Labour 'rushing' Royal Mail legislation

Published on Saturday 23 May 2009 14:12

THE Communication Workers Union has accused the government of playing "political football" with the Postal Services Bill, which sets out plans to part-privatise the Royal Mail.

The union is concerned that Business Secretary Lord Mandelson will try to rush a vote on the bill in the House of Commons before the European elections in an effort to tame a rebellion from Labour backbenchers.

Unions were surprised to learn that the bill received its first reading in the House of Commons on Thursday, sparking fears that the second reading will be held before 4 June.

They say this will not only limit the time for debate but could force many Labour backbenchers who are staunchly opposed to privatisation to side with the government out of fear of making the party appear fractured before voters go to the ballot box.

Sian Jones, spokeswoman for the CWU, said: "While politics is and always will be full of games, the future of Royal Mail is too important to gamble away. It is a huge public asset, not just a political football."

The CWU wants a full Commons debate on the bill, which will pave the way for a private company, such as Dutch giant TNT Post, to take a stake of up to 49 per cent in the service.

So far, over 140 Labour MPs have signed an early day motion opposing the move, which they say breaks a manifesto pledge to keep the Royal Mail in public hands. But the government argues that external capital is needed to modernise the service, the least profitable in western Europe.

TNT Post is understood to be the lead bidder for the stake.