The Canberra Liberals have admitted that they can no longer afford to employ full-time staff as the party struggles with debts in the hundreds of thousands of dollars.
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General secretary David Connolly has told members that ''for financial reasons'' the party's Civic headquarters will be manned by volunteers and they must prioritise fund-raising.
The Liberals' creditors are understood to be growing impatient, with Australia Post alone owed more than $100,000, a sum disputed by party executives. The party also has an overdraft with St George Bank of more than $300,000.
Few of the party's 650-strong members are aware of the scale of the debt. The revelation will add to pressure on the management team already facing internal criticism for its handling of the ugly preselection.
While internal brawling continues over the party's Senate ticket, there is growing concern about funding for the federal election campaign.
Senate candidate and former local leader Zed Seselja has told members that although he wants to see more of them eligible to vote at preselections, they should not support a fresh ballot for the number one spot on the Senate ticket.
The Liberals took in about $646,000 in the 2011-12 financial year and declared record party spending of $736,000 for their 2012 election campaign.
Now Mr Connolly has advised that the party must shed its paid workers. ''For financial reasons, we have chosen not to have a full-time general secretary, nor keep on staff the excellent people who worked so hard to achieve such a good result at the recent territory elections,'' the former federal MP wrote.
''Consequently, for the next few months we will be dependent upon willing and able volunteers to help at divisional headquarters.''
He said the party's fund-raising arm, The Deakin Forum, will be reconstituted to raise money to fight September's federal election.
''Raising funds for the next campaign must remain a high priority in all divisional planning and at branch level,'' Mr Connolly wrote.
''The Deakin Forum will be activated and, if possible, I would like to see a new chairman appointed.''
Mr Seselja's preselection victory over incumbent senator Gary Humphries will face a challenge in a party meeting on Wednesday.
In an email to members Mr Seselja has urged them not to support a motion to overturn the preselection and hold a new vote. That could see a turnout of double the 198 members who cast their ballots on February 23. ''It would undermine our constitution, as it would mean that valid preselections would be subject to challenge at any time, for any reason,'' he wrote. ''It would almost certainly lead to weeks or months of disruption and negative publicity for the Liberal Party, just as we have seen over the past six weeks.
''I think we should acknowledge the need to review our constitution to ensure that members have the maximum ability to vote at preselections.''
The party has changed the venue for Wednesday's divisional council meeting amid concerns that the room at the Pavilion Hotel would not be big enough for up to 400 members who are expected.
The meeting will now be held at the Canberra Rex Hotel on Northbourne Avenue.