Keir Starmer rebukes Louise Haigh over P&O Ferries ‘boycott’ call

Sir Keir Starmer has openly criticized one of his ministers for the first time since assuming office, after her comments seemed to cast uncertainty on a £1 billion investment.

Transport Secretary Louise Haigh announced this week that she has chosen to avoid using P&O Ferries in recent years and is urging others to do the same. This decision follows the company's layoffs of hundreds of employees in 2022, replacing them with less expensive agency workers.

DP World, the parent company of P&O Ferries, has indicated that it might skip the upcoming government investment summit on Monday and could delay the investment announcement it had planned to unveil at the event.

According to the BBC, talks between the government and DP World to settle the dispute are still in progress.

"I believe we will find a solution to that," Starmer said during an interview on the BBC's Newscast podcast.

During a Wednesday interview with ITV News, Haigh was inquired about her experience with the ferry service.

"I have stopped using P&O Ferries for two and a half years, and I urge others to follow suit," she stated.

The transport secretary additionally referred to P&O Ferries as a "wayward operator."

When I inquired with the prime minister about whether Haigh's statement was incorrect, he responded, "That's not the government's perspective."

During the interview, Haigh's remarks aligned with her department's announcement of new laws designed to safeguard seafarers from what they referred to as "unscrupulous employers."

In the announcement, Deputy Prime Minister Angela Rayner was cited referring to P&O Ferries' widespread layoffs as "a shocking instance of manipulation."

A representative from Downing Street informed the BBC on Friday afternoon that they appreciate P&O Ferries' promise to adhere to new laws regarding maritime workers, which are designed to prevent harmful practices related to firing and rehiring employees.

It stated that it would keep collaborating closely with DP World, the company that also owns Southampton Port.

On Monday, the UK is set to hold its International Investment Summit, during which government officials will aim to draw in billions of pounds in investments.

DP World chose not to respond to the reports suggesting that the investment in London Gateway is being reconsidered in light of Ms. Haigh's remarks.

In reaction to the situation, Kevin Hollinrake, the Conservative shadow business secretary, stated that just before the investment event, it was a significant setback for the government.

He expressed that Labour cabinet ministers lack real-world business experience, have little understanding of how businesses operate, and struggle to communicate effectively with the business community. In his view, they are completely out of touch.

However, Liam Byrne, the Labour chair of the House of Commons Business and Trade Committee, came to Haigh's defense.

He mentioned on BBC Radio 4's Today program that she was entirely justified in stating that P&O, which is owned by DP World, has acted in a way that is entirely unacceptable in the past.

Byrne refrained from stating whether a boycott of P&O would be beneficial. However, he mentioned that there have been calls for a boycott from various political parties.

High-ranking officials I've talked to in the government are outraged by a senior minister’s proposal for a boycott. This comes at a time when they are trying to portray themselves as a "pro-business" administration.

I know that discussions between the government and the company are still taking place in an effort to persuade them to show up on Monday.

Starmer stated that he thought the investment summit showcased an increasing level of confidence among businesses in the UK’s economy.

"I believe that Heathrow Airport has had to enlarge the VIP section due to the large influx of attendees for our summit," he shared with us on Newscast.

However, the prime minister probably would have preferred to avoid a public disagreement with one of the guests and one of his cabinet members.