(Summary of remarks by Professor Johnston SFTCD at a meeting of the Irish Association in the Grosvenor Rooms, Belfast, on 12th November 1956.)

Quoting Berkeley the speaker begin by asking "whether one whose end is to make his countrymen think, may not gain his end even if they should not think as he doth."

The Republic should see its present economic problems in their historical perspective and try to build a happier future by learning the lessons of past history.

At the moment we find a diminishing outlet for our chief agricultural products in the British market and an increasing difficulty in paying for necessary imports from Britain from which we buy about £25 million's worth more than we sell to her.

It is not that Britain deliberately excludes or restricts our agricultural exports. But since the 1930s the United Kingdom has devised an agricultural policy which guarantees the home farmer a higher price (and lower production costs) than anything open to us. Our exports of eggs and pig products have been largely frozen out, and our export of store cattle is threatened unless we can overtake the United Kingdom's T.B. eradication scheme.

In the reign of Charles II the export of live cattle to Britain was prohibited. This was the beginning of the commercial restrictions of the 18th century to which Ireland adjusted herself by developing a substantial dead meat trade for export. Nevertheless the restrictions did the Irish economy much harm.

In the 18th century (unlike Scotland) we suffered by being outside the British fiscal ring. In the 19th century we were very much inside the British fiscal ring but this was the century of Free Trade and laissez-faire and these were no special privileges for agriculture Irish or other.

In 1922 Ireland (26 counties) forced her way out of the ring but Ireland (six counties) stayed in.

In 1921 or 1922 two states were born in Ireland. In one case the umbilical cord was never cut. In the other it was - very much so. It was hoped down south that the uncut cord would become a rope to strangle the new northern state. In the end it proved a channel through which the Northern State derives much nourishment from the material organism, when it needs it most.

In Ireland (26 Counties) fiscal freedom was looked upon as a lifeline of economic salvation. As explained in recent articles in the Statist, fiscal freedom has become, in unskilful hands, a rope of economic self-strangulation. Our necessarily rapid industrialisation policy behind high tariffs has contributed to the anaemia from which our agriculture suffers.

But it is not the only cause. Britain's Agricultural policies, involving price differentials in favour of the home producer have also lessened our production and export capacity in agricultural products.

Looking back on the last three centuries one might say we were outside the British fiscal system when it would have paid us to be inside, we were inside it when it would have paid us to be outside, and we forced our way out just when, in a few years, Britain was about to adopt a policy which would. have paid our farmers very handsomely indeed!

However it is not practical politics for us to abandon fiscal freedom, and there is no use crying over the loss of what might have been our share of an annual subsidy to British agriculture of the order of £300m.

Britain is flirting with the idea of associating herself with a European Free Trade area, but is not prepared to sacrifice the privileged position of the national agriculture to it.

Recognising that there are strict limits to the possibility of economic development for a national market of 3 million people, and that the future of international commerce belongs, to the big Free Trade areas, USA, USSR etc, the question for Ireland (26 counties) is: 'Should we abandon industrial protectionism viz a viz Free Trade Europe in return for free access for all our agricultural exports to European markets? Could those of our new industries which are worth preserving survive the competition of European industrial production in the Irish market?'

In the 18th century Irish export trade was more to European and colonial markets than to Britain. Could history repeat itself?

It is conceivable that our native industrialists might compete in their home market with European. exporters, but it is inconceivable that they could compete with British industrial exporters under conditions of complete free trade.

In view of the relatively unprivileged position of our agricultural exports in the British market and their declining tendency it would be reasonable to maintain a maximum tariff of up to 25% against British industrial imports. Even that would be a considerable improvement, from a British point of view, and in return, we might fairly ask for some improvement in the position of our agricultural experts to the British market.

Summarising I suggest that Ireland (26 counties) should consider seriously associating herself with the European Free Trade Area, and having (unlike Britain) Free Trade in agricultural as well as industrial products with that area.

Viz a viz Great Britain, I mean the United Kingdom, we should be prepared to reduce our tariffs to a maximum of 25% in return for some improvement in our present agricultural position in the British market. The effect on our agriculture of British post-depression and post-war agricultural and price policies is discussed more fully in the article entitled 'The Agricultural Anaemia of the Irish Republic' which appeared in the Statist on October 13.

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Copyright Dr Roy Johnston 1999