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Royal Mail sell-off plan slated by rightwing thinktank and Labour MP Royal Mail sell-off plan slated by rightwing thinktank and Labour MP
(4 months later)
Labour has attacked Nick Clegg for being "worse than Thatcher" for supporting the sell-off of Royal Mail.Labour has attacked Nick Clegg for being "worse than Thatcher" for supporting the sell-off of Royal Mail.
Ian Murray, shadow minister for postal affairs, said Clegg's backing for privatisation of the postal service "confirmed what the public knew all along –he's worse than Thatcher who, even as the most zealous of privatisation proponents, couldn't bring herself to privatise the Queen's head".Ian Murray, shadow minister for postal affairs, said Clegg's backing for privatisation of the postal service "confirmed what the public knew all along –he's worse than Thatcher who, even as the most zealous of privatisation proponents, couldn't bring herself to privatise the Queen's head".
Murray, MP for Edinburgh South, was speaking after the deputy prime minister backed privatisation plans as he stood in for David Cameron at prime minister's questions on Wednesday.Murray, MP for Edinburgh South, was speaking after the deputy prime minister backed privatisation plans as he stood in for David Cameron at prime minister's questions on Wednesday.
Clegg said the UK should welcome the innovative way the coalition had proposed to "give workers in Royal Mail a stake in the company". He added: "[Labour] used to believe in worker ownership, but, as on so many other issues, it is still a blank piece of paper when it comes to public policy of any significance. The government are moving forward; the opposition are standing still."Clegg said the UK should welcome the innovative way the coalition had proposed to "give workers in Royal Mail a stake in the company". He added: "[Labour] used to believe in worker ownership, but, as on so many other issues, it is still a blank piece of paper when it comes to public policy of any significance. The government are moving forward; the opposition are standing still."
Murray said the £3bn Royal Mail privatisation plan, which will allow postal workers shares worth 10% of the company, was "a blatant attempt to spare the blushes of the chancellor and the prime minister and their failing economic plan that will borrow £245bn more than anticipated".Murray said the £3bn Royal Mail privatisation plan, which will allow postal workers shares worth 10% of the company, was "a blatant attempt to spare the blushes of the chancellor and the prime minister and their failing economic plan that will borrow £245bn more than anticipated".
Michael Fallon, the business minister and Conservative MP for Sevenoaks, has warned that if the postal workers' union continues to fight Royal Mail's flotation on the London Stock Exchange the coalition will sell the company to sovereign wealth funds or other foreign buyers.Michael Fallon, the business minister and Conservative MP for Sevenoaks, has warned that if the postal workers' union continues to fight Royal Mail's flotation on the London Stock Exchange the coalition will sell the company to sovereign wealth funds or other foreign buyers.
The sell-off, which the government hopes to conclude within a year, has already been labelled "poisonous" by the leading rightwing thinktank the Bow Group. In a letter to every Tory MP, Ben Harris-Quinney, chairman of the Bow Group, said the government should call off the sale. It would be deeply unpopular with voters, he said.The sell-off, which the government hopes to conclude within a year, has already been labelled "poisonous" by the leading rightwing thinktank the Bow Group. In a letter to every Tory MP, Ben Harris-Quinney, chairman of the Bow Group, said the government should call off the sale. It would be deeply unpopular with voters, he said.
Harris-Quinney said that revenue from the sale, which he claimed could be as little as £1bn, was "hardly a sum that can compensate for the political damage it will cause".Harris-Quinney said that revenue from the sale, which he claimed could be as little as £1bn, was "hardly a sum that can compensate for the political damage it will cause".
He added: "Ministers can save themselves a lot of headaches if they argue that taxpayers' interests must come first, and therefore the sale is postponed. Privatisation now, carried out in this manner, is likely to swiftly form a poisonous legacy for this government and a poisonous legacy for the Conservative party."He added: "Ministers can save themselves a lot of headaches if they argue that taxpayers' interests must come first, and therefore the sale is postponed. Privatisation now, carried out in this manner, is likely to swiftly form a poisonous legacy for this government and a poisonous legacy for the Conservative party."
Proposals to privatise Royal Mail were not included in the Tory manifesto before the 2010 general election but did feature in the Liberal Democrats' pre-election pledges. The party proposed that 49% of Royal Mail would be sold to create funds for investment. It promised to split the remaining majority stake between the government and an employee trust.Proposals to privatise Royal Mail were not included in the Tory manifesto before the 2010 general election but did feature in the Liberal Democrats' pre-election pledges. The party proposed that 49% of Royal Mail would be sold to create funds for investment. It promised to split the remaining majority stake between the government and an employee trust.
The sell-off plans were included in the coalition agreement, which pledged to "seek to ensure an injection of private capital into Royal Mail, including opportunities for employee ownership". The plans were enshrined in law in 2011.The sell-off plans were included in the coalition agreement, which pledged to "seek to ensure an injection of private capital into Royal Mail, including opportunities for employee ownership". The plans were enshrined in law in 2011.
Harris-Quinney said the importance of the Royal Mail to rural communities could not be overstated, calling it the "glue that binds our communities together". He added: "This was instinctively recognised by Margaret Thatcher and that is why she shied away from selling Royal Mail."Harris-Quinney said the importance of the Royal Mail to rural communities could not be overstated, calling it the "glue that binds our communities together". He added: "This was instinctively recognised by Margaret Thatcher and that is why she shied away from selling Royal Mail."
He warned that a sale would probably lead to a rise in the price of stamps and hasten the death of the universal service obligation (USO) to deliver mail to villages as well as cities for the same price six days a week. Mario Dunn, director of the Save Our Royal Mail campaign, noted that Clegg did not pledge to maintain the USO beyond 2022, when it is due to be reviewed.He warned that a sale would probably lead to a rise in the price of stamps and hasten the death of the universal service obligation (USO) to deliver mail to villages as well as cities for the same price six days a week. Mario Dunn, director of the Save Our Royal Mail campaign, noted that Clegg did not pledge to maintain the USO beyond 2022, when it is due to be reviewed.
"Unfortunately the assurances from the deputy prime minister are not enough. Royal Mail delivers a six-day service throughout the country and this particularly benefits the elderly, small businesses, and people in rural areas."Unfortunately the assurances from the deputy prime minister are not enough. Royal Mail delivers a six-day service throughout the country and this particularly benefits the elderly, small businesses, and people in rural areas.
"The simple fact is that no buyer will want to maintain those services indefinitely. Nothing the deputy prime minister said today changes the fact that this privatisation is the first major step in the dismantling of a much cherished national service.""The simple fact is that no buyer will want to maintain those services indefinitely. Nothing the deputy prime minister said today changes the fact that this privatisation is the first major step in the dismantling of a much cherished national service."
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