During talks with Indian-owned Tata Steel regarding the future of the Port Talbot site, the UK will insist on “job guarantees” as a return for taxpayer funded investment.
Jonathan Reynolds, the new business secretary of Wales, confirmed that negotiations were still ongoing with Tata. He said there was “a better deal” available for the South Wales steel site as well as the industry in general.
His comments come after the future of the steelworks became a major election issue. This was because Labour and Conservatives had developed opposing responses to Tata rejecting a union plan for keeping Port Talbot’s blast furnaces operating.
In January, the company announced that it couldn’t afford to continue production in its loss-making Port Talbot facility – it was losing £1m per day. – until it had completed a 4-year transition plan toward greener production.
Tata and the previous Conservative government reached an agreement last year in which the company received £500m of state subsidies to assist with the transition to new, “greener”, furnaces that can reduce UK emissions by around 2% when using renewable electricity.
The deal included the closure of the blast furnaces. This would have put 2,800 jobs in danger and could leave the UK the only major economy that is unable to produce steel from scratch.
Reynolds said on BBC1’s “Sunday With Laura Kuenssberg” that there was a better deal for Port Talbot, and the entire steel industry.
“There’s more money for the steel industry in our government plans… but that’s to ensure we meet this transformation with the private sectors together… and it’s a good example of how we need to make sure that decarbonisation doesn’t lead to deindustrialisation. And we’ve got do that together.”
The minister said: “I will make sure that the job guarantees that we are having are part of our negotiations.”
Sharon Graham, Unite’s General Secretary, said on the same program: “There is no doubt that Labour’s coming in and their intent to do what they want is a positive thing.”
She said: “My primary focus is on jobs, pay, and conditions for workers. I will either be seen as an ally or a pain… It’s my duty to hold feet to the fire in this.”
Reynolds noted that this amount was “ontop” of the £500m pledged by the previous government.
Tata said that it would do everything possible to minimize the impact of this transformation on the affected employees and local communities. It also added that it offered the most generous financial package it has ever provided.
Reynolds stated in a separate interview that the online fashion retailer Shein will be required to meet “ethical targets” regarding taxation and other aspects of the business if they list on the London Stock Exchange.
He said to Times Radio that he is “concerned”, about a “loophole”, that allows firms to avoid paying import duties by sending small packages directly to their customers. He would like to discuss this issue with the firm, which was founded China.
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