This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7916478.stm

The article has changed 7 times. There is an RSS feed of changes available.

Version 5 Version 6
PM: Royal Mail needs private cash PM: Royal Mail needs private cash
(about 2 hours later)
The prime minister has defended the government's plan to sell off 30% of Royal Mail, saying it is the only way to safeguard the service.The prime minister has defended the government's plan to sell off 30% of Royal Mail, saying it is the only way to safeguard the service.
Gordon Brown told Labour's policy forum the service's huge pension deficit made outside investment imperative.Gordon Brown told Labour's policy forum the service's huge pension deficit made outside investment imperative.
On Thursday, Business Secretary Lord Mandelson said the plan would ensure post was delivered to every UK home. Union leaders have strongly criticised the move, but Business Secretary Lord Mandelson accused them of using "scare tactics" which could threaten jobs.
Mr Brown was booed and jeered by a group of protesters as he arrived in Bristol to give the keynote speech. He insisted the government would not back down on the sell-off plan.
The prime minister told the forum: "I do say to you that guaranteeing a £25bn pension fund, spending £1.5bn on the Post Office network, maintaining a universal service obligation can be achieved if we make the investment that is necessary. Mr Brown was booed by protesters as he arrived in Bristol for the forum.
"And that's what's behind our proposals to get someone to help us invest... I know this is difficult but we will continue to talk to address the concerns that people have." In his keynote speech, the prime minister said: "I do say to you that guaranteeing a £25bn pension fund, spending £1.5bn on the Post Office network, maintaining a universal service obligation can be achieved if we make the investment that is necessary.
The Royal Bank of Scotland is on the verge of being nationalised and we've got the situation where they are suggesting Royal Mail should be privatised and flogged to a foreign multinational Billy Hayes Communication Workers Union "And that's what's behind our proposals to get someone to help us invest... I know this is difficult but we will continue to talk to address the concerns that people have." The Royal Bank of Scotland is on the verge of being nationalised and we've got the situation where they are suggesting Royal Mail should be privatised and flogged to a foreign multinational Billy Hayes Communication Workers Union
Mr Brown described Royal Mail as "part of the fabric of our country", but said it was losing in the region of 7-8% per year due to new digital technology and faced a constant race to keep the big customers that use Royal Mail services.Mr Brown described Royal Mail as "part of the fabric of our country", but said it was losing in the region of 7-8% per year due to new digital technology and faced a constant race to keep the big customers that use Royal Mail services.
But Billy Hayes, general secretary of the Communication Workers Union (CWU), said the government plan would "nationalise the pension fund and privatise the profit".But Billy Hayes, general secretary of the Communication Workers Union (CWU), said the government plan would "nationalise the pension fund and privatise the profit".
He told Sky News: "The government seems to have £1.3tn to sort out the banks in this country.He told Sky News: "The government seems to have £1.3tn to sort out the banks in this country.
"We have got a situation where The Royal Bank of Scotland is on the verge of being nationalised and we've got the situation where they are suggesting Royal Mail should be privatised and flogged to a foreign multinational."We have got a situation where The Royal Bank of Scotland is on the verge of being nationalised and we've got the situation where they are suggesting Royal Mail should be privatised and flogged to a foreign multinational.
'No democratic mandate'
"I don't want to see Mrs Thatcher's ideas, Conservative ideas, being introduced by a Labour government. Let's be clear: 25%, 30%, Peter Mandelson has talked about 49% owned by a foreign company."I don't want to see Mrs Thatcher's ideas, Conservative ideas, being introduced by a Labour government. Let's be clear: 25%, 30%, Peter Mandelson has talked about 49% owned by a foreign company.
"That's not what people in the Labour Party want, that's not what people in the country want - they want to see a modern Royal Mail.""That's not what people in the Labour Party want, that's not what people in the country want - they want to see a modern Royal Mail."
