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| Version 7 | Version 8 |
|---|---|
| 'No political fix' on Royal Mail | 'No political fix' on Royal Mail |
| (about 1 hour later) | |
| A compromise deal suggested as a way to avoid a damaging Labour revolt on Royal Mail is not being considered, Post Office minister Pat McFadden said. | |
| He said proposals to turn it into a not-for-profit company like Network Rail "underestimated" its challenges. | He said proposals to turn it into a not-for-profit company like Network Rail "underestimated" its challenges. |
| That would just be a "political fix" rather than a comprehensive plan to transform Royal Mail, he said. | That would just be a "political fix" rather than a comprehensive plan to transform Royal Mail, he said. |
| The government's plan is opposed by 148 Labour MPs and they might have to rely on Tory MPs in the vote due next month. | The government's plan is opposed by 148 Labour MPs and they might have to rely on Tory MPs in the vote due next month. |
| Post Office minister Mr McFadden told BBC Radio 4's Today programme the government's plan to sell off 30% of Royal Mail was the "most convincing plan that has been put forward so far". | Post Office minister Mr McFadden told BBC Radio 4's Today programme the government's plan to sell off 30% of Royal Mail was the "most convincing plan that has been put forward so far". |
| 'Difficult' choice | 'Difficult' choice |
| He said the not-for-profit proposal - put forward by the left wing campaign group Compass - was "driven by the politics of finding a solution around a political fix, rather than the transformation that's needed". | He said the not-for-profit proposal - put forward by the left wing campaign group Compass - was "driven by the politics of finding a solution around a political fix, rather than the transformation that's needed". |
| The proposal "underestimates the challenges faced by Royal Mail" - such as the rapidly declining volume of letters posted, he said. | The proposal "underestimates the challenges faced by Royal Mail" - such as the rapidly declining volume of letters posted, he said. |
| I would say to Gordon Brown and his government: 'Don't go faint hearted on this. Do what's right, the Conservatives will support you' David Cameron | |
| Mr McFadden said he was happy to talk through other ideas but the government's plan, which followed a 12-month review, offered a "comprehensive" solution to transform Royal Mail and deal with its pension deficit. | Mr McFadden said he was happy to talk through other ideas but the government's plan, which followed a 12-month review, offered a "comprehensive" solution to transform Royal Mail and deal with its pension deficit. |
| "I understand this is difficult for some colleagues. We did not set out to pick a fight with backbenchers or trade unions, but we have a responsibility," he said. | "I understand this is difficult for some colleagues. We did not set out to pick a fight with backbenchers or trade unions, but we have a responsibility," he said. |
| "Simply to kick it into the long grass would not be a responsible thing to do." | "Simply to kick it into the long grass would not be a responsible thing to do." |
| 'Lamentable failure' | |
| The government argues that Royal Mail's multi-billion pound pension deficit and the increasing popularity of e-mail means it cannot survive in its current form and needs outside investment. | The government argues that Royal Mail's multi-billion pound pension deficit and the increasing popularity of e-mail means it cannot survive in its current form and needs outside investment. |
| But its critics, including the Communication Workers' Union, say the government's plan would "nationalise the pension fund and privatise the profit". | But its critics, including the Communication Workers' Union, say the government's plan would "nationalise the pension fund and privatise the profit". |
| The vote on part-privatising the Royal Mail will be a test of Gordon Brown's leadership and authority but not in the way some are suggesting Nick RobinsonBBC political editor class="" href="http://www.bbc.co.uk/blogs/nickrobinson/2009/05/test_of_leaders.html">Read Nick's blog in full | |
| So far 148 Labour MPs have signed a motion signalling they oppose the plan. | So far 148 Labour MPs have signed a motion signalling they oppose the plan. |
| Following a week in which the government lost a Commons vote on the Gurkhas and had to water down its expenses proposals, there was much speculation about Gordon Brown's authority at the weekend. | Following a week in which the government lost a Commons vote on the Gurkhas and had to water down its expenses proposals, there was much speculation about Gordon Brown's authority at the weekend. |
| Cabinet ministers defended Mr Brown amid speculation about his position and Communities Secretary Hazel Blears denied that an article she wrote, complaining of a "lamentable failure" by ministers to get their message across, was not intended as an attack on him. | |
| Compass chairman Neal Lawson told the BBC the group's proposal was "to try and find a way out of this mess". | Compass chairman Neal Lawson told the BBC the group's proposal was "to try and find a way out of this mess". |
| "At the moment they can't get it through Parliament with the support of Labour MPs," he said. | "At the moment they can't get it through Parliament with the support of Labour MPs," he said. |
| "I think they know there's a political problem, given last week, given what is likely to be unsatisfactory results in June." | "I think they know there's a political problem, given last week, given what is likely to be unsatisfactory results in June." |
| Report denied | Report denied |
| The Guardian had reported aides to the prime minister were talking to Labour rebels about the Compass proposal. | |
| A Compass pamphlet published on Tuesday calls on all sides of the Labour party to "step back from the brink" and give support to the idea of keeping Royal Mail in the public sector. | A Compass pamphlet published on Tuesday calls on all sides of the Labour party to "step back from the brink" and give support to the idea of keeping Royal Mail in the public sector. |
| But a Downing Street spokesman said: "The government has said its door is open to those with ideas on the future of the Royal Mail and Neal Lawson has taken advantage of the opportunity to present the proposal he is publishing this week to government officials. | But a Downing Street spokesman said: "The government has said its door is open to those with ideas on the future of the Royal Mail and Neal Lawson has taken advantage of the opportunity to present the proposal he is publishing this week to government officials. |
| "We do not believe his alternative is workable and it is not under consideration." | "We do not believe his alternative is workable and it is not under consideration." |
| Conservative leader David Cameron said his party would support the government's part-privatisation plan, which they believed was "right". | |
| He told the BBC: "I would say to Gordon Brown and his government: 'Don't go faint hearted on this. Do what's right, the Conservatives will support you in the division lobbies to get this through Parliament." | |