ISLE OF MAN BILL (Hansard, 6 February 1958)

§ LORD CHESHAM
My Lords, this Bill marks an important stage in the constitutional development of the Isle of Man. It is now over ninety years since the passage of the United Kingdom Statute which to this day largely governs the financial relationship of the United Kingdom and the Isle of Man. Under that Statute—the Isle of Man Customs. Harbours and Public Purposes Act, 1866—control over most expenditure in the Island and over customs duties and harbours rests ultimately with the British Government; and the small measure of control over surplus revenues given to Tynwald, the Island's Legislature, is subject to the veto of the Lieutenant Governor and the approval of the Treasury. Matters have not stood still during those ninety years. In the pre- 480 sent century, an ever increasing control over the insular revenues has devolved in practice upon Tynwald, and it is now very rare for the Lieutenant Governor or the Treasury to disagree with Tynwald's decisions. Apart from two Acts passed in 1887 and 1955, which gave Tynwald power to impose and alter customs duties subject to confirmation by Order in Council, the position established by the Act of 1866 has remained basically unchanged.
Further development cannot very well take place so long as this is so, for there is a limit to the extent to which what happens in practice can be allowed to diverge from what is prescribed by the law. Talks have been taking place for some time about what should take the place of the Act of 1866, and these discussions resulted last year in two agreements, which were laid before your Lordships last November. This Bill implements the main agreement. Its principal provision is the repeal of the Acts of 1866, 1887 and 1955. This removes the Treasury control over the Island's finances, and enables Tynwald to regulate its own finances and customs. The agreement provides for continuance of the existing arrangements whereby the customs of the Island are administered by the Commissioners of Customs and Excise. The Bill also enables Tynwald to regulate harbours and mines and quarries in the Island.
In conclusion I should like to emphasise that this is a Bill which affects only the formal and legislative arrangements for control over the finances, customs and harbours of the Isle of Man. It does not directly affect the way in which the Manx revenues are spent. For many years, control over the spending of the Island's revenues has rested de facto with the Isle of Man Government; and the long experience which the Island Government possesses of controlling its own expenditure is one reason why Her Majesty's Government feel that the time has now come to give de jure recognition to this position. I am sure that the House will wish to join me in welcoming this Bill and the reforms of which it is a part, and in giving it a Second Reading. I beg to move that the Bill be now read a second time.

§ VISCOUNT ALEXANDER OF HILLSBOROUGH
My Lords, we certainly should like to join the noble Lord in the welcome he has given to this short but important Bill. Perhaps your Lordships will excuse me if I take this occasion to tell a story against myself. It is an old Parliamentary story, which I like to remember. When I was in another place, the Opposition had occasion one night very late—or rather early in the morning—to take up the Government's time, and so I was put up to obstruct the usual annual Bill dealing with customs and excise in the Isle of Man. I made a quick and violent research in the Encyclopædia Britannica into the true form of the rights of Manx citizens. I came to another place and made what I felt was an excellent speech, on good authority—leaving out the points I did not like, of course. The then Financial Secretary of the Treasury, the late Mr. Ronald M'Neill, when he replied, said that he had enjoyed my speech very much, especially my quotations from the Encyclopædia Britannica on the Isle of Man, because he himself had written all that I had quoted. I was thoroughly torpedoed. I thought your Lordships might like to hear that story. I wish to welcome the Bill.

LORD REA
My Lords, I should like to join in welcoming the Bill from these Benches, and to thank the noble Lord for the clear and capable way he has presented it to your Lordships. I take it that he will be able to assure the House that the Bill does not establish any precedent for the Isle of Wight, the Isle of Malta or any other island.

§ LORD LATHAM
My Lords, I should like to ask the noble Lord, Lord Chesham, this question: who settles the bank rate in the Isle of Man?

§ LORD CHESHAM
My Lords, I am grateful to noble Lords who have spoken from the Front Benches opposite. Had I known earlier of the experience of the noble Viscount, Lord Alexander of Hillsborough, I should certainly have seen to it that the appropriate volume was temporarily removed from the Library. So far as the question posed by the noble Lord, Lord Latham, is concerned, I think it would be better to leave it to be dealt with in a few moments by my noble friend Lord Hailsham.

§ LORD LATHAM
Can the noble Lord say whether, under this Bill, any change in the authority for changing the bank rate is contemplated or intended?

§ LORD CHESHAM
As I said earlier, this Bill affects the internal revenues of the island which are to do with customs and excise, harbours, mines and quarries, and I do not think that the bank rate would come within its scope.

§ LORD LATHAM
Is it the case, then, that expenditure is not affected by this present Bill, or by the present Statutes? Because expenditure does comprehend the bank rate.

§ LORD CHESHAM
May I make myself quite clear? I thought I had already. This Bill confines itself to formalising the legislative aspect of the present method of controlling expenditure which is incurred by the Island. It is merely a measure to enable the Island to manage its own affairs without reference to us, instead of our having a final say in the matter. As I understand it, that is as far as the Bill goes, and I do not think the bank rate has very much bearing on it.