Royal Mail could be half privatised
Monday, 2 March 2009 12:00 AM
By politics.co.uk staff
Union activists and opposition parties have reacted furiously to news that government proposals for Royal Mail could eventually leave it open to 49.9 per cent privatisation.
"Lord Mandelson's bill plainly opens the door for full privatisation, and he must be stopped in his tracks," said SNP postal affairs spokesman Mike Weir.
"The scope of the legislation goes far beyond allowing a 30 per cent private stake, and in reality would allow almost 50 per cent of Royal Mail to be sold-off without further legislation.
"The Conservatives will be rubbing their hands while Labour backbenchers and the unions will be absolutely furious."
The plan to part-privatise the ailing postal company comes as it faces increased competition from the internet while the recession has badly affected postal advertising.
The prime minister has backed Lord Mandelson's plans, saying the best way for the postal service to move forward was to look for outside investment.
But with anger over current plans to allow up to 30 per cent of Royal Mail to be sold to foreign companies, Labour whips are nervous that the new developments could help cement a backbench rebellion.
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