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| Version 1 | Version 2 |
|---|---|
| Labour MP quits government post | Labour MP quits government post |
| (10 minutes later) | |
| Labour MP Jim McGovern has resigned from the government in protest at plans to part-privatise Royal Mail. | Labour MP Jim McGovern has resigned from the government in protest at plans to part-privatise Royal Mail. |
| Mr McGovern, MP for Dundee West, had been parliamentary private secretary to business minister Pat McFadden, whose department is overseeing the changes. | Mr McGovern, MP for Dundee West, had been parliamentary private secretary to business minister Pat McFadden, whose department is overseeing the changes. |
| He said it "beggars belief" that Dutch company TNT could be brought in to advise Royal Mail on its operations. | He said it "beggars belief" that Dutch company TNT could be brought in to advise Royal Mail on its operations. |
| Business Secretary Lord Mandelson, who announced the plans, insists Royal Mail will remain "publicly owned". | Business Secretary Lord Mandelson, who announced the plans, insists Royal Mail will remain "publicly owned". |
| 'No alternative' | |
| Mr McGovern, an MP since 2005, is a former glazier and and activist for the GMB trade union. | Mr McGovern, an MP since 2005, is a former glazier and and activist for the GMB trade union. |
| In a statement, he said: "Whilst I have enjoyed my period of a parliamentary private secretary [PPS] and I regret having to resign, I simply feel that under the circumstance there was no alternative." | |
| He also said: "I believe a PPS has to be fully supportive of proposals of the department which they serve. | |
| "In this case I do not support what looks to me like partial privatisation of the Royal Mail." | "In this case I do not support what looks to me like partial privatisation of the Royal Mail." |
| A number of backbench Labour MPs have attacked the government's move to inject private capital into the Royal Mail and have pledged to fight the plan. | A number of backbench Labour MPs have attacked the government's move to inject private capital into the Royal Mail and have pledged to fight the plan. |
| 'Untenable' | |
| Mr McGovern said: "In his statement Pat McFadden said he welcomed an expression of interest from the Dutch postal company TNT, for me it simply beggars belief that we would employ the services of a company from abroad to tell the Royal Mail in this country where they are going wrong." | Mr McGovern said: "In his statement Pat McFadden said he welcomed an expression of interest from the Dutch postal company TNT, for me it simply beggars belief that we would employ the services of a company from abroad to tell the Royal Mail in this country where they are going wrong." |
| On Tuesday, the government responded to The Hooper report into the Royal Mail, which describes it as "untenable" in its current state. | |
| It recommends the organisation should enter into a strategic partnership with one or more private sector partners. | |
| It also says the "pressure that the pension deficit exerts on the Royal Mail must be eased". | |
| The deficit was £3.4bn in 2006, but is widely thought to have doubled since then. | |
| Lord Mandelson said the government agreed with the recommendation it should take over much of the responsibility for cutting this. | |
| The Conservatives welcomed the recommended part-privatisation of the Royal Mail, calling it a "step in the right direction". | |
| However, shadow business secretary Alan Duncan accused ministers of "raiding" the pension fund to "bail out government borrowing". |