1802Thanks for joining us for day two of our live coverage of the Lib Dem conference - we are calling it a day now. If you still have an appetite for more, join us again tomorrow morning when the live text coverage, and the conference, continues.
1747The Green Party is less impressed by Mr Huhne's speech. Leader Caroline Lucas said: "He's wrong about nuclear. It won't deliver emissions cuts fast enough or big enough. And he is being completely disingenuous about no public subsidies." Furthermore, Mr Huhne's "green deal" is a "pale shadow of the Green New Deal that green organisations are demanding," she adds.
1730 Friends of the Earth tweets: "@BBC_HaveYourSay: Huhne 'greenest govt ever' ambition essential - but can he deliver if budget slashed in spending review?"
Read Friends of the Earth's tweets
1728Responding to concern about post offices being closed and Royal Mail being privatised, Lorely Burt, chairwoman of the parliamentary party, said the post office was "not for sale" and there would no further programme of post office closures. But she said Royal Mail was in a "dire financial position". The coalition wanted to save the universal postal service for the future, a fair deal for taxpayers and a role for employees. She said that might involve part privatisation of Royal Mail.
1713 Tim, from Truro, Cornwall, writes: "Go for it Vince. Nail the banks hard when they abuse taxpayers money, and taxpayers suffering from the credit crunch. Tighten up the system. I hope the coalition get their teeth deeply into this issue. I believe they will. Results need to be shown!"
1710 Ian writes: "Automatic award of "bonuses" is absurd and should therefore be counted as salary and taxed accordingly. Bonuses awarded for exceptional profit making on behalf of the organisation, exemplary conduct such as working long hours or industrial innovation or improvement in production efficiency may be rewarded with a bonus but also taxed as all my overtime and bonuses were!"
1643Education Minister Sarah Teather has told the conference how she used to be on benefits. She said she received disability living allowance when she was young.
1636Shadow energy secretary and Labour leadership frontrunner Ed Miliband has blasted Chris Huhne for, among other things, not putting money into a green investment bank or upgrading Britain's ports, which he claims is vital for the offshore wind industry. "Going green involves tough choices and he has ducked them all, including pandering to his party on nuclear power when the industry needs certainty to invest."
1628 Jules Birch, writing for Inside Housing, publishes the blog post
'Ray of hope?'
in which, he says, "Nick Clegg's announcement on tax increment financing (TIF) yesterday means that councils will get new powers to borrow against their future additional income from business rates to fund infrastructure.
1624Has Steve Webb let the cat out of the bag over Iain Duncan Smith's plans for sweeping reforms of the benefit system? IDS wants to scrap the exisiting, complex system of out-of-work benefits and replace it with a single payment aimed at making work pay. But it will not be happening in the near future Mr Webb, a junior minister in his department, has indicated. "I think the big reform of dynamic benefits and so on could be up to four years away," he said.
1620 Mark Pack, writing for the Lib Dem voice, publishes
'Tom McNally shows how it's done'
, a blog post detailing, according to Pack, an "excellent speech today from (Lord) Tom McNally."
1614Activists vote unanimously to back the Pakistan flood motion.
1609They are debating an emergency motion in the main hall calling on the government to increase pressure on the international community to increase flood aid to Pakistan. The UK public has been generous but there has been widespread "apathy" elsewhere, activists have been saying even though the people in Pakistan are still in desperate need.
1607 Tim, from Chandler's Ford, Hampshire, writes: "I saw Nick Clegg's speech on TV. I think he is right all the way. We all need to work and make that contribution to help get us out of this financial crisis. The cuts needs to be fair of course but let's not kids ourselves, the cuts will hurt all of us before it gets better. We cannot keep our heads in the sand any longer."
1602The CBI welcomes Chris Huhne's commitment to nuclear power and clean coal and gas technology, but has concerns about some of his other plans. Director General Richard Lambert says: "We remain concerned about the risks of a unilateral move to raise the EU emissions reduction target to 30%."
1550 BBC's Laura Kuenssberg tweets: "Another hint of shake up of party funding-Huhne says in 2015 millionaires will write cheques to 'the taxman, not party treasurer'"
Read Laura Kuenssberg's tweets
1549On the environment, Mr Huhne made much of David Cameron's pledge that this will be the "greenest government ever", insisting he would make sure it would be.
