Before beginning Leaders' Questions, I again appeal to those who are either asking or answering a question to adhere to the rule, which is two minutes to ask a question and three minutes to reply, with a minute for a supplementary and a minute to reply. I do not want to have to constantly interrupt Members and they can please assist me by sticking to the time limits, or else change the rules of the House. I call Deputy Martin.

We learned this morning that the Government has agreed to legislate to facilitate banks in repossessing family homes. Yet, the 170,000 people in mortgage arrears and those whose homes are about to be repossessed will be still forced to pay the family home tax. The family home tax, or property tax, Bill was published yesterday and is being taken on Friday and rushed through the House, with a vote on Friday. The Thornhill report was published only on Thursday, although it had been with the Government since June. There will be no adequate time for discussion or debate, with very substantial powers going to Revenue in terms of entering homes, inspecting properties and so forth.

All of this is to ram through the House what is essentially a very unfair tax because absent from the tax and the legislation is a fundamental canon of any taxation law, which is the ability to pay. In society today, at this very moment, many people simply do not have the ability to pay this tax - we are talking about the unemployed, people on welfare payments, pensioners, people on family income supplement, the lowest paid workers and people on farm assist. They do not have the capacity to pay the level of property tax that is being put on them by this budget and by the Government.

We must remember that some 500,000 people are living in households where mortgages are in arrears. Yet, for some unknown reason, they are expected and asked to pay a significant family home tax, all in the context of a dead property market.

A question, please.

We are saying quite openly that now is the wrong time to put such a burden on people on whom the financial pressures are enormous. The situation has got much worse with regard to unemployment and so on. Does the Taoiseach agree the pressures now facing the categories of people I have outlined are such that they are not in a position to pay this tax that is being levied upon them?

The position in regard to the property tax has been outlined by the Minister for Finance in the budget. The property tax will apply for a half year for 2013 and for a full year from 2014. The valuations will be set in bands of €50,000 and the tax will be levied at 0.18%, with a 0.25% charge for those who have houses that are valued at more than €1 million and in respect of the element of the valuation over €1 million.

The structure has been set out by the Revenue Commissioners. The introduction of the Bill is to make way for that process to apply. The Minister has outlined the understanding of the difficulty that people have these days in the economic circumstances in which the country finds itself. Arrangements are made and allow for a deferral in certain circumstances for people who find themselves in a situation where they cannot afford to meet the level of the property tax.

As Deputy Martin is aware, the introduction of a property tax in this country is with the intention of broadening the tax base. A situation has applied for many years where, year after year, local authorities found an easy way of increasing rates on commercial premises, which has placed an inordinate strain upon them and, given the difficulties about the confidence in the indigenous economy, it is necessary that the tax base be broadened. The property tax will be used, and the majority of it applied and spent, in the local authority areas where it is raised for services for people. I expect local authorities will publish their schedules of work so people will understand the property tax they pay goes for services for themselves and their families in the areas in which they live.

It is true that many people are now in straitened economic circumstances. That is why the level of the property tax was pitched at 0.18%. The valuation in terms of the banding is fair and progressive and those who have more and who have houses with higher valuations-----

And higher mortgages.

-----will be able to contribute more. The deferral options are there for those who find themselves in particular circumstances.

It is being brought in on Friday to make arrangements for the passing of the Bill so the Revenue Commissioners can make arrangements that it apply from 1 July next year, with a full year in 2014 and thereafter.

In the past two years unemployment has gone up and mortgage arrears have gone up significantly while economic growth is down and the property market is dead. How can the Taoiseach or this House say to people who cannot pay their mortgage-----

Why is that?

It is their record.

If people cannot pay their mortgages, how can they pay a property tax on that house?

His party is the cause of it.

It defies any logic and goes against any concept of ability to pay. If somebody paid €25,000 or €30,000 in stamp duty in the past three, four or five years, they believe they have paid their property tax.

They caused that.

Order, please.

So does the Commission on Taxation, which advised they should be exempt for seven years from any property tax that was brought in.

Does the Deputy have a question?

More than €5 billion has been paid in stamp duty. How are we expecting unemployed people to pay this? The higher the value of some houses, the higher the mortgages. The issue is that, because of their financial circumstances, people are simply not in a position to pay.

Does the Deputy have a question?

We are facing the incredible scenario where somebody whose house could be repossessed in the coming year-----

I told the Deputy that five or six years ago.

-----will also be asked to pay a property tax.

The Deputy is over time.

There is no fairness in this tax. There is no attempt to allow for ability to pay or to provide for exemptions.

Deputy Martin and his party signed on for a property tax.

No, we did not.

Like St. Augustine, he wants to be made pure but not just yet. He cannot deny his record in this regard.

The Taoiseach should read his own party's manifesto.

Fianna Fáil signed on for a property tax. This Government is introducing what we consider a fair and progressive property tax.

Deputies, please.

Read the manifesto, where a property tax is described as "unfair".

Deputy Martin already had his say.

I note that the Fianna Fáil spokesman on finance said yesterday that the requirement of the troika to provide legal clarity to the procedural aspects of the 2009 legislation introduced by the previous Administration, which was adjudicated on by Ms Justice Elizabeth Dunne, would lead to a rash of house repossessions. That is untrue. The situation in so far as the mortgage market is concerned - and it has been so for very many years - is that banks lend on the basis that they will be repaid and where circumstances do not permit that to happen, repossessions have taken place.

Let us be very clear on this. It is the intention of the Government that clarity be provided to that aspect of the law which Ms Justice Dunne found insufficient or inadequate. There is no intention of having, as the Fianna Fáil spokesman said, a rash of house repossessions. The number of repossessions in this country has been exceptionally small and we intend to keep it that way.

We are over time.

House ownership is very important for people in this country and we respect and understand that. We want to keep that process whereby the level of repossessions will be exceptionally low.

The Government is putting the banks first and home owners second.

I am calling Deputy Gerry Adams.

It is very important that people know and understand that the house they live is in their home and that it will be kept in their possession.

I have told the Taoiseach that we are over time.

That is why the Personal Insolvency Bill is being introduced, to allow further options for people that will enable them to retain their family homes, which is so important for everybody in the country.

I ask the Taoiseach to recognise the Chair. I have called Deputy Gerry Adams.

Gabh mo leithscéal, a Cheann Comhairle.