Tories bully Mandelson over Royal Mail

The Conservatives will remove their support for the government on partial privatisation of the Royal Mail if it offers concessions to Labour backbenchers, the party has warned.

The Conservatives will remove their support for the government on partial privatisation of the Royal Mail if it offers concessions to Labour backbenchers, the party has warned.

Lord Hunt of Wirral, shadow business minister, told Lord Mandelson: “The Conservative party position could not be clearer. U-turn if you want to; the Conservative party on this issue is not for turning.”

The government finds itself in an unenviable position of its own making on the issue of the postal service, with Lord Mandelson’s push for part-privatisation alienating already rebellious left-wing backbenchers and unions.

There is a strong chance it will only be able to get its plans through with the support of the Conservatives, further undermining Gordon Brown’s authority.

Also, 150 Labour MPs have already signed a motion opposing the move.

But government officials insist the only way to secure Royal Mail’s future is to sell 30% of it to Dutch firm TNT, and CVC Capital, a private equity group.

But Labour faces problems beyond those stoked up by its own backbenches, with TNT understood to be offering far less than the £3bn the government had hoped for.

“You must not once again be bullied into half-hearted reforms that will fail to deliver,” Lord Hunt added.