Preparation for power

only by their desire to stay in office''. The following day Shadow

Scottish Secretary George Robertson declared to delegates: ''The Tories

have been rumbled and their time is over.''

Party conferences are in part for leaders to put heart into the

faithful, and in opposition we-are-on-our-way-to-victory-next-time

speeches have to be made.

However, the verdicts delivered by Messrs Smith and Robertson did not

sound much over-the-top given the Government's wretched performance

almost since it won re-election not quite two years ago. More sensitive

Labour supporters may still flinch when they hear ''next time''

speeches.

Hopes may not have been particularly high in 1983 but in 1987 Labour

seemed in with a chance and in 1992 they had to be favourites to win.

But Labour MPs have not just the polls to comfort them now. At

Westminster they daily see a troubled and uncertain Conservative

parliamentary party brooding over a troubled and uncertain Government.

Three years, though, is a very long time in politics. Mr Major, should

he survive, will hang on in the hope of his luck turning. Any successor

will need time to try to create a new image for his party. But Labour

has good grounds for hoping that, with the Tories failing on previously

strong policies such as taxation and law and order, with a clutch of

other policies going wrong and a general air of not knowing what they're

doing, the voters may indeed decide it is time for a change when they

are offered the opportunity.

The Dundee conference, briefly illuminated by a good speech from Mr

Robertson and bright, briefer contributions from one or two others, was

in general as stolid as Mr Smith's address. On the Saturday the national

executive spokesmen gave notice that they are still worried about the

leadership's approach to taxation and obtaining economic growth. The

conference even pushed through a resolution which went much further in

terms of government intervention and public ownership than Mr Smith and

Mr Brown feel like going.

Speakers sought to pin down the future government on preserving

universal welfare benefits with an independent review board to ensure

adequate upratings. There was more than one call to kill VAT on fuel by

zero rating it even if this meant defying European Union rules. Another

speaker said: ''We are going to have to invest a lot of money to

encourage people to go for public transport.'' One optimist even wanted

the next Labour Government to revive the shipping, coal, and steel

industries.

I mention these and could mention more to make the point that whatever

sea change four election defeats have made on the ideas of the party

leadership many of the party activists still believe that at the end of

the day it is up to the Government to put things right.

Mr Brown could end up as a latter-day Philip Snowden if the cautious

and orthodox fiscal and economic approach he and Mr Smith favour does

not deliver some goods. Hypothecating an extra 1p on income tax for the

NHS and perhaps 1p for education or something else might be the tax

answer if the leadership believes closer to election day that it can

take the risk.

The business plan for the economy needs to be fleshed out if it is not

to be seen simply as Labour joining the present Government in admitting

that it dare not tax to the level needed to provide services the public

needs or demands.

The Opposition is, however, showing signs of sensibly preparing for

government by initiating studies to work out what it should do when the

great day comes, such as those announced for dealing with local

governments and quangos in Scotland. Across the government departments

this needs to be done, for a Labour Government needs to hit the ground

running and must have as detailed plans as possible to work on from day

one.

Labour's economic dilemma was well expressed at the conference by Alex

Falconer, MEP for mid Scotland and Fife, though he did not express it as

a dilemma. Britain could not, he said, undercut the person in the

Philippines who was even now working hi-tech equipment for a hi-tech

industry for about #100 a month. Britain needed a social economy, he

said. Time did not permit him to indicate of what this would consist and

how it would finance the considerably increased leisure time that he

regarded as desirable.

But the dilemma is real enough. Mr Smith declared that his aim is a

high-wage, high-skills, high-investment, and high-employment economy.

Modern technology, however, appears to be advancing towards requiring a

comparatively few highly skilled persons to design, make, and service

machines and a large number of persons like those in the Philippines

willing to operate them for what seems to us very little money.

Traditional manufacturing looks beyond reviving. Service industries do

not look likely to produce millions of high-wage jobs. What engine runs

the social economy?

Dundee seemed to show Labour less troubled by vulnerability to the

SNP. ''Labour is Scotland's real national party,'' Mr Robertson declared

roundly and the delegates responded as if they believed it. He rightly

criticised the blame-the-English school of nationalism and sensibly

declared: ''The Scottish people can see higher.''

An unexciting conference has left the Labour faithful in good heart

but with several basic questions still to be answered by their leaders.