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Council Leader welcomes release of millions to protect steel supply chain businesses and workers

Port Talbot Steel Works

NEATH PORT TALBOT Council Leader, Cllr Steve Hunt, has given his full backing to the UK Government’s immediate release of £13.5m to support supply chain businesses and workers affected by Tata Steel’s decision to transition to greener steelmaking.

Welsh Secretary Jo Stevens made the announcement at her second meeting as chair of the Tata Steel / Port Talbot Transition Board.

The funding is the first release from the Tata Steel / Port Talbot Transition Board fund, which will support local businesses that are heavily reliant on Tata Steel as their primary customer, allowing them to turn towards new markets and customers where necessary.

Money will also be available to workers affected by the transition, helping them to find new jobs, access training and gain skills and qualifications in areas where there are vacancies.

The Welsh Secretary will also announce today that more than 50 businesses so far have signed a pledge to support any workers forced to leave their jobs in the steelworks.

The businesses, which include Fintech Wales, The Royal Mint, Cardiff Metropolitan University, RWE Energy, Ledwood Mechanical Engineering and Pro Steel Engineering, have committed practical support for workers ranging from guaranteed interviews for anyone made redundant, to providing training and coaching.

The Welsh Secretary will give further details of the business pledge while visiting Rototherm in Port Talbot on Thursday. The company is a leading global manufacturer of measurement devices for temperature and pressure. It is one of the firms in Tata’s supply chain likely to be affected by the transition to electric arc steelmaking.

The UK Government has also reset the relationship with the Welsh Government, as well as with unions and other local partners, to work together to deliver for the workers affected.

Negotiations between the UK Government and Tata Steel regarding the future of the Port Talbot works will continue separately.

The Leader of Neath Port Talbot Council, Cllr Steve Hunt, said: “Neath Port Talbot Council is pleased to give its full backing to the Transition Board in releasing these funds and gathering support from local businesses, our public sector partners and our community and voluntary sectors.  We really appreciate the response we have had – which underlines the strength of community and the importance of steel to the town of Port Talbot and our wider area.

“The council was also first to offer a guaranteed interview to steelworkers at risk of redundancy and we are committed to continuing to do this through the difficult transition period that lies ahead.”

Welsh Secretary Jo Stevens added: 

“Under this government the Transition Board has moved from discussion to delivery. Today’s release of an initial £13.5m in funding demonstrates that we will act decisively to support workers and businesses in Port Talbot, working with Welsh Government, unions and the wider community.

“Negotiations with Tata Steel on the future of the site will continue separately. But this government will not wait for a crisis to overtake us before acting. We are putting a safety net in place now to ensure we can back workers and businesses, whatever happens.

“We are also harnessing the generosity of the local community, with dozens of employers so far pledging practical support for workers. Steelmaking is the lifeblood of communities in Wales, but so too is the support of local businesses. What they are offering will make a real difference to suppliers and staff.”

Business and Trade Secretary Jonathan Reynolds said:

“This funding is an important step towards supporting workers affected by Tata Steel’s transition and businesses in the wider supply chain.

“We’re working in partnership with trade unions and industry to secure a green steel transition that’s right for the economy, our talented workforce and local communities for generations to                       come, and our negotiations with Tata remain ongoing.”

Oliver Conger, Managing Director of Rototherm, said:

“We are part of a really supportive community in Port Talbot, and we are delighted to offer help to any affected workers at Tata Steel and any suppliers affected. “I believe that if businesses like ours from across the area can come together, we can offer a lot of practical support that will make a big difference to people and the impacted supply chain.”

More details will be released soon on how local businesses and affected workers can access the initial £13.5m Transition Board funding.

The Secretary of State for Wales also made it clear the Transition Board will now be an equal partnership between political representatives, business and unions.