Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 45: To ask the Minister for the Environment, Heritage and Local Government if he has received the 2008 accounts for the Dublin Docklands Development Authority; if he will comment on the financial situation within the authority; and if he will make a statement on the matter. [43026/09]

John Gormley (Dublin South East, Green Party)
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The annual accounts of the Dublin Docklands Development Authority for 2008 have been finalised and arrangements will be made to have them laid before both Houses as soon as possible. The collapse in international financial and property markets in the past year has created serious challenges for the authority. The resulting impairment in the values of its property interests and delays in major projects, coupled with the slowdown in housing sales, had serious consequences for the authority's financial standing. Its accounts for 2008 reflect the very significant financial challenges it faced and show a loss on operations last year of €27 million. The authority has taken a prudent view on the valuation of its key assets, all of which have been written down. The accounts show a red book valuation of the Irish Glass Bottle site of €50 million.

The authority is taking steps to address its difficult financial position. All discretionary expenditure on projects and programmes has been cut. Every cost and overhead is being subjected to rigorous control and scrutiny. In addition, the authority has put in place a reduced organisational structure that will focus on its critical functions and responsibilities and allow it to continue to achieve its core objectives.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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This is one of the greatest scandals we have seen for a long time. The Minister has been in office for two and a half years. He refused my request to bring this matter within the remit of the Comptroller and Auditor General, the appropriate authority to examine what has gone on in the organisation. Until today we relied on media reports to discover what was happening. Will the Government bail out the Dublin Docklands Development Authority, arising from the information provided for the House which shows a €27 million operating loss and a €50 million write-down value on one site? Is greater oversight of the organisation necessary? Does the Minister plan to wind it down and subsume it into Dublin City Council or the Department of the Environment, Heritage and Local Government? What will be the ultimate cost to the taxpayer of the lack of proper Government practices and the irresponsible deals done in the Dublin docklands area in recent years?

John Gormley (Dublin South East, Green Party)
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No one has had to rely on media reports. Any questions put to me have been answered, including those on the Irish Glass Bottle site, the major issue.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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It was dragged out of the Minister.

John Gormley (Dublin South East, Green Party)
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I have said there has been a reduction in value of 85%. The authority's accounts are audited by an independent external auditor, KPMG. Under existing legislation, the authority is specifically excluded from being audited by the Comptroller and Auditor General, as are many State and semi-State commercial bodies.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister can change that.

John Gormley (Dublin South East, Green Party)
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Under existing arrangements, it is open to the Joint Committee on the Environment, Heritage and Local Government to have the authority appear before it and thus afford the Oireachtas an opportunity to question it. At the request of Deputy Hogan, the committee asked the authority to appear before it next week. There will be ample opportunity for the Deputy to question it at that point.

I have taken decisive action in appointing a new chairman of the authority who has recognised expertise in corporate governance matters. I believe Deputy Hogan agrees with me on this. I have asked the new chairman for a report on corporate governance in the authority. I will keep the need for future involvement by the Comptroller and Auditor General under review. As pointed out by the Deputy, this would require legislative change.

New procedures have been introduced by the new chairman. There is a new process for carrying out and recording meetings prior to applications being made for a section 25 certificate. There is also 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. There is a series of measures in place.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Dublin Docklands Development Authority was set up to achieve a noble objective, namely, the regeneration of part of the city badly in need of it. However, it was hijacked by greedy bankers and developers, without oversight or adherence to corporate governance procedures. Is the Minister saying the people concerned will get away scot-free? Will there be no investigation by the Minister into the manner in which they carried out their duties? Will he not publish legislation to include this issue as part of the remit of the Comptroller and Auditor General? Will the stonewalling by the organisation in recent years continue under the Minister?

John Gormley (Dublin South East, Green Party)
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I am saying the opposite - no stone will be left unturned. The new chairman is an extremely competent individual and has expertise in corporate governance. She is going through everything with a fine-tooth comb and has asked outsiders to provide objective analysis. Two reports are pending, one on finance and the other on planning.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Will the Minister publish them?

John Gormley (Dublin South East, Green Party)
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Of course.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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That is a change.

John Gormley (Dublin South East, Green Party)
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The idea is to have as much openness and transparency as possible to ensure the Dublin Docklands Development Authority which the Deputy acknowledges has done good work in regeneration of the area can continue to do this work but in a way that is open, transparent, competent and efficient. That is my aim and it is shared by most Members of the House.