Sir Graham will lead a group of core MEPs to meet with European Commissioner for research, innovation and science Máire Geoghegan-Quinn and European Commissioner for regional policy Johannes Hahn. Ahead of the meeting, Sir Graham said:

"Our meetings today are about how we can use the EU's budget for research and regional policy to finance a surge in renewable energy in Europe and an electricity supergrid to connect Europe's remote sources of renewable energy together into one stable, reliable and 100% renewable source of power for all."

"This campaign comes at a crucial time, as the EU's overall spending plans for the 2014-2020 budgetary period are being drawn up as we speak. We are calling for €2 bn a year for research and €3 bn per year from structural funds for building a European supergrid and supporting large-scale renewable energy installations."

Nick Clegg launched the leadership programme that encourages members to put themselves forward as candidates.

The Lib Dem Leadership Programme, designed to support around 50 future Parliamentary candidates from under-represented backgrounds through training, mentoring, shadowing opportunities, was launched by Nick Clegg last Saturday.

Within the Programme, 50 per cent of the places will be reserved for women, and 20 per cent for those from BAME backgrounds, 10 per cent for those with disabilities and within the remaining 20 per cent, places are available for those who are openly lesbian, gay, bisexual and transgender candidates and those from lower income backgrounds.

Selection is based on competencies, references and an interview with the Programme Panel, with the process being run by the Diversity Unit at Liberal Democrat Headquarters. The first group of eight, Chris Lucas is one, has now been selected and the recruitment process continues.

In his keynote speech to the Liberal Democrat Conference, Party Leader and Deputy Prime Minister Nick Clegg has outlined his goals for the Government and the country over the coming years. He reiterated his commitment to liberal values on the environment and human rights and his determination to ensure a fair chance for every child, saying "every child can do good things, great things, if only we give them the opportunities they deserve."

Liberal Democrats, we have now been in Government for 500 days. Not easy, is it? None of us thought it would be a walk in the park, but I suspect none of us predicted just how tough it would turn out to be. We've lost support, we've lost councillors, and we lost a referendum. I know how painful it has been to face anger and frustration on the doorstep.

Some of you may have even wondered: Will it all be worth it in the end? It will be. And today I want to explain why.

But above all I want to pay tribute to you. Your resilience. Your grace under fire. I have been genuinely moved by your spirit and your strength. Thank you. Thank you, above all, for never forgetting what we are in politics for. After the May elections, Alex Cole-Hamilton, one of our defeated candidates in Edinburgh said that if losing was part payment for ending child detention then, as he said: "I accept it, with all my heart."

That is the liberal spirit and that is something we will never lose. The spirit that gave birth to our party a century and half ago, that kept us alive when the other two parties tried to kill us off. The spirit that means however great our past, our fight will always be for a better future.

Down in Westminster we've been vilified like never before. The Left and the Right didn't like us much in opposition. They like us a whole lot less in Government. The Left accuse us of being powerless puppets, duped by a right wing Conservative clique.

The Right accuse us of being a sinister left wing clique, who've duped powerless Conservatives. I do wish they'd make up their mind.

So yes, it has been hard. And adversity tests the character of a party just as it tests any person. We've shown - you've shown - immense strength. After being hit hard, we picked ourselves up and we came out fighting. Fighting to keep the NHS safe. Fighting to protect human rights. Fighting to create jobs. Fighting for every family. Not doing the easy thing, but doing the right thing. Not easy, but right.

And as for all those seats we lost in May, let me tell you this: I won't rest, we won't rest, until we've won every single one of those seats back.

These may not be easy times for us as a party. But much more importantly: These are not easy times for the country. Economic insecurity. Conflict and terrorism. Disorder flaring up on our streets. Times like these can breed protectionism and populism. So times like these are when liberals are needed most. Our party has fought for liberal values for a century and half: justice, optimism, freedom. We're not about to give up now.

This conference centre is on the site of the old Bingley Hall where William Gladstone stood a hundred and thirty years ago to found the National Liberal Federation. Gladstone observed that day that Birmingham had shown it was no place for 'weak-kneed Liberalism'. No change there then.

So we are strong. United. True to our values. Back in Government and on your side.In Government you're faced with hard choices every day. The question is how you make them. Some ask 'how can we get a market to work here?' Others 'how can this win us more votes?' A few 'what will the press think?' For liberals, the litmus test is always the national interest. Not doing the easy thing. Doing the right thing.

And that takes a certain kind of character. One which we've seen on display over the last few months. And indeed the last few days here in Birmingham. Brave. Principled. Awkward. Resolute. Optimistic. Unstoppable. No I'm not just talking about Paddy Ashdown. I am talking about everyone in this hall.

But I think people still need to know more about the character of our party. Not just how we govern, but why. We proved something about ourselves last year, when we faced a historic choice: Whether or not to enter Government in coalition with the Conservatives.

The easy thing would have been to sit on the opposition benches throwing rocks at the Government as it tried to get control of the public finances. It might even, in the short run, have been more popular, but it would not have been right. At that moment, Britain needed a strong government.

Alistair Darling's recent book is called "Back from the Brink" - in reality Labour left us on the brink. Teetering on the edge of an economic precipice. So we put aside party differences for the sake of the national interest. People before politics. Nation before party. And while other countries have been riven by political bickering, we have shown that a coalition forged in a time of emergency could be a different kind of government, governing differently.

Because let me tell you this: You don't play politics at a time of national crisis. You don't play politics with the economy. And you never, ever play politics with people's jobs.

Our first big decision was to clear the structural deficit this parliament. To wipe the slate clean by 2015. This has meant painful cuts. Agonisingly difficult decisions. Not easy, but right. Because handing control of the economy to the bond traders: that's not progressive.

Burying your head in the sand: that's not liberal. Saddling our children with the nation's debt: that's not fair.

Labour says: the Government is going too far, too fast. I say, Labour would have offered too little, too late. Imagine if Ed Miliband and Ed Balls had still been in power. Gordon Brown's backroom boys when Labour was failing to balance the books, failing to regulate the financial markets, and failing to take on the banks. The two Eds, behind the scenes, lurking in the shadows, always plotting, always scheming, never taking responsibility. At this time of crisis what Britain needs is real leadership. This is no time for the back room boys

Labour's economy was based on bad debt and false hope. Labour got us into this mess. But they are clueless about how to get us out. Another term of Labour would have been a disaster for our economy. So don't for a moment let Labour get away with it. Don't forget the chaos and fear of 2008. And never, ever trust Labour with our economy again.

Government has brought difficult decisions. Of course the most heart wrenching for me, for all of us, was on university funding. Like all of you, I saw the anger. I understand it. I felt it. I have learned from it. And I know how much damage this has done to us as a party. By far the most painful part of our transition. From the easy promises of opposition to the invidious choices of Government.

