Letter to Mr Alex Rowley, General Secretary,
Scotland, from Mr David Pitt-Watson, Director of Finance, The
I am writing to confirm our understanding of how
we will finance the campaign for the Scottish Parliamentary Elections
1. The total cost of the campaign is estimated
at £1,398,618 as shown in the attached budget (Appendix 1).
2. The Scottish General Secretary can vary
the type of spend within this total figure. This will give
flexibility to change the way we fight the campaign. However,
the total budget is fixed and, in consequence, any expenditure
which is approved which is not budgeted for will need to
be accompanied by a similar reduction in the budget for an approved
category of spend.
3. You will be responsible for a system
of expenditure approval which will ensure that no expenditure
is committed unless it has been properly authorised. In addition
to the procedures discussed with Ann-Marie, I would strongly recommend
you write to all major potential suppliers telling them who is
authorised to commission work from them, and that we will not
accept liability for any other expenditure.
4. Any spending beyond £1,398,618 must
be approved both by the Scottish General Secretary and
the senior management team of the UK party.
5. It is assumed that £42,000 of the
campaign costs will be covered by assistance from MPs and MEPs.
This leaves an outstanding cost of £1,356.618. In the event
that these funds are not forthcoming, the costs will be shared
on an equal basis between the Scottish and the UK party.
6. This cost will be borne between Scotland
and the UK party on an equal basis. This means that the UK party
anticipate a transfer of £678,309 to support the Scottish
campaign, £678,309 will be raised by the Scottish party.
7. Clearly there may be some funds raised
by the UK party as the result of the Scottish campaign. Where
such earmarked fundraising does take place, we will discuss with
you how it should be allocated between Scottish and the UK parties.
8. In the event that the Scottish Party
is successful in raising more than £678,309, half of the
surplus will be applied to reducing the contribution from the
9. In the event that the Scottish party
is unsuccessful in raising £678,309, the UK party will pay
for half the difference, and will loan the other half to the Scottish
party. The Scottish party will not borrow monies from third parties.
10. In the event that the final cost of this
campaign is more or less than the budgeted figure of £1,356,618,
the cost/benefit will be shared equally by the Scottish and UK
11. In the meantime, the Scottish party requires
finance. I have created a schedule of the financial requirements
of the Scottish party, based on the agreed budget. I have assumed
that the Scottish party is solvent until the first of September,
and have assumed that its fundraising from major donors, trade
unions and sponsorship has the following pattern:
The schedule of cash required is shown as Appendix
12. Could you please review this schedule to
ensure that this will adequately meet your cash flow needs.
I hope that this meets everyone`s requirements for
the funding of the campaign, and am delighted at the co-operation
we have enjoyed so far between Millbank and Kier Hardie House.
I know, however, that finance is inevitably an area where disagreement
can occur if the key players are not fully on board. For this
reason I think it would be a good idea if all the key players
were to sign this letter and return it, as a token of their agreement
to these arrangements.
|Agreed by UK General Secretary
|Scottish General Secretary
|Leader of Campaign
||[Signed]||(Helen Liddell MP)
13 August 1998