DDDA Annual Report 2009 - Dublin Docklands … A… · · 2013-02-04The main priorities for the...

12 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009

Chairman’s StatementS

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13DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009

I have no doubt that the Authority will continue to

operate in a difficult and challenging environment

for some years to come. We remain committed

to our mission of facilitating the physical, social,

economic and cultural regeneration of the Dublin

Docklands Area on a sustainable basis. The

Executive Board and Executive are working on

a long term plan for the Authority to ensure that

the ultimate vision required to complete the

Docklands project is not lost in these recessionary

times. In the immediate term, we recognise that

the weakened economic environment in which we

are operating poses real challenges to how we can

best advance that mission in the months ahead.

I thank the Minister and his Department for their

support and valuable advice during the year.

Members of the Executive Board have put in an

extraordinary effort to bring the Authority back

on track, well beyond what would normally be

expected by non-executive board members with

busy careers outside the Authority. I thank them

for their hard work, energy and commitment. I

would also like to extend my gratitude to the

staff of the Authority who have borne the brunt of

decisions not of their making. In particular, I want

to acknowledge the contribution made by Gerry

Kelly who took over as Acting Chief Executive in

difficult circumstances in July 2009.

I look forward to continuing to work with local

community leaders, our Council, Executive

Board, staff and other stakeholders on our

important work in the months ahead.

Professor Niamh Brennan

Chairman

04

In the Annual Report and Accounts for 2008, I

described that year as “exceptionally difficult”

for the Dublin Docklands Development Authority.

While 2009 continued to be exceptionally difficult,

we made progress on a number of fronts.

In particular, good progress was made in

stabilising the day-to-day financial performance

of the Authority during the year. This meant

taking difficult decisions on an almost daily

basis as we cut operational expenditure

severely. However, I would like to apologise on

behalf of the Board for the fact that we have not

yet met our objective of operating at breakeven.

The Authority will redouble its efforts in the

future to achieve this challenging target.

The Authority also further enhanced its planning

processes such that we are confident that all

planning procedures are now fair, equitable, by-

the-book and carried out to the highest possible

standards.

Following a request by the Minister for

Environment, Heritage and Local Government,

the Executive Board commissioned a review of

Corporate Governance at the Authority. Two

professional firms were appointed to review

the structure and operation of the Authority’s

planning and finance functions.

Those reports were completed in late 2009

and early 2010, were submitted in February

2010 to the Minister for Environment, Heritage

and Local Government for consideration and

published by the Department in May 2010.

The recommendations contained in these

reports have, in the main, been or are being

implemented and will inform the work practices

of the Authority in the years ahead.

The opening of the beautiful Chimney Park in

June 2009 and the spectacular Samuel Beckett

Bridge designed by Santiago Calatrava in

December 2009 is testament to the fact that,

notwithstanding its mistakes, much good work

continues to be done by the Authority.

14

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05

While the Docklands project has experienced

difficulties recently, there has also been cause

for optimism. The opening of the Grand Canal

Theatre in March 2010 had been eagerly

anticipated by the Authority since a tender for

a cultural facility for the performing arts in the

Grand Canal Dock area was launched in 2003.

The opening of the Theatre follows the

completion of the Luas line in to Docklands

and the Samuel Beckett Bridge in 2009. Later in

2010, the Convention Centre at Spencer Dock

will open its doors with a capacity for up to 8,000

delegates. These developments will continue

to have a hugely positive effect on Docklands,

raising awareness of the positive impact of the

project on the city and beyond.

For the future, the Authority continues to be

guided by the Master Plan. However, delivery

dates will inevitably be pushed out given the

continued difficult financial climate.

As the Chairman has stated, 2009 was

another tough year for the Dublin Docklands

Development Authority.

The main priorities for the year under review were

to stabilise the Authority’s finances and to regain

the trust and credibility of our stakeholders.

Regarding the stabilisation of the Authority’s

finances, significant cutbacks were made in

operational costs in 2009. This necessitated

many difficult and painful decisions, however, a

lot of progress has been made in our efforts to

break even.

On the issue of trust and credibility, the Authority

took a number of steps during the year to

address weaknesses outlined in a High Court

case in 2008 in the execution of our planning

powers to make sure we operate to the highest

standards in this regard.


