Royal Mail plans 'dead in the water'

[Broxi51]

http://www.telegraph.co.uk/news/4622310 ... water.html

The planned partial privatisation of Royal Mail is "dead in the water" after Gordon Brown was warned there was little or no chance of getting the controversial move through the House of Commons.

By Patrick Hennessy, Political Editor
Last Updated: 5:25PM GMT 15 Feb 2009

The sale of a minority stake in the Royal Mail was enthusiastically endorsed by Lord Mandelson Photo: PA
Scores of Labour MPs have pledged to vote against the sell-off in a humiliating rebuff to Lord Mandelson, the Business Secretary.

The Sunday Telegraph has learned that the Prime Minister was warned by Nick Brown, the Chief Whip, that he "did not have the numbers" to get the measure through.

The search is now on for a face-saving exit strategy for Lord Mandelson, who is said to have badly misjudged the mood on Labour's backbenches.

A possible deal would see the Government write a guarantee into legislation that Royal Mail would never be totally privatised - but ministers fear even that would not be enough to satisfy the rebels.

A leading Government source said: "There needs to be a major think. The sell-off as it currently stands is dead in the water and what we are trying to do now is to spare Mandelson's blushes."

The sale of a minority stake in the Royal Mail was first proposed last year by a review carried out by Richard Hooper, a former civil servant, and was enthusiastically endorsed by Lord Mandelson.

However, the Business Secretary has since held a series of bruising meetings with Labour backbenchers, more than 100 of whom have signed a Commons motion attacking the move, which they see as the first step towards a full sell-off.

The Communication Workers Union - the sixth largest union in the country - has also warned it will sever links with Labour if the plans go ahead, threatening the party with a damaging and costly split in the run up to the general election.

Lord Mandelson was said by some MPs to have wrongly thought he could achieve the part-privatisation, a long-cherished dream dating from his time as Trade Secretary in the late 1990s, on his return to the Cabinet.

A leading rebel MP said: "Peter miscalculated and got the mood wrong. Ten years ago it was much easier to get this sort of radical move through. The parliamentary Labour party was much more supine then than it is now, and of course our majority was much bigger."

Labour has a Commons majority of 67 - meaning that just 34 of the party's MPs could defeat a government measure as long as all opposition MPs also voted against it.

The Prime Minister backed Lord Mandelson's plan, but is not thought to want to risk a damaging Commons defeat after being informed by Nick Brown of the full scale of the revolt.

To be sure of winning he would need to rely on Conservative votes, something he is not thought to be willing to do. The Tories have said they support part-privatisation in general terms, but have not committed themselves to backing the Government in a vote.

Nick Brown and his team of government whips were alerted to the strength of opposition in Labour's ranks during their recent - successful - move to win a vote on plans for a third runway at Heathrow Airport.

Pat McFadden, the postal affairs minister, said: "We know people feel very strongly and our door is always open to MPs to talk about this. But the situation is very serious and that is why we have to act."

[BELIAL]

Politicians eh Mandy set up for a fall by the Tories Why support Mandy when you can give him a good kicking and then in a years time push the self same bill through with your own majority
Mandy bushwacked poor old NT might have to get a wee bit more savvy

[wardroom]

Well Mandy looks like his thoughts about brown have come back to haunt him.
Brown will do anything to save his reputation but as we all know him by now.
No sympathy for Mandy as he should have seen this comming after these comments. :mfo

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[stokes11eg]

Well Mandy looks like his thoughts about brown have come back to haunt him.
Brown will do anything to save his reputation but as we all know him by now.
No sympathy for Mandy as he should have seen this comming after these comments. :mfo

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Will be now watching the news with bated breath--is the impossible about to happen, and no sell off take place. and
please do not spare mandys blushes.

[DGP1]

Well Mandy looks like his thoughts about brown have come back to haunt him.
Brown will do anything to save his reputation but as we all know him by now.
No sympathy for Mandy as he should have seen this comming after these comments. :mfo

http://www.telegraph.co.uk/news/newstop ... uotes.html" onclick="window.open(this.href);return false;

Will be now watching the news with bated breath--is the impossible about to happen, and no sell off take place. and
please do not spare mandys blushes.

The best we can hope for is the sale is put off until the Tories win the net election.

[andy2007]

Don't be such a pessamist! You seem to be underestimating the effect of the Credit Crunch. The Public are only really beginning to understand, just how bad the effects will be. I think it will be at least a decade, before the Public will be willing to risk selling anything off. Even the newly privatised Banks. In case it happens again.

[stokes11eg]

Don't be such a pessamist! You seem to be underestimating the effect of the Credit Crunch. The Public are only really beginning to understand, just how bad the effects will be. I think it will be at least a decade, before the Public will be willing to risk selling anything off. Even the newly privatised Banks. In case it happens again.

Yes- but it is not tjr public selling it off it's Mandy--if it went to a reforendum-it would be a resounding no--most people now realise privatisation is just another word for ruination. I expect privatly, that even those that jumped on the bandwagon, and invested in mega shares-are now regretting it,just have they have in the past when we had the so called
free market economies.However, I would still not right off Labour winning the next election, still, very slightly, the best of a bad bunch.And no matter what people think of Gordon brown he has done some good for whole sectors of the Public. most pensioners are far better off now, all children have nest eggs in the bank. and Those that want to study and
stay on at school .are given finacial backing.

[DGP1]

Don't be such a pessamist! You seem to be underestimating the effect of the Credit Crunch. The Public are only really beginning to understand, just how bad the effects will be. I think it will be at least a decade, before the Public will be willing to risk selling anything off. Even the newly privatised Banks. In case it happens again.

I'm a natural optimist but experience has taught me to be pessimistic and you have to remember that the £22 billion in our pension fund is a very tempting target or any government that's so short of money.

[treadhead]

Best bit of news I've heard all day lets hope it comes to pass, if this is as far as it goes (till the next time) at least we all know who our friends are.