Starmer rebukes minister over P&O ‘boycott’ call

Transport Secretary Louise Haigh called for a boycott of P&O Ferries in an interview last week

Sir Keir Starmer has publicly rebuked one of his ministers for the first time, following remarks that appeared to put off a company attending an important investment summit on Monday.

Transport Secretary Louise Haigh said that she had boycotted P&O Ferries in recent years and would encourage others to do so after the firm sacked hundreds of workers in one go in 2022 and replaced them with lower paid agency staff.

But P&O Ferries’ parent company, DP World, has now suggested it will not attend the government’s flagship gathering for potential investors and may postpone a £1bn investment announcement because of remarks.

“I think we'll resolve that,” Starmer told the BBC’s Newscast podcast.

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When I asked if Haigh had been wrong to describe the company as cowboys and suggest a boycott, he said: “Well, look, that's not the view of the government.”

It is a view Haigh has set out before, but words mean more when you are a secretary of state.

A Downing Street spokesperson told the BBC on Friday afternoon: "We welcome P&O Ferries' commitment to comply with our new seafarer’s legislation, which protects against damaging fire and rehire practices".

It said it was continuing to "work closely" with DP World, which also owns Southampton Port.

On Monday, the UK is hosting its International Investment Summit, where ministers will try to attract billions of pounds of investment.

DP World declined to comment on the reports that the London Gateway investment was under review because of Ms Haigh's comments.

Responding to the incident, Conservative shadow business secretary Kevin Hollinrake said that on the eve of the investment event, it was a "body blow for the government".

"[It] shows that Labour cabinet ministers have never been in business, don’t understand business and don’t know how to talk to business. They just haven’t got a clue." he said.

Senior figures I have spoken to in government are incensed at the suggestion from a senior minister of a boycott – at just the point they are trying to claim they lead a “pro-business” administration.

I understand conversations between the government and the company are ongoing to try to tempt them to turn up on Monday.

Starmer added that he believed the investment summit was evidence of a growing confidence from companies in the UK’s economy.

“I think Heathrow Airport's had to sort of expand the VIP area, the sheer number of people coming in for our summit,” he said.

But the prime minister could have done without a public row with one of those invited and with one of his cabinet ministers.