Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 35: To ask the Minister for the Environment, Heritage and Local Government if he is satisfied with the financial position of the Dublin Docklands Development Authority; if he has expressed concerns regarding investments made by the DDDA; and if he will make a statement on the matter. [10331/09]

John Gormley (Dublin South East, Green Party)
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The authority was established in 1997 with the general duty to secure the social, economic and physical regeneration of the Dublin docklands area. Since its establishment, it has engaged in extensive business transactions involving the purchase, management, development and sale of lands in the area. The authority is self-financing, operating on the profits of its business dealings, and does not receive Exchequer subvention. Any liabilities incurred by the authority in the course of its activities are expected to be met from its own resources.

Under section 30 of the Dublin Docklands Development Authority Act 1997, the authority may, with the consent of the Minister for the Environment, Heritage and Local Government, given with the consent of the Minister for Finance, borrow money and in this regard may incur liabilities not exceeding €127 million. Any moneys borrowed and any interest accruing thereon may be secured on the revenue, funds or property of the authority. The authority has stated that it is fully solvent and in a position to meet all its liabilities for many years to come. I expect the authority's 2008 accounts, which will be submitted to me before the end of June, to show that the authority continues to be self-financing.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister will be aware there has been substantial concern about the activities of the Dublin Docklands Development Authority for some time. These concerns include well known conflicts of interest, the deal done on the site of the former Irish Glass Bottle site and the fact that the authority could not or would not pay the interest on its loans in the second half of 2008, although it has since paid it. However, that a State body was not in a position to or did not wish to pay a portion of the interest due on a sizeable loan is certainly disquieting.

Has the Minister inquired into the matters raised with the Oireachtas Joint Committee on the Environment, Heritage and Local Government regarding the executive of the Dublin Docklands Development Authority and does he have concerns in respect of them?

John Gormley (Dublin South East, Green Party)
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The Deputy will be aware that a "Prime Time" programme was made on the Dublin Docklands Development Authority which referred to some of the issues he raised. I have appointed Mr. Gerry McCaughey, who has been described as a green entrepreneur, as the new chairperson to the authority . Mr. McCaughey understands the necessity of good regulation and I believe he will move the authority in the right direction and ensure that it operates to the highest standards. I have also appointed Ms Yvonne Farrell, an architect, to the board.

The authority made a significant and high profile joint venture investment in the acquisition of the Irish Glass Bottle site. I am very familiar with this site as I live close to it. The authority considered it necessary to become involved in the acquisition of this property because of its key location on the Poolbeg Peninsula and its significant development potential. It remains an important development asset and a long-term investment. The authority is satisfied that its interest in the property will, in due course, facilitate it in achieving its long-term objectives for the sustainable regeneration and development of the Poolbeg area and will bring substantial benefits in terms of high quality physical development and community gain.

The authority and its joint venture partners are in commercial negotiations with the relevant banks regarding the refinancing of the loan facility for the acquisition. This is in line with other commercial lending in current market conditions. Interest payments on the loan were suspended for a period but the authority has confirmed that all interest due to date has been paid. It has been informed that its joint venture partners are also fully up to date with their interest payments.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I am disappointed in the Minister's response because he did not indicate a sense of urgency in dealing with the problems that have arisen for the authority. Members were given assurances by the authority when it appeared before the Joint Committee on the Environment, Heritage and Local Government that the budgets for its education development and social regenerations programmes would be maintained. However, it appears that the committee was misled because I have evidence to suggest that cuts are being made to the programmes as we speak.

Was the new chairman of the authority, for whom I have the utmost respect, given terms of reference or ministerial instructions on addressing the problems that have emerged? Does the Department intend to commission an independent valuation of the site given that it cannot rely on the authority to carry out an independent valuation?

John Gormley (Dublin South East, Green Party)
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If the Deputy is familiar with the individual I have appointed, he will be aware of his rigour and his understanding of what is required of him. Mr. McCaughey has been fully briefed by my officials and the CEO of the authority, Mr. Moloney, on the potential for and difficulties with the site. I have no doubt that he will thoroughly investigate these matters and will come to his own conclusions. I understand he is at present considering legal and governance issues. These relatively complex issues will be addressed by Mr. McCaughey and the CEO of the authority.