TV Dragons 'Would Reject' Royal Mail Sell-Off

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Plans to part-privatise the Royal Mail are so poor, a cross-party committee of MPs has said, they would even be rejected on TV's Dragon Den.

The Commons Business and Enterprise Committee lambasted proposals they said lacked transparency.

MPs said the Government had not made its case to sell off around a third of the postal group to a private firm.

Business Secretary Lord Mandelson faced questions from the committee about why he had cited a 30% figure.

Committee chairman Peter Luff said MPs agreed the Royal Mail's multibillion-pound pensions deficit had to be tackled.

But it "did not follow" that a part-sale was necessary, he warned.

"Parliament is being asked to swap an existing system where it approves every share sale in Royal Mail, for one where it gives up these powers in return for a guarantee that the public's shareholding will always be over 50%," Mr Luff said.

"Our report questions whether this is a good bargain."

He added: "We are being asked to give away a lot without any assurances."

The Bill is not expected to be discussed by the Commons until June.

The Communication Workers Union welcomed the report, but Lord Mandelson said the committee "lacked vision".

"We always take Select Committee reports seriously," he said.

"But it's a pity the committee did not take the opportunity to show a sense of vision of the opportunities and future for Royal Mail but has instead taken a lowest common denominator approach.

"This of course bridges the differing positions in the committee but does nothing to secure a viable future for Royal Mail."