Mandelson's Epstein Scandal Exposes Systemic Flaws in New Labour Era
There is a widespread and convenient amnesia surrounding Peter Mandelson's tenure in New Labour, but it is crucial to revisit this history to understand the full scope of his actions. While his disgraceful dealings with Jeffrey Epstein involved betraying the national interest, this was merely an unauthorised extension of his sanctioned role as an enabler of corporate power. The narrative that portrays Mandelson as a lone rogue actor obscures a much harder truth: his actions were symptomatic of a deeper institutional corrosion within government.
The Business Department as a Corporate Fifth Column
In 2009, as Mandelson was passing sensitive information to Epstein, he led the Department for Business, Enterprise and Regulatory Reform (Berr). This department functioned as a fifth column within government, working systematically to undermine democracy and the public interest on behalf of corporations. Berr operated as a smaller, less chaotic version of what might be termed a "department of government efficiency," designed to bypass parliamentary scrutiny and appease powerful lobbyists.
Unlike other government departments, Berr was largely managed by unelected lords who had backgrounds as corporate executives, lobbyists, or members of a concierge class serving business interests. These ministers, appointed by Gordon Brown, effectively formed their own internal lobby group, pushing policies that prioritised corporate gains over public welfare.
Key Policies That Betrayed the Public Interest
Under Mandelson's leadership, Berr pursued several controversial initiatives:
- Privatisation of Royal Mail: The department succeeded in part-privatising Royal Mail, breaking a key manifesto commitment and altering a public service fundamentally.
- Undermining Workers' Rights: Berr attempted to block and weaken the EU working time directive through government filibusters, delaying protections for employees.
- Attacks on Equality: Efforts were made to undermine the equality bill, which aimed to ensure equal pay for women, reflecting a broader disdain for women's rights that paralleled Mandelson's dealings with Epstein.
- Environmental Rollbacks: The department quietly dismantled environmental legislation, building what critics called a "bonfire" of measures protecting against predatory corporate behaviour.
These actions were not isolated incidents but part of a coordinated strategy to erode democratic safeguards in favour of corporate interests.
Gordon Brown's Complicity and Historical Revisionism
When Gordon Brown expresses shock and betrayal over Mandelson's actions, it rings hollow given his own role. As prime minister, Brown not only allowed Mandelson to attack the public interest but also significantly increased Berr's budget. This occurred despite Mandelson's prior role in promoting deregulation as European trade commissioner, a policy that catalysed the very financial crisis Brown claimed to be solving.
Brown's justification for appointing Mandelson, citing an "unblemished record" as trade commissioner, overlooks the neocolonial trade policies Mandelson enforced. These included imposing draconian provisions on poor countries, forcing privatisation that threatened access to essential services like health and water, and risking widespread hunger by pressuring nations to hand over crucial resources.
The Broader Pattern of Democratic Subordination
Mandelson's treachery, while extreme, is not a bug but a feature of a system that has subordinated democracy to the demands of the ultra-rich for over 45 years. This pattern of abuse and exploitation—targeting women, children, poorer countries, workers, and consumers—is baked into the political framework. Keir Starmer's current government, with its ties to lobbyists, continues this legacy, demonstrating that the issue is systemic rather than individual.
Brown's recent calls for transparency in public service contracts, such as ending commercial confidentiality barriers, are ironic given his own use of the private finance initiative (PFI). Under PFI, Brown's Treasury repeatedly blocked information requests on similar grounds, embedding corporate profits at public risk and planting a timebomb in public services that persists today.
Media Complicity and the Need for Systemic Diagnosis
The media often focuses on the "bad apple" narrative, avoiding scrutiny of systemic problems. Mandelson's repeated returns to government, despite scandals, highlight how he was utilised to do the dirty work—allowing governments to publicly claim progress while subtly undermining it. To address these issues, we must diagnose the problem accurately: Mandelson's actions are a manifestation, not a deviation, of a political system that prioritises corporate power over public interest.
In conclusion, while Mandelson's grovelling to figures like Epstein is disgraceful and deceitful, it reflects a broader institutional failure. Understanding this is essential for any meaningful reform to restore democratic values and protect the public from predatory corporate influence.
