Source: The Sentinel
16th January 2009
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MPs are opposing plans to privatise the postal service. The Government wants to sell a minority share in Royal Mail to a private firm in order to bring in new investment and expertise. |
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But 71 Labour members, including Stoke-on-Trent MPs Joan Walley and Mark Fisher and Newcastle MP Paul Farrelly, have signed a motion against the proposal. A heated exchange between members and Business Secretary Lord Mandelson took place at a private meeting of up to 60 Labour MPs on Wednesday. Lord Mandelson gave assurances at the meeting that the plan would not lead to full privatisation and that Royal Mail's 'universal commitment' to run a delivery service around the country for the same price would not be ditched. But many members remained unconvinced. Mr Farrelly suggested ministers had already made a mistake by allowing private firms to compete against Royal Mail in some of the more profitable parts of the delivery industry, while leaving the public sector body with the costly universal commitment. He said: "We promised to invest in a publicly owned Royal Mail in our manifesto. "The Government will be rightly taken to task if it goes ahead - it's going to be controversial." Ms Walley, who represents Stoke-on-Trent North, said: "There is money that the Government has pledged to Royal Mail which is yet to be spent. "I want to see that being used to transform the group rather than go down this road." |