Voters can send Royal Mail message to labour

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UK Government plans for part-privatisation of Royal Mail are in ruins after it emerged that the first round of offers fell well short of expectations.

SNP Postal Affairs spokesperson, Mike Weir MP, repeated calls for Labour Ministers to abandon plans to sell a stake after it was reported that the highest offer, at just under £2bn, was understood to have been made by the private equity firm CVC Capital Partners for a 30% stake.

Mr Weir said:

“These inadequate offers must spell the end for the UK government’s privatisations plans.

“In the grip of recession is no time to try and sell anything let alone a crucial stake in the Royal Mail, and Ministers must see sense.

“Despite the willingness of Labour Ministers to cede all sorts of controls on key appointments and operational matters to a minority private shareholder the bids have fallen well short of expectations.

“This absolutely confirms the worst fears that privatisation would spell the beginning of the end for Royal Mail. A private partner will only be concerned with profit, and the UK government are opening the door to job losses, service cuts and a deterioration in the working conditions of postal workers.

“Instead of making concessions to calm the rebellion on his own backbenches Gordon Brown has been bending over backwards to bring in a private partner. The prime minister is on a collision course with his own party, and this latest revelation will fan the flames of revolt on Labour’s backbenches.

“Royal Mail must remain in public hands and the SNP will continue to fight for the retention of the publicly-owned Royal Mail. It is not just Labour backbenchers who can vote against Brown on this, but voters in this weeks European elections too.”