CONTROVERSIAL Downing Street aide John McTernan is to take a senior role in shaping Labour's campaign for next year's Scottish parliamentary elections.
From January, Mr McTernan, Number 10's director of political relations, will be spending three days a week working on the Scottish campaign.
Last week, Mr McTernan was accused by a number of Labour MPs of attempting to do a back-door deal with Hayden Phillips over his review of party political funding. Sir Hayden has proposed a cap of £50,000 on donations from individuals and trade union restrictions on affiliations. If implemented, this would effectively break the unions' link with Labour
Sir Hayden's proposals are at odds with Labour policy, reaffirmed at an emergency meeting of the party's National Executive Committee last Thursday (December 14), which supports a cap on overall spending at a national and local level but no cap on
individual donations.
At a meeting of the parliamentary committee last Wednesday (December 13), Prime Minister Tony Blair made it clear that he does not support Sir Hayden's
proposals. He said: "Hayden Phillips needs to recognise that trade union funding is already highly regulated. He is proposing a model where trade unionists opt into paying the levy. That is unacceptable to the Labour Party."
Despite this Mr McTernan spoke enthusiastically about Sir Hayden's proposals at a drinks reception later the same day. He said that the plans, which would require both the Labour Party and the unions to ensure every year that each individual remained happy to pay into their union's political fund and pay their £3 affiliation fee to the Labour Party, "would strengthen the link". Asked about the cost Labour would incur in the check-off system, he said this could be done for virtually no cost "through email".
It is not yet clear exactly what role Mr McTernan will play in the Scottish elections. A Scottish Labour Party spokesperson said: "A number of people are running the campaign, led by Jack McConnell [First Minister]. I don't want to comment on any individual in the campaign."
Mr McTernan was chief of staff to former First Minister Henry McLeish, who was forced to resign after the discovery of irregularities concerning his office expenses. In 1999 he wrote Labour's manifesto for the first elections for the Scottish Parliament. Next May's elections north of the border could prove highly problematic for Labour. The party's support has dropped and some opinion polls have predicted that the Scottish National Party could emerge as the largest party. Mr Blair's unpopularity is one factor damaging Labour's electoral prospects.
Senior party officials have speculated that Mr McTernan will look for a parliamentary seat while he is in Scotland, joining those involved in the "phoenix strategy" - the clutch of Blairite advisors seeking to become Labour MPs at the next general election. However Mr McTernan denies this. He said: "It is not true. It is idle gossip."
Westminster selections in Scotland will not start until after May's elections. There could be up to half a dozen seats where Labour MPs decide to retire.