by Chris McLaughlin

LABOUR chiefs have been forced to resort to auctioning dates with “star” attractions in order to plug gaps in the party’s finances.

The move follows the warning in last week’s Tribune from general secretary-elect Ray Collins that the “parlous” state of funding would mean “no prospect of extended recruiting” before the European or general election.

However, the party is now confident of averting a formal declaration of bankruptcy following the reported intervention of venture capitalist Lord Cohen and former science minister Lord Sainsbury who are understood to have provided temporary support.

A senior sourced told Tribune that the party’s financial accounts are now expected to be signed off by auditors “on the same timetable as last year”.

There were fears that the auditors would refuse to confirm that the party was solvent unless at least £4 million could be found by the end of this month.

Now, at the end of its worst period for raising cash from private supporters for more than 10 years, party officers have launched an auction with prizes including a tennis match with Tony Blair and tea with Nancy Dell’Ollio, the former partner of ex-England football coach Sven-Göran Eriksson.

Other “prizes” include a VIP day at a Formula One grand prix anywhere in the world or a swim with Little Britain star David Walliams who has swum the Channel and the straits of Dover to raise funds for charity.

Bids are currently being taken on the party’s website and the results will be announced at the party’s annual fundraising dinner on July 10, where guests are invited to pay hundreds of pounds a plate in order to share a table with a minister or the Prime Minister.

But the fundraiser will do comparatively little to dent the £24 million debt which is hanging over the party.

Mr Collins, the former Unite assistant general secretary who takes over his new post on September 1, is already working with officials and financial advisers on a new long-term financial strategy to identify “deficiencies and priorities”.

The crisis has left the party at a disadvantage in marginal constituencies where the Tory millionaire Lord Ashcroft has been pumping money into local campaigns.

The Government has announced that it is to change the law on party funding to prevent such targeted spending in between elections, but many MPs fear much damage may already have been done.

A Labour Party spokesman confirmed that the party was out of the immediate danger of being declared bankrupt.

He said: “The auditing process is running to a similar timetable as in previous years and we are planning to file our accounts by June 30 as normal.”