James Callaghan Quotes

[Callaghan] said the Labour Party was not built on dogma and advised his comrades to look at some of the old trade union banners. They would not read ideological texts there, but words like "fraternity, humanity, unity and comradeship".

[There are those in the Labour Party] whose language has become increasingly ideological and intolerant, base their politics solely on texts and creeds, and believe that the drafting of long resolutions will usher in the millennium.

There are times, perhaps once every thirty years, when there is a sea-change in politics. It then does not matter what you say or what you do. There is a shift in what the public wants and what it approves of. I suspect there is now such a sea-change and it is for Mrs. Thatcher.

Many of you younger delegates are experiencing for the first time and seeing for the first time what we grew up with in the Thirties, what brought us into the Labour Movement and what, inciden­tally, will mean that we shall die in the Labour Movement and will never leave the Labour Movement. (Applause) However bad a socialist I may be in the eyes of a great many of our col­leagues, I know why I and many others of my generation were bound to be in the Labour Party. We were determined that the Thirties should not be seen in our lifetime. And...as I see the conditions being repeated once again, the policies being followed once more that we thought we had destroyed forever as the result of the 1930s, I cannot but feel a deep indignation and anger that this generation should be required to go through the things that our generation went through. And I am determined to fight it as hard as I can. (Applause)

5 per cent it is, and I have told the unions that they have all the weapons. We are naked in their presence and we need their co-operation.

For 338 paragraphs the Franks report painted a splendid picture, delineated the light and the shade, and the glowing colours in it, and when Franks got to paragraph 339 he got fed up with the canvas he was painting and chucked a bucket of whitewash over it.

I have not the slightest doubt that the economic measures and the Socialist measures which one will find in countries of Eastern Europe, will become increasingly powerful against the uncoordinated, planless society in which the West is living at present.

We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists, and in so far as it ever did exist, it only worked on each occasion since the war by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step. Higher inflation followed by higher unemployment. We have just escaped from the highest rate of inflation this country has known; we have not yet escaped from the consequences: high unemployment. That is the history of the last twenty years.

But the policies of the 1960s would not be successful today. No more would general import controls.They benefit some home industries at the expense of the livelihood of everyone working in exports. We would be robbing Peter to pay Paul.

Now we must get back to fundamentals. First, overcoming unemployment now unambiguously depends on our labour costs being at least comparable with those of our major competitors. Second, we can only become competitive by having the right kind of investment at the right kind of level, and by significantly improving the productivity of both labour and capital. Third, we will fail – and I say this to those who have been pressing about public expenditure, to which I will come back – if we think we can buy our way out by printing what Denis Healey calls ‘confetti money’ to pay ourselves more than we produce.

You know, as I do, that we face two deep-seated problems, inflation and unemployment. Both of them are still too high. ... I have to emphasize to you that if we fail to bring down inflation, we shall never succeed in overcoming unemployment. We cannot have a prosperous industry in this country if we are unable to sell our goods overseas. No one owes Britain a living, and may I say to you quite bluntly that despite the measures of the last 12 months, we are still not earning the standard of living we are enjoying. We are only keeping up our standards by borrowing, and this cannot go on indefinitely. There is no soft option. I do not promise you any real easement for some time to come. There can be no lasting improvement in your own living standards until we can achieve it without going deeper and deeper into debt as a nation.

Those who advocate devaluation are calling for a reduction in the wage levels and the real wage standards of every member of the working class.

The Soviet Union's propaganda clearly wishes to use public opinion in this country to get the West to reduce its own arms while doing nothing themselves. In this way they would gain nuclear superiority. This is simply not on.

I come to the question of the Governor of the Bank of England, who made [a] speech...[which] was, I thought, a very good exposition of the nature of this country's problems. ... When he came to the question of the rate of wage and price inflation, in which he dealt with the question of unused resources, what he said I agree with. He said: “it is impossible to manage a large industrial economy with the very small margin of unused manpower and resources that characterised the British economy in the 1940s and 1950s.” That is true. ... We must have a somewhat larger margin of unused capacity than we used to try to keep. That is the truth of the matter.

Now that the House of Commons has declared itself, we shall take our case to the country.