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 … - James Callaghan

Our place in the world is shrinking: our economic comparisons grow worse, long-term political influence depends on economic strength – and that is running out. The country expects both full employment and an end to inflation. We cannot have both unless people restrain their demands. If the TUC guidelines [on pay] are not observed, we shall end up with wage controls once more and even a breakdown of democracy. Sometimes when I go to bed at night, I think that if I were a young man I would emigrate. But when I wake up in the morning, I ask myself whether there is any place else I would prefer to go.

Meantime I say to both sides of industry, 'Please don't support us with general expressions of good will and kind words, and then undermine us through unjustified wage increases or price increases. Either back us or sack us.'

The commentators have fixed the month for me, they have chosen the date and the day. But I advise them: "Don't count your chickens before they are hatched." Remember what happened to Marie Lloyd. She fixed the day and the date, and she told us what happened. As far as I remember it went like this: 'There was I, waiting at the church–' (laughter). Perhaps you recall how it went on. 'All at once he sent me round a note. Here's the very note. This is what he wrote: "Can't get away to marry you today, my wife won't let me."' Now let me just make clear that I have promised nobody that I shall be at the altar in October? Nobody at all.