Harriet Harman tried to delay Royal Mail privatisation bill

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Harriet Harman, the deputy Labour leader, attempted to delay the publication of legislation to part-privatise the Royal Mail.


By Robert Winnett
Last Updated: 8:20AM GMT 25 Feb 2009

The Prime Minister over-ruled the proposal but there are growing signs of high-level splits within Government over the issue.

More than 140 Labour MPs have signed a Parliamentary motion against the controversial measure which would see more than a third of the Royal Mail sold to a private firm.

Nick Brown, the chief whip charged with winning over the rebels, also reportedly told a meeting of his local postal workers' union that he was privately opposed.

Gordon Brown is now likely to have to rely on support from the Conservatives for the legislation to pass through Parliament. However, Downing Street may have to offer concessions if faced with Government resignations.

Margaret Beckett, the Housing Minister, is also said to harbour concerns over the plans. Alan Johnson, the Health Secretary, has previously spoken out against private intervention in the Royal Mail.

Miss Harman, the deputy Labour leader, had argued that more time was needed before Lord Mandelson, the Business Secretary, published the legislation. She wanted more concessions.

However, she was overruled by Gordon Brown and the Business Secretary. They both concluded that it was right to push ahead with the planned release of the Bill, which would mean a stake in Royal Mail being sold to a foreign company. They argue it is essential to improve the Royal Mail's efficiency and to raise funds to pay pensions to postal workers.

Miss Harman's intervention will create further tension just days after she was accused of positioning herself to challenge for the Labour leadership when Mr Brown steps down.

Yesterday, yet more pressure was put on Labour when the postal workers' union threatened to withdraw its £1 million annual donation to the party over its Royal Mail plans.

The union said its relationship with Labour was "at breaking point".

The protest could result in the Communication Workers' Union halting its funding of the party, which would severely hamper Labour a year away from a general election.

Billy Hayes, the union's general secretary, said: "The Government's actions place a massive strain on the union's relationship with the Labour Party. [It] will be strained towards breaking point."

Since 2001, the union has donated nearly £5 million to the party. Since the last election, eight ministers have received CWU donations. It is understood that the union is ready to ballot members on ending its formal links with Labour.

Lord Mandelson remains determined to face down the rebels. He gave warning that the universal six-day service would be under threat if the issue of the organisation's pension fund deficit was not dealt with and the recommendations of the Hooper review into Royal Mail fully implemented.

The review called for a new strategic partner to buy a stake in Royal Mail, for the Government to take on pensions commitments and for modernisation of the service. The Dutch postal company TNT is favourite to secure a stake. Other foreign firms also expressed interest.

Lord Mandelson said: "The Royal Mail's workforce will have a secure pension if the other changes are made. That is the deal on offer and I hope the CWU will think carefully before rejecting it."

[Big Daz]

It dosent make a blind bit of difference if the cwu accept or reject the plans, its up the MP's and their lordships they will decide any nobody else!!!!!!!