Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 792: To ask the Minister for the Environment, Heritage and Local Government the financial consequences for the Dublin Docklands Authority in respect of his agreement to extend the financial guarantee arising from the purchase of the Irish Bottle Glass site which he approved in March 2009; and if he will make a statement on the matter. [15341/10]

John Gormley (Dublin South East, Green Party)
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Under Section 30 of the Dublin Docklands Development Act 1997 (as amended) and subject to the approval of the Minister for the Environment, Heritage and Local Government, given with the consent of the Minister for Finance, the Authority may borrow money up to its statutory limit for current or capital purposes.

As indicated in the reply to Question No. 409 of 2 March 2010, the Authority received sanction from the Minister for the Environment, Heritage and Local Government in October 2006 to borrow up to the statutory limit of €127 million for the purposes of property acquisition, primarily in connection with the impending acquisition of the Irish Glass Bottle site. This sanction was granted with the consent of the Minister for Finance. I understand that, as part of the IGB acquisition, the Authority provided to the funding banks a two-year bank guarantee to the value of €26m in respect of certain possible defaults. In March 2009, a new guarantee for €29.1m was signed by the DDDA, the increase from the original €26m reflecting additional monies borrowed in the interim to fund remediation works. It is my understanding that the Board made the commercial decision to sign the new guarantee on the basis that it was operating within its overall sanction to borrow up to its statutory limit of €127m.