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Cabinet Secretary for Economy says Tata chose to ignore multi-union report

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TATA STEEL has confirmed to the Welsh Government plans to close its two blast furnaces at Port Talbot, transitioning to electric arc furnace steelmaking as part of a £1.25bn strategy. This move is set to impact approximately 2,800 jobs, with major implications for the local community and wider Welsh economy.

Jeremy Miles MS, Cabinet Secretary for Economy, Energy and Welsh Language, expressed deep disappointment over the company’s decision to disregard the multi-union report’s recommendations for a more sustainable transition. This report, commissioned by the UK Steel committee, had advocated for measures that would reduce the environmental impact of steel production while considering the workforce’s welfare.

The phased closure will begin with Blast Furnace 5 in June, followed by Blast Furnace 4 and other heavy assets by September’s end. Over the next 18 months, the first wave of job reductions will take effect, beginning this July, with further losses anticipated at the Llanwern site over the next two to three years.

The Welsh Government has criticised the pace of the transition, suggesting that a more extended consultation period between Tata and the unions might have mitigated the scale of job losses. As the company prepares for a three-year transition period, it will rely heavily on steel imports to meet customer demands, a move that raises concerns about the future of local production capacity.

Miles underscored the strategic importance of the Welsh steel sector, not only for the local economy but also as a vital component of the UK’s industrial landscape. He urged Tata Steel to avoid compulsory redundancies and to collaborate closely with the Transition Board to provide the necessary support, including reskilling and employment opportunities for the affected workers.

The confirmation of the shift has prompted significant unrest among the workforce, with unions balloting for potential industrial action. Tata has set conditions on its voluntary redundancy packages, which are subject to ongoing negotiations along with future investment commitments.

The Welsh Government remains committed to supporting the steel industry, emphasizing the need for a clear and substantial investment vision that will ensure the sector’s sustainability and the prosperity of its workforce. The transition board has already initiated various support mechanisms, including job fairs, advisory sessions, and a comprehensive action plan to cushion the economic impact on the community.

This transition marks a challenging new chapter for Port Talbot and the entire Welsh steel industry, with long-term implications for the regional economy and its people.

Commenting, Welsh Conservative Shadow Economy Minister, Samuel Kurtz MS said: “The disappointment felt by those losing employment at Tata cannot be understated. We need to support our steelworkers, not just with warm words, but with skills, retraining and jobs.

“We have been clear that we want to see a blast furnace remain open in the transition to electric arc furnaces and we need to take full advantage of the opportunities that the new Celtic Freeport will bring.”

In a joint statement following their respective contributions in response to the statement, local Senedd Members for South Wales West, Tom Giffard MS and Dr Altaf Hussain MS added: “We need to support our communities in and around Port Talbot more than ever following the disheartening news from Tata.

“It is a matter of deep regret that the Labour Welsh Government have yet to put a single penny on the table to support the UK Conservative Government-funded transition board. We need more detail from Labour as to what they are actually doing to back the workforce.”

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Haverfordwest airport to be leased out to make it cost-neutral to council

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SENIOR Pembrokeshire councillors are to lease Haverfordwest airport as part of plans to make the council-run facility, which had a circa £119,000 deficit last year, cost-neutral to the authority.

Last year, Pembrokeshire County Council’s Cabinet, members heard the financial position at the council-supported Haverfordwest/Withybush airport deteriorated in 2022/23, with an out-turn position for 2022/23 of £238,000.

That loss has been reduced to an expected £119,000 for 2023/24 “following an extensive review of the operations of the airport”.

Following scrutiny committee backing for the airport to be leased, a more detailed recommendation was presented to Cabinet on May 20, seeking approval of the lease to “an existing stakeholder / established aviation company,” by giving delegated authority to the Assistant Chief Executive, with relevant input from officers.

The report before Cabinet said the lease would be for an initial 10-year term, with a requirement to obtain/keep a CAA [Civil Aviation Authority] Cat II licence and at a market rent, which would “make the airport cost-neutral to the council from the day the lease is signed, whilst also ensuring that an operational airport remains for Pembrokeshire to benefit from”.

“Any lease would have to allow the operator to run the airport on the commercial terms of their choosing to give a chance of long-term sustainability, so, the council will lose full control of how the airport operates.

“However, any lease will require that the airport be maintained to an acceptable standard and that a CAA Cat II licence is maintained. If these terms of the agreement are breached, then the facility will return to the council.”

Deputy Leader Cllr Paul Miller, presenting the proposal and moving approval, said: “The airport is a valuable facility and one I’m keen to maintain; I personally recognise that maintaining an ongoing public subsidy is not something we’re particularly keen to do indefinitely.”

He added: “What the lease, we believe, will do is maintain a franchising CAT II airport in Haverfordwest and remove our liability from day one.”

Members heard conversations were ongoing with Pembrokeshire Agricultural Society over continued use of part of the site for the annual Pembrokeshire County Show.

Cllr Miller said he was “a huge supporter” of the show, and it was hoped the lease will broadly allow it to continue as before, adding that officers “are getting involved to ensure a smooth transition, and one the show is comfortable with”.

New Cabinet Member for Planning & Regulatory Services Cllr Jacob Williams said: “I don’t think this administration, or any administration, can afford to lose the farming community, one of the oldest and biggest county shows in Wales; it’s so important we don’t lose the ongoing relationship between the agricultural society and the council.”

Following a discussion in private session, members unanimously backed the leasing of the airport.

