Robert Buckland
Main Page: Robert Buckland (Conservative - South Swindon)Department Debates - View all Robert Buckland's debates with the Wales Office
Port Talbot Steelworks
Robert Buckland Excerpts(6 months ago)
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David T. C. Davies
The hon. Gentleman shakes his head. I do not know what the answer is; he says that it is possible to implement the Syndex plan, but Tata says that it is not. What the hon. Gentleman has to realise is that it is not the UK Government he has to convince; it is Tata. The UK Government have never said that they would be against the Syndex plan. It is Tata that has to be persuaded.
Sir Robert Buckland (South Swindon) (Con)
I commend my right hon. Friend for his comments, and for reminding us that half a billion pounds is no small beer when it comes to intervention in a private industry. There are clearly difficulties with the transition, and a lot of us who care deeply about the steel industry in Wales and Britain are worried about our capacity to do what we need to in the future, as my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) said. What ongoing discussions are there on whether Tata will keep one of the blast furnaces open for longer than is set out in the plan, in which they are to be shut down by the end of this year?
David T. C. Davies
I have had that discussion with senior management at Tata, as have members of the Labour party, trade unions and many others. Tata faces losses of over £1 million a day as a result of keeping the two blast furnaces open. It says that those losses would continue even if one was functioning, because, first, it would have to make significant capital expenditure on blast furnace 4 for that to go ahead, and, secondly, it would have to import all the coke that goes into that blast furnace, as the coke ovens were shut down with the agreement of the unions, because of health and safety concerns. Then Tata would face the additional technical problem of trying to build an electric arc furnace on the same site as a steel melt shop containing hundreds of tonnes of molten steel that is poured off into casters. That is why it has said very clearly that it will not entertain the proposal. The UK Government have never said that we would not entertain the proposal. If Tata wanted to come forward with a plan to build the arc furnace, using the grant that the Government have put forward, while keeping one blast furnace open for longer, of course the Government would be open to discussion of that.