Commons in uproar over Mail sell-off
Independent survey finds opposition from all parties to Royal Mail privatisation
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Postal workers protest against plans to part-privatise Royal Mail outside Parliament yesterday
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The partial sell-off of Royal Mail is opposed by MPs of all parties, which could spell defeat for the Government, a survey for The Independent has found.
As Labour rebels warned that the proposals would spell "electoral suicide" for the party, the ComRes survey showed that their doubts are shared by some Tory and Liberal Democrat MPs.
That could make it harder for ministers to rely on the votes of Tory MPs to force its plans through Parliament even though the Opposition backs them.
Lord Mandelson, the Business Secretary, will publish a Bill tomorrow to allow the Government to sell about a third of its stake in the Royal Mail. But the move has been condemned by 125 Labour MPs.
The survey of 154 MPs from all parties found that only 28 per cent of Labour backbenchers back the Government's line that a part-privatisation deal is the only way to safeguard the long-term future of the Royal Mail, while 58 per cent oppose it – a margin of more than 2-1 against. There is more support among Tory MPs, 64 per cent of whom support the Government's approach. But 28 per cent oppose it, suggesting that some Tories may join with the Labour rebels to oppose the Bill. Among the Liberal Democrats, 53 per cent endorse the partial sell-off while 43 per cent reject the idea.
If the survey's findings are reflected when the Commons votes on the sell-off in the next few months, the Government would be defeated by 47 per cent to 39 per cent.
Labour MPs joined more than 500 postal workers as they staged a lobby of Parliament. Billy Hayes, general secretary of the Communication Workers Union, said: "Today is about people's democracy against the political elite."
Michael Connarty, a Labour MP, warned that the plans would "divide the Labour movement down the middle" and result in the party "committing suicide in front of the electorate".
Another Labour MP, John Grogan, claimed that at least three cabinet ministers were opposed to the sell-off. "I know because they have spoken to me and told me they are," he said.
But Lord Mandelson insisted: "The top and bottom line is that our policy will keep Royal Mail in the public sector and our legislation will make this clear. But Royal Mail will run out of money to sustain its current universal, six-day service unless its pension fund deficit is solved and its business transformed."
Adam Crozier, Royal Mail's chief executive, told the Commons Business Select Committee the group faced declining mail volumes and an increasing pensions deficit, adding: "We are going to have to do some pretty difficult things otherwise the company will not survive."
Kenneth Clarke, the shadow Business Secretary, said the Tories were ready to provide the Government with a majority. "We will support the part-privatisation plans, because what the taxpayer needs is a fully modernised and efficient postal service that can compete with the best in the world. It's the best way to secure a future for Royal Mail and make sure that we can send mail anywhere in the country for the same price," he said.
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Comments
I'd really like to know the amount The Post Office paid in the year preceding the pension holiday it took, and then multiply it by the number of years it enjoyed when paying nothing. Perhaps there would still be a deficit but I believe it wouldn't be anywhere near the amount currently quoted.
since you are obviously an expert on these things why not get the Indie to do a full scale investigation.
I have always thought of pension funds as sacrosanct but hmmm. maybe not,
,most important none of the journalists interviewing Mandy etc EVER ask why is there a deficit, first question to ask I would have thought. the good thing about having people like yourself to make comments such as yours is that you educate me- thank you
This sort of approach was at one time highly prevalent in the private Sector (Where the wealth generated determines a nations well-being.) until it became unsustainable due to a number of factors but mainly over taxation.
We all know where a good deal of these funds are directed, in effect the Public Sector Pension Pot.
The solution adopted in the Private Sector was sweeping indeed. Many of the leading wealth generating companies resolved the matter with restructuring in the form of massive compulsory redundacies for the majority of staff. Company pensions were frozen and deferred and staff re-employed under more favourable terms and conditions to the company concerned.
With about twenty five percent of the working population in public service employment with over generous benefits that are dagging the nation down, this is the type of solution needed to save nation from armageddon!
Or is this just anothe run-elected person messing with things he has no mandate for ?
Ian
What is even more galling is that the other parties behave in a way as though this is acceptable!
But I still can't help but feel, this sell off is just part of an undisclosed 'master plan' to ensure Britain's irrevocable weakness, achieved through a drive to make our intrinsic assets and utilities foreign owned.
I don't see how the Brits have gained from our utilities being foreign owned.
What is evident we pay substantially more for our Gas, Electricity and Water than our European counterparts, even when that supplier provides a far cheaper utility to their own country! I certainly remember the noise made by the EU about foreign cars being more expensive to buy in the UK than when bought on the mainland.
Funny how there silence from the EU on this unfair pricing is deafening now!
The government is screwed if the RM stays in public ownership because that means people will realise that its accounting of the PSBR has been err..specious...PSBR could be anything up to 500% of GDP not the 47% the ONS says it is.
The government is also screwed if it privatises it because it will go down like the poll tax - on top of that mass strikes by its employees will thoroughly nark off the voters as the post stops coming through.
The accounts committee wanted to know what the hell the bank CEOs were doing - couldn't they ask the same question to the electorate? What was everybody thinking? What are people who intend to vote Labour thinking? Perhaps they should be sectioned.
if they lose letters like they lose data why should we trust them over our good old postmen?- might as well privatise the police and the army using that twisted logic
I have actually long given up on 'Noo Labour', the party I helped gain office after years of Tory corruption, naively believing it to be the answer that the Country needed. What has been proved is that Labour is worse, and more than that, it knows it and is not the least bit shameful about it at all. I ask myself who can continue to support a party that has blatantly betrayed the very people that elected it to office?
I used to be a tribal voter but no more. I have determined to vote out whatever party screws with me and the next election will see me help nail down the Labour coffin.
I'm surprised I haven't yet been taxed for every letter I've typed in this message, and I just can't understand why anyone who has a pension can still be thinking about supporting Gordon and his cronies. Ever since Labour came in the prospects of any of us, still to reach retirement age, of ever being able to enjoy a stable and financially secure retirement have been diminishing fast!
Labour has been a big bad experiment that has gone disastrously wrong, for too many years we have all fallen for the smoke and mirrors that is the 'substance' of this totally discreditable party!!
I will get as much pleasure from the unseating of that Smith bitch as I did that of Portillo