It is time to trust people in Wales to make the key decisions about services for themselves rather than wait on bureaucrats in London.

I am delighted to be here and want to congratulate you on your efforts to make the party so successful in this part of Wales – part of the growing Welsh success story for our party.

As a fellow Celt I feel at home. The beautiful countryside, the importance of the tourism industry and the real significance of farming and agriculture here.

As you and I know there are no short cuts to success in areas like this.

Building up strength on the ground – winning Council seats, recruiting members and energising supporters.

So I will use this – my experience, my authority, my energy – to work with you, campaign alongside you as part of a formidable Liberal Democrat team.

Under my leadership talent will be nurtured from all sections of the party in Parliaments, in councils and in Wales, Scotland and in the regions of England.

I am passionate about that, passionate about my politics, determined to lead this party, not for my own sake but for what liberal democracy can achieve.

So we must take our unique values, Lloyd George’s Liberal values – liberty, equality, and community – values more relevant than ever and set a new agenda for progress in this century.

I have set out five priorities.

First, I will pursue the war on poverty.

We must make a reality of tackling the causes of poverty – with major investment and innovation to tackle health inequalities and raise educational standards.

And I will massively expand social and affordable housing so local people are able to buy and rent houses in their own communities.

Second, I want a democratic revolution.

Parliament, fairly elected, Commons and Lords, must hold the Government to account.

Here in Wales I want to see a much more powerful Assembly as the Richard Commission recommended.

Third, tackling the environment and energy crisis we face.

At home we must give a big boost to energy saving and use the tax system to encourage people and businesses to play their part.

Abroad we must work to persuade the United States to take climate change seriously.

On energy we must invest dramatically in renewable energy and new technology so that we can reduce our dependence on oil and say no to nuclear power.

Fourth, I am determined that Britain must work with other nations for a safer and more secure world.

Make no mistake – I want to bring our troops home from Iraq as soon as possible.

But I am clear that that process should be driven by events on the ground in Iraq, not by arbitrary deadlines marked on a calendar in London.

Fifth, I will reduce the power of the over-mighty state – with community services, locally provided, democratically accountable.

In short, here in Wales locally elected people responsible for local schools, local hospitals, local police and local transport.

Which means no to the nonsense of a single Welsh police force – the structure of policing in Wales should be decided by Welsh people and not by Whitehall.

I know it is time to trust people in Wales to make the key decisions about services for themselves rather than wait on bureaucrats in London.

I also know that local people do not want the unfairness of Council Tax, but the fairness of a local income tax.

My leadership – values and integrity, judgement and credibility.

Positive policies.

A credible, distinctive, principled party.

Working together, going forward.

Not looking inwards, but reaching outwards.

Not a debating society but a party of local and national power.

Liberal Democrats in Government.

Nothing less will do for Wales and Britain.