Mr Phil Hogan, T.D., Minister for the Environment, Community and Local Government has 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.

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He said: "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."

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.

(CD/GK)