And Paul Kenny, general secretary of the GMB union, said: "All parts of the Labour Party, from Tony Blair, the Parliamentary Labour Party, constituents and unions, agreed in 2004 that the Royal Mail would continue to belong to the people, and this pledge was included in the election manifesto put before the public in 2005. And Paul Kenny, general secretary of the GMB union, said the Labour Party had agreed in 2004 that the Royal Mail "would continue to belong to the people".
"[Business Secretary] Lord Mandelson has no democratic mandate whatsoever to change this undertaking. What he is doing is highly undemocratic and brings politics into disrepute." "Lord Mandelson has no democratic mandate whatsoever to change this undertaking," he said. "What he is doing is highly undemocratic and brings politics into disrepute." It's important that debate is based on fact rather than exaggeration and dogma Ben BradshawMinister of State for Health
It's important that debate is based on fact rather than exaggeration and dogma Ben BradshawMinister of State for Health 'Danger'
But Health Minister Ben Bradshaw said it was a "misconception" that Royal Mail was about to be privatised. In an interview with the Observer newspaper, Lord Mandelson accused union leaders of fighting an "ideological" battle that threatened the future of postal workers.
He said: "I heard Billy Hayes on the radio this morning saying that we were going to privatise the Royal Mail and sell it off to a foreign-owned multinational company. "I think a lot of the workforce of the Royal Mail won't be thinking of the politics of this, but about their pension and about their job security," he said.
"Look, it's important we have a sensible debate on the Royal Mail and particularly important we have a debate within the Labour movement and with our trade union colleagues... But it's important that debate is based on fact rather than exaggeration and dogma." "Both are in danger if we do not sort out the finances of the Royal Mail."
He said the government was committed to keeping Royal Mail in the public sector, but he said without some private investment there would be "continued long-term decline" and even full privatisation by a future government. Lord Mandelson also warned Labour MPs that they must not "duck difficult questions and choices".
The key government proposals include:
    class="bulletList">
  • Inviting private firms to form partnerships with Royal Mail, including taking up to a 30% stake in its parcels and letters business
  • Transferring responsibility for the pension fund, with its £6bn deficit, to taxpayers
  • Transferring regulation of the service from Postcomm to Ofcom
  • A new fund to protect the universal postal service, which may be at risk from private competition in the future
  • Excluding the post office network from the changes
 "Some in the party may be weary of taking decisions, but that simply signals that we're ready for a rest, inviting electoral defeat," he said.
Earlier, Health Minister Ben Bradshaw said it was a "misconception" that Royal Mail was about to be privatised.
He said: "Look, it's important we have a sensible debate on the Royal Mail... but it's important that debate is based on fact rather than exaggeration and dogma."
He said the government was committed to keeping Royal Mail in the public sector, but without some private investment there would be "continued long-term decline" and even full privatisation by a future government.
The key government proposals include:
  • Inviting private firms to form partnerships with Royal Mail, including taking up to a 30% stake in its parcels and letters business
  • Transferring responsibility for the pension fund, with its £6bn deficit, to taxpayers
  • Transferring regulation of the service from Postcomm to Ofcom
  • A new fund to protect the universal postal service, which may be at risk from private competition in the future
  • Excluding the post office network from the changes
The government says it aims to sell off shares in the service by summer 2009 - but it will need EU clearance first and primary legislation will have to be passed in Parliament.The government says it aims to sell off shares in the service by summer 2009 - but it will need EU clearance first and primary legislation will have to be passed in Parliament.
The cash received will be pumped into Royal Mail and Post Offices Ltd and may be used to partially offset the cost of taking over Royal Mail pension liabilities.The cash received will be pumped into Royal Mail and Post Offices Ltd and may be used to partially offset the cost of taking over Royal Mail pension liabilities.
More than 130 Labour MPs are expected to vote against the plans when they are debated in the Commons in June, meaning the government may have to rely on the Conservatives and Lib Dems, both of whom back part-privatisation, to get them through.More than 130 Labour MPs are expected to vote against the plans when they are debated in the Commons in June, meaning the government may have to rely on the Conservatives and Lib Dems, both of whom back part-privatisation, to get them through.