MPs on collision course over Royal Mail 'part-privatisation'

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http://www.yorkshireeveningpost.co.uk/n ... 4811496.jp

Published Date:
22 December 2008
By Mark Hookham
Political Editor
Gordon Brown is facing a New Year battle with Yorkshire MPs infuriated with Government plans to part-privatise the Royal Mail.
The YEP has learned of widescale backbench opposition to Government plans to allow a foreign firm to take a stake in the Royal Mail.

Selby MP John Grogan is at the forefront of a growing rebellion.

On Thursday afternoon he and four other MPs met Business Secretary Peter Mandelson to warn him that the plan threatens to open up a damaging rift within the party.

Leeds Labour backbenchers Colin Burgon (Elmet), George Mudie (Leeds East) and Fabian Hamilton (Leeds North East) have all also told the YEP of their opposition to the plans.

Meanwhile, union leaders in the city are putting pressure on other Labour MPs to stand up to the Government.

Dave Walton, the branch secretary of Leeds No1 branch of the Communication Workers Union, said: "In the New Year the heat will be on and we will be expecting MPs to not be sitting on the fence."

The row was sparked earlier this week when Lord Mandelson accepted a recommendation from an independent adviser that Royal Mail should 'forge a strategic minority partnership' with a private company.

TNT, a Dutch firm, has confirmed that it expects to take a significant minority stake holding in Royal Mail, investing as much as £3 billion for around a third of the company.

The part-privatisation would almost inevitably lead to job losses at the Royal Mail and major changes to services.

Rebels say Gordon Brown's cabinet is 'far from united', with claims that at least two cabinet ministers have privately voiced concerns at the proposals.

Mr Grogan said: "There is a lot of disquiet on the Labour party backbenches on this, not least because the national policy forum passed a policy saying the Post Office should be wholly publicly owned.

"I do not see a need for it. The Government has already approved money for the Post Office to modernise and the unions have agreed to talks about the unavoidable job losses that will come with more modern equipment for sorting mail."

George Mudie said: "I think there is a need for modernisation but I do not like the question of privatisation and I question giving Adam Crozier (Royal Mail chief executive) £1.2m if he is not doing the job they have put him in there to do. I get the feeling it's a shot across the bows to the workforce and to the unions."

Fabian Hamilton said: "It does not take a genius to realise that if you allow commercial companies to cherry pick the most profitable and attractive parts of the Royal Mail then the rest will not be very profitable."

Colin Burgon confronted Lord Mandelson on the proposals at a meeting in Westminster on Tuesday night.

He said: "I said you need to think again. Ministers have admitted they put money forward to the Post Office for modernisation and the money hasn't been spent."