Steel Industry (Special Measures) Act 2025

Lord Murphy of Torfaen Excerpts

Thursday 23rd October 2025 Lords Chamber

[Lord Murphy of Torfaen (Lab)]

My Lords, I begin by paying tribute to my noble friend Lady Lloyd, who gave a very elegant but very modest speech. I know from my experience in Tony Blair’s Government that she played a pivotal role in the machinery of government and all the successes of that Government. I wish her well and remind her that it is extremely unusual to make a maiden speech from the Dispatch Box. I am sure she will do a great job in the position she now holds. I also look forward to the speech of my noble friend Lord Stockwood at the end of this important debate on steel. He too has had a distinguished career, in business, and I am sure he will do a great job in the position he now holds as well.

My life has been mixed up in steel for nearly 70-odd years. My great-grandfather came from Ireland to work in the steel industry in my constituency of Torfaen, which was instrumental in developing the Bessemer process for steel-making. We had a steelworks, Panteg, which made great stainless steel, linked as it was to Sheffield. For 15-odd years, I taught in the college at Ebbw Vale, which relied almost exclusively on the steel industry and the people who worked in it. When that great steelworks in Ebbw Vale closed, the whole community was blighted and devastated. I will come in a few moments to Port Talbot, whose community relies so heavily on steel. In north and south Wales, coal and steel were our communities. It is not simply an issue of economics but of how the whole country of Wales was dependent on these industries for employment. Now we have Tata in Port Talbot, Llanwern and Trostre—just three, with some smaller ones elsewhere. In comparison with many years ago, it is very different.

Back in 2001, when I was Secretary of State for Wales, I and Stephen Byers, who was then the Trade and Industry Secretary, tried to save lots of that steel industry from the cuts made by what was then Corus. We partly failed but partly succeeded. The point is that this was the state trying to help what is in many ways our greatest industry—not very successfully, but we did our bit and managed to keep the industry going.

I was very interested to hear the remarks of the noble Lord, Lord Hunt of Wirral. Over 30 years ago, I shadowed him when he held the job of Secretary of State for Wales. He will know how important steel is to the Welsh economy and community. He rightly referred to the contributions that his Government made before the general election—half a billion pounds towards investment in Port Talbot and the conversion to electric arc. I and others welcomed that. I would have preferred the blast furnaces to stay open, but Tata had made its decision and started closing them on the very day the general election was called. However, I think the future of Port Talbot is safe in a different way; eventually, 5,000 jobs will come with the development of the electric arc furnace and the rest of it.

The other point, which has been very well made, is that it is about not just the physical business of the industry—the plant itself—but what happens to the people who have been displaced in Port Talbot as a consequence of the change of direction. I am glad to say that this Government and the Welsh Government are putting together proposals, I think of over £80 million, to ensure that people are retrained and there are new jobs and businesses. This transition from what was then to what is to be in Port Talbot is considerable. Incidentally, I have some sympathy with the points made by the noble Lord, Lord Hunt, about the cost of energy. However important it is for our environment, it is causing us grave difficulties in the competitive world market.

The position in Port Talbot, Llanwern and Trostre has changed in the last few weeks. At one time, when the plants closed for Christmas, they did so for two weeks. They are now closing for five weeks. That has meant a reduction of some 65% in the income of those who rely on the steel industry in those towns. That is very unfortunate and is largely a result of two things. Despite the fact that we will benefit with regard to the tariffs from the United States, the effect worldwide has meant that China, Vietnam and other countries have dumped their steel into our country. This has an obvious adverse effect on our old steel industry. Coupled with that is the very bad decision of the European Union to impose a 50% tariff on steel from this country. The combination of both those things has resulted in the reduction of the workforce working over Christmas in Port Talbot.

What is to be done? The Government have a significant task to try to ensure that we can avoid the dumping of steel in our country. If that involves income tariffs, so be it. There should also be considerable negotiations with the European Union on whether it can reduce that 50% tariff to help save our jobs in the steel industry. I am sure my noble friend will do that, and I know that my constituency successor, the right honourable Nick Thomas-Symonds, the Paymaster-General, who has duties with regard to our relationship with the European Union, is pursuing it as well. There is a lot to be done and negotiated, and a lot relies upon it. No great country, least of all one that is a member of the G7, can be without a great steel industry. It therefore has to be saved. No part of our country is more affected than the country and the constituency that I come from, in Wales.