Silent Hunter
Junior Chimp
Posts: 9,409
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« on: December 07, 2004, 04:49:46 AM » |
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From yesterday's Times:
December 06, 2004
Tories plunge £15m into red as polls point to loss of faith
By Andrew Pierce
THE Conservative Party has plunged £15 million into debt only six months before a likely general election as the party’s own private polls indicate another catastrophic defeat.
The unpublished polling suggests that Michael Howard’s party will struggle to match even the result of 2001, one of the worst in the party’s history.
The new data flies in the face of statistics compiled by Lord Saatchi, the joint chairman of the Conservative Party, which points to a hung parliament after the next election.
The dire position of the Tories in the opinion polls has had a serious effect on fundraising, with debts now standing at £15 million, compared with a small surplus at the same date in the last Parliament.
The party requires £1 million a month to meet its running costs, but the £1.5 million move from Conservative Central Office in Smith Square to rented offices in Westminster has exceeded its budget.
The party’s overdraft at the Royal Bank of Scotland is £2 million. A further £9 million is owed in loans from benefactors such as Johann Eliasch, the sports tycoon whose wealth is estimated at £345 million. A further £4 million is owed in loans from Conservative associations.
A Tory source said: “The £15 million debt has already been spent; it’s already committed. The party needs to raise £21 million in the next six months, but these private polls show that there’s no reason to be optimistic on any level. Our election prospects are dire.”
Lord Hesketh, the chief fundraiser who is the head of the foundation set up by Michael Howard to raise money, has been moved aside. Lord Hesketh, who is rarely seen at party headquarters, is concentrating on raising money from legacies. The largest burden of fundraising has now fallen on Jonathan Marland, an increasingly influential figure within the treasurer’s department.
Mr Howard increasingly listens to Lynton Crosby, the Australian who masterminded John Howard’s four consec- utive election victories in Australia.
The Tory source said: “It’s going to be hard to generate income unless there is a sharp turnaround in the polls. We are not expecting anyone to call in the loans, but it’s hard to find donors who believe that we can win. There is no petty cash lying around. We’re six months away from the election and we’ve got nothing.”
Before the last election the late Paul Getty gave £5 million, and the betting tycoon Stuart Wheeler a further £5 million. Mr Wheeler, who resumed financial support for the Tories after Iain Duncan Smith was ousted, has given about £500,000 in this Parliament.
The Tories are increasingly reliant on Irvine Laidlaw, a Scottish businessman. He has given £2.5 million since the 2001 election and was one of five Tories who received a peerage last summer.
Under a Conservative government every child would be offered two hours of free coaching at sports clubs each week to encourage exercise and tackle obesity. David Davis, the Shadow Home Secretary, said that the scheme would make up to £250 million a year available to clubs to deliver after-school sport.
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