It is not normal for the Treasurer to vote against the
budget, as happened at the Brussels Labour AGM in June. But then it is not normal
for an organisation with an income of €1,650 to decide to spend €4,300.
As the Treasurer in question, I tried to prepare a budget
that didn’t dip too far into the reserves. Our income is falling and even with
the medical emergency our expenses are rising.
What really blew the budget out of the water was a demand to
include €2,000 for various donations. This is possible only because we have
substantial reserves built up from many years of members’ contributions.
Distrust
Underlying the willingness to run down our reserves through
donations is the difficult relationship between the branch and the CLP, Labour
International. This distrust has grown over recent years leading to a them-and-us
outlook which I find unhealthy.
It appears that some members had been seized by the idea
that our reserves could be taken by our CLP, Labour International, and spent in
support of left-wing causes. The alternative, it seems, was to grab the
reserves ourselves and distribute them to other causes.
There was never any prospect of Labour International dictating
our spending priorities. This has now been confirmed by Labour International
and by Party headquarters. The branch is the custodian of its own resources and
the only constraints are those of ethics, its constitution and good financial management.
The first conclusion we should draw from this episode is that
the breach between Brussels Labour and Labour International is a danger to our
ability to run an effective branch for Labour members in Brussels. We must seek
to create a dialogue aimed at finding a modus vivendi and beginning to
restore trust. LI is our channel to the wider Party which we need to keep open.
Rational
My second conclusion is that we need a more rational approach
to financial management.
Our income is down but our costs are rising. In a normal
year, meeting costs, web hosting, Zoom subscription and a John Fitzmorris
lecture already amount to €1,450 which leaves little for social events, campaigning
or annual conference, let alone donations.
We will need the reserves to keep the branch activity going
while we improve the income side. To persuade members to donate we need to
sustain a level of activity that members will value enough to make a financial
contribution.
Brussels Labour should develop a protocol for good financial
governance. A clear set of principles for using branch funds and funds raised
for supporting other bodies is needed. The officers and the Executive of the
branch are the stewards of other people’s money and must uphold high standards
of financial management.
This post is edited from an article which appears in the latest issue of Germinal, the Brussels Labour journal.
