Mandelson’s Royal Mail warning
Business secretary Lord Mandelson has warned that opposition to the Royal Mail’s part-privatisation could cost Labour votes at the next General Election.
Business secretary Lord Mandelson has warned that opposition to the Royal Mail’s part-privatisation could cost Labour votes at the next General Election.
On February 25, the business secretary paved the way for the sale of up to 30% of the organisation in return for the government guaranteeing a universal service and taking over its £8bn pension deficit.
Lord Mandelson has accused unions of using scare tactics and failing to represent ordinary postal workers.
He said: “I think a lot of the workforce of the Royal Mail won’t be thinking of the politics of this but about their pension and their job security. Both are in danger if we do not sort out the finances of the Royal Mail.”
“I realise the point of the propaganda is to scare the public and to reduce support for what we are doing. But that also runs the risk of costing Labour a lot of votes.”
On February 28, Prime Minister Gordon Brown was jeered by more than 100 postal workers in Bristol as he mounted a vigorous defence of the plan.
More than 130 Labour parliamentarians are expected to vote against the plan, meaning the government may have to rely on support from opposition parties to get it through.
Lord Mandelson has said the Royal Mail is “balance sheet insolvent”, and warned there could be grave consequences if private investment is blocked.
He said: “They may succeed in defeating the legislation, but in the process they’ll defeat the turnaround in finances. They will defeat our ability to sustain the universal service. They’ll defeat the pension bail out.”
Deputy Labour leader Harriet Harman later said: “We need to act because we need to ensure the future of the Royal Mail,” Harman said. “We need to have capital investment and the right sort of expertise.”
“We cannot allow the Royal Mail to slide.”
The Commons leader called for a “calm debate” to find a solution to the row. She has been reported to have been at the forefront of internal Cabinet dissent on the issue and is said to have tried unsuccessfully to have blocked the legislation.
