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. (more…)
