From The Sunday Times December 28, 2008
by Jonathan Oliver, Political Editor

Lord Mandelson is preparing to make concessions over the part-privatisation of Royal Mail after warnings that up to 100 Labour backbenchers will rebel against the government over its plans.

The business secretary is expected to offer a statutory guarantee that no more than about a third of the postal service will be sold to the private sector.

Labour rebels have been concerned that Mandelson’s plan, rushed out just before parliament’s Christmas break, is a “slippery slope” towards full-scale privatisation.

However, last night a senior government source said Mandelson was ready to give ground to the rebels: “The potential for rebellion is huge. There need to be clear reassurances that we have no intention of pushing further.”

Under Mandelson’s scheme, between 25% and 33% ( *For Now just watch this change when things are quieter) of the postal service will go to a foreign buyer. The government would take on responsibility for Royal Mail’s £7 billion pension deficit, making the business more attractive to a potential private investor.

Mandelson believes the injection of private sector capital and management know-how is essential. However, Labour rebels are concerned that the plan breaches Labour’s manifesto commitment not to privatise the service.

Writing in The Sunday Times, Neal Lawson, chairman of Compass, the centre-left think tank, said the party’s unease was shared by senior ministers.

“There was known to be disquiet all around the table when the decision was debated at the last cabinet meeting of the year,” he said. “At least 100 Labour MPs will mobilise against any form of Post Office privatisation.”

The rebels also want private companies using the Royal Mail network to pay higher charges. They claim the access charge is too low, meaning the government is effectively subsidising the foreign-owned delivery companies that “piggy back” on Royal Mail.

In a show of strength, the rebels are expected to table a Commons motion when parliament returns in the new year.

Jim McGovern became the first member of the government to quit over the issue when he resigned last week as parliamentary private secretary to Pat McFadden, the postal affairs minister. The Sunday Times has learnt that other government aides are considering their position.

John Grogan, MP for Selby and one of the rebel leaders, accused the government of betrayal. “A promise is a promise,” he said. “Pat McFadden signed off a policy of a wholly publicly owned Royal Mail just three months ago. There is an alternative public investment programme, which the unions are willing to implement.”

Gordon Brown has a majority of 63, so only 32 Labour MPs need to vote with the opposition for the government to lose. Labour whips believe about two dozen backbenchers would vote against any involvement of the private sector, but more moderate rebels can be won round.

The Conservatives say they support private sector investment but believe the commitment on pension liabilities is “a mortgage on future generations”.

( * My Comments )

Extracts from BBC NEWS Friday, 18 February, 2005, 00:01 GMT

also see (SEE 16 December 2008)

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Royal Mail loses postal monopoly

The Royal Mail’s 350-year monopoly is to end at the start of 2006, 15 months earlier than previously planned.

The UK’s postal service market will be fully liberalised from 1 January 2006, regulator Postcomm announced, following three months of consultation.

From that date, any licensed operator will be able to deliver mail to business and residential customers.
Royal Mail, which controls 99% of the market, welcomed the news but the main postal union said it was “ill-advised”.

The Communication Workers Union (CWU) warned the decision will place “the country’s cherished universal service in jeopardy”.

The CWU also criticised what it said was a “competition at all costs” ethos which it says will put the Post Office at a serious competitive disadvantage to its European rivals.

They really need-n’t have worried as it looks like (16 December 2008) The Prince of Darkness has agreed to sell it, or part of it off to the Europeans. H’mm wonder who and how long someone has been working on this behind the scenes.
Someone must have been floating this in the European Market place, wonder who…….

(SEE 16 December 2008)

My personal view is “If its that bad WHY DOES SOMEONE WANT TO BUY IT ” nothing to do with bad Management then !!!!

However, the Royal Mail and consumer watchdog Postwatch have welcomed the decision (Just a minute aren’t Postwatch supposed to look after The Royal Mail for US – or perhaps not look who controls them BERR its the Prince of Darkness again).

