CONSTRUCTIVISM.
It was found by the Financial Relations Commission that Ireland contributed a revenue in excess of her relative capacity. Mr. Childers, in his draft report, suggested that practical steps might possibly be taken to give Ireland relief or afford her equitable compensation in three different ways—[78]
(1) By so altering the general fiscal policy of the United Kingdom as to make the incidence of taxation fall more lightly on Ireland. It was suggested that the taxation upon tea, tobacco, and spirits, which weigh more heavily on Ireland in proportion to her relative capacity, because of the habits of the people, and the larger proportion in Ireland of the poorer classes, might be reduced and a part of the burden transferred to other commodities. It was, however, felt, he said, that this would open up questions of such magnitude—like Free Trade and the incidence of taxation as between different classes—that it would be inexpedient to urge it, when the object in view was the solution of a pressing difficulty with regard to Ireland taken apart from the rest of the United Kingdom. But that difficulty will be removed under Tariff Reform—one-sided Free Trade is no longer a sacrosanct fetish—and the case of Ireland must be taken not as apart from, but as part of, the United Kingdom. Irish interests, Agricultural and Industrial, can be far better promoted, furthered, and secured under a scientific tariff system than under the so-called free trade system, which insists on the fallacy that identity of imposts means equality of burden, and concentrates its pressure on the great Irish industries of brewing, distillery, and tobacco manufacturing; a system which taxes heavily tea—the great article of consumption—and has brought peculiar disaster on agriculture. Therefore, the remedy which Mr. Childers thought impracticable in 1896 will become eminently practicable with a Tariff Reform Ministry in power.
(2) The second suggestion then made was that there should be a policy of distinct customs and excise for Ireland as apart from Great Britain. This would involve a customs barrier between the two islands. The inconvenience of such a course would be immeasurable and disastrous under modern conditions. It would certainly come sooner or later under Home Rule, but it would be a reversal of the policy of the Union.
(3) The third method which most strongly recommended itself to Mr. Childers was to give compensation to Ireland by making an allocation of revenue in her favour, to be employed in promoting the material prosperity and social welfare of the country.
This is the course which has been pursued by Unionist statesmen, and finds practical expression in their Constructive policy. The results cannot be better proved than by the fact that within the six years from 1904, during which the statistics of Irish Export and Import trade have been kept, her commerce has increased in money value by more than twenty-seven millions. At least four-fifths of that great increase represents a corresponding increase in British trade with Ireland.
Mr. Childers wrote in 1896—
"Apart from the claim of Ireland to special and distinct consideration under the provisions of the Act of Union, and upon the ground that she has for many years been, and now is, contributing towards the public revenue a share much in excess of her relative taxable capacity; I think that Great Britain as a manufacturing and trading country would in the course of time be amply repaid by the increase of prosperity and purchasing power in Ireland for any additional burdens which this annual grant to Ireland might involve. Looked at simply as a matter of good policy, it would be that often advocated with regard to Crown Colonies of Imperial expenditure with a view to the development of a backward portion of the Imperial estate. Ireland is so much nearer to and more exclusively the customer of the trading and manufacturing districts of Great Britain than any Colony, that this argument in her case should have redoubled weight. It is at least probable that, if in place of the fitful method of casual loans and grants hitherto pursued, there was a steady, persevering, and well-directed application of public money by way of free annual grant towards increasing the productive power of Ireland, the true revenue derived from that country might in time be no longer in excess of its relative taxable capacity."[79]
The wisdom of this Liberal Chancellor of the Exchequer makes a strange contrast with the folly of the Radical Chief Secretary, who tells England to "cut the loss" at the moment of Ireland's rapid progress because Irish Old Age Pensions have exceeded in number the reckless anticipation of the Right Hon. Mr. Lloyd George.