Being powerful is like being a lady. If you have to tell people you are, you aren't. - Margaret Thatcher

We now know that bin Laden's terrorists had been planning their outrages for years. The propagation of their mad, bad ideology – decency forbids calling it a religion – had been taking place before our eyes. We were just too blind to see it. In short, the world had never ceased to be dangerous. But the West had ceased to be vigilant. Surely that is the most important lesson of this tragedy, and we must learn it if our civilisation is to survive.

For years there was a widespread belief that we could have inflation and a high level of employment at the same time. For years there was a belief that we could secure more jobs if we were prepared to put up with a little more inflation—always a little more, it was thought. The experience of the past 25 years has taught us on the Government Benches that those beliefs were a most damaging illusion. Inflation and unemployment, instead of moving in opposite directions, rose inexorably together. As Governments tried to stimulate employment by pumping money into the economy they caused inflation. The inflation led to higher costs. The higher costs meant loss of ability to compete. The few jobs that we had gained were soon lost; and so were a lot more with them. And then, from a higher level of unemployment and inflation, the process was started all over again, and each time round both inflation and unemployment rose. In Parliament after Parliament, each new Government had a higher average rate of inflation and unemployment than the preceding Government. It is that cycle that we have set out to break.

I proclaim with confidence that Britain can get right back into the world competitive race if only we can break free of the collective chains which hold us back. Unlike the socialists, who trust the state, we trust the people. That is why we are the party of freedom.