Air sale could be delayed

Air traffic sell off raised safety fears

By BBC News Online's political correspondent Nick Assinder

Rebel Labour MPs opposed to the sell off of the air traffic control system are pinning their hopes on the House of Lords.

They believe that, having once again expressed their bitter opposition to the plan, peers will now kill it off until after the next election.

The prime minister is currently talking tough on the issue, insisting that he remains "absolutely committed" to the measure.

And it has even been suggested that he would be ready to see the entire Transport Bill, which includes the Nats sell-off, collapse rather than back down.

It would be possible for the government to remove the proposal from the bill, ensuring that the rest of the legislation is passed.

But the hints from Downing Street have been that that is not currently an option.

If the Lords did then kill off the entire bill, the prime minister could blame them for again frustrating government policy and insist it strengthened his determination to reform the upper house.

Blame Lords

Many backbenchers believe this is all posturing and that ministers will eventually be forced into a compromise.

Either way they believe it is now highly likely that the measure will not become law before the next election.

The battle would then be to ensure it did not find its way into the next manifesto.

Some even believe ministers would be relived if they had to abandon the measure to save the rest of the bill and could then blame the Lords.

The issue has turned into one of the most troublesome of all Labour's policies and landed it with embarrassing backbench revolts.

And the pre-election comment from the then shadow transport minister Andrew Smith that "our air is not for sale" has haunted the government ever since.

Rail crashes

Backbenchers were dismayed when it was later announced that the government had changed its mind and was now planning to part-privatise the system.

Serious concerns have been raised about safety and those have been heightened by recent rail crashes.

Transport Secretary John Prescott has tried to reassure rebels that safety would still be left in the public sector, through the Civil Aviation Authority, and that it will always be the paramount concern.

He has also insisted that bringing in private cash is the only way to invest for the long term.

But many remain unconvinced and believe the issue could seriously damage the government.

And many now believe that, whatever happens next, the proposal will be killed off until after the next election.