1546 Mel Richards, from Edinburgh, writes: "Cuts are not "the only choice". What happened to the £10,000 tax-free allowance the Lib Dems were promising during the election. It AND the IDS welfare 'reforms' could be fully paid for by scrapping tax credits entirely."
1545A standing ovation for Chris Huhne as he ends his speech with an impassioned defence of the coalition, telling activists "our time has come to fight for our values and our country". But he also goes out of his way to soothe nerves over May's local elections, telling activists they should fight on their local record - "we will win where we work". And he has his own spin on Nick Clegg's message about sticking with the party for the full five years. He lists what the coalition hopes to have achieved but says that although no one will be able to vote for the coalition in 2015, the Lib Dems will be able to tell voters "if you like partnership politics this is the party to vote for."
1544 Business Secretary Vince Cable has warned banks they could face more taxes if they pay out "outrageously large" bonuses. Is this fair? Join the
Have Your Say
debate.
1537More new policy - he's going to launch a "new government-wide carbon plan" to "ensure real action on climate change" across all government departments. It has backing from the very top, he tells conference. "David", no less, is behind it.
1535Here comes the policy announcement on forcing energy companies to be more transparent on their prices.
1534Nuclear power now - Chris Huhne is fed up off the stand-off between nuclear and renewables "which means we have neither". He vows low carbon energy and security of supply - but stresses that there will be no public subsidies for new nuclear reactors. He's said all this stuff before, but not to a Lib Dem conference traditionally hostile to nuclear power. It seems to go over pretty well.
1532Mr Huhne vows to make the UK the "fastest growing" country in Europe when it comes to renewable energy, saying it is bottom of the league table at the moment.
1530Chris Huhne is talking up his "green deal" legislation, which he will launch "before the end of the year". He describes as "most ambitious" effort ever attempted to improve energy efficiency in homes and businesses in the UK.
1525Energy secretary Chris Huhne's on stage now. He revealed at a lunchtime fringe meeting that he had instructed his officials to look at the impact of a 1970s-style oil price spike on British industry, arguing that "£45bn could come out of GDP in two years and that would hit investment and it would hit jobs. So the low-carbon economy is also a premium which we pay to ensure ourselves against those sorts of oil price, fossil fuel price, shocks"
1523Local government minister Andrew Stunnell on the coalition's bonfire of the quangos: "It was impossible to tell what some of them were doing or have ever done."
1520 BBC Political Editor Nick Robinson has published his new blog post
'I don't agree with Nick'
which includes his interview with the deputy prime minister on Tuesday morning. He says if "Nick Clegg had stayed in Liverpool - instead of heading Stateside - on the day after his leader's speech he would not have liked what he would have heard."
1517Here's a fascinating admission. Andrew Stunnell has warned Lib Dem members to be careful what they wish for. One of the things the coalition has exposed is that most "have no idea what Lib Dem policy is", says the MP. Half the time the coalition policies they complain about the most have been in the Lib Dem manifesto for years. As one of the men who put the deal with the Tories together over that fateful weekend in May, he should know what he is talking about.
1513 Phil Williams, from Alcester, writes: "So Vince Cable has warned the banks that the Government is 'considering potentially quite tough sanctions....' While the rest of the country is suffering after the banks' despicable behaviour over a period of years, it seems there may be a possibility they could suffer slapped wrists. And bankers warn that they would probably move somewhere else if sanctions were applied. Well they would, wouldn't they!"
1508Here's something you don't often hear at a Lib Dem conference: "Stop reading the Guardian. It is a spreader of misinformation and lies on this". That was Health Minister Paul Burstow responding a question from the floor about the Conservatives springing policy announcements on the coalition without consulting their Lib Dem partners. It's all in the coalition agreement and the manifestos, he says.
1503Equalities minister Lynne Featherstone has said the government will "listen very carefully" to Lib Dem demands for gay marriage to be legalised. The Lib Dem MP, who was in the hall when delegates voted to back the motion, said she could "hear the growing call" for same-sex couples to be given the same right to a wedding as mixed-sex couples.
