by René Lavanchy
GOVERNMENT plans for rules on the funding of political parties – including trade union funding – look set to overshadow discussions between Labour and the unions as they draw up an agreement on policy commitments for the next Labour Party manifesto.
The unions’ agenda for the agreement, dubbed “Warwick Two” after the 2004 Warwick agreement, is currently under discussion by a committee of the Trade Union and Labour Party Liaison Organisation, which maintains links with the 16 unions affiliated to the party.
The deal, to be finalised by Labour’s National Policy Forum in July, will contain the party’s promises on fairness at work, pensions and the future of the public sector.
A source close to discussions said unions were drawing up a call to “maintain or strengthen the union political fund”.
At the same time, the Ministry of Justice is expected to present a white paper on the funding of political parties as early as next month. It comes after negotiations between the parties last year, when the Conservatives called for union affiliation fees to Labour to be capped.
The paper, which is expected to call for more transparency in donations, is likely to propose that unions include a clause on membership forms explaining what the political fund is and how to opt out of it.
It will also suggest more information on how the fund is spent should be published in union publications.
Crucially, however, there is no indication as yet that union donations will be capped. The policy on opting out – which union members are already entitled to do – defies previous Tory demands to require them to opt in.
One union source said: “Trying to pre-empt any Conservative position on funding would take precedence over any position of the unions.”
Last year, Gordon Brown proposed capping individual and corporate donations to parties at £50,000, but unions have insisted that their affiliations should be protected.
Their bargaining position will be stronger than ever this year, as Labour struggles to plug a £4 million hole in its finances.
Although discussions on Warwick Two are separate from consultation on the funding white paper, the Government has consulted closely with unions. Tony Dubbins, joint chair of the national TULO committee, has met with Justice Secretary Jack Straw, who will present the paper.
Unions have yet to formalise their demands for Warwick Two. However, the GMB recently called for the cap on National Insurance to be lifted so that the highest earners would pay more, while Unite has called for a rethink on corporate taxation.
Kevin Curran, who was GMB general secretary at the time of the original Warwick Agreement, commented: “The last thing I saw, the party’s got to find several million pounds. The trade union movement can’t deliver that… That’s where the bargaining will begin. Very tough decisions have to be made.”
He warned that unions would resist any attempt to restrict donations to constituency Labour Party funds, rather than to the central office: “That would be the end, completely unacceptable. Democracy is about local people making local decisions. You know what the Tories are up to. We need to put them on the back foot on this.”
