P&O Ferries should hand back the money paid by taxpayers for staff furlough during the coronavirus pandemic, the transport secretary has said.

On 17 March, the major ferry operator suspended all services and told nearly 800 crew that they were being made redundant and replaced by cheaper agency crew.

Appearing before the Transport Select Committee, Grant Shapps said: “There are three things that P&O will need to do to get out of this mess and I call upon them today publicly to get on and do it.

“First of all, it’s completely unsustainable to have the head of P&O, the boss Peter Hebblethwaite, who came to a Committee Room like this and openly and deliberately explained how he sought to break the law. He actually said that was his intention and that he would do it again.He will have to go.

“Secondly, in my view, though it’s a matter for P&O themselves, I think that they need to repay furlough money as well. It’s around £11m. I don’t think it’s right that having claimed that money they then sacked the workers in such a premeditated way, which they themselves admitted broke the law.

“Thirdly, they will have to pay the minimum wage. On 10 May at the Queen’s Speech, as promised, we will ensure that we are legislating in the Harbours Bill to make sure that a minimum wage is required for routes which generally plough the trade between here and France or here and Holland.

“They have no choice – they are going to have to pay the proper wage for the job.

“Until they do those three things they won’t find their way back into the affections of the travelling public or probably those who use them for freight.”

Mr Shapps said that he was working with opposite numbers in Paris and Dublin to establish “corridors” that do not allow ferry crew to be paid less than the national minimum wage.

“Civil and criminal action is already being taken by the Insolvency Service,” he said.

The P&O Ferries vessel Spirit of Britain is now sailing, carrying only freight, between Dover and Calais.

The transport secretary refused to be drawn on reports that the current year between MOTs for cars that are over three years old could be extended to two years.

“Whatever we do by way of MOTs would have to fit a very rigorous safety standard.

“I’m always looking to do things that assist with the cost of living position.

“There are many ways you could look at doing MOTs. You don’t have to move from one to two years.

“It’s always right to keep these things under review.”

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