Labour MPs demand limit on private ownership of Royal Mail

[TrueBlueTerrier]

http://www.telegraph.co.uk/news/uknews/ ... -Mail.html

Labour backbenchers are demanding a legal limit on the stake private operators can take in Royal Mail under the Government's part-privatisation plans.


By James Kirkup, Political Correspondent
Last Updated: 5:47PM GMT 28 Dec 2008


Left-wingers want Lord Mandelson, the Business Secretary, to commit to a statutory cap on private ownership of Royal Mail, ensuring that the state always retains two thirds of the company.

As first disclosed by The Daily Telegraph earlier this month, Lord Mandelson has accepted a recommendation 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 a third of the company.

Ministers say radical new measures were needed if the state postal service is to survive in an era of email and mobile telephones.

The part-privatisation would almost inevitably lead to job losses at the Royal Mail and possible closures of some post offices and changes in services.

Trade unions and Labour left-wingers are angry about the sell-off, and Jim McGovern, a parliamentary private secretary in Lord Mandelson's Department for Business and Enterprise, earlier this month quit in protest.

Rebel MPs will table a parliamentary motion criticising the sell-off plans when the Commons returns on Jan 12.

Rebel leaders claim as many as 100 Labour MPs oppose the Government's plans, including several more Government aides. Former ministers including Peter Hain have also spoken out against the plan.

Neal Lawson, the chairman of Compass, a left-wing Labour pressure-group, said the privatisation of plan betrayed Labour's traditions and British values.

He said: "There is no more potent symbol of our national identity than the Royal Mail. Its sale to the highest foreign bidder will be another self-imposed nail in the heart of our national identity."

Jon Cruddas, a former Labour deputy leadership candidate, backed the rebellion, calling for a fundamental change in policy that would transform the Royal Mail into a state-owned "People's Bank."

Mr Cruddas said the Post Office network should be used to offer basic financial services to the 2 million people who do not have access to a conventional bank account.

The Post Office Card Account scheme which allows users to pay bill and make other payments, should be expanded to become a "real alternative" to an account with a private bank, he said.

Mr Cruddas said: "The Royal Mail has been short-changed for years as we have it up for a sell-off. Instead, we should rebuild it as a key part of an alternative local banking system."

Lord Mandelson has held several meetings with Labour MPs where he has insisted he wants to find a consensus on the future of the Royal Mail.

Government insiders insisted ministers are open to discussing proposals from backbenchers, including a statutory limit on private investment.

Lord Mandelson has also struck an emollient tone in meetings, urging rebels not to turn the debate into a personal row.

But privately some Labour MPs believe Lord Mandelson is deliberately provoking a backlash from left-wingers and unions in order to emphasise the Government's pro-business, reforming credentials.

Some ministers including Alan Johnson, the Health Secretary, are said to have expressed doubts about Lord Mandelson's presentation of his plans.

[BELIAL]

More subtle Torygraph spin and an attempt at agenda setting? Headline of MP's demand a cap on private ownership but not a single quote to back it up . Deliberate,sloppy, or wishful thinking?

[axeman]

Do you trust ? :mfo :mfo

[DGP1]

Do you trust :mfo :mfo

I don't trust him because he's a lying little, self obsessed, devious, coniving, money grabbing politician.

[BELIAL]

Reading between the lines ,Id have to say that the position of evil self serving ,megalomaniac ,narcissist is open to all without fear or favour

[DGP1]

Do you trust :mfo :mfo

I don't trust him because he's a lying little, self obsessed, devious, coniving, money grabbing politician

Whoops, I forgot about the reporting post

[bogstandard]

Do you trust ? :mfo :mfo

i wouldn't trust him if he were dead, if our lucks in he will try to put that right.

[smokerjim]

Do you trust ? :mfo :mfo

i wouldn't trust him if he were dead, if our lucks in he will try to put that right.

No matter what you think of the service, colleagues ( including those you dislike ) or customers ( even the DSA shysters ) that "man" is not worth one day's chokey.....and he doesn't have the morals or scruples to "suck a tail pipe"