Fears of revolt at Cabinet level

[TrueBlueTerrier]

Fears of revolt at Cabinet level as Miliband is dragged into Royal Mail row

http://www.dailymail.co.uk/news/article ... l-row.html" onclick="window.open(this.href);return false;

David Miliband was today dragged into the bitter row over the Royal Mail amid reports that the revolt has spread to Cabinet level.

The Foreign Secretary was named as one of the senior figures who is uneasy about the plans to sell-off up to a third of the services to a foreign rival.

It came as three ministerial aides added their names to a backbench motion against the measures.

In a sign of mounting anger over the issue, Lord Mandelson was today heckled as he introduced controversial plans to sell off part of the Royal Mail.

Labour peer Lord Clarke, a former postman, shouted 'shame on you' at the Business Secretary as the Bill was given its first reading in the House of Lords.

Full details of the Bill will be published tomorrow.

Parliamentary Private Secretaries Stephen Pound, Dave Anderson and Sharon Hodgson are now among 132 Labour MPs to sign the Early Day Motion calling on the Government to abandon the plans.

Fellow PPSs David Hamilton and Stephen Hesford are also opposed to the measures.

As aides to ministers, PPSs are on the first rung of the ministerial ladder. They are traditionally seen as highly loyal to the Government.

Mr Miliband's spokesman today furiously denied reports that he had concerns about Lord Mandelson's plans to sell-off part of the Royal Mail.

She described the frenzied speculation as 'complete and utter rubbish'.

At Westminster, there were also reports of tension between the Prime Minister and Chief Whip Nick Brown over the policy.

Communication Workers Union sources said that Mr Brown had assured them that he will take 'no action' against the PPSs and that he privately harboured concerns about the plans.

The Prime Minister was also forced to intervene in a cabinet meeting to ensure that the legislation should be pushed through Parliament before summer.

Both the Chief Whip and Commons Leader Harriet Harman were said to be opposed to the timing of the Bill at a meeting of a cabinet sub-committee on Tuesday.

Lord Mandelson, who is championing the legislation, was backed by the Prime Minister - despite warnings that the Government will have to rely on Tory votes to ram the plans through.

Miss Harman's intervention has caused further tension just days after she was accused of positioning herself to challenge for the Labour leadership when Mr Brown steps down.

Lord Mandelson remains determined to face down the rebels. He has warned the sell-off is essential to improve the Royal Mail's efficiency and to raise funds to pay pensions to postal workers.

Chief executive Adam Crozier has warned that the company is facing a massive £8billion to £9billion hole in its pension liabilities.

Introducing the bill today, Lord Mandelson told peers the bill would 'make provision for the restructuring of the Royal Mail Group and of the Royal Mail pension plan'.

But he was heckled by Lord Clarke, a former deputy general secretary of the postal workers' union in the 1980s, who shouted 'shame on you'.

The bill was given its first reading - essentially a formality which allows it to be printed so peers and MPs can see the proposals in detail. It will be debated in full at its second reading - although no date has yet been set for that.

It is also understood that the former Trade and Industry Secretary Stephen Byers is the latest senior Labour figure to privately express concerns about the Royal Mail plans.

Downing Street may have to offer concessions if faced with Government resignations.

[brothermagrew]

Isn't the 2nd reading due on or about the 10th March 2009?

[TrueBlueTerrier]

Isn't the 2nd reading due on or about the 10th March 2009?

Yes it is - you can follow the progress of the bill through its stages (and is amendments etc) from this page http://services.parliament.uk/bills/200 ... vices.html" onclick="window.open(this.href);return false;

[andy2007]

Thanks.