A minister was left squirming on the BBC this morning when he contradicted his cabinet colleague’s recent attack on P&O Ferries.
The company sacked nearly 800 workers without notice, via Zoom, in 2022, sparking major backlash from Labour – then in opposition – at the time.
The incident was revived this week after the transport secretary Louise Haigh described the firm as a “rogue operator”, and claimed: “I’ve been boycotting P&O Ferries for two and a half years and I’d encourage consumers to do the same.”
Her remarks allegedly sparked fears parent company DP World would pull out of the government’s international investment summit in London on Monday, and drop a £1bn infrastructure project at the London Gateway.
According to reports on Saturday, the company would still be attending – although business secretary Jonathan Reynolds still seemed keen to row back from Haigh’s remarks on Sunday.
He told BBC’s Laura Kuenssberg: “We have always said and we believe that what happened with P&O Ferries was wrong. I believe even the Conservative government at the time was clear they believed it was wrong.”
He said what the company did back in 2022 was going to be illegal in Labour’s new Employment Rights Bill.
However, Reynolds added: “It’s not the government’s position to boycott them – but we are clear we do not want this country competing on ‘fire and rehire’.”
Asked for his take on Haigh’s claim that P&O Ferries are a “rogue operator”, he said: “That is not the government’s position.”
Kuenssberg said: “The transport secretary was not speaking for the government but you are speaking for the government?”
She also noted that Labour promised to bring “clarity” and “competence” with a “clear message at all times particularly to business”.
But, she continued: “Here we have in a matter of days the transport secretary giving one position, the business secretary then saying that’s not the position.
“It doesn’t look very good, does it? It looks messy!”
Reynolds just said the P&O Ferries will still be investing in the UK, even though “little things like this do crop up”.
“It’s not little, it’s a billion pounds on the table here!” Kuenssberg cut in.
He replied: “I just think you have to take that step back and say, this is a government that is improving people’s security in the workplace, across the board, and attracting the key flagship investment necessary for taking the economy forward.”
Kuenssberg said Labour used to call on the last government to suspend contracts with P&O, adding: “Is it just the case that now you’re in government you need the cash, so you’ll do a deal?”
He said now Labour are in government, they can stop a repeat performance from P&O.
The spat showed a strain emerging between the new government’s plan to be “pro-business” and grow the economy, and its efforts to strengthen workers’ rights.