After listening to the debate on unemployment I can see a danger that Liberals lose to the Tories their claim to have new and sensible ideas and are … - Jo Grimond

We should not delude ourselves into thinking that an incomes policy is other than a serious infringement of freedom...Nor have the Liberals explained how it is to be worked, and even if they had, it is certainly not a permanent answer to our economic troubles...At present, the Liberal-Social Democratic Alliance occasionally looks too much like a half-way house on the old road to state socialism. It will spend more than the Tories but rather less than Labour...Such compromises may win votes, but they will not improve the country.

Now the employer is to be told that if the unions force him to pay exorbitant wages or go out of business if he tries to continue, he will be taxed. The unions will escape any punishment. The employer will not be allowed to increase employment by paying lower wages nor to attract good labour by paying higher wages. We shall have another huge department to supervise the whole operation...an incomes policy is minted in the thinking of 1945.

Neither the Government nor the local authorities make any wealth or have any money of their own. If we want them to spend more and more we have to pay. The remedy is in our hands. Stop running to them asking them to do this, that and everything under the sun - and demand instead that they stop doing and spending so much.