Royal Mail privatisation: 50 Labour MPs 'would rebel'

[TrueBlueTerrier]

Around 50 Labour MPs are ready to vote down plans by Peter Mandelson, the Business Secretary, for a part-privatisation of the Royal Mail.

http://www.telegraph.co.uk/news/newstop ... rebel.html

Patrick Hennessy, Political Editor
Last Updated: 10:22PM GMT 20 Dec 2008

Leading backbench opponents of the government's proposals to allow foreign investors to take a stake of up to 33 per cent of the organisation are convinced they have the numbers to block legislation expected in the New Year.

With Labour's Commons majority currently 66, the rebellion would be enough to leave the government dependent on support from the Conservatives to get the measure through.

Such an outcome would be a humiliation for Lord Mandelson, who last week announced the controversial plan for a "strategic partnership" between publicly-owned Royal Mail and an outside investor. TNT, the Dutch postal group, is understood to be the front-runner.

The plan has sparked outrage among unions and Labour backbenchers, none of whom spoke out in support of the plans when Pat McFadden, the Post Office minister, announced them in the Commons last week.

Furthermore, details of a "heated" meeting last Thursday between Lord Mandelson and backbench rebel leaders, whose numbers included John Grogan, the Selby MP, can also be revealed.

One of those present at the meeting said the talks had been "pretty heated" and that Lord Mandelson had warned backbenchers at one point "not to make this personal".

The Business Secretary had been particularly unwilling, the source said, to answer questions about the timing of legislation – which will be necessary before the government can sell any of its stake.

"Peter kept insisting he had no information about when legislation would be brought forward and that it was all a matter for the Commons authorities," the source said.

"What I simply cannot understand is why Peter seems to be picking this particular fight now – at a time when the party is united. 2009 could be a general election year and it doesn't make any sense to cause all these divisions."

One member of the government, Jim McGovern, has already resigned as parliamentary private secretary to Mr McFadden, in protest at the publication of a report last week recommending an injection of private capital. He said the plans to involve a foreign firm "beggared belief".

The row also threatens to cost Labour the affiliation of the 250,000-member Communication Workers Union (CWU) whose leadership will ask members to approve a formal split form the party if Lord Mandelson's proposals go ahead.

Breaking the link would hit Labour in the pocket – the CWU has contributed more than £5 million since 2001, and £500,000 over the last 12 months, to the party.

Alan Johnson, the Health Secretary and a former leader of the CWU, is one of a number of senior ministers claimed by rebels to be privately sympathetic to their views. However, Mr Johnson is understood to have backed the plans in talks with cabinet colleagues, claiming they were the only way forward for the beleaguered postal service.

Another senior figure said by rebels to "persuadable" over their cause is Nick Brown, the Chief Whip. Again, however, such a move appears unlikely because Mr Brown is responsible for driving government legislation through the Commons.

Rebel Labour MPs will spend parliament's Christmas break considering their next move – which could involve tabling an Early Day Motion to attract signatures of support from backbenchers.

This would be likely to revolve around the wording of an agreement hammered out at the Labour's National Policy Forum earlier this year – that the party was committed to a "wholly publicly owned, integrated Royal Mail group".

Lord Mandelson's opponents argue his plans drive a coach and horses through the commitment. The peer, however, claims the postal service needs better managers – and that part-privatisation is the quickest and best way of achieving this.

A government source last night accepted the possibility of around 50 potential rebels. "That figure sounds about right," he said.

Alan Duncan, the shadow business secretary, said: "The Labour Party simply doesn't trust Peter Mandelson. He says it isn't part-privatisation – it is.

"While we believe some form of commercial injection into the Royal Mail probably makes sense, we cannot commit to any legislation until we know the precise details of what the government is proposing."

The Conservatives were particularly worried about a possible government "raid" on the Royal Mail's £22 billion pension fund, in an attempt to make the scale of public borrowing look smaller, Mr Duncan added.

[TrueBlueTerrier]

Alan Johnson, the Health Secretary and a former leader of the CWU, is one of a number of senior ministers claimed by rebels to be privately sympathetic to their views. However, Mr Johnson is understood to have backed the plans in talks with cabinet colleagues, claiming they were the only way forward for the beleaguered postal service.

Showing his true colours - says what he thinks people want to hear. How did this guy end up being a Leader of our Union.

[dvbuk55]

Alan Johnson, the Health Secretary and a former leader of the CWU, is one of a number of senior ministers claimed by rebels to be privately sympathetic to their views. However, Mr Johnson is understood to have backed the plans in talks with cabinet colleagues, claiming they were the only way forward for the beleaguered postal service.

Showing his true colours - says what he thinks people want to hear. How did this guy end up being a Leader of our Union.

You could ask the same question today - and the answer would be the same - he was voted in by the membership - yes it's hard to believe but true.

[baldrick]

It was a choice between two people - neither of whom were known to most of the membership.