The sacking of hundreds of P&O Ferries workers is likely to damage plans to secure tens of millions of pounds of investment for a green freeport in the south of Scotland.
Dumfries & Galloway council had been preparing a bid based around the ferry routes at the Port of Cairnryan. P&O Ferries and its parent, DP World, a Dubai logistics group, were both named as key partners in the team.
The RMT union said yesterday that removing the possibility of support through freeports from DP World was one way the UK government could put pressure on the business.
Elaine Murray, the council leader, and Rob Davidson, the depute leader, said: “We are sickened at the actions of P&O Ferries. Our immediate thoughts are with the affected employees.
“Dumfries & Galloway council is committed to fair working practices and the action of P&O Ferries has no place in our region. We would strongly urge P&O Ferries to reconsider its course of action. If the company continues down this route then Dumfries & Galloway council will reconsider P&O Ferries’ continuing participation in a potential partnership bid for a green freeport at Cairnryan.
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“We are bringing an emergency motion on this to full council to decide the way forward.”
Suzanne Mitchell, from Dumfries and Galloway Chamber of Commerce, suggested that companies across the region had been shocked “Whatever the ins and outs of it, this seems to have been very poorly handled,” she said. “Businesses want to hear a justification for what happened.”
Holyrood and Westminster had previously been at odds around the creation of freeports in Scotland.
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The SNP administration was keen to create its own greenports which it said would have more stringent rules on fair working practices and the environment. A compromise was agreed last month when the two governments agreed on the creation of two green freeports in Scotland offering tax, National Insurance and customs reliefs to those operating inside the areas.
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Applications are expected to open this month and the winning bids will be announced over the summer.
Protests against P&O’s actions were held around the UK yesterday, though most workers who had stayed on their vessels on Thursday have now left.
Dean Lockhart, the convenor of Holyrood’s net-zero, energy and transport committee, has written to Peter Hebblethwaite, chief executive of P&O, asking for an update. He asked about the implications for Scottish staff and the Cairnryan to Larne route.
P&O has blamed its action on a £100 million loss as travel struggles to recover after the pandemic. It said it was “not a viable business” without the changes.
The Nautilus International trade union has asked the Maritime and Coastguard Agency to ensure that new crews have the right credentials and are able to operate the ships safely
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Disruption to travel is expected into next week as the Stena Line service between Cairnryan and Belfast copes with a huge rise in demand.
Advice Direct Scotland said that travellers may be entitled to compensation, a replacement journey or a refund. Colin Mathieson, from the consumer rights organisation, said: “We would advise them to raise an initial complaint with the operator and follow the procedure fully.”
Accounts for the Port of Cairnryan Limited, which is owned by P&O Ferries, showed a £341,000 pre-tax loss on turnover of £2 million in 2020. The Cairnryan to Larne route received £772,000 in subsidies from the UK government under its Covid-19 public service obligation freight scheme.
