NEWS: Memo leak reveals M&C Saatchi’s pounds 1m Tory campaign fee

M&C Saatchi is set to be paid a fee of more than pounds 1 million for its pounds 10 million campaign for the Conservative Party in the run-up to the general election.

M&C Saatchi is set to be paid a fee of more than pounds 1 million for

its pounds 10 million campaign for the Conservative Party in the run-up

to the general election.



An agency fee of pounds 1,020,000 for the period running from this month

to May 1997, when John Major plans to hold the election, is disclosed in

a Tory campaign budget which was leaked to Labour’s election strategist,

Peter Mandelson.



Tory insiders confirmed the proposed fee marked a shift from the

previous system under which both the Tories and Labour paid agencies a

token fee between elections knowing that they would pick up commission

of about 15 per cent on a three-week campaign spend of between pounds 2

and pounds 3 million.



The leaked document, which the Tories say they have not yet approved,

proposes a poster blitz costing more than pounds 7 million, starting

with a three-month campaign from 1 July with the theme ‘new Labour, new

danger’.



The rest of the pounds 10 million budget is accounted for by party

political broadcasts, the agency fee and VAT.



The leaking of the document, written by Steve Hilton, account manager on

the Tory business, has embarrassed the Tories and led to a tightening of

security at both M&C Saatchi and Conservative Central Office.



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