1458Steve Webb, whose unlikely double act with Iain Ducan Smith at the DWP is a constant source of wonder, has been explaining his conversion to ideas such as outsourcing of welfare-to-work to private companies and tackling benefit dependency, admitting he used to think it was solely about the money, "that as long as we are paying a decent amount of money the job's done".
1455Praise for Lib Dem policy from an unlikely source. Carole Hughes, managing director of debt collection agency Daniels Silverman Ltd, said: "The proposal by the Liberal Democrats to use professional debt collection agencies to recover unpaid taxes should bring huge benefits to the UK taxpayer."
1449On cuts Education Minister Sarah Teather told a question and answer session that it was going to be difficult. She said it was partly about "joined up" government and that it was important for departments to work together.
1445TUC leader Brendan Barber has appeared at a fringe event, arguing vehemently against the coalition's spending reduction plans, says the BBC's Justin Parkinson. He said: "It's the parts of the country who felt the impact of the economic hardships [of the 1980s] which are going to find it hardest to cope with this latest round of cuts."
1443 Peter Tatchell tweets: "Lib Dems have followed the Green Party in voting today for same-sex civil marriage and straight civil partnerships. Full equality. Bravo!"
1439 Darren Lewis tweets: "The Guardian asks why willing human shield Nick Clegg is more popular amongst Tories than Lib Dems"
1428 B Smith, from the UK, writes: "The most important thing here is the word "FAIRNESS". Change the pension age back to 60 for those of us who have worked continously since we were 15. It's totally unfair that we have to work longer than someone who was born a few years earlier and commenced work later. Our pensions will cost less than keeping someone on the dole. If we can give up work at 60 it gives the younger people a chance of a job. Pensions should be calculated in "YEARS WORKED - NOT AGE". The Government could still fulfil their aim that way. Cameron spoke about fairness - lets see it."
1427Could the nation's cyclists be in for some good news? Transport minister Norman Baker may have something up his sleeve to announce on Wednesday, reckons the BBC's Gary O'Donoghue.
1410 Simon Hughes suggests the Lib Dems are split over the idea of a Big Society with some ministers happy to use the phrase and others not, writes the BBC's Gavin Stamp. Hughes tells a fringe there are opportunities for more voluntary input into public services but there has to be democratic accountability.
1358Just to be clear - Vince Cable is not ruling out a tax on bank bonuses if they don't curb what he sees as their excesses. This could take the form of a tax on profits or a tax on transactions, he told the BBC News Channel earlier, but it was a complex, international problem and it was important to devise something that "would produce the right outcome".
1338St Austell and Newquay MP Stephen Gilbert, one of many to make impassioned speeches backing gay marriage, is delighted by the result of the vote. "This policy underlines, once again, that equality is in the DNA of our party," he says. "Today, Liberal Democrat members showed that the party remains in the vanguard of the progressive movement and won't settle until everyone enjoys equal status."
1331Sarah Teather says Lib Dems should embrace the Tory idea of a 'Big Society', saying it is a liberal concept, according to the BBC's Gavin Stamp. But the education minister tells a fringe meeting her civil servants have not yet got the hang of how to go about developing ideas.
1322 Jules, from Penzance, writes: "The TUC Leader Said: "There is real concern that the government's programme of deep spending cuts, while our economy is still fragile, will spark spiralling unemployment in both the public and private sectors." Rather that, than the ridiculous spiralling of over employment of more and more public sector workers who are employed for no real need or reason. In fake, created jobs and committees, that sit around tables making decisions but actually do nothing whatsoever productive."
1314 BBC's Laura Kuenssberg tweets: "Vince Cable suggests the 'FAT' - tax on banks pay and profits to curb bumper bonuses."
Read Laura Kuenssberg's tweets
1309Vince Cable has told Radio 4's World at One the government is considering "potentially quite tough sanctions" against banks that make large bonus payments. The business secretary says it is wrong that bankers will walk away with "outrageously large sums" while other people suffered hardship because of a crisis the banking sector caused. At the modest end of the scale, he says the government is looking at how to implement the Walker report and force banks to disclose more information about bonus payments. "At the other end of the scale, there are potentially quite tough sanctions in terms of tax policy," he tells WATO. Mr Cable said the government could look at a tax targeting high profits or a financial transactions tax.
