Head of Royal Mail says sell-off is 'good for our customers'

[TrueBlueTerrier]

http://www.thisislondon.co.uk/standard/ ... article.do

ROYAL MAIL chiefs defended part- privatisation of the postal service today as it emerged that Lord Mandelson will defy Labour MPs to press ahead with the plan.

Chief executive Adam Crozier said the proposal to give a private firm a minority stake is "good news for the company and for customers" and would increase efficiency and profitability. His words came despite anger among some Labour backbenchers over the plans outlined by Lord Mandelson yesterday, with MPs linked to postal unions threatening to oppose the move outright.

The Business Secretary came face to face with MPs last night in the Commons. But just 15 backbenchers out of the 350-strong Parliamentary Labour Party turned up to an "open" meeting, and of those around half were implacably against the Government's plans.

Sources claimed the meeting last night was "not acrimonious", pointing out that other MPs present agreed radical action was needed to help the Royal Mail, but had concerns about the part-privatisation plan. Former employment minister Ian McCartney was among those who said MPs had to "face the facts" about a drop in mail business triggered by the rise of the internet.

Ministers expect a "majority" of Labour MPs to support the plans following further talks.

Reports that the proposals will be delayed until after the next general election were dismissed by Government sources today. The Tories and Liberal Democrats will vote with ministers and only a small number of Labour rebels are expected.

Lord Mandelson stressed at the meeting that the process of consultation had only just started, but also made clear he wants to make progress early in the New Year.

Mr Crozier told Radio 4's Today programme that working with a private partner, such as Dutch-owned TNT, was the only way to help save the "universal" delivery service with a single flat fee for individuals and businesses.

A string of MPs with links to postal unions yesterday condemned the partial sell-off, with former Cabinet minister Peter Hain leading the charge of those warning it could lead to full privatisation.

Labour peer Lord Clarke of Hampstead, a former leader of the postal workers' union, was scathing about the decision last night. He told Lord Mandelson to "get on with running the business as it should be" instead of selling parts of it to the private sector.

Labour MP John McDonnell said: "This is privatisation, pure and simple. It flies in the face of the manifesto commitment."

[DirtyHarry]

Well, what's the betting Crozier's wallet will become even fatter, now his dreams are about to come true.