Yorkshire MP leads postal rebellion to halt sell-off

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http://www.yorkshirepost.co.uk/news/Yor ... 4826549.jp

LORD Mandelson has been warned he does not have "a blank cheque to tear up Government policy" by a Yorkshire Labour MP at the forefront of the battle against plans to sell off much of the Royal Mail.
The Government has been facing a rebellion by up to 100 Labour backbenchers since it was announced the postal service could be part-sold to the private sector.

It was claimed yesterday by Parliamentary insiders that the Business Secretary was about to make concessions – by offering a statutory guarantee that no more than about a third of the business will be sold off.

But Selby MP John Grogan, a leader of the rebels, said bigger concessions would be needed to heal the rift.

Some commentators have compared the rift with the disquiet in the Tory ranks during Margaret Thatcher's controversial handling of the 1984-85 Miners' Strike.

Mr Grogan said: "It would need to be a bigger concession. It is good the Government is thinking of making concessions.

"But whether the one mentioned – that they have no plans to go beyond selling off a third – would do the trick I am not sure. I think a promise is a promise."

He underlined that just before Lord Mandelson took over, the Labour party approved a document which spoke of a wholly- owned Royal Mail at this year's Labour conference.

It was signed off by the Blairite and former Business Secretary John Hutton and Postal Affairs Minister Pat McFadden.

Mr Grogan added: "There was an investment plan approved – a public investment plan – to modernise sorting offices.

"So it is interesting there is some movement suggest in Government circles but there is still a good way to go. Obviously we are in the holiday period when we come back there may be a motion put down by Labour backbenchers backing the Government's policy as it was until very recently and we will have to see what support it gets."

Mr Grogan was a key rebel against moves in 2005 to weaken state ownership of the service.

Then Royal Mail Group
Chairman Allan Leighton wanted the then Department of Trade and Industry (DTI) to sign off the sale of a majority stake of the post office to its 200,000 staff, to provide a £2bn cash injection.

But the plan was vetoed by the Government following a similar back bench motion.

Mr Grogan did not think comparisons with the 1984 pit strike and the latest crisis were correct, but warned that the postal rebellion was likely to involve more than 100 MPs.

He added: "I think politically Peter Mandelson has won a lot of credit on the back benches for sharpening up the Government's act.

"But that does not mean he has a blank cheque to tear up policy developed over a number of years.

"Until he came along there was a plan for public investment to modernise the sorting offices – which the unions were up for.

"So there is sense of anger – and some bemusement – on the back benches he has turned his back on that."

Lord Mandelson's plan is to take on the Royal Mail's crippling pension debts, which could deter investors, and then dispose of 25-33 per cent of the postal service to a foreign buyer.

He believes the joint rewards of investors' cash and private sector know-how will more than justify the sale, but the rebels fear it breaches a manifesto commitment against privatisation of the sector.

A Government spokesman said ministers were still studying the package of proposals from an independent review panel led by businessman Richard Hooper.

The spokesman said: "The position is the situation has not actually changed. So all of this is premature. Legislation has not been proposed."

Lord Mandelson had talked in his initial remarks to Parliament about a "minority stake" in Royal Mail. "We have not yet specified what that might be," the spokesman added.

"The Government will continue to discuss these matters with MPs, unions, and other groups.

"We are studying the Hooper report in detail and will respond in the new year."