29 May 2009
By Tash Shifrin
Rebel Labour MPs have warned that it would be a ‘kamikaze move’ for the government to press ahead with controversial plans to part-privatise the Royal Mail, as a Commons debate on the legislation looms.
The Postal Services Bill was given its first reading in the Commons on May 21. This opened the way for the second reading debate, where a major backbench rebellion is expected, to take place at any time from June 1.
So far, 149 Labour MPs – more than 40% of the parliamentary party – have signed an Early Day Motion opposing the sell-off, with the total number of signatories at 181.
Rebel Labour MP John Grogan told Public Finance he had been assured by Number 10 and the whips’ office that the second reading would not take place before the European elections on June 4.
‘I think it would be a kamikaze move for the government and in particular the prime minister to introduce this any time soon. We’re not expected to do the best at the elections,’ he added.
He warned that a government compromise aimed at placating the rebels would risk losing Conservative support for the Bill – and losing the Commons vote. ‘If the government compromises, it would have to compromise big, drop the part-privatisation.’
That would also mean ‘dropping Peter Mandelson’, the business secretary, in the reshuffle expected after the elections, he said.
Communications Workers Union general secretary Billy Hayes said: ‘We’re expecting all 181 MPs to vote against the Bill when it hits the Commons in June.’
‘We hope the government will see sense and amend the Bill. It’s madness to rely on the Tories to get an unpopular Bill through.’
