Mandelson urged to turn down £1m goodbye from EU

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.