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Mr Keir Starmer is facing calls to sack his transport secretary after she almost torpedoed £1 billion of investment in the UK.
Last week, Louise Haigh said she supported a boycott of P&O Ferries and branded it a “cowboy operator” after sacking 800 workers in 2022.
Her comments led to Dubai-based cargo logistics giant DP World, owner of P&O, saying it would cancel a planned announcement of a £1 billion investment.
This forced Sir Keir to disown Ms Haigh, saying her comments were not shared by the Government.
Sources say officials spent the weekend “making calls” to repair relations with the company. DP World changed its mind and confirmed the investment, saying it had received “the clarity we need.”
Louise Haigh (pictured) said last week she supported a boycott of P&O Ferries and called her a 'cowboy operator'
Yesterday, a No 10 source insisted Sir Keir “retains confidence” in Ms Haigh after some Labor MPs privately said her position was “untenable”.
The company also announced that its CEO, Sultan Ahmed bin Sulayem, will now attend the International Investment Summit in London Today.
The fiasco threatened to overshadow a summit that ministers hope will attract tens of billions in new investment to the UK.
The DP World announcement will be the centerpiece of the event.
Yesterday, a No 10 source insisted Sir Keir “retains confidence” in Ms Haigh after some Labor MPs privately said her position was “untenable”. There is also growing speculation that she will face the ax when the prime minister makes his first change in government.
Helen Whately, the Tory spokeswoman for transport, is now calling on Sir Keir not to give up and consider sacking Ms Haigh. She said: “Since Louise Haigh became transport secretary, she has made bad decision after bad decision – giving trade unions a series of huge pay rises at the expense of others (and) calling on people to boycott the company on the way to a UK investment summit.
“Despite 14 years in opposition, Labor was clearly not ready for government. They need to take this seriously and Keir Starmer should consider Louise Haigh's position.
Tory MP Sir Geoffrey Clifton-Brown, who is chairman of the public accounts committee, said: “All this is because virtually none of the cabinet members have ever run a business. They don't know what it's like to employ people and encourage investment and make profits and so on.
“This is truly incompetent and very unusual. If this continues, it will give the country a really bad reputation internationally and it will be much more difficult for us to encourage investment in this country, which is absolutely essential if we are to grow our economy.
Ms Haigh's comments led to Dubai-based cargo logistics giant DP World, which owns P&O, saying it would cancel a planned announcement of a £1 billion investment
There is also growing speculation that Louise Haigh will face the first change in the Prime Minister's government
Should she go? It depends on the prime minister. He could get rid of her if he wanted. Ms Haigh has already faced criticism from the Prime Minister over the pay deal she agreed for train drivers.
The agreement on the 14.25% increase was announced in August – only 48 hours later, the Aslef drivers' union announced a new strike.
Yesterday it emerged she had agreed to a £300 bonus for conductors if they agreed to work five days a week.
Guards, who typically work four days a week for train operator CrossCountry, have threatened to strike every Saturday this month.
Former Tory business secretary Jacob Rees-Mogg said: “Louise Haigh, like most socialists, knows nothing about business. “It should focus on wasting taxpayers' money on train drivers rather than insulting our major trading partners.”
A government spokesman said: “DP World's investment in the UK is a vote of confidence in the stability and seriousness of the government. We welcome the jobs and opportunities this will create. By working with businesses and investors from around the world, we are unlocking the UK's potential and ambition.”
