It had been suggested P&O owners DP World might shelve the plan after Transport Secretary Louise Haigh described the ferry company as a “rogue operator”.
But Jonathan Reynolds told the BBC DP World’s plan to expand its London Gateway port “will go ahead”.
The row had threatened to overshadow a major government summit starting on Monday, at which ministers want to showcase investment into the UK.
But DP World will now attend the International Investment Summit, where the government hopes to attract billions of pounds of investment.
The row started after an interview on Wednesday in which Haigh said she had been boycotting P&O Ferries since its decision in 2022 to sack 800 staff and replace them with cheaper agency workers, adding she would “encourage consumers to do the same”.
The company has defended the decision as “tough but necessary,” arguing it was required to safeguard the future of the firm.
Speaking to Sunday with Laura Kuenssberg, Reynolds said his cabinet colleague had not been expressing “the government’s position”.
He added that Labour maintained the sackings were “wrong”, but highlighted that it had now announced plans to tighten legal protections for seafarers.
“It’s now the case that, as we’re in government, we can stop what happened with P&O Ferries happening again,” he added.
Speaking on Sky News, Reynolds said the government had had to “have a conversation” with DP World, following reports the investment would be shelved.
Reynold’s comments came after Prime Minister Sir Keir Starmer also told the BBC’s Newscast on Friday that Haigh’s views were not those of the government’s.
On Saturday a government source said the prime minister had confidence in Haigh. Her department says she will be attending the investment summit on Monday.
Haigh’s comments had coincided with the Department for Transport announcing new legislation aimed at protecting seafarers’ jobs from so-called “fire and rehire” practices of “rogue employers”.
Former Tory donor John Caudwell, who announced he would be voting Labour ahead of July’s general election, said it was “politically stupid” to criticise companies when ministers were seeking more investment into the UK.
The Phones 4U founder told Laura Kuenssberg that ministers should speak to firms privately about their working practices, “rather than just blast them on the TV”.
Haigh’s remarks have also attracted criticism from the Conservatives, with shadow business secretary Kevin Hollinrake arguing Labour “don’t understand business”.
However, Liam Byrne, the Labour MP who chairs the Commons business committee, has defended her comments.
He said Haigh had been “absolutely right to say the behaviour of P&O, owned by DP World, in the past has been “completely unacceptable”.
DP World has said the expansion of the London Gateway port would bring Thurrock in Essex hundreds of jobs.
The United Arab Emirates-based company also owns the container port in Southampton.
A spokesperson for the company told the BBC it had been “given the clarity we need” after “constructive and positive discussions with the government”.
“We look forward to participating in Monday’s International Investment Summit,” they added.
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Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
Tanzania: Exim to Raise Fund for Mental Health Facilities Upgrades
EXIM Bank to raise 300m/- over the next three years for financing essential services and infrastructure upgrades in mental health facilities.
The bank’s Head of Marketing and Communications Stanley Kafu unveiled this when introducing Exim Bima Festival 2024 as a platform for bringing together individuals, organisations and various sectors for raising the funds.
“Exim’s initiative aligns with the government’s broader goals to ensure that every citizen has access to quality healthcare, including mental health services,” he said.
The initiative, which is one of the events for celebrating the bank’s 27th anniversary is scheduled for Wednesday this week in Dar es Salaam.
Mr Kafu highlights that this year’s festival is not only about raising awareness of the importance of insurance in the society but also focuses on enhancing access to mental health services and improving the overall well-being of the nation.
Statistics from the Ministry of Health shows a staggering 82 per cent increase in mental health cases over the past decade.
Mental cases have risen from 386,358 in 2012 to 2,102,726 in 2021, making the need for mental health services more urgent than ever.
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Unfortunately, the country’s ability to address this growing challenge is hindered by a shortage of mental health professionals, infrastructure, medical equipment and essential medication.
For example, out of the 28 regions in the country, only five have facilities that provide adequate mental health services.
The most affected group is the youth aged 15 to 39, who represent the nation’s workforce, underscoring the need for intensified efforts to safeguard this generation for Tanzania’s future well-being and development.
Mr Kafu said by improving mental health services, Exim aims to contribute to the creation of a network of communities that can access care quickly and affordably.
Exim Insurance Department Manager Tike Mwakyoma said they are appreciating the support from partners in the insurance industry, who have stood by them since the last festival.
“Let’s continue this unity for the development of all Tanzanians and our nation as a whole,” the manager said.
Source: allafrica.com
Ali Hassan Mwinyi, Former President of Tanzania, Dies at 98
Ali Hassan Mwinyi, a schoolteacher turned politician who led Tanzania as its second post-independence president and helped dismantle the doctrinaire socialism of his predecessor, Julius K. Nyerere, died on Thursday in Dar es Salaam, the country’s former capital. He was 98.Continue Reading
