Labour unrest grows as Prescott supports rebels

[TrueBlueTerrier]

Labour unrest grows as Prescott supports rebels opposing sale of Royal Mail

http://www.guardian.co.uk/politics/2009 ... ail-labour" onclick="window.open(this.href);return false;

Gordon Brown faces a growing wave of Labour unrest at Westminster this week after former deputy prime minister John Prescott broke ranks by making clear he opposes plans to take Royal Mail out of public ownership.

As MPs return to parliament after a three-week break, the prime minister will tomorrow address what is expected to be a heated meeting of the Parliamentary Labour Party, urging members to show discipline in the fight against the Tories.

While he will win plaudits for taking firm action to combat the recession, Labour whips are worried by splits emerging over the Royal Mail and plans - likely to be confirmed this week - for a third runway at Heathrow. There are also renewed demands, backed by dozens of Labour MPs, to impose a windfall tax on energy companies.

Tomorrow, the row over plans being pushed by the business secretary, Peter Mandelson, for the part-privatisation of Royal Mail will return to the centre stage after Prescott made clear he was against any move to take it out of public ownership.

Prescott's comments came in an email to a Labour supporter, posted on the grassroots website labourhome.org.

In it, Prescott recalls comments he made when elected to deputy leader in 1994, calling for a campaign to elect Labour in order to block the Tory agenda for the privatisation of the Post Office.

Prescott said: "Fourteen years on, Royal Mail and the Post Office face further difficulties, some due to the reluctance to meet the challenges of change, but they still benefit from remaining in the people's hands."

Last night, John Grogan, one of the MPs opposing Mandelson's plan, welcomed Prescott's remarks, saying "they would carry a lot of influence in the party". Rebels say they will have backing of more than 100 Labour MPs for a Commons motion opposing moves to sell off a minority stake in Royal Mail to a foreign company.

In addition more than 50 Labour MPs are opposing construction of a third runway at Heathrow and will step up demands this week for a Commons vote on the issue. Adding to the emotional temperature, more than 130 MPs of all parties - most of them Labour - have signed a statement urging an arms embargo on both Israel and the Palestinians.

[TrueBlueTerrier]

Links to the pages on Labourhome.com discussing RM.

The John Prescott Thread http://www.labourhome.org/story/2008/12/30/12296/752" onclick="window.open(this.href);return false;

Old one last comment in December http://www.labourhome.org/story/2008/12/16/11498/342" onclick="window.open(this.href);return false;

For ease of reference have copied the question and the reply:

markmcdonald Tue Dec 30, 2008 at 05:29:06 PM GMT
I recently asked John Prescott via his Facebook campaign to force banks to pass on the full interest rate cuts - No Ifs No Buts, Pass on the Cuts' - if he still thought we should keep the Post Offices nationalised, remembering he made that pledge when he became Deputy Leader in 1994.

He posted a very interesting response which shows he's against part privatisation. At a time when we have virtually nationalised our banking system (with a bail out of the motor industry looking increasingly necessary) is it really a good time to consider selling off one our most treasured assets? JP also argues that the post office should be made the first ever People’s Bank, an idea that would have much support on both left and the right.




For those not on Facebook, I've posted his response below.


Hello Mark,
You’re absolutely right. On the day of my election as deputy leader back on July 21 1994, I called for a campaign to elect a Labour Government and to prevent the privatisation of the Post Office.
You can see my speech here http://uk.youtube.com/watch?v=NvXkPEzKjoc" onclick="window.open(this.href);return false;

I’m proud to say that we delivered on those two pledges.
14 years on, Royal Mail and the Post Office face further difficulties, some due to the reluctance to meet the challenges of change. But they still benefit from remaining in the people’s hands.
It wasn’t the Post Office, the Co-Op or the mutuals that had to be bailed out by the taxpayer to the tune of £37billion.

It was the private banks who, thanks to their inherent greed and desire for excessive profits and bonuses, brought the world’s economy to its knees.
And what was the banks’ response to the bail out? They refused to pass on the interest rate cuts from the Bank of England to hard-working families and struggling businesses.
That’s why I launched the ‘No Ifs No Buts – Pass on the Cuts’ campaign to force the banks to pass the cuts on in full. Some have responded – others shamefully still refuse.
So I think the time is right to offer a real choice to those who need it.

Next year the Post Office marks its 40th anniversary as a public corporation. They say life begins at 40 so why don’t we consider giving it a new lease of life by turning it into the People’s Bank.


For the two million who don’t even have a basic account, let’s allow the Post Office to provide them with basic financial services that most of us take for granted.


To do this, the Post Office Card Account scheme, which I was closely involved with in the past, should be expanded to become a real alternative to an account with a private bank.


But to achieve this, the Post Office must stay publicly owned.


No Ifs, No Buts – keep our Post Office free from cuts.

[borders]

good old JP , could not agree with him more, whats good for the bankers is good for everyone else. particularly like this sentence ----"It was the private banks who, thanks to their inherent greed and desire for excessive profits and bonuses, brought the world’s economy to its knees".

[Night Tonic]

Can't see many of us objecting to a proper post office bank. Best way forward.

[Radio]

I hope he punches Mandelson in a public meeting somewhere :mfo (for those with shorter memories: http://www.youtube.com/watch?v=JhCc2f53v0w)

[DGP1]

Can't see many of us objecting to a proper post office bank. Best way forward.

We already had a Post Office bank but it was sold off for a quick buck, not sure if the government owns it again

[TrueBlueTerrier]

Can't see many of us objecting to a proper post office bank. Best way forward.

We already had a Post Office bank but it was sold off for a quick buck, not sure if the government owns it again

No Giro Bank (interesting wiki on it http://en.wikipedia.org/wiki/National_Giro" onclick="window.open(this.href);return false;) was sold to Alliance and Leicester, who have know been brought up by Banco Santander -

[DGP1]

Can't see many of us objecting to a proper post office bank. Best way forward.

We already had a Post Office bank but it was sold off for a quick buck, not sure if the government owns it again

No Giro Bank (interesting wiki on it http://en.wikipedia.org/wiki/National_Giro" onclick="window.open(this.href);return false;) was sold to Alliance and Leicester, who have know been brought up by Banco Santander -

I've lost track of the banks the government now owns (at least part of) but my argument is that whatever the Post Office does, those in charge will just flog it off at the first chance they get .