Depreciation is levied on Improvements to the Leasehold property and Office equipment such as Computer equipment, Fixtures, furnishings and other equipment. There is a sum of £62,580 in the balance sheet denoting the value of the tangible assets the depreciation is based on.

Note 16.

Current Liabilities. (Balance Sheet.)

The liabilities are broken down under seven distinct headings in order of size:

Bank Overdraft.                                                £481,169.00p

Other Loans.                                                     £282,460.00p

Trade Creditors.                                                 £92,238.00p

Loans from Accounting units.                               £69,137.00p

Obligations under finance leases.                         £28,330.00p

Accruals.                                                           £10,692.00p

Taxation & Social security.                                  £8,336.00p

As you can see the bank overdraft is the largest item which is discussed more fully in note 14. Above. Next come ‘other loans’ which must represent monies loaned to the party by members to help the cause prosper. I have personal knowledge of two such lenders who themselves are old and in fairly straitened circumstances yet cheerfully allow the party use of their funds. Funds which might otherwise have made their lives more comfortable.

Next comes the figure for trade creditors and this is high considering the levels of expenditure. It is possible that this figure represents a cash flow problem resulting in the creditors being paid well in arrears. If so, this is a most unsatisfactory state of affairs especially for a party that wishes to appear ‘Business friendly’ *?*

Loans from Accounting Units (Branches and CA’s) account for the next item. These are probably long term loans and there is no immediate pressure to repay them. The Obligations under finance leases apply to rent, services, equipment leases and the like over the next 12 months. The Accruals are calculated assessments of Bills yet to be charged like power and telephones and I suspect the Auditors fees. Finally the Taxation and Social security which represents the PAYE and NIC contributions to be remitted to the Collector of taxes.

ANALYSIS OF THE PARTY FINANCES.

The first question that is asked is ‘What has gone wrong? There is no simple answer but a number of interlocking problems which have led to this major problem. First of all let us look at membership:

The Membership Figures.

Let us take a look at the membership figures in more detail: In 1968, SNP membership stood at 120,000 fully paid up members and the number of branches were 472. In terms of paid membership, the SNP had become the largest political party in Scotland, Ten years later in 1978 that number had fallen to 28,000 and approx. 450 branches.

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In 2002 the membership had fallen to 16,000 and 255 branches. Now the figure as I learn if from the press is 8,209 spread over 299 Branches, CA’s, sub-branches and affiliated associations. This is a drop of 11 from the previous years total of 310. As there are 8,209 members in the party it becomes painfully obvious that this number is clearly not enough to pull the party back into the black.

The SNP needs more Members, preferably younger, high earning members who can support the cause financially. The fact is, that the membership is aging and does not have the earning power to make such a gift. Unhappily there are branches that are withering on the vine, slowly dying for want of new blood and enthusiasm. Due to poor leadership allowing party morale to collapse, there has been dissent and dis-satisfaction with the leadership. Internal Party discipline has not helped either in the recent cases of members and branches being expelled for questioning party policy or the leader. The decline in membership is indicative of a deeper, more fundamental malaise which reveals itself in:

The Financial Crisis.

To put not too fine a point on it, the SNP is Broke! Annual deficit piles upon annual deficits to the point where it stands at £906,404.00p.[NINE HUNDRED and SIX Thousand, Four hundred and Four Pounds.] . What has gone wrong?

In my view this points to lack of a proper business plan with tight financial controls to keep within the constraints of a limited budget. It is apparent that these problems are the result of profligate spending and lack of controls in previous years under the leadership of Salmond and Russell. There has been a lack of fiduciary care and recklessness in the handling of the party’s finances which has allowed this deficit to snowball out of control.

The Party leaders (The NEC who have collective responsibility) must LEAD in this with a firm grip on the purse-strings at ALL LEVELS FROM THE BOTTOM RIGHT UP TO THE TOP! The Party is clearly living beyond its means and in business terms is technically insolvent. Any firm trading whilst ‘knowingly Insolvent’ would have had its Directors charged with several criminal offences and barred from holding any directorship. If the SNP were a Company then it would have been declared bankrupt long before now. Any Company reporting such losses and financial mismanagement would be facing a very hostile shareholder meeting and the directors ( those responsible) would be clutching P45's in their hands as they get booted out.

We may see this happen at Conference in September as far as I am aware the membership at large do not know the true facts. It is likely that the party leadership have been trying to cover up a 'Black hole' in the accounts. They owe a duty of care to those who have loaned the party monies and especially those who have put up guarantees and securities to aid the party. If the party is wound up then they lose everything and the individuals who have perhaps loaned their life savings for the cause will be left with little or nothing.

They're spending far more than they earn. Remember Charles Dicken's Mr Micawber? "Annual income twenty shillings, Annual expenditure nineteen shillings and sixpence, result Happiness. Annual income twenty shillings, Annual expenditure twenty shillings and sixpence, result MISERY!" This is a message to the NEC and the new leader whoever He or She is. The NEC created this mess. Remember where the buck stops? When stuck in a deep hole...STOP DIGGING! Before things get even worse!

First define the problem?The problems are plain to be seen: Gross incompetence or at the very least, mismanagement. A culture of cronyism, cliques, Bad leadership (or ignorance?) A Control Freak Leader (John Swinney) and his cabal who have turned the SNP into a centralist clone of New Labour. Harsh Stalinist discipline that will not tolerate the slightest dissent. A party which has lost the confidence of the members ,the Business and the financial communities.

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The SNP have severely fragmented and isolated large sections of the nationalist movement with a culture of cronyism that drives talented rivals out into the wilderness. The formation of small ‘Independence’ parties bears eloquent testimony to this waste of effort and talent. Hundreds of thousands of people believe the SNP is out of touch with their aspirations and instead of being ‘Inclusive’ the party has become exclusive, narrow and sectarian.

