Peter Hain Condemns Royal Mail Privatisation Plans

Writing in Monday's Guardian, Peter Hain MP and former work and pensions secretary, argued agains the plans to privatise Royal Mail and commented on the pension fund defecit:

"A colossal pension fund deficit of more than £8bn, costing about £600m each year to subsidise, is crippling the business and postal workers are desperately insecure about their retirement. Management has also been poor and industrial relations pretty awful. But the government's initial reform proposals beg many more questions than they answer. Will they legislate for a level playing field between Royal Mail and private competitors, instead of the lopsided one now?

How exactly can Labour's manifesto commitment to a "publicly owned" postal service (repeated by ministers) be reconciled with a private company partner and stakeholder, albeit a minority one? Who wins? The private shareholder or the general public? And surely the minority private stake proposed opens the door to a 100% stake in the future?

If the government is to guarantee the pension fund, postal workers will very much welcome that. But surely it would also be a godsend for a new private partner, since the Royal Mail would be profitable without that liability? We must not nationalise the debt and privatise the profit."

You can read his full arguement here

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