Acting Chief Executive’s Review/ continued

Income is predominantly composed of social

and affordable housing sales comprising 17.2

million of the total income of 20.6 million for

the year.

Given the financial challenges facing the

Authority, the Executive has implemented

stringent measures to reduce spend with

significant reductions in administration, project

and marketing spend. Due to the Government

moratorium on renewal of fixed term contracts,

the average number of staff was reduced from

55 in 2008 to 46 in 2009 resulting in significant

savings in the Authority’s overhead. The current

Authority staff, as of May 2010, numbers thirty.

Spend on area regeneration decreased

significantly from 27.6 million in 2008 to 5.8

million in 2009 and includes the completion of

Chimney Park ( 0.5 million) and excavation

works on the Royal Canal ( 0.5 million).

Operating and Financial Review

In 2008, the Executive Board adopted a prudent

approach to the estimation of values of all

property related impairments giving rise to the

most significant losses incurred by the Authority

in its history. During 2009, there was a further

decline in the property market, although not

as significant as the previous year, resulting in

impairment losses of 5.5 million and a further

5.1 million written off the revaluation reserve.

This gave rise to a deficit reported in the

consolidated income and expenditure account

of 18.6 million (2008: 212.9 million) inclusive

of (i) a loss on operations (before impairment

charges) of 7.4 million (2008: 27.1 million)

and (ii) impairment losses (on properties and

loans to Becbay), share of Becbay losses, and

interest of 11.2 million (2008: 185.8 million).

In the Authority’s own single entity Balance

Sheet, net assets reduced from 26.2 million

in 2008 to 4.1 million in 2009.

The continued deterioration in the property

market generated impairments of 9.1 million

in the value of investment property, 1.2

million in affordable housing stock (included in

current development assets), and 0.3 million

in the value of fixed development assets at 31

December 2009.

The Irish Glass Bottle site (owned by the Becbay

joint venture in which the Authority has a 26%

interest) was valued by Lisney at 50 million

as at 31 December 2009, as was reported in

2008. The share of the Becbay interest charge

which the Authority finances amounted to 4.4

million. The financing of this interest charge has

been written off in the income and expenditure

account. A further 0.4 million is included in

the consolidated accounts as a share of the

operating loss of Becbay.


05

Planning Control 2009

Planning Scheme Section 25s Section 25s Area Submitted Certified

Custom House Docks 2 4

North Lotts 16 10

Grand Canal Dock 6 8

Total 2009 24 22*

Total 2008 78 52

* Includes a number of Section 25s submitted in 2008

A total of 27 applications were considered by the

Authority in 2009 (five of which were submitted

in 2008). Five of the 27 were major applications,

10 were minor and 12 were for amendments to

previous certificates. In line with new planning

procedures, 10 third party submissions were

received relating to six of the applications.

During 2009, five applications were either

withdrawn, rejected or cancelled leaving 22

that were certified for exempted development.

Included in the certificates issued were an

extension to Jury’s Inn at Custom House Quay,

and a mixed-use development at the Point

Village incorporating apartments, local retail and

commercial units.

Poolbeg Planning Scheme

The preparation of the Draft Poolbeg Planning

Scheme and Environmental Impact Statement

continued during 2009. The statutory public

consultation period for the Plan took place

from 3rd February 2009 to 9th April 2009 at the

Authority offices and at locations in Ringsend

and Sandymount. Following the consultation

period, 111 submissions were received which

are under consideration.

The Executive Board has commissioned

Brady Shipman Martin to review the Scheme

specifically in regard to the procedure applied

in its preparation and the development concept

proposed. This report is due for submission to

the Authority in early July 2010.

Planning

In 2009, the Docklands Authority implemented

amendments to the Section 25 certification

process, following a review of procedures by

Grant Thornton in 2008 initiated on foot of

the adverse judgement by the High Court in

relation to its statutory planning powers. The

amendments included an additional level of

consultation with property owners, residents

and others with a property interest and, at the

same time, adherence to specific timelines to

retain the fast track nature of the Section 25

application process.

