Prince of Darkness: Lord Peter Mandelson has returned to frontline politics as an adviser to the Remain (in the EU) campaign
It’s almost six years since Peter Mandelson departed from public life after a political career which saw him resigning twice from the Cabinet in disgrace and acquiring a well-deserved reputation as master of the dark arts.
Since then he’s devoted himself to making money. He’s been an adviser to the investment bank Lazards and to Asia Pulp and Paper, a controversial firm which was boycotted by major companies across the world because of claims that it had been involved in illegal logging in protected rainforests.
Above all, he’s believed to have made a personal fortune as chairman of a shadowy consultancy called Global Counsel, whose client list includes BP.
But now the Prince of Darkness is back. He’s returned to frontline politics as an adviser to the Remain (in the EU) campaign.
Predictably, he’s already been reverentially invited on to Radio 4’s Today programme as some sort of oracle, and made a speech in the City of London in which he warned that Eurosceptic ministers were lucky not to get the sack for disloyalty to the pro-EU PM.
Yesterday, he wrote a joint article with Tory MP Nicholas Soames – headlined ‘Why we’re joining forces to stay IN’. They explained how their grandfathers Winston Churchill and the Labour politician Herbert Morrison – although from opposing parties – joined together in the war-time coalition to fight Hitler.
They said: ‘Like our grandfathers before us, Europe’s future and Britain’s place within it has brought us together ... We agree that Britain is stronger, safer and better in Europe.’
Of course Mandelson has every right to return to active politics. The Remainers – including the Prime Minister – clearly think that he is a major asset, a heavy-hitter who, as a former Brussels commissioner, can claim to be an expert on the EU.
Backing: The Remainers – including the Prime Minister – clearly think that Mandelson is a major asset, a heavy-hitter who, as a former Brussels commissioner, can claim to be an expert on the EU
However, if he wants to rejoin democratic debate, he must accept certain obligations – especially being more open about any source of wealth, or business connections, that might be dependent on Britain’s continued membership of the EU. It is a fundamental principle of democratic politics that voters have a right to know who is paying politicians – and what for.
Most egregiously, though, Mandelson, despite being an active member of the House of Lords, refuses to be open.
Peter Mandelson, whose career has featured many accusations of mendacity, has always been very reluctant to provide details of his sources of income, despite having worked for decades as an elected politician.
This long history dates back to 1996 when he took a large loan from his fellow Labour MP Geoffrey Robinson to buy a house he could not otherwise afford. The revelation of the secret deal led to his first exit from government two years later.
Even now, we don’t know the true story of that saga because Mandelson has given two versions. He told one story to the Commons Select Committee on Standards, in 1999, when he was trying to rebuild his political career. (He said he had hoped until the last minute to get the entire loan from his mother.)
Then he offered a different one in his memoirs in 2010, when it looked as though his political career was over – claiming he had taken Robinson’s loan to avoid borrowing from his mother.
Fight: Tory MP Nicholas Soames (left) and Mandelson explained how their grandfathers Winston Churchill and the Labour politician Herbert Morrison, although from opposing parties, joined together in the war-time coalition
Ever since then, details of Mandelson’s money and lifestyle have been regularly reported in the Press. Many of the revelations led to an indignant response from him about their accuracy.
But almost all the stories have had the same theme: the fact that Mandelson seemed to have more money than could have been accrued from his income as an MP, minister and European commissioner.
This was particularly the case with reference to his house purchases. For example, in 2011, a year after leaving government, he was able to pay £7.6million for a gorgeous house looking on to London’s Regent’s Park.
That kind of money isn’t normally within the reach of Labour Cabinet ministers or even former EU commissioners. Where did it all come from? We simply do not know.
For one thing, though, we can be sure (and something that was not mentioned when he spoke on Radio 4 on Wednesday). The 60-year-old will be able to collect an EU pension of £31,000 a year from the age of 65 following his stint as Trade Commissioner from 2004 to 2008.
Crucially, it’s conditional on him maintaining a ‘duty of loyalty’ to the institution.
No wonder he’s so keen to trumpet his support for the UK’s continued membership of the EU!
There is another important matter of propriety. It involves his very grand house, which is situated in an area near Euston Station, the terminus for the proposed HS2 Birmingham-London high-speed train route.
Building project: Mandelson’s very grand house, which is situated in an area near Euston Station (pictured), the terminus for the proposed HS2 Birmingham-London high-speed train route
When Mandelson spoke in the Lords in October 2013 against the project – saying it would ‘suck the very life blood’ out of the rest of the country’s rail network – he failed to state he had a personal interest. Namely, that if HS2 went ahead, there were widespread fears that his neighbouring area would be transformed into a densely-populated building site, with thousands of construction workers, hundreds of HGVs and a fleet of cranes for ten years.
(Incidentally, during the same debate, another peer did declare an interest – saying she enjoyed walking in the Chiltern Hills, which would also be affected by a huge amount of building work.)
Entry: Mandelson was replaced as president of Hartlepool Football Club in October by the Sky Sports presenter Jeff Stelling (pictured)
So, how many details of Mandelson’s wealth are publicly available?
The first place to look is the Register of Interests in the House of Lords.
Peers are supposed to list any speech for which they are paid more than £1,000, including fees for travel and expenses. They have to do this within a month of its delivery.
Mandelson did not list any speeches for two years.
But last September he declared five at once, all overdue, one by a year. They did not, though, include a speech to an energy conference at Columbia University in New York or another to the All-Progressives Conference in Abuja, Nigeria. Maybe this was because he performed for free and paid all his own travel and accommodation costs.
Also, there is evidence of Mandelson’s failure to keep his entry up to date. It still shows him to be president of Hartlepool Football Club. However, he was replaced in October by the Sky Sports presenter Jeff Stelling.
Mandelson has made a number of changes to his entry since that time. Did he forget to change the entry relating the football club in the town where he was once an MP? Or did he leave it because it gives his profile a popular touch?
However, what he does declare is remarkably unrevealing. He never gives more than the bare minimum required by the rules. Take for example ‘Non-executive Director, Sistema (diversified holding company).’
There is no clue that Sistema is a major Russian conglomerate. Not long ago its boss was arrested on charges that were said to have been arranged by the Putin regime which has a rocky relationship with many such business giants and who was released when he handed its biggest asset to the Russian State (i.e. back to Putin).
The firm’s ‘diversified holdings’ include one of Putin’s top defence contractors, RTI. Assuming that, as a former British Cabinet minister, he adds value to the Sistema group, this means that Mandelson has links with the Kremlin’s war machine.
Shortly after leaving government, Mandelson formed a consultancy to market his services, with the grandiose name of Global Counsel. At that time, the Mail reported the egotistical letter he sent out to influential figures at home and overseas to tout for business.
In due course, the consultancy was very successful and made him a great deal of money.
But he has never declared the identity of any clients in the Lords register, even those which have been publicly revealed, including such high-profile companies as Betfair, BP and the giant mineral conglomerate Glencore. In fairness, some fellow peers have been similarly remiss – setting up consultancies and hiding the identity of clients.
For his part, Mandelson avoids revealing the names of those he advises by claiming that his firm does not give public affairs advice. He also states that he is not involved with any of the clients (despite the fact that the firm lists him as leader of its team and he is far and away its biggest talent).
It could be argued that this behaviour does not matter a jot. But as Mandelson goes into battle over the EU, we believe it is of huge political importance.
By refusing to come clean about his business interests, Mandelson is showing a contempt for the basic requirements of public life.
If politicians want to influence us, they should show us everything that might influence them.
Until Mandelson is ready to do this, he should keep his opinions to himself about the EU – and anything else.
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