Labour is broke and out of ideas as well

It is of no surprise to me that Labour is essentially broke.

I have been saying it for years. Their union paymasters are actually as parsimonious as they are controlling.

After Mike Williams they have had a series of Presidents and General Secretaries (including Andrew Little) who thought that fundraising was beneath them and now they find they are out of time, and out of cash.

The Labour Party has run at a deficit for at least two years, forcing it to dip into its cash reserves and highlighting one of the problems the party faced in last year’s election.

A copy of the party’s financial report obtained by the Herald shows it recorded a $71,373 deficit in 2014 and an even larger $104,915 deficit the year before, a shortfall president Professor Nigel Haworth put down to the costs of byelections and its leadership contests.

That resulted in a $117,410 drop in its cash reserves ($612,378) and the value of its net assets dropped from $270,000 to $199,000. Those assets include about $500,000 in property.

After last year’s election, a review of Labour’s performance raised fundraising as a priority, saying the party risked ongoing “electoral failure” if it could not raise more money.   

Yesterday, leader Andrew Little denied it was embarrassing that Labour was in deficit despite criticising the Government for its deficits.

“The Government is accountable to all the people, all the time and should conduct themselves appropriately.

Political parties are accountable to their members and should conduct themselves prudently, but over the long term.”

However, he said, it “absolutely” highlighted the need to focus on fundraising.

“There is no question about that. A singularly poor point of our organisation’s performance is fundraising.”

Andrew Little is part of the problem, he raised bugger all money when he was President, and even less now he is leader.

In order to fundraise though you have to look like you have some political solutions and right now Labour looks out of touch, out of ideas and as a result they are out of money.

Hugging criminals, bludgers and drop-kicks won’t open donors’ wallets.

He said one of the reasons for the shortfall was the cost of the leadership contests in 2013 and 2014. The report shows they cost the party about $60,000 each, although it recouped about $30,000 in donations each time.

In 2013, it spent $104,000 on the Christchurch East and Ikaroa-Rawhiti byelections – a similar amount as the deficit for that year.

The report also shows the costs of running the party are just over $1 million a year, of which about $500,000 was in staff remuneration. A significant chunk of its revenue came from levies on the affiliated unions, MPs and local electorate branches which totalled $636,000 last year.

That situation isn’t going to improve anytime soon. There is likely to be a by-election in Mt Roskill, it is rumoured that one could be on the cards for Mt Albert too. And of course there is also likely to be yet another leadership spill in the next 12 months.

No wonder caucus is getting restless, they are sick of being tithed to fund the  party, which has shown itself to be tits at everything.

 

– NZ Herald


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

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