"First, there is really no sign at all of any significant reduction in unemployment without a major change in policy...Unemployment has probably levelled out but at a totally unacceptable figure. Secondly, contrary to what the Secretary of State said, the post-oil surplus prospect—not merely the post-oil prospect, because the oil will take a long time to go, but the surplus, the big balance of payments surplus, which is beginning to decline quite quickly—still looks devastating...our balance of payments is now overwhelmingly dependent on this highly temporary and massive oil surplus. Our manufacturing industry is shrunken and what remains is uncompetitive...We have a manufacturing trade deficit of approximately £11 billion, all of which has built up in the past three to four years. This is containable by oil and by nothing else. Invisibles can take care of about £4 billion or £5 billion but they cannot do the whole job. As soon as oil goes into a neutral position we are in deep trouble. Should it go into a negative position, the situation would be catastrophic...To sell off a chunk of capital assets and to use the proceeds for capital investment in the rest of the public sector might just be acceptable. However, that is not what is proposed, and what is proposed cannot be justified on any reputable theory of public finance; and when it is accompanied by a Minister using the oil—which might itself be regarded as a capital asset; certainly it is not renewable—almost entirely for current purposes, it amounts to improvident finance on a scale that makes the Prime Minister's old friend General Galtieri almost Gladstonian."

“...be prepared first to look at the evidence and to recognize how little the widespread use of prison reduces our crime or deals effectively with many of the individuals concerned. our own pet prejudices. It means, in a democratic society, the law as passed by an elected Parliament and applied by impartial courts. You cannot have a rule of law while dismissing with disparagement Parliament, the courts and those who practise in them. That is not the rule of law. It is exactly what the pressure groups you complain about seek to achieve by demonstration.”

“There has been a lot of talk about the formation of a new centre party. Some have even been kind enough to suggest that I might lead it. I find this idea profoundly unattractive. I do so for at least four reasons. First, I do not believe that such a grouping would have any coherent philosophical base...A party based on such a rag-bag could stand for nothing positive. It would exploit grievances and fall apart when it sought to remedy them. I believe in exactly the reverse sort of politics...Second, I believe that the most likely effect of such an ill-considered grouping would be to destroy the prospect of an effective alternative government to the Conservatives...Some genuinely want a new, powerful anti-Conservative force. They would be wise to reflect that it is much easier to will this than to bring it about. The most likely result would be chaos on the left and several decades of Conservative hegemony almost as dismal and damaging as in the twenties and thirties. Third, I do not share the desire, at the root of much such thinking, to push what may roughly be called the leftward half of the Labour Party...out of the mainstream of British politics...Fourth, and more personally, I cannot be indifferent to the political traditions in which I was brought up and in which I have lived my political life. Politics are not to me a religion, but the Labour Party is and always had been an instinctive part of my life.”

“I am in favour of sensible, well argued extensions of public ownership. ... But I am also in favour of a healthy, vigorous and profitable private sector. We do and shall depend upon it to provide a great part of our jobs, our exports and our production. And if we allow a mood of sullen uncertainty to build up in that sector we shall lose more than we shall gain by the sensible and necessary extension of the public sector.”

“an old people's home for fading nations. I do not believe in premature senility, either for nations or for individuals. And I do not even think it would be a comfortable or agreeable old people's home. I do not much like the look of some of the prospective wardens. I do not think the food or heating supplies would be very secure. There would be nobody much to pay for renovations. Our old friends would not much want to come and see us . We would find it increasingly difficult to afford to go and see them; and even if we got there we might find ourselves greeted on the doorstep with more embarrassment than welcome.”

“It is the police who are our main protection against terrorism and it is to the police that we must give our sustenance and support. It cannot be without reluctance that we contemplate powers of the kind proposed in the Bill, involving as they must some encroachment—limited but real—on the liberties of individual citizens. Few things would provide a more gratifying victory to the terrorists than for this country to undermine its traditional freedoms in the very process of countering the enemies of those freedoms. This we must keep in mind not only today but in the future as we persevere in what may not be a short struggle to eradicate terrorism from this country...the Bill proposes strengthened powers in four broad areas. First, it proscribes the IRA and makes display of support for it illegal. Second, the Bill makes it possible to make exclusion orders against persons who are involved in terrorism. Third, the Bill gives the police wide powers to arrest and detain, within limits, suspected terrorists. Fourth, it gives the police powers to carry out a security check on all travellers entering and leaving Great Britain and Northern Ireland.”

“What makes you think I care about my political career? All that matters to me is what is happening in the world, which I think is heading for disaster. I can't stand by and see us pretend everything is all right when I know we are heading for catastrophe. It isn't only Europe. It is a question of whether this country is going to cut itself off from the Western Alliance and go isolationist.”