P&O Ferries owner DP World is set to attend a UK investment summit on Monday despite a spat over ministers’ criticism of the company.
There were fears Transport Secretary Louise Hague would pull out of the summit, where she was expected to announce a £1bn investment, after she criticized the ferry company and urged consumers to boycott it.
The expansion of the company’s London Gateway port in Essex is likely to go ahead, with some expecting an announcement within the next few days.
Whitehall officials said on Saturday there had been a “warm engagement” between senior Whitehall leaders and the government since Sir Keir Starmer distanced himself from ministers’ comments.
The government hopes to host an international investment summit and attract billions of pounds of investment.
A Downing Street spokesperson said the summit would “demonstrate that the UK is open for business” with a view to potential economic growth.
DP World said the London Gateway port expansion would bring hundreds of jobs to Thurrock.
The United Arab Emirates-based company also owns the Port of Southampton.
Sir Keir appeared on a BBC newscast on Friday and said Mr Hague’s comments were “not the government’s view”.
The Prime Minister is understood not to have been directly involved in the negotiations with DP World and had not spoken to him personally about Mr Hague’s comments.
The row comes after Mr Haig described P&O as a “rogue operator” in an interview with ITV on Wednesday, saying it would lay off nearly 800 seafarers in 2022 and replace them with cheaper workers. It has begun.
Asked if he had used the ferry service, he said: “I have boycotted P&O ferries for two and a half years and would encourage consumers to do the same.”
DP World said the move was necessary to ensure the survival of the ferry operator and thousands of jobs.
Mr Haig’s comments in the interview came at the same time that the Department for Transport announced new legislation aimed at protecting seafarers’ jobs from so-called “fire and rehire” actions by “rogue employers”.
In the announcement, Deputy Prime Minister Angela Reiner reportedly described P&O Ferries’ actions to date as “outrageous”.
But government officials later told the BBC they were furious at specific proposals for consumers to boycott ferry companies.
Mr Hague’s comments also drew criticism from Tories, with shadow economy secretary Kevin Hollinrake claiming Labor “doesn’t understand business”.
But Liam Byrne, the Labor leader on the House of Commons Business and Trade Committee, defended Mr Hague.
He said: “She is absolutely right to say that the past conduct of P&O, which is owned by DP World, has been completely unacceptable.”
The unrest exposed tensions between the new government’s desire to attract business and strengthen workers’ rights.
