Keir Starmer is struggling to contain a Labor meltdown on the eve of his global business summit, after scapegoating a minister for attacking P&O Ferries.
The Prime Minister raised the ire of unions and MPs after he publicly rebuked Louise Haigh for suggesting customers boycott the company.
The Transport Secretary's intervention triggered a threat from Dubai-based parent company DP World to withdraw a £1 billion investment in the UK – set to be one of the centerpieces of tomorrow's summit.
But while Sir Keir's crackdown appears to have saved the deal, Ms Haigh and Angela Rayner – who jointly issued a press release last week criticizing P&O Ferries for laying off 800 staff in 2022 – are considered 'crazy'.
Conservatives pointed to the dispute as proof of the damage that the Labor Party's “student politics” will do to the country's prospects.
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 go ahead after being given “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.'
