The trouble about Europe is what I call the Olive Line, the line below which people grow olives. North of the Olive Line people pay their taxes and spend public money very cautiously. South of it they fail to pay their taxes at all, but spend a lot of public money.

No country would suffer more than Britain from an international trade war, since we depend more on world trade than any of our competitors. That is why we cannot accept the proposal made in some quarters that we should seek to solve our problems through imposing import controls for a long period over a whole range of manufactured consumer goods.

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Austria came to terms with its political and economic disadvantages after the war, jettisoned those parts of its Marxist ideological inheritance which were obviously no longer relevant, and turned a country which in the inter-war years had been suffering from an ex-imperial hangover into a model welfare state, without sacrificing any of its cultural attractions in the process. [I am offering no New Jerusalem], simply a country with stable prices, jobs for those who want them and help for those who need it.

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I start with the measures which the Government announced last Thursday, and which are the immediate occasion of today's debate, and to which the right hon. Gentleman finally came round - a trifle nervously, I thought - after ploughing through that tedious and tendentious farrago of moth-eaten cuttings presented to him by the Conservative Research Department. I must say that part of his speech was rather like being savaged by a dead sheep.

We are going through a period of uncertainty, but we are in a good position to strengthen ourselves and win back a majority. We have already got rid of much deadwood and Kinnock is winning back younger voters. He is politically intelligent, has character and courage; but he has never been a minister, lacks experience, and people know it. In troubled times, the electorate looks for a strong leader and Mrs Thatcher is seen as one.

We are all agreed on a massive extension of public ownership...We are all agreed on establishing comprehensive planning control over the 100 or so largest companies in Britain. We are all agreed on the need for a national enterprise board to organise and extend public ownership in the profitable manufacturing industries.

The central problem of our economy for more than a generation has been that, although our productivity has grown more slowly than that of our competitors, we have seen annual wage increases of the same order as theirs. So our inflation has risen faster than in other countries and we have been able to maintain price competitiveness and full employment only by a series of devaluations which have further added to inflation and increased the pressure for excessive wage increases. In the era of North Sea oil it will be more difficult to devalue our currency to maintain price competitiveness. So unless we can keep wage increases close to the level of productivity increase we shall face rising unemployment and a further erosion of our industrial base.

'The owl of Minerva only flies abroad when the shades of night are gathering.' Speaking for Conservatism, Hegel was right. And nothing proves it better than the post-war crop of Tory intellectuals, sprouting like mushrooms in the damp cellars of Abbey House. Not until the stimuli which originally conditioned Conservative reflexes have finally disappeared can the intellectual emerge to provide a rationale for Conservative behaviour. So Conservative theory must always base itself on some form of historical restorationism. The moderate seeks the world of Joseph Chamberlain—or if he is daring, of Disraeli. The really advanced radical looks still further back, to Prince Rupert, or the Middle Ages, particularly if he is a Catholic.

The upper classes in every country are selfish, depraved, dissolute and decadent. The struggle for socialism in Europe...has been hard, cruel, merciless and bloody. The penalty for participation in the liberation movement has been death for oneself, if caught, and, if not caught oneself, the burning of one's home and the death by torture of one's family. ... Remember that one of the prices paid for our survival during the war has been the death by bombardment of countless thousands of innocent European men and women.

Hugh Gaitskell was absolutely right when he said yesterday that what gets cheers at this conference does not necessarily get votes at elections. If it did we would have won Devonport [the seat which Michael Foot had just lost]. There are far too many people who...want to luxuriate complacency in moral righteousness in Opposition. But who is going to pay the price for their complacency?
You can take the view that it is better to give up half a loaf if you cannot get the whole loaf, but the point is that it is not we who are giving up the half loaf. In Britain it is the unemployed and old age pensioners, and outside Britain there are millions of people in Asia and Africa who desperately need a Labour Government in this country to help them. If you take the view that it is all right to stay in Opposition so long as your Socialist heart is pure, you will be 'all right, Jack'. You will have your TV set, your motor car and your summer holidays on the Continent and still keep your Socialist soul intact. The people who pay the price for your sense of moral satisfaction are the Africans, millions of them, being slowly forced into racial slavery; the Indians and the Indonesians dying of starvation.
We are not just a debating society. We are not just a Socialist Sunday School. We are a great movement that wants to help real people living on this earth at the present time. We shall never be able to help them unless we get power. We shall never get power unless we close the gap between our active workers and the average voter in the country.