The main points of likeness were: (1) That from the first there was to be a separate Irish Exchequer; (2) that for all time Ireland was to be denied control over the imposition of Customs and Excise—that is to say, over about three-quarters of her revenue as then raised; (3) that about a third of the cost of the Irish Police was to be paid by the Imperial Government; (4) that payments due from Ireland to the Imperial Government were to be made a first charge on proceeds of Imperial taxes in Ireland.
The principal points of difference were:
1. Under the Bill of 1886, apart from the very important restriction of Customs and Excise, Ireland was at once to have freedom to control her own taxation.
Under the Bill of 1893 (as amended) there was to be a suspensory period of six years during which all existing taxes were to continue to be imposed by the Imperial Government; but with power to Ireland to add taxes of her own. Amounts of Imperial taxes might be varied, but no new ones imposed, except specially for war. After six years, financial freedom, except in Customs and Excise. Excise, however, was to be collected, though not levied, by Ireland.
2. "Collected" and "True" Revenue.—In 1886, Ireland was credited with all the revenue collected in Ireland from Customs and Excise (i.e., the "gross" revenue from those taxes), but she had to pay the cost of collection herself.
In 1893 allowance was made for duties collected in Ireland on articles consumed in Great Britain, and vice versa, Ireland being credited only with her "true" revenue—that is, revenue from dutiable articles consumed in Ireland. Similar allowances made in the Income Tax account. A joint Anglo-Irish Committee was to settle these adjustments. This system involved a deduction from the first year's gross Irish revenue of nearly two millions. (In 1886 the corresponding sum, credited to Ireland, was £1,400,000.) On the other hand, in 1893 the greater part of the cost of collection (£235,000) was not to be borne by Ireland.
3. Imperial Contribution by Ireland.—In 1886, a fixed annual maximum, which might be diminished, but could not be exceeded, revisable in thirty years.
In 1893 (for six years) an annually ascertained quota—namely, a third of Ireland's "true" revenue (exclusive of taxes imposed by herself).
4. Ireland's Budget.—Note the important point that under both Bills three-quarters of Irish revenue was derived from Customs and Excise, over which, in 1886, Ireland could exercise no control; in 1903 only the control given by the presence of eighty members in the House of Commons. In both cases Ireland was to be wholly responsible for her own civil expenditure (except for the existing Police). Under both Bills Ireland was intended to start with a surplus of about half a million, which may be regarded roughly as the equivalent, in both cases, of the Imperial share of the cost of the Irish Police. But note that, in 1886, Ireland being pledged to pay a fixed million of the cost of Police, would obtain no relief until the cost was reduced below a million; while in 1893, paying two-thirds of the annually ascertained cost, she would obtain relief from any annual reduction. The Police referred to was, of course, the then existing Police, imperially organized and controlled. The new civil Police eventually set up in substitution would be financed and controlled by the Irish Government. The charges, therefore, on the British taxpayer would, it was expected, be a rapidly diminishing one.
The loss on Irish posts in 1893, debited against Ireland, was estimated at £52,000.