Chancellor Reeves Reconciles with P&O Ferries Amid £1bn Investment Controversy

Chancellor Rachel Reeves expressed confidence in using P&O Ferries, despite earlier condemning the company's 'disgraceful behavior.' She has refrained from echoing the transport secretary's remarks concerning P&O Ferries, which nearly jeopardized a £1 billion investment from the company's Dubai-based parent entity, DP World.

By Faye Brown, political correspondent and Paul Kelso, commercial reporter

Monday, October 14, 2024, 5:

Rachel Reeves has stated she would have no issues traveling on a P&O ferry despite the recent controversy over the company's fire-and-rehire policies.

The finance minister was prompted to explain her stance following critiques from her peers that nearly jeopardized an important investment reveal by the owner of the travel company before a key meeting.

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In 2022, P&O Ferries sparked significant outrage by abruptly dismissing 800 of its crew members and substituting them with less expensive labor from foreign agencies.

On Friday, it was revealed that DP World, headquartered in Dubai, contemplated withdrawing £1 billion in investments from its London Gateway container port. This consideration followed remarks by Transport Secretary Louise Haigh, who labeled P&O, a subsidiary of DP World, as a "rogue operator" and urged for a boycott.

In a conversation with Sky News, Ms. Reeves clarified her position, differing from Ms. Haigh's comments by stating, "I wouldn't have any issues traveling on a P&O ferry."

She described the £1 billion investment, which was preserved following intense negotiations over the weekend, as "really important" because it will "create valuable employment opportunities, offer fair salaries, and enhance our ability to trade globally."

In a March 2022 tweet, Ms. Reeves criticized the P&O layoffs, labeling them as "disgraceful behavior" and stating they ought to be outlawed.

When questioned about her indifference to the source of investment, the chancellor stated that her administration has implemented legislation to safeguard seafarers against widespread future layoffs.

"Under Conservative rule, employers had the flexibility to dismiss and subsequently reemploy staff. They could also engage in the use of zero-hour contracts, which often exploit workers. We are putting a stop to these practices," she stated, referring to the Employment Rights Bill.

When questioned about the compatibility of Labour's workers' rights policies with the necessity for private capital, Ms. Reeves stated that governments can support both labor interests and business growth.

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She stated, "Being in favor of working people necessitates fostering a climate that encourages businesses to invest in Britain."

"Likewise, supporting businesses effectively means also supporting the training and development of workers to equip them with the necessary skills for available jobs. These two elements are interconnected."

Ms. Reeves has joined other prominent leaders in distancing herself from the remarks made by the transport secretary. Prime Minister Sir Keir Starmer expressed that he does not agree with Ms. Haigh's opinions, and Science Secretary Peter Kyle noted that the company has made significant progress and that DP World had agreed to the government's latest labor rights legislation just last week.

If the funding had been put on hold, it would have significantly undermined the government's International Investment Summit on Monday, where Sir Keir welcomed top executives with open arms, aiming to clinch deals worth billions.

DP World announced that following "constructive and positive discussions with the government," it has received the necessary clarity and will therefore participate in the upcoming event.

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The firm operates port and logistics facilities across over 60 nations, achieving worldwide revenue close to £14 billion in the previous year.

On Monday, the announcement was made regarding the investment strategy to develop London Gateway into the UK's biggest container port over the next five years, which will include the creation of an additional 400 permanent jobs.

Sultan Ahmed bin Sulayem, the group chairman and CEO of DP World, stated: "DP World London Gateway will facilitate the smooth flow of trade in Britain in the future by linking local exporters to international markets and providing essential supply chain stability for the entire economy.

"I take great pride in this substantial investment that highlights DP World's enduring dedication to the United Kingdom."

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