He said: “The future health and competitiveness of the British steel sector is heavily dependent on remaining within the European Union. It is highly concerning to hear the myths being peddled by those who wish to leave the EU, opportunistically seizing on the crisis facing our sector.
“The EU is by far the largest market for steel outside of the UK and common sense dictates that it would be folly to break that link while the sector is battling for survival.”
HE added that, as a large trading block, the EU had significantly more clout in discussions with China regarding the need to curb over-production and subsidised exports that are proving so damaging to our sector.
He said: “While it has been suggested that a UK free of the shackles of Brussels would be free to implement significant trade tariffs to guard against future dumping of Chinese steel, there is scant evidence that the Government would actually do this. Indeed the European Commission has been keen to introduce more rigorous measures in this area, but has been prevented from doing so by UK interventions.
Mr Stace added that some had sought to claim that the EU was the cause of high energy prices for our big industrial users: “There are many reasons for the UK’s uncompetitive electricity prices and nearly all of them are home grown and can be rectified by the UK Government. We only have to look at the significantly lower prices available to German industry to see the truth of this.”
Meanwhile, Terry Scuoler, CEO of EEF, said: “Manufacturing is starting to show signs of much-needed stabilisation and the leave campaign talks about withdrawing from the single market - where nearly half of our goods are sold.
“It's breathtakingly foolish to pretend to the British public that this would be good for Britain. I hope people will realise the terrible risk this represents. It is playing political poker with the economy, with people's jobs and livelihoods being used as chips.”
Six in ten EEF members (61%) want the UK to remain in the EU, while just 5% support a ‘Brexit’, the EEF insisted. “The majority of EEF members say that remaining in the EU is important (50%) or business critical (20%) for their company. 82% say it doesn’t make sense for the UK to cut itself off from its major market.”
