A British ports company has reportedly decided to pull out a £1 billion investment following criticism from government ministers. Dubai-based DP World was set to make the announcement at the Government’s International Investment Summit next Monday regarding a major investment in its London Gateway port. However, according to Sky News, this investment is now being reconsidered after Deputy Prime Minister Angela Rayner and Transport Secretary Louise Haigh made negative comments about P&O Ferries, which is owned by DP World.
The criticism towards P&O Ferries stemmed from the company’s decision in March 2022 to dismiss 800 British seafarers and replace them with cheaper, mainly overseas, staff. This move was defended by P&O Ferries as a necessary measure to avoid bankruptcy. In response, on Wednesday, both Rayner and Haigh introduced legislation to prevent similar actions, with Haigh describing P&O Ferries as “cowboy operators” and Rayner condemning the incident as “an outrageous example of manipulation by an employer.”
On Friday, Sky News reported that DP World’s chairman, Sultan Ahmed bin Sulayem, had instructed the cancellation of Monday’s investment announcement and ordered a review of the planned investment in the London Gateway port. When questioned about the situation, the Prime Minister chose not to address it directly, highlighting instead the recent significant investments in the UK over the past few weeks and the upcoming investment summit, which aims to attract global investors to the country.
The decision by DP World to reconsider its investment was described by Conservative shadow business secretary Kevin Hollinrake as a setback for the government, indicating a lack of understanding of business and communication with the business sector. Hollinrake emphasised the importance of fostering new investments within the first 100 days of the government’s term and raised concerns over anti-business rhetoric and potential impacts of Labour’s policies on employment and taxation.
During the P&O Ferries controversy, senior Conservatives also criticised the company, with then-Prime Minister Boris Johnson suggesting that it may have violated the law. The then-Transport Secretary Grant Shapps went as far as calling for the resignation or dismissal of P&O Ferries’ chief executive, Peter Hebblethwaite, following the incident. Further comments are awaited from DP World and the Department for Business and Trade regarding the reported investment withdrawal.