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| Row grows over Royal Mail plans | Row grows over Royal Mail plans |
| (20 minutes later) | |
| Postal workers are preparing to protest in Westminster as the row grows over plans to sell off 30% of Royal Mail. | Postal workers are preparing to protest in Westminster as the row grows over plans to sell off 30% of Royal Mail. |
| Ministers say the company cannot survive as it is and needs to be part-privatised to pay for modernisation. | Ministers say the company cannot survive as it is and needs to be part-privatised to pay for modernisation. |
| But 122 Labour MPs oppose it, fearing full privatisation and job losses and argue Labour made an election pledge to keep the Royal Mail in public hands. | But 122 Labour MPs oppose it, fearing full privatisation and job losses and argue Labour made an election pledge to keep the Royal Mail in public hands. |
| Meanwhile its pension fund trustees are warning of "devastating consequences" for the fund, without the sale. | Meanwhile its pension fund trustees are warning of "devastating consequences" for the fund, without the sale. |
| In a letter published by the government, Jane Newell, the chair of trustees of Royal Mail's pension scheme warns the deficit is "significantly larger" than the £5.9bn in the Hooper Review - which called for a minority stake in the business to be sold off. | In a letter published by the government, Jane Newell, the chair of trustees of Royal Mail's pension scheme warns the deficit is "significantly larger" than the £5.9bn in the Hooper Review - which called for a minority stake in the business to be sold off. |
| 'Scare' claim | 'Scare' claim |
| She said its deficit was likely to rise well in excess of its current £5.9bn should the sale not happen, with potentially "devastating consequences" for the business. | She said its deficit was likely to rise well in excess of its current £5.9bn should the sale not happen, with potentially "devastating consequences" for the business. |
| The government has proposed taking over responsibility for the pension scheme as part of the proposed sell-off package. | The government has proposed taking over responsibility for the pension scheme as part of the proposed sell-off package. |
| But the Communication Workers' Union said the publication of the letter was an effort to "scare" MPs into voting with the government. | But the Communication Workers' Union said the publication of the letter was an effort to "scare" MPs into voting with the government. |
| We could be faced with a situation where the Royal Bank of Scotland is nationalised and the Royal Mail is privatised Billy HayesCommunication Workers' Union | We could be faced with a situation where the Royal Bank of Scotland is nationalised and the Royal Mail is privatised Billy HayesCommunication Workers' Union |
| Its leader Billy Hayes told Sky News it was a "scandal" that the chairman of the pension trustees was "interfering" in politics. | Its leader Billy Hayes told Sky News it was a "scandal" that the chairman of the pension trustees was "interfering" in politics. |
| "The government is saying they want a foreign company to run the post office, which is ridiculous. We could be faced with a situation where the Royal Bank of Scotland is nationalised and the Royal Mail is privatised." | "The government is saying they want a foreign company to run the post office, which is ridiculous. We could be faced with a situation where the Royal Bank of Scotland is nationalised and the Royal Mail is privatised." |
| Gordon Brown may face the largest backbench rebellion of his premiership on the bill, due to be introduced to Parliament on Thursday, and may have to rely on Conservative and Liberal Democrat votes to get it through. | Gordon Brown may face the largest backbench rebellion of his premiership on the bill, due to be introduced to Parliament on Thursday, and may have to rely on Conservative and Liberal Democrat votes to get it through. |
| Rebels warned | Rebels warned |
| The government says the Royal Mail cannot survive in its current form, due to severe financial constraints and falling demand for sending letters, and needed fresh investment in technology to prosper. | The government says the Royal Mail cannot survive in its current form, due to severe financial constraints and falling demand for sending letters, and needed fresh investment in technology to prosper. |
| But they deny the plan amounts to a sell-off of the business, saying it would be a "partnership" which maintains Labour's manifesto commitment to keep the Royal Mail in public ownership. | But they deny the plan amounts to a sell-off of the business, saying it would be a "partnership" which maintains Labour's manifesto commitment to keep the Royal Mail in public ownership. |
| Unions will stage a mass protest on Tuesday against the plans. They argue the Royal Mail made a healthy profit of £255m in the last nine months of 2008 and can thrive in its current form. | Unions will stage a mass protest on Tuesday against the plans. They argue the Royal Mail made a healthy profit of £255m in the last nine months of 2008 and can thrive in its current form. |
| Business Secretary Lord Mandelson speaking about the plans in January | Business Secretary Lord Mandelson speaking about the plans in January |
| They are worried about possible job losses and the impact of the private sector involvement on the Royal Mail's "universal service" obligation to deliver mail to every UK home. | They are worried about possible job losses and the impact of the private sector involvement on the Royal Mail's "universal service" obligation to deliver mail to every UK home. |
| Labour MP Michael Connarty described the plan as a "political suicide". Geraldine Smith, who has tabled a Commons motion opposing the scheme, said that as the government had agreed to take on the pension deficit there was no need to privatise the service. | Labour MP Michael Connarty described the plan as a "political suicide". Geraldine Smith, who has tabled a Commons motion opposing the scheme, said that as the government had agreed to take on the pension deficit there was no need to privatise the service. |
| "Why keep the liability and give away the most profitable parts of the business to a foreign competitor? It seems crazy," she told the BBC. | "Why keep the liability and give away the most profitable parts of the business to a foreign competitor? It seems crazy," she told the BBC. |
| 'No privatisation' | 'No privatisation' |
| Former cabinet minister Peter Hain has also signed a motion opposing the move. He told BBC Radio 4's Today programme he was worried the plan could "open the door to full-scale privatisation in the future". | Former cabinet minister Peter Hain has also signed a motion opposing the move. He told BBC Radio 4's Today programme he was worried the plan could "open the door to full-scale privatisation in the future". |
| Ministers have given themselves a couple of months to try to win the argument with almost 140 rebel Labour MPs Nick Robinson BBC's Political correspondent class="" href="http://www.bbc.co.uk/blogs/nickrobinson/2009/02/promising_posti.html">Read Nick's thoughts in full Postal Affairs Minister Pat McFadden told the BBC the pension fund deficit was 75 times the company's profit and Royal Mail could not afford to pay down the deficit and fund the modernisation needed - such as automating services. | |
| "We will not privatise the company but what we want is to bring in the experience to drive forward that change precisely so we can continue the universal service for the future," he said. | "We will not privatise the company but what we want is to bring in the experience to drive forward that change precisely so we can continue the universal service for the future," he said. |
| Ministers have also called for a "fresh start" in industrial relations after 2007's damaging strike which cost it millions of pounds. | Ministers have also called for a "fresh start" in industrial relations after 2007's damaging strike which cost it millions of pounds. |
| Dutch postal operator TNT is the only firm, so far, to have publicly expressed interest in buying a chunk of Royal Mail. | Dutch postal operator TNT is the only firm, so far, to have publicly expressed interest in buying a chunk of Royal Mail. |