REVOLT OVER ROYAL MAIL SELL-OFF

[TrueBlueTerrier]

http://www.express.co.uk/posts/view/760 ... l-sell-off



LABOUR was last night facing a backbench revolt over plans for a £3billion foreign takeover of the Royal Mail.

Business Secretary Lord Mandelson yesterday confirmed that the Government was ready to sell off around a third of the troubled postal network.

Dutch postal firm TNT immediately signalled interest in investing in the business. But Labour MPs were outraged by the move and savaged ministers in the Commons.

In an hour of heated exchanges, not a single Labour backbencher spoke in support of the Government’s plans. Former minister Peter Hain warned the move would “open the door to full-scale privatisation against the wishes of our party and our Government”.

Backbencher Kate Hoey asked ministers: “Will you tell us why on earth you have to go to a foreign country’s postal private operator to come in when you could as a Government be fully supportive of this very, very valued public service?”

Labour left-winger John McDonnell said the move “will be interpreted by virtually every postal worker as privatisation whatever you dress it up as”.

He added: “It conflicts with the commitment to a wholly publicly-owned service that we gave to the workforce.” And Gordon Prentice, another backbencher, said: “I’m not supporting any legislation which privatises it.”

Lord Mandelson claimed the network of local Post Offices will be preserved under the part-privatisation plan. But he admitted fresh investment was desperately needed to improve efficiency and tackle a £7billion black hole in the Royal Mail’s staff pension fund.

“I believe that Royal Mail and the postal market can thrive in the future, provided that decisive action is taken now. Without far-reaching change, the opportunities brought by technology will become overwhelming threats,” he told peers.

The Tories last night welcomed the plan, but raised concerns about the pensions fund deficit.

Shadow Business Secretary Alan Duncan said: “The plan to introduce a new commercial partner is a step in the right direction, but it must not distract attention from the real issue, which is the Government’s plan to raid Royal Mail’s pension fund in order to plug a black hole.”