VALERO OIL REFINERY would be “massively undermined” by plans not to introduce new tariff rates if there is a no-deal Brexit, a Welsh minister has said this week.

Government officials have said they will not tax 88% of imports if the UK leaves the EU without agreeing a departure deal.

Labour’s Eluned Morgan said she was “hugely disappointed” as the Pembroke refinery provides 14% of Welsh exports – as well as employing 500 people.

Last month, the Welsh secretary said was safe and would not close under no deal.

Alun Cairns had been pressed on the warning, in the original version of UK ministers’ no-deal Brexit assessment, that major oil refineries could be forced to close under the new trade terms planned.

Ms Morgan, the Welsh Government’s Minister for International Relations, tweeted on Tuesday: “I am hugely disappointed @GOVUK has failed to introduce new tariff rates to protect our oil refining sector, which is responsible for 14% of Welsh exports.”

The UK government had “massively undermined the competitive position of the sector by sticking to zero tariffs in the event of a no deal”, she said.

Earlier this year, the UK government said it would introduce tariffs on some meat and dairy products shipped into the UK following a no-deal Brexit.

However, its latest plans indicate 88% of UK imports will be tariff-free if the country leaves the EU without a deal, up from 87% announced in March.

UK Trade Policy Minister Conor Burns, has said: “Our temporary tariff regime will support the UK economy as a whole, helping British businesses to trade and opening up opportunities for business to import the best goods from around the world at the best prices for British consumers.”

HERE FOR ‘LONG TERM’

Stephen Crabb, MP for Preseli Pembrokeshire, told reporters: “Valero have been very clear with me, firstly they are here in Pembrokeshire for the long-term.

“They’ve got a successful track record of investing heavily to maintain Valero as one of the UK’s largest and most competitive oil refineries.

“They’ve also been very clear with me and to government directly about the negative implications of a no-deal Brexit.”

BREXIT ‘PREPARATIONS CONTINUE ‘

Ed Tomp, general manager of the refinery, said it had been making preparations to ensure it continued to “operate safely and reliably regardless of whether the UK leaves the European Union on October 31”.

“However we are concerned that 0% import tariffs on petrol could create an unfair advantage for importers, resulting in a negative impact on all UK refineries,” he said.

“As such we have been working with the United Kingdom Petroleum Industry Association to ensure our concerns – and the potential impact of zero tariffs – are clearly communicated to the UK government.”