Monday, June 08, 2009

Royal Mail privatisation plans

MPs are increasingly confident that Mr Brown, weakened by public attacks and Cabinet resignations, will be forced to dilute or even shelve the sell-off plan, which dominates a controversial agenda of proposals. Michael Clapham, a Labour member of the Commons business committee, said: “If he insists on pressing on with it as it is, the whole thing could start unravelling again for [Gordon] Brown.” The partial privatisation is a personal project of Lord Mandelson, the Business Secretary, who says it is the only way to keep the postal service viable. Yesterday, he was unable to say when the Bill paving the way for the sale will be put to MPs. Asked by Andrew Marr on BBC One yesterday when the Bill will come to the Commons, Lord Mandelson snapped: “In due course. Next?” Labour whips have warned Mr Brown that he would face a potentially fatal uprising from backbenchers if he pressed ahead.A total of 149 of the 350 Labour MPs have now signed a Commons motion condemning the plan, enough to force Mr Brown to depend on Tory votes to push it through. Significantly, the motion was tabled by Geraldine Smith, a Labour backbencher who has been one of Mr Brown’s most vocal defenders during his current crisis. Yesterday she said: “I think Gordon Brown should remain leader of the Labour Party but I will vote against the Government if he pushes ahead with the part-privatisation.” Mr Brown could also clash with his party over welfare reforms. Despite the hopes of some Left-wing MPs, Yvette Cooper, the new Work And Pensions Secretary, is likely to press ahead with plans to make some welfare claimants work for their benefits money. Aware of the future risks to his position, Mr Brown is working on several measures to rebuild support among Labour backbenchers. A formal inquiry into the decision to invade Iraq in 2003, a key demand of many backbenchers, is likely to be announced within weeks. Privately, some ministers are also expecting the national identity card scheme to be revised or even dropped and Jack Straw, the Justice Secretary, is expected to publish a Constitutional Renewal Bill, revived in the wake of The Daily Telegraph’s disclosures over MPs’ expenses before the summer recess. The Bill will outline parliamentary reforms but stop short of suggesting wholesale changes to the electoral system. Despite its limitations, Mr Brown will attempt to present it as a substantive answer to public anger. Þ Members of the Communication Workers Union will today vote on whether to split from the Labour Party in protest at the Royal Mail plans. The union gives about £1 million to Labour every year.


source: /www.telegraph.co.uk/news/newstopics/politics/5469601/Gordon-Brown-to-face-new-threat-over-Royal-Mail-privatisation-plans.html

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