1303 Robert Steadman tweets: "@BBC_HaveYourSay He's trying to scaremonger to justify his decision. His cuts are risking a double dip."
Read Robert Steadman's tweets
1302 Yonmei, from Scotland, tweets: "@BBC_HaveYourSay Nick Clegg is a cheap-labour conservative coming out in his true colours. Cutting public spending will prolong recession."
Read Yonmei's tweets
1301 Sam Burnett, writer for Autoblog UK, posts
'Fuel duty could soar under Lib Dem plans'
. Burnett is concerned about rising fuel prices: "The Energy Secretary has backed plans to raise £15 billion in environmental taxes that could see 30p being added to a litre of fuel."
1300On the Daily Politics, Simon Hughes comes pretty close to calling David Cameron a "neanderthal" for backing first-past-the- post voting. He backpedals, saying the Tory leader is "decent" and "honourable" but wrong on this issue.
1256BBC's Laura Kuenssberg tweets: "Simon Hughes tells conference 'this is our moment' in a final flourish at the end of his speech"
Read Laura Kuenssberg's tweets
1255It's lunchtime in Liverpool (and everywhere else in the UK, come to that). Simon Hughes, clearly still on a high following his speech, is being quizzed by Andrew Neil on BBC2's Daily Politics about why delegates are not more upbeat about being in government. These are "serious times", say the Lib Dem deputy leader, "it's no good being triumphalist about it."
1248Deputy leader Simon Hughes, who has just finished his speech, was on his very best behaviour, repeating Nick Clegg's message about judging the coalition in the long run and vowing to deliver on fairness, freedom and the environment. "This is our moment," he told delegates. "This is the best opportunity in the lifetimes of every single person in our party and in this hall. We are going to take this opportunity and we are going to take it together."
1244This is the first government since the Second World War to represent the majority of British people, argues Mr Hughes.
1239Mr Hughes takes a swipe at the Miliband brothers: "Grow up and realise that you lost the election."
1236It's barnstorming stuff from Mr Hughes - the sort of speech Nick Clegg could have given if he had been more sure of where he stood with ordinary members. "We are on the pitch! We are in the game!," he shouts, rejoicing in the fact that the party he has represented for 27 years in the Commons finally has its hands on power.
1229Say what you like about Simon Hughes but he knows how to connect with Lib Dem party faithful. His jokey start - he pretends to leave the stage after saying he was too nervous to make a speech in case he was accused of being a troublemaker by the press (heaven forbid!) - goes down a storm. Just to avoid any doubt he declares, with heavy emphasis, "I am a rock solid supporter of the coalition".
1224Deputy leader Simon Hughes is addressing conference now. He begins with a fulsome tribute to former Rochdale MP Cyril Smith, who died last month, who he says "gave politics and straight-talking a good name," and Richard Livesy, the "gentle giant of Welsh politics," who died last week. Delegates give them a standing ovation.
1219More on the banks: Vince Cable says the government is looking at "different options" to try to change their behaviour on bonuses. He said he was not calling for a new tax on bonuses - but pointing out there was a combination of things that could be done, tougher regulation, forcing the banks to disclose more figures or "different kinds of tax as a disincentive" for banks to pay out big bonuses. He said both the Lib Dems and Tories were concerned about the issue - but BBC correspondent Laura Kuenssberg said it remained to be seen if Chancellor George Osborne would feel as comfortable talking about it, as the business secretary does at the Lib Dem conference.
1216Delegates vote overwhelmingly in favour of the motion calling for same sex marriages to be legalised.
1214Ex mayoral candidate Brian Paddick tells delegates how he got married to a "gorgeous Norwegian man" last year - "an intensely moving experience". "My husband and I", he adds, feel marriage is important, but they are only legally married in Norway. There should be equality in the UK, he says. He also hits out at Stonewall, saying "equality is equality".
