Ministers defiant on Royal Mail

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THE government pressed ahead yesterday with its controversial plan to part-privatise the Royal Mail, in the face of opposition from Labour MPs and unions.
Ministers pledged to use money raised from the sell-off to modernise the business and said attracting a "strategic partner" would help to deliver a "transformed" Royal Mail.

They were responding to concerns from the Commons business select committee about the government's plans, arguing the case for selling off a stake in the business had not been made.

But postal services minister Pat McFadden said the Royal Mail faced a "stark choice" over its future – to modernise or decline.

The government added that the committee supported the majority of its proposals, including that the status quo was not an option.

It recognised that Royal Mail Group was significantly less efficient than its competitors and there was a need for both management and unions to change.

The Postal Services Bill will be debated in the Lords tomorrow before its third and final reading on 20 May. It will then be debated by the Commons, where many Labour MPs are expected to vote against the government.