NI Economic and Social Policies

Economic Ties with Britain

• The economy of Northern Ireland during the 1920s and 1930s was closely tied to that of Britain, a relationship that significantly shaped its development.
• The Government of Ireland Act 1920 provided limited economic independence to Northern Ireland, allowing it to set a few minor taxes, such as stamp duties.
• However, most revenues came from the Treasury in London under the principle of parity, meaning that Northern Ireland's taxation and services had to align with the rest of the United Kingdom.
• This connection was initially beneficial, as Northern Ireland was one of the poorer regions in the UK, and British funds helped support pensions and welfare programs at a comparable level to Britain.
• However, Northern Ireland was required to contribute to an Imperial Contribution, covering costs for services like defence.
• After these payments, little was left for domestic improvements such as housing, health, or education, and key economic decisions were still being made in London.
• This dependency on Britain meant that when the Wall Street Crash of 1929 and the subsequent Great Depression hit, Northern Ireland suffered significantly.
• The Depression caused a severe drop in global trade, leading to widespread unemployment and poverty. Northern Ireland was particularly hard-hit due to its reliance on international markets.

Agriculture

• Agriculture was a critical sector in Northern Ireland's economy, particularly in the 1920s when nearly 26% of the workforce, or approximately 150,000 people, were employed in farming.
• The region's agriculture was similar to that of the Irish Free State, with small family-run farms dominating the landscape. Most of these farms were less than 30 acres in size, making them even smaller on average than those in the south.
• By the 1920s, many farmers owned their land, thanks to the Land Purchase Acts passed between 1870 and 1909 allowed tenants to buy their farms.
• In the years following the establishment of Northern Ireland, agriculture was overseen by Edward Archdale, the first Minister for Agriculture from 1921 to 1933, and later by Basil Brooke.
• Both were landowners from County Fermanagh, and their policies closely mirrored those of the Irish Free State.
• The focus was on improving agricultural education and standards to enhance production quality.
• Legislation like the Livestock Breeding Act of 1922 and the Eggs Marketing Act of 1924 were introduced to boost livestock quality and agricultural exports, particularly to Britain.
• The economic downturn of the 1930s brought additional challenges to Northern Irish farmers, yet they managed to maintain relatively stable production levels.
• Efforts were made to improve farming techniques and standards, increasing output in sectors like cattle, dairy, and eggs.
• However, the ongoing economic difficulties and small scale of many farms limited the overall impact of these improvements.

Industry

• Northern Ireland's industry was primarily centred on shipbuilding, engineering, and the linen industry, which employed a significant portion of the workforce, especially women.
• The linen industry, concentrated in Derry and Belfast, contributed significantly to the economy, particularly during World War I when the demand for linen to produce uniforms, tents, and other military necessities surged.
• However, after the war, the industry faced challenges. The global economic downturn, changing fashion trends (which reduced the demand for linen), and increased competition from other fabrics like cotton led to a decline in the industry during the 1920s and 1930s.
• By 1924, the number of women employed in the linen mills had halved from 74,000 in 1920 to 55,000, and the price of linen dropped significantly as demand decreased.
• By 1930, the industry employed fewer workers, with those who remained facing reduced wages and worsening working conditions.
• This decline continued through the 1930s, contributing to economic hardship in Northern Ireland, particularly in urban areas like Belfast, where many of the mills were located.
  • On the other hand, shipbuilding remained a vital industry for Northern Ireland, especially in Belfast, where the famous Harland & Wolff shipyard was located.
  • Shipbuilding experienced a boom during and after World War I, but by the 1920s, the industry was struggling due to the post-war economic depression and reduced demand for new ships.

• Government intervention, including grants and loans, helped to keep the industry afloat during the interwar years.
• The shipyards managed to survive, but the workforce was significantly reduced, with employment dropping from 20,000 workers in 1920 to just 2,000 by 1934.
• The Northern Irish government, under Minister of Commerce John Milne Barbour, tried to stimulate industrial growth by offering tax relief and loans to businesses.
• In 1929, Barbour established the Ulster Industrial Development Association to attract new industries to the region, although with limited success.
• Efforts to diversify the industrial base included developing a new aircraft-building industry, though these efforts were largely unsuccessful by the outbreak of World War II.

