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Mandelson urged to turn down £1m goodbye from EU
Paul Waugh, Deputy Political Editor13 Oct 2008
PETER MANDELSON took his seat in the House of Lords today amid calls for him to turn down a £1million "golden goodbye" payoff from the European Commission.
The former Northern Ireland Secretary, who has twice been forced to resign from the Cabinet in disgrace, took his seat as Baron Mandelson of Foy and Hartlepool Hartlepool being his former constituency and Foy a Herefordshire village where he has holidayed but he said: "I have decided to be plain Lord Mandelson."
The new Business Secretary's package comprises "transitionary payments" of £78,000 per year for the next three years £234,000 in total so that he does not suffer now his salary has dropped to £104,386 from the £182,500 he got as a commissioner.
Also, when he turns 65, in just over 10years, he will receive an inflation-linked pension starting at £31,000 per year and worth a fund of about £750,000, according to experts.
He is also due a one-off resettlement grant of £15,000 to help with the move back to London.
Mark Francois, the Conservative spokesman on Europe, said the details of the ex-commissioner's "golden goodbye" would anger voters.
"Not only did Gordon Brown recall Peter Mandelson to shore up his own position, but it adds insult to injury to know taxpayers will have to pay extra for the privilege," he said.
Sources close to Lord Mandelson said: "Peter doesn't know what he is going to get. He hasn't been told." He also faces questions over trade concessions worth £50 million a year to Russia's richest oligarch.
It emerged that this summer, he had been "billeted" on a yacht near Corfu owned by Oleg Deripaska, head of the world's largest aluminium company.
While he was a commissioner, Lord Mandelson promoted a plan to slash EU tariffs on imported aluminium, a move which could save Mr Deripaska huge sums. Lord Mandelson denied any conflict of interest, pointing out that member states determined the tariffs.
Reader views (3)
Has anybody else seen through the way the British public is being taken for a ride. First we had Blair clinging on to power by his finger tips whilst Brown was trying to prise him loose. Next, Blair and Brown reached the agreement that the British electorate would have an unelected Prime Minister foisted upon them. Brown then took over the wheel of a sinking ship,confounded his backbenchers and cabinet collegues because he wouldn't hold an election when his party wanted him to, brought back mendacity Mandelson, a man who twice had to resign from the cabinet, gave him a peerage and then a cabinet position more powerful than his own. Anybody see the hand of Blair pulling the strings yet,-------- yes you've cracked it! NO ELECTION BEFORE RATIFICATION OF THE LISBON TREATY, BLAIR GETS TO BE EU PRESIDENT, MANDELSON KEEPS AN EYE ON BROWN UNTIL A CONSERVATIVE GOVERNMENT IS ELECTED AND THEN BLAIR GETS HIM A GOOD JOB-PROBABLY FOREIGN MINISTEr - AT THE EU. Everybody is happy except the British people because yet again we have been sold down the river. There was a time when selling out your country got you the chop not a grand life style and a peerage. Still if all else had failed Mandelson did get enough money from the European Union gravy train to buy a peerage. And don't forget the Welsh windbag's wife,GRAVY TRAIN GLYNNIS, SHE IS STILL FREE LOADING OFF THE TAXPAYER. By the way, can anyone tell me what she is actually being paid for.Answers on a postcard please.
- Terry Capps - Jenner, Lowestoft Suffolk, 06/10/2009 19:20
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In what sphere of business is it possible to get an allowance to cater for loss of earnings when moving jobs? None - so why is it possible in politics? Yet another example of our trough-feeding MPs taking the taxpayer for a ride.
- Nobby Clark, Perth, Scotland, 06/10/2009 18:20
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Take it, and donate it to charity, or set up a scholarship fund to study European Engagement.
- Dhanraj, basildon, essex, 06/10/2009 18:20
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