Clause 22. — (Irish residuary share of reserved taxes.)

Postponed Clauses. – in the House of Commons on 29th October 1920.

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(1) There shall in respect of each year be charged on and paid out of the Consolidated Fund of the United Kingdom to the Exchequers of Southern Ireland and Northern Ireland a sum equal to the Irish share of reserved taxes in that year after deducting—

  1. (a) the amount of the Irish contribution towards Imperial liabilities and expenditure; and
  2. (b) whilst any services remain reserved services, the net cost to the Exchequer of the United Kingdom during the year of the services so remaining reserved services.

(2) The sum so payable to those exchequers, in this Act referred to as the Irish residuary share of reserved taxes, shall be apportioned between them in such manner and shall be paid at such times, in such manner, and according to such regulations, as the Joint Exchequer Board may direct.

(3) In determining the apportionment as between the Exchequers of Southern and Northern Ireland of the Irish residuary share of reserved taxes, the Joint Exchequer Board shall act on the following principles:—

  1. (a) So far as the amount of the said share depends on the proceeds of any tax, they shall determine what parts of the proceeds are properly attributable to Southern and Northern Ireland respectively, and shall allot the amount so determined accordingly:
  2. (b) So far as the amount of the said share depends on the amount of the Irish contribution towards Imperial liabilities and expenditure they shall allot to Southern Ireland and Northern Ireland their respective shares in that contribution determined in manner hereinbefore provided:
  3. (c) So far as the amount of the said share depends on the cost of any service, they shall, where the cost of the service in Southern and Northern Ireland, respectively, can be ascertained, allot to Southern and Northern Ireland the cost of the 2148 service in Southern and Northern Ireland respectively; and where the cost of the service in Southern and Northern Ireland cannot be so ascertained, they shall divide the cost between them in proportion to population.

(4) The Joint Exchequer Board shall apportion any sum which under this Act is to be made good by deductions from the Irish residuary share of reserved taxes on the like principles.

Amendments made: At the end of Subsection (2), insert the words and those regulations may provide for payments being made to the exchequers of Southern Ireland and Northern Ireland, respectively, on account of the sums which may ultimately be found to be payable to those exchequers in respect of the Irish residuary share of reserved taxes.

In Sub-section (3, c), leave out the words "be so ascertained" and insert instead thereof the words "in their opinion be ascertained with sufficient accuracy."—[Sir L. Worthington-Evans.]

Question proposed, "That the Clause, as amended, stand part of the Bill."

Photo of Mr David Reid Mr David Reid , Down East

On a point of Order. I have an Amendment down to this Clause.

Photo of Mr James Lowther Mr James Lowther , Penrith and Cockermouth

I understood that the hon. Member's Amendment was not to be moved, and therefore did not call upon him.

Photo of Mr David Reid Mr David Reid , Down East

I had proposed to move, in Sub-section (3, c), after the word "the" ["Ireland the cost of the service"], to insert the words "reasonable and necessary.

Photo of Mr James Lowther Mr James Lowther , Penrith and Cockermouth

I must apologise. It is my fault. I cannot now go back to it. Will the hon. Gentleman raise the point on the Question "That the Clause, as amended, stand part of the Bill," and he may get a statement from the Government as to some action being taken on Report.

Photo of Mr David Reid Mr David Reid , Down East

The Amendment I had intended to move was designed to put some limit to the cost of the services in Southern and Northern Ireland respectively. There is an absolute direction to the Exchequer Board to apportion the money in accordance with the cost of the service, whether that cost is extravagant or otherwise. There should be some check upon it. I suggest that it should be limited to "reasonable and necessary cost." I do not know whether the right hon. Gentle- man in charge of the Bill can undertake to make any concession. Under the Bill it is quite open to either the Southern or the 'Northern Parliament to carry on any service in the most extravagant way possible. I am afraid it is not an unknown thing in any part of Ireland for a man to like to find a job for a friend, and if he knows that the more relations he gets into the service the larger will be the share of the reserved taxes that will come from this country the more likely is it that the service would he carried on in an extravagant way. That might almost lead to a competition in extravagance.

Photo of Mr Worthington Evans Mr Worthington Evans , Colchester

The point, I thought, was already covered by the drafting of the Bill. I did not think it was possible that by reason of extravagance of one or the other Parliament it would be possible for either to get a larger share of the reserve revenue allotted to it. But after what my hon. Friend has said I will certainly look into the matter. I do not wish to be misunderstood. I cannot give an undertaking to alter the wording on Report, but I will undertake to look into it carefully, and if there is real substance in what the hon. Member says I will do my best to meet the point.

Question, "That the Clause, as amended, stand part of the Bill," put, and agreed to.