Frantic negotiations over the weekend saved the attendance of DP World at a UK economic summit after adverse comments threatened to scupper the event.
A spat between DP World and the UK government has been resolved. The company was on the brink of pulling out of a unique economic summit, after adverse comment from a UK government minister. Frantic negotiations over the weekend have found an accord. DP World has confirmed that their delegation will be in London on Monday (14 October).
DP World, the Middle East corporation with worldwide port and logistics and maritime interests, was in danger of cancelling an investment programme in the UK after the UK transport secretary, Louise Haigh, repeated words in a UK government press release, condemning a DP World subsidiary company as ‘rouge employers’.
P&O mentioned in government statement
The spat could not have come at a more inopportune time for the recently elected UK government. The prime minister, Keir Starmer, and his ruling Labour Party, are hosting a unique economic summit in London today. The summit is intended to introduce invited delegates to business opportunities in the UK. An important part of the summit was to be the announcement of a £1bn (US$1.31bn) investment by DP World, kick-starting a new development programme at their London Gateway container terminal.
However, in an interview last week, supporting new employment legislation, transport secretary Louise Haigh repeated a government press release, which said the new legislation was in response to sharp practice by ‘rouge employers’, which named P&O Ferries. The company was involved in a controversial ‘hire and fire’ scandal just over two years ago. Around 800 British seafarers were sacked (allegedly by text) and replaced by overseas agency staff, at lower wages. P&O Ferries is a subsidiary of DP World. That comment was enough to draw the ire of the Dubai-based company. It put in jeopardy their participation in the summit and drew a threat to review their investment plans.
Money talks and talk on money
The economic summit is reported to be worth fifty billion pounds to the UK economy. That level of investment may be why Keir Starmer has distanced himself, and his government, from the comments of his transport secretary. However, the DP World delegation, and the other guests around the table in London, will all have eyes on the presence of the government press release, and on the possible absence of the transport secretary. It is a remarkable about-turn from all parties concerned.
The billion-pound investment in London Gateway will mean more than new infrastructure, it will mean new jobs for the Essex side of the River Thames. It may even mean opportunities for some former seafarers. However, with the eager willingness of the prime minister to send his transport secretary overboard, to avoid capsizing his economic summit, Louise Haigh could be the 801st casualty of the P&O Ferries fire and hire controversy. She may get a text message of her own.
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