Business Secretary Peter Mandelson has issued a stark warning to unions and MPs opposing his Royal Mail sell off plans: Back me or put postal services at risk and let the Tories return to power.
Lord Mandelson attacked the "scare tactics" of critics of moves to bring in a private, probably foreign, investor to shore up the firm while the Government takes on its massive pension deficit.
The issue looks set to land Gordon Brown with his biggest rebellion as Prime Minister, with 137 of his MPs already signed up to a critical motion, including at least seven ministerial aides. He refused to give way on Saturday, robustly defending the plans despite being jeered by postal union protesters as he arrived to speak at a Labour National Policy Forum meeting in Bristol.
Cabinet ministers are also believed to have urged the PM and Lord Mandelson to abandon such an unpopular policy at a time of economic crisis.
But the Trade Secretary, who has already offered concessions such as guaranteeing the universal service in law, told The Observer there was no alternative.
"A number of Labour MPs who do not have an ideological fixation one way or the other nonetheless say to me: 'Why now? Why invite controversy and disunity?'," he said.
"And my answer is that, as the Government, we cannot duck difficult questions and choices. Some in the party may be weary of taking decisions but that simply signals that we're ready for a rest, inviting electoral defeat."
He went on: "They may succeed in defeating the legislation but in the process they'll defeat the turnaround in finances. They will defeat our ability to sustain the universal service. They'll defeat the pension bail-out."
He accused union critics, led by the Communications Workers Union (CWU), of using "scare tactics" such as talking about "privatisation" that failed to represent ordinary postal workers and risked losing the party votes.
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