The answer is to increase industrial efficiency, to build up our exports, and to substitute home production for imports wherever this can be achieved competitively and economically, to broaden the base of our economy with capital investment, through the training of skilled manpower and the encouragement to accept change, to enable us to expand without running into strains and stresses such as have revealed themselves in past periods of expansion.

Let us not be afraid to express the passionate concern everyone of us feels about present housing conditions. ... This is a problem which brooks no escape, no evasion. It is no use talking about a free market: the provision of decent housing for all is a clear and inescapable obligation of government.

You need men with fire in their bellies and humanity in their hearts. The choice we offer, starting today, is between standing still, of clinging to the tired philosophy of a day that is gone, or moving forward in partnership and unity to a just society, to a dynamic, expanding, confident and above all purposive new Britain. ... The spirit of 1945 is in the air again.

They [the Conservatives] cannot think beyond outmoded techniques of monetary regulation, followed by panic stop-go-stop measures, when bold planning for industrial expansion is called for. They cannot raise their eyes beyond a system of society where making money by whatever means is lauded as the highest service, while earning money by contributing to production and exports, or teaching or nursing is a mug's game. An Opportunity State for all our people? The Conservatives glory in one where the rewards go to land racketeers and property spivs, while the man who ventures his skill in scientific or technological advance, or in the chancy risks of export markets, is left out in the cold.

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In all our plans for the future, we are re-defining and we are re-stating our Socialism in terms of the scientific revolution. But that revolution cannot become a reality unless we are prepared to make far-reaching changes in economic and social attitudes which permeate our whole system of society. The Britain that is going to be forged in the white heat of this revolution will be no place for restrictive practices or for outdated methods on either side of industry.

The period of 15 years from the last time we were in Scarborough, in 1960, to the middle of the 1970s, will embrace a period of technical change, particularly in industrial methods, greater than the whole of the industrial revolution of the last 250 years.

We all know perfectly well why the Government are standing by their policy of the independent deterrent. The reason is simply prestige, keeping up with our nuclear neighbours. Frankly, we cannot do it. The Americans spend on research alone £2,500 million a year, which is half as much again as our total defence budget, and it is rising rapidly. We can only be a nuclear Power if we can afford the means to produce twenty or more alternative weapons as an assurance against the many which are certain to fail. Out of our resources, we were able to afford only one intercontinental ballistic missile, and that was Blue Streak. The failure of Blue Streak was the moment of truth for this country so far as the independent deterrent was concerned. To cling to the policy after that was...like the action of a rather pathetic sort of man who cannot afford a television and who cannot bring himself to admit the fact, so he puts up the aerial instead.

I have stated these Commonwealth problems in terms of hard economic facts, but I should be the last to disagree with those hon. Members on both sides of the House who put the problem in yesterday's debate in terms more of sentiment, kinship and bonds of a less materialistic character than those that I have been describing. … I submit to the House that we cannot consistently with the honour of this country take any action now that would betray friends such as those. … if there has to be a choice [between the Commonwealth and Europe] we are not entitled to sell our friends and kinsmen down the river for a problematical and marginal advantage in selling washing machines in Dusseldorf.

A second devaluation would be regarded all over the world as an acknowledgement of defeat, a recognition that we were not on a springboard, but a slide. I myself have always deprecated—perhaps rightly, perhaps wrongly—in crisis after crisis, appeals to the Dunkirk spirit as an answer to our problem, because what is required in our economic situation is not a brief period of inspired improvisation, work and sacrifice, such as we had under the leadership of the right hon. Member for Woodford (Sir W. Churchill), but a very long, hard, prolonged period of reorganisation and rededication. It is the long haul, not the inspired spurt, that we need.

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Traders and financiers all over the world had been listening to the Chancellor. For months he had said that if he could not stop the wage claims, the country was "facing disaster". Those were his own words. Rightly or wrongly these people believed him. For them, 5th September—the day that the Trades Union Congress unanimously rejected the policy of wage restraint—marked the end of an era. And all these financiers, all the little gnomes in Zurich and the other financial centres about whom we keep on hearing, started to make their dispositions in regard to sterling.