P&O Ferries

Louise Haigh Excerpts

Monday 28th March 2022 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on the conduct of P&O Ferries’ chief executive and board and the action the Government will take to safeguard jobs.

[The Parliamentary Under-Secretary of State for Transport (Robert Courts)]

I know that the whole House has been left appalled and angered by the behaviour exhibited by P&O Ferries towards its workers over the last week. As a Government, we will not stand by and allow hard-working, dedicated British staff to be treated in such a manner.

This morning, my right hon. Friend the Transport Secretary wrote to the chief executive of P&O asking him to pause and reconsider and to offer his workers their jobs back on their previous terms, conditions and wages, should they want them. That is because we will return to the House to announce a package of measures that will ensure that the outcomes that P&O Ferries is seeking to achieve through this disastrous move to pay less than the minimum wage cannot be seen through. As a result, it will have no reason left not to reconsider its move.

As I said to the Transport Committee and the Business, Energy and Industrial Strategy Committee last week, as soon as the package of measures has been finalised, we intend to return to the House so that Members can rightly scrutinise it. In the meantime, we continue to review the contracts that P&O Ferries has with the Government, and the Insolvency Service continues to investigate the actions of Peter Hebblethwaite, who brazenly admitted to breaking the law before two Committees of this House last week.

I am clear that P&O Ferries cannot and will not be allowed to get away with its actions. I hope the whole House will now support our efforts to ensure just that.

[Louise Haigh]

I thank the Minister for that response. As he said, on Thursday the chief executive of P&O Ferries made a mockery of the rule of law in this country. As a result, seven of P&O’s eight ferries are now stuck in port, and on Saturday the European Causeway—the only passenger ship in Europe to be prevented from sailing over safety concerns—was seized.

P&O Ferries must face the most serious consequences for its misconduct. I know that the Minister and the Secretary of State feel the same way, and I appreciate the contact they have made with the Opposition and trade unions, but every available tool at the Government’s disposal must now be used to force P&O Ferries to reinstate workers on the previous terms and conditions.

Will the Minister provide some urgent clarity? First, the Prime Minister said very clearly on Wednesday:

“we are taking legal action…against the company concerned”.—[Official Report, 23 March 2022; Vol. 711, c. 326.]

So has the Secretary of State given his direction to prosecute? If not, why not?

Secondly, given that the chief executive has shown no respect for the law, will the Secretary of State seek his removal under the Company Directors Disqualification Act 1986, and the removal of all those who authorised this unlawful action?

Thirdly, the Secretary of State has said he will review contracts, but livelihoods are on the line now, so will he suspend all contracts and licences of P&O and DP World today? Why is DP World still listed as a member of the Government’s trade advisory group?

Finally, time is running out. The deadline set by P&O for this Thursday for workers to agree severance amounts to extortion and has no legal basis. What powers do the Government have to extend that unlawful deadline? As the Minister said, workers must be reinstated on the same terms as before. Many are paid above the minimum wage, so will he commit to working with the unions and all ferry companies to agree a binding framework that will prevent a race to the bottom to the lowest international standards?

I know the House agrees that we must send a clear message that rogue employers cannot get away with trampling over the laws of this country. It is time to throw the book at P&O and save this loyal workforce.

[Robert Courts]

The hon. Lady is quite right that P&O must face consequences for its actions. We are looking at every tool available to the Government and doing so as fast as is humanly possible. We are looking to bring forward a package of measures. I apologise that I cannot go into any more detail at the moment—some of these matters are complicated and we need to go through them—but we will speak to Members and to the unions as we put the package together.

The Secretary of State has made his views known very clearly, as did I when I came to the House when the announcement was made and when I appeared before the Transport Committee. The letter the Secretary of State has written is absolutely clear about the view we take of P&O’s actions, and we will act on that.

The hon. Lady mentioned several other matters. We continue to review any contracts that may exist and continue to take any action we can on things like trade advisory groups. I hope the hon. Lady will pardon me for not going into detail at the moment. We will come forward with a package of measures that we will take, as I said we would when I was before the Select Committee. We are putting that package together as I speak and will of course work with the unions and all others as we do so.