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SAJID: Brexit to Spoil Steel Sector

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Sajid Javid MP, the Secretary of State for Business, Innovation and Skills and President of the Board of Trade

Business Secretary Sajid Javid said theBrexit will be a nail in the coffin of ailing British steel sector….reports Asian Lite News

Sajid Javid MP, the Secretary of State for Business, Innovation and Skills and President of the Board of Trade
Sajid Javid MP, the Secretary of State for Business, Innovation and Skills and President of the Board of Trade

Responding to Tata Steel writing to its employees to stress the importance to the business of Britain’s EU membership, Business Secretary Sajid Javid MP said: “There’s no doubt that Brexit will worsen the challenge the UK steel industry already faces.”Potential bidders for Port Talbot could disappear following a vote to Leave. It will be a huge blow to the sales process.”

Labour MP for Aberavon, Stephen Kinnock, said: “Tata’s statement makes it clear that a vote to leave the European Union would be a hammer blow for the British Steel Industry.

“A vote to leave will mean less power, the introduction of tariffs and a shrinking share of the global market for British steel.

“That is bad for Britain, bad for Wales and it is my constituents and those in steel communities across the country who will pay the cost of Boris Johnson and Nigel Farage’s political experiment.”

 

Following is the full statement on What the EU referendum means for Tata Steel:

“The UK will be going to the polls on 23 June to decide about its relationship with the European Union. Many people have been asking what Tata Steel’s position is on the topic. As for all Tata enterprises, Tata Steel has political neutrality as one of its core principles. However, the relationship between the UK and the European Union is very relevant for the company.

“The European Union influences very important aspects of Tata Steel’s business in the UK,” says Tim Morris, Head of Public Affairs for Tata Steel in Europe. “The EU is by far our largest export market, with over a third of our UK steel heading there. And that’s not including the steel that goes via our customers – the EU is a critical export market for the UK’s car makers for example. So access to that market is fundamental to our business.”

One of the preconditions for this trade is that EU laws and regulations are followed. “These include critical regulations that impact our business – environmental controls and anti-dumping rules to name but two,” says Tim. “But if the UK were to exit the EU and we set these rules ourselves, it is likely we would still need to adhere to EU rules to enter that market. The difference: we would no longer have a say in how they are set up or applied.”

The EU does not only take, it also gives. “The EU is a source of cash for the UK business – funds for environmental improvements, infrastructure development and R&D,” Tim points out. That’s one of the reasons for support for remaining in the EU from groups such as the CBI, EEF, TUC and individual trade unions. The trade union movement is also stressing the role of the EU in protecting workers rights.

But there’s plenty that needs to change too. “There’s definitively scope for major improvement for how decisions are made in the EU and less bureaucracy” says Tim. “And one of the key obstacles that the UK Government states in his inability to do more for the steel sector in the UK are the EU ‘state aid’ rules that aim to set a common standard for how government’s support industries. Plus there will be non economic factors that each of us will have to make our minds up on – controls on immigration for example.”

Ultimately, says Tim, it’s a choice for the individual, but one that deserves careful thought. “You may be a Brexiteer or you may be a Bremainer. But either way the choice you make on 23 June will make a difference to your working life.”