Business | Economy
Brown: Mandelson's return to cabinet a 'no-brainer'
Alastair campbell also back on scene as 1990s new labour reunite.
- By George Parker, Financial Times
- Published: 23:53 October 10, 2008
Londo: When Peter Mandelson arrived in London earlier this month to see Gordon Brown he did not bother to bring a change of clothes.
"I had just one shirt, one pair of underpants," he says.
After quick adjustments to his wardrobe Mandelson was preparing to take his place in Brown's economic "war cabinet" as secretary of state for business.
It is almost as if he has not been away. Already he stands accused by the Tories of being a scheming manipulator, allegedly using his civil servants as political props in a rapturous welcoming committee on October 3.
Mandelson seems bemused. "I didn't ask them - they did it," he tells the Financial Times. "I had no forewarning. I had to make an impromptu speech."
In spite of Tory scepticism, Mandelson's return to his old business beat has been genuinely well received by his staff.
"They like people who make decisions and I make decisions," he says. They also like a secretary of state with the clout in the cabinet to stand up for business and - if necessary - to take on the Treasury.
Mandelson's first priority is to find a way of helping companies, particularly vulnerable, small and medium-sized enterprises, through the economic crisis. "It's at the top of the in-tray - I hope we can make some announcements," he says.
Royal Mail's future
He is looking at ways to make sure the government pays its bills on time. "A lot of small businesses depend on payments by the government for their cash flow," he says. "That should be an area we can work in."
The future of the Royal Mail, the subject of a report by Richard Hooper, the former telecoms regulator, will also be high on his agenda.
Mandelson's expertise in world business and trade issues is expected to be deployed widely in the government, starting with the first meeting of Brown's new National Economic Council.
The former European Union trade commissioner, whose possessions are still split between London and Brussels, says he came back to the cabinet in "the national interest, not a party interest or any faction within the party". He believes that talk of a leadership challenge to Brown is in the past.
After being offered the business secretary's job a week ago, Mandelson's return was blessed by Tony Blair, a clear sign that the old Blair/Brown feud has finally run its course after almost 15 years.
"I left Downing St and went to see Tony in his office," he said. "I told him what Gordon had put to me, and he told me that Gordon had already mentioned it to him. He said it was a 'no-brainer'.
"He said just look at the economic context, look at what's at stake for the country. It's time for us all to come together."
Mandelson says Alastair Campbell, Blair's former spokesman, is also firmly back on the scene, as the architects of New Labour in the 1990s re-unite to try to find a route to a fourth election victory.
"Gordon looks to Alastair more and more, and that's good," Mandelson says. "Look at the talent Alastair has. Everyone benefits from time out. Alastair has regenerated. He's a different person."
Mandelson claims he too is a different character to the one who left British politics for Brussels in 2004, his ministerial career apparently over.
"I think I'm more mature," he says. "I benefited a great deal from the very collegiate and collaborative way of working in the European Commission. It doesn't allow factions or personal rivalry. It's an excellent model.
"Above all, I've been away for four years. Time and distance have given me a different perspective."
His arrival in the cabinet could mark a more pro-European flavour to the government. Mandelson worries that the economic crisis - and the unilateral decisions of Ireland and Greece to defend their banking sectors - could put a severe strain on European unity.
Personal changes
By Mandelson's account, the main characters in the Blair/Brown psychodrama have all undergone personal transformations, including the prime minister. The business secretary says Brown changed over the summer holidays when he allowed himself time for "repose and reflection".
"He came back not just with some modest weight loss but with a clearer ability to see the wood from the trees," Mandelson says. "You grow into the job, fine tune your team and fine tune yourself."
But Mandelson says his return is also driven by a determination that Labour should not repeat the mistakes it made after the Wall Street crash when his grandfather, Herbert Morrison, was in the cabinet.
"The crisis split the party down the middle," he says. "We lost power and were out of power for a generation. History is not going to repeat itself."
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