UK LibDems back Royal Mail part-privatisation plan
Liberal Democrats today backed plans to part-privatise Royal Mail, in an important victory for new leader Sir Menzies Campbell.
The party conference overwhelmingly endorsed proposals to sell off 49% of Royal Mail to raise money to safeguard the future of post offices.
Sir Menzies’ backing was a highly symbolic nod to the right-wing modernisers of the party who want it to embrace the market.
Similar plans caused a row at last year’s Lib Dem conference between the modernisers and those who want the party to remain a progressive left-of-centre force.
Delegates refused to endorse the plans then, leading to a watered-down version being put before the party’s spring conference in Harrogate today.
The Lib Dem leader yesterday denied it was a “Thatcherite” policy. But as his first initiative as party leader it was a clear marker of the direction in which he will take the party.
A spokesman said: “This was a key issue about whether we want to build a platform for the next General Election rather than cling to policies for presentational reasons.
“This issue has become totemic. It is too much to say it is a Clause Four moment because it is only about one issue. But this is very important.
“It shows we are serious about building a platform for the next election.”
The plans would see Post Office Ltd split from the Royal Mail Group. The Post Office would stay in public control.
The Royal Mail would then go into shared ownership with a 51% majority of shares divided equally between the Government and a trust for staff.
Half of the remaining 49% would be sold directly to staff and small investors and the remaining shares would be offered for sale to the market.
The proceeds of the sale – expected to be up to £2 billion – would be used to safeguard the future of the Post Office network and the universal service obligation which the Lib Dems say are under threat from Labour.
