VALERO oil refinery would be "massively undermined" by plans not to introduce new tariff rates if there is a no-deal Brexit, local politicians have warned.

More than 500 people are employed at Valero with many hundreds more working as contractors and within supply chains.

Earlier this summer, MP Stephen Crabb told local media he had written to the UK Trade Secretary Liz Truss urging his cabinet colleagues to “rethink” tariffs for the sector. A plea which has been ignored.

Labour Assembly Member for Mid and West Wales Eluned Morgan AM said: “This is where Brexit gets serious for the economy of Pembrokeshire. Jobs have already been lost in other parts of the UK because companies are uncertain about how they will be able to trade and what their business model will look like post-Brexit.

“By his own admission Stephen Crabb has said tariffs will make it harder for Valero to invest. In attempting to appease the right of his Party, Stephen Crabb has failed to put the economic interests of his constituents who work at Valero first.”

In leaked documents, part of the UK Government’s Operation Yellowhammer scenario planning, a specific concern was highlighted that if the UK Government planned to slash import tariffs to 0 per cent under a no-deal, it may “inadvertently" lead to the closure of two British oil refineries which would bear "significant financial losses".

Labour Parliamentary Candidate for South Pembrokeshire, Marc Tierney said: “This week alone, we have seen the risk of a no-deal Brexit increase significantly. It is hugely disappointing that given his position within the Cabinet Office, Simon Hart MP, in preparing for a no-deal Brexit has no clout in influencing government decision making. Pembrokeshire’s rural, coastal community is already vulnerable to Brexit in any form, and what this county deserves is strong voices speaking up for them in Westminster.”

Preseli MP Stephen Crabb said: “The UK Government is in close and sensitive discussions with the oil refining sector about how best to protect their interests in the event of a No-Deal Brexit. It is reluctant to impose tariffs on fuel imports to avoid an increase in petrol prices for everyone. But there are other financial mechanisms that can be used to compensate refineries and these are being discussed at this moment. Welsh Government has been kept in the loop on this so Baroness Morgan should be informed.

“It is poor judgement on the part of the AM to make Valero a political football at this very important time. She and her Welsh Labour colleagues have been consistently unhelpful on this in trying to block a deal and stop Brexit altogether.

“I continue to work closely with the Valero policy team in London and continue to discuss these issues with Boris Johnson and other senior members of the government. The Prime Minister’s Plan A is still to get a Brexit deal that keeps a level playing field for UK refineries trading into the EU.”