NEC chief defends Labour funding
Tuesday, 12 September 2006 12:00 AM
The head of Labour's national executive committee (NEC) has warned the Conservatives must not succeed in cutting his party's financial links to the trade unions.
Jeremy Beecham, a former chairman of the Local Government Association (LGA), told the TUC in Brighton that the Tories' attempt to cap donations to political parties was a "naked attempt" to cut union-Labour ties.
"The current review of party funding must not interfere with Labour's century-old trade union link or restrict the right of trade unionists to support collectively the political party of their choice," he warned.
Sir Jeremy's comments come after Tony Benn last night warned that state funding of political parties would emasculate the trade unions and must be resisted.
The former Labour cabinet minister told a fringe meeting on trade union rights: "State funding of political parties will destroy the trade union moment, which funded and set up the Labour party in the first place."
Former top civil servant Hayden Phillips is conducting a review into party funding at the government's request, after the cash for peerages row raised concerns about the influence wealthy businessmen were having on British political parties.
Both Labour and the Tories have already accepted new rules on the way donations and loans are declared to the Electoral Commission, but all parties have also put forward proposals for limits on spending, donations and possible state funding.
However, the Labour leadership has rejected plans for a cap on donations from an individual or organisation, recognising that the majority of their funding comes from trade union donations.
And today Sir Jeremy insisted the Conservatives' determination to press this point was merely an attempt to undermine Labour's traditional support.
"As in any partnership, there have been over the years, and still are, disagreements [between Labour and the unions] about the pace and sometimes the direction of travel," he told congress delegates.
"But the best evidence of the value of that partnership lies in the persistent efforts of our political opponents to disrupt it.
"Currently this takes the form of a naked attempt by the new cuddly Conservative party to interfere with and destroy the constitutional relationship of trade unions affiliated to the Labour party, and to disrupt the financial links between us."
The unions contributed £50 million to Labour in the past five years, what the Tories have warned is the "elephant in the room", but Sir Jeremy noted that with 2.5 million affiliate members, this was just eight pence per union member per week.
"You may have seen last week's photograph of a garlanded and glum Anthony Bamford, boss of JCB, in India alongside David Cameron to whom he's donated a million pounds through the secret Midlands Industrial Council," Sir Jeremy said.
He added: "I'd rather have an elephant in the room than a JCB in the garage."
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