The owner of P&O Ferries has “turned a corner” since 800 staff were sacked without notice and its £1bn investment is going ahead, a minister has told Sky News.

Dubai-based company DP World, which owns P&O, had considered pulling its announcement of a £1bn investment in its London Gateway container port after strong criticism of it by members of Sir Keir Starmer’s cabinet.

Government minister Peter Kyle confirmed to Sky News the investment is going ahead and said, by engaging with DP World, Labour got the company to sign up to its new workers’ rights laws last week.

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Last week, Transport Secretary Louise Haigh described P&O Ferries, which suddenly sacked 800 seafarers in March 2022 and replaced them with cheap foreign agency workers, as a “rogue operator” and called for a consumer boycott.

Sir Keir dismissed her comments in a bid to save the large investment, saying the government did not share her views, while Downing Street and Foreign Office officials are understood to have been trying to repair relations.

They were successful and DP World’s chairman, Sultan Ahmed bin Sulayem, confirmed he would be attending the investment summit where the announcement will be made.

Mr Kyle told Sky News’ Breakfast with Kay Burley show: “I think the country was appalled too [when P&O sacked 800 workers], but we’ve all turned a corner since that time.

“Just last week, we introduced workers’ rights legislation, which includes maritime activity too and P&O, and its parent company, DP World, signed up to it.

“That means we’re looking to the future. DP World are here today.

“That £1bn worth of investment is going forward. And I’m really pleased about that.”

He defended the government calling P&O Ferries a “rogue company” just a month ago in a press release, saying they have since signed up to the workers’ rights legislation.

“All you have to do is engage with these companies and take them on the journey,” he said in a dig at the former Tory government.

“Show that we are a brilliant place to invest, but we do expect high standards.”

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Several Labour MPs were highly critical of P&O Ferries boss Peter Hebblethwaite after he sacked his workers and replaced them with agency staff, as well as his decision to accept a £183,000 bonus to his £325,000 salary while some crew earned less than £5 an hour.

During an appearance before MPs earlier this year, Labour MP Liam Byrne asked if he was a “modern-day pirate” who was “robbing staff blind”.

Darren Jones, now chief secretary to the Treasury, asked Mr Hebblethwaite in the week after the redundancies if he was “in this mess because you don’t know what you’re doing, or are you just a shameless criminal?”.

Mr Hebblethwaite apologised to the staff he made redundant, but admitted he did not consult unions before he did so – a legal requirement – because “no union could accept our proposals” and the company had “otherwise no future”.