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17/12/2008
Labour MP Resigns Over Royal Mail Plans
A Labour MP has resigned over Government plans to partly privatise the Royal Mail.
Jim McGovern, MP for Dundee west, has stepped down from his position as parliamentary Private Secretary (PPS) to Business Minister Pat McFadden.
Mr McGovern said: "I believe 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 his statement Pat McFadden said he welcomed an expression of interest from the Dutch postal company TNT."
He added: "For me, it simply beggars belief that he would employ the services of a company from abroad to tell the Royal Mail in this country where they are going wrong."
Business secretary Lord Mandelson told the Lords yesterday that Dutch postal firm TNT is already being considered as a candidate to take up to 30 per cent of Royal Mail.
The government's decision to back a strategic partnership with one or more private sector partners followed the recommendations of an independent review of the Royal Mail by ex-Ofcom deputy chairman Richard Hooper.
Mr Hooper also called for the pressure exerted on the Royal Mail by its pension deficit to be eased and said Ofcom should replace Postcomm as its regulator.
The deficit was £3.4bn, but it is thought to have doubled since then.
Lord Mandelson is due to issue a "full statement of policy" in the New Year.
(JM)
Jim McGovern, MP for Dundee west, has stepped down from his position as parliamentary Private Secretary (PPS) to Business Minister Pat McFadden.
Mr McGovern said: "I believe 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 his statement Pat McFadden said he welcomed an expression of interest from the Dutch postal company TNT."
He added: "For me, it simply beggars belief that he would employ the services of a company from abroad to tell the Royal Mail in this country where they are going wrong."
Business secretary Lord Mandelson told the Lords yesterday that Dutch postal firm TNT is already being considered as a candidate to take up to 30 per cent of Royal Mail.
The government's decision to back a strategic partnership with one or more private sector partners followed the recommendations of an independent review of the Royal Mail by ex-Ofcom deputy chairman Richard Hooper.
Mr Hooper also called for the pressure exerted on the Royal Mail by its pension deficit to be eased and said Ofcom should replace Postcomm as its regulator.
The deficit was £3.4bn, but it is thought to have doubled since then.
Lord Mandelson is due to issue a "full statement of policy" in the New Year.
(JM)
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