by René Lavanchy

THE Labour-trade union link has been preserved in a white paper on party funding published by Justice Secretary Jack Straw this week. The paper suggests they should better inform members about political funding.

And proposed rules restricting campaign spending between elections could restrict Tory donor Lord Ashcroft’s pouring of money into marginal seats.

The Trade Union and Labour Party Liaison Organisation, which represents Labour’s affiliated unions, issued a guarded response and warned that it would not stand for more “burdensome” union legislation.

Addressing the House of Commons, Mr Straw blamed public mistrust of party financing on a “spending arms race”. Labour and the Conservatives spent a total of £90 million in the run-up to the 2005 election.

The white paper proposes to cap how much parties can spend on election-related activities over the entire period of a parliament. Since 2000, only the 12 months running up to a general election have had a spending limit. It also backs the idea of capping individual donations at less than £50,000.

However, the paper suggests that union affiliation fees will not be treated as a bloc grant but as groups of personal donations – too small to cap.

Sir Hayden Philips, who published a review of party funding in 2007, recommended that this situation could remain as long as members were sufficiently informed about funding.

The white paper says: “Trade union members would be reminded annually about their contribution to the union’s political fund… and the right to opt out”.

Tribune understands, however, that unions will not have to ballot members annually on maintaining a political fund.

A bill is expected in Parliament this summer.