Talks begin over party funding
Tuesday, 15 May 2007 12:00 AM
The three main political parties have entered talks over party funding.
Sir Hayden Phillips, who published his review into the issue last month, is chairing the meeting.
The parties all have a vested interest in the current system being overhauled, so that the public take a less cynical view of the political process, but there are various obstacles to a final agreement.
Labour is against any reform that would break its historic link with the trade unions while the Tories, by far the richest of the parties, oppose strict limits on constituency-level campaign spending.
The review was commissioned by the prime minister in March 2006 following revelations over party funding that severely tainted New Labour's previously clean image.
Labour had been secretly loaned £14 million, but the other parties did not escape criticism after it was revealed the Conservatives had been loaned £16 million and the Lib Dems received £850,000 from three backers.
The publication of the report a year later led Tony Blair to declare there was a basis for a new agreement. He pledged to work towards a deal which would allow for legislation in the following parliamentary session.
The review suggested a cap on donations, a cut in each party's expenditure of £20 million, a £25 million-a-year rise in state funding linked to popular support and greater democratic engagement, and additional powers for the Electoral Commission to enforce the new regime.
Sir Hayden has said that ground can be broken on the two main issues, but that direct talks are the only way to do so.
Peter Facey, director of Unlock Democracy, a group that campaigns for democratic renewal, said: "Nothing should be agreed until everything has been agreed. The parties should not be tempted to cherry pick from the proposals, nor should they be tempted to walk away from the process.
"If the main parties show leadership on this issue and avoid partisan back-biting, they have a real chance of restoring public trust in our system."
He continued: "One thing is guaranteed: if these talks fail, political parties will continue to decline at a local level and we will be going through this all over again in five to ten years time."
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