Probably the most important lesson I have learned is this: No matter how hard you work on the details of a policy, it's no good if the perception is wrong. We can say until we're blue in the face that no one will have to pay any fees as a student, but still people don't believe it. That once you've left university you'll pay less, week in week out, than under the current system, but still people don't believe it. That the support given to students from poorer families will increase dramatically, but still people don't believe it.

The simple truth is that the Conservatives and Labour were both set on increasing fees, and in those circumstances we did the best thing we could. Working tirelessly to ensure anyone who wants to go to university can. Freeing part time students from up front fees for the first time. Ensuring fairer repayments for all graduates. But we failed to properly explain those dilemmas. We failed to explain that there were no other easy options. And we have failed so far to show that the new system will be much, much better than people fear.

So: lessons learned. But the most important thing now is to get out there and show that university is for everyone. We should all take a leaf out of Simon Hughes' book - who has been busting a gut as the Government's Advocate for Access. Travelling the country, explaining the new system and finding ways to get young people from all backgrounds to apply to university. Simon didn't like the decision we made, and for reasons I respect. But rather than sitting back he has rolled up his sleeves and got on with making the new system work. Simon, thank you.

Right now, our biggest concern is of course the economy. The recovery is fragile. Every worker, every family knows that. There is a long, hard road ahead. In the last few days alone we have seen a financial storm in the Eurozone. Rising unemployment. Falling stock markets.

So we were right to pull the economy back from the brink. It is clearer now than ever that deficit reduction was essential to protect the economy, to protect homes and jobs. Deficit reduction lays the foundations for growth. But on its own it is not enough. That's why we're already: investing in infrastructure, reducing red tape, promoting skills, getting the banks lending. But the outlook for the global economy has got worse. So we need to do more, we can do more, and we will do more for growth and for jobs.

Because we're not in politics just to repair the damage done by Labour, to glue back together the pieces of the old economy. We are here to build a new economy. A new economy safe from casino speculation. That's why a Liberal Democrat business secretary is putting a firewall into the banking system.

Protecting the people who have worked hard and saved. A new economy that safeguards the environment. That's why a Liberal Democrat environment secretary is creating the world's first Green Investment Bank, spending three billion pounds to create green jobs.

A new economy where the lowest-paid get to keep the money they earn. That's why a Liberal Democrat chief secretary to the Treasury has put two hundred pounds into the pocket of every basic rate taxpayer and taken almost a million workers - most of them women - out of income tax altogether.

A new economy based on skills. That's why one Liberal Democrat minister is creating a quarter of a million new apprenticeships, and another is investing in schools and early years education.

A new economy that works for families. Where men and women can choose how to balance work and home. That's why Liberal Democrats are bringing in shared parental leave and more flexible working.

And a new economy run for ordinary people rather than big finance. After the so-called masters of the universe turned out to be masters of destruction instead. Which is why when we come to sell those bank shares, I want to see a payback to every citizen. Your money was put at risk. Your money was used to bail out the banks. And so the money made by the banks is your money, too. An economy for everyone: In Scotland, Wales, in every part of the United Kingdom. For women and men. Young, old. Town, country. North, South. A new economy for the whole nation.

Because as Liberal Democrats we act for the whole nation. In our long, proud liberal history, we have never served: the media moguls, the union barons or the bankers. We do not serve, and we will never serve, vested interests. We are in nobody's pocket. That's why we can make decisions in the national interest: Not easy, but right.

That's why we speak up, first and loudest, when the establishment lets the people down. In the last three years, we've seen establishment institutions exposed one by one. The City of London, shattered by the greed of bankers. The media, corrupted by phone hacking. Parliament, shamed by expenses.

I was brought up to know that it is not polite to say 'I told you so'. But I'm sorry: We did. In 2006 when Vince Cable warned that "bad debts were growing" and that bank lending levels were "recklessly irresponsible". In 2002 when Tom McNally said: "The Government must guard the public interest as assiduously as Mr Murdoch guards his shareholder interests." And in 1996 when Paddy said that Parliament had become "A rotten mess.a dishevelled, disfigured old corpse of what was once called the Mother of Parliaments." Free to tell it like it really is because we are in nobody's pocket.

Of all the claims Ed Miliband has made, the most risible is that his party is the enemy of vested interests. While we were campaigning for change in the banking system, they were on their prawn cocktail offensive in the City. While we've led the charge against the media barons, Labour has cowered before them for decades. The most shocking thing about the news that Tony Blair is godfather to one of Rupert Murdoch's children is that nobody was really shocked at all.

And today Labour is in hock to the trade union barons: After their government stipend, 95% of Labour's money comes from unions. Most of it from just four of them. Let me be clear: The values of trade unionism are as relevant as ever. Supporting workers. Fighting for fairness at work. But I don't think the unions should be able to buy themselves a political party. Ed Miliband says he wants to loosen the ties between Labour and the union barons who helped him beat his brother. Let's see him put his money where his mouth is. Let's see if he'll support radical reform of party funding. Every previous attempt has been blocked by the vested interests in the other two parties.

We are all stuck in a system that we know is wrong. We've all been damaged by it. But if we learned anything from the expenses scandal. It is surely that if the system's broken. We should not wait for the next scandal. We should fix it and fix it fast.

So whether it is securing the economy, sorting the banks or cleaning up politics, we are making the big, difficult decisions. Not easy, but right. That's what it means to be a party of national government again. Not just making arguments, making change.

In a coalition, we have two kinds of power: The power to hold our coalition partners back and the power to move the government forwards. So we can keep the government to a liberal path. Anchor the government in the centre ground.

We were absolutely right to stop the NHS bill in its tracks. To ensure change on our terms. No arbitrary deadlines. No backdoor privatization. No threat to the basic principles at the heart of our NHS.

We are right to stand up for civil liberties. No retreat to the illiberal populism of the Labour years. We are right to insist on keeping the tax system fair. Asking the most of the people who have the most. And we will always defend human rights, at home as well as abroad. The European Convention on Human Rights and the Human Rights Act are not, as some would have you believe, foreign impositions. These are British rights, drafted by British lawyers. Forged in the aftermath of the atrocities of the Second World War. Fought for by Winston Churchill. So let me say something really clear about the Human Rights Act. In fact I'll do it in words of one syllable: It is here to stay.

So we will always hold the liberal line. But much more important is the positive power of government: Not just stopping bad things but doing good things.

Last year I walked through the door of No 10. But we all walked through a kind of door together. To being, once again, a party of national government. So we must move now beyond the reflexes of opposition to the responsibilities of government, and the opportunities of government, too. New social housing. Criminal justice reform. Fixed term parliaments. Keeping our Post Offices open. House of Lords reform. Better mental health care. Safer banks. Income tax down for ordinary workers. Capital gains tax up for the rich. Compulsory retirement scrapped. Pensions protected by a triple lock. ID cards: history. Child detention: ended.

