'Promises turned out to be empty words', says MP of Tata Port Talbot steel deal

15 September 2023 , 10:49

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The Government and Tata have reached an agreement over the Port Talbot steelworks (Image: AFP via Getty Images)

The Government’s investment in Tata Steel may sound like a lot of money, but it pales in comparison to what European competitor firms are receiving from their respective governments.

Across the Western world steel firms are rightly going green - and every steelworker recognises that it is essential British plants do the same to remain competitive. But we need to get the transition right, for both the business and the workforce.

So the fact that the plan being announced today is narrowly focused on electric arc furnaces – rather than hydrogen, direct reduced iron and carbon capture – is deeply troubling because it means that Tata Steel will no longer be able to produce all the qualities and grades of steel needed to meet the demands of its customers, which in turn will result in thousands of unnecessary job losses.

Stephen Kinnock at the Port Talbot steelworks (WalesOnline/Rob Browne)

The Conservative Government promised to consult unions on this deal, but those promises turned out to be just empty words. Community and GMB have fought tooth and nail for the workforce, and the frustration came through strongly in the letter that Roy Rickhuss and Gary Smith sent to the Prime Minister on Wednesday.

Make no mistake, we need our steel - for everything from the cutlery in our kitchens to the cars that we drive. It is a cutting edge, 21st Century industry. We need our steel to form the foundational backbone of Britain's defence sector, critical infrastructure and our entire manufacturing base. We need our steel to deliver well-paid, meaningful jobs in industrial communities which have typically witnessed jobs disappear overseas.

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And now, more than ever, we need our steel to secure our supply chains in a turbulent world. The green energy transition provides the perfect platform to do this yet, concerningly, there is barely any British steel used in Britain's wind turbines.

The Government’s decarbonisation strategy should build for the future whilst also protecting the current order book. This new Government plan looks likely to fall short on both fronts. Labour's £3billion steel renewal fund will meet these challenges because it is driven by long-term thinking, as opposed to the sticking-plaster approach preferred by the Conservatives. After 13 years of Tory failure, only a UK Labour Government in Westminster and a Welsh Labour Government in Cardiff Bay can build the positive future for our steel industry that we need and deserve.

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Stephen Kinnock