Brown faces MPs' revolt on private stake in Royal Mail

Published on Tuesday 13 January 2009 19:08

GORDON Brown today faces the biggest backbench revolt since he became Prime Minister, as 66 Labour MPs prepare to oppose the planned part-privatisation of the Royal Mail.

Former ministers Malcolm Wicks, Frank Dobson and Michael Meacher are among those who have signed an early day motion (EDM) warning that selling a minority stake in the postal group would risk fracturing "one of Britain's greatest public services".

The motion, appearing on the Commons order paper for the first time today, notes that Labour's annual conference last year supported a vision of a wholly publicly-owned Royal Mail Group.

The motion is tabled by Geraldine Smith, MP for Morecambe and Lunesdale, who said: "Royal Mail is one of the country's oldest and most respected public bodies. In recent years it has been exposed to ever-increasing, unfair competition by the regulator. Part-privatisation is not the answer."

The Selby MP John Grogan, who signed the motion, said: "In February 2007 the government agreed a 1.2 billion loan to modernise the sorting offices.

"It is surprising that two years later only half of this money has been spent. 600 million of government money remains available to fund modernisation – there is no need for private capital."

Billy Hayes, general secretary of the Communication Workers Union, said: "The Royal Mail is a successful and vital public service which does not need private capital to ensure modernisation.

"We strongly welcome this Early Day Motion which reflects the opinions of millions of ordinary people. The public is fed-up with privatisation and has suffered enough from flogging off public assets.

"The Labour Party has a clear commitment to a wholly publicly owned Royal Mail. This EDM is further proof of the commitment of Labour MPs to a modern public postal service."

The biggest revolt so far faced by Prime Minister Brown involved 43 Labour rebels who wanted to make it easier for unions to comply with the law on industrial action.

The Dundee West MP Jim McGovern, a ministerial aide in Lord Mandelson's Business Department, resigned last month in protest at the prospect of a foreign firm taking a stake in the Royal Mail.