Taxpayers’ money will only be invested in Tata’s steelmaking sites if the operations have a sustainable future, Welsh Secretary Alun Cairns told MPs as concern swirls about a possible deal.
The possibility of a link-up between Tata’s European operations and Germany’s ThyssenKrupp has fuelled fears for the future of the Port Talbot site.
Aberavon Labour MP Stephen Kinnock laid out his concerns when Mr Cairns came before the Welsh Affairs committee.
He warned of a “narrative” in which the “British side of the business” is allowed to “wither on the vine in order to consolidate and strengthen the competitive position of the Dutch side of the business.”
Alun Cairns: Cash would come with conditions
Vale of Glamorgan MP Mr Cairns stressed that the UK Government cash would come with firm conditions.
He said: “The UK Government stands to invest hundreds of millions of pounds in the operation and with that of course would come conditions. And that would offer the reassurance that there would be a genuine strategy because of course we would need to conduct proper due diligence [for] any sort of investment that the taxpayer would support.”
Striking a positive note, he said: “[The] evidence we can see is that ThyssenKrupp is prepared to invest significant sums of money into a joint venture scheme, supported – or with the offer of support – from the UK Government and that in itself we can take encouragement from because that shows they are prepared to spend money, and if you are prepared to spend money then [it’s] fair to assume there’s not going to be the worst possible outcomes.”
He continued: “The taxpayer money will only be used if there is a viable, sustainable future in steelmaking. It wouldn’t be of anyone’s interests to invest money into a plant that we didn’t believe [had] a long-term viable future.”
Source:walesonline