Royal Mail part-privatisation on hold
Added: 01/07/2009 Reporter: Peter James
The plans to part-privatise Royal Mail may be delayed until the after the next election, it has been reported.
Business secretary Peter Mandelson is to put off the controversial decision to bring a stakeholder from the private sector in, fearing a backbencher revolt if he does.
A 30 per cent sell-off had been scheduled to go before parliament before MPs went on their summer break, but this has been deemed too risky at this stage.
Speaking to the Financial Times, Lord Mandelson said that the initiative was vital to ensure that Royal Mail remained competitive in the future.
He told the news provider: "We will have a better picture of likely growth rates and whether we have resumed the trend rate of growth, but that will probably be too early for any spending review to take place, and not necessary, because the current round continues until 2011."
Last month Royal Mail was also hit by strike action in London and Scotland over pay and job cuts.
