Tories study proposals to privatise work of party HQ

THE TORIES are considering privatising part of their headquarters in Smith Square, central London, under cost-saving measures being carried out by Archie Norman, the deputy chairman and former boss of the Asda supermarket chain.

Conservative Party sources confirmed last night that they were considering privatisation of the management of party headquarters, with its membership organisation, fund-raising through membership fees and clerical services.

"There is a precedent for this. We have already privatised our conference arrangements," the source said.

Conference arrangements were subcontracted to a company specially set up to carry out the work. Mr Norman welcomed proposals by Graham Mather, the Tory Euro-MP, to privatise Conservative Central Office as "an interesting contribution to this vital debate". Mr Norman said: "The reforms of Central Office have one goal, to create a world-class political campaign centre."

Mr Mather has warned that cutting staff might "demoralise and concern remaining staff left fearful for their own futures". He also suggested that the party's spin doctors in the press office should be privatised, along with the development of policy by the research department. But the party source said that these two tasks are unlikely to be put in private hands. "We would have to be sure of the security around policy," he said.

The party is advised by two separate Tory sources to embrace a policy of Lords reform, and to avoid being made to seem reactionary by the Government's proposed changes to the Upper House.

Conservative leaders have criticised the Government for failing to put forward reform proposals beyond removing the right of hereditary peers to sit and vote in the House.

Andrew Tyrie, Tory MP for Chichester and a former Treasury adviser, and Nick Kent, of the Tory Reform Group, have called for the party to support an elected upper chamber.

Mr Kent said the Lords should be cut to 350 seats with more than half elected regionally for a nine-year term, 91 appointed as life peers, the 26 seats for bishops and archbishops from the Church of England should be reduced to 20, 12 seats should be allocated to other religions, five should go to members of the British Overseas Territories, and 50 should be non-voting hereditary peers. Mr Tyrie says in a paper for the Conservative Policy Forum: "A second chamber with a democratic element is the best way forward and probably only direct elections would do. There will still be a place in such a chamber for a small number of distinguished non-party nominees."