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Labour MP quits government post | Labour MP quits government post |
(about 9 hours 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". |
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. |
'No alternative' | |
In a statement, he said he had enjoyed being PPS but felt he had "no alternative" but to resign. | |
He 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." |
In all conscience yesterday, the statement that was made, I could not support Jim McGovern | |
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. |
Mr McGovern added in his statement that "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". | |
But later he told BBC Radio 4's PM programme he was more concerned about the fact it was a private company, than that it was from abroad. | |
"In my experience when the private sector gets involved in the public sector, it inevitably leads to an erosion of the terms and conditions for the employees." | |
He added: "My understanding of the Labour Party and government manifesto ... is that there was a commitment there to maintaining public ownership of the Royal Mail contradicts that. | |
"In all conscience yesterday, the statement that was made, I could not support." | |
'Not privatisation' | |
But former postal minister Ian McCartney denied there were plans to privatise the Royal Mail. | |
He told the programme: "It's going to be in public hands and will remain in public hands. This is a partnership not a privatisation." | |
He said it would guarantee Royal Mail a "total future in the public sector", give pension protection for current and future pensioners, guarantee investment in new technology and improve relations between employers and staff. | |
On Tuesday, the government responded to The Hooper report into the Royal Mail, which describes it as "untenable" in its current state. | 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 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". | 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. | 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. | 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". | 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". | However, shadow business secretary Alan Duncan accused ministers of "raiding" the pension fund to "bail out government borrowing". |