ABSTRACT
The Thatcher government took office with the welcome backing of private industry, and the 1979 Conservative manifesto had pointedly stated that 'Profits are the foundation of a free enterprise economy. The conflict between the Thatcher government and the CBI demonstrated the changing nature of the economy as much as Mrs Margaret Thatcher's policital monetarism demonstrated the changing nature of contemporary Conservatism. The Conservatives inherited a wretched situation in relation to Britain's nationalised industry jungle following the long-term decline of nationalised industries fossilised by subsidy into perpetual inefficient loss-makers. The conference even voted two to one against a resolution urging the government to 'adopt an exchange-rate policy that will encourage manufacturing industry'. Conservatives have always been wary about industrial strategies, partly because they are associated with Labour governments and centralised state planning. The old Department of Industry propping up lame ducks should become a new Department of Science and technology, geared to assisting the private sector in infant stages of development.