Just look at what we've announced in the last five days. After decades of campaigning, and thanks to Lynne Featherstone: Equal marriage, straight or gay. More power for consumers over the energy companies. Calling time on rewards for failure in boardrooms. Investing in education for girls in developing countries. New powers to turn empty homes back into family homes. A five hundred million pound investment in growth. Liberal achievements from a liberal party of government.

And we have stood by our commitments to act on the environment. The pollsters tell us that climate change has dropped down people's list of worries. That people have more immediate concerns. I understand that. So the politically convenient thing would have been to put this off to another day. Instead we have acted immediately. Not easy, but right. Ambitious carbon targets. Energy market reform. Councils generating renewable energy. A Green Deal to make bills lower and homes warmer. Carbon capture and storage. Green buses, trains and trams. The world's first ever green investment bank. Green achievements. From a green party of government.

I've learned quite a bit in the last 500 days. About the responsibilities of government. About the resilience of our party. The integrity of our members. About our determination to do the right thing.

In government, every single day brings hard choices. You can quickly lose your way unless you are certain of your cause. Of why you are there in the first place. Every one of us in this hall has strong political convictions: Civil liberties. Internationalism. Human rights. Political reform. Responsible capitalism. Fighting climate change. But every one of us has a political passion too. The fire inside that drew us to politics in the first place. Let me tell you what I care most about. My passion is ensuring a fair start for every child. I have a simple, unquenchable belief: That every child can do good things, great things if only we give them the opportunities they deserve.

Equal opportunity. It sounds so simple doesn't it? Everyone agrees with it. But then we allow prejudice, tradition and class to crush a million hopes and dreams, watch young children's lives go off track even before they go off to school, sit idly by while talent goes to waste. I know I have had all the advantages - good school, great parents. I was lucky. But it shouldn't be about luck.

On Saturday I met a group of young people working with a charity called UpRising, here in Birmingham. All from really difficult backgrounds. One young woman, Chantal, told me that she only started to thrive when she found someone who believed in her. I want every child to believe in themselves. In terms of opportunity, we are a nation divided:

Children from a poor background a year behind in language skills before the age of five; more young black men in prisons than at Russell Group universities. And within one city, two nations: In Hammersmith and Fulham in West London, more than half the children leaving state schools head to a good university. Just thirty minutes east - down the district line to Tower Hamlets - and just 4 percent do. Odds stacked against too many of our children. A deep injustice, when birth is destiny. That's why I've been leading the charge for social mobility - for fairer chances, for real freedom.

People keep telling me that it's too hard. That it's futile to push for fairness into the headwinds of an economic slow down, or that it will just take too long. And that I should find some politically convenient 'quick wins' instead. I've also encountered fierce resistance from those who do so well out of the status quo. But for liberals the only struggles worth having are the uphill ones. Allowing schools to move poorer children up the queue for admissions. Making universities open their doors to everyone. Making firms work harder to get women on their boards. Breaking open internships. All controversial. All difficult. Not easy, but right.

So I'm not backing down. I'm not slowing down. Because this will not be a liberal nation until every citizen can thrive and prosper, until birth is no longer destiny, until every child is free to rise.

This summer, we saw the consequences of a society in which some people feel they have no stake at all. Nobody could fail to be horrified by what we saw during the riots. These weren't organised campaigns for change. They were outbursts of nihilism and greed. I'll never forget the woman I met in Tottenham, who told me the clothes she stood in were all the possessions she had left in the world after her home was torched.

But in every city where trouble broke out, most people did the right thing. So many more people went out to clean up the streets than went out to trash them. In Manchester I met a café owner who boarded up her broken windows and started serving tea and coffee straight away to the people who were helping clear up. And here in Birmingham the community stood together in the face of disorder and tragedy. Or emergency services, our police and our courts all rose to the challenge.

But we have to ensure that the offenders become ex-offenders for good. hree out of four had previous convictions. So we have to push ahead with the Government's rehabilitation revolution: Punishment that sticks, that changes behaviour. An end to the corrosive cycle of crime. And I want the criminal to look their victims in the eye to see the consequences of their actions, and to put it right. That's why there will be community payback projects in every city affected. Why we are investing in drug recovery wings in our prisons. Tackling gang culture. Tougher community penalties. Effective justice. Restorative justice. Liberal justice.

But let me say something else: The rioters are not the face of Britain's young people. The vast majority of our young people are good, decent and doing the best they can. Don't condemn all of them because of the actions of a few. You know what really struck me? How so many of those who did join in the riots seemed to have nothing to lose. It was about what they could get, here and now. Not what lies in front of them, tomorrow and in the years ahead. As if their own future had little value. Too many of these young people had simply fallen through the cracks. Not just this summer but many summers ago, when they lost touch with their own future. So often the people who have gone off the rails are the ones who were struggling years earlier, not least in making that critical leap from primary to secondary school. So today I am launching a new scheme to help the children who need it most. In the summer before they start secondary school. A two-week summer school helping them to catch up in Maths and English, and getting them ready for the challenges ahead. We know this is a time when too many children lose their way, so this is a £50m investment to help them along the right path.

And that is why we have found the money, even now, to invest in education. Protecting the schools budget. A two and a half billion pound Pupil Premium by the end of the parliament. More investment in early years education: 15 hours for all three and four year-olds. New provision for the poorest two-year-olds. All steps towards a society where nobody is 'enslaved by poverty, ignorance or conformity'. Towards a liberal society. These are investments that will take years or even decades to pay off. By the time the two year-olds we help next year come to vote, I'll be 60. So why are we doing it, when it costs so much and takes so long? Because investing early makes such a huge difference, especially for the poorest children: Not easy, but right.

So hold your heads up and look our critics squarely in the eye. This country would be in deep trouble today if we had not gone into Government last year. And Britain will be a fairer nation tomorrow because we are in Government today. Never apologise for the difficult things we are having to do. We are serving a great country at a time of great need. There are no shortcuts, but we won't flinch. Our values are strong. Our instincts are good: Reason not prejudice. Compassion not greed. Hope not fear.

After the summer riots, message boards sprang up. They became known as 'peace walls'.

And on the peace wall in Peckham there was a note that simply read: Our home. Our children. Our future. Six words that say more than six hundred speeches. Our home. Our children. Our future.

Britain is our home. We will make it safe and strong. These are our children. We will tear down every barrier they face. And this is our future. We start building it today.

Conference, mining has left many scars on Wales. Though they run deep, they are recent scars. My father was the first generation in my family not to go down the pits.

