Royal Mail plans to be unveiled

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Royal Mail plans to be unveiled


Controversial government proposals to sell off part of the Royal Mail are to be introduced in Parliament on Thursday.
Ministers want to sell a stake of about 30% to the private sector to help pay for the modernisation of the service.
The plan faces opposition from a large number of Labour MPs, with 139 signing a motion opposing a sell-off, and from unions who plan a protest on Tuesday.
But the Conservatives and the Lib Dems have backed the move in principle.
In December, Business Secretary Lord Mandelson endorsed the recommendations of an independent report which called for a minority stake in the business to be sold off.
He said Royal Mail could not survive in its current form, due to severe financial constraints and falling demand for sending letters, and needed fresh investment to prosper.
'Unpopular'
He denies the plan amounts to a sell-off of the business, saying it will be a "partnership" which maintains Labour's commitment at the last election to keep Royal Mail in public ownership.
But unions will stage a mass protest on Tuesday against the plans, which they say are "deeply unpopular".
"We urge the government to take responsible action and respond to the justified concerns of UK citizens who do not want to see this valuable public asset carved up," said Billy Hayes, general secretary of the CWU union.
Unions point to the fact that Royal Mail made a profit of £255m in the last nine months of 2008 and to the fact that it is healthy and can thrive in its current form.
The protest will come on the same day as Royal Mail bosses are grilled by MPs on their plans for the company.
The sell-off plans could potentially result in the largest backbench rebellion of Gordon Brown's premiership.
Unless Labour rebels are persuaded to back the measure, the government may have to rely on opposition MPs' support to get the measures through.

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