Magazine article Public Finance

MPs Could Force Rethink on Royal Mail

Magazine article Public Finance

MPs Could Force Rethink on Royal Mail

Article excerpt

The government will be forced to change its position on the privatisation of Royal Mail, the author of a report at the centre of a Labour Party row has predicted.

The controversial part-privatisation plans are outlined in the Postal Services Bill, now making its way through the House of Lords. The legislation is expected to reveal deep divisions in the Labour Party when it goes to the Commons next month, as more than 40% of Labour MPs have stated publicly their opposition to the sell-off.

Postal affairs minister Pat McFadden on May 5 rejected suggestions from the think-tank Compass that the Royal Mail should be re-established as a not-forprofit company, similar to Network Rail - which was set up after the collapse of privatised rail firm Railtrack.

McFadden said the Compass report did 'not seem to be driven by evidence, but by an ideological imperative to identify any solution that avoids a partner taking a stake of even 1% in Royal Mail'. The government would continue to seek private sector partners to buy a stake in the Royal Mail, he added.

But report author and Compass chair Neal Lawson told Public Finance. 'Governments always do U-turns at the last minute wh en they absolutely have to. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.