Sir, - Dr Garret Fitzgerald stated (March 13th) that the child benefit increase in 1982 was one of the biggest financial boosts ever given in respect of children.
As a parent of seven children, I ask if Dr Fitzgerald lives in the real world. He is at great pains to explain what we received but forgets to tell us what support was withdrawn.
Between 1940 and 1974, the tax allowance for a dependent child averaged 60 per cent of an adult's allowance. This was progressively reduced between 1974 and 1986, when it was abolished. This happened during the offices of five different governments.
Average combined child benefit and tax relief was, in monetary terms, £45.40 (1954), £108.60 (1974) and £180.60 (1987) after Dr Fitzgerald's budget. However, when one considers varying purchasing power of money over the years, we find that in terms of 1987 money values, the annual support for each child was £453 (1954), £484 (1974) and only £181 in 1987 after the budget of which Dr Fitzgerald is so proud.
Increases were granted in successive budgets to unemployed parents with dependent children, existing under difficult financial constraints. As a result unemployed parents with children found that they could not afford to take up a job because of loss of allowances for their children if returning to work.
Family income supplement was introduced to assist a family on PAYE. Tax is taken from an earner's salary on Friday and he has to collect FIS support on Monday as his pay packet is insufficient to support his family because our taxation system does not acknowledge the existence of dependent children.
Mr Fitzgerald had the opportunity to restore justice to PAYE families. He failed to do so. - Yours, etc.,
Eugene Long, Dundrum, Dublin 16.