Prezza adds voice to Post Office revolt
LABOUR was facing a major split over its plans to sell off the Royal Mail last night after John Prescott joined a mounting rebellion within the parliamentary party.
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Mr Prescott, a staunch party loyalist as Deputy Prime Minister, has indicated he will not support the controversial plans unveiled by Lord Mandelson last month. [>
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In a surprise intervention, he said the Mail and Post Office should remain in public hands. [>
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He suggested Royal Mail was being punished because of problems in the wider economy, adding: “Royal Mail and the Post Office face further difficulties, some due to the reluctance to meet the challenges of change. But they still benefit from remaining in the people’s hands. [>
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“It wasn’t the Post Office, the Co-Op or the mutuals that had to be bailed out by the taxpayer to the tune of £37billion. [>
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“It was the private banks who, thanks to their inherent greed and desire for excessive profits and bonuses, brought the world’s economy to its knees.” [>
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Mr Prescott said the Government should look instead at plans being developed by parts of the Labour Left to turn the Post Office into a new “people’s bank”. For this to happen, it must stay publicly owned, he said. [>
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Critics of the Government’s plans claim more than 100 Labour MPs are ready to rebel when the plan to sell 30 per cent of Royal Mail is brought to Parliament. [>
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Such a revolt would force Gordon Brown to rely on Conservative support. [>
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Ministers claim the sell-off will bring in cash to modernise the service. Dutch mail firm TNT is believed favourite to snap up a stake. [>
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