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Talks continuing with Tata steel, Welsh secretary says

Getty Images A view of Tata Steel's site in Port TalbotGetty Images
The Financial Times has reported Tata may close its site in Port Talbot if a deal is not done in 12 months

The Welsh secretary says talks over a subsidy to help Tata Steel reduce its carbon emissions are continuing.

Sir Robert Buckland said people should be "a little cautious" about media reports that the company wants £1.5bn.

He added a decision on the matter should be made by the next prime minister.

On Friday the Financial Times reported that Tata would consider closing its sites if a deal is not done in the next 12 months.

Tata Group owns the UK's biggest steelworks, in Port Talbot, which employs 4,000 people.

Its chairman Natarajan Chandrasekaran told the FT a transition to a "greener steel plant" is "only possible with financial help from the government".

"We have been in discussions over the last two years and we should come to an agreement within 12 months.

"Without this, we will have to look at closures of sites."

The report said Tata wants to close two blast furnaces at Port Talbot and build two electric arc furnaces that will be less carbon intensive, at a cost of around £3bn.

Reuters Sir Robert Buckland walking outside No.10 Downing StreetReuters
Sir Robert Buckland was appointed Welsh secretary following the resignation of Simon Hart

Speaking to journalists, Sir Robert, who became Welsh secretary following Simon Hart's resignation three weeks ago, said it was "important we don't base the continuing discussions on figures that appear in the newspapers".

"I think it's important that we negotiate directly rather than through the media and therefore I think I'm right in saying we just need a degree of caution when it comes to the headline numbers here.

"We have always understood that they (Tata) are looking for an element of funding, if you like match-funding for the project.

"That is certainly our continued understanding and we will work on that basis."

Sir Robert said the UK government "strongly supports" the steel industry's transition to "something much less carbon-heavy" and Tata should be reassured that "we want to work with them in order to make a successful transition and to ensure the continuation of our steel industry".

He added that the "lines are open" between the UK government and the company, but suggested any agreement would not be made until the next prime minister is in place.

"This is a very important matter.

"It obviously will involve decisions made at the highest level by the Treasury and indeed by the prime minister and I think it's only right that those decisions are made by the new prime minister."