It would be a mistake to think...that by what we are doing tonight we are giving a vote of confidence or congratulation to homosexuality. Those who suffer from this disability carry a great weight of loneliness, guilt and shame. The crucial question, which we are nearly at the end of answering decisively, is, should we add to those disadvantages the full rigour of the criminal law? By its overwhelming decisions, the House has given a fairly clear answer, and I hope that the Bill will now make rapid progress towards the Statute Book. It will be an important and civilising Measure.

...one should not doubt that there is in Britain a great body of moderate, rather uncommitted opinion, and that unless substantial sections of such opinion can feel happy in supporting one or other of the major parties the result will be an intolerable strain upon the traditional pattern of politics. ... The stalemate will not be broken unless and until we can move over to the Labour Party a sizable part of this potentially progressive, but non-extreme opinion. I do not think that has happened yet.

My central belief is that there are only two coherent British attitudes to Europe. One is to participate fully in all the main activities of the Union and to endeavour to exercise as much influence and gain as much benefit as possible from inside. The other is to recognise that Britain's history, national psychology and political culture may be such that we can never be other than a foot-dragging and constantly complaining member. If so, it would be better, and certainly would produce less friction, to accept this and to move towards an orderly and, if possible, reasonably amicable withdrawal.

We must restore some stability and be prepared, if necessary, to make some sacrifices, both of dogma and materialism, to achieve it. There is no point in pretending that we are not facing an economic crisis without precedent since the growth of post-war prosperity.

Not to have gone into Europe would, in my view, have been a misfortune. But to come out would be on an altogether greater scale of self-inflicted injury. It would be a catastrophe. ... I care very much about the influence of Britain in the world, and also about our capacity to control our own destiny. To me, that is much more important than the legalistic definition of sovereignty.

Do we really believe that we have been more effectively and coherently governed over the past two decades than have the Germans, with their very sensible system of proportional representation? The avoidance of incompatible coalitions? Do we really believe that the last Labour Government was not a coalition, in fact if not in name, and a pretty incompatible one at that? I served in it for half its life, and you could not convince me of anything else.

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We have been building up, not dissipating, overseas assets. The question is whether, while so doing, we have been neglecting our investment at home and particularly that in the public services. There is no doubt, in my mind at any rate, about the ability of a low taxation market-oriented economy to produce consumer goods, even if an awful lot of them are imported, far better than any planned economy that ever was or probably ever can be invented. However, I am not convinced that such a society and economy, particularly if it is not infused with the civic optimism which was in many ways the true epitome of Victorian values, is equally good at protecting the environment or safeguarding health, schools, universities or Britain's scientific future. And if we are asked which is under greater threat in Britain today—the supply of consumer goods or the nexus of civilised public services—it would be difficult not to answer that it was the latter.

It is not some malevolent quirk of international bankers which makes the balance of payments surplus necessary. It is the hard facts of life. Quite a few of the resolutions mention the need to get rid of the shackles of international finance. These shackles can be exaggerated. If you want less to do with bankers and fewer International Monetary Fund visits the answer is straightforward: Help us to get out of debt. It is no good urging independence and denying policies to that end.

There has always been a left, an extreme left, in the Labour Party. ... there is now more of an attempt, patchy, but an attempt by extremist organizations to infiltrate and work through the Labour Party at the present time—the phrase is 'entryism'. It is something which is certainly there and which one certainly has to beware of.

Our determination to ensure good community relations is unswerving. There is no room for racial hatred in our crowded island. We cannot afford not to make a success of a multi-racial society. A moving speech was made the other day in the other place by Lord Pitt, himself a distinguished citizen of London of West Indian origin. In that speech, he looked forward hopefully to a harmonious multiracial Britain setting an example to the world. He spoke on a high level of moral seriousness, but reminded us too that our self-interest is also served by racial harmony and tolerance. I agree with that view, and would share Lord Pitt's hope, but I do not see it as an easy or even a certain outcome, at any rate in this generation. Its accomplishment will depend on the minority community accepting that this country will not take, in Lord Pitt's own words, a "large and unending stream" of dependants, and on the majority community accepting that tolerance is one of the greatest and most traditional of British virtues and that if that tradition is broken we shall all of us suffer deeply, both minority and majority, and suffer for many years to come.

I am in favour of sensible, well argued extensions of public ownership. ... But I am also in favour of a healthy, vigorous and profitable private sector. We do and shall depend upon it to provide a great part of our jobs, our exports and our production. And if we allow a mood of sullen uncertainty to build up in that sector we shall lose more than we shall gain by the sensible and necessary extension of the public sector.

My view is that the Prime Minister [Tony Blair], far from lacking conviction, has almost too much, particularly when dealing with the world beyond Britain. He is a little too Manichaean for my perhaps now jaded taste, seeing matters in stark terms of good and evil, black and white, contending with each other, and with a consequent belief that if evil is cast down good will inevitably follow. I am more inclined to see the world and the regimes within it in varying shades of grey. The experience of the past year, not least in Afghanistan, has given more support to that view than to the more Utopian one that a quick "change of regime" can make us all live happily ever after.

They [the Government] argue that if the rich are made rich enough, some wealth will spill over to make the poor less poor. There is no sign of that happening. On the contrary, the gap has widened. The number of those below the poverty line and with little hope of rising above it has grown inexorably. Connected divides become deeper and wider—that between the employed and the unemployed, that between the north and south, and that between those who share prosperity and those to whom it looks like a closed fortress. The Budget...does nothing to counteract that. ... If I were the Chancellor, I would be deeply apprehensive for the future cohesion of our society under his policies.