...we must recognise that the greatest threat to the cohesion of our society today is the still increasing rate of inflation. ... We are approaching … - Roy Jenkins

No one contemplating the present position and looking back at the whole series of vicissitudes which has beset the British economy throughout the past 20 years can find the prospect other than very difficult at present. But I believe that there is also a great opportunity at present. There is certainly no quick, easy road to prosperity for this country, but the changes which must be made are fairly marginal. They must be made with absolute determination, but if they are so made, and accepted by the people, the whole outlook can change. The Government can only provide the right framework. Unless they do that, our national energies will be misdirected, but once they have done it the opportunities for export and growth and efficiency must be seized by everyone. There will still be two years of hard slog ahead. But at the end of it we could have a more securely-based prosperity than we have known for a generation.

I find it increasingly difficult to take Mr Benn seriously as an economics minister.

Several fallacies have been accepted too freely recently about the position of our manufacturing industry in the balance of our economy. The biggest fallacy is the view that salvation lies in services, and only in services. The corollary to that is that it is inevitable and desirable that over the past two decades there has been a reduction of nearly 3 million in employment in manufacturing industry. That is a massive reduction and represents nearly 40 per cent. of the total in manufacturing industry over that time. I do not believe that that should have been the case. That has been precipitate and dangerous and it has not been associated with an increase in productivity which has led to our maintaining our relative manufacturing position...I have come increasingly to the view that the Government stand back too much from industry. In my experience, they do so more than any other Government in the European Community. They do so more than the United States Government. We have to remember the vast US defence involvement in industry. They certainly stand back more than do the Japanese Government. To some extent, the motive is the feeling that we have had an uncompetitive and rather complacent industry which must be exposed to the full blasts of competition, and if that means contracts, even Government contracts, going overseas, we should shrug our shoulders and say that the wind should be stimulating. That process has been carried much further in Britain than in any other comparable rival country. I am resolutely opposed to protectionism. I am sure that it diminishes the employment and wealth-creating capacity of the world as a whole. That would be the result of plunging back into that policy. I also believe, however, that this totally arm's-length approach in the relationship between Government and industry is something that no other comparable Government contemplate to the extent that we do. It is not producing good results for British industry and it is a recipe for a further decline in Britain's position in the Western world. The Government should examine it carefully and reverse it in several important respects.