A SPAT between UK government ministers and Dubai-based DP World is reported to have put a billion pound investment into Thurrock's London Gateway container port at risk.

At the heart of the row is the move, in 2022 by DP World-owned P&O Ferries, to axe 800 staff suddenly, prompting a backlash from politicians and unions who criticised plans to hire cheaper agency workers.

In the wake of that, as the new Labour government shapes its employment plans, earlier this week Deputy Prime Minister Angela Rayner and transport minister Louise Haigh announced new protections for seafarers, and ended what they said was a loophole used by P&O Ferries.

P&O's ferries run out of Tilbury2's roll-on, roll-off terminal.

Ms Rayner said the government was on a mission "so no employer can abuse the system", while her colleague said the mass sackings were a "national scandal".

In a TV news interview Ms Haigh called P&O Ferries a "rogue operator" and said she had been boycotting them for years.

That appears to have prompted a 'tit-for-tat' response by DP World, which was due to share a platform with government ministers on Monday (14 October) intended to showcase Britain's appeal to investors. The Investment Summit will be attended by prime minister Sir Keir Starmer and Chancellor Rachel Reeves and one of its showcase subjects was DP World's planned future investment in Thurrock.

Now it is reported DP World's chairman, Sultan Ahmed bin Sulayem, has pulled out of his planned attendance at the summit and the company is said to be reviewing its UK investment plans. DP World declined to comment on the reports.

Sir Keir has also declined to comment, and pointed to a raft of other investments announced by the government in the run-up to the summit.

And the government appears to be trying to build bridges with P&O Ferries, which runs services from London Gateways' neighbouring port, Tilbury2, which is operated by Forth Ports.

A spokesperson for the government said it welcomed "P&O Ferries' commitment to comply with our new seafarers' legislation."

And it added: "We continue to work closely with DP World."

James McMurdock, the Reform MP for South Basildon and East Thurrock which includes London Gateway, was quick today (Friday, 11 October), to criticise the government.

He said: "By focusing on political point-scoring, Labour has undermined what should have been a major opportunity for Thurrock and the rest of the UK. Thurrock's economy, in particular, stood to benefit significantly from this investment, which would have created jobs and enhanced our local infrastructure.

"The Government should be working with businesses to ensure fair practices while also creating a stable and investable environment for international companies. Labour, by contrast, has failed to strike that balance, and Thurrock now may have to pay the price for their lack of coordination, tact, and economic foresight.

"We need leadership that can engage constructively with businesses, protect workers' rights, and ensure that critical investment is not put at risk by virtue-signalling. Thurrock's economy deserves better than what Labour is offering."

The opposition Conservative Party said the dispute showed that Labour ministers did not understand business.

The Tories' business spokesperson, Kevin Hollinrake, said: "On the eve of this much-vaunted inward investment event, this is a body blow for the government." 

News of the difference between DP World and the government came on the day Thurrock Council published an upbeat message about the Thames Freeport, in which DP World is a major partner player.

The council published details of how work is progressing to establish Freeport, including £1.2m skills funding to help make sure residents can develop the skills they need to take advantage of opportunities it will create.

Thurrock Council's leader John Kent has been reflecting on the opportunities brought by Thames Freeport.

The council says funding will help provide training to give local people the skills they need to take advantage of the new career opportunities Freeport will offer.

That includes funding which will mean Tilbury Library can increase its opening hours and offer computer training and work readiness programmes as part of the 'We are Tilbury' initiative, which will work with the local community to identify barriers to work and training and support new projects including working with schools to provide computers for pupils.

Additionally funding will be made available to establish university bursaries in local secondary schools, help the local voluntary sector and create new university courses in emerging technologies and industries.

Following a report brought to Cabinet this week updating on progress with the Freeport, Cllr John Kent, Leader of Thurrock Council, said: "Thames Freeport is set to create thousands of local jobs, attract £4.6 billion in investment and contribute £5.1 billion to the UK economy a year.

"It will create fantastic opportunities of careers in cutting edge industries and it is great to see that schemes that will help make sure local people can take full advantage of those opportunities are already getting underway.

"It is early days for the Freeport but we are working with them to make sure that as it develops it helps create opportunities for Thurrock's residents."