Royal Mail - a poisoned chalice?

G. Brown is in further difficulty on the issue of Royal Mail.

The Service is under threat from various directions, and struggling to compete. For once the government seems to understand that the Mail will need both private sector funding and also expertise. A partial privatisation has thus been proposed.

Brown, then, faces a problem. He and Lord Mandelson are aware of the need, but there is considerable opposition among his back-benchers, and perhaps even in the cabinet. His left wing have a counter proposal to make, to turn the Royal Mail into a "not-for-profit" body. This proposal makes no sense, in the face of the need for finance and expertise, but it is supported by a significant number of Labour MPs, perhaps as many as 150.

So what options does he have?

1) Accept the back-bench proposal, and gain some kudos from that direction, although losing some on his right. This will not solve the problem, but it may not be his for much longer, and the union opposition would be directed against a Tory government.

2) Kick it into the long grass, suggesting that a thorough review is necessary. This will not go down well with Mandelson, who could become spiteful, and would leave an asset for an incoming Tory government to privatise fully rather than partially in the quest for funds to reduce debts.

3) Proceed, knowing that the Tories will support his proposals, even if they feel that they are inadequate. Such an outcome would cause a loss of support within his own party, and further erode his power.

He has a real problem on his hands, with a problem to try to conceal how he has given in in one direction or another.

And then there are the elections within a month, with Labour tipped to do badly!