Minister wriggles on colleague's call for P&O Ferries boycott

The Business Secretary today wriggled on whether he agreed with Louise Haigh's call for a boycott of P&O Ferries amid a Labour meltdown on the eve of a crucial global business summit.

Jonathan Reynolds merely insisted it was 'not the government's position' as he was repeatedly grilled over his Cabinet colleague's attack.

Pressed on whether he would shun the operator Mr Reynolds said he 'not used a ferry recently', suggesting it would depend on whether they were committed to fair treatment of staff.  

He admitted that the government needed to 'have a conversation' with the firm's Dubai-based owner DP World, which threatened to pull a £1billion investment package. 

Keir Starmer desperately moved to save the deal by issuing a slapdown to Ms Haigh.

But Ms Haigh and Angela Rayner - who jointly issued the press release last week slamming P&O Ferries for firing 800 staff in 2022 - are said to be 'hopping mad'.

In an interview on Sky News this morning, Mr Reynolds denied that Ms Haigh had 'undermined' the summit saying she is 'part of the team'.

On whether he felt the same way about the need for a boycott, Mr Reynolds said: 'That's not the government's position.' 

Tories pointed to the row as evidence of the damage Labour's 'student politics' will do to the country's prospects. 

The spat began when Ms Haigh and Ms Rayner trumpeted new legislation to protest seafarers last week, criticising P&O Ferries as a 'rogue operator'.

The firm was slated by politicians from both main parties in March 2022 when it suddenly sacked 800 British seafarers and replaced them with cheaper, mainly overseas, staff, saying it was necessary to stave off bankruptcy.

Sir Keir said in an interview that Ms Haigh's call for a boycott of the firm was 'not the view of the Government'.

Officials are said to have spent hours 'hitting the phones' to repair the damage and re-confirm the announcement. 

A source said that 'there was a lot of engagement overnight' – with assurances given that the Government did not support a P&O Ferries boycott.

Yesterday afternoon DP World announced it would go ahead after being given 'the clarity we need'. The company also said its chairman, Sultan Ahmed bin Sulayem would attend the summit.

It marks a frenzied start to the event, at which Ministers are launching a new industrial strategy that aims to 'hardwire stability for investors'.

Insiders told the Observer that Ms Haigh and Ms Rayner were 'hopping mad' No10 had not protected them, amid claims they were not aware the investment was in the offing. 

'It shows the tension between the workers' rights stuff and the investment stuff. This is going to keep happening unless we sort out the comms and the grid,' an insider told the paper. 

Labour MP Ian Byrne said last night: 'Lou Haigh is right to refer to P&O Ferries as a rogue operator.

'They sacked their entire workforce without notice, via video call replacing them with agency workers.

'These are the practices of a rogue operator which should never be forgotten or forgiven by our movement.'

One Labour MP told the Telegraph that Ms Haigh had been made a 'scapegoat', asking why Ms Rayner had not been blamed.

A No 10 source insisted Sir Keir 'retains confidence' in his Transport Secretary after some Labour MPs privately said her position is 'untenable'. 'I can't see how she'll survive this,' said one backbencher.

Former business secretary Kemi Badenoch told the Mail on Sunday: 'Labour's student politics was bad in Opposition. In Government it is costing us real money and real jobs. 

'To watch £1 billion and thousands of jobs nearly disappear because of Louise Haigh's foolish comments is painful because we've still got five years of this, and at this rate there won't be much of an economy left.'

Ms Badenoch, who has just been voted into the final two for the Tory Party leadership, added: 'I led last year's summit, which brought in £30billion of new investment. It took a year of hard graft working closely with business.'

According to Shadow Business Secretary Kevin Hollinrake, Ms Haigh's comments 'speak to Labour's general attitude to the private sector'.

A Government spokesman said: 'DP World's investment in Britain is a vote of confidence in the stability and seriousness of the Government. We welcome the jobs and opportunities it will create.

'By working in partnership with businesses and investors from all over the world, this Government is unlocking the UK's potential and ambition. As our International Investment Summit will show, Britain is once again open for business.'