Cameron: Trade unions crucial to donor reform

Cameron accuses the government of being 'dysfunctional'

Monday, 03, Dec 2007 12:00

David Cameron has accused the Labour party of having its "head in the sand" over party funding difficulties.

The Tory leader insisted the Conservatives are prepared to press ahead with attempts at party funding reform, but only if Labour makes concessions over trade unions.

The Conservatives want the £50,000 cap on individual donations to apply to trade unions, in a move that has been strongly resisted by Labour.

Labour argues the substantial funding it receives from union members should be treated as individual donations.

Speaking at his monthly press conference this morning, Mr Cameron said the Conservatives "absolutely have to know" trade union funding will be assessed before the Tories can reach consensus on reform talks.

He said individuals signing up to trade unions should have "real choice" over whether they pay the political levy and over which party this is donated to.

Labour activists criticise the Conservatives' objections to trade union funding claiming the party should also agree to cap donations it receives from wealthy benefactors.

Critics also point out Tory donors can fund the party anonymously through unincorporated associations.

Mr Cameron also said parties should "cut the cost of politics," speculating the current £20 million cap on general election expenditure could be reduced to £15 million.

Speaking of the secret donation row which has sparked the latest review of party funding rules, Mr Cameron said Labour was "utterly dysfunctional" over donations.

The Conservative leader is sceptical of Jon Mendelsohn's claim he did not know of the proxy donations until September.

Mr Cameron said: "We are being asked to believe that Mr Mendelsohn was hired by Gordon Brown, that he found out about these secret donations.

"He somehow thought it was legal, but at the same time was deeply unhappy about it but told nobody.

"Either this organisation is utterly dysfunctional or we are not being given the whole truth."

David Abrahams, who donated to the Labour party through intermediaries to "avoid publicity", has suggested senior figures in the party were aware of the arrangements for anonymous donations.

He told the Independent on Sunday "a few officials and party figures in high echelons of the national party structure" were aware he was the true source of more than £650,000 of funding.