Saturday, 8 August 2009


Lapping up the sun with his super-rich friends... Mandy, the man who's supposed to be running the country

ByTIM SHIPMANandSAM GREENHILL
Last updated at 10:43 AM on 08th August 2009



Whether mixing with the super-yacht set, or strolling poolside in Corfu, this was Lord Mandelson running Britain yesterday. 

The Business Secretary took over the reins of power from Harriet Harman - but refused to cut short his holiday with the rich and famous on the Greek island.

He chose to oversee Whitehall business from 1,300 miles away, armed with little more than an official BlackBerry, his own mobile phone and a pair of swimming goggles.

Welcome: Lord Mandelson greets billionaire David Geffen

Welcome: Lord Mandelson greets billionaire David Geffen

Enlarge mandelson in corfu

Shades of ambition: Mandy in Corfu yesterday

Lord Mandelson is a guest of financier Nat Rothschild at his 30-acre estate on the north-east tip of Corfu. It is a repeat of his notorious visit 12 months ago, before his controversial return to the Cabinet.

Also there was Shadow Chancellor George Osborne, and the two men met controversial Russian businessman Oleg Deripaska. Mr Osborne later claimed that Lord Mandelson, then plain Mr and an EU Commissioner, had 'poured pure poison' into his ear about Gordon Brown.

But, within days, Labour's original spinner had turned the tables with the help of Mr Rothschild, who revealed that Mr Osborne had tried to solicit a donation to the Tory Party from foreign-born Mr Deripaska, which would be banned under British election law. 

Lord Mandelson spent much of yesterday soaking up the sun. But at 8.30pm he was down on the waterfront to meet Hollywood magnate David Geffen and other guests arriving by launch from Mr Geffen's 452-foot super-yacht Rising Sun.

Lord Mandelson greeted the flamboyant music billionaire with a hug before the group walked through an olive grove for dinner at the Rothschild estate. 

Mr Geffen shares the Rising Sun with software magnate Larry Ellison, the head of Oracle, who was entertaining Tony Blair on the same vessel off Sardinia just two weeks ago.

Downing Street went into a tailspin yesterday after it became clear that not one leading minister was in London to take charge in the event of a terrorist attack or other emergency such as a surge of swine flu.

The Mail has established that the Olympics Minister Tessa Jowell - ranked a lowly 16th out of 23 in Mr Brown's Cabinet - was the most senior member actually at her desk. 

Greek idyll: The Rothschild estate on Corfu

Greek idyll: The Rothschild estate on Corfu

Lord Mandelson's aides confirmed that he had been 'on call' as day-to-day coordinator of government business from midnight, when Miss Harman's turbulent fortnight at the helm came to an end and she headed for a family holiday in Italy.

They made clear that the Business Secretary will not be home until Monday afternoon.

No 10 spokesmen claimed that Gordon Brown, who is holidaying in Scotland, remains in charge and would step in if there was an emergency.

But Downing Street sources admitted that Lord Mandelson is the designated 'heavy lifter', expected to coordinate day-to-day business.

Officials admitted they had been aware of the impending black hole in Government holiday cover but chose to take the 'media hit' rather than ask ministers to rearrange their vacations.

'What do you want us to do, make Harriet delay her holiday for three days when there's nothing going on?' one said.

The 'nothing' yesterday included the deaths of three more British soldiers in Afghanistan.

No 10 faced further embarrassment because it appeared that Lord Mandelson had violated an express order from Downing Street in a memo reading:

'The Prime Minister expects duty ministers to be on duty in London or on departmental visits at all times.' 

Floating palace: The 452ft Rising Sun

Floating palace: The 452ft Rising Sun

Downing Street aides claimed that edict applied only to the minister on call in each government department rather than for the Prime Minister's own holiday stand-ins.

Asked whether the Business Secretary was running the country by BlackBerry, a colleague said: 'You know Peter, he's always on the phone.'

When Lord Mandelson flew to Corfu on Monday with the budget airline easyJet, one passenger revealed, he was twice asked to switch off his BlackBerry but sneakily continued using it behind a copy of the Financial Times.

Communication may not be so easy now, given the unpredictable mobile phone signal on Corfu.

In some inlets and tucked-away tavernas, mobile reception can be lost completely or the telecoms provider can unexpectedly switch to an Albanian network, raising issues about the security of Lord Mandelson's calls home.

Tory Party chairman Eric Pickles said: 'Lord Mandelson's vicelike grip on power means he's untouchable and can do whatever he wants.

'You really know the country is in a shambolic state when we have an unelected official calling the shots from his holiday hideout.'

Liberal Democrat frontbencher Norman Baker added: 'It doesn't say much for their forward planning that Labour can't even manage to leave one person in charge of the country who's actually in the country.' 

Last night it was reported that David Cameron will try to stop Lord Mandelson moving from the House of Lords to the House of Commons.

Amid speculation that the business secretary is hoping to make a come-back, the Conservatives will oppose a government measure allowing life peers to retire from the upper house and parachute back into the Commons into a safe Labour seat.

Mr Cameron's ally Lord Strathclyde, Tory leader in the Lords, said he would ensure Mandelson remains 'trapped' on the red benches, according to

'We will definitely oppose it', he told the Financial Times.

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Read more:http://www.dailymail.co.uk/news/article-1205049/Lapping-sun-super-rich-friends--Mandy-man-whos-supposed-running-country.html#ixzz0NcKI21Oz