1211 Neil, from Halifax, Yorkshire, writes: "Clegg and Cameron are unfortunately following economic theory that has been shown to be false by the financial crisis. The public deficit is nothing more than the accounting counterparty to private sector savings. All it says is that the private sector is saving a lot at the moment. It is not something to get worked up about in itself."
1208A transexual woman, Jenny Barnes, of South West Surrey, tells delegates how she would not be allowed to get married in church. Luckily she's an atheist. She urges delegates to support the motion.
1207Ed Fordham, of neighbouring Hampstead and Kilburn, gets a huge round of applause as he urges the government to "stop faffing around" and get on with legalising gay marriage. He attacks gay group Stonewall, which he says is against the motion because it could lead to tax losses on pensions, again earning a huge cheer. Apart from anything else, he says, the boost to the milinary industry from his mother if gay weddings are legalised would be worth it.
1203 BBC's business editor Robert Peston's newest blog post is up:
'Should bank chairmen kill bonuses?'
Peston says: "the deputy prime minister this morning told the Today programme that the coalition might well impose an additional punitive tax on them (banks) if they remunerate their superstars in that kind of "offensive" (Nick Clegg's words) way."
1200Nick Russell, of Camden, is opposing the motion, with what he admits is scant hope of success. It's a novel argument - he thinks civil partnerships are enough and the battle they should be fighting is against forced marriages and they should sent out a signal that people should pair up on the basis of love, whatever the legal arrangement.
1158The Quakers are coming out of the woodwork. Three in a row have now spoken out in favour of same sex marriages. Their commitment to equality has overpowered any religious objections they might have had.
1154After Nick Clegg's strong words on bankers' bonuses to the BBC earlier, our correspondent Laura Kuenssberg says she has been hearing that the government might look at some kind of additional, second bank tax - in addition to the bank levy already announced - and she'll be asking Vince Cable about it in a bit.
1151We are deep into Lib Dem territory now. The atheists are calling for humanist wedding ceremonies. The Lib Dem Christian fellowship is arguing that marriage and civil partnership are different and should remain so and the traditional methodist wing of the party will never wear the humanist proposals. It's all very civilised of course.
1150 Roger Waterfall, from Silsden, Yorkshire, writes: "We can no longer afford nuclear weapons. Abolishing them will save billions. We need to realise we are no longer wealthy enough to participate in distant wars and should move politically to a less aggressive stance. Cutting all aspects of the 'Defence' budget drastically, could leave Health and Education with minor cuts and still reduce our borrowing significantly. Why can't the Liberal party see that?"
1148The big wheel outside the conference centre, with its panoramic views of Liverpool, is proving a popular attraction, says the BBC's Justin Parkinson. But one eminent TV figure - not of the BBC - was overheard telling colleagues he would only take a ride on it when inebriated, or words to that effect.
1147Gay marriage now. Former MP Evan Harris spoke up for this one, arguing that now was the time to push for full equality - including allowing opposite sex couple to have civil partnerships. Equalities Minister Lynne Featherstone watches from her seat in the hall.
1144 Alex Samson tweets: "@BBC_HaveYourSay No type of cut will ever be deemed fair. You can't have an objective debate on this issue."
Read Alex Samson's tweets
1143Delegates have voted to back the motion on fairness - including amendments calling for child benefit to remain universal, to explore the possibilty of a graduate tax and build more social housing.
1136 Channel 4 Presenter Jon Snow has updated his
'snowblog'
with a post about the Cleggs. He says Nick Clegg is "a nice enough guy close up". But, he says, it is "hard to stay rooted to the spot as his wife Miriam González Durántez passes though my field of vision in an unmissable red number."
1135The conference voted earlier to push for proportional representation in English council elections. Delegates also called for 75% of local authority spending to be raised through local taxes.
1130 Some long-term planning from Justice Minister Lord McNally, says the BBC's Justin Parkinson. The Lib Dem peer reveals that he and Tory boss Ken Clarke are working out the best way to celebrate the 800th anniversary of Magna Carta, in 2015. The colleagues will be going to Runnymede, the Thames-side water-meadow where the deal between the barons and King John was sealed, in the next few weeks.
