,000.

It is anticipated that in a period of ten or fifteen years the charges
under the existing Land Purchase Acts will increase by L450,000, and
under the National Insurance Act by L300,000. On the other hand, it is
estimated that within twenty years the cost of Old Age Pensions will
decrease by L200,000.

_Charges upon the Irish Exchequer._

The Bill provides for the establishment of an Irish Exchequer and an
Irish Consolidated Fund.

From the Irish Exchequer will be defrayed the whole of the present and
future cost of Irish government, with the exception of the expenditure
on certain services, termed in the Bill Reserved Services.

_Charges upon the Imperial Exchequer._

The Imperial Government will retain the control, and the Imperial
Exchequer will continue to bear the cost, of the Reserved Services,
namely, Old Age Pensions, National Insurance, Labour Exchanges, Land
Purchase, and Collection of Taxes. For a period of six years the Royal
Irish Constabulary will also be one of the Reserved Services.

There are provisions for the transfer to the Irish Government of
certain of the Reserved Services under the conditions stated below.

_Revenue of the Irish Exchequer._

The Bill provides, in the first instance, for the period during which
the yield of Irish taxes is less than the cost of Irish administration,
and contemplates certain modifications after a financial equilibrium
has been attained.

During that period the revenue of the Irish Exchequer will consist of a
sum transferred annually from the Imperial Exchequer, and termed in the
Bill the Transferred Sum, together with the receipts of the Irish Post
Office.

The Transferred Sum will be fixed at the outset at such amount as will
cover, with the addition of the Post Office revenue, the present
expenditure on Irish Government, with the exception of the cost of the
Reserved Services. Included in the Transferred Sum will also be a
specified sum as surplus. The amount of this surplus will be L500,000
annually for a period of three years, then diminishing by L50,000 a
year for six years till it reaches L200,000, at which sum it will
remain.

Subject to this variation in the amount of the surplus and to certain
minor variations specified in the Bill, and subject also to any changes
consequent upon the exercise by the Irish Parliament of the powers of
increasing or reducing taxation which are defined below, the amount of
the Transferred Sum, fixed