The Trades Union Congress has slated the government’s decision to approve DP World as one of the companies running the new Thames Estuary freeport.
DP World is the owner of P&O Ferries, which last year broke UK law by not consulting unions about the sudden mass sacking of almost 800 seafarers. The workers were replaced with foreign agency staff paid less than the minimum wage.
DP World has been given the green light to co-run the Thames Freeport in Essex, along with car manufacturer Ford and Forth Ports Limited.
Thames Freeport said it will see more than £4.6 billion in new public and private investment, and the creation of more than 21,000 new jobs and many more across supply chains.
The final government sign-off means that Thames Freeport will now receive up to £25 million seed funding from government.
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But TUC general secretary Paul Nowak said: “This is an appalling decision.
“DP World oversaw the brutal – and illegal – sacking of 800 workers at P&O Ferries.
“Ministers should have stripped the company of all its public contracts and severed commercial ties.
“But the government has chosen instead to reward DP World with another bumper deal.
“This is giving a green light to other rogue employers to act with impunity.”
Freeports are designed to create economic activity such as trade, investment and jobs near shipping ports or airports.
Goods imported into freeports are exempt from tariffs, and eight freeports have already been set up in England.
In a statement about the government approval, Ernst Schulze, UK chief executive of DP World, said: “We very much welcome the news that final government approval has been granted to Thames Freeport.
“As well as further cementing London Gateway’s Logistics Park as the UK’s premier port-centric logistics solution, Thames Freeport will also create local jobs and help ensure that the UK continues to be an attractive destination for inward investment.
Levelling Up minister Dehenna Davison commented: “Thames Freeport is up and running and will bring high quality jobs, investment and trading opportunities for businesses in the region.
“Taking full advantage of the freedoms of leaving the EU, businesses in freeports are offered generous tax incentives and a simplified customs procedure, unlocking much-needed investment and high-quality jobs.”
A spokesperson for Thames Freeport said: “The financial incentives available to occupiers of the Thames Freeport site are expected to generate more than £4.6 billion of new investment over the next 25 years, with the public sector component invested exclusively in local public infrastructure.
“It is important to understand that the financial incentives and tax reliefs on business rates and stamp duty being provided by central and local government are designed solely to attract occupiers and tenants to the freeport site. The three private sector partners that own the land will not directly benefit from these reliefs.”
“Our partners have invested over £2.5 billion in port and logistics infrastructure over the past 10 years, with over £3 billion of further investment planned including a £350 million new fourth berth at London Gateway which is currently under construction.
“This investment has benefitted the levelling up of the region, with more than 21,000 new direct and indirect jobs expected on the freeport estate alone. Thames Freeport will also unlock many better paid jobs to guarantee regional prosperity and social mobility for generations to come.”