Row escalates over mail sell-off

[TrueBlueTerrier]

http://www.ft.com/cms/s/0/3f956042-cfb6 ... ck_check=1

Labour committed to a “wholly publicly owned” Royal Mail at its party conference barely three months ago, rebels pointed out on Sunday, amid an escalating row over Lord Mandelson’s decision to part-privatise the postal operator.

The business secretary is determined the sale of about 30 per cent of Royal Mail to a private sector rival should go ahead as quickly as possible, said aides. Lord Mandelson is close to finalising the appointment of UBS, the investment bank, to advise, insiders said on Sunday.

TNT, the Dutch postal operator, has already expressed an interest in the sell-off, subject to agreement on the government’s pledge that Royal Mail’s £7bn ($10bn) pension deficit will be funded principally by the taxpayer.

Ministers will make a statement on progress after MPs return from the Christmas break on January 12. The legislation required to effect the part privatisation is expected in the spring.

But Lord Mandelson is running into increasing opposition from his own party to the move. MPs have already complained that the sale would break the spirit of Labour’s 2005 manifesto commitment to keep Royal Mail publicly owned.

A leading rebel MP said on Sunday official Labour party policy is now more stringent than the somewhat ambivalent manifesto wording. The National Policy Forum in July – the “Warwick II” meeting for ministers to agree policy with the unions ahead of the next election – agreed to “a vision of a wholly publicly owned, integrated Royal Mail”.

This statement was signed off by the party conference in September. John Hutton, the then business secretary, reportedly told a meeting at the conference that party policy on the issue had been agreed at the forum.

John Grogan, one of many Labour MPs opposed to the part-privatisation, told the Financial Times this conference agreement was a headache for Lord Mandelson.

“Although Peter is widely credited among backbenchers with sharpening up our political act, he has a political problem now in tearing up a policy signed off only months ago by an impeccable Blairite, John Hutton, and by the party conference,” Mr Grogan said.

The main postal workers union will use the National Policy Forum agreement as ammunition in its battle to force Lord Mandelson into a U-turn. The Communication Workers Union (CWU) said on Sunday it was garnering support among Labour MPs over the Christmas period for a parliamentary motion opposing the deal.

A large-scale revolt would prove an embarrassment for Gordon Brown, but not necessarily threaten the deal. The Tories have offered their backing to the government proposals, allowing ministers to overcome Labour resistance to get the legislation through parliament.

The CWU warned on Sunday that the proposed legislation would provide an “automatic trigger” for a ballot to disaffiliate from Labour, potentially cutting off a valuable source of funding for the party.

[mailman71]

the one thing i cant understand is tories voting with the goverment about the mail sell-off,if it comes to the crunch and we end up with any form of privatisation then the area's that could end up with dodgy deliveries would be rurals and most of them vote tory.

[baldrick]

the one thing i cant understand is tories voting with the goverment about the mail sell-off,if it comes to the crunch and we end up with any form of privatisation then the area's that could end up with dodgy deliveries would be rurals and most of them vote tory.

Didn't stop them (Tories) from selling off the railways and bus routes, though it meant
difficulty for people in rural areas who don't have a car. As long as their director friends
and shareholders make money out of it they will support privatisation.