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A billion-pound investment in the UK by ferry owner P&O was at risk last night after ministers attacked the company's working practices.
Mr Prime Minister Keir Starmer has been forced to slam Transport Secretary Louise Haigh – for the second time since the election – for labeling P&O a “rogue operator”.
Ms Haigh's comments sparked fury at P&O Dubai-based owner DP World, which had planned to announce the massive new investment on Monday at Labour's global business summit.
But yesterday the company told News from the Sky the decision was under review and DP World CEO Sultan Ahmed bin Sulayem would no longer be present at the event.
This forced Downing Street to distance itself from Ms Haigh – according to a source saying her comments in the ITV interview were “her personal views and do not reflect the views of the Government”, although she repeated similar comments made by herself and Deputy First Minister Angela Rayner in a press release issued the same day.
A billion-pound investment in the UK by ferry owner P&O was at risk last night after ministers attacked the company's working practices
Prime Minister Sir Keir Starmer was forced to slam Transport Secretary Louise Haigh – for the second time since the election – for branding P&O a “rogue operator”
Ms Haigh (right) and Angela Rayner (also seen with RMT general secretary Mick Lynch) planned P&O's widely criticized actions for 2022, when 800 British seafarers were suddenly made redundant and replaced with cheaper staff, mostly from overseas
There have been suggestions that Downing Street lied to the Transport Secretary to protect Ms Rayner.
Both sides planned P&O's widely criticized actions for 2022, when 800 British seafarers were abruptly dismissed and replaced with cheaper workers, mainly from abroad.
In an interview with ITV on Wednesday to announce the new workers' rights, Ms Haigh said: 'I have been boycotting P&O Ferries for two and a half years and I encourage consumers to do the same.
– He is a dishonest operator. We are fixing the way they treated staff and want them to reflect the standards of other operators entering and leaving UK waters.
“Make no mistake, it's good for employees and good for business. Cowboy operators like P&O Ferries will no longer be able to operate with impunity, undercutting good employers in the process.
Downing Street rejected her comments after Ms Haigh was sharply criticized by the Prime Minister in August.
She blushed when train drivers from the Aslef union announced a new series of strikes in August, just 48 hours after the government gave them a 14.25% pay rise.
The event comes ahead of Monday's Global Investment Summit, hosted by Prime Minister and Chancellor Rachel Reeves, and aimed at showcasing the UK as a place to do business.
The event is already mired in reports of disorganization and claims that some bosses may pull out at the last minute.
According to Sky, Dubai-based DP World was expected to announce a major new investment in the London Gateway container port during the summit.
There have been suggestions that Downing Street lied to the Transport Secretary (above) to protect Ms Rayner
Many of those made redundant by P&O were members of the RMT trade union – they were seen demonstrating after the mass layoffs in 2022.
This would mean expanding the Essex facility with two new ship berths and a second rail terminal, making it the largest port in the UK.
Conservative shadow business secretary Kevin Hollinrake said DP World's decision was a “blow to the life of government” that showed ministers “don't understand business and don't know how to talk to it”.
He added: “New investment should be flowing in just 100 days after investment commences, and it should not be feared because of anti-business statements or concerns about the impact of Labour's employment and tax policies.”
Sir Keir declined to answer questions directly about the row yesterday, but said the summit “which brings leading investors from around the world to the UK” was “very, very good for the country and very, very good for the future of jobs ” '.
A Government spokesman said: “We welcome P&O Ferries' commitment to upholding our new seafarers legislation.
“We continue to work closely with DP World, which has already made significant investment in London Gateway and Southampton ports, to help deliver benefits to the UK economy.
“Next week's International Investment Summit will bring together hundreds of global companies to show that the UK is open for business.”
DP World has been contacted for comment.
