Plaid Cymru calls for government action to save the steel industry

In light of a potential deal to buy Tata’s Lanarkshire steelworks, Plaid Cymru’s Shadow Economy Minister Rhun ap Iorwerth has said that the Welsh Government should be prepared to act in all eventualities as the decision on the future of Tata steelworks in Port Talbot approaches.

Rhun ap Iorwerth said that the Scottish Government had been proactive in seeking a new buyer for Tata’s Lanarkshire plant, and said that the Welsh Government should be as proactive in seeking to secure the future of the steel industry in Wales.

Tata’s main board is meeting on Tuesday 29th March in Mumbai to take a decision on a rescue plan for the Port Talbot works.

The First Minister should be seeking a meeting with the Senior Management at Tata now in order to make the case for Welsh jobs, Rhun ap Iorwerth has said. He said that in the event that the rescue plan is rejected, then the company should give the Welsh Government sufficient time to seek a new investor.

Plaid Cymru’s Shadow Economy Minister Rhun ap Iorwerth said:

“Next week marks a crucial moment in the future of the steel industry in Wales as the board of Tata will meet to decide the future of its Port Talbot plant. What is certain is that if the plant closes, the knock-on impact of this closure will be devastating and will almost certainly mean the closure of Trostre in Llanelli with the loss of around another 1,000 jobs. We are probably talking about the loss of around 4,000 jobs in total directly, with the jobs of around another 5,000 among contractors and suppliers also at risk.

“The Welsh Government needs to be prepared to act and respond to all eventualities. The First Minister needs to seek emergency talks with Tata’s Senior Management to discuss the situation. The Scottish Government has been proactive in seeking a new buyer for Tata’s Lanarkshire plans, and the Welsh Government should be as proactive in seeking to secure the future of the Port Talbot site.

“In the event that the board rejects the rescue plan that has been proposed, then the Welsh Government needs to negotiate sufficient time to find an alternative investor. I would also expect the Welsh Government to recall the National Assembly in order to coordinate a political response to the situation.

“And as Plaid Cymru has previously stated, all options should be on the table as we seek to save our steel industry, and that could include entering into a joint venture with the company.

“There can be a bright future for the steel industry in Wales. We have a highly skilled workforce and a strong tradition of producing high quality steel, and with the right government support we can secure a strong future for the industry”

Bethan Jenkins, Plaid Cymru Assembly Member for South Wales West, said:

“Given the potentially devastating consequences for Port Talbot and the surrounding region, we need the Welsh Government pre-empting rather than reacting to events. Much of its work to date has been focused on supporting those who are currently losing their jobs. Ministers need to go one better and take steps to prevent any further redundancies, particularly when they are threatened on this scale.

“The SNP-run Scottish Government has shown that there are other options open to our steel industry. Plaid Cymru has already proposed some of these, aimed at securing a long term future for the industry in Wales, such as taking a public stake in the steelworks so that it can modernise. There is significant funding from Europe available, and any combination of these could be used to attract a new investor, or persuade Tata to keep its faith in Port Talbot and upgrade the site.

“This industry is too important for Welsh ministers not to be working decisively and pursuing the same kind of avenues that we’ve seen from Holyrood”
Plaid Cymru Llanelli candidate Helen Mary Jones said:

“If Tata closes its Port Talbot site then the knock-on effect on Trostre could be devastating on Llanelli. The Welsh Government should be proactively working with the company, seeking a meeting with the management board and holding discussions with officials at the very top of the company in order to secure the future of the steel industry in Wales. When the company board meets in Mumbai at the end of the month, I hope that the Welsh Government will have done everything in its power to ensure that Wales, and Llanelli, can continue with its long and proud tradition of steel production.”