GMB slashes Labour cash Kevin Maguire Wednesday July 18, 2001 The Guardian Tony Blair's drive to privatise public services provoked its first concrete backlash yesterday when the GMB union slashed its funding of the Labour party by �1m. The general workers' union, one of the biggest affiliated to the party, is to cut support by �250,000 a year over the next four years in protest at the prime minister's uncompromising stand. Financial support for MPs in 100 constituencies, which each received around �5,000 at the last election, is also to be reviewed in a move which could see leadership loyalists punished. Other unions are threatening to follow the GMB's line as opposition grows over government proposals to extend the private finance initiative and invite firms to provide health and education services where Mr Blair believes they would be more effective than the public sector. Unison, Britain's biggest union which pays Labour �1.36m a year, is reviewing its links with the party and intends to launch a campaign to fight the proposals. The slogan "Sign up to Unison's campaign to keep public services public" is to be hung from a bridge during the party's annual conference in Brighton. GMB officials said the union's traditionally loyalist 80-strong executive voted unanimously to reduce funding by �1m and reduce its affiliation level after Mr Blair claimed on Monday it was "reform or bust" for public services. "I did not spend four weeks standing on doorsteps, ringing bells and delivering leaflets to be stabbed in the back," said an executive member. The GMB, which has 750,000 members, will reduce funding from �650,000 a year to �400,000 with the difference to be spent on harrying Mr Blair and ministers with rallies, adverts and protest postcards. A Labour aide claimed the union would undermine its influence over the party as a result. The government also faced opposition yesterday from backbench Labour MPs as they queued up in the Commons to savage the plans. David Taylor, MP for Leicestershire NW, said: "PFI truly is prohibitive in cost, flawed in concept and intolerable in consequence for taxpayers, citizens and workers." Kelvin Hopkins, MP for Luton North, said PFI was "irrational nonsense" that was less popular than the poll tax, while Hackney North colleague Diane Abbott criticised the government's "obsessively ideological approach". Full article at: http://www.guardian.co.uk/guardianpolitics/story/0,3605,523429,00.html Michael Keaney Mercuria Business School Martinlaaksontie 36 01620 Vantaa Finland [EMAIL PROTECTED]
