N.L. Liberals fighting debt on road to election

The Newfoundland and Labrador Liberal Party is facing significant financial problems heading into a fall election.

The party has a debt of nearly $600,000 and won't be able to borrow any more money to pay for their election campaign.

Liberal treasurer John Hogan told CBC Thursdayhis party will have to do more with less.

"We have to spread a dollar farther than the Progressive Conservative spread a dollar," he said. "We have to be wise in how we spend out money."

The Liberals have been forced to cut a deal with three banks so they don't have to make payments on theirdebt.Public documents show the party has struggled to raise money, and in 2008-09 it ran a deficit of $50,000.

During thesame period, the Progressive Conservatives came out$672,000 ahead.

The Liberals are turning to corporations for help. "Hopefully these companies realize that donating to opposition parties is just as important as donating to the parties that are in government," Hogan said.

Voters are scheduled to go to polls across the province in October.