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Rebel Labour backbenchers attack ‘kamikaze move’ to sell Royal Mail
Paul Waugh and Joe Murphy05.05.09
Labour MPs warned of a major rebellion on the Royal Mail sell-off today as they said pushing through plans would be a "kamikaze move" for Gordon Brown.
Leading backbench rebels hit out after it emerged Business Secretary Lord Mandelson was keen to push ahead with the partial sell-off in a Commons vote next month.
With the party expecting a battering in local and European elections on 4 June, MPs believe holding the vote soon after would trigger one of the biggest revolts the Prime Minister has seen.
Some 150 MPs have signed a motion opposing the plans and rebels claimed that up to 90 of those would actually vote against the Government.
In a further complication, it was claimed today that regulator Postcomm had worries over the loss of business-mail competition if private firm TNT was allowed to take a stake in the Royal Mail. Ministers insisted today they would go ahead with plans to use private-sector expertise to pump investment into the service, although there remains doubt over the proportion of the company they will be allowed to own.
Leading rebel John Grogan also revealed that several Cabinet ministers had "in recent days" repeated concerns to him about the threat the sell-off plan would pose to Labour support. Mr Grogan told BBC Radio4: "In theory [the Bill] could come to the Commons straight after the European and local elections. I think it would be a kamikaze move quite frankly on behalf of ministers to bring it back then."
Business Minister Pat McFadden said alternatives would be looked at, but blanket opposition to the private sector was not an option.
