Sir Keir Starmer has publicly rebuked one of his ministers for the first time since becoming prime minister, following her remarks that appeared to throw a £1bn investment into doubt. Transport Secretary Louise Haigh said this week 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 2022 and replaced them with lower-paid agency staff. P&O Ferries’ parent company, DP World, has now suggested it will not attend the government’s flagship investment summit on Monday - and may postpone the investment announcement it was due to make there. Discussions between the government and DP World to resolve the row are ongoing, the BBC understands.
The controversy stems from Haigh's comments in an interview with ITV News, where she called P&O Ferries a “rogue operator” and encouraged consumers to join her in boycotting the company. This prompted Sir Keir Starmer to issue a stark response, marking the first time he's publicly rebuked one of his minister's comments since becoming Prime Minister. He said on an episode of Newscast: "I think we'll resolve that", referring to the investment being shelved, and maintained that Haigh's view is "not the view of the government".
The incident highlights the delicate balance between promoting investment and addressing concerns over worker rights. While the government seeks to attract billions of pounds of investment, it also faces pressure to protect workers from exploitative practices. The incident has sparked a blame game within the government as the cruise giant tables their £1bn investment. This comes after claims of a briefing against Ms Haigh in a bid to save the Downing Street operation itself from criticism and shield deputy prime minister Angela Rayner.
The original complaint with DP World had come in a press release on workers’ rights detailing the P&O incident which was cleared by Downing Street and included inflammatory quotes from Ms Rayner and Ms Haigh. An ally of Ms Haigh’s branded the attacks on her as “a complete disgrace”, suggesting after a difficult few weeks the prime minister’s inner circle “is running out of friends”.
Haigh's comments come amidst a broader backdrop of economic uncertainty and growing concerns about the government's handling of various issues, including donations, staffing issues, and economic growth. Sir Keir Starmer has acknowledged these challenges, admitting that there have been “bumps and side winds” during his first 100 days as prime minister. Despite these challenges, he remains focused on attracting investment and fostering economic growth, emphasizing the significance of the upcoming International Investment Summit.
However, the fallout from Haigh's comments has raised questions about the government's ability to maintain a consistent message on these issues and could cast a shadow over the summit's success. The incident serves as a reminder of the complex challenges facing the government as it attempts to balance competing priorities in a politically charged environment. In the wake of this controversy, the government is now attempting to appease DP World and salvage the potential £1 billion investment. Negotiations are ongoing, with the government hoping to persuade DP World to attend the summit and announce the investment. Whether these efforts will be successful remains to be seen, but the incident has certainly underscored the potential consequences of differing views within the government on critical issues.
The Government's Response
The government's response to the incident has been characterized by a mix of damage control and reassurance. Downing Street has publicly distanced itself from Haigh's comments, emphasizing that they do not reflect the government's position. The government has also reiterated its commitment to working with DP World, highlighting the company's past investments in the UK.
The government's response has been met with mixed reactions. Some critics have accused the government of hypocrisy, pointing out that the government itself has previously criticized P&O Ferries for its treatment of workers. Others have argued that the government is simply trying to protect its reputation and maintain its focus on attracting investment.
Impact on the Investment Summit
The incident has undoubtedly cast a shadow over the government's flagship investment summit. While the government insists that the summit will still be a success, there are concerns that the controversy surrounding Haigh's comments could deter potential investors.
The summit, scheduled for Monday, is intended to showcase the UK as a destination for foreign investment and attract billions of pounds in new investments. Sir Keir Starmer is hoping that the summit will demonstrate the growing confidence from companies in the UK’s economy. However, the DP World incident has raised doubts about the government's ability to deliver on its promises and could damage the summit's credibility. This incident underscores the importance of consistent messaging and coordination within the government when dealing with sensitive issues that could impact economic policy and international relations.
Looking Ahead
The fallout from Haigh's comments is likely to continue for some time. The government will need to navigate a delicate path, balancing its commitment to attracting investment with its desire to protect workers' rights. The outcome of the negotiations with DP World will be closely watched as an indicator of the government's ability to manage such controversies effectively.
The incident also raises questions about the future of Haigh's role within the government. While she has been a vocal advocate for workers' rights, her comments have caused significant damage to the government's reputation and could lead to a change in her position. Ultimately, the incident serves as a reminder of the complex challenges facing the government as it attempts to balance competing priorities in a politically charged environment. Only time will tell how the government will manage these challenges and whether it can restore confidence in its ability to deliver on its promises.
