steps she is taking with Cabinet colleagues to support the steel industry in Wales.

Steelmaking is key to our missions to grow the economy and deliver clean power by 2030. We are committed to providing up to £2.5 billion for steel in addition to the £500 million already earmarked for Tata to build its electric arc furnace at the Port Talbot steelworks. I was pleased to reaffirm at the Budget £80 million of funding for the Port Talbot transition board, which I chair. We will continue to deliver this money to people and businesses affected.

Unlike the previous Government, this Government are fully committed to enabling the £800 million transition fund to support former steelworkers. I recently visited the steelworkers’ support centre in Port Talbot, in the constituency of my hon. Friend the Member for Aberafan Maesteg (Stephen Kinnock). In its opening four weeks, it has helped almost 600 individuals, many of whom will be from Neath and Swansea East. Will the Secretary of State join me in thanking Community union and the other organisations that have set up the centre, and provide an update on the transition fund?

I completely agree with my hon. Friend that the hub is great. I opened the hub last month, and Community union and others have done a fabulous job with this one-stop shop to help support workers affected by the changes at Tata. This Government are determined to do everything we can to support workers and businesses. That is why this renewed partnership of Governments, unions and the local council is working together to ensure that the town gets what it needs. Funding from the UK Government is already making a difference via the transition board. We know that there is a huge amount of work to do, but we are already seeing people successfully placed in new jobs as a direct result of the £13.5 million that we have made available so far.

I thank the Secretary of State for her hard work to support our steel industry and our general steel communities, including in Port Talbot, since she has been in post. I was pleased to see the Chancellor confirm in the Budget £80 million of funding for the transition board, which the Secretary of State chairs. Will she tell the House why that was necessary?

In my first week as Welsh Secretary, I discovered that the £80 million promised by the previous Conservative Government for the transition board was part of the £22 billion of unfunded promises they had made. That shocking dereliction of duty threatened to leave workers and businesses high and dry without the support they needed. I have therefore made it my mission to fight tooth and nail for that money on behalf of our steel communities, and I would not have left them unsupported. I am pleased to be able to confirm that under this Labour Government the transition board is fully funded, and we are getting on with the delivery.

I welcome the new shadow Secretary of State for Wales.

Thank you, Mr Speaker. At the outset, as I come to the Dispatch Box for the first time in this role for Wales questions, may I please pay tribute to my former private secretary in the Wales Office, Debbie John, who was taken at a tender age due to pancreatic cancer? She and her family are in my thoughts today as I take up this role. She is much missed and very fondly remembered.

The right hon. Lady clearly needs to acknowledge to the House that the deal for Tata steel recently re-announced by her UK Government is identical to the one negotiated by my right hon. Friend the Member for North West Essex (Mrs Badenoch), who is now Leader of the Opposition.

I welcome the hon. Lady to her place and join her in her comments about her former private office secretary.

I think the hon. Lady needs to read the deal reached by the Government. The £1.25 billion transformation project at Port Talbot will deliver a state-of-the-art electric furnace, the contract for which has just been signed. In just under 10 weeks, without providing any additional funding beyond the £500 million previously announced, we delivered a better deal that secures the immediate future of Port Talbot and lays the foundations for future investment, as well as enhanced protections for the workforce in Port Talbot, Llanwern, Trostre and Shotton.

I am delighted that the right hon. Lady has read the deal that we wrote, but the facts are simple: despite the protesting, this is the same deal that was previously negotiated by the last Conservative Government, involving the same amount of money to build the electric arc furnace and the same cash for the transition board. It is ludicrous for her or others to continue to claim that no support was in place and that it somehow appeared when she found it down the back of the sofa. She is fully aware that the cash had been sitting there the whole time. Perhaps an apology is needed for that, and for claiming that Port Talbot supplies the defence industry with materials.

If an apology is due, it is to the people of Port Talbot for promising £80 million for a transition board that operated for nine months under the previous Secretary of State for Wales, and delivered not a single penny to the people of Port Talbot, and now we know why: the £80 million did not exist.

I call the Liberal Democrat spokesperson.

The closure of the last blast furnace at Port Talbot has resulted in the loss of several thousand highly skilled jobs across south Wales, prompting another economic contraction across our region. The global centre for rail excellence at Onllwyn is one project that could reverse the trend of deindustrialisation and bring back good, well-paid jobs to south Wales. Will the Secretary of State confirm that the UK Government intend to make further investments in that project, and give an update on what conversations she has had to ensure that the project gets going?

The hon. Gentleman will know from both the Budget and the international investment summit that significant investments are being made in Wales as a result of this Government’s work: £63 billion was announced at the investment summit, £1 billion to Shotton Mill in north Wales—the biggest investment in Wales for decades. That will secure 300 jobs and mean that we will have the largest UK paper manufacturing site in the whole United Kingdom. We are growing the economy, creating jobs and delivering significant investment. I will write to him about the rail project.