James Callaghan: ...I am not pro, nor am I anti... Robin Day: What are you doing on this programme? Callaghan: I'm here because you asked me. Day: Yo… - James Callaghan

We should be aiming in the latter part of the 1960s for a 5 per cent. and then a 6 per cent. growth rate. Only then shall we attain the programme of social expenditure that is both necessary and desirable.

What would need to be reopened would be the test questions that were put to Mr Heath by M Pompidou and tamely accepted by him. To the question: “Do you agree to work for economic and monetary union?” Mr Heath had said “yes”, but the Labour movement said “no”. To the question: “Will you turn away from the open seas and mould yourself to Europe?” Mr Heath had said “yes” and the Labour movement was saying “no”. A Labour Government will seek to reopen the principles and renegotiate the details, specifically on high food prices which are part of their present policy and a reversal of Britain's food policies for over a century. We intend to have that renegotiated and to return to our traditional freedom to purchase food from other countries outside the EEC without incurring penalty.

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.