More on New Labour and the union link
Posted on Wednesday 13 December, 2006
Filed Under Uncategorized

Today’s Guardian has more details of how Sir Hayden Phillips’ review of party funding will impact on the Labour-union link:
‘All 3.5 million workers who opt to pay an annual £3 levy to the Labour party will have to be publicly registered as individual donors under plans sent to the three main parties by Sir Hayden Phillips, chair of the independent party funding review.
‘The draft proposes a £50,000 cap for all individuals and organisations, which will more or less end the bankrolling of Labour by union leaders. Sir Hayden says his proposals “will be challenging for trade unions, they will require new systems and new management arrangements”.
‘The draft, dated December 4, scraps the plans put forward only last month for a £250,000 cap on trade union donations, and will inhibit the political power of union barons. The change would, however, allow Labour to take money from union members over and above the £50,000 cap. That proposal is being fiercely opposed by the Tories.
‘There will be an emergency meeting of Labour’s national executive committee tomorrow to discuss the plans …
‘Under Sir Hayden’s proposals each of the 3.5 million trade unionists paying the party levy will find their name and address passed to the Labour party where they will be registered as an individual donor; every year the party will have to write to them asking if they wish to remain a donor.
‘A similar registration system will exist for constituency Labour parties where unions give £6 for each 100 members, effectively restricting union influence in these parties where the four unions Amicus, GMB, TGWU and Unison, play a big role. Each union member would be able to personally donate up to £50,000 a year to the party.
‘The proposals provoked alarm at a meeting of the Labour trade union group on Monday night. Yesterday a trade union source said: “These proposals are worse than those put up by Norman Tebbit to force people to check in to support Labour.” But senior party sources insist that Tony Blair and senior ministers have no intention of breaking the union link. Hazel Blears, the party chairman, calls it the “red line” she will not cross.’
A couple of preliminary observations. I am frankly bemused by talk of ‘inhibiting the power of the union barons’. What power? Can anybody name even one substantial element in the labour movement wish list that New Labour has brought about in over nine years in office?
Secondly, this scheme seems utterly, utterly unworkable. Now, I have no experience of the direct mail industry, but I would guess that £3 a year would not even cover the costs.
Much of the mailshot won’t end up the right hands. The Royal Mail is shockingly unreliable in many parts of the country. People change addresses regularly, so the register will be out of date as soon as it is compiled.
And most of us simply bin the majority of mass mailings that look like they are asking for money. I know I do, even if the cause seems worthy. Or else they open them with every intention in the world of giving, only to come across them in a pile of papers three months later, and bin them then.
Reality check, guys. These proposals will cripple the Labour Party. How sad that the dumbass Blairites running the show – utterly deluded about their level of support in the movement and in the country – are too arrogant or just too detached from reality to realise any of this.
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3 Responses to “More on New Labour and the union link”














Bad timing for Labour as the millionaires option has also been pulled due to the peerages scandal. With fewer and fewer member and without the union cash (if this proposal goes through), they’ll be stuffed when it comes to fighting elections.
I understand that the funds aren’t there for fighting the Welsh Assembly and Scottish Parliamentary elections next May. Both could see Labour ousted from power.
Mind you, does cash work at election time? Labour poured £100,000 into fighting the Blaenau Gwent by-election and still got stuffed by an amateur campaign costing under £10,000.
Seren,
yes, cash shows, at the last election the winners of any given seat outspent the loosers in two thrids of a random sample.
Of course, causality is questionable, did they spend more because they could win, or did they win because they spent. Interestingly Galloway outspent King in Bethnal Green.
Can anybody name even one substantial element in the labour movement wish list that New Labour has brought about in over nine years in office?
Hard-edged as ever. I’m ever more baffled that you’ve decided to join a hopeless and counter-productive effort to shore up what was once a Labour Party.