Michael Fitzpatrick (Kildare North, Fianna Fail)

I am glad to have the opportunity to say a few words on Dublin docklands development. The financial summary for 2008 of the Dublin Docklands Development Authority states:

The year 2008 was unprecedented for the authority, culminating in the reporting of an operating deficit, before impairment, of €27.1 million. Taken in conjunction with losses of €67.8 million arising from impairment of property assets and adjustments of a further €117.8 million as a result of the authority's joint venture in Becpay limited, the authority is reporting a deficit for the year of €212.9 million, the most significant in the history of its operations.

Earlier this year, the Minister for the Environment, Heritage and Local Government, Deputy John Gormley, took decisive action in appointing a new chairman of the authority, Professor Niamh Brennan, who has a recognised expertise in corporate governance matters. When she appeared before the Oireachtas committee she impressed us with her knowledge and dedication to the delivery of development in the Dublin docklands in a timely fashion. She was determined that the wrongs of the past would be left behind and that the authority would move forward in a positive way.

In 2007, the authority had a surplus of €3 million. The authority is facing significant financial challenges but under the new chairman, the authority is responding to these challenges urgently and aggressively by substantial reduction in staff numbers as fixed-term contracts expire, the constant monitoring and reduction in overhead costs and discretionary spending cuts. A reduced organisational structure has been put in place.

In terms of planning applications, there is a requirement that upon receipt, applications undergo initial assessment for completeness and potential non-compliance with the terms of planning schemes. Site notices must be displayed and registered applications notified to third parties by immediately logging on to the Dublin docklands website. A process for receiving and acknowledging valid third-party submissions has been implemented and there is also a requirement that the planner, when preparing his or her report for the board, take account of the application and any valid third-party submission.

The authority is confident these measures will show a significant narrowing of the operation deficit during the current year and the chairperson of the authority has indicated this process will continue into 2011 when it is predicted the authority will return to break even or better. The likelihood is that the DDDA will post a much lower operating loss for 2009 of about €10million, compared with 2008's losses of €27 million, and that the authority expects to break even by the end of 2010.

The authority's chair and acting CEO appeared before the Joint Oireachtas Committee on the Environment, Heritage and Local Government for three hours on 1 December to discuss the authority's 2008 annual reports and accounts. The chairperson of the authority told the Oireachtas committee that the board of the authority understands that restoring public confidence in the operations of the board is a critical priority.

With that in mind, and following a request from the Minister for Environment, Heritage and Local Government, the board has instituted two reports to examine both the financial operations and planning functions. The chairman expects both reports to be finalised shortly for review by the Minister and she will co-operate with whatever action the Minister decides to take on these matters. She went on to state: "I am aware that there has been repeated suggestions that the Comptroller and Auditor General should be given a role in reviewing the operation of the Authority". However, she is firmly of the view that the reports will achieve whatever the Comptroller and Auditor General might have been able to achieve.

The executive board is responding to the turmoil in the financial property market and has sought to restructure the authority's development activities for the foreseeable future. The key risks and uncertainties facing the authority include a prolonged downturn in the property market, a further decline in the sales of affordable housing and the continued deferral of major development projects. I wish the DDDA well. Professor Niamh Brennan and the board are committed to a successful programme of reform which will see the authority return to profit and continue the social and economic development of the docklands.

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