Defiant Scots Labour MPs join Royal Mail rebellion

[TrueBlueTerrier]

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backbenchers revolt over government plans for part-privatisation of service

By David Perry and Alan Jones

Published: 15/01/2009

Defiant Scots Labour MPs have joined a Commons rebellion against UK Government plans for part-privatisation of Royal Mail.

Dundee West MP Jim McGovern emerged as a leading supporter of a motion put down at Westminster, with the support of 70 other Labour MPs, reminding ministers that Labour’s national conference “supported a vision of a wholly publicly owned, integrated Royal Mail Group”.

It also has the support of Linlithgow and East Falkirk MP Michael Connarty, who last night said: “It is the government who are the rebels.”

Mr Connarty said Business Secretary Peter Mandelson was “rebelling against all commonsense” in supporting proposals in the Hooper Report for a minority stake to be sold to a private-sector competitor.

He said: “We need to solve the problem of efficiency in the Post Office after management has taken all the wrong decisions, such as ending Sunday collections and second deliveries, and urged agreement with the workforce on measures which staff could claim ownership of.”

Mr Connarty said Lord Mandelson, who earlier sought in evidence to the Commons business committee to head off the revolt, indicating he was prepared to consider making “adjustments” to the proposals, had “failed to satisfy me” about the future of the postal service. He said: “Its problems will not be solved by bringing in a private owner from another country.”

Lord Mandelson expressed regret at the way the postal market had been opened up to competition in 2006. He said he was “not an unqualified admirer of all aspects of the regulation and liberalisation of this market” because it should have been done in a way that allowed the existing operator to modernise to meet competition.

Lord Mandelson again ruled out the prospect that the sale of a minority stake could be a prelude to full privatisation, saying that was a “non-starter”. But he said that the Royal Mail needed a new partner to bring in the “hundreds of millions of pounds” it needed in new investment as well as a “gale force of fresh air” into its management and culture.

The number of signatories exceeds the government’s majority, requiring ministers to embarrassingly rely on Tory support to get any legislation through.

SNP business spokesman Mike Weir said Lord Mandelson, who met MPs in a bid to win support for part-privatisation, had divided Labour “by going where even Mrs Thatcher would not dare and seeking to privatise Royal Mail”. The Angus MP said: “We have always totally opposed the privatisation of Royal Mail. Whatever assurances are now being offered, this will inevitably lead to a rundown of the service and substantial job losses.”

The opposition from Labour backbenchers threatens Prime Minister Gordon Brown with his biggest Commons revolt. The Communication Workers Union will stage a protest in Westminster today calling on Labour to keep Royal Mail wholly publicly owned.

General secretary Billy Hayes said the plans posed a “serious threat” to the UK’s postal service. He added: “Labour MPs understand the importance of keeping Royal Mail in the public sector.”

Labour MP John Grogan, one of the backers of an early day motion warning that selling a minority stake in the postal group would risk fracturing “one of Britain’s greatest public services”, said Royal Mail still had £600million from a £1.2billion government-agreed loan to modernise sorting offices and there was no need for private capital.

[DGP1]

There's no guarantee that the Tories will support this, any decent opposition party would vote against the government which would delay the proposal.

[prowler]

Unfortunately I do not hear of any unrest in the Tories or Lib Dems over this. Any Labour revolt comes to nothing if they support it. After the recent failure of the banks and other financial institutions, I don't think it will go down well with the general public. Time for everybody to lobby their MP's.

[TrueBlueTerrier]

I am going to but not holding out much hope he never answers my emails now - must have his spam filter set at 5 because thats all I have sent him.

[dvbuk55]

There's no guarantee that the Tories will support this, any decent opposition party would vote against the government which would delay the proposal.

I see the gleam of shekels in the Tories eyes - they'll be waiting in the wings to finish us off when the New Labour band wagon falls off the rails next year.

[DGP1]

There's no guarantee that the Tories will support this, any decent opposition party would vote against the government which would delay the proposal.

I see the gleam of shekels in the Tories eyes - they'll be waiting in the wings to finish us off when the New Labour band wagon falls off the rails next year.

True brother true

[prowler]

I am going to but not holding out much hope he never answers my emails now - must have his spam filter set at 5 because thats all I have sent him.

Yes, mines Sir Menzies-Campbell, so not much firkin hope there either.

[phantomshare]

send this letter to your MP:

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