By VERNON SMALL
The business backlash against Coalition policies has hit the Labour Party where it hurts - in the pocket book.
Outgoing party secretary Rob Allen told Labour's annual conference that although the party showed a surplus of $182,000 in 1999, it was likely that in 2000 it would post its first deficit since 1994.
It had budgeted to receive $350,000 in corporate donations this year, but the hostile business environment had reduced the level of financial support it had received.
But the charm offensive on business, including the Business to Government forum, an e-commerce summit, changes to the tax treatment of research and development spending and an imminent drop in ACC levies, seemed to be reducing the damage.
Mr Allen said a mood change in the business sector was likely to reduce the possibility of a shortfall "given indications from several corporates in the past few weeks."
In 1997, the year following the previous election, Labour received $413,000 from corporates.
"In setting next year's expenditure, it will be vital to decide what level of funding from the corporate sector can be relied on to form part of our budget," he said.
The party's accounts show businesses gave $1.24 million to the party last year, up from $911,000 in 1996. Total party income for 1999 was $2.5 million.
Grumpy firms cut largess to Labour
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