Grant Shapps tells regulator to disqualify ‘unfit to lead’ P&O Ferries boss

Transport secretary Grant Shapps has urged a government regulator to disqualify P&O Ferries chief executive Peter Hebblethwaite on the basis he is “unfit to lead a British company”.

The cabinet minister said he had written to the Insolvency Service “conveying my firm belief” that Mr Hebblethwaite should longer be in charge of the under-fire ferry operator.

“I have asked them to consider his disqualification,” said Mr Shapps told the Commons on Wednesday as he set out his nine-point plan to crack down on “sharp” practices after P&O sacked 800 workers without warning.

Mr Shapps said he had asked British ports to immediately refuse access to ferry services paying below the existing minimum wage – saying the government would consult on legislative changes to make it a legal requirement.

“I want to see British ports refusing access to ferry companies who don’t pay a fair wage, as soon as practical,” Mr Shapps told parliament.

P&O’s decision to layoff hundreds of workers and replace them with cheaper agency staff, paid at rates below the minimum wage, has provoked widespread anger among MPs and trade unions.

Mr Shapps announced several measure in response to the P&O decision – including efforts to seek international “minimum wage corridors” with allies such as France, and extra resources for the HMRC to enforce the minimum wage.

He said the government would bring in a new “statutory code of practice” to discourage firms from “hire and refire” tactics and boost compensation – but stopped short of the complete ban called for by Labour.

The transport secretary also vowed to “take action” on the loophole which saw P&O Ferries fail to give notice to ministers on mass redundancies because of an exemption on ships registered overseas.

Mr Shapps said the government would reform tonnage tax so more maritime businesses would have red tape removed and be “set up in the UK” – thus bringing bring more ships under UK control.

Boris Johnson had vowed last week that the government would “take them to court” – saying that under section 194 of the Trade Union and Labour Relations (Consolidation) Act 1992 it appeared that P&O had broken the law.

The PM promised in the Commons that P&O Ferries “aren’t going to get away with it”, while Mr Shapps previously claimed government legislation could “undo” the sackings.

Yet Mr Shapps did not make any pledge to take the company to court, and the Department for Transport has privately acknowledged that new government measures cannot be applied retrospectively.

The transport secretary said on Wednesday that he hoped the package of measures will “force” P&O Ferries to “fundamentally rethink their decision” – but he did not claim that the measures would reverse the operator’s decision to sack 800 staff.

Labour’s shadow transport secretary Louise Haigh said the moves to “insist” on minimum wage payment “cannot come a moment too soon”.

But Ms Haigh also noted that “no prosecution” has been taken by the government – despite Mr Johnson’s announcement last week. “The government’s reluctance to use every tool at its disposal … is bewildering,” she said.

Mick Lynch, general secretary of the Rail, Maritime and Transport (RMT) union, said the plan amounted to “too little, too late” – accusing the government of “lack of courage”.

The union chief said: “Despite all the bluster, Grant Shapps has failed to grasp the opportunity to adequately stand up to the banditry behaviour of P&O.”

Mr Lynch added: “The prime minister repeatedly said to parliament that the government would be taking legal action save British seafarers’ jobs, but he has failed to keep his word … we are calling for urgent action for speedier, more radical reforms to save the UK seafarer from oblivion.”

TUC general secretary Frances O’Grady added: “This plan has gaping holes. It won’t deliver a fair outcome for the 800 sacked workers, and it won’t stop another P&O-style scandal.”

Labour also express dismay that the government had refused the chance to rip up contracts with Dubai-based P&O Ferries’ owner DP World.

“They will keep every single taxpayer-funded contract. So even with these very welcome steps today, the government still risks giving the green light to P&O and other exploitative employers,” said Ms Haigh.

Mr Shapps vowed: “Where new laws are needed, we will create them. Where legal loopholes are cynically exploited, we will close them. And where employment rights are too weak, we will strengthen them.”

Pleading with the company to offer a voluntary U-turn, Mr Shapps added: “My message to P&O is this – the game is up. Rehire those who want to return and pay all of your workers a decent wage.”

Mr Hebblethwaite admitted to MPs last week that the firm flouted to law by choosing not to consult over the mass sacking of 800 workers on the spot, but has vowed to stick by the decision.

The ferry boss said there was “absolutely no doubt” the company was required to consult with unions before taking action. “We chose not to consult and we are – and will – compensate everybody in full for that.”