Nevertheless, many of us thought we would never witness the kind of tragedy that we saw at the Gleision Colliery. So I start today by adding my tribute to the miners who lost their lives and to the amazing response of the community to the tragedy.

With three sets of elections in Wales in the space of three months, we have had a year as exhilarating, challenging, disappointing and uplifting as any I have seen.

We shared with you the disappointment of the AV referendum. But we campaigned hard and successfully to achieve an historic yes vote in the Welsh powers referendum in March.

In 1997, the vote to establish the National Assembly was won by such a narrow margin. This time, we achieved a substantial majority in favour of law making powers, meaning that, for the first time in over 600 years, laws that effect only Wales are made only in Wales.

And that means that the Welsh Government now has far more power to make a difference.

Wales now has the way, if the government has the will, to drive a Welsh economic recovery and create local jobs. Allowing Councils to fund regeneration projects from future business rate income.

Wales now has the way, if the Government has the will, to improve public transport, creating Joint Transport Authorities and re-regulating buses.

Wales now has the way, to legislate to improve the training and quality of teaching and to create a health spending watch dog to root out waste in our NHS.

Wales now has the way, if only the Welsh government has the will.

So May's Assembly elections were the most important since the first Welsh election in 1999.

The elections were tough as they were elsewhere.

The media spent the entire election asking me about the scale of the likely disaster and predicting a wipeout for the Welsh Liberal Democrats.

I would love to have increased our representation at the Assembly and, of course, we suffered our disappointments. But there were successes too.

We held our North Wales list seat and won seats for the first time in Mid and West Wales and in South Wales Central. Areas like Merionyddshire, Pembrokeshire and Carmarthenshire now have Liberal representation for the first time in sixty years.

The South Wales valleys now have a Liberal Democrat Assembly Member for the first time.

And Peter Black, heroically, held on to his South Wales West seat.

Though Peter, next time you're on the verge of re-election, please don't text me half-an-hour before hand to say you think you've lost!

Since 2000, it has been the same six Liberal Democrat Assembly Members that were returned in every election.

I would like to pay tribute to Mike German and Jenny Randerson, who did so much to build the Welsh Liberal Democrats and continue to do so in the House of Lords.

To Veronica German, a key part of the team long before serving as an Assembly Member who I know will continue to play such an important role.

To Eleanor Burnham, who flew the flag for the party in North Wales for so long.

And I would like to introduce to you the new team.

Some of you may have seen that Talgarth Mill was featured recently on the BBC's Village SOS. No one was more involved in that project than the ward councilor for Talgarth, now our Assembly Member for Mid and West Wales, William Powell. With his roots in the rural community, he is well placed to speak for us on the environment agriculture and rural affairs.

Eluned Parrott is already making an impact as she takes on the business and enterprise portfolio. Eluned grew up delivering focus leaflets at her father's side. Back then, she was the only Eluned Siân Jenkins in the village - well in Wolverhampton. But she made the wise decision to come home to Wales as soon as she turned 18. And you are not getting her back!

Aled Roberts brings real expertise to his education portfolio from his time as the Leader of Wrexham Council overseeing dramatic improvements in GCSE attainment levels and, having spear-headed this year's successful National Eisteddfod. No one can question his commitment and passion for the Welsh language.

With Mark, Jenny and Roger at Westminster, we have a united team to stand up for the people of Wales.

There are always lessons to be learned after an election campaign. From our performance and that of our opponents.

And we may wish to take note of the performance of Plaid Cymru who were, like us, the junior party in a coalition.

Plaid formed a coalition with Labour, making progress on a referendum on further powers the key plank of their negotiations. The referendum was held and won.

Now devolution is dear to the hearts of Plaid supporters, as it is to Liberals, and on this 'core issue', Plaid could show that they had made a difference in government. Their reward was fewer votes and fewer seats.

Plaid's reason for being, may be devolution and protection of the Welsh language. But its message on the economy, for which they had ministerial responsibility, was unclear. And their line on schools was that their own coalition government had failed - but that it was all Labour's fault.

One day they were claiming to be the driving force in government, the next denying they were even a passenger.

What lessons can we Liberal Democrats learn from this?

For me it is clear. The smaller party in government has to be able to show it has made a difference. Not just on issues of concern to their core supporters but across government, and in particular on those issues that matter most to voters.

Our core voters may be satisfied by delivery on fringe issues. But fringe supporters will only take notice when we deliver on the core issues.

Having a great Liberal and radical story to tell on civil liberties and political reform is so important: I am as proud as any one that it is our government that has ended child detention for asylum seekers.

That it is our government that is ploughing ahead with the unfinished business of Lords reform.

But we cannot forget that these issues will be a million miles away from the concerns of most voters at the next election.

So we must ensure that, in Government, we are making a difference in the areas that matter to people most.

That is why Nick Clegg is insisting on doubling the funding of the pupil premium because he understands that is the way to transform the life chances of our poorest children.

That is why Vince Cable is insisting on the break up of the banks - so our life savings are not recklessly gambled away on the money markets.

That is why Danny Alexander demands that reducing income tax for the lowest paid workers is prioritised over tax cuts for the rich.

Even in these tough times, especially in these tough times, it is when people see how hard we fight for our Liberal Democrat values that we win their respect.

**********

The other lesson from the elections in Wales should not come as a revelation to Liberal Democrats.

That in areas where we knock on doors all year round and keep speaking to voters.

That is where we retain people's respect and their support.

Nye Bevan once described Tories as 'lower than vermin'.

Even I think that was a little harsh.

But whichever way you look at it, I'm no fan of the Tories.

The decision to form a coalition government was as tough for me as it was for many of you. The political consequences are sometimes difficult to stomach.

But I can tell you that there would have been difficult consequences from not going into a coalition too.

In Wales in 2007, our party was widely expected to be the partner of choice for a Labour Party that had failed to win a majority. We didn't go into Government. But that decision didn't reap any media plaudits or electoral dividends either.

So last year, we made the right decision to go into government at Westminster.

And we cannot fight election campaigns pretending that we are not in Government. If the Lib Dem brand has become tarnished then disowning that brand isn't the answer.

We must continue to remind people that allowing the Conservatives to govern unhindered was no choice at all.

We must communicate what we are doing in government. We should proclaim our achievements.

In short, Liberal Democrats, it is time to, get up off our knees and be proud of the difference we are making and to keep on fighting, in government and on the doorstep.

Because, in case you've got short memories, I can tell you that being in opposition, unable to make that difference, that is a whole lot more frustrating!

Despite all the hype, Labour did not win a majority of votes or seats in Wales.

Those in the Labour Party who think that Wales is a model for a return to power in Westminster should take note.

But Labour are the largest party and with half the seats in the Assembly, Carwyn Jones, the First Minister has promised a 'stable Government', he said, 'with no trace of any political tribalism'.

