MP quits over Royal Mail plan

[TrueBlueTerrier]

http://www.walesonline.co.uk/news/wales ... -22493905/

A ministerial aide quit today in protest at Government plans to partly privatise the Royal Mail.

Jim McGovern resigned from his position as Parliamentary Private Secretary (PPS) to Business Minister Pat McFadden.

The Dundee West MP said: "I believe a PPS has to be fully supportive of proposals of the department which they serve. In this case, I do not support what looks to me like partial privatisation of the Royal Mail.

"In his statement Pat McFadden said he welcomed an expression of interest from the Dutch postal company TNT.

"For me, it simply beggars belief that we would employ the services of a company from abroad to tell the Royal Mail in this country where they are going wrong."

A number of backbench Labour MPs have attacked the Government’s move to inject private capital into the Royal Mail and have pledged to fight the plan.

The Government announcement yesterday followed publication of a long-awaited report into the future of Royal Mail, which called for "radical" action to secure its future.

Plan to part-privatise Royal Mail attacked as ludicrous

ROYAL MAIL could be part-privatised and a stake sold to Dutch firm TNT, Business Secretary Lord Mandelson said last night.

Lord Mandelson said he accepted the recommendations in a long-awaited report into the future of Royal Mail by former Ofcom executive Richard Hooper.

But the plans were criticised by former Welsh Secretary Peter Hain, while Plaid Cymru described them as “ludicrous”.

The Hooper report called for an overhaul to modernise the Royal Mail and deal with its huge pension fund deficit.

The new “partnership” with an outside firm would not involve the network of local post offices, but Lord Mandelson said the letters-delivery business needed “far-reaching change”.

Under the Hooper plans, the Government will take over responsibility for reducing the mail service’s pensions deficit, while Ofcom will take over as regulator.

Lord Mandelson said: “I believe that Royal Mail and the postal market can thrive in the future – provided that decisive action is taken now

“Without far-reaching change, the opportunities brought by technology will become overwhelming threats.”

The Hooper report also highlighted the “large, growing and volatile” pensions deficit, which Lord Mandelson said was “near impossible” for the business to manage.

“Each year, on top of its regular £500m contribution to the pension fund, the company is having to find an extra top-up of £280m to plug the deficit. These payments look set to rise substantially when the fund is re-valued next year.”

But Neath MP Mr Hain, a former official at the Communication Workers’ Union, said he was concerned the plans would “open the door to full-scale privatisation against the wishes of our party and our Government”.

He added: “Taking the pension fund onto the Government’s balance sheet effectively lifts a burden of perhaps around £700m off the Royal Mail’s balance sheet and therefore either fattens the calf for a future privatisation or leaves the Royal Mail without their liability in a much more effective position to compete as a fully-owned public sector organisation.”

Plaid Cymru MP Adam Price said: “I’m deeply concerned by the fact that the UK Government is seriously considering the part privatisation of Royal Mail. These proposals are ludicrous, and could lead to the loss of thousands of jobs at mail centres.

“Many of the problems currently faced by Royal Mail have arisen solely because of previous attempts at liberalisation and privatisation.

“Whilst changes are necessary, privatisation is not the answer. The Government needs to protect these jobs, and look at other ways to strengthen Royal Mail. These proposals will only serve to weaken the service provided by the Royal Mail and should therefore be scrapped.”

[BELIAL]

At last an MP with integrity and the courage to act on his convictions hats off to Jim McGovern

[heapsy]

At last an MP with integrity and the courage to act on his convictions hats off to Jim McGovern

Wish I could say the same for my MP. He hasn't even signed the early day motion on the pension issue. Tory tosser!