Comments made by a senior UK government minister have jeopardised DP World’s investment plans, and threaten to capsize a unique economic summit, despite those words being written in a government press release

A one billion pound investment in UK port operations has been put in jeopardy by an untimely statement from a government minister. The issue has blown up on the eve of a unique economic investment summit, hosted by the UK government. On Monday (14 October), the UK government has invited investors to London to discuss opportunities to do new business with the UK. Planning for that summit has been thrown into chaos by remarks from the UK transport secretary, Louise Haigh.

It is likely that a delegation from DP World will now snub that invitation. The UK government has been forced to refute comments, made in a television interview a few days ago, made by the UK transport secretary. Louise Haigh remarked on a controversial staffing decision made by P&O Ferries two years ago, calling for a consumer boycott of their services. The ferry company is a subsidiary of DP World. The matter has been a huge embarrassment for her government.

Derail economic summit

Britain is hosting an economic summit on Monday, aimed at attracting overseas investment to help stimulate the UK economy. The summit, in London, will be chaired by the UK prime minister, Keir Starmer, who was elected just over one hundred days ago, in a sweeping victory for his Labour Party. However, a row over comments made by one of his ministers threatens to derail the entire event. Last week, the transport secretary was interviewed on UK television, after a government statement had been made in support of new employment legislation.

“Seafarers will be better protected against rogue employers thanks to tough new legislation being introduced to Parliament. The statement says that the Employment Rights Bill will introduce new protections specifically devised for seafarers, toughening the laws around collective dismissal and cementing seafarer wage protections in UK law. “This package of seafarer protections is aimed at preventing another P&O Ferries scandal from happening, after hundreds of seafarers were fired and replaced with lower paid agency workers by the company in March 2022 – prompting outrage up and down the country,” says the government statement.

Rogue operator remarks

In March 2022, ferry company P&O controversially dismissed around 800 British seafarers and replaced them with cheaper, foreign agency crew. The Labour Party, at the time in opposition, expressed outrage – including the shadow transport secretary Louise Haigh. Now, Ms Haigh holds that portfolio in government. “In less than 100 days of this government, we have brought forward legislation that will mean P&O Ferries and the scandal that it brought to Britain will never happen again,” Transport Secretary Louise Haigh told ITV News.

“They’re a rogue operator. We’re cracking down on the way that they treated employees, and we want to see them mirror the standards of other operators that come in and out of Great Britain’s waters,” she told ITV News.“I’ve been boycotting P&O Ferries for two and a half years, and I encourage consumers to do the same.”

Delayed, reviewed or cancelled?

In what was lead news in all the British media, DP World has reportedly put their investment decisions on hold for London Gateway. The company was scheduled to announce a £1bn ($1.31bn) programme for the port. It was expected to be the headline news from the meeting. Now, DP World, which is already one of the biggest overseas players in the UK logistics industry, and recognised as a vital part of UK trade operations, is likely to snub the conference.

Level-headed business commentators say it is unlikely that DP World could pull the plug. The massive investment programme planned for London Gateway is too important overall. The intermodal port, on the River Thames, forms part of the economically favoured Thames Gateway Freeport. DP World also operates Southampton in England, and recently introduced a unique financial incentive to switch mode from road to rail, a move widely hailed by government sources at the time.

Transport secretary thrown overboard

The prime minister, Keir Starmer, has publicly rebuked his transport secretary for her comments – despite her words being reflected in that government statement. Over the weekend, negotiations “at the highest level” have been undertaken between the UK government and DP World. That can only mean that the prime minister himself has been in touch with Dubai. The UK government has distanced itself from the comments. A statement issued to the media at large made that clear. “The transport secretary’s comments do not reflect the views of this government,” it said.

From 1 December, ferry operators that regularly call at UK ports at least 120 times a year will have to pay their seafarers at least the equivalent of the UK National Minimum Wage. Whether Louise Haigh will be in office to welcome that bill into law remains in doubt. Right now, her seafaring experience seems more likely to be a walk along the plank.