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Unions to ambush Brown over Royal Mail sell-off
Paul Waugh, Deputy Political Editor27 Feb 2009
GORDON BROWN is facing an ambush from furious Labour and trade union chiefs over Business Secretary Lord Mandelson's "snake-oil salesman" plans to part-privatise Royal Mail.
In a clear signal that new concessions on the deal have failed to quell the growing revolt, Britain's biggest unions are to throw their weight behind rebel MPs when the Prime Minister addresses a policy forum tomorrow.
The clash comes amid fresh threats from the Communications Workers' Union to axe its £1 million-a-year donations to Labour and the first clues that postal staff will refuse to help the party in the European elections in June. Relations between Labour and its trade union paymasters were strained further today when Europe minister Caroline Flint warned that opposition to "foreign workers" was boosting the far-Right British National Party.
The row over Lord Mandelson's plans for Royal Mail are predicted to boil over at a meeting of the party's policy-making body in Bristol. Mr Brown had hoped to use it to boost Labour morale ahead of the combined local and European elections.
But the gathering of activists, MPs and unions will be dominated by the row over the partial sell-off and a mass protest is expected outside the event. The Business Secretary infuriated 133 backbench rebels yesterday by vowing to press ahead with his plans, albeit with minor concessions. Lord Mandelson said that the battle over Royal Mail's future was "a fight that we cannot afford to duck".
GMB general secretary Paul Kenny dismissed the peer's pledge that the state-owned company would remain publicly-owned as "slippery, almost snake-oil salesman stuff".
In a joint letter, Britain's eight largest unions - which between them bankroll Labour - attacked the proposals to bring in Dutch firm TNT as "electorally unpopular and politically unwise".
Rebels are expecting more concessions than those offered to date. The CWU last night raised the threat of strikes over job cuts. Rebel support was uniting around a proposal by former Cabinet minister Peter Hain to lift the statutory bar on Royal Mail borrowing more than £25 million on the capital markets.
Leading Labour rebel Geraldine Smith said the plan to seek private help was like "inviting the fox to run the hen house". Many Labour MPs warn that the row could be Mr Brown's own "poll tax", given the popularity of the one-price-goes-anywhere service with the public.
But Richard Hooper, whose report in December set the framework for the plans, lambasted the concession unveiled by Lord Mandelson yesterday to raise a levy on private postal operators to fund the single-price delivery service, saying it was not a solution.
Reader views (3)
Jeremiah, unfortunately on the Post Office vote Brown will get the support of the Tories which could save him. On a vote of no confidence, the New Labour MPs will not vote to bring an election because their careers might end, and they have the majority in the house.
I think we will have to wait until the last possible date that Gordon Brown can hold on to power for.
- Job'S Comforter, Derbyshire, 28/02/2009 23:18
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Gordon Brown's position is very clear: to save an ailing bank we need to nationalise it; to save an ailing Post Office we need to privatise it.
- Martha, Derbyshire, England, 27/02/2009 12:39
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I'm not sure of my arithmetic but surely 133 rebels represents a tipping point. Either Gordon 'Lyability' Brown will have to back down, or face a vote of no confidence. Bring on the election.
- Jeremiah, London, 27/02/2009 12:35
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