Tax Cuts And The Economy

Sir, - Charlie McCreevy is of course right to point out that in Fianna Fail's Election Manifesto its 4 per cent per annum target…

Sir, - Charlie McCreevy is of course right to point out that in Fianna Fail's Election Manifesto its 4 per cent per annum target was spelt out as relating to net current spending including debt servicing, and I should have been aware of that fact.

This qualification was, however, absent from its "Action Programme for the Millennium", where the Fianna Fail target is specifically compared with the Partnership 2000 target of growth in supply service spending - excluding debt servicing. I allowed myself to be confused by this confusion. Mea culpa!

The fact remains that the inclusion of debt servicing in the formula leaves room for an increase in supply service spending nearer to 5 per cent than 4 per cent in current money terms - and I think that is a good thing.

Finally, I am more than happy to await Mr McCreevy's budgets to see whether or not he departs from his party's tax proposals sufficiently to ensure that they do not, after all, skew the benefits of growth against the less well-off. If his budgets are as good as his television election commentary, we shall have nothing to complain about! I wish him the best of luck. - Yours, etc.,

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GARRET FITZGERALD,

Rathmines,

Dublin 6.