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Ministerial aide quits in revolt over Royal Mail sell-off
Paul Waugh, Deputy Political Editor17 Dec 2008
GORDON BROWN was facing a growing Labour revolt over the part-privatisation of the Royal Mail today after a ministerial aide quit in protest.
Jim McGovern resigned from his position as parliamentary private secretary to business minister Pat McFadden, saying he could not support the plans.
But the Prime Minister refused to back down and issued an email to Labour Party members stressing he was fully behind Lord Mandelson's strategy.
Mr Brown said that a "partnership" in which a private firm would hold a minority stake in the postal service was essential to securing its future in the public sector.
"This is the best way to save the Royal Mail and its universal service guarantee," he said. But Dundee West MP Mr McGovern hit out at the idea of Dutch postal firm TNT being allowed to take a stake. "For me, it simply beggars belief that we would employ the services of a company from abroad to tell the Royal Mail in this country where they are going wrong," he said.
Government sources said his resignation was "not unexpected" and Business Secretary Lord Mandelson was not going to be diverted from his plans.
But, said one insider, there was still "lots to discuss" with MPs ahead of concrete proposals in the New Year, and Lord Mandelson wanted to persuade backbenchers that "these plans are the best way to secure the future of the Royal Mail in the public sector".
Lord Mandelson met MPs last night. But only 15 backbenchers out of the 350-strong Parliamentary Labour Party turned up to the "open" meeting, and of those about half were against the Government's plans.
Sources claimed the meeting was "not acrimonious", pointing out that other MPs present agreed radical action was needed to help the Royal Mail.
Former employment minister Ian McCartney was among those who said MPs had to face the "facts" about the drop in mail business triggered by the rise of the internet. Ministers expect a majority of Labour MPs to support their plans.
Shadow business secretary Alan Duncan said: "This resignation shows no one is falling for Peter Mandelson's spin that selling off part of Royal Mail does not count as part-privatisation. Labour is split from top to bottom on this."
Reader views (10)
What a joke this new labour is. To bring back a liar and an imorale man back from E.U.
This goverment has set out to destroy this once fine reliable Postal service. How can you run any company and not allow it to compete on a fair playing field.
This was done by allowing tnt,buisness post e.c.t to take the easy bits and there for starving the Royal Mail
of any revanue.
This Goverment is a callas, back stabbing and cold hearted towards it,s own supporters. Shame on this thatcherite newlabour Goverment.
I hope and pray you are out at the next election
U.K.I.P for me
- M Swift, wigan, 18/12/2008 09:31
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It was predictable that Mandelson would stir things up, and cause problems for Labour. It's just started. Brown will rue the day that he brought Mandelson back from Brussels. Lord M. has practically taken over the PM's job.
- Phil Jones, London UK, 17/12/2008 20:22
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Not much left to sell off now I guess. I suggest the Queen very quickly digs a hole for the crown jewels.
- Roger, Surrey, 17/12/2008 17:44
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'So, Heinrich. Vot do you think? Ist gut, no? Der British post office for next to nothing und der British government fire all der vorkers, pay der pensions deficit und give us der subsidies. Schon, nein?'
'Ja, Karl. But, vill they paint all der vans mit der new logo - Deutsche Mail?'
'Oh ja! They do everything. They paint our mission statement on der vans for us.'
'Vot is der mission statement, Karl?'
'Deutsche Posting Uber Alles, Heinrich.'
'Sehr schon, Karl. Und vill der be somebody else's head on der stamps und nicht der Queen?'
'Naturlich! Or Bismarck or Kaiser Wilhelm or my little Heidi.'
'Wunderbar, Karl!'
- John Problem, Hackney Wick, London, UK, 17/12/2008 14:54
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Why is Lord Mandelscum being allowed into The Commons to make speeches?
And why has it taken twelve years of swanning around before McLabour has begun to address any issue of significance to the British Electorate?
The wonderfully mesmeric McLabour 'Third Way' 'cicuit' has brought us all the way back to where we started.
Still, 'things can only get better', as some mendacious prophet once never ceased to remind us.
- Dave, cumbria, 17/12/2008 14:32
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The Government chose the management which has so evidently failed and we the users and the taxpayers are the sufferers. Why the hell anyone who is not employed by this Government or is receiving benefits is intent on voting for Gordon et al, I do not know. The Government is incompetent.
- William, London, 17/12/2008 12:49
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Who uses the postal service to send letters any more these days? Personally I think we should just sell the whole thing off to the highest bidder, I'm sick of the government throwing taxpayers money at the problem.
- Bob, Cheam, 17/12/2008 12:37
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Do they think we're idiots? Crozier and his Boardroom cronies have let the service disintegrate to the state it's in today - look at the state of any Post Office (if you can find one) - just so that this would happen.
Now with Mandy jumping into bed with him, the future is great for the Fat Cats at the top. Trebles all round, eh chaps?
- Jane, London, 17/12/2008 11:33
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With any big institution sell off to foreign companies, the railways or energy for instance, prices have increased exponentially year on year.
The Europeans see it as a way to rip of Britain at the same time as subsidising their domestic markets.
- Frank, Home Counties, England, 17/12/2008 11:30
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It costs around 50p to send a letter inland within Germany, I understand Germany are one of the potential bidders. Not so 'good for our customers' I think.
- Mark, London, 17/12/2008 10:04
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