Government Social Policy

• When the Northern Ireland Parliament was officially opened on 23 June 1921, James Craig, the first Prime Minister of Northern Ireland, declared that the government had a duty to focus on the welfare of the people, both in urban and rural areas.
• However, the effectiveness of Northern Ireland's social policies during the 1920s and 1930s has been debated, particularly in the context of persistent poverty and high unemployment, which were pervasive issues throughout the region.
• The interwar years were marked by significant social challenges, including housing shortages and poor living conditions, particularly in urban areas like Belfast.
• A survey of Belfast's working-class areas in 1939 revealed that 36% of the population lived in absolute poverty.
• Housing conditions were particularly dire, with overcrowding and inadequate sanitation contributing to poor health outcomes, including high rates of tuberculosis.
• Despite the severe need, housing construction in Northern Ireland was slow during the 1920s and 1930s.
• While some Housing Acts were passed between 1921 and 1939, local authorities built only 8,000 houses during this period, none in counties like Fermanagh.
• This lack of adequate housing exacerbated social tensions, particularly between the Protestant and Catholic communities.
• Unemployment was another significant issue, particularly during the Great Depression of the 1930s, severely impacting Northern Ireland's fragile economy.
• The government's welfare policies were limited, with unemployment benefits being meagre and insufficient to meet the basic needs of many families.
• The situation led to widespread discontent and even strikes, such as the Outdoor Relief Strike of 1932, where both Catholic and Protestant workers united to demand better welfare conditions. However, sectarian tensions quickly re-emerged, and the brief unity among workers did not last.

Overall, Northern Ireland's social policies during the interwar years did little to address the root causes of poverty and inequality, leaving many people, particularly in the Catholic community, feeling marginalised and neglected.

Revisiting Key Terms for Revision

• Government of Ireland Act 1920 - The British Parliament passed this act to partition Ireland into two separate entities, Northern Ireland and Southern Ireland, each with its own parliament. It was intended to address both Unionist and Nationalist demands but ultimately led to establishing Northern Ireland as a distinct political entity within the United Kingdom.
• Treasury in London - The British Treasury was responsible for the overall financial management of the United Kingdom, including Northern Ireland. Under the principle of parity, it controlled the allocation of funds and the setting of taxes for Northern Ireland, limiting the region's economic independence.
• Wall Street Crash of 1929 - The Wall Street Crash was a major stock market collapse in the United States that triggered the Great Depression, a worldwide economic downturn. Its effects were felt globally, including in Northern Ireland, where it led to increased unemployment and economic hardship.
• Great Depression - A severe worldwide economic depression that took place during the 1930s, the Great Depression had a profound impact on Northern Ireland, exacerbating existing economic struggles and contributing to widespread poverty and unemployment.
• Imperial Contribution - This was the financial obligation Northern Ireland had to pay to the British government, covering services such as defence and other central government functions. It was a significant drain on Northern Ireland's finances, limiting its ability to invest in local infrastructure and social services.
• Land Purchase Acts - A series of laws passed by the British government between 1870 and 1909, these acts allowed Irish tenant farmers to purchase the land they worked from their landlords, leading to the widespread ownership of small farms in both Northern and Southern Ireland.
• Edward Archdale - A Unionist politician and landowner from County Fermanagh, Archdale served as Northern Ireland's first Minister for Agriculture from 1921 to 1933. He focused on improving agricultural education and standards to boost the region's farming industry.
• Basil Brooke - A landowner from County Fermanagh and Unionist politician, Brooke succeeded Edward Archdale as Minister for Agriculture in 1933. He continued similar policies to his predecessor, promoting agricultural development in Northern Ireland.
• Linen Industry - Once a major industry in Northern Ireland, particularly in Belfast and Derry, the linen industry employed thousands of people, especially women. It declined significantly in the 1920s and 1930s due to changing fashion trends and global economic conditions.
• Harland & Wolff - A prominent shipyard located in Belfast, Harland & Wolff was one of the largest employers in Northern Ireland. The shipyard faced significant challenges during the interwar years but managed to survive with government support.
• John Milne Barbour - Serving as Northern Ireland's Minister of Commerce, Barbour was instrumental in efforts to stimulate industrial growth during the 1920s and 1930s. He provided grants, loans, and tax relief to businesses to diversify Northern Ireland's industrial base.
• Outdoor Relief Strike - A significant labour strike in 1932, where unemployed workers in Northern Ireland, both Catholic and Protestant, protested for better welfare conditions. Although it initially united the working class across sectarian lines, the unity was short-lived as sectarian tensions soon re-emerged.