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Tata Steel job losses 'feels like death sentence' for town Tata Steel could be helped by enterprise zone, Jones says
(about 2 hours later)
The loss of more than 750 jobs in Port Talbot is like a "death sentence" for the area, a local business owner has said. Port Talbot should be designated as an enterprise zone by the chancellor to help safeguard Tata Steel's future in the town, the first minister has said.
On Monday, Tata Steel announced 1,050 jobs would be cut, mostly in Wales. The firm announced 750 job cuts there on Monday, among 1,050 across the UK.
Economy Minister Edwina Hart said the blow would also be felt by smaller traders supplying the steelworks and its employees. Carwyn Jones told AMs that enterprise zones offered tax relief on capital spending and help with business rates.
Michael Cosker, president of the town's Chamber of Trade and owner of cafe Rolls Choice said it was a "blow". Meanwhile a mass meeting of union representatives at the Port Talbot plant will take place at 17:00 on Tuesday.
He said: "It's been a hell of a knock. It's a massive blow for the town. During First Minister's Questions, Welsh Tory leader Andrew RT Davies called on the Welsh government to cut business rates to help Tata.
"Sometimes you feel like the town has a death sentence - especially with [the future of] junction 41 still up in the air, we have so much thrown at us. Mr Jones said business rates were under review but claimed it would not be enough by itself to solve the steel industry crisis.
"We're all gutted." Problems such as a glut of steel on the world market, a strong pound and high energy costs were all outside the Welsh government's control, the first minister added.
Actor Michael Sheen told BBC Two's Newsnight it was a "very frightening time for the town". He said Economy Minister Edwina Hart had written to Chancellor George Osborne asking him to approve the idea of an enterprise zone to give firms in Port Talbot business rate relief and tax breaks.
"That has a knock on effect for the whole region, the support work that's going on, other people, jobs that are dependent on what's going on in the steelworks," he said. Meanwhile the chancellor defended the UK government in a Commons spat with his Labour shadow John McDonnell, who accused him of being quick to defend bankers' bonuses, but taking "four months to save steelworkers jobs".
"The government says that they are doing everything they can to help it but their actions and their words don't really fit together."
Steels workers in the town had been left "in the dark", he added.
In the Commons, Chancellor George Osborne was accused by his Labour shadow John McDonnell of having "immediately shot across to Brussels with an army of lawyers" to defend bankers' bonuses, but now it had "taken him four months to save steelworkers jobs".
Mr Osborne said steel was in an "incredibly difficult situation" and the industry was losing jobs in every country in the world.Mr Osborne said steel was in an "incredibly difficult situation" and the industry was losing jobs in every country in the world.
UK ministers were taking action to defend steel, he said, including measures to reduce energy costs and "deal with the dumping of Chinese steel".UK ministers were taking action to defend steel, he said, including measures to reduce energy costs and "deal with the dumping of Chinese steel".
'Very sad' On Wednesday, Mrs Hart is due to chair a task force set up in response to the job losses at Tata, and other firms who depend on steel workers' wages for their survival.
Ziaur Rahman, owner of Indian restaurant Cinnamon Kitchen on Aberavon seafront, said the news had left him "shaken". Traders 'shaken'
"Three years ago we invested a lot of money to do the building up and took a huge risk to invest in the town," he said. As politicians defended their actions and ability to help the steel industry, business owners in Port Talbot spoke of their fears for the future.
Michael Cosker, president of Port Talbot's Chamber of Trade and owner of cafe Rolls Choice said: "It's been a hell of a knock. It's a massive blow for the town.
"Sometimes you feel like the town has a death sentence - especially with [the future of] junction 41 still up in the air, we have so much thrown at us.
"We're all gutted."
Ziaur Rahman, owner of Indian restaurant Cinnamon Kitchen on Aberavon seafront, said: "Three years ago we invested a lot of money to do the building up and took a huge risk to invest in the town.
"Our trade is going to fall big time... and hold back any investment we had planned."Our trade is going to fall big time... and hold back any investment we had planned.
"It is very sad news. It has shaken us.""It is very sad news. It has shaken us."
Rebecca Morris, team leader at hotel and pub The Twelve Knights near the plant said the announcement would hit business hard.Rebecca Morris, team leader at hotel and pub The Twelve Knights near the plant said the announcement would hit business hard.
She said: "We take a lot of hotel bookings through the works.She said: "We take a lot of hotel bookings through the works.
"About 90% of our regulars are steel workers. People will either take to drink or not come at all.""About 90% of our regulars are steel workers. People will either take to drink or not come at all."
'Devastated'
Owner of recently-opened restaurant Mavericks Bar & Grill Lee Davies said the announcement would have a "massive impact" on his business.Owner of recently-opened restaurant Mavericks Bar & Grill Lee Davies said the announcement would have a "massive impact" on his business.
"Steelworkers are our main clientele," he said."Steelworkers are our main clientele," he said.
"I've spoken to a few customers who have lost their jobs and they're devastated.""I've spoken to a few customers who have lost their jobs and they're devastated."
Actor Michael Sheen, who grew up in Port Talbot, told BBC Two's Newsnight it was a "very frightening time for the town".
"That has a knock-on effect for the whole region, the support work that's going on, other people, jobs that are dependent on what's going on in the steelworks," he said.
Tata Steel Europe, which employs 17,000 in the UK, is in the throes of a wide-scale reorganisation of its business.Tata Steel Europe, which employs 17,000 in the UK, is in the throes of a wide-scale reorganisation of its business.
It employs around 5,500 in Wales and has made 5,000 cuts in the UK over the last year but was estimated to be losing £1m a day at Port Talbot alone. Announcing the job cuts on Monday, the company said "tough actions are critical in the face of extremely difficult market conditions".
It currently puts £200m a year into the Welsh economy in wages.
Monday's announcement means 750 jobs will be lost in Port Talbot, while 200 support staff elsewhere will be axed.
Other job losses will include 15 at Trostre, Llanelli along with jobs going at Hartlepool in north east England and at Corby, Northamptonshire.
The company said "tough actions are critical in the face of extremely difficult market conditions".