“We’re ready,” said Royal Mail chief executive Adam Crozier.

“We recognise that the regulator is getting on with his job, and welcome faster competition as long as it comes without unfair restrictions on Royal Mail.”

“Royal Mail must have the freedom and flexibility to set the right prices, based on real costs,” Mr Crozier added.

“If that happens, I think the new competitive environment will succeed. Competitors are already targeting profitable business mail. We need to compete with them on price as well as service if we are to keep the universal service in business.”

In the new market, Royal Mail will still be required to provide a universal postal service for first and second class mail of one delivery and one collection each working day at a uniform price throughout the UK.

‘More choice’

Consumer body Postwatch chairman Peter Carr welcomed the announcement.

He said: “Ultimately this will lead to more choice, and hopefully a better service.”

However, he said there were still issues to be addressed, such as cost of access to the Royal Mail “pipeline” for letters.

Until now, competition in the £4.5bn market has been restricted to 30% of the value of the letters market and to companies handling bulk mail in batches of 4000 letters or more.

Full market opening means that licensed operators can collect and deliver any mail, from single letters to bulk mailings.

They can set up collection boxes, provide collections and deliveries between businesses, offer tracked mail services or mail deliveries at a guaranteed time.

Operator codes

Postcomm will shortly publish arrangements for the new multi-operator market.

These will include a code of practice to ensure mail companies co-operate on issues such as the forwarding of mail and handling mail that is returned to sender and a separate code to safeguard the integrity of the mail.

At present, Royal Mail alone is exempt from VAT, which means it has a significant price advantage over rival firms, and Postcomm said “competition issues” would be addressed.

But the CWU union fears the change is too much too soon.

It says the regulator has moved in a way that is “completely out of step with the carefully managed approach” set out in European legislation.

“In so doing, Postcomm has placed significant extra pressures on the Royal Mail Group at a time when it is undergoing far-reaching internal and external changes,” said CWU deputy general secretary Dave Ward.

“The upshot will be to place very real pressures on Royal Mail’s ability to meet its universal service obligations.”

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4274335.stm

In November 2007, the Daily Telegraph reported[5] that he (Mr Crozier) had received a 26% pay increase in base pay, taking out £1,256,000 in 2007.

His achievements in this year included
Shrinking the workforce by 45,000.
Closing 4,600 post offices.
With another 2,500 to follow.
The goal of this reduction in workforce and in retail outlets was to increase profitability of the corporation.
Which had made a profit of £537m in 2004/5.
Dropping to around £300 million in 2005/6.
Dropping to £233 million in 2006/7.
To the point where the corporation was running a £10 million/annum trading deficit in 2007).

Good record – must be due a knighthood (Prediction)

Constituency referendum results 88% want a referendum

Despite headlines like the above Brown still refused the British Citizens the right to vote on this important issue – even though the promises was part of the labour parties election manifesto – again a clear lie from our leaders………..

April 14 2005 – Election Round Up Day 9 – The New Labour Manifesto

Posted April 14th, 2005 by ringverse

“Chapter 7 International policy

We will secure Britain’s place in the EU. We will always uphold the rule of international law.

We will put [the constitution] to the British people in a referendum and campaign whole-heartedly for a yes vote to keep Britain a leading nation in Europe.”

I believe that Brown and others have not allowed this promised vote to take place simply because of the obvious “NO” result.

My prediction is that it’s all been a planned (Jobs for the Boys) protection ploy to keep the pathway clear for guaranteed positions on the EU gravy train.

Among no doubt at least half a dozen other labour politician’s will be Tony Blair and Gordon Brown, lets face it the ground has already been well and truly prepared by one of their best friends The Rt Hon. Peter Benjamin Mandelson……….

Waging war against plastic bags

EVEN the Prime Minister has a view on a tax or ban on plastic shopping bags. And even more stores begin charging for them.

My simple answer is make the manufacturers build in a shelf life of 12 Months after which the bag starts to disintegrate – or is this TO SIMPLE.

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