Political correspondent John Kampfner: "A breakthrough beckons"

The Lib Dem leader tackled the ticklish issue of relations between the two parties head on when he challenged the prime minister to prove he was not a "control freak" and implement a new voting system.

Paddy Ashdown: "The strange rebirth of Liberal Britain"

Mr Ashdown said Mr Blair's response to the Jenkins Commission's report on electoral reform due out next month would decide the basis of their parties future relations.

Respect

He said: "You have honoured, when many said you didn't need to, commitments you made on constitutional change before the election. And I respect you for that.

Ashdown is staking his future on constructive opposition

"But I have one great question about you. Are you a pluralist or are you a control freak?

"Your decision on fair votes will tell us which. It will reveal what kind of government yours will be.

"It will determine the future course of our work together and it will tell us what kind of a country you want Britain to be."

Links with Labour

"Pathfinders of British politics"

Mr Ashdown then made a bid to keep on-side those party members fearful of maintaining increasingly close links with Labour.

He told them: "For decades we have circled the walls of Jericho, blowing the trumpets of reform. Now, at last, the walls are coming down.

"If we keep our nerve, if we stay focused on the future, if we stay players on the field, not spectators from the sidelines, then we shall be at the centre of one of the greatest periods of reform our nation has ever seen."

But Mr Ashdown emphasised his support from Labour was in no way unconditional.

Freedom of information

Unless the government moved fast to implement a Freedom of Information Bill, relations between the two parties would be seriously undermined.

Lib Dems at the Cabinet Committee

"A full and undiluted Freedom of Information Bill could have been published by now. It should be published without delay. And it ought to be enacted in next year's session.

"Anything less will not just damage our work in the Cabinet Committee, it will also fatally undermine public confidence in Labour's commitment to open government."

"So the events of the next few weeks will determine the future of our project, with Labour to give Britain a modern constitution."

Powerful citizens

Mr Ashdown then turned on delegates who on Wednesday rejected the leadership backed policy of setting up Neighbourhood Schools Trusts to run schools instead of local authorities.

He said: "We will have nothing to say as liberals if we allow ourselves to become, like the others, mere instruments for holding the centres of power we have, instead of using these for handing on power to those we serve.

"A Britain of powerful citizens and strong communities"

"We will have nothing to say as liberals if, when we have the chance to show we trust the people to do things for themselves, we conclude that they cannot be trusted."

Mr Ashdown also set his "liberal agenda to pave the way for a liberal century" based around the themes of "the powerful citizen, living in a strong community, supported by an enabling government, prospering in an independent world".

Europe

On Europe, he urged Labour to "grasp the nettle" and commit itself to joining the single currency.

"Britain must get its act together over Europe"

"Without British involvement in the euro, we will matter less and less in Europe.

"This government will be forced by events to act on Europe, to commit themselves to entering the euro, and to hold a referendum sooner than they think, probably before the next election."

Making devolution a success

On devolution he said: "Here's the choice for Scotland next May Alex Salmond and the Scottish separatists who want the Scottish Parliament to fail, the Labour Party who want to run the Scottish Parliament from London, the Tory Party who wanted the Scottish Parliament never to exist in the first place, or the Liberal Democrats who have been fighting for a Scottish Parliament for over 100 years."

"Liberal Democrats face a moment of unique opportunity"

"We helped to make it happen. Now we want to make it a success."

He ended with a rallying cry to the party to hold fast in the weeks ahead, urging: