Lord Mandelson to face MPs' questions over economy and Royal

[TrueBlueTerrier]

Lord Mandelson to face MPs' questions over economy and Royal Mail privatisation

Lord Mandelson, the new Business Secretary, is due to face tough questions from MPs over the future of the Royal Mail and whether planned employment rights reforms will go ahead.

http://link.brightcove.com/services/lin ... 1868952800 <Video as well

By Graham Tibbetts
Last Updated: 12:30PM BST 21 Oct 2008


http://www.telegraph.co.uk/news/newstop ... ation.html

The Labour peer appears before the Business and Enterprise Select Committee to assess the impact of the economic downturn on business and outline his role.

The Business Secretary is expected to be asked about a newspaper interview in which he signalled support for the partial privatisation of Royal Mail, which drew condemnation from Labour colleagues and unions.

John McDonnell MP said: "This proposed privatisation of the Post Office by the newly anointed Business Secretary is madness. It would undermine an essential public service.

"In the current economic climate, throwing the Post Office to the wolves of the private sector will lead to further job losses and cuts in services on an unprecedented scale."

Billy Hayes, general secretary of the Communication Workers Union, said: "Peter Mandelson has only just come back into Government, but he should be aware that there is a clear commitment from the Labour Government to keep Royal Mail in the public sector, restated earlier this year at the national policy forum in Warwick.

"At a time of economic instability the last thing the British public wants to hear is that privatisation is the solution to Royal Mail's problems."

Lord Mandelson is also under fire following the decision by his deparment to re-examine the costs and benefits of new regulations that would extend flexible working.

Although business groups welcomed the move unions, opposition politicians and family campaigners attacked the announcement.

The Chartered Institute of Personnel and Development reaffirmed its support for the planned expansion of flexible working to parents of children under the age of 16 rather than six at present.

Chief executive Jackie Orme, said: "The existing right to request flexible working is a model example of light-touch regulation that has helped to change attitudes without causing difficulties for businesses."

TUC general secretary Brendan Barber said: "Postponing a simple right to request flexible working would not save a single job in the small business sector. If such a request harms the business, the owner can say no.

"This would be an astonishingly irrelevant response to the severe economic downturn that we face and, in addition, would run the risk of sending a message to working parents that the Government is not on their side."

A Business Department spokesman said: "The Government is absolutely focused on helping business, particularly small business, to cope with the current economic downturn.

"As well as looking at cashflow and access to finance, we are looking at the appropriateness of new regulations that are due to come into force - that includes employment regulations. We can confirm that no decisions to halt regulations have been made."

[baldrick]

Surely if he was concerned about small businesses he could just exempt them from family friendly legislation.

[DGP1]

Surely if he was concerned about small businesses he could just exempt them from family friendly legislation.

RM have exempted themselves from FF legislation, at least in my office