The council intends to exclude Hangar 5 [indoor trampolines] from any lease, and also includes the option to take back part of the site that may have the potential to be developed as a solar farm or industrial units.

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Seafish begins formal industry consultation to revise levy structure

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SEAFISH, the public body that supports the UK seafood industry to thrive, has started formal consultation with its levy payers and the wider seafood industry on proposals for a new levy model.  

Levy is due on the first sale of seafood, both domestically landed and imported, in the UK. It is not charged on farmed salmon, trout, and freshwater fish species because these species are excluded by primary legislation. Nor is it currently charged on canned, bottled and pouched seafood products.  

The levy collected is used by Seafish to provide support, advice and services across the whole UK seafood supply chain.  

During the Seafish Strategic Review in 2021, the seafood industry recognised the need for a review of the levy system given it had not changed since 1999. There was general agreement that an improved levy model was needed to ensure Seafish had a stable financial model and could continue to provide the support industry needs, now and into the future.  

The Seafish Board held informal consultations with the seafood industry in spring 2023 on proposed changes to the levy system. In December 2023 the Board released a response to the Informal Consultation which set out how it had considered the feedback received from stakeholders and had revised the package of levy amendments in response.  

The Seafish Board is now holding the statutory consultation on the proposed changes. The consultation will be open for twelve weeks until Friday 9 August.  

Seafish is collecting feedback via an independent online survey and anyone with an interest in the Seafish levy as well as the wider seafood industry are invited to respond. They will also be hosting a series of webinars for stakeholders interested in learning more about the proposed changes. 

Information on the consultation, which consists of the Formal Consultation Paper (available in Welsh and English), the draft Regulation, and an Economic Impact Assessment can be downloaded from the Seafish website here.  

The proposed changes to the Seafish levy include: 

  • The current sea fish levy rate of 0.903p/kg will be increased to 1p/kg. This will be renamed the “Category 1” levy. 
  • The current levy rate that applies to mussels, cockles, and pelagic fish (as defined in regulation) will increase from 0.258p/kg to 0.5p/kg over a three-year period.  
  • The current levy rate for whelks will increase from 0.4515p/kg to 0.5p/kg 
  • The levy for mussels, cockles, pelagic fish (as defined in regulation) and whelks will be renamed the “Category 2” levy.   
  • The levy rates for manufactured fishmeal and ‘fish destined for’ fishmeal will also increase, as follows: 
  • Manufactured fishmeal will increase from 0.175p/kg to 0.315p/kg.   
  • Fish destined for fishmeal will increase from 0.035p/kg to 0.05p/kg.    
  • For the first time levy will apply to canned, bottled, and pouched seafood products, for those species within the scope of the levy. 
  • The levy for all seafood and seafood products would be adjusted annually, subject to a cap on the annual adjustment of 2%.  
  • Minor changes to the administration of the levy to make collection and payment more efficient. 

Mike Sheldon, Chair of the Seafish Board, said:  “After our informal consultation last year, we have taken industry feedback on board and made further revisions to refine the proposed levy adjustments. It is our priority to make the levy fit for purpose, fairer for all and ensure we can continue to deliver the support industry have told us they need, now and in the future.  

While we appreciate that the seafood industry is under financial pressure, our proposed changes strike a good balance, minimising impacts on the industry while allowing us to effectively support the seafood sector as an organisation. 

This consultation is an important step in shaping a levy that better serves our stakeholders.” 

Once this formal consultation process ends Seafish will make formal recommendations to government, and these will be considered by relevant Ministers across the UK Government and the Devolved administrations. There is not a timeframe for when Ministers will reach a decision yet, but businesses will have as much notice as possible before any changes come into effect so that they can plan ahead.    

Any queries about the consultation should be sent to [email protected] 

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Dragon LNG Opens Expression of Interest for 9 Bcm/a Capacity from 2029

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DRAGON LNG has announced the launch of an Expression of Interest (EOI) process for its 9 Bcm/a capacity, set to be available from September 2029.

Operational since 2009, Dragon LNG is one of three LNG terminals in the UK and has been integral to the nation’s energy security. The terminal has received over 300 cargoes, handling up to 25% of the UK’s winter LNG imports in recent years.

The terminal is known for its flexibility and reliability, boasting an impeccable safety record. Capacity holders can access the liquid National Balancing Point (NBP) and Title Transfer Facility (TTF) hubs, expanding their market reach. Situated on the largest estuary in Wales and one of the deepest natural harbours globally, Dragon LNG can accommodate vessels up to 217,500 cubic metres. It features two storage tanks with a combined capacity of 320,000 cubic metres. The terminal can send out up to 298 GWh per day (or 25.6 million cubic metres per day) of natural gas. Since the commissioning of its reliquefaction plant in 2018, which prevents boil-off losses during storage, Dragon LNG offers a ‘zero send-out’ product, enhancing value and flexibility for customers.

Dragon LNG is also advancing its commitment to sustainability. Following the successful installation of renewable electricity generation capacity, the terminal aims to achieve Net Zero emissions by 2029. This initiative will lower the carbon intensity of LNG processed through the terminal, reducing associated carbon costs.

The EOI process will remain open until Monday, 1st July 2024. Interested parties can express their interest by completing the form available at www.DragonLNG.co.uk/2029capacity-EOI.

Based on the feedback received, Dragon LNG plans to hold a capacity auction in the winter of 2024/25, pending regulatory approvals.

For further information and discussions regarding this opportunity, interested parties can contact the team at [email protected].

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