Yesterday, we listened as the Fiscal Advisory Council stated that we must plough ahead with a further €2 billion of adjustments in this year's budget, on the basis that economic growth is uncertain and the national debt is alarmingly high. The idea of a further cut of €2 billion will strike terror into those who have already been ravaged by years of austerity.

With the national debt figure standing at €203 billion, it is the understatement of the century to say it is alarmingly high. It is very much the elephant in the room and until it is addressed, we will constantly be putting out budgetary fires.

We are now into budget season, with departmental meetings under way and groups publishing pre-budget submissions. The Taoiseach will dismiss many of those submissions as fantasy economics. Talking of fantasy economics, my attention is drawn to one of the commitments he gave in the lead-up to this year's local elections, namely, that Fine Gael councillors would reduce the property tax by 15%. Given what the Government has done with the Local Government Fund, is that commitment actually deliverable? There are three main streams of local authority funding. The first of these, the general purposes grant, has been reduced from €999 million six years ago to €275 million in 2014, notwithstanding the subvention of €490 million paid to Irish Water last year. The fund has been decimated. The next stream is commercial rates, and Fine Gael gave a pre-election commitment either to keep those rates static or reduce them.

Does the Deputy have a question?

The third funding stream is the property tax, which is essentially being used to replace the general purposes grant and is estimated to bring in €290 million in 2014. In a recent Sunday Business Post article, Michael Brennan outlined in graphic detail how only nine local authorities will have the capacity to fulfil the commitment to reduce the property tax by 15%.

The Deputy is way over time.

What analysis was done prior to the Taoiseach giving his commitment that Fine Gael councillors would reduce the tax by 15%, and will he publish that analysis? What measures will he now introduce to ensure the 15% reduction is at least possible? It seems to me that the only thing that can be done is to reverse the cut in the general purposes fund. Will the Taoiseach agree to do it?

I thank the Deputy for her questions. The Government published an agreed economic plan which set out specific targets to bring the deficit below 23% by 2015 and eliminate it by 2018. By balancing the books in 2018, we will no longer have to borrow to fund the day-to-day services provided by the State. This will make Ireland far more attractive for jobs and investment and keep our debt very much under control.

I welcome, as does the Minister for Finance, Deputy Michael Noonan, the input from the Fiscal Advisory Council, which was set up by the Government for a particular purpose. We agree that meeting the deficit target of under 3% next year is critical, and Government policy will reflect that. The Minister has pointed out on many occasions that this is the target and that an adjustment is required to reach it. We cannot say now what that adjustment will be because we have no final view of the national accounts until later in the year. It is too early to make a decision as to what the size of the adjustment will be. It is a lever to achieve the target that has been set out, but 90% of the adjustment has already been made.

The Government's fiscal adjustment plans are in line with the requirements of the new fiscal framework. I am advised by the Department of Finance that the Government is not going beyond the minimum requirements of that framework, and I understand the Department will specifically query the conclusion the Fiscal Advisory Council has reached. The rules of the EU fiscal compact treaty require Ireland to attain our medium-term objective of a structurally balanced budget by 2018. Under the treaty, the European Commission - not the Irish authorities, as suggested by the advisory council - sets out what it calls the calendar of convergence. Like other member states, Ireland is obliged to adhere to the EU fiscal rules, the objectives of which are to prevent a recurrence of the extreme crisis we experienced in recent years and ensure EU economies can grow and jobs can be created.

The commitment the Fine Gael Party gave prior to the local elections was that its elected members would not vote for an increase in commercial rates and would reduce the property tax where that was possible, with a clear indication given that it would not, however, be possible in all cases. The newly elected councils are getting down to preparing their budgets for 2015. The commitment the Deputy referred to was very specific, namely, no increase in commercial rates, the possibility of reducing property taxes where possible and a recognition that such reduction would not be possible in all cases.

The Taoiseach is saying that it is too early to say what the budgetary figures will be, but this did not stop him from making a promise which people took at face value. If one walked into a shop advertising a 15% reduction on all goods only to find there was just one small rail where that reduction applied, one would be a disappointed customer and probably would not return to the shop. This is the kind of thing that gives politics a bad name. The reality is that people heard the commitment given that Fine Gael councillors would deliver a 15% reduction in the property tax. In the autumn we will see local government pitched against national government, and the Taoiseach holds all the cards in that situation.

Does the Deputy have a question?

In the absence of reversing the cuts in the general purposes grant, there is no chance of a reduction of 15% in the property tax. The Taoiseach is not giving people at local government level the possibility of effecting that cut. I have asked the Taoiseach if he will reverse the cut in the general purposes grant. Will he also give an absolute assurance that 80% of property taxes collected will be retained in the areas in which they are collected?

I always value Deputy Murphy's contributions and I am struck by what she said about certain things giving politics a bad name. There are parties on her side of the Chamber which want there to be no property tax, no water charges and no commercial rates, while also demanding that services-----

Deputies must allow the Taoiseach to reply to the question.

Some of them are unsure as to whether they want them now or later. Some of the parties over there would say that this is not the time to introduce these charges, even though they were very much in favour of them in the past. I agree fully with the Deputy that this kind of politics gives everybody a bad name.

We were very clear with our members before the local elections that they would not be voting for an increase in commercial rates and would reduce property charges where that is possible, while setting out clearly that it would not be possible in all cases. The Deputy asked whether 80% of property tax revenues will be retained in the areas in which they are collected. The taxes gathered in different parts of the country are dependent on property valuations in those locations and there is a variation in that. We want to ensure that no local authority is in a worse position then it was before. I thank the Deputy for her comment about people on the other side of the House giving politics a bad name. I agree with that.

Imagine having to make a decision, Deputy Murphy. That would be difficult for her.

What way is the wind blowing, Deputy McGrath?

I ask Deputies to settle down or leave the Chamber. We are moving on to the Order of Business.