It is good to see the Minister, Deputy Rabbitte, in the Chamber today rather than pirouetting on the plinth or giving a press conference. Yesterday, Deputy Martin raised the issue of how property tax reductions will be applied across the country. It now seems that many councils will not be in a position to pass on reductions because of a cut in their grants under the Central Government Fund. When the Taoiseach dismissed these reports yesterday, he advised Deputy Martin not to be "proceeding on the basis of a gospel belief in what he reads in the newspapers". I understand the Irish Independent was not the only source of this story. It seems that a document was prepared for a meeting of the famous Economic Management Council. We understand that the meeting in question did not proceed because there is no agreement between the Labour Party and Fine Gael on the issue. Fine Gael wants councils to take in as much property tax as possible. It seems that the more tax the councils take in, the greater the reduction in the central Government grant Fine Gael wants to provide for. It appears that the Labour Party does not agree with this position. The Tánaiste said this morning that he is very concerned by reports of plans to claw back the proceeds of the property tax from the delivery of local services in certain areas. He suggested that if these situations were to develop, it would be a "fundamental breach" of the political understanding that was reached at the time the property tax was agreed to. He said he would be "strongly opposed" to such a development. That is what the Tánaiste, who is on his way out the door as leader of the Labour Party, had to say this morning.

He is in opposition now.

It appears that Fine Gael wants to cut the central Government grant and prevent councils from cutting the local property tax. It seems that the Labour Party wants the opposite. We will not have much of an opportunity to discuss the issue in this House, unfortunately, given that councils have to decide on it before the end of September. What is the Minister's personal belief? He joined his Labour Party colleagues yesterday and supported the rebels' stance on allowing for a tax reduction of up to 15%. Can he clarify what exactly the Government policy is at present?

I thank Deputy Calleary for his kind remarks. I always realised that I had bipartisan support in this House.

The Minister does not have the support of some people on his side of the House.

Regardless of Deputy Calleary's morning time reading, the position on the local property tax has not changed. The situation is as announced, in terms of the 80:20 divide and the variability clause that allows individual authorities to make their own decisions. I happened to be in the House when my colleagues on the Labour Party benched raised this as a Topical Issue. They stated no more than the obvious, and no more than the position as it stands. That continues to be the position. If there are any changes in it, they have not come to the Government.

I accept the Minister's word that the position is as he has outlined, but the difficulty is that when the Taoiseach was challenged yesterday to state explicitly that this is the position, he declined to do so. According to a report in this morning's Irish Independent, a document that was prepared for the Economic Management Council suggests that councils in a number of local authority areas, including Dublin city, south Dublin, Kildare, Wicklow, Louth, Meath, Galway city, Kerry, Clare, Cork city and Cork county, would have been in a position to reduce the property tax but are now not in a position to do so because of the projected decrease in the central Government grant. People in those areas are going to lose out because of a squabble between the current Labour Party and Fine Gael.

That is speculation.

It is speculation at Economic Management Council level. Deputy Stagg might be better off if he could control his own rebels.

Fianna Fáil has a few rebels of its own.

Can the Minister give the House a guarantee that councils which want to reduce the rate of property tax in their areas by 15% will be in a position to do so? If their property tax collections are higher than anticipated, they should not be penalised by the Government implementing a massive reduction in their central Government grant.

Deputy Calleary's difficulty is his propensity to believe gossip, speculation and mischief-making.

The Minister has traded in those things for fair money as well.

The fact of the matter is that there is no change in the 80:20 division.

It changed last year.

The arrangements in the solidarity fund, which we put in place and fully support as a Government, continue to obtain. The story about the Economic Management Council is completely misleading. A meeting of the council did not take place purely because the personnel comprising the council were not able to attend the meeting. There is no squabble in the Government about this issue.

The Tánaiste is not too sure about that.

The purpose of the local property tax is to broaden the tax base in this country and to give local authorities an element of autonomy and sovereignty they did not have heretofore. This was supported by Deputy Calleary's party at the time. If Deputies from any particular local authority are asserting their understanding of that policy, that does not constitute a squabble. There is no squabble. The position is as I have stated it to be. The Minister for the Environment, Community and Local Government is required-----

He is leaving too.

-----to give guidelines to local authorities by September-----

He will be gone by then.

-----so that they are clear about their remit.

What about the Tánaiste?

The question of how the variability clause that has been built into the law should be operated will be a matter for the councillors of the future.