Wednesday 15 June 2016 2:13 pm

Tata Steel writes to UK staff on benefits of EU membership

Tata Steel has become the latest employer to write to its staff on the benefits of the UK's EU membership.

The Indian giant's message follows similar commentary from BT and BAE Systems earlier this week.

Although the firm avoided not explicitly encourage staff to vote for either the Leave or Remain campaigns, its' European head of public affairs Tim Morris emphasised that the EU remains the UK's largest export market for steel.

It comes as the Indian firm continues to weigh its operations in the UK, with sources suggesting that it is waiting on the result of next week's vote before making a decision.

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In the memo, Morris wrote that political neutrality is on of the steel firm's core principles, but goes on to describe single market access as “fundamental” to Tata's business.

It additionally sees Tata warn staff that if the UK were to vote for Brexit, it would still need to adhere to EU rules, but with less influence, and that the EU provides cash or environment improvements, infrastructure development and research.

However, the firm also said: “There’s definitively scope for major improvement for how decisions are made in the EU and less bureaucracy.

"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.”

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Aberavon MP Stephen Kinnock, whose constituency includes the Port Talbot steel works welcomed the comments.

“Tata’s statement makes it clear that a vote to Leave the European Union would be a hammer blow for the British Steel Industry,” Kinnock said.

“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."