The Government had to “have a conversation” with DP World to secure its investment after a row over the Transport Secretary’s call to boycott P&O Ferries.
Business Secretary Jonathan Reynolds said the investment, which was reportedly put in jeopardy by scathing criticism of the ferry operator, was going ahead.
Dubai-based DP World, which owns P&O, also said it is attending an investment summit after getting “the clarity we need” from the Government.
Mr Reynolds was asked on Sunday Morning With Trevor Phillips how close the Government came to losing DP World’s planned £1 billion investment.
“We’ve had to have a conversation following some of the press reports,” he said.
But he said DP World’s investment is going ahead and the company is attending the International Investment Summit on Monday.
A DP World spokesperson said: “Following constructive and positive discussions with the Government, we have been given the clarity we need. We look forward to participating in Monday’s International Investment Summit.”
P&O was criticised by politicians from both main parties in March 2022 when it suddenly sacked 800 British seafarers and replaced them with cheaper, mainly overseas, staff, saying it was necessary to stave off bankruptcy.
On Wednesday, Deputy Prime Minister Angela Rayner and Transport Secretary Louise Haigh introduced legislation to prevent similar actions.
Ms Rayner said the incident had been “an outrageous example of manipulation by an employer” in a Government press release.
The release specifically highlighted P&O among “rogue employers” and said it would “close a loophole exploited by P&O Ferries”.
In an ITV interview Ms Haigh went further, saying: “I’ve been boycotting P&O Ferries for two-and-a-half years, and I encourage consumers to do the same.”
Mr Reynolds said it was “not the Government’s position” that P&O is a rogue operator when asked on Sunday With Laura Kuenssberg.
He was asked about calls Labour made in opposition for licences with P&O to be suspended over its fire-and-rehire practices and whether it is the case that now the party is in Government, it needs the cash so is willing to do a deal with the firm.
He said: “It’s now the case that, as we’re in Government, we can stop what happened with P&O Ferries happening again.”
The Business Secretary said: “Where companies accept that we’re not allowing that to happen anymore, and we can work with them on investments into the country, we can have a conversation with them, we will do. So 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 on Sunday Morning With Trevor Phillips if Ms Haigh had undermined the Government and whether she had apologised, he said: “I don’t see it that way.”
When it was put to him that the situation was a lesson that the party must behave differently in government than in opposition, he said: “I don’t think anyone in the new Government needs that lesson.”
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