[From 1911 MacDonnell Inquiry]



I sign the above Report subject to one or two additional suggestions, and to a
short statement as to why I take a view somewhat different from that of my colleagues
as to the financial relations of the Island to the Imperial Government, and its
necessities at the present time. My first addition would be to paragraph 30 at the
bottom of page 9, as follows :-

While concurring with this suggestion of a Finance Committee, I desire to say
that I think the Lieutenant-Governor would do well to associate with him in the
preparation of the yearly Budget two members of the House of Keys. Such
consultation with two members of the Elected Chamber, chosen presumably for their
influence and knowledge of its views, would, in my judgment, facilitate the financial
provision for the year, and be a real though informal step towards further self-

My second and third additions arise, in connection with the claim of Tynwald for
assistance from the Imperial Government under the three heads of Accumulated Surplus
Revenues, Mainx Crown Revenues, and the annual contribution now standing at 10,0001.
As regards the first of these, I agree with my colleagues that no claim to a definite
sum of money arising out ol. the relations of the Island with the Imperial Govermuent,
prior to 1866, can be maintained. At the same time it is clear to me that the
Island was not treated as generously, nor its resources developed as fully, as was
contemplated in the Act of 1767 ; mainly, no doubt, for reasons connected with
Imperial finance, which are not far to seek when the history of the period
is remembered. Accordingly I consider the proper way of looking at this chapter
of the Island's history to be that which regards it as giving the Island an indefinite
but appreciable claim to generous treatment from the Exchequer when its necessities
demand. Secondly, as regards the claim arising out of the Crown Revenues, I
consider this incapable of complete and decisive ascertainment. The Crown Revenues
in the Isle of Man seem to me to have an official character which differentiates them
from that of a private ownership of an estate and gives the community a greater
claim to receive benefit from them than my colleagues admit. On the other hand,
they are not so exclusively official in character as to allow of the argument being
put forward that their net revenue should be spent in relief of the Island's expendi-
ture. These revenues although bought by the Crown from the Dupes of Atholl at
a later date and by a separate transaction from the purchase of their sovereignty
over Man cannot, in my judgment, be wholly disconnected from shat. The public
and private aspects of Crown property were blended inextricably in England till
the reign of William III. and are norclearly separated in the history of this property.
I would therefore cut the Gordian knot by recommending that a sum of 1,0001. a
year should be paid from these revenues to the Island administration as a contribution
towards the salary of the lieutenant-Governor who represents the Crown and
may be taken. to discharge some of those duties of Kingship which were Historically
attached to the possession of Crown revenues.

As regards the third head, the contribution of 10,000l., I agree with my colleagues
that Tynwald has not made out a case for the simple absorption of it or any part of it
into the Manx revenue as a matter of course, but I am unable to go to the other
extreme and consider it as a sum which, under all circumstances and in every year,
must be spent by the Exchequer without reference to the Island. Tho history of this
contribution is fill of diffieulty, arul is not susceptible of eomplete explanation. If
the Island were independent, as the great Colonies are independent, it would be
difficult to defend this annual eontribntion. If, on the other hand, the Isle of Man
were a Crown. Colony, or ware absorbed in England, this contribution to Imperial
expenses might well be considered inadequate. Either extreme view leads to an
endless series of unconvincing arguments, all(] the conclusion to which I am forced
is that the 10,000l. is a suitable contribution only in ordinary- times, and when not
essential for the development of the island, the true view of it being to consider it as
surplus revenue after the proper administration of the Island has been met, and
when the times are not ordinary I think this is the fund from which needed
assistance might he expected to come.

What my colleagues have said both about the needs of the Island for further
expenditure and for development in educational, economic and social matters I agree
with, and I agree also with the statement in the Report that our recommendations, if
carried out, would set free considerable. suns for such purposes. I cannot, however,
quite concur with them that these sums would be adequate. The Clerk of the Rolls
has calculated that it will require from 20,000l. to 30,0001. additionally per annum to
bring the Island abreast of the United Kingdom. If 10,000l. of this could be
raised by increased taxation and 5,000l. by the removal of the present embargo
on budgetting up to the level of the year's revenue, that leaves 5,0001. a year
short of his Honour's lower estimate. Not much of this is, in my opinion, to be
obtained by the investment of part of the 60,000l. which we consider is available from
the Accummulated Fund. Most of that should in my opinion go in capital expenditure
on education, which would not directly produce income. Accordingly, there
would be a large deficit, particularly until the redemption of debt in eight years' time
set free another 5,0001. a year.

I therefore venture to recommend that it would be desirable for the eight next
years before the Island Revenue so rises to place a sum of 5,0001. a year at the disposal
of the Island Administration. The needful concurrence of the Lieutenant-Governor
in the decision of Tynwald would in practice make this expenditure conditional
on the development of the Island being pursued wisely and wholeheartedly, and on
the Island being willing to increase its own taxation.

But looking at the needs of the Island, at its resources, which in some aspects are
stagnant, and at the grave state of affairs which must arise if the condition of workers
and educational advantages are markedly inferior in the Island to that which they are
in England I thialt this assistance is essential if the hopes and wishes mentioned in
the Report are to be realised, and Tynwald will be well advised in not ceasing to
press for such assistance under existing conditions.

It should surely be remembered that England has no interest in the Island
greater than that of securing that those who come from Man to Great Britain are as
well equipped for life as if trained on the mainland, and that those who go from
Britain to Man find themselves at no disadvantage in any important particular of



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