At the end of 2009, the Executive Board, at the

request of the Minister for the Environment,

Heritage & Local Government, commissioned

a number of reports regarding Corporate

Governance. Declan Brassil & Co., Planning

Consultants undertook a review of the Authority’s

planning structure and functions to include its

plan making and adjudicative functions and

the organisation, structure and procedures in

place to facilitate the carrying out of its statutory

powers, functions and duties.

The key recommendation of the report

highlighted the need to separate the property

and development functions of the Authority

from its planning and legal roles. All of the

Report’s recommendations are currently being

implemented and are reflected in revisions to

the Authority’s structures and functions.

Planning Management

In 2009, 24 applications for Section 25

Certificates were received down from 78 in

2008. Exempted development certificates were

issued for 22 of these applications.


Spencer Dock

Ireland’s first world-class, purpose-built

conference facility, the Convention Centre, Dublin,

developed by Spencer Dock Development

Company continued to take shape during 2009

and remains on course to open for business

in September 2010. In November 2009, the

Convention Centre announced that it had

confirmed over 200,000 international delegate

days with a forecast economic benefit of 62

million to the Irish economy.

The Point Village

Over 30,000m2 of retail and leisure space is

under development by Crosbie Property at the

Point Village which is due to be completed in

2011. The 850 space car park will open in June

2010 at the same time as the 252 bed Gibson

Hotel which is to be operated by Choice Hotels

Ireland.

Development in the Docklands Area

Despite the fact that it was another tough

year for the property sector, over 40,000m2 of

office space and 12,700m2 of retail space was

completed by third parties in the Docklands

area in 2009.

During the period under review, a number of

buildings were completed and made ready for

occupation including State Street Bank which is

now occupying 8,164m2 on Sir John Rogerson’s

Quay, the Liffey Trust which comprises 4,700m2

of enterprise units and numbers 2, 4 and 5

Grand Canal Square, consisting of 18,405m2 of

office space.

Grand Canal Theatre

Convention Centre, DublinIM

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Retail

In common with the retail sector across Dublin,

tenants at the chq building owned by the

Authority faced challenging times during the

year and unfortunately three of them – Kohl, the

Pink Room and Nue Blue Eriu ceased trading.

As with all its property and investment assets,

the Docklands Authority will continue to review

options for the chq building on an ongoing

basis. The opening of the Luas extension to

the Point Village in 2009 and the arrival of the

Convention Centre in 2010 are all expected to

have a positive impact on trade and lettings

at the chq building. Demand for event space

at chq remained buoyant, with over 40 events

being staged at the venue, including fashion

shows, product launches and exhibitions.

Café Java and II Valentino were joined at

Alanis’s Gallery Quay development by Asian

seafood restaurant, Crystal Boat, taking up a

2,000ft2 letting to accommodate 90 customers.

Next door to Crystal Boat, Grafton Barbers

commenced trading also during 2009. Across

Pearse Street, two units were let in Treasury

Holdings’ Altro Vetro building to Grand Canal

Barbers and the Art of Coffee.

Grand Canal Dock

Chartered Land completed the Grand Canal

Theatre which opened its doors in March 2010

and has deservedly won praise for its unique

design and top quality acoustics and auditorium.

The 2,111 seat theatre is flanked by three office

buildings, totalling over 36,500m2, each with

striking glass facades and sculptured shapes.

Two solicitors firms, Byrne Wallace and William

Fry will lease a combined total of over 25,000m2

in two of the buildings.

The Authority appointed contractors P. Fallon

Construction to complete the final section of the

Martha Schwarz designed Grand Canal Square

finishing the dramatic red carpet leading up to

the theatre building.

Irish Glass Bottle Site

One of the Authority’s joint venture partners in

Becbay Limited (Bernard McNamara/Donatex

Limited) which owns the Irish Glass Bottle

site, has initiated legal proceedings against

the Authority. The Authority believes it will

successfully defend this case.

Remediation works were completed on the

Irish Glass Bottle site at the end of 2008 and

no further work has since been commenced.

U2 Tower/Britain Quay

The Docklands Authority decided to continue

the suspension of negotiations for the

development of the U2 Tower with the provisional

preferred bidder, Geranger Limited, for a

further period of up to 12 months. Negotiations

were initially suspended in October 2008 in

light of the uncertainty in the property and

financial markets.

