Clarke warns Mandelson has left Royal Mail to "slide into decline"

Ken Clarke has attacked Lord Mandelson’s decision not to go ahead with the planned part-privatisation of Royal Mail.

The Shadow Business Secretary said the Government was “in a state of paralysed indecision on every difficult issue” following Lord Mandelson's announcement of the U-turn.

Ken attacked Lord Mandelson’s handling of the issue, stressing:

“Peter Mandelson said recently that the Government was committed to the policy of part-privatisation and that the Royal Mail was in a crisis.”

“He has frequently said that the status quo is not an option. He is now leaving the Royal Mail to slide into more rapid decline.”

Ken added, “The first reason given for delay was lack of Parliamentary time, which is plainly nonsense. It is now said that market conditions are difficult for a sale. The real reason for delay is that Peter Mandelson cannot persuade his colleagues to back the flagship Bill of his Department.”

SNP COMMENT ON ROYAL MAIL ANNOUNCEMENT

Commenting on confirmation that the UK Government has ditched immediate plans to part-privatise Royal Mail, SNP Postal Affairs spokesperson Mike Weir MP said the proposals should be permanently abandoned.

Mr Weir said:

“Privatisation of Royal Mail should not just be put off for another day, it should be ruled out once and for all.

“By threatening to resuscitate privatisation plans later Lord Mandelson is creating continued uncertainty for Royal Mail workers and customers. The government should focus on ensuring a long term successful future for a public Royal Mail service.

“This humiliating climb-down, hard on the heels of a u-turn on ID cards, shows the UK government is in complete chaos.

“Lord Mandelson can’t even get his story straight on why privatisation was abandoned – first it was because the plans were jostling for space in the legislative agenda, and now it is because the economic conditions are not right.

“The truth is that it was the political conditions that were not right – Lord Mandelson was on a collision course with Labour MPs and unions.

“Royal Mail must remain in public hands and the SNP will continue to fight for the retention of publicly-owned postal services.”