Why I recalled the Welsh Assembly to tackle the Port Talbot steel crisis

On Monday the National Assembly for Wales will meet, following my official request for a recall. There is no doubt in my mind that the steel crisis constitutes an exceptional circumstance, and I wanted to give the opportunity for all political parties to discuss this openly, and ask questions of us as a Government.

It’s perhaps unrealistic, this close to a Welsh General Election, to expect Wales to speak with one voice on this issue. There are genuine disagreements about the best way forward. But the country will be looking to us for leadership and action, not point scoring and finger pointing. It is important that we rise to this challenge.

I have been an Assembly member since the outset of devolution, and this is without doubt one of the biggest crises we have faced in that time. I was there as Minister for Agriculture during the Foot and Mouth crisis, when a whole industry was threatened. Those images of burning pyres are seared into my mind, as they are many others. But we got through that, working together for Wales.

Today, we are looking at another crisis – and as in 2001, we need a UK Government working with the Welsh Government to make this work.

I grew up a few short miles away from the Port Talbot steelworks, and I know how this industry has shaped communities across Wales – in Llanwern, Shotton in North Wales and Trostre in Llanelli.

I don’t want to talk about the history, rich though it is. I want to talk about an industry that deserves a future in this country. We are talking about plants that have, at different times in the last 12 months, all broken even or turned a profit. Things at Port Talbot have become tougher of late, due to the global conditions we all understand, but this is a cyclical industry. I want to reassure the workers and the surrounding communities that we’re not sitting on our hands. No one has defended the steel industry more than the Welsh Government and we will continue to do so.

But, I want to be honest and to say there are some things we cannot do. We cannot nationalise the steel industry in Wales. Even if we hard the powers and resources to do it, this isn’t what the trades unions are asking for – they know that this isn’t a reasonable, or sustainable solution for steel in Wales. What we do support, along with the unions, is state intervention at UK level.

When the banks went bust, Gordon Brown stepped in. He was bold. He did what prime ministers need to do in those situations, and whatever judgements history will make of his premiership, nobody will ever deny that he made the right call at that time. We need some of that boldness from the UK Government today. Having supported the banks, there is a moral, economic and strategic case to do the same for steel.

For our part, we made a financial package available to Tata Steel to support a turnaround plan and that package is potentially still available depending on a buyer coming forward. Or we are ready to work with the UK Government on an alternative plan. I know that steel has a future in the UK, and it the industry will not fail for a want of effort and support from Welsh Government.

It is important to note that we have not just been jolted into action in the last few days. The Welsh Government has been working closely with the steel industry for many years and we are very aware of the challenges facing the sector. In recent years, we developed support based around those things that are within our gift, from research and development, skills and training, to aid for environmental protection.

We have supported both Tata and Celsa with tailor made packages including training and skills interventions that are recognised by industry and unions at UK scale as being best practice. Just this month we also established an additional Enterprise Zone in Wales covering Port Talbot. This sends an important signal, creating a growth environment for established and new businesses.

We have had a good relationship with Tata Steel. I’ve met with them in Mumbai and I had a frank and open discussion with them lasting some 30 minutes earlier this week. During the conversation, I questioned the timescale of the sale process and called on the compnay to allow for months, not weeks, to secure a sale. I sought assurances that Tata would keep operations going during the sale process. Tata was unable to confirm this but provided assurances that it would keep assets in a saleable condition to give the best chance for a buyer to come forward. Most importantly, I emphasised the need for Tata Steel to demonstrate its corporate responsibility to the country and our workers.

We have faced tough times before, and we will always stand in solidarity with our brilliant, skilled workforce and with our communities. We will continue to work tirelessly to look at all viable options to keep a strong British steel industry at the heart of our manufacturing base. With the right support, we can help ensure that steel has a sustainable future in Wales.

We stand ready; it is now time to see a bold vision from the UK Government.

Carwyn Jones is First Minister of Wales