Lost in the MAIL as Royal Mail plans get the SACK!
Added 02/07/2009Paul Rowen, MP for Rochdale, has welcomed the Government’s decision to scrap plans for part privatisation of Royal Mail. The unelected, Lord Mandelson has announced that the Government plans to abandon its bill to part-privatise Royal mail before the next general election. Lord Mandelson claimed that there were no bidders for the 30% stake being offered in Royal Mail but critics of privatisation have welcomed it as an ideological victory. Paul Rowen MP, who recently urged Prime Minister Gordon Brown against privatisation has urged the Government to adopt the Liberal Democrat policy of Separating the Post Office network from Royal Mail as an independent publicly owned organisation, with its own board of directors, an investment plan for the future, and significant investment to undertake those plans.
Paul Rowen, a Lib Dem Shadow Work and Pension’s Minister said, “Successive governments, Labour and Conservative, have failed to support the Post Office network - allowing thousands of local branches to close - and have failed to equip Royal Mail to compete effectively in a 21st century postal market.
“Only through the hard work of campaigners including Rochdale Lib Dems was Spotland Post Office saved last year. Unfortunately, despite much campaigning, Smithybridge, Caldershore and Buersil offices were lost. Post Office Limited refused to listen to council suggestions that could have saved these branches and the countless jobs they provided.
“Liberal Democrat plans for the separation of Royal Mail and the Post Office would Free Royal Mail from Treasury borrowing controls, so it can invest, raising enough money to keep the network viable. The Government must now turn their attention to the huge problem of the deficit in the Royal Mail pension scheme.”
NOTES
1. Labour’s 2005 manifesto committed them to a publicly-owned Royal Mail.
2. The Bill was strongly opposed by the Communication Workers Union (CWU), the main postal workers’ union, and by a large number of Labour backbenchers. More than 140 Labour MPs signed an early day motion calling for the Royal Mail to remain entirely in public ownership.
3. Royal Mail’s pension fund deficit is currently thought to be around £5.9 billion and growing.