A political row has broken out in the Senedd over who knew what — and when — about the delay to Port Talbot‘s £1.25bn electric arc furnace.
News that the furnace could be delayed by up to eight months because of a hold-up to its National Grid power connection emerged on 7 June — days after a major fire at the steelworks’ Cold Mill.
Welsh Conservative shadow minister for economy, energy and planning Janet Finch-Saunders MS raised the issue during an emergency statement in the Senedd on Wednesday following the fire — saying that while attention had focused on the blaze, concerns about delays to the furnace may have been known for weeks.
It was reported on 7 June that Tata Steel had discussed potential delays linked to National Grid connectivity issues with “investors” during a conference call around a month earlier.
Ms Finch-Saunders is seeking clarity on whether those “investors” included the UK Government — which is putting £500m towards the £1.25bn project.
“If UK Government Ministers were aware of the issue a month ago, were Welsh Government Ministers informed? If Welsh Government were not informed, why not? If Welsh Government were informed, why did the Economy Minister tell the Senedd today that he only became aware of the delay on Monday?” she said.
“We now need a clear timeline setting out exactly when concerns first emerged and who was told. Port Talbot workers and their families deserve answers.”
The Welsh Conservatives are also seeking clarification on whether any of the £80m transition fund established by the previous UK Conservative government — to support workers at risk of losing their jobs — remains available if the delays create further financial problems for affected workers.
But First Minister Rhun ap Iorwerth defended his government’s handling of the situation — telling the Senedd that Cabinet Minister for Enterprise, Connectivity and Energy Adam Price had spoken directly with Tata Steel UK’s chief executive the previous day.
“My government is determined to do all that we can to support investment at TATA,” he said. “My minister for enterprise, connectivity and energy did speak yesterday with Tata Steel UK’s Chief Executive Officer in order to discuss the way ahead in terms of the electricity connection.
“Many of the powers of course are in the hands of the UK Government, but we will do everything in our powers as a Welsh Government to facilitate progress towards the delivery of that investment. That is why my minister acted so quickly.”
The First Minister also took aim at opposition parties’ records on steel: “The contribution made last year by Reform was to say that they wanted to bring back a defunct blast furnace to secure the future of Port Talbot, while my party put plans on the table that could have retained, we believe, virgin steel making in Port Talbot.”
Meanwhile, Aberafan Maesteg MP Stephen Kinnock — whose constituency includes the steelworks — said he had met Tata for a briefing on the implications of the fire, and revealed the company is looking at reviving its mothballed cold mill at Llanwern to maintain supply to customers.
“They have acted at speed to limit disruption and are looking at options to maintain supply to their customers, including by reviving the previously mothballed cold mill in Llanwern,” he said in a statement issued on 10 June. “Tata are working with the unions to look at the deployment / re-deployment of personnel working across both the Pickle Line and Cold Mill at Port Talbot.”
On the furnace delay, Mr Kinnock said: “I also received an update on reports of potential delays to the EAF project. There is no formal change in the timetable at this stage and National Grid, UK Government and Tata Steel are continuing to work together to deliver the project in a timely fashion.”
He also thanked firefighters “for their efforts in bringing the blaze under control and the professionalism of Tata’s workforce”, saying the response meant there were “thankfully no injuries”.
The electric arc furnace is the centrepiece of Tata’s transition at Port Talbot following the closure of the works’ blast furnaces, and the connection delay has already prompted cross-party calls for answers from Tata and National Grid — with former Aberavon MS David Rees among those calling for National Grid to face penalties over the hold-up.
The Welsh Government’s response to the delay — and the Conservatives’ demand for a timeline — comes with the steelworks still recovering from the Cold Mill fire, which burned for two days earlier this month and caused part of the building to collapse.
Answers to the questions of who knew about the delay, and when, are now awaited from both governments.
