Agenda item

In light of the recent announcements from TATA Steel regarding the loss of 750 jobs at the Port Talbot site the Chief Executive, Mr Steven Phillips attended the meeting to give a verbal update on the TATA situation. The Chair explained that as the topic comes under the purview of the Economic and Community Regeneration Scrutiny Committee, the Committee will wish to include all relevant future updates and any forthcoming reports to their future work programme.

The Committee were informed of the working groups that had been established to report to the main TATA Task Force Group which are focussing on issues such as the health and wellbeing of those affected and the wider issues in relation to the supply chain. The Chief Executive reiterated that the main priority was to assist the affected steel workers and their families and highlighted various Welsh Government schemes such as WG React and Workways Plus. Members were also pleased to note the ongoing discussions from Welsh Government whereby Economy Minister Edwina Hart is proposing to create an Enterprise Zone that encompasses the Port Talbot TATA Steel site.

The prolific issue of steel ‘dumping’ was discussed in detail and the Committee agreed that this was causing material injury to the Welsh Steel industry. Members heard that this, in the main, is an issue to be addressed by the UK Government and that Stephen Kinnock (MP for Aberavon) is heavily involved in the discussions. The Chief Executive also explained the involvement of the European Commission in relation to the effect that the ‘dumping’ was having on Europe in the wider sense and agreed to circulate to the Committee the letters from the Commission as well as his response for their full information.

The Committee discussed that it is not only the job losses at the Port Talbot site which is of concern but the effect this will have on the 800 plus companies that supply the site with goods and services hence the impact of the job losses is far reaching and it was important to utilise Council services wherever possible to speak to the affected companies in an attempt to mitigate these issues.

The Committee stated that the large amount of investment over recent years in the Port Talbot site was positive and that the quality of steel produced is unquestionable and that the steel produced can be used for a huge variety of purposes.

Member asked if when considering awarding tenders for Capital Works within the County Borough is there a discretion to request that Port Talbot Steel is used. The Chief Executive stated that most tender awards require an element of local sourcing of goods and services and the Consortium of Local Authorities in Wales is looking to confirm this as far as possible.

As well as the ‘dumping’ issues, Members raised concern at wider issues such as carbon tax credits, energy costs and business rates which all need to be considered in relation to maintaining a viable Welsh steel market. 

TATA Steel have commenced a 45 day consultation period with staff, which will run to the end of February and the Committee agreed that TATA have a good record of engaging with staff. The Chief Executive urged Members of the Committee to provide any useful feedback or communication from themselves or their constituents to the Taskforce. 

The Committee reiterated the Chief Executive’s and the Council’s position on the urgency of the situation and thanked the Chief Executive for his attendance as well as welcoming him to future Committee meetings with any further updates on the evolving situation at TATA Steel.

The Forward Work Programme was noted by the Committee.