1981 was the year when, at the age of 14, I went full throttle into supporting the SDP/Liberal Alliance. Shirley Williams was my absolute hero and will always stay that way. But I will never forget the sense of hope instilled by David Steel in his leader’s speech, especially that optimistic crescendo at the end when he instructed the assembled activists: Go back to your constituencies and prepare for Government.

We had to wait a long time for national government. It was nearly 18 years before Jim Wallace took the Scottish Liberal Democrats into a successfully transformative coalition at Holyrood which introduced, over 8 years, free personal care, free eye and dental checks, much needed land reform and STV for local government among other things.

It was 29 years before the coalition with the Conservatives at Westminster provided some stability for the country at a time of crisis but sent our electoral fortunes plummetting.

However, we did start making big gains in local elections and winning councils a lot quicker, so in a way he was right that we were ready for power. And we should never dismiss the difference that councillors, in charge of schools, housing, roads and bins, can make to people’s daily lives.

Steel’s speech from 40 years ago is online on the British Political Speeches website.

Here are some highlights:

On the newly formed Alliance – and some advice to the SDP – don’t just let anyone in:

It was inevitable that this 1981 Liberal Assembly should be dominated both by public debate and private discussion of our Alliance. This town used to be part of Lloyd George’s constituency. Two years before the great Liberal landslide of 1906, the years which introduced the People’s Budget, the old age pension, unemployment benefit, and the curbing of the powers of the hereditary Lords over the elected Commons, he gave advice which seems just as appropriate today two years or so before the next election.

We have arrived at one of the most important stages in the history of the Liberal Party. I believe the future of this country largely depends upon the foresight, conviction, courage and devotion to principle of the Liberal Party during the coming years.

Our debates have carried conviction, courage, principle and foresight in full measure in these last few days. The task of putting together our Alliance on the ground throughout the country is not going to be an easy one. We must secure a reasonable balance in our deployment of forces in every area. It will be immensely complicated. It will call for a high degree of vision, of trust and of forbearance both by our party and by the SDP.

It will require trust between our two parties. The members of the SDP who have been here this week have been greatly impressed in their first close contact with the Liberal Party. They have also enjoyed the warmth of their welcome, and we were right to treat them kindly since they’ve come from a broken home – the Labour Party. I hope they won’t mind if I give them one piece of advice: as the ship of the Labour Party sinks, be careful and be discriminating about who you let clamber on board ours. Ours is a ship on a voyage of adventure. Don’t let it become a lifeboat for those whose only real interest is saving their parliamentary or council skins.

It will also require trust within our party. I want to thank you for the very considerable trust you have shown me in what I realise must at times have been a tortuous and anxious period. Now it is my turn to trust you as you proceed to give effect to our Alliance throughout the country. And I do trust you to make a success of it.

What we would do in Government? Some themes there which are similar to what we are saying today about supporting small businesses, not wasting our natural resources and investment in infrastructure: