How to solve the banking crisis

It is essential that industry has the finance it needs to support our plans for increased investment. Our proposals are set out in full in our Conference statement, The Financial Institutions. We will:

• Establish a National Investment Bank to put new resources from private institutions and from the government - including North Sea oil revenues - on a large scale into our industrial priorities. The bank will attract and channel savings, by agreement, in a way that guarantees these savings and improves the quality of investment in the UK.

• Exercise, through the Bank of England, much closer direct control over bank lending. Agreed development plans will be concluded with the banks and other financial institutions.

• Create a public bank operating through post offices, by merging the National Girobank, National Savings Bank and the Paymaster General's Office.

• Set up a Securities Commission to regulate the institutions and markets of the City, including Lloyds, within a clear statutory framework.

• Introduce a new Pension Schemes Act to strengthen members' rights in occupational pension schemes, clarify the role of trustees, and give members a right to equal representation, through their trade unions, on controlling bodies of the schemes.

• Set up a tripartite investment monitoring agency to advise trustees and encourage improvements in investment practices and strategies.

We expect the major clearing banks to co operate with us fully on these reforms, in the national interest. However, should they fail to do so, we shall stand ready to take one or more of them into public ownership. This will not in any way affect the integrity of customers' deposits.

(From Labour's 1983 election manifesto, dubbed 'the longest suicide note in history' by Gerald Kaufman, with thanks to Blood and Treasure and the Red Pepper forum for pointing it out.)