Peter Mandelson: arch Labour Party careerist
A friend and former Labour councillor reported to me how Peter Mandelson spoke at an online seminar. He had been impressed by one comment, summed up as: ‘If you have a good idea, don’t bother asking everybody, just go ahead and do it’. This seems to sum up all that was wrong with the New Labour project, even if you are achieving good results, not asking people makes them feel divorced from the outcomes. Even worse, it can lead to disastrous and unintended consequences, as those who know more could warn you about in advance.
Mr. Starmer thought appointing Mr. Mandelson as ambassador to Washington was a good idea, and he just went ahead and did it. The consequences have been disastrous for him.
Mandelson’s biography is well known. Grandson of wartime Labour Home Secretary Herbert Morrison, he had a natural ‘in’ into the Labour Party and movement, beginning his career (much like many Labour figures, including Jeremy Corbyn) as an employee of the trade union movement, working for the TUC.
It’s not necessary here to reprise his whole biography: it is widely available. Suffice to say that, apart from a short stint working in television, he worked as a Labour movement staff member, specifically in charge of communications. Once in parliament and then in government, he twice stepped down as a cabinet minister: once for taking an unsecured loan from a cabinet colleague, Geoffrey Robinson, for a house worth (at the time) £475,000. The second scandal was around him intervening in the passport application of billionaire businessman Srichand Hinduja. Although in both instances formal inquiries cleared him of any wrongdoing, the perception was that he was into palling around with – and getting favours from and doing favours for – very wealthy people.
It’s notable, now, that he lives in a £12 million house. This was paid for by the infamous revolving door of government ministers going into private lobbying and well-remunerated directorships after leaving office. While a well-known phenomenon, thanks to the publication of all of the notorious paedophile Jeffery Epstein’s correspondence, we now get a glimpse of the process working in practice.
Epstein advised Mandelson on how to apply for directorships, including with Deutsche Bank, that could have been worth $4-10 million per year. In the end, Mandelson didn’t want to work full time, and so got a job with a firm called Lazard for one day a week, worth a mere $1 million per year. He also set up his own lobbying firm, Global Counsel, which, as Mandelson said in one email to Epstein, paid his expensive mortgage. Epstein advised him on how to find clients for that firm. Global Counsel has had firms such as JPMorgan, Palantir and Anglo-American as clients.
These roles sought were, in part, to avoid regulation around former ministers taking jobs that relied on their former political roles or were intrinsically linked with them: and it is clear that what was for sale was general political, not financial advice, how to get things done, including introductions and network access. This is clearly not an uncommon situation. Epstein, it seems, also gave similar advice to former Israeli Prime Minister Ehud Barak. After all, as we have written in these pages before, this was Epstein’s business, helping manage other people’s wealth, for a cut.
Itch to live like them
It is, perhaps, not surprising that people who find themselves rubbing shoulders with the fabulously wealthy should not feel the itch to be able to live like them, especially as, when entering the room as government officials they are functionally treated as peers of the wealthy: individuals of power and respect. It is equally understandable that the wealthy should want to encourage such feelings and throw a few crumbs to the politicians to win their loyalty.
As the case of Mandelson demonstrates, it does not have to be the naked bribery of plain brown envelopes. Continued loyalty (in his case as Business Secretary in the UK, and Trade Commissioner of the EU) can be generally rewarded by these advisor roles, directorships or other supposed jobs where the ultra-wealthy can name the price. We’ve noted before that the book-publishing and speaking-tour game is a simple way to transfer substantial sums to former politicians in ways which no set of rules could ever stop. Any attempt to ban such channelling of funds will always simply be circumvented, as Mandelson and Epstein managed to do.
Epstein gives us a great example, in one of his emails, where he leadenly says ‘supporting [Gordon Brown] will be seen as bad form commercially’: Mandelson’s own interests in the subsequent selling price of his skills and contacts depended on him being seen as helpful to commercial interests. That he had the lack of sense to forward secret and commercially sensitive government documents to Epstein will certainly come to be seen as bad form commercially. It is inconceivable that other ministers through the ages have not, in private conversations and communications, given wealthy friends and acquaintances tips and winks about what was coming up, but that would never be provable. There have just never been email dumps like this one before to let the cat out of the bag. And even if, again, Mandelson is formally cleared, his misjudgement in leaving evidence behind will be remembered.
What should also be remembered is that all of this flows, not just from personal cupidity, but structurally, from a society of immense inequality. A society in which a handful live in luxury, and can spare some of their wealth to tempt and buy whomsoever they please. Journalists have come out, after Mandelson’s fall, with stories of how he would threaten their jobs because he knew their boss (shades of the Savile playbook). Where people depend for their livelihood on their job, such threats have power.
His wealth of money and connections fed back into his ability to influence the machinery of the Labour Party, and restore it as a party safe for capital. But, again, it is not him alone as some sort of cuckoo in the nest – any party that seeks to manage an unequal society will inevitably end up being run for the benefit of the people who benefit from that inequality.
PIK SMEET