1129 George Eaton, writer for the New Statesman rolling blog, has reported that the Lib Dem website has been
'hit by abusive tweets'
. Eaton says the "website carries attack on Miriam Clegg and reports of activist discontent."
1126There's no conflict between universal child benefit and "progressive" welfare cuts because child benefit should not be means tested, explains one delegate. "I can cope with the odd bankers' wife having a capuccino on the state", she says, because child benefit is needed by many vulnerable women. Let's keep this "much loved, much trusted" benefit available to all, she adds.
1120Lib Dem MP Bob Russell, not seen as one of the greatest supporters of the coalition with the Tories, has made a none-too-subtle sartorial display of his feelings. Mr Russell, who represents Colchester in Essex, gave a speech during the debate on government cuts wearing the brightest yellow waistcoat imaginable, says the BBC's Justin Parkinson. The lining was not blue, one imagines.
1118 BBC's Laura Kuenssberg tweets: "Delegate accuses George Osborne's description of people on benefits as a "lifestyle choice' as 'contemptible'"
Read Laura Kuenssberg's tweets
1112 John Johnstone, from Glasgow, writes: "Cuts do need to be made as I think this will make the public sector look at more efficient ways of operating within tighter budgets and reduce a lot of wasted money. Concerned that the cuts might be going too deep if it means less police officers and more unemployed etc. We should also be looking at higher taxation for the better off."
1107Ros Kayes, of South Dorset, has just urged Lib Dems to stop George Osborne "running rampant like a reaper of death" through the welfare system.
1104Right on cue, MP Bob Russell appears on the platform to boast about how he made George Osborne come to the Commons to explain an extra £4bn in cuts he told the BBC he was planning. "I do not accept that cuts are fair and they are a contradiction in terms," he says. He urges ministers to be careful in the language they use, telling delegates of a letter he received from a disabled woman who said she was contemplating suicide over the cuts.
1104 MP for Cambridge Liberal Democrat Julian Huppert tweets: "Apparently I was on newsnight last night, and I'm told I didn't come across as a complete idiot. Anyone see it? How bad was it?"
Read Julian Huppert's tweets
1059 Paul Romney, from Baltimore, MD, USA, writes: "When I was knocking around Toronto in the 1970s, I would see stickers proclaiming: "The Solution to the Crisis: Make the Rich Pay." The only "fair" cuts are those that target those who have more than their "fair" share."
1056George Osborne is emerging as a bogey figure for some plaftorm speakers. They may have been pleasantly surprised by their Tory partners on some issues, but they don't trust the chancellor or the Treasury to deliver on fairness. They are also disturbed by Danny Alexander's rhetoric on the deficit, even though he is one of their own.
1044 Michael, from London, writes: "Clearly cuts are needed over a period of time, which must be subject to revision if necessary (e.g., if we find ourselves in a "double dip" recession). The best way of making the cuts "fair" would be to incorporate an element of means testing in the provision of benefits such as the winter fuel allowance and free bus travel for the elderly, child benefit and, possibly, the state pension, all of which are currently paid to the wealthy as well as to those who are not so well off."
1043 Greenpeace climate campaigner Louise Hutchins reports from the Liberal Democrat party conference. In her blog post
'Pressure builds for green delivery at Lib Dem conference'
she says "new polling by YouGov for Greenpeace shows 50 per cent of Lib Dem voters think the government should give greater priority to protecting the environment."
1024Energy firms will never again be able to spring "outrageous" price increases on their customers, Chris Huhne will vow in his speech this afternoon. The energy secretary will step in to ensure the companies provide up-to-date tariffs for consumers if regulator Ofgem fails to make them do so, he will say.
1023A surprising admission from the Lib Dem fringe, says the BBC's Justin Parkinson. Chief Secretary to the Treasury Danny Alexander, who ran the publicity machine for the campaign to join the euro in the early 2000s, has said
Labour made the "right decision" in not pushing ahead with a referendum on the subject.
He told a meeting he was "relieved" Gordon Brown had ruled out such a move in 2003, as it gave the UK greater "flexibilities" to avoid the sort of crisis besetting some European countries in recent months. But there was still a case for joining the euro "in the long-term", he added.
