Common Purse Agreement - Common Duties Agreement

Common Duties Agreement

There were various agreements dating back to the 17th century. In 1911 the Isle of Man Constitution Committee (the MacDonnell Inquiry) described the Common Purse agreement in these terms:

the public services of the Island are financed from Customs Duties collected by officers of the Imperial Customs between 20% to 21% per goods item. Where the Manx duties differ from those of the United Kingdom—in practice, where they are lower—they are levied in the Island and the actual proceeds are credited to the Manx Exchequer. Where they are identical, and where, in consequence, goods may be moved freely between the two countries without Customs restrictions, an arrangement called a 'Common Purse' exists, whereby the Island receives in respect of such duties the same amount per capita as Great Britain does, plus an addition, calculated according to a formula which allows for the number of persons temporarily visiting the Island and the larger quantity of dutiable commodities which it is calculated they consume. —MacDonnell Inquiry, c.6. s.38.

In summary, the combined Customs revenue was first divided proportional to population. In addition to this, the Island's government received a sum per visitor. It appears that this additional allowance was significant:

depend very largely on the Customs Duties derived from articles consumed by visitors to the Island. —MacDonnell Inquiry, c.6 s.53.

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