The fact that you itemized a replacement "finger" at a cost of 9 pounds tells me that it was indeed a broken clutch release lever that caused your failure. It's an important link in the mechanism that allows you to disengage the clutch by pressing the pedal; without it, the clutch can't be disengaged. This is a common problem and a fairly simple fix. And yes, someone likely could finesse the revs to get the car moving with a failed clutch release lever, but this tells me that you didn't have catastrophic failure of the clutch. And no, I don't think the recovery guy did any further damage to your car by doing this. If you want to see a picture of the clutch release lever, go to
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and follow the links in the parts catalog (Volkswagen/Golf/Clutch) to find "Lever, Clutch Release".
Having said that, I wouldn't be too hard on your mechanic, although it always helps to let him know you're watching. Although a clutch should go longer than 65K km (depending on your driving habits), he perhaps probably felt that the transaxle/clutch needed some R&R and figured that a complete clutch job was not unreasonable. If you could get a look at the old clutch components you could get a clue. Your shifting problems may have been a combination of improperly adjusted clutch cable, low gear oil, worn clutch, worn shift mechanism, etc. The work required to install the new clutch would allow the mechanic to address some or all of these issues. A "clutch kit" typically includes a pressure plate assembly, clutch disc, release bearing, release plate, and release plate spring. I think 108 pounds is reasonable for parts cost. Five hours labor also sounds reasonable to me.
Just curious: did the mechanic have the flywheel resurfaced and replace some of the hard to access oil seals (engine rear main, transaxle main shaft, clutch pushrod) while the transaxle was out of the car? It is common to do this work at the same time that the clutch is replaced. If these particular seals develop a significant leak, it can trash your new clutch. There are other oil seals on the transaxle that are prone to failure also (drive flange seals especially) so it is always a good idea to replace them too, especially if you think you were losing gear oil.
Let me throw in a disclaimer while I'm at it. I'm not a mechanic (although I am a professional engineer, for what it's worth) and my experience working on VWs is limited exclusively to my U.S. model 1987 VW GTI 8V. It's been hard-won experience and I consider myself fairly knowledgeable of the workings of my particular model VW. Having said that, I know VW made changes to the clutch/transaxle mechanisms between 1987 and 1996 depending on the model. There may also be some differences between U.S. and UK cars; I'm just not completely sure. Hopefully someone with more intimate experience with your particular model Golf will be able to backup or refute my observations.
Good luck with this,