Royal Mail sell-off goes ahead despite Labour rebellion

[TrueBlueTerrier]

http://www.telegraph.co.uk/news/newstop ... llion.html" onclick="window.open(this.href);return false;

Plans to part-privatise the Royal Mail will be unveiled this week - a move which will set Lord Mandelson on a collision course with more than 120 Labour MPs opposed to the move.


By Andrew Porter, Political Editor
Last Updated: 6:45PM GMT 22 Feb 2009


The Business Secretary will publish the legislation which will pave the way for a stake in the Royal Mail to be sold to a private postal firm. The favourite to buy into the postal service is the Dutch company TNT.

The Daily Telegraph disclosed in December that the Government would for the first time allow an outside firm to invest in Royal Mail. That sparked a wave of fury from many Labour MPs who argue that it would threaten the "universal" nature of the postal service.

More than 120 MPs have signed a Commons motion opposing the plans. Nick Brown, the Chief Whip, has warned Gordon Brown that he will face problems getting the Bill passed without support from the Conservatives, who back the plans.

However, on Thursday Lord Mandelson will make it clear that he will not be thrown off course. The Bill is expected to come before the Commons in the summer.

Last night Pat McFadden told the Telegraph: "I know a number of Labour MPs have concerns about this, but with the company facing a huge pension fund deficit and the volume of mail falling year by year, and with a lack of automation compared to other Mail companies this is urgently needed."

Ministers are exasperated that MPs cannot see how parlous a state the Royal Mail is in and that decline and job losses are inevitable if it is allowed to continue in its current form.

As part of the deal and to make the Royal Mail attractive to new investors the pension deficit will be taken on by the Government. That £7 billion deficit already takes £600 million of taxpayers' cash each year.

In December the Hooper review into the Royal Mail reported that dealing with the pensions deficit was a pressing concern.

The stake that Lord Mandelson hopes to sell-off could be as large at £3 billion. TNT remains the favourite to secure the stake although tit is understood there have been other expressions of interests, including from Deutsche Post.

Also understood to be looking at the Royal Mail is CVC, the venture capitalists who have recently bought into other postal groups. While obliged to consider all offers ministers would be loathe to even look at selling to a private equity firm as it would infuriate Labour MPs still further.

A Government source confirmed that it was unlikely to seriously consider an offer from a firm that was not a postal operator.

When he publishes the Bill on Thursday Lord Mandelson is likely to offer limited concessions to the Labour MPs opposed to the plans. He will give a commitment in the Bill that the Government will maintain a majority stake in Royal Mail.

There has already been one resignation over the issue. Jim McGovern, a ministerial aide in the Department for Business, has stood down over the issue and the Communication Workers Union has warned that its relationship with Labour could be badly damaged if the sell-off goes ahead.

[dropbag_clone]

Lord Mandelson hopes to sell-off could be as large at £3 billion

And there is the heart of the matter. £3 billion

The government are desperate to raise money, any money, at any cost. (When the cost will be repaid is not a consideration, someday, sometime whenever but not just now..... lets grab the £3 billion while we can)

The fact that billions have been thrown into the banking system and the financial institutions with their dark and bottomless pit, so far without any measurable positive gain, is to be ignored.

It wouldn't surprise me if whoever tries to buy a slice of Royal Mail, at £3 billion pounds, raises the necessary capital from those very same institutions we have either propped up or have a majority holding in. Still its only our money they are being free and careless with, as a short term measure it smells sweet, (that sickly smell Mandleson brings to his political dealings) but the whole stinking idea will turn out to be rotten. In the long run selling the Royal Mail off to private industry will prove to be a mistake, in the short term its just another nail in Labours poor chances of being re-elected, and heaven help us if the Conservative get back into power, and I don't just mean Royal Mail.

[Broxi51]

http://www.telegraph.co.uk/news/newstop ... llion.html

Plans to part-privatise the Royal Mail will be unveiled this week - a move which will set Lord Mandelson on a collision course with more than 120 Labour MPs opposed to the move.


By Andrew Porter, Political Editor
Last Updated: 6:45PM GMT 22 Feb 2009



Ministers are exasperated that MPs cannot see how parlous a state the Royal Mail is in and that decline and job losses are inevitable if it is allowed to continue in its current form.

If Labour hadn't thrown RM to the wolves by opening up the market before the rest of Europe, RM would not be in such a parlous state. It is because of those exasperated ministers that we are in such a state and is part of the reason that those ministers will be out of a job come the next election.

[k979aaa]

http://www.telegraph.co.uk/news/newstop ... llion.html

Plans to part-privatise the Royal Mail will be unveiled this week - a move which will set Lord Mandelson on a collision course with more than 120 Labour MPs opposed to the move.


By Andrew Porter, Political Editor
Last Updated: 6:45PM GMT 22 Feb 2009



Ministers are exasperated that MPs cannot see how parlous a state the Royal Mail is in and that decline and job losses are inevitable if it is allowed to continue in its current form.

If Labour hadn't thrown RM to the wolves by opening up the market before the rest of Europe, RM would not be in such a parlous state. It is because of those exasperated ministers that we are in such a state and is part of the reason that those ministers will be out of a job come the next election.

For i never will vote for NEW LABOUR after the shafting of the masses by the few :mfo for the few :lfo & :cfo and all the rest of mandys mates!.

[Yahoorsur]

News reports on BBC News on Sky 504.The bill is being brought to the house this Thursday.

[k979aaa]

News reports on BBC News on Sky 504.The bill is being brought to the house this Thursday.

If that is the case why are we as a union paying for our own demise by contributing too this abomination of a so called government!. IS NOW NOT THE TIME TOO STOP FUNDING NEW LABOUR NOW!.

[Yahoorsur]

well Im just about to e mail our esteemed leader,his Billiness,asking that we stop funding the bastards,how about folk on here doing the same?

bhayes@cwu.org

Thats his e mail address.

[Phantom]

Whats all this crap about "automation compared to other mail companies"? RM recieves mail from the likes of TNT yet this is not walk sorted??? so what type of sorting do they do?

Oh well there goes saturday deliveries

[DGP1]

Whats all this crap about "automation compared to other mail companies"? RM recieves mail from the likes of TNT yet this is not walk sorted??? so what type of sorting do they do?

Oh well there goes saturday deliveries

Saturday deliveries will remain but Monday/Tuesday will go.

[resperin]

can the private companys over rule postal regulators? no days will go, but its possible that they might get someone to do both walks rather than just one thus cutting the need of half the current staff on mondays/tuesday

[fmrPOSTIE]

So Thursday is show-down day, will there be a vote on Thurs? Not exactly much time to read through this bill....

Im confused!