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Peter Mandelson criticises Ed Miliband's energy plan Peter Mandelson criticises Ed Miliband's energy plan
(about 1 hour later)
Lord Mandelson took aim at Ed Miliband's call for a 20-month freeze on gas and electricity prices on Wednesday, claiming that the Labour leader's demand for a resetting of the energy market could create the impression that the party's industrial policy was going backwards.Lord Mandelson took aim at Ed Miliband's call for a 20-month freeze on gas and electricity prices on Wednesday, claiming that the Labour leader's demand for a resetting of the energy market could create the impression that the party's industrial policy was going backwards.
The former business secretary suggested that Miliband's speech, widely praised across the Labour party, could be seen as taking the party back to a previous era in which the options for industrial policy amounted to either state control or laissez-faire.The former business secretary suggested that Miliband's speech, widely praised across the Labour party, could be seen as taking the party back to a previous era in which the options for industrial policy amounted to either state control or laissez-faire.
Mandelson fears his own carefully crafted legacy of "industrial activism" built up during his two years as business secretary is under threat, and that Miliband's party conference speech in which he made the energy price pledge was driven by politics as much as economics.Mandelson fears his own carefully crafted legacy of "industrial activism" built up during his two years as business secretary is under threat, and that Miliband's party conference speech in which he made the energy price pledge was driven by politics as much as economics.
He said: "At the business department I tried to move on from the conventional choice in industrial policy between state control and laissez-faire. The industrial activism I developed showed that intervention in the economy – government doing some of the pump priming of important markets, sectors and technologies – was a sensible approach."He said: "At the business department I tried to move on from the conventional choice in industrial policy between state control and laissez-faire. The industrial activism I developed showed that intervention in the economy – government doing some of the pump priming of important markets, sectors and technologies – was a sensible approach."
But he added that as a result of Miliband's speech "I believe that perceptions of Labour policy are in danger of being taken backwards."But he added that as a result of Miliband's speech "I believe that perceptions of Labour policy are in danger of being taken backwards."
In interviews Miliband argued that his decision to intervene in the energy markets was a special case prompted by unique failures in the flawed structure of the energy industry, rejecting claims that he was marching the party back to an era of socialism. He won the influential support of the leading Blairite in the shadow cabinet, the defence spokesman, Jim Murphy, who said the reforms were designed to make the energy market work for consumers.In interviews Miliband argued that his decision to intervene in the energy markets was a special case prompted by unique failures in the flawed structure of the energy industry, rejecting claims that he was marching the party back to an era of socialism. He won the influential support of the leading Blairite in the shadow cabinet, the defence spokesman, Jim Murphy, who said the reforms were designed to make the energy market work for consumers.
Miliband said: "My job is to stand up for the public interest, not the interest of any one company or any six companies but the whole of the public, the whole of this country, and that's what I have done in the policy I've talked about.Miliband said: "My job is to stand up for the public interest, not the interest of any one company or any six companies but the whole of the public, the whole of this country, and that's what I have done in the policy I've talked about.
"It makes me think of the banks. The banks used to threaten, the banks used to conjure up scare stories, the banks used to talk about the impact of regulation, and the Conservative party supported them, and actually we should have had tougher regulation, and so it makes me think that actually we've got to do the right thing by the country, and that's what I'm going to do.""It makes me think of the banks. The banks used to threaten, the banks used to conjure up scare stories, the banks used to talk about the impact of regulation, and the Conservative party supported them, and actually we should have had tougher regulation, and so it makes me think that actually we've got to do the right thing by the country, and that's what I'm going to do."
The energy companies wrote to Miliband offering private talks to clear up "misunderstandings" about the causes of rising energy prices.The energy companies wrote to Miliband offering private talks to clear up "misunderstandings" about the causes of rising energy prices.
Alastair Campbell, Tony Blair's former press secretary, disagreed with Mandelson saying in a tweet: "Peter M wrong re energy policy being shift to left. It is putting consumer first v anti competitive force. More New Deal than old Labour."
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