For too long, perhaps ever since the war, we postponed facing up to fundamental choices and fundamental changes in our society and in our economy. This is what I mean when I say we have been living on borrowed time. For too long this country – all of us, yes this Conference too – has been ready to settle for borrowing money abroad to maintain our standards of life, instead of grappling with the fundamental problems of British industry. Governments of both parties have failed to ignite the fires of industrial growth in the ways that countries with very different political and economic philosophies have done.

[Callaghan] said the most hateful slogan that he had heard recently, made at a protest march, was "What do we want? Everything! When do we want it? Now!" That was not socialism but fascism. There are too many of these people who have infiltrated this party already. Get them out!

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I do not want it to be thought that I believe the constitution is unchangeable or is perfect. It is not. We are an evolving Party. We can change it. But changes have got to be made against a different atmosphere from the present one. We have got to get away from this. For pity's sake, stop arguing. The public is crying out for unity in order to get rid of the Thatcher Govern­ment. (Applause)

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.

When I was young, we didn't discuss abortion or homosexuality. What I think most people feel is that we don't want all these particular areas to be aggressive when there is a feeling of tolerance of them which is generally understood and accepted. But if they become aggressive in minority interests...that is something I feel many people – and certainly I myself – recoil from. ... [The] nuclear family is the most loving you can have.

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.

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I think that it came as a surprise, if not a shock, to most people, when that notorious advertisement appeared in The Times in 1967, to find that there is a lobby in favour of legalising cannabis. ... The existence of this lobby is something that the House and public opinion should take into account and be ready to combat, as I am. It is another aspect of the so-called permissive society, and I am glad if my decision has enabled the House to call a halt in the advancing tide of so-called permissiveness. I regard it as one of the most unlikeable words that has been invented in recent years.

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.

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.

David Rose (ITN reporter): Industrial relations and picketing. What about the TUC putting its house in order?
James Callaghan: The media's always trying to find what's wrong with something .. Let's try and make it work.
Rose: What if the unions can't control their own militants? So there are no circumstances where you would legislate?
Callaghan: I didn't say anything of that sort at all. I'm not going to take the interview any further. Look here. We've been having five minutes on industrial relations. You said you would do prices. I'm just not going to do this .. that programme is not to go. This interview with you is only doing industrial relations. I'm not doing the interview with you on that basis. I'm not going to do it. Don't argue with me. I'm not going to do it.

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Peace-or-war, not cost-of-living, was the most important issue at the election. He did not believe that peace with Stalin would be easy to achieve. Some delegates seemed to think it was all a matter of “getting together with Joe.” Had they forgotten their Marxism, and its interpretation of history. That was what they were dealing with, not Uncle Joe.