Of course, if Maggie had put funding into manufacturing, then the Implementation of new CNC machining techniques, and increased automation could have equaled out chinese labor costs.
As I said in an earlier post, it is not government's job to run industries - they are rubbish at it. If you are just talking about the government putting taxpayers' money into industries, the only reason to do that is if that cash injection will enable the company to go on to greater things and pay back that public investment and more! An example is the state's rescuing of Rolls Royce aero engines after they went bankrupt over developing the RB211 engine. That company has been a fantasic success ever since so that public money was well spent.
Putting public money into hopeless cases is just a wste of that money. An example was when Tony Benn sunk a load of our money into Upper Clyde Shipbuilders. UCS were an uncompetitive company that was going nowhere aginst more efficient foriegn competition and predictably they went under despite the cash injection taking that wodge of taxpayers' money with them. Benn had followed political dogma instead of good business sense, and we the taxpayer paid the price.
A car manufacturer or engineering business should be investing in its own CNC machines. If it isn't, that's an example of poor management in not ploughing money back into the business to keep it healthy. Government stepping in and buying those machines is not the answer.