Labour? No tribalism? Really? Now that is a makeover that even Gok Wan couldn't carry off!

You know it's funny, there are people worried that coalition with the Tories at Westminster is blurring our identity.

Some of the same people would fall over themselves for us to do a deal with Labour in Wales - as if that wouldn't do the same.

Here's my view:

A coalition with the Conservatives doesn't make us a party of the right.

A coalition with Labour wouldn't make us a party of the left.

No, our priority now is to advance the policies that we fought the election on.

The Welsh Liberal Democrats will be the strong, responsible voice of constructive opposition that Wales needs.

We will judge each issue on its merits, afraid neither to support the government nor to oppose it, where that is in the best interests of the people of Wales.

We know that the next few years are too important for point-scoring and petty party politics to bring the budget process into disrepute.

But I also know this. Welsh Liberal Democrats were not elected to the Assembly to turn our backs on the desperate need to improve education funding in Wales or to re-boot the Welsh economy and provide training and hope for those without work.

Conference, it is nothing short of a scandal that as the schools performance gap continues to grow, Labour still spends £600 less a year educating Welsh children than those living in England.

So let me make it clear.

The Welsh Liberal Democrats will not back any budget that does not make progress towards closing the funding gap with England - starting with the poorest children who need the extra help the most.

Nor will we vote for a budget that neglects the need to tackle unemployment and boost the economy by incentivising employers that take on new trainees.

Those were our priorities during the election. And they will be our priorities at the next budget.

What happens in Wales under Labour matters not just to people in Wales but to the rest of the UK too. Ed Miliband has gone out of his way to praise Labour's administration in Cardiff. He said in June that he was:

"Incredibly proud of the job that Carwyn Jones is doing in Wales. He's leading the way, not just for Wales, but for the United Kingdom"

Leading the way?

When you wait longer for an ambulance in rural Wales than rural Scotland? When you wait six months for hospital treatment in Wales but sixteen weeks in England; despite Wales spending more money on the NHS?

Leading the way?

When the Welsh government decides Enterprise Zones are a good idea after all a full six months after they were announced in England?

Leading the way?

When Wales is now the poorest nation or region in the United Kingdom and that we are getting relatively poorer?

And this is the thing that irks me most about Labour. Labour uses the language of equality.

But the poor services they provide do poor people down.

If you fail to crack down on poor standards in schools, it isn't the well-off that suffer.

They play the system, they move house, they go private - whatever they need to get their kids the best education. And the poorest in our society, the people Labour profess to care about, put up with substandard services.

Changing that is what motivates me now, as it did me when I first joined this party.

A weak economy, underfunded schools and NHS that costs more but delivers less.

I simply don't believe the Welsh people should have to put up with Labour's miserable record.

Labour fought their election campaign saying that this Assembly would be all about delivery.

It begs the question, what on earth were the last twelve years about?

And with a record like that, I understand why some say, that politicians in Wales need to deliver, before they start asking for more power.

But Wales' devolution package is missing a critical element.

Unlike most families and businesses, the Welsh government has the luxury of spending money handed out by others.

Like the wayward teenager, left school, still living at home. Frittering money away but complaining that the regular handouts are too stingy. That is Labour's devolution.

The lack of ability to raise money breeds an irresponsibility about how that money is spent.

On each day of the election campaign, we highlighted a different example of the waste in the Welsh government.

From the £500,000 cost of a McKinsey report on the NHS that the government denied even existed to the £30 million treating minor ailments that could be better dealt with in community pharmacies. But little wonder there is such waste, when Wales, uniquely, has no power to borrow or raise money.

Birmingham Council is allowed set taxes - but not the Welsh Government

Newport Council is allowed to borrow to invest in capital projects - but not the Welsh Government.

The Scottish Government has the power to vary income tax rates - but not the Welsh Government.

For over a decade, Labour refused to let go of the purse strings.

In contrast, Liberal Democrats have consistently supported greater financial powers. Not only will it will bring more accountability and responsibility to the Welsh Government but a progressive Government could use these powers to drive forward Wales' economic development, creating jobs and prosperity for people in Wales.

But this isn't about Wales whingeing for others to deliver.

It is about making a persuasive case with maximum support across Wales.

I am already working with the leaders of all parties in Wales to build a coalition of support that demands the respect of politicians in Westminster.

The coalition agreement included a firm commitment to develop a Scottish Calman-style process to devolve financial powers to the Welsh Government.

But Conference, do you think we can rely on a Conservative Secretary of State to deliver?

The Conservative understanding of devolution is too shallow.

The Secretary of State's accountability to the people of Wales too tenuous.

The Wales Office's belief in giving away power too - well it's non-existent.

That is why we need Liberal Democrats in Government to really push forward radical reform.

And I know that at every stage Nick Clegg and Danny Alexander are pushing the case for Wales. Well, Cheryl, somebody's got to do it.

And I know, that is what Liberal Democrats in the cabinet are doing week in week out.

In March, Vince came to Cardiff and told our conference about what he called the Kirsty Williams welcome.

Appparently, It starts with a big smile, followed by a kiss and then a right rollocking for what you haven't done for Wales.

Well Vince, I still have a few things on my list and I am not going to stop haranguing you from time to time but I know that the Liberal Democrats are fighting tooth and nail to make sure that we deliver for people in Wales.

That is why there is a future for training at St Athan.

That is why we will see the electrification of the South Wales mainline.

That is why an additional 50, 000 Welsh workers no longer pay any income tax

And that is why it is worth being in Government.

'On your side' is where this party has always been .

'In government' is a place we have rarely been but it is where we should always want to be.

In our communities, in Wales, in Westminster.

And it is where we can make being 'on your side' not just a conference slogan.

But a call to arms to make the difference for the people of our country.

Conference,

As you know, a lot is happening north of the border right now, and many serious questions are being asked.

But the biggest is not the West Lothian question, or indeed the date of the referendum.

It's who will win the struggle in Auckland when Scotland play England in the rugby World Cup.

On this, there is no Cabinet line.

No collective responsibility.

Not even a Lib Dem position.

But I'm hoping that the majority of you in the hall right now will be up for a big game and rooting for the right result - for Scotland.

OK, so there are a few other things we're debating with renewed vigour at the moment.

Since May things have changed a bit.

A new Scottish Government, an outright Nationalist majority, the prospect of a referendum on Scottish independence.

There is going to be plenty of debate about the future of our country in the months and years ahead.

And in that debate we - this party, this government - will join with others to make the strong and positive case for Scotland's place in the United Kingdom.

Using hard facts, not hysterical language, to argue for a strong Scotland in a modern UK.

And it is right that we should do that.

Those who want to turn their backs on Britain are passionate about their cause.

We must be equal to that passion, but ahead of them in the arguments.

We must show - we will show - that the nations of our country are stronger together and poorer apart.

A big part of that case will rest upon our ability to show that Scotland benefits from being part of the UK.

And that the United Kingdom benefits from Scotland being part of it.

That Scotland has two governments.

One at Holyrood, and one at Westminster.

Separate and distinct but united in their goal - governing in the interests of Scotland.

So, this morning I want to talk about what Liberal Democrats in government are achieving for Scotland.

I want to talk about the changes we are making, the fairness we are bringing and the prosperity that we are building for our country.

Now, I know that's been a bit of a hard sell so far.

There is no denying that May's election results were bad for our party.

That we lost some very good friends and colleagues from Holyrood.

And that the Parliament has lost some exceptional people.

And equally there is no denying that progress towards rebuilding our fortunes will require hard graft and unity of purpose from all parts of the Scottish party.

Our new group of MSPs is critical to that.

And they are five very able people.

One of them is our former leader, Tavish Scott.

And I want to pay special tribute to the energy, determination and passion with which Tavish led the Scottish party up to the election.

Tavish is a true liberal and a great friend who continues to play an important role at Holyrood.

And our new leader, Willie Rennie, is off to a flying start, ahead of the game, and making the case for a more liberal Scotland.

He has led the attack on the SNP's "bulldozer" approach to Scotland's police forces.

He has stood up to the Scottish Government's bullying of our independent judiciary.

And he has pushed the First Minister again and again to come clean on the true costs of independence.

He is a strong liberal voice holding the SNP to account at Holyrood.

And at Westminster we have strong liberal voices in government working for Scotland.

Shaping a fairer Scotland, for our future, in the toughest of times.

That means prioritising.

When you inherit a deficit of 155 billion pounds you must cut your cloth according to your means.

And it becomes all the more important to ensure that money goes where it is needed most.

Of course there have been tough decisions to take.

But let's look at the difference we have already made in Scotland.

91,000 low income Scots coming out of income tax altogether.

One million Scottish pensioners benefiting from increased pensions.

Two million increased cold weather payments going to thousands of Scottish households.

Each of these realities is a direct result of Liberal Democrats in government.

Our values - fairness, justice, compassion - these thread through the decisions made by this government, in Scotland's interests.

Let me give you some examples.

On freedom and liberty, Liberal Democrats in government are reasserting individual rights.

We all remember what it was like until May of last year.

The rise of the database state with expensive and intrusive identity cards.

The undermining of habeas corpus with constant attempts to expand detention without charge.

The casual disregard for compassionate justice with asylum-seekers' children languishing behind barbed wire.

So many of our freedoms were taken from us by a government that arrested people for reading out the names of the war dead at the Cenotaph.

In government, Liberal Democrats are changing that.

We've scrapped ID cards and smashed the identity database.

We've abolished twenty eight days detention and refocused anti-terror laws.

And we have ended child detention as we know it, with not a single child held at Dungavel - now or ever again.

On the environment, Liberal Democrats in government are shaping the green future we believe in.

You know, my daughter Ella is now two. And yes, she's very cute, if a little bossy. But being a father makes you think about the future.

And, for me, it makes turning a blind eye to climate change just unthinkable.

Higher temperatures, rising sea levels, the growing threat to our way of life.

For too long, these have been met with second-rate responses.

In government, Liberal Democrats are changing that.

We're creating a coastal communities fund with Crown Estate profits to allow local people to invest in their areas and explore new green ideas.

We're seeking reforms to the Common Agricultural Policy to support Scottish hill farmers and lead to good green practice.

And through the Green Investment Bank and other initiatives we're paving the way to investment in marine technology, renewable energy and a generation of new green jobs.

That's the green perspective that Liberal Democrats bring to Scotland.

And we'll also deliver a stronger economy.

Labour's legacy was a debt-laden, risk-ridden, lop-sided system that served a few but short-changed the many.

In government, Liberal Democrats are changing that.

We're rebuilding, rebalancing and reshaping the economy and creating the conditions for growth.

Acting fast to get the deficit down to stabilise our finances.

Cutting corporation tax to give our companies a competitive edge.

Ensuring that our banks lend to business to keep people in work.

All of these actions will benefit Scotland's economy.

In doing so, they will also benefit Scotland's people - people who need help in these tough times.

And while we're on that subject, let's be clear:

The priority must be to keep raising the point at which people start paying tax towards £10,000.

Not axing a 50p rate on our country's highest earners.

But Scotland's government at Westminster is also taking specific action to boost the economy north of the border.

By investing £70 million in superfast broadband for our rural communities.

By Danny's work with the European Commission to cut the cost of fuel in the isles.

And by providing Scotland with the money it needs for new enterprise zones.

That's Liberal Democrats in government, creating a fairer economy for Scotland.

But we can go further still.

The UK Government is now in the second phase of our Growth Review, identifying ideas to expand our economy and to remove the barriers that hold it back.

But just as we have taken specific steps to boost the Scottish economy, so we should recognise the real challenges it faces in the twenty first century.

I want to see Scottish exports reach unparalleled levels.

I want to see Scotland leading the way in trading with emerging economies like, Brazil, Russia, India and China.

And I want to see Scotland's financial sector return to strength in the context of responsible business and a rebalanced economy.

There is no reason why this should not happen.

And every reason to work together so that it can.

So today I am glad to announce that the Scotland Office is establishing a Scottish Trade and Growth Board.

To add - and to feed into - the Growth Review at UK level.

It will bring together representatives from key sectors in the Scottish economy.

And its work will draw from expertise within government, with support from the Treasury, and the Department for Business, Innovation and Skills.

But the Board will not be inward looking: it will be outward facing.

It will receive independent economic advice and it will reach out, far and wide to Scottish businesses, including small and medium-sized companies.

Because it is they who know business best.

So we will listen, engage and innovate.

We will identify the barriers to Scotland's success and we will tear them down.

Of course, in all of these things, the Scottish Government has a role to play too.

And it is in Scotland's interests that we work together within the framework of a modern UK.

Liberal Democrats played a key role drawing up the plans for a Scottish Parliament and campaigning for a yes vote in the referendum fourteen years ago.

Now, in government, we are delivering the next phase of devolution.

The Scotland Bill - with cross-party support - will deliver the single largest transfer of financial powers from London since the creation of the United Kingdom.

New powers on tax and borrowing will empower the Scottish Parliament and make it more accountable to the Scottish people.

Poll after poll has shown that Scots want to see devolution strengthened within the borders of our country.

That is what Liberal Democrats believe in.

And that is what the Scotland Bill delivers.

Earlier this month the Bill had its second reading in the House of Lords - where none other than my good friend and colleague Jim Wallace is guiding it through.

By Spring it should be law.

