Murphy's government thrift call

Paul Murphy said his 'close friend' Rhodri Morgan was 'a true statesman' Murphy's sermon to party's soul

Welsh Secretary Paul Murphy has told the Welsh Labour conference that the government has to "tighten its belt" as the recession deepens.

Addressing the last day of the Swansea conference, he said it would be wrong to make "deep cuts".

But he admitted government would have to watch spending "just like families and businesses around the world".

Mr Murphy appealed directly to voters with a speech full of references to Labour "values" and "ideas".

He also paid tribute to Welsh Labour leader, Rhodri Morgan, who is due to step down this year, calling him an "immense figure" and a "true statesman".

His warning on public spending comes as opposition leader David Cameron has been telling the Conservative Spring Forum he plans to "replace Labour's spendaholic government with a new government of thrift".

Put simply, a Tory government would not have taken the action necessary to help people in tough times Paul Murphy

But the Secretary of State for Wales defended Labour's efforts to get to grips with the economic crisis.

"While Labour is taking action to help families and businesses, the Conservatives remain the do-nothing party, opposing the action Labour is taking to stimulate the economy," he told delegates in Brangwyn Hall.

"Put simply, a Tory government would not have taken the action necessary to help people in tough times."

Mr Murphy targeted his speech at the party faithful and around 200 delegates stayed until the conference's final day to hear it.

"Times change, but one thing remains the same - our basic values: socialist, Welsh, fair, decent," he said.

'Battles ahead'

Mr Murphy insisted Labour could still perform well in the upcoming European elections and the next general election.

"We can win by standing up for our record in government," he said.

"So we can be positive about the battles ahead.

"If we are confident, set our minds to it and put in the hard work, we can return two MEPs in June, and we can deliver a fourth term for Labour."

Mr Murphy reserved a section of his speech for an attack on Welsh Labour's coalition partners in the Welsh Assembly Government, Plaid Cymru.

Wales 'owed Rhodri Morgan an enormous debt,' said Mr Murphy

He said: "Now is the worst possible time for Plaid's separatist dream - Wales' isolated nightmare.

"While Plaid immerse themselves in their constitutional obsessions, Welsh Labour AMs, MPs, councillors and MEPs get on with the job of making devolution work for the people of Wales."

On Saturday, Rhodri Morgan used his last speech as leader before stepping down later this year to urge voters to "stick with Labour" during the economic crisis.

He said devolution was "earning its stripes" all over again as the 10-year-old Welsh assembly had "evolved something new for Wales" by bringing together business, public sector and trade union leaders in a series of economic summits.

Mr Murphy offered a glowing appraisal of Mr Morgan's tenure as Welsh Labour leader and First Minister.

'Stick with Labour'

"Rhodri and I have been close friends for nearly a quarter of a century," he said.

"Since becoming our first minister, he has embodied Welsh Labour devolution, and he has established himself as a true statesman who has earned the respect of all Welsh people, irrespective of party allegiance."

"We and the whole of Wales owe him an enormous debt."

The conference, which also saw speeches from Prime Minister Gordon Brown and Deputy Leader Harriet Harman, came to a close with an event called "Fairness not Fear", which drew attention to Labour's campaign against the British National Party.

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