What do they show? In the first place, they fully bear out the forecast of the Financial Relations Commission that the position of Ireland under the Act of Union would become steadily worse. We have probably not yet reached the bottom of the hill. Ireland is so poor that each new Act for the relief of poverty increases the disproportion between the expenditure of Great Britain and Ireland. There is no way out of that vicious circle. If England were to increase Irish taxation she would simply increase the poverty which she has to relieve. During the last fifty years, in fact, the British Government has had to give back in some form of relief an equivalent for almost every increase of taxation enforced upon Ireland. If Ireland cannot pay, England must pay. That means that unless Home Rule is given during the next twenty years Ireland will become an increasingly heavy charge upon Great Britain.
In face of these facts, it is clear that Great Britain will be wise to "cut the loss." Considerable scorn has been thrown on the suggestion made by Professor Kettle and others that Great Britain should present Ireland with a dowry of £20,000,000 on the occasion of setting up a Home Rule Parliament. Mr. Kettle called it a "wedding present," to which Mr. F.E. Smith retaliated with some humour that it was really a "separation allowance." Mr. Kettle has since replied with even better humour that as Home Rule is the only true marriage between the nations his description is the more correct. This is all a pretty play of wit, but we must not allow it to conceal from us the fact that if John Bull deals generously with Ireland at this present moment he will be playing the part, not merely of a philanthropist, but of a good business man.
There are many ways in which this generosity can be shown. A big capital sum of money would probably be bad both for England and for Ireland. It would give Ireland a sense of dependence, and it would leave England with a sense of injury. There are many other better ways of making this financial adjustment. The charge which has turned Ireland into a debtor to England, for instance, is the £2,500,000 drawn from the Imperial Exchequer for Irish Old-age Pensions. The men and women who are receiving those pensions are the veterans of the famine period, and England has a special obligation towards them.
The Home Rule Bill of 1912 provides that these old age pensions should be kept for the moment as an Imperial charge. That will be both a generous and humane provision.
Another proposal made by Irish financial reformers is that the Royal Irish Constabulary, a force which costs £1,370,000 a year, should be regarded and paid for as an Imperial force. The argument is that the Royal Irish Constabulary was created in the interests of the English garrison—was, in fact, an army of occupation, which, since the new settlement of the Irish land question, has become, in Mr. Kettle's witty phrase, an "army of no occupation."
That proposal is not adopted in the Home Rule Bill of 1912. The force is kept under the control of the British Government for six years, and it will then be handed over to Ireland. In the meantime, it will be paid for out of the money reserved from Irish revenue by the Imperial Government. We shall have to wait, therefore, for six years before the Irish Government is able to apply economy to what is perhaps the most expensive and most extravagant service in the whole administration of Ireland.
The general financial proposals of the 1912 Bill are as follows:—
The British Treasury takes the Irish revenue and divides it into three portions. The first is the postal revenue, which will be both collected and controlled by the Irish Government, as the Post Office will be handed over immediately. The second is the "transferred" revenue, amounting to £6,350,000, which is the estimated cost of the services delegated to the Irish Parliament, such as the Civil Service, the payment of judges, and so forth. This revenue will still be collected by the Imperial Government, but handed over to Ireland. The third portion will be the "reserved" revenue, consisting of the amount retained by the British Treasury for the services over which it will retain control. Those services will be as follows:—
| £ | |
| Old Age Pensions | 2,660,000 |
| National Insurance | 190,000 |
| Land Purchase | 616,000 |
| Constabulary (Royal Irish) | 1,380,000 |
| Collection of Revenue | 300,000 |
| 5,146,000 |
This leaves the profit and loss account for Great Britain as follows:—