A Party leadership that is economical with the truth and has a policy of secretiveness in all it does, keeping the ordinary membership in the dark. The abysmally low party morale has revealed itself in falling numbers and bickering members. Plenty of problems there. Yet the party have also painted themselves into a corner with two of their main policies. Suicidal policies such as:

‘Independence in Europe’ which is a real turn off to many Scottish voters, preventing them from voting for Independence. After all they can say with logic on their side, ’why vote to exchange one political master in London for another one in Brussels?’ As one of my Clients said to me yesterday, ‘Why change the cell doors?’ The Voters can see for themselves the vast damage that was done to Scotland’s Steel and Coal Industries. Fishing is under dire threat of collapse, Agriculture, especially crofting and small hill farming interests are being wantonly destroyed and a host of other Scottish Industries are also under threat from unhelpful EU regulations and directives.

Also the Unionists are to be given two bites of the cherry by holding a referendum after the SNP win a majority of seats. It is this policy alone that has disheartened so many patriots and gives the impression that the SNP is not really serious about Independence.

The solution? What can be done?

First ask the membership, They know what is wrong, their morale is at an all time low. In the past 20 years the party has lost more than 110,000 members why? A Leadership that does not listen nor cares about them as they pursue their political careers. People like Campbell martin who try to tell the leadership that there is a problem are savaged and cast into the outer darkness. Martin is not alone, there have been many whistleblowers down through the years who have had the same unfair treatment. The party has stuck its collective heads in the sand in the hope the problems will resolve themselves, but they haven’t. In place of facing realities, Instead the party attempts to sell useless policies which strike no chords with the ordinary voters who want to hear one thing. A CLEAR CLARION CALL FOR INDEPENDENCE!

The people of Scotland want and deserve a clear vision. Many of them desire Independence yet cannot bring themselves to support the SNP due to the fogginess of the current party’s position. Why has no one in the Party listened to their concerns? However there is a hint for those who are prepared to listen. When the SNP was a mass movement in the days before it became a respectable political party, the party had support right across the board.

The movement crossed over all class barriers, definitions such as left or right and policies which caused division were eschewed. The movement was successful and actually raised a petition with over 2 million signatures in the years of the National Covenant Campaign during 1949 to 1951. The Covenant ultimately failed through political naivety but it was a clarion call none-the-less.

I know a great many ordinary ex SNP members and activists and their present disillusionment with the SNP is heartbreaking. Many will no longer vote at all so great is their disgust at this once great party. The party will have to engage with all shades of Nationalism and unite them. Also the Party MUST get rid of ALL the dead wood at the very top, the ones responsible for the mess the party finds itself in. Make a clean sweep and start afresh with a new team and fresh impetus.

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The party really needs a charismatic leader who can rally both wings of the party and unite them. Any new leader must lead from the front by personal example and not by ordering the members what to do as happens at present. Be honest with the members, be truthful, can the party leadership bring themselves to admit that they got it wrong? Scrap these new centralist reforms of the party structure. They are designed to place the power in the hands of the political elite and not the members.

The party has been badly damaged by centralisation, so the first task is to Rebuild the party structure. Listen to what the grass roots have to say and ACT on it. There are many of us outside the party who can no longer support it having been cast out into the outer darkness ourselves because we do not agree with the pet policy of the moment or our faces not fit in with the new party image.

The party has to reconnect with us and draw us all back into the fold. If necessary shoot a few of the sacred cows like ‘Independence in Europe’ and the referendum on Independence. Let the people of Scotland decide their future after Independence has been gained. Not have the decision made for them by the party’s elite. We can all debate metaphysics until the cows come home and discuss how many angels can stand on the head of a pin if we wish, but; without Independence it’s a waste of energy and breath.

So the first thing to do is forget political labels, ‘left’ or ‘right’ and meaningless terms such as ‘fundamentalist’ or ‘gradualist’. Next get the small splinter groups and the other party’s who favour Independence to unite under the Independence banner by hosting the Independence convention which the last SNP leader attempted to quash through sheer disinterest. Resurrect the National Covenant to mobilise the whole of Scotland towards Independence.. Holyrood has been very successful in taking the momentum out of the movement, that has to be regained.

The Party must start giving real leadership to ordinary Scots, lead them to Independence, not waffle on about it! Stop taking the Government ‘Policy development Grant’ bribe that castrates the messenger and the message. Stand up for Independence alone without which all else is cosmetic frippery. Then really pull all shades of Nationalism together towards one single goal.

To do this, it is necessary to sort out the finances quickly. Membership has to be increased to ensure adequate funding. With a new National Covenant movement the party numbers will inevitably increase and the SNP should be aiming to recruit at least 60,000 new members in addition to those joining the National Covenant.

With numbers will come financial security and the means to properly organise the Independence campaign. Each member giving what they can afford in line with their incomes. This would be flexible, the pensioner paying less than the salaried worker. Let us examine the situation if the party should recruit 30,000 new members over the next 12 months.

This little table shows what is possible:

10,000 members paying a minimum of £10 per annum.                       £100,000.00p

10,000 members paying a minimum of £25 per annum.                       £250,000.00p

10,000 Members paying a minimum of £60 per annum.                       £600,000.00p

Total (Payable monthly by direct debit or otherwise)         £950,000.00p

That is the deficit wiped out within a year and each year thereafter a fighting fund can be built up. Well led and motivated patriots will soon provide the party with fighting funds. It can be done and it will be done! Will the SNP reconnect with the fragmented remains of the nationalist movement and unite it? Only time will tell.