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Tata Port Talbot talks underway but no full jobs guarantee – Jonathan Reynolds
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Video caption: Future of Tata steel plant in Port Talbot is a ‘big priority’ – ReynoldsArticle information
- Author, Huw Thomas
- Role, Business Correspondent, BBC Wales News
- July 7, 2024, 10:15 BST
Updated 6 hours ago
The UK government’s new business secretary has said “job guarantees” will form part of negotiations with steel giant Tata over its Port Talbot site.
Jonathan Reynolds said there was “a better deal available” on the future of the plant, but said new technology would employ fewer people.
Mr Reynolds said he and Prime Minister Sir Keir Starmer had already spoken to Tata and were engaged in active negotiations over the future of the Port Talbot plant.
Asked if this meant he could secure all the jobs, he replied: “Blast furnaces employ more people than some of the new technologies available.
“So there are a number of things that you need to understand, but I completely agree with the point that we need to make sure that this is a transition that works for workers and that they are part of it.”
Image caption: One of the kilns in Port Talbot closed last Friday and a second will close in September
Mr Reynolds said the timetable for government talks was “not great”.
He said Labour’s manifesto had promised £2.5 billion on top of the £500 million already agreed by the former government.
“It’s not about underwriting loss-making businesses, perhaps in the way we might have thought about industrial policy in the past. It’s about being a partner for investment in the future,” he said.
“There is more money available for the steel industry in our plans for government, but this is about ensuring that we make this transition with the private sector together and recognise that we need to ensure that decarbonisation is not deindustrialisation and that we need to do this together.
“But there is a better deal available for Port Talbot and the steel industry as a whole – I am sure of that.”
Image caption: “Steel will never be a long-term solution,” says Rachel White, from Port Talbot
Port Talbot residents had mixed opinions on the latest developments.
Rachel White lives near the steel mill, but doesn’t believe she has a long-term future.
“I know a lot of people who work there who were very worried when they found out they were going to lose their jobs, but they ended up finding better jobs for the next generation, but the steel industry is never going to be a long-term solution,” she said.
“I understand they need to find money for the people who need the jobs, but I feel like a little more effort could be put into preparing for the future, for when this has to end.
“It’s good for people who haven’t found anything else. I just think they could do a little more work on what the other options are.
“We live very close to the steel mill and most people complain about how dirty it is and the effect it has on the environment and people’s homes.
Image caption: “I think what they need to do is nationalise a foundation manufacturing industry, an industry that produces world class steel,” says Nigel Hunt
Nigel Hunt, who runs a clothes shop in the town, felt the minister’s comments fell short.
“I think that’s going to be empty words, frankly,” he said. “I think what they need to do is nationalize a foundation manufacturing industry, an industry that produces world-class steel.
“He makes huge quantities and sells them because there is a huge demand for it, because there is still a manufacturing industry. The automotive, aerospace, tinplate and defence industries are all Port Talbot steel.
“What will happen to this manufacturing base if this industry goes away?”
Image caption: “It’s the only infrastructure in this city and people depend on it,” says Chris David
Before retiring, Donald Gwyne-Cooke was a steelworks worker, but he believes the city’s steel industry is over.
“I would prefer it to close because of the pollution. I don’t like to see people losing their jobs, but there are other jobs.”
Chris David said: “It’s the only infrastructure in this city and people depend on it. It’s been going on for a number of years and it’s the backbone of this city and without it it’s going to be tough for everyone.
“The government says a lot of things, but whether they will act on them is another story.
“They need to show commitment, otherwise no one will believe them. This new government that is coming in now, I hope they do something about it and support the people of Port Talbot because they are hard-working people and they need some support.”
A glimmer of hope
The idea of future investment offers a glimmer of hope for those seeking to mitigate the impact of Tata’s plans.
The Labour Party discussed supporting future investment in Port Talbot during the general election campaign, and Tata bosses were open to the idea.
But future investments will not save jobs in the short term. Even Tata Steel’s current commitment to build an electric arc furnace next year will require far fewer workers than are currently employed in the heavy-duty part of blast furnace production.
Image caption: Labour pledges £2.5bn in steel investment, on top of the £500m already agreed by the previous government
Unite union general secretary Sharon Graham said the steel industry had been decimated.
She said investment, jobs guarantees and procurement legislation were needed so that “all UK infrastructure projects use UK steel”.
“We need to support British steel, we need to support British businesses. Investment will be crucial,” she told the BBC.
Tata Steel UK chief Rajesh Nair said he was looking forward to working with the UK government on increasing green steel production.
“We will be talking to new ministers about our ambitious plans to invest in and transform Port Talbot with electric arc furnace steelmaking, and supporting our workers through this necessary but difficult transition,” he said earlier this week.
Image source, Getty Images
Image caption: Tata says the Port Talbot blast furnace operation has been suffering losses of £1m a day
The company said the blast furnace operation was generating losses of £1 million a day and was financially unsustainable.
Tata has been in talks with unions since January, when it unveiled plans to radically transform its operations to address its financial losses and reduce carbon emissions.
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