DP World, the company that owns P&O Ferries, has decided to delay a reported £1bn investment in the UK following criticism from government officials. The planned expansion of its London Gateway port was supposed to be a significant part of the Labour government’s investment summit, which was set to take place on Monday. However, after Deputy Prime Minister Angela Rayner and Transport Secretary Louise Haigh condemned P&O Ferries as a “rogue operator,” DP World’s chief executive officer, Sultan Ahmed bin Sulayem, will no longer be attending the event.
This decision comes after P&O Ferries, which has been a subsidiary of DP World since 2019, faced backlash for firing 800 crew members without notice and replacing them with low-paid agency workers. In response to these actions, Rayner announced new worker protections to prevent such “outrageous” behavior, while Haigh stated that the Department for Transport would have no dealings with P&O Ferries or DP World unless for safety reasons.
Despite the criticism from government officials, a government spokesperson welcomed P&O Ferries’ commitment to comply with new seafarer’s legislation and emphasized the importance of working with DP World to support the UK economy. DP World, which also owns the port of Southampton, had plans to expand the London Gateway port by adding two deep-sea vessel berths, but this plan is now under review.
The decision to delay the investment has raised concerns about the impact of anti-business statements and worries about Labour’s employment and tax policies. Shadow Business and Trade Secretary Kevin Hollinrake described it as a “body blow for the government,” highlighting the need for new investments to bolster the economy.
As the investment summit approaches, there have been comparisons to similar events held by President Macron in France, with some industry executives expressing frustrations about the lack of information and clarity surrounding the event. Additionally, the timing of the summit, just three weeks before the government’s budget announcement, has been questioned, as major firms seek clarity on tax and spending policies.
The investment summit, set to take place at the Guildhall in London, will feature prominent CEOs and industry leaders, including a keynote speech by Labour’s Rachel Reeves. Despite the setback with DP World, the event aims to attract foreign investments and showcase the UK as a favorable business destination.
Overall, the decision to delay the £1bn investment by DP World reflects the tensions between government officials and businesses, highlighting the challenges of balancing economic growth with worker protections and corporate responsibility. The outcome of this dispute and its impact on future investments will be closely monitored as the UK navigates its post-pandemic recovery.
