EU membership increases likelihood of an Tata Steel buyer

The Indian firm has seven bidders interested in buying its UK business, including its Port Talbot plant, which employs around 4,000 people.

Secretary of State for Wales Mr Cairns fears the sale could be hampered if people vote to leave the European Union in next month’s referendum.

In a speech at the Liberty Stadium in Swansea, he said: “Our steel industry is better off as part of a single market- as a bloc we can act against steel dumping far more effectively than we could on our own. And we can get the best deal for our steel industry in what is their biggest market.”

The Conservative MP added: “Our membership of the EU makes our chances of gaining that buyer and of defending our industry so much stronger.”

Tata Steel put its loss-making UK business up for sale earlier this year and is hoping for a quick sale. Bosses have not publicly set a deadline for any deal, but have made it clear they cannot sustain reported £1 million-a-day losses indefinitely. Earlier this month, officials confirmed that all the bidders for its UK operations were interested in the whole of the business.

The sale includes Port Talbot, the UK’s largest steelworks, as well as sites at Newport and Rotherham. However, Mr Cairns warned that Brexit could see the British steel industry fall victim to EU tariffs.

“Membership of the EU is fundamental to simply attracting investors because of the benefits the single market of 28 countries brings,” he said.