P&O Ferries

Lord Sikka Excerpts

Wednesday 23rd March 2022 Lords Chamber

Asked by

[Lord Sikka]

To ask Her Majesty’s Government what plans they have to appoint an independent inquiry to investigate the business practices of P&O Ferries and its parent company.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, the Government have condemned the appalling way that P&O Ferries has treated its staff. These loyal employees have been working tirelessly to keep our country supplied with essential goods, particularly through the pandemic. We wrote to P&O Ferries seeking information on the decisions it took, to determine whether it had breached UK employment law. We are carefully considering its reply, which the Secretary of State and BEIS have just received. If the rules have been broken, we will not hesitate to take further action.

[Lord Sikka (Lab)]

My Lords, let us look at the facts. P&O has abused the employment rights of its workers. It took public money while its parent company paid £270 million in dividends. Its UK operating profits are almost wiped out by unexplained administrative expenses. The company is engaged in profit shifting and pays little or no corporation tax. Its 2020 accounts show a pension deficit of £95 million. Any responsible Government would immediately investigate P&O’s abuses. Can the Minister explain why this Government have not begun an independent inquiry?

[Baroness Bloomfield of Hinton Waldrist (Con)]

We are taking a number of steps. We are engaged with the Insolvency Service regarding the steps P&O Ferries took in this whole restructuring and redundancy exercise. The £15 million received by P&O was part of the furlough scheme and therefore to the benefit of the employees rather than the company. I know that P&O will still be accountable for the deficit in the pension contribution to the Merchant Navy Ratings Pension Fund. The Government are working very hard in a fast-moving situation to get answers to all those questions and to take the appropriate action.