But only by consensus.

The Scotland Bill is not only going through Westminster it is also going before the Scottish Parliament - for a second time.

On the first occasion, the Parliament endorsed the principles of the Bill, with support from all sides of the chamber.

But now the new Nationalist government wants changes made.

We are not unreasonable.

We are engaging with their six proposals.

But any changes must meet three key tests.

They must be detailed in nature, making substantive improvements to the Bill.

They must maintain the cross-party consensus on which the Bill is based.

And they must be without prejudice to the broader interests of the UK.

It is only fair and reasonable that any changes proposed at this late stage meet those high standards.

We will not agree now to rush through proposals that would shatter political consensus or damage the interests of our country.

It is not acceptable to cut corners or play fast and loose with the constitution.

Governing is about answering hard questions and taking responsibility.

But that is something the SNP has still to accept.

The Nationalists want to have it both ways.

They want to be in government but act like an opposition.

In the past few weeks they have launched personal attacks on Scotland's top judges.

They've played politics with public sector pensions.

And they've threatened to oppose new powers for the Scottish Parliament for which they themselves voted just six months ago.

But the SNP has always used conflict and grievance to distract from their failure to set out a detailed case for independence.

They have always used the politics of assertion as a substitute for the detail of policy.

If the SNP wants further powers in the Scotland Bill, the case is theirs to prove and the questions are theirs to answer.

And if the SNP wants independence for Scotland, the argument is theirs to make, and the detail is theirs to spell out.

But they don't.

They dodge the questions and they shout down the questioners.

Three weeks ago I asked six simple questions about the SNP's plans for an independent Scotland.

I asked about bank regulation, pension payments, the national currency, membership of international organisations, Scotland's defences and the bottom line on costs.

Answers came there none.

But we will continue to ask those questions until they provide the answers.

We - all of us - have a right to know.

Because what the SNP is plotting and scheming behind the doors of St Andrew's House is to change the very nature - the very fabric - of our country.

So we won't let them lurk, skulk and shout from the back of the class.

They will have to come to the front, take responsibility and answer the questions.

That's what governing is about.

Conference, there are many privileges to being Secretary of State.

One of them is the opportunity to get out there, meet people and visit Scotland's communities.

And I've done a fair few laps of the country these past twelve months.

The people I meet have anxieties about the future, that's true.

But they are also ambitious and optimistic.

They believe that Scotland's best days are ahead of us.

The challenge for our party is to show that those days will be better with the Liberal Democrats and thanks to this government.

So as we move forward, our message must be clear.

Yes, we're taking tough decisions.

But in doing so we are shaping the country we believe in.

A Scotland where our people are empowered.

Where our economy is rebalanced. And where our society is free, fair and green.

That's what we stand for, that's the reason we're in government, that's why the Liberal Democrats are on Scotland's side.

Commenting, Co-Chair of the Liberal Democrat Parliamentary Committee on International Affairs, Martin Horwood, said:

"Liberals first championed world-wide human rights in the days of Gladstone.

"We have never accepted that human rights or democracy were too good for some parts of the world.

"Conference welcomes and will continue to support the continuing Arab Awakening, and the Government's policy of restrained intervention in Libya but we're also urging Western Governments to learn the lesson that repressive regimes need to be kept at arms length."

Commenting, Liberal Democrat MP for East Dunbartonshire, Jo Swinson, said:

"We all recognise that our quality of life matters but large scale studies show that levels of reported life satisfaction in the UK have been roughly static for decades.

"The Liberal Democrats have recognised the problem and are taking the initiative to put forward solutions.

"This paper proposes evidence-based policies to enhance wellbeing, such as extending flexible working rights and rolling out support classes for parents.

"It also takes steps to embed the promotion of wellbeing in the heart of Government machine, such as subjecting new policies to wellbeing tests and creating a Cabinet champion for wellbeing."

Commenting, Liberal Democrat MP for Bristol West, Stephen Williams, said:

"The Liberal Democrats have consistently championed the green agenda, and the new Green Bank will be vital to broadening our energy sources and boosting investment in manufacturing and technology.

"This is a serious programme which will have a direct impact on the development of the UK as an international provider of green solutions. The fund will grow from an initial £3 billion, and unlock a further £15 billion of private sector funding over the next four years."

Conference,
It seems a million years ago that the media were reporting on the coalition talks between the Liberal Democrats and the Tories.

Talking heads endlessly speculating on who was up, who was down and how long it would last.

Newspapers full of the back stories of the four-man Liberal Democrat negotiation team of Danny Alexander, Chris Huhne and David Laws.

I'm not bitter. Honest. The Guardian wouldn't have spelt my name right anyway.

In those five long days coming straight off the back of a gruelling election campaign, we crafted an agreement that saw Liberal Democrats enter government for the first time in over seventy years.

Since I got you into this, Conference, I thought it was only right to come and account for what I've done in government since.

Inside the grandly titled Department of Communities and Local Government we've had a tough year, with hard decisions and difficult cuts required.

That's stolen the headlines, but we're also racing to secure the vital reforms we promised to restore the power eroded from Local Government and local communities by successive governments for forty years or more, ably assisted by Whitehall's mandarins.

And we've also tackled that policy Cinderella: Housing.

During his successful campaign to be our candidate for London Mayor, I heard Brian Paddick make the claim that Housing was the most important issue facing London.

I agree with you, Brian, but you didn't go far enough.

It is one of the most important issues facing the entire country.

There are 250,000 new households formed every year. Social Housing waiting lists have soared to record levels. 5.5 million Households live in fuel poverty, and there were 28,000 so-called excess winter fuel deaths in 2010.

When the Coalition came into power, we inherited a housing crisis.

Labour had continued what the Tories started, selling off council houses, and failing to build enough even to replace them, let alone increase the number.

And in the private sector, even during the boom years of the housing market, we weren't building the houses we needed.

The record of previous governments on social housing was nothing short of a disgrace.
Millions of social homes were sold off, and not replaced, whilst waiting lists soared to record levels.

As things stand, 4.5 million people are on social housing waiting lists. That's 1.8m families waiting for a home they may never see.

Social Housing just wasn't important enough for the last government.

They just didn't get it.

Gordon Brown - remember him? He claimed on Newsnight that "Housing is essentially a private sector activity".

The Shadow Education Secretary, Andy Burnham, went further and admitted that "Labour's failure to build more council homes early in the life of the Government was a major mistake".

He was right.

It was.

Housing just didn't matter to Labour.

For decades, successive governments have taken us backwards - Labour and Tory alike.
We lost over a million social homes between 1979 and 1997.

Blair and Brown then cut the numbers by a further 420,000 in their thirteen years in power.


It was not good enough and the Coalition is determined to do better.

