THE Conservatives will today accuse Treasury Minister Helen Liddell of trying to sneak the privatisation of the National Savings Bank through the Commons in order to enhance her own ''right- wing economic credentials'', writes Ken Smith.
The allegations have been denied by the Treasury which insists that no decision over the future running of National Savings has yet been taken.
Some 2000 jobs at National Savings' Cowglen site in Glasgow will be affected if a private company takes over the running of the bank.
At a Commons committee today, the Government will put forward a contracting out order which would allow any private company to take over some of the powers from the Director of Savings.
The Treasury says this is simply good housekeeping so that the powers are in place, if one of two private companies who are going to bid to run the bank actually take over.
Conservative Treasury spokes-man Michael Fallon claims, however, that this is the Government privatising the bank without proper Commons scrutiny. He argues that Treasury Minister Liddell is pushing it through in order to enhance her position in the party.
The argument is Mrs Liddell is jockeying for a Cabinet position in any reshuffle, and pushing through the National Savings changes would enhance her reputation.
The Government argues it would not be privatisation, even if a private company was brought in, as National Savings would remain under Government control. It is only the running of the service which may go into private hands, not the decision making. Unions at Cowglen have not been convinced. They say that National Savings can be run cheaper and more effectively if it remains in the public sector.
Ms Chris Sandilands of the Public, Commercial and Services Union, said that Government claims that this was not privatisation had fallen on deaf ears amongst the staff in Glasgow who fear that wages, conditions, and pensions could be adversely affected.
The two private companies, Siemens and EDS, have until the middle of next month to bid for running the service. Their bids will then be compared with the cost of keeping it in public hands, with a final decision expected next year.
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