Kieran O'Donnell (Limerick East, Fine Gael)

I propose to share time with Deputy Terence Flanagan.

I support what Deputy Hogan proposes. This is a reasonable and practical Bill and I commend him on it. What is required is for the Comptroller and Auditor General to audit the Dublin Docklands Development Authority and examine the purchase of the Irish Glass Bottle site. The scale of the figures involved is amazing. That is why Deputy Hogan feels so strongly that the Comptroller and Auditor General should be appointed.

The financial statement of the Dublin Docklands Development Authority refers to net assets on the balance sheet going from €177 million in 2007 to €26 million in 2008. The consolidated balance sheet has gone from €177 billion in 2007 to a negative €48.5 million 2008. The original legislation provides that if the Dublin Docklands Development Authority cannot repay its debt it reverts to the central Exchequer. That is the key factor. We seek to protect the public purse. It is alarming that this site was bought in October 2006, when there were signals of major problems with the property market.

At the time the chairman of the authority, Mr. Lar Bradshaw, was on the board of Anglo Irish Bank and Mr. Seán FitzPatrick was on the board of the Dublin Docklands Development Authority while he was chairman of the board of Anglo Irish Bank. Some €296 million was given to Becbay Limited, a joint venture company, by Anglo Irish Bank. Over the same period, according to page 63 of the accounts, some €43 million was loaned from the Dublin Docklands Development Authority to Becbay Limited as an interest-free loan to part fund the development of the Irish Glass Bottle site. On what was the €43 million spent? Did the taxpayer get value for money and did the Dublin Docklands Development Authority get value for money?

Examining the 2008 accounts, some €118 million of the €213 million loss incurred by the business was contributed by Becbay Limited. The share of the operating loss of the joint venture was €74.8 million. The full loan of €43.04 million was written off. Page 42 of the accounts refers to an auditor report by KPMG. It is not qualified but lays an emphasis on a matter in respect of a growing concern and refers to note 1. This deals with Becbay's ability to continue to trade. The consolidated balance sheet is minus €48 million. The company alone is plus €26 million. It is critical that the Comptroller and Auditor General undertake a proper, independent investigation on behalf of the taxpayer, without detracting from the work of KPMG.

Professor Niamh Brennan has taken steps to consider corporate governance. Already €118 million of taxpayers' money has gone down the tubes in this investment in Becbay and the Irish Glass Bottle Company site. There is a contingent liability in the accounts of a guarantee of €29 million plus 26% of the interest incurred by Becbay. In 2008 we lost €118 million and may lose another €29 million plus interest. The Comptroller and Auditor General must investigate this loss.

I am surprised that the Minister for the Environment, Heritage and Local Government last night did not accept the merit of Deputy Hogan's proposals which are very clear-cut and would look after the taxpayers' interests. We want the DDDA to function as it was intended it should but there are many unanswered questions about the common membership of the boards of Anglo Irish Bank and the DDDA. Why was €43 million given to Becbay? What was the money used for? It has been fully written off so it was of no value. There is an emphasis on material in the accounts which is based on worry about the DDDA as a going concern and the implications for Becbay. It is critical that to protect the taxpayer the Government support this Bill which is concise, direct and in the interests of the taxpayer. Anything less would be completely unacceptable.

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