That's why we've introduced the Affordable Rent programme, which will help us build more homes with less, getting better value for money for the taxpayer to boot.

It's been a success so far.

We initially hoped we'd build around 150,000 new social homes for rent over the next four years.

The critics claimed it could never happen. That we'd fall flat on our face. That we'd fail.
But bids to introduce affordable rent schemes exceeded even our own expectations.

So much so, that now, we're on course to build 170,000 new social homes in the next four years.

To be sure, we still have a long way to go and a lot more to do.

But I can stand here today as a Government Minister and tell you Conference, that thanks to Liberal Democrat influence in government, we have a social housing target that we can and will meet.

That thanks to the Liberal Democrats, the coalition will be the first government to deliver an increase in social housing during its term of office for more than thirty years.

But the search for value for money means we must also get the most out of our existing stock too.

That's essential with new household formation outstripping the number of new homes built each year and waiting lists rising every day.

Yet we have 700,000 empty homes in this country.

Over 300,000 of them are long-term empties - vacant for more than six months. That's 2 years' new housing supply. It's a scandal, in fact it's a crime when thousands of families cannot get a decent home

Bringing those empty homes back into use has long been a key demand of Liberal Democrats.

It was one of our big asks on housing policy during the coalition negotiations.

It's in the Coalition Agreement. It's there in the Departmental Business Plan. Now it's down to me to deliver.

The last government's empty homes policies were disjointed, scatter-brained, and lacked a coherent direction.

We must do better. And we will do better.

Last October, we announced a £100m programme to kick start the reuse of empty properties to create thousands more affordable homes right across the country.

In the coming weeks, I will be bringing forward the details of our empty homes strategy - the first time any government has had one.

The strategy will set out what Government is doing, and what more we intend to do to tackle the problem of empty homes.

It will open the door to bids from councils, housing associations and other providers, with work on the ground starting next April.

And it will make the case for one of the most efficient housing investments we can make: giving us more homes per pound, more jobs per home, and plenty of training opportunities too.

And of course I want to see local authorities getting to grips with the empty homes in their areas.

Already, the New Homes Bonus will apply to Empty Homes, so councils will receive six years worth of council tax per home. £9,000 or so.

But we can do more.

That's why today I can announce that we will shortly be consulting on whether councils should be given the power to charge extra council tax on homes in their area that have been empty for more than two years, through an Empty Homes Premium.

Discretionary, naturally. Localist, certainly. With essential safeguards and exemptions, of course. But a nudge to owners to bring abandoned homes back into use.

An extra weapon in a council's armoury in the battle to make better use of our housing stock.

The premium will act as a spur for landlords to bring their properties back into use quickly. And where they don't, it will provide an extra revenue stream for Local Authorities to plough back into bringing more homes back into use.

We will also look to be innovative and find other ways to support local authorities to bring vacant properties back into use, and regenerate their areas.

Homesteading - where empty homes are brought back into use through self-renovation - has proven successful both internationally, for instance in Rotterdam in the Netherlands, and also back here in the UK, such as in Benwell in Newcastle

Homesteading provides a triple benefit, it gives families a foot on the housing ladder, brings empty homes back into use, and it helps to regenerate whole communities.

So I can also announce today that we will work with local authorities to identify areas where effective homesteading schemes could be delivered to rejuvenate local communities.

But it's not just numbers of homes that are important.

We need to ensure that we get quality as well as quantity.

Stopping carbon emissions from our homes may not be as high profile as transport, or renewable energy projects.

But it is essential in the fight against climate change. And a lot more cost effective.
The Built Environment contributes almost half of Britain's carbon emissions each year.
Over a quarter come from our homes.

A two-third cut in CO2 emissions produced in our homes would save more carbon than taking all the country's cars off the road, so the need for more sustainable homes couldn't be more obvious.

Conference - the choice is clear: we either make our buildings more sustainable or we will lose our battle with climate change.

Liberal Democrats take that battle seriously, and want to deliver on the green promises we make.

Liberal Democrats want the Coalition to be the greenest government ever, so that means we need to have the greenest built environment ever.

Not just setting targets, but delivering results.

The last Labour government were big on targets that they always missed.

And we already have the evidence that the existing standards they set aren't being met. A recent study by the Joseph Rowntree Foundation showed that not even an exemplar Zero Carbon Development was performing as it should.

Although residents were comfortable and pleased with their lower heating bills, the homes were losing 54% more heat than designed.

The report concluded that many processes and cultures within the industry and its supply chain need to change if Zero Carbon Homes is to be more than an empty slogan.

That's why, as part of the work my department is doing ahead of the next upgrade of Building Regulations in 2013, I have urgently called together an Advisory Committee on Compliance to look into what more we can do to make sure that standards are met, and that carbon reduction in the built environment becomes a reality.

But it's not just new homes that need attention.

Around three-quarters of today's homes will still be in use in 2050. So if we want to cut carbon, we need to upgrade our old homes, not just the new ones.

That's where the Green Deal comes in.

As you heard from Chris earlier, from September 2012, energy companies will pay up-front to insulate your home, with the money paid back through the savings made on your energy bill.

Real help and real savings for real people.

Chris Huhne and I came up with the initial plan for what's now the Green Deal in our 2006 policy paper "Climate Change Starts at Home".

Little did you know then, Conference, that so much of what you voted for in that paper would be implemented by Liberal Democrats in government.

Back then you could have been forgiven for thinking you'd just voted for the latest bright idea to be stolen by Labour or the Tories.

And believe me, they both tried!

But it's Liberal Democrat ministers who are delivering on our promise of constructing a greener built environment.

And we need to tell people about it.

Earlier in Conference I helped launch the party's new autumn campaign to promote our environmental successes in government.

It's a brilliant example of the influence that the Liberal Democrats have had on this government.

So after this Conference is over I want you to do one thing for me: Go back to your constituencies and prepare the RISO.

Boast about our environmental record.

Show your local residents how, thanks to the Liberal Democrats, it pays to Save Money, Stay Warm and Go Green.

And that message is more important to your residents now than ever, when every penny counts.

So our record on housing in government is clear, constructive, and definitely a cut above the others.

A solid record of achievement.

Is there more to be done?

Absolutely.

But when Labour start carping, telling you that the new homes we're building are "Labour's homes", or criticising our record, remind them of their last thirteen years.

Remind them how social housing numbers fell, and waiting lists rose. Remind them of their lack of action on the environment, and their failure to tackle empty homes. And then remind them of our record so far.

More new affordable homes.

The first net increase in the social housing stock by any government for thirty years.

A Green Deal to make our homes warmer and save consumers money.

Action on compliance to ensure that Zero Carbon Homes do exactly what they say on the tin.

And action to bring thousands of empty homes back into use.

Conference, with a record like that, I don't mind how they spell my name.