PLAID CYMRU’s Shadow Economy Minister Rhun ap Iorwerth has warned that the current crisis in the steel industry is an indicator of potential problems across Wales’ foundation industries. Rhun ap Iorwerth warned that the steel industry’s troubles were a ‘canary in the mine’ warning of deeper problems across a range of core industries. Figures highlighted by Plaid Cymru show decline in the turnover in some of Wales’ core industries, such as the chemical industry and the production of basic metals. Total GVA of the Foundation Industries in Wales has declined by 39% in recent years – from £2.8 billion in 2008 to £1.7 billion in 2013.
Rhun ap Iorwerth called on the Welsh Government to take action to help industries combat high energy costs, and also says said Governments should look for maximum flexibility in the use of EU procurement rules. Plaid Cymru’s Shadow Economy Minister Rhun ap Iorwerth said: “Rising energy costs, competition from global markets and a lack of support from both the Welsh and UK governments have left Wales’ steel industry vulnerable. But these problems are not exclusive to steel, and we should view the problems in the steel industry as a canary in the mine warning for all of Wales’ core industries.
“Figures show that the threat to our economy runs far deeper than steel, but affects the range of industries that our economy is built upon. This includes the chemical industry, other metals, and wood products. Wales’ foundation industries have witnessed a steep decline of almost 40% since 2008. “We need to take action now before it’s too late. We know that high energy prices for industries are a problem, and we need to explore how we can reduce these costs. But UK governments should work with the EU to ensure maximum flexibility in use of procurement legislation so that they can better protect British industry.”
A Welsh government spokesman said: “We have raised with the UK government over several years our concerns about the impact high UK energy prices are having on the competitiveness of our industries and again call on them to address this major problem. “The economy minister has setup an industry-led task group to gather examples of good procurement practices and to identify support other EU countries have provided to their steel industries.”
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