Income €1,650. Expenditure €4,300. For How Long?

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.