Royal Mail privatisation warning

[TrueBlueTerrier]

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A clear majority of Conservative and Liberal Democrat voters oppose privatisation of the Royal Mail, union bosses warned Tories at the party's annual conference.

Communication Workers Union general secretary Billy Hayes unveiled poll which found 42% of Tory supporters against a sell-off and just 36% in favour. Among Lib Dems, opposition was stronger, with 56% opposing privatisation and 27% in favour.

Business Secretary Vince Cable is later this month expected to publish a Postal Services Bill paving the way for privatisation of the Royal Mail, but is facing stiff opposition from the union, which staged a series of strikes last year and has not ruled out fresh industrial action in its campaign to keep the business wholly publicly owned.

Mr Hayes took the unusual step of hosting a meeting on the fringe of the Tory conference in Birmingham to make the case for continued public ownership.

According to the union's poll, conducted last week by YouGov, an overall total of 54% of the public oppose privatisation, with 23% in favour. Some 48% believe services would get worse in a privatised Royal Mail and 72% thought prices would go up, against 25% who expected better services and just 6% cheaper stamps if it is sold off.

Strikingly, Conservatives questioned for the survey were pessimistic about the impact of privatisation on price and quality of service. Some 37% said services would be worse and 34% that they would get better under private ownership, and 67% expected prices to increase, against 6% who said they would drop.

Mr Hayes said that, while his union is Labour-affiliated, its membership was by no means united in backing the party electorally. Some 22% of CWU members voted Tory in May - up from 12% in 2005 - while support for Labour dropped from 65% to 48% over the same period.

However, the union accepted that change was needed to bring in the investment needed for modernisation, but believes that alternatives to privatisation should be explored, he said.

Government help to "fix" the Royal Mail's pension deficit could free up £300 million a year for investment, while fairer payment for "final mile" services could deliver another £120 million, CWU deputy general secretary Dave Ward suggested. And he argued there was no reason why the company should not be allowed to borrow on the open markets or be given greater independence on the model of NHS Trusts.

"We are not saying that the existing situation is the answer or that the answer is that the Government should keep putting money into Royal Mail," said Mr Ward. "There are other solutions."

[dvbuk55]

It's an interesting proposition that the Tories and Lib Dems will be swayed by anything the voters or Billy has to say - if the legislation goes in this October the sale will be next year and a long way from the next election.