RM part sell-off to go ahead despite Labour rebellion

[Geezer]

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Plans to sell-off part of the Royal Mail will be put to Parliament within weeks despite the threat of a large-scale rebellion by Labour backbenchers, MPs have been told by Lord Mandelson,the Business Secretary.


By Rosa Prince, Political Correspondent
Last Updated: 6:15PM GMT 14 Jan 2009
Royal Mail part sell-off to go ahead despite Labour rebellion
Plans to sell-off part of the Royal Mail will be put to Parliament within weeks Photo: PA

Lord Mandelson sought to mollify Labour MPs concerned about the proposal to privatise a minority stake in the business, saying that the Government remained committed to the universal postal delivery service.

But he warned potential rebels, who now number more than 70, that given the strain on the public purse caused by the recession, taxpayers could not be expected to bear the added strain of stumping up the "hundreds of millions" needed to modernise Royal Mail.

Instead, an overseas firm was needed to bring a "gale force of fresh air" and cultural change including a shake-up in industrial relations following a spate of strikes in recent years.

Lord Mandelson told MPs on the Commons Business and Enterprise Committee: "If we want the Royal Mail becoming a real serious player in [the] international market, then we have got to see it, in my view, teaming up with another postal operator.

"Change and modernisation must come about. We need help in bringing about that change. The taxpayer cannot be expected to foot the bill for that modernisation."

Lindsay Hoyle, a member of the committee and one of a number of Labour MPs to have signed a Commons Parliamentary motion opposing the partial sell-off, told Lord Mandelson that Royal Mail customers would not be "impressed" by the sell-off.

But the Business Secretary insisted that the plans would not lead to the full privatisation of the Royal Mail, adding: "I think that is a bad idea. I think that would undermine the universal service. As far as I am concerned, as far as the Government is concerned, that is a non-starter.

"This [the partial sell-off] will not make a difference to the fact that the Royal Mail is part of the public sector, will remain part of the public sector, and in my view must remain so if we are going to retain the universal service delivery."

John Prescott, the former deputy prime minister, is rumoured to be among those opposed to the plans, which could lead to the biggest rebellion by Labour MPs since Gordon Brown came to power.

Jim McGovern, a ministerial aide in Lord Mandelson's Business Department, has already resigned in protest at the prospect of a foreign firm taking a stake in the Royal Mail, as recommended in the findings of a Government-commissioned review of the service by Richard Hooper, the former deputy chair of Ofcom.

The Government has also accepted the other main recommendations of the Hooper review, that the Royal Mail's staff pension liabilities be removed from the rest of the business and taken on by the taxpayer, in order to make it more attractive to potential buyers, and that regulation be toughened up.

Lord Mandelson has invited potential Labour rebels for private talks about the scheme over the next few days.

If the rebels carry out their threat to oppose the measure when it is put before the House, then the Government could be forced to rely on Tory votes to get the part-privatisation through the Commons.

[POSTMAN]

The taxpayer cannot be expected to foot the bill for that modernisation.

And how would that happen you lieing w****r as we are not allowed to have any money from the government unless it is a commercial loan!!

[Stormproof]

The taxpayer cannot be expected to foot the bill for that modernisation.

And how would that happen you lieing w****r as we are not allowed to have any money from the government unless it is a commercial loan!!

Don't know why 'us' the taxpayer can't foot the bill for modernisation as we seem to be footing the bill for everything else lately

[Big Daz]

The taxpayer cannot be expected to foot the bill for that modernisation.

And how would that happen you lieing w****r as we are not allowed to have any money from the government unless it is a commercial loan!!

[pocky20]

i have been working for royalmail for a year now and i hope that ant change will be good but some of the workers where in work in belfast are saying its a bad thing to sell of part if any now i dont know much about this but hope that loads of rm workers dont lose there jobs

[NWpostie]

The taxpayer cannot be expected to foot the bill for that modernisation.

And how would that happen you lieing w****r as we are not allowed to have any money from the government unless it is a commercial loan!!

Don't know why 'us' the taxpayer can't foot the bill for modernisation as we seem to be footing the bill for everything else lately

We were the cash cow for previous governments and actually subsidised taxes for many years, I think its payback time.

[DGP1]

i have been working for royalmail for a year now and i hope that ant change will be good but some of the workers where in work in belfast are saying its a bad thing to sell of part if any now i dont know much about this but hope that loads of rm workers dont lose there jobs

Things will only get worse of they get their way, can you see mr mc chicken (name changed for RMC rules) doing anything other than bullying his staff if he thinks his job is on the line, the last time I talked to him he told me that it was either him or all of us so I advise you to stick along with the union in Belfast for this (and stop using your cars, before anyone goes into one, I had to have a meeting at Tomb Street at 9am and I saw a lot of posties filling their cars with all their mail).