Posted on 03/23/2006 2:21:30 PM PST by snuffy smiff
Debt crisis may force Labour to sell HQ
HAMISH MACDONELL
SCOTTISH POLITICAL EDITOR
LABOUR is on the verge of selling off its Westminster headquarters in an attempt to head off a financial crisis.
Senior party figures are close to agreeing a sale of the party's Old Queen Street building, which could bring in £6 million or more.
With the party currently renting office space in Victoria Street, such a move would leave Labour with no real property assets in the capital.
But the decision has been forced on Labour because of its huge debts, brought about by expensive election campaigns. The extent of the party's total debt will not become public until June, but it is understood it could be as much as £25 million.
Labour leaders thought they had managed the debt by borrowing from rich supporters, but after the "loans for peerages" scandal, many of these loans are being called in, leaving the party desperate for new sources of finance.
A Labour spokesman refused to confirm or deny reports it was close to selling its Old Queen Street building, but it is understood the party's National Executive Committee discussed the sale this week.
The Scottish Labour Party has already got rid of its property assets in Glasgow, selling its headquarters in Lynedoch Place in 1998. It is now renting space from the Amicus union in the city centre.
However, given the Chancellor Gordon Brown's attempts to get the public to save and invest for the long-term, it would be both embarrassing and ironic if Labour had to sell off its last remaining multi-million-pound asset at the same time.
The SNP has already gone down this route, selling its headquarters in North Charlotte Street, Edinburgh, for £300,000 to cover debts built up during the 1999 Holyrood election campaign.
Labour managers had hoped yesterday's Budget would deflect attention from the "loans for peerages" scandal, but they had to cope with further problems.
At least three of the 12 businessmen who have made secret loans to Labour are understood to want the money returned, although one has pushed back the repayment deadline to give the party more time to raise the money.
The stockbroker Barry Townsley has agreed not to call in his £1 million loan until 2008 - after an appeal from the party.
Meanwhile, Dr Chai Patel, the founder of the Priory clinics who loaned the party more than £1.5 million, said he had no plans to call his loan in immediately.
Labour's problems stem from its arrangements to borrow cash from wealthy backers at commercial rates - allowing the funding to be kept out of public records of donations.
But yesterday, Tony Blair, the Prime Minister, insisted in the Commons that Labour had not broken any rules.
He said he was "proud" Labour had the support of successful businessmen and entrepreneurs, and he urged opposition parties to reach a consensus with Labour on party funding.
"We've abided by the party loans rules completely," he said, adding that Labour had named the dozen millionaires who bankrolled its 2005 General Election campaign, while the Tories had still to declare the names of their lenders.
The Electoral Commission wrote to the treasurers of the main parties this week to say they should make public any loans that were not fully commercial. This has been supported by two millionaire Tory backers, who urged fellow businessmen to come clean about their secret loans to the party.
The Tories amassed up to £20 million in loans before the election, but their treasurer, Jonathan Marland, refuses to name those involved.
Yesterday, the property developer Roy Richardson, who with twin brother, Don, built a fortune from shopping centres in the Midlands, revealed he had loaned £1 million to the party. He said he had "nothing to hide" and urged others to follow his example. He also revealed he had donated an extra £100,000 two weeks ago to help the Tory leader, David Cameron, "provide strong opposition" to Labour.
The spread-betting tycoon Stuart Wheeler, who has donated £5 million, also said the Tories should "strongly encourage" lenders to identify themselves.
Just more proof that one cannot trust a lib, anywhere...
Are these guys stupid? As any leftist knows, whenever one source of money dries up, steal it from somewhere else. The taxpayer is always a good bet.
Ah man! My heart bleeds.
oh it keeps getting better-check this out:
http://news.scotsman.com/topics.cfm?tid=478&id=450442006
more articles like: Blair facing fresh turmoil as lenders demand cash back
and: Labour cash lender wants off 'peer list'
(a whopping 29 pages of articles!)
It seems there was something like 14 million ponds in "secret" donations given. And Blair is catching heat for it.
oh it keeps getting better-check this out:
http://news.scotsman.com/topics.cfm?tid=478&id=450442006
more articles like: Blair facing fresh turmoil as lenders demand cash back
and: Labour cash lender wants off 'peer list'
(a whopping 29 pages of articles!)
It seems there was something like 14 million pounds in "secret" donations given. And Blair is catching heat for it.
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