'Third time lucky' for Mandelson

Published on Friday 3 October 2008 09:46

PETER Mandelson made a dramatic return to Government today declaring as he walked into Number 10: "Third time lucky."

His appointment was the big surprise at the heart of Gordon Brown's reshuffle which also saw Des Browne leave his post as Defence secretary.

Mr Mandelson, who was twice forced to resign from the Government under a cloud, becomes Business and Enterprise Secretary.

Arriving in Downing Street, Mr Mandelson, who leaves his job as Britain's EU Commissioner to take up the post, said it was a "great challenge and a great opportunity".

He said he would be working as hard as he could to help pull the country through the global crisis.

"Our economy, like every other, is facing a very hard challenge as a result of the global financial crisis. In a sense it's all hands on deck," he told reporters.

Asked about his relations with Mr Brown, with whom he had a long-running feud after backing Tony Blair for the Labour leadership, Mr Mandelson said: "I get on with him fine thank you very much.

"I think he is doing an exceptionally good job in what are very, very challenging conditions for our country."

He went on: "Of course we have had our ups and downs but we have also known each other for over 20 years and originally we worked very well together and I am very proud to have been invited to serve in his Government – it's not what I was seeking and it's not what I was expecting but nonetheless it is a great opportunity and a great challenge."

Defence Secretary Des Browne was replaced by Business Secretary John Hutton.

Mr Browne is leaving the government, with reports suggesting he turned down offers to take up the role of either the Secretary of State for Scotland and Northern Ireland Secretary, as he felt it would be an insult to the armed forces to leave as defence secretary and then take another job.

In other moves, Geoff Hoon takes over from Ruth Kelly at transport. The reshuffle followed the announcement that Ms Kelly is to stand down to spend more time with her family

Labour veteran Margaret Beckett returns to the government as housing minister, replacing Caroline Flint, and Ed Miliband has been appointed to head up a new climate and energy department.

Immigration minister Liam Byrne has been promoted to the new role of policy coordinator, not a full cabinet role but he will attend cabinet meetings.

Former cabinet minister Nick Brown is also expected to return as chief

whip, to replace Mr Hoon. Leader of the House of Lords, Baroness Ashton, will replace Mr Mandelson in Brussels.

Former home secretary David Blunkett described Madelson's appointment as a "masterstroke", saying: "It is embracing someone who, in the past, had been seen as being very close to Tony Blair, so it's an inclusive measure.

"It's someone who's got a tremendous breath of political experience and I think that adds to the weight of the cabinet."

Justice Secretary Jack Straw said Mr Mandelson would fit the job as business secretary "like a glove", but there were some voices of concern, among them left wing Labour MP John McDonnell who said he was "absolutely gobsmacked".

"This is an extraordinary step backwards into the worst elements of the Blair era, to reinstate possibly the most divisive figure in Labour's recent history," he said.