Mandelson fails to quell Royal Mail revolt

[TrueBlueTerrier]

http://www.independent.co.uk/news/uk/po ... 66721.html" onclick="window.open(this.href);return false;

Backbench rebellion against privatisation plans grows

By Andrew Grice, Political Editor
Thursday, 15 January 2009

A backbench Labour revolt against the Government's plans to part-privatise Royal Mail is growing, despite efforts by Lord Mandelson to defuse it.

The Business Secretary sought to reassure anxious Labour MPs yesterday by expressing regret at the way the postal market was opened up to competition in 2006. "I am not an unqualified admirer of all aspects of the regulation and liberalisation of this market," he said, adding that "adjustments" could be made. But his olive branch appeared to cut little ice with Labour backbenchers, of whom 71 have signed a Commons motion opposing plans to sell a minority stake in Royal Mail, warning that it "would risk fracturing one of Britain's greatest public services".

As The Independent revealed last month, the number of Labour rebels is expected to rise to more than 100, leaving Gordon Brown facing his biggest revolt as Prime Minister. The critics who have gone public include former ministers Malcolm Wicks, Frank Dobson and Michael Meacher. They are thought to have the backing of John Prescott, the former deputy prime minister.

Geraldine Smith, MP for Morecambe and Lunesdale, who tabled the motion, said that in recent years Royal Mail had been exposed to "ever-increasing, unfair competition" by the watchdog Postcom. She said that several "high-profile" Labour MPs were now working behind the scenes to persuade ministers not to press ahead with the recommendations of an independent report by Richard Hooper last month.

John Grogan, the MP for Selby, another signatory of the motion, said that Royal Mail still had £600m from a £1.2bn Government-agreed loan to modernise the sorting offices. "It is surprising that two years later only half of this money has been spent. There is no need for private capital," he said. Lord Mandelson told the Commons Business Select Committee that the sale of a minority stake was not a prelude to full privatisation. He insisted that Royal Mail needed a new partner to bring in the "hundreds of millions of pounds" it needed in new investment as well as a "gale force of fresh air" into the organisation's management and culture.

"If we want the Royal Mail becoming a real serious player in that international market, then we have got to see it, in my view, teaming up with another postal operator," he said.

[Pat Ostman]

Good read, and finally, someone who mentions one of the real reasons RM has lost money.

[Radio]

If MPs stop Mandelson's treachery this time, I will resume paying my subscription to the Labour Party. Only these MPs can save us now, no government, not the CWU but the backbenchers and the Royal family can save us. Push your MP (if from the Labour Party) to become more visible in this revolt and make it successful. I will write a letter to John McDonell right away. He is old school labour activist, he will definitely support us. I would not mind paying double in subscription if these proposals are defeated and if it brings down the Unelected One :mfo (I would be in favour of a ten-fold increase in subscription by the CWU members towards the Labour Party funds) as his fall would restore a large part of the soul of this party that we once loved so much. Bliar and Gorgon's 'New' Labour is worst than the Conservative Party as with the Tories you know who you are dealing with and don't fear some back-stabbing bastard from the very party that you support :mfo How Royal Mail was systematically weakened would go down as one of the most interesting chapters in the history of modern-day machination.

[Night Tonic]

Mandelson will get this through. Rebels won't be enough as Tories will vote with the government.

[Radio]

Mandelson will get this through. Rebels won't be enough as Tories will vote with the government.

... which would split the Labour Party right in the middle and that in the election year I think Mandelson is on a bigger mission to destroy Labour and guarantee a long dark period of Conservative rule in Britain. Flogging off RM is one of the major parts of his game. The timing, the urgency, the persistence, they all show that he wants it NOW and now is the time when his party should be united. Labour is on a sure path to self-destruction. Can't imagine another long Tory era I would say :mfo

[TrueBlueTerrier]

Mandelson will get this through. Rebels won't be enough as Tories will vote with the government.

... which would split the Labour Party right in the middle and that in the election year I think Mandelson is on a bigger mission to destroy Labour and guarantee a long dark period of Conservative rule in Britain. Flogging off RM is one of the major parts of his game. The timing, the urgency, the persistence, they all show that he wants it NOW and now is the time when his party should be united. Labour is on a sure path to self-destruction. Can't imagine another long Tory era I would say :mfo

Strange aint it a former young communist league member nearly guaranteeing that the ConUservatives are going to win the next election. Quite a "Road to Damascus" conversion.

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