How Labour could still save the Royal Mail from privatisation

A pledge by Miliband to renationalise the postal service could scare off potential private investors.

It was all quite a shock. On Friday, as the government announced that potential shareholders in the privatised Royal Mail were already lined up, campaigners were pre-occupied with the ballot for an anti-sell off postal workers strike. A strike that will now come after the post has been privatised, if the government has its way.

But there is one last chance to save the post from a privatisation the public do not want. Step forward, Ed Miliband.

In Brighton last week, Labour conference delegates voted unanimously to bring Royal Mail back into public ownership should Labour win the next election. Hurried press briefings that this would not bind the leadership were followed by shadow business secretary Chuka Ummuna yesterday clarifying that such a pledge would be “irresponsible”.

Yet in the past week, the Labour leader has has proved that, occasionally at least, one can govern from opposition. And on this basis, maybe privatisation of the post is not as inevitable as it seems. Miliband’s conference pledge to freeze energy prizes was derided by Tories and pundits as unworkable. But it did much more than bring the issue to the headlines: it led the energy companies themselves to subsequently decide that Miliband, and not David Cameron, was shaping their future. The front page of the NPower website was updated within 24 hours to read: “Why wait for Ed?”, as the power giant offered its customers the chance to set their prices until 2017.

It’s something few opposition leaders have managed – but Ed is no stranger to setting the terms of debate. The scene was set by his early display against News International, when the Labour opposition forced the government to commit to the public, judge-led inquiry that became Leveson. There have since been numerous other areas in which Miliband could have used his acumen and judgment to make the Tories fight on his terms, but instead we have only seen a deafening silence. Labour’s economic arguments still centre around “getting the deficit down”, the line pioneered by Cameron, and vehemently opposed by Labour, before the 2010 election. But the policy pledges in last week’s conference speech were at least encouraging. Now, faced with a privatisation that 67 per cent of the public oppose, it is surely time for Miliband to act again.

The government’s brag that shareholders were waiting in the wings was intended to present the privatisation as a fait accompli. But we forget that no money has changed hands – and potential investors rarely take kindly to hearing their purchases will be snatched away.

Yet despite Miliband’s willingness to challenge the ‘vested interests’ of big business, public ownership remains a toxic phrase among Labour high command. The party’s official history implies that it only regained power in 1997 due to abandoning its policy of nationalisation. But not a single hand went up against the motion at Labour Party conference that called for renationalisation of the post. In the past, Labour leaders from Wilson to Blair ignored party conference decisions on the grounds they would not be popular with the wider public. But as politicians of all parties have drifted away from the realities of ordinary people’s lives, Labour conference now more often proposes policies that could well regain trust and support from voters.

One voice warning against a renationalisation pledge is postal expert David Stubbs. He told the Scotsman that Alex Salmond’s pledge to take the Scottish arm of the post into public ownership in the event of independence would have the “immediate effect… to depress the value even further.” Imagine the effect of a Labour pledge to take it back wholesale. What sort of investor would sign on the dotted line then?

Unfortunately, though Miliband has demonstrated himself well capable of taking on vested interests and winning, he has yet to recognise that sometimes his party's grassroots might just have it right. That he has only just pledged to scrap the bedroom tax – after months of dithering - suggests that the party’s policy process has failed to listen to party members and councillors who have been protesting since the penalty was first mooted.

Time is running out to save Britain from the devastating service that comes with privatised post, with the transfer of stock expected by 15 October. Pledging to re-nationalise would be a risk, but Miliband has taken those before: and if potential investors run scared like the energy companies, it wouldn’t cost a penny.

A worker walks past a row of vans at the Mount Pleasant sorting office on September 12, 2013 in London. Photograph: Getty Images.

 Conrad Landin is the Morning Star's industrial correspondent. Follow him on Twitter @conradlandin.

Photo: Getty
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The rise of the green mayor – Sadiq Khan and the politics of clean energy

At an event at Tate Modern, Sadiq Khan pledged to clean up London's act.

On Thursday night, deep in the bowls of Tate Modern’s turbine hall, London Mayor Sadiq Khan renewed his promise to make the capital a world leader in clean energy and air. Yet his focus was as much on people as power plants – in particular, the need for local authorities to lead where central governments will not.

Khan was there to introduce the screening of a new documentary, From the Ashes, about the demise of the American coal industry. As he noted, Britain continues to battle against the legacy of fossil fuels: “In London today we burn very little coal but we are facing new air pollution challenges brought about for different reasons." 

At a time when the world's leaders are struggling to keep international agreements on climate change afloat, what can mayors do? Khan has pledged to buy only hybrid and zero-emissions buses from next year, and is working towards London becoming a zero carbon city.

Khan has, of course, also gained heroic status for being a bête noire of climate-change-denier-in-chief Donald Trump. On the US president's withdrawal from the Paris Agreement, Khan quipped: “If only he had withdrawn from Twitter.” He had more favourable things to say about the former mayor of New York and climate change activist Michael Bloomberg, who Khan said hailed from “the second greatest city in the world.”

Yet behind his humour was a serious point. Local authorities are having to pick up where both countries' central governments are leaving a void – in improving our air and supporting renewable technology and jobs. Most concerning of all, perhaps, is the way that interest groups representing business are slashing away at the regulations which protect public health, and claiming it as a virtue.

In the UK, documents leaked to Greenpeace’s energy desk show that a government-backed initiative considered proposals for reducing EU rules on fire-safety on the very day of the Grenfell Tower fire. The director of this Red Tape Initiative, Nick Tyrone, told the Guardian that these proposals were rejected. Yet government attempts to water down other EU regulations, such as the energy efficiency directive, still stand.

In America, this blame-game is even more highly charged. Republicans have sworn to replace what they describe as Obama’s “war on coal” with a war on regulation. “I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations,” Trump announced in March. While he has vowed “to promote clean air and clear water,” he has almost simultaneously signed an order to unravel the Clean Water Rule.

This rhetoric is hurting the very people it claims to protect: miners. From the Ashes shows the many ways that the industry harms wider public health, from water contamination, to air pollution. It also makes a strong case that the American coal industry is in terminal decline, regardless of possibile interventions from government or carbon capture.

Charities like Bloomberg can only do so much to pick up the pieces. The foundation, which helped fund the film, now not only helps support job training programs in coal communities after the Trump administration pulled their funding, but in recent weeks it also promised $15m to UN efforts to tackle climate change – again to help cover Trump's withdrawal from Paris Agreement. “I'm a bit worried about how many cards we're going to have to keep adding to the end of the film”, joked Antha Williams, a Bloomberg representative at the screening, with gallows humour.

Hope also lies with local governments and mayors. The publication of the mayor’s own environment strategy is coming “soon”. Speaking in panel discussion after the film, his deputy mayor for environment and energy, Shirley Rodrigues, described the move to a cleaner future as "an inevitable transition".

Confronting the troubled legacies of our fossil fuel past will not be easy. "We have our own experiences here of our coal mining communities being devastated by the closure of their mines," said Khan. But clean air begins with clean politics; maintaining old ways at the price of health is not one any government must pay. 

'From The Ashes' will premiere on National Geograhpic in the United Kingdom at 9pm on Tuesday, June 27th.

India Bourke is an environment writer and editorial assistant at the New Statesman.

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