Sir, - I would like to correct Dr Garret FitzGerald's reference to a "myth" about the 1982 budget (Opinion, September 9th). The reason why the story about VAT on children's footwear still endures almost 20 years later is because it was fact and not a myth and I can prove it.
Dr FitzGerald impunged my integrity, in particular my concern about the unacceptably high level of unemployment at the time of the 1982 budget. He made two statements about me which were untrue.
He said: "Mr Loftus said little or nothing, giving no indication of dissatisfaction" (with the budget); and: "Indeed, before the vote on the budget the issue of VAT on clothing and footwear had not emerged as an issue".
I had plenty to say but Dr FitzGerald was not listening, and the new 18 per cent VAT "became an issue" immediately after John Bruton's budget speech.
After reading Jim Kemmy's article in the Sunday Independent in which he made demands I knew the Government could not meet as the price for his support for the Budget, I hand-delivered a letter to Dr FitzGerald's office on Monday, January 25th 1982, indicating that I would be supporting Wednesday's budget providing the injustice which was done to those who suffered from the increases in VAT which Mr FitzGerald had imposed in his emergency budget after he became Taoiseach was rectified and the taxation provisions were reasonably fair to the low-waged.
Immediately after John Bruton's budget speech, an economist in the Dail public Gallery told me that he estimated that 18,000 to 23,000 jobs would be lost as soon as the 18 per cent VAT became law. He then said, loud enough for other TDs to hear him: "Surely you of all people are not going to throw 20,000 Irish people out of their jobs". I replied: "I will not support the 18 per cent VAT".
Within minutes, Fergus O'Brien, the Chief Government Whip, pleaded with me to see the Taoiseach. I agreed without hesitation.
I told Dr FitzGerald what the economist had told me. I asked him if he could not put a small tax on foreign footwear and clothing and so protect what was left of two important Irish industries. He replied: "As an economist I am telling you there is no way the Government can take the 18 per cent VAT off footwear and clothing." I responded: "What about the loss of all these jobs?" He replied: "That is the price the people would have to pay because the economy is in such a bad way."
After my frustrating experience with Dr FitzGerald, George Birmingham TD invited me into a Fine Gael committee room where he pleaded with me to support the budget. I told him I could not agree to the killing off of two Irish industries. He called in Peter Barry. Jim Mitchell was with Mr Barry.
I told them that I was the last person in Ireland who wanted a general election. In the end I compromised and agreed to support the budget if Dr FitzGerald modified the 18 per cent VAT. Mr Barry asked me to wait in the committee room until he came back with Dr FitzGerald's response to my offer. Mr Barry did not come back. When the division bell rang I voted against the budget's first financial resolution, as I told Mr Barry I would do if Dr FitzGerald did not accept my offer.
Dr FitzGerald's reference to myths is incorrect. - Yours, etc.,
Sean Dublin Bay Loftus, Seafield Avenue, Clontarf, Dublin 3.