merrion street

Mr. Phil Hogan, T.D., Minister for the Environment, Community and Local Government today (31 May 2012) announced that the Government has decided that the Dublin Docklands Development Authority (DDDA) is to be wound up, taking account of its precarious financial outlook as well as the findings of the C&AG’s special report. However, it is envisaged that the Authority would remain in place for a transitional period of a maximum of 18 months, under a new Board (see Appendix) chaired by the Dublin City Manager, Mr. John Tierney.  This transitional period will allow the Authority to progress elements of ongoing work and to make the necessary preparations for the migration to new arrangements to be decided by the Government. To safeguard the future of the area, and to build on the good work it carried out in the past, the branding of the Dublin Docklands will continue along with the planning, managing and marketing of the area in order to maximise its development potential. A focus on the continuation of the regeneration programme and attracting investment and job creation will be key priorities for the new Board.

The Government’s decision has been made following consideration of a special report on the DDDA prepared by the Comptroller and Auditor General (C&AG), together with the DDDA’s Annual Report and Financial Statements for 2011, both of which were also published today.

“I welcome the preparation of the Special Report by the C&AG. The report published today includes some damning findings, particularly in relation to the Authority’s assessment and decision making processes surrounding its decision in 2006 to become involved in the purchase of the former Irish Glass Bottle site.  The failure of the Authority to obtain its own independent valuation of the site prior to deciding on the bid to be made is particularly serious, as is the fact that ultimately some €52m of the Authority’s resources have been lost arising from its involvement in the project”.  The Minister also highlighted that the findings of this report follow on from previous corporate governance reports published in 2010 which found serious weaknesses across aspects of the Authority’s planning functions, and an absence of value for money considerations in the Authority’s work, issues which the current Board has been working hard to address in the intervening 2 years.

Making today’s announcement, the Minister commented; “The Government remains fully committed to the continued regeneration of Dublin Docklands.  It is an ambitious and visionary project which, as Minister, I intend to continue to support actively.  Taking account of the reports which have been published today, a standalone DDDA is no longer considered to be a viable vehicle, financially or otherwise, for this purpose in the medium to longer term.   Therefore, in the short term (a maximum of 18  months), the Authority will continue to operate relatively unchanged, focusing on managing some important ongoing business that needs to be progressed to completion; in parallel with that, the Government will finalise the appropriate arrangements for ensuring a continued, concerted focus on the Docklands regeneration initiative”.  Key objectives for the future, the Minister indicated, would centre on –

·         maintaining and enhancing the Docklands brand and international marketability as an attractive and prime location for investment and high-value development;

·         providing for an appropriate set of “fast-track” planning procedures,

·         continuing to involve the local community and the business sector in the regeneration project, and,.

·         Facilitating job creation.

The DDDA’s 2011 Report highlights an operating surplus before impairment of just over €2 million, with a net surplus of €1.1 million: this represents a slightly improved financial position on 2010, when a deficit of €1.98 million was recorded.  However, the Authority’s financial position will remain highly challenging in the short to medium term.  This is clear from the Special Report which the C&AG decided to prepare as part of the assumption of responsibility for auditing the DDDA’s accounts.

Apart from drawing particular attention to the challenging financial position of the Authority, the Special Report also refers to previously identified historical issues in relation to the administration of the Authority’s planning function and examines the DDDA’s decision-making processes surrounding its involvement in the Becbay Joint Venture to purchase the former Irish Glass Bottle site in 2006.  The Minister is asking the new Chair and Board to consider these findings and the significant reforms already made by the outgoing Board, and to identify if any additional actions are needed to further strengthen the Authority’s procedures.

In further comment, the Minister also highlighted some of the positive conclusions from the C&AG’s analysis.  “It’s important to recognise that the Report also acknowledges the many reforms that have been introduced following the internal governance reviews carried out by the DDDA and I note that the Authority’s current practices are robust and represent good practice.  This is in large part attributable to the corporate governance expertise of the outgoing Chair, Professor Niamh Brennan, who is to be highly commended for the very significant contribution which she has made over the past three years.  I want to thank Professor Brennan and the other members of the outgoing Executive Board for their tireless work in steering the Authority through its most challenging times.”

The decision to wind up the DDDA builds on previous announcements by the Minister to rationalise the number of State agencies under his remit, which have now been reduced by almost half from 21 in 2011 to just 11.

Copies of the DDDA’s 2011 Annual Report and Financial Statements and the C&AG’s Special Report can be accessed and downloaded on their respective websites:

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