Dispute over free databases Brown-Mandelson

[TrueBlueTerrier]

Dispute over free databases is latest sign of Brown-Mandelson rift

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A disagreement over a Government shake-up of lucrative address databases has intensified tensions between Gordon Brown and Lord Mandelson, it has emerged.

By Andrew Porter, Political Editor
Published: 10:00PM GMT 23 Dec 2009

The Prime Minister’s plan to make postcode information freely available, when it currently makes more than £20 million a year for Royal Mail, is said to have left the Business Secretary feeling increasingly sidelined.

It comes after The Daily Telegraph disclosed the rift between Labour's two leading figures, which is threatening to derail the party’s planned fightback ahead of the election.

In the latest development, Mr Brown made it clear recently that he wanted certain official databases to be made available for free as part of a Whitehall efficiency drive.

These included the Postcode Address File, which includes 1.8m British postcodes and 28m addresses.

It is updated 1,000 times a day by Royal Mail staff in Middlesbrough to keep up with changes to buildings, so that postmen can deliver letters and parcels to the right places.

Royal Mail makes more than £20m a year by selling the data to marketing firms, mail order companies and insurers.

It also allows Ordnance Survey to use the valuable information in its Codepoint database, which is then sold on to mapping and sat-nav developers such as Google and TomTom. Royal Mail takes a share of the profits of this deal.

Lord Mandelson, however, is reportedly angry that the Prime Minister announced his plans to make this information freely available without consulting him properly.

The Business Secretary would prefer the system of postcodes to be sold on a commercial basis through the Royal Mail, to make money for the taxpayer.

Royal Mail’s financial situation is desperate, which is why Lord Mandelson was keen to sell part of it to a foreign investor. He was forced to scrap those plans in the summer when it was clear that more than 100 MPs would defeat the Government.

The latest snub by Mr Brown further illustrates Lord Mandelson’s lessening influence over the Prime Minister.

Yesterday, this newspaper revealed how Lord Mandelson, who did so much to help Mr Brown survive in Number 10 this summer, believed he had been “used” and “disposed of”.

A senior source described him as “disengaged” and unwilling to get involved, in stark contrast to the close relationship Mr Brown formed with Lord Mandelson after he surprised Westminster by inviting him back into the Cabinet in October last year.

In recent weeks Lord Mandelson is known to have been upset that Mr Brown has continued to attack bankers for their bonus payments. The Business Secretary understands that the City will have a vital role to play in Britain’s recovery, but he was overruled and Alistair Darling, the Chancellor, brought in a new super tax for bonuses of more than £25,000.

The new rift is certain to unsettle Labour’s senior ranks as the party attempts to fight back in the New Year ahead of a spring General Election. Lord Mandelson would be expected to have a key role in Labour’s election planning and strategy.

The pair buried past differences, which had seen them rarely speak for 14 years after Mr Brown reacted badly to his old friend’s decision to back Tony Blair rather than him in the 1994 Labour leadership race

[norbert]

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His Mandiness is not best pleased - he feels that he's been used - Oh Dear !

old but good article http://www.telegraph.co.uk/news/newstop ... amble.html" onclick="window.open(this.href);return false;

[bedfordrl]

When I read this story it seemed that his Mandyness is on our side ,I have re-read it and I still wonder.

Is there an emphasis ,in the reporting,on the fact that Brown and Mandleson are having a tiff because one did not consult the other,or is Mandy displeased with Browns effort to knock a bit more of Royal Mails foundations away?.
Still not sure.

[chunk]

mandy is not interested in protecting RM.
He sees us in the same way as an asset stripper would!
as a collection of valuable "parts" .