Tom Hayes (Tipperary South, Fine Gael)
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Question 68: To ask the Minister for the Environment, Heritage and Local Government his views on the fact that the Dublin Docklands Development Authority has not paid interest on loans connected to its interest in a company (details supplied); if he has satisfied himself that the Dublin Docklands Development Authority has a sustainable financial position; and if he will make a statement on the matter. [37500/10]

John Gormley (Dublin South East, Green Party)
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All interest accruing on the Becbay loans for which the Dublin Docklands Development Authority was liable was fully paid up to the end of 2008. According to the Authority's 2009 Annual Report and Accounts, the Authority's liability arising from its participation in the Becbay joint venture company at the end of 2009 comprised a principal guarantee of €29.1 million on its 26% share of the loans and €4.8m interest accrued on its share of the loans for 2009, leaving a total liability of some €34 million. Interest continues to accrue at a rate of some €4.8m per annum until such time as the loan is discharged. The Becbay loans have now transferred to the National Assets Management Agency and I understand that NAMA is considering detailed business plans submitted by all Becbay parties in relation to resolution of its outstanding debts.

In relation to the Authority's financial position, while the Authority posted an operating deficit for 2009, it has taken a broad range of measures to re-examine and prioritise all expenditure within the organisation. For example, staffing in the Authority has been reduced from 55 in January 2009 to 27 currently, which has led to a significant reduction in the payroll bill. Moreover, the number of social regeneration projects has been reduced and the Authority is focusing on managing existing programmes and projects to maintain momentum and progress made in these areas.

As with many other companies with significant property portfolios, the future operating performance of the Authority will be affected by the broader economic, financial and business conditions, many of which are beyond the control of the Authority. The Authority is in ongoing discussion with my Department and the Department of Finance in relation to plans to restore its finances to a more robust position.