1016This morning's debate on gay marriage should also be a good one. The motion calls for marriage to be opened up to same sex couples and for the ceremonies to be conducted in places of worship. Not likely to go down well with the traditionalists in the Conservative Party.
1015 Jeff Henry, from Essex, tweets: "@BBC_HaveYourSay we need to remember why we voted out the previous party, we need to get it behind us now so we can move on more quickly."
Read Jeff Henry's tweets
1012Conservative minister Francis Maude is due to speak at a fringe on the future of the coalition at lunchtime with Simon Hughes. Should be a good one.
1009 Anthony Myers tweets: "Cameron apparently approved Clegg's speech to his own party. Now, that's the new politics. #LDconf @BBC_HaveYourSay"
Read Anthony Myers' tweets
1007Lord McNally is harking back to when the SDP merged with the Liberals - marvelling at how the "sandal-wearing, celery munchers" from that era are now leaders of major local authorities and government ministers. It just proves you should never judge by appearances, adds the former SDP and Labour MP. "You scrub up very well", he tells delegates.
1004Lord McNally is folllowed by a debate on "ensuring the fairness in a time of austerity", which includes an amendment calling for universal child benefit to be guaranteed and another amendment calling for any benefit cuts to be "progressive", hitting the better-off more than the poor. Potential conflict of interest there.
0952 David Leonard, from Manchester, writes: "We will end up back in a recession. I am a small business owner and we are still fragile. The poorest in our society are going to suffer. We will have no chance of surviving five years if one does not change its policy."
0950They are debating localism in the main hall at the moment - well inside the Lid Dem comfort zone. Justice minister Lord McNally is the first big speaker this morning - a man who has been on quite a political journey since his days as an adviser to Labour PM Jim Callaghan in the 1970s.
0950 Mark Dowe tweets: "@BBC_HaveYourSay For a start, 78% cuts, 22% tax rises would, in many people's eyes be deemed totally unfair. Not according to the Govt."
Read Mark Dowe's tweets
0947 TUC leader Brendan Barber, a vehement critic of the cuts programme, is due to address Lib Dem activists at a fringe meeting on Tuesday. Are you a critic of the cuts programme? Are cuts the "only choice"? Join the
Have Your Say
debate.
0946Nick Clegg has said no to David Cameron. And Mr Cameron has said no to him. Unfortunately, the Lib Dem leader would not tell Nick Robinson what their disagreements were about. Stil, he had to ask.
0945Nick Clegg is doing the TV and radio rounds this morning before heading off to New York for a UN summit. He's basically hammering home the message of his speech from yesterday - stick with us, it's a marathon not a sprint and bankers had better clean up their act or else.
0908 BBC's Laura Kuenssberg tweets: "Conference just opened for the day - the hall pretty sparse - must have been a late night for lots of delegates!"
Read Laura Kuenssberg's tweets
0906The Lib Dems are enjoying squeezing public services - sort of, says the BBC's Justin Parkinson. Delegates arriving at the conference hall are being presented with "squidgy" toy pillar boxes by actvists from the Communication Workers' Union. These small objects of desire bear the slogan "Keep the post public". Maybe someone should act in the make-do spirit of these straitened times and convert them into novelty pepper pots?
0858 BBC's Laura Kuenssberg tweets: "Clegg leaving for US - but strong words this morning for bankers on bonuses - govt will 'not stand idly by' if payments are enormous"
Read Laura Kuenssberg's tweets
0857 Robert Crozier tweets: "@BBC_HaveYourSay what's fair about paying more in debt interest than on schools and the police?"
Read Robert Crozier's tweets
0854 Jean Lucas, from Lincoln, writes: "I am sick and fed up with 'banker knocking', as Nick Clegg has just expounded on Radio 4. Not all bankers are intent on 'robbing' the public or one another."
0834Hello and welcome to the second day of our live coverage of the Liberal Democrat conference in Liverpool. I'll be bringing you regular updates, analysis from top BBC correspondents and the best of your comments and tweets. Today there will be a vote on gay marriage, cuts and a Q and A session for junior ministers. Yesterday Nick Clegg urged members to
"hold our nerve"
by serving a full five years in government.
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