The Business Secretary today questioned whether he agreed with Louise Haigh's call for a boycott of P&O Ferries amid a Labor collapse in on the eve of a crucial global business summit.
Jonathan Reynolds simply insisted that “it was not the government's position”, when repeatedly questioned about his cabinet colleague's attack.
Pressed on whether he would avoid the operator, Mr Reynolds said he had “not used a ferry recently”, suggesting this would depend on his commitment to treating staff fairly.
He admitted the government needed to “have a conversation” with Dubai-based company owner DP World, which threatened to withdraw a £1 billion investment package.
Keir Starmer acted desperately to save the deal, giving Mrs Haigh an earful.
But Haigh and Angela Rayner – who jointly issued the press release last week criticizing P&O Ferries for laying off 800 staff in 2022 – would be “mad”.
In an interview with Sky News this morning, Mr Reynolds denied that Ms Haigh had “undermined” the summit, saying she was “part of the team”.
On whether he felt the same way about the need for a boycott, Mr Reynolds said: “That’s not the government’s position.”
Conservatives have pointed to the dispute as proof of the damage that Labour's “student politics” will do to the country's prospects.
Jonathan Reynolds only insisted it was “not the government’s position” as he was repeatedly questioned about his cabinet colleague’s attack
Keir Starmer is struggling to contain a Labor meltdown on the eve of his global business summit after he scapegoated Louise Haigh for attacking P&O Ferries
Although Sir Keir's crackdown appears to have saved the deal, Ms Haigh (left) and Angela Rayner (right) – who jointly issued the press release last week criticizing P&O Ferries for laying off 800 staff in 2022 – would be 'crazy'
Labor MP Ian Byrne has joined the backlash against Sir Keir's public rebuke
The row began when Haigh and Rayner trumpeted new legislation to protest seafarers last week, criticizing P&O Ferries as a “rogue operator”.
The company was singled out by politicians from both main parties in March 2022 when it suddenly laid off 800 British seafarers and replaced them with cheaper, mostly foreign staff, saying it was necessary to avoid bankruptcy.
Sir Keir said in an interview that Ms Haigh's call for a boycott of the company was “not the government's view”.
Authorities reportedly spent hours “hitting the phones” to repair the damage and reconfirm the announcement.
One source said “there was a lot of engagement overnight” – with assurances given that the government did not support a boycott of P&O Ferries.
Yesterday afternoon, DP World announced it would move forward after receiving “the clarity we need”. The company also said its chairman, Sultan Ahmed bin Sulayem, would attend the summit.
It marks a frantic start to the event, in which Ministers are launching a new industrial strategy that aims to “consolidate stability for investors”.
Insiders told the Observer that Ms Haigh and Ms Rayner were “mad” that No10 had not protected them, amid claims they did not know the investment was coming.
“This shows the tension between the issue of workers’ rights and the issue of investment. This will continue to happen unless we resolve communications and the network,” a source told the newspaper.
Labor MP Ian Byrne said last night: 'Lou Haigh is right to refer to P&O Ferries as a rogue operator.
'They fired their entire workforce without notice, via video call, replacing them with temporary workers.
'These are the practices of a rogue operator that must never be forgotten or forgiven by our movement.'
A Labor MP told the Telegraph that Ms Haigh had been made a “scapegoat”, asking why Ms Rayner had not been blamed.
A No 10 source insisted that Sir Keir “retains confidence” in his Transport Secretary after some Labor MPs said privately that his position is “untenable”. “I can’t see how she will survive this,” said one backbencher.
Former business secretary Kemi Badenoch told the Mail on Sunday: “Labour student politics was bad in opposition. In Government, it is costing us money and real jobs.
P&O Ferries was singled out by politicians from both main parties in March 2022 when it suddenly laid off 800 British seafarers and replaced them with cheaper, mainly foreign, staff, saying it was necessary to avoid bankruptcy (file photo)
'To see billions of pounds and thousands of jobs almost disappear because of Louise Haigh's foolish comments is heartbreaking because we still have five years of this left and at this rate there won't be much left in the economy.'
Ms Badenoch, who has just been voted in the top two finalists for the leadership of the Conservative Party, added: 'I led last year's summit, which brought in £30 billion in new investment. It took a year of hard work working closely with companies.
According to Shadow Business Secretary Kevin Hollinrake, Ms Haigh's comments “speak to the Labor Party's general attitude towards the private sector”.
A government spokesperson said: 'DP World's investment in Britain is a vote of confidence in the stability and seriousness of the government. We welcome the jobs and opportunities this will create.
“By working in partnership with businesses and investors from around the world, this Government is unleashing the UK’s potential and ambition. As our International Investment Summit will demonstrate, Britain is once again open for business.'