05


Transport and Infrastructure

2009 witnessed the completion of a number

of important infrastructural projects and solid

progress being made on others.

Samuel Beckett Bridge

The main structure of the new Samuel Beckett

Bridge arrived in Dublin Port by sea from

Rotterdam on 11 May 2009. The bridge was

then completed and opened in December 2009.

Designed by internationally acclaimed architect

Santiago Calatrava, this landmark structure

provides an important link between the north

and south quays and improved access to the

Convention Centre and the O2. The total cost of

the project was 59.5 million, which included

a major upgrade of the approach roads. The

project was funded by Dublin City Council, the

Department of the Environment, Heritage & Local

Government and the Docklands Authority.

At the same time as the opening of the Bridge,

the Liffey Ferry service was discontinued.

Over its two years of operation, the Liffey

Ferry carried over 250,000 passengers on this

important route across the river.

Residential Development

Some 96 residential units were completed by

third parties during the year within Planning

Scheme areas under Section 25 certification.

Reflecting the slowdown in residential

development, the level of planning applications

for new homes in the area tapered off in 2008.

However, the total completed in the Docklands

area since the inception of the Authority to the

end of 2009 exceeded 3,200 units with over

4,700 certified for development.

Section 25 Residential Developments

(excluding Dublin City Council permissions)

Residential Market Social/Units Affordable

Completed

2009 96 77 19

Completed

1997-2009 3,230 2,842 388

Certified

2009 14 11 3

Certified

1997-2009 4,786 3,972 814

The Liffey Trust building on Upper Sheriff

Street, near the O2, was completed in 2009 and

comprises 96 apartments, of which 19 are social

and affordable.

Funding from the Department of the

Environment, Heritage and Local Government

via Dublin City Council was made available for

draw-down to the Docklands Housing Trust for

the purchase of 21 social units at Castleforbes

Square in 2009. However, the developer,

Jarmar Limited, has gone into receivership and

the units are not fully complete. The Authority

is working with the receiver to secure these

units for allocation at the earliest opportunity. Luas through the Docklands



Bus

Works commenced in 2008 on the first phase of

the North Wall Quay Quality Bus Corridor from

Matt Talbot Bridge to New Wapping Street and

is currently under construction by Dublin City

Council. The design for the second phase from

New Wapping Street to the Point Roundabout

is nearing completion.

Other Infrastructure

Dublin City Council began construction of an

infrastructure tunnel to carry rising mains, a

water main, ESB ducts and district heating

ducts in 2009 which is to be fully finished in

early 2010.

In 2009, Dublin City Council proceeded with

a feasibility study and preliminary design to

build a flood defence barrier along the south

campshires from Butt Bridge to east of the

newly opened Samuel Beckett Bridge to

protect a large area of low lying land to the

south from flooding due to high river levels. The

Authority, as part landowner continues to act

as a steering group member and architectural

advisor. This project is ongoing and is due for

completion in 2011.

Luas crossing Spencer Dock Bridge

Luas to the Point Village

Work on the extension of the Luas Red Line (C1)

to Point Village was completed by the RPA with

the new link opening for passenger services

on 8 December 2009. The new track connects

Busáras with the 02 with a journey time of 6.5

minutes and also serves the IFSC, Spencer

Dock and the Point Village.

Spencer Dock Bridge

The Luas runs over the new Spencer Dock

Bridge built by Dublin City Council at the Royal

Canal which opened on Bloomsday, June 16th

2009. The Bridge was the recipient of an award

for Best Structural Design at the LEAF Awards

2009. The Award recognised Amanda Levete,

architects, for implementation of an innovative

structural design solution.

Interconnector Rail Link

The Interconnector which will connect the

existing Northern Rail Line to lines from

Heuston Station is to include a new station

in Docklands. Having commenced in 2008,

Iarnród Éireann continued the development

of designs for the interconnector including the

detail for the Docklands Station taking into

account track alignment, impact on the local

environment, open space and integration with

other forms of transport.

05


Designed by O’Donnell + Tuomey Architects,

the 9 million Centre, part-funded by the

Authority, houses a crèche, day-care facilities

for the elderly, a 150-seat theatre, a sports hall

and an all-weather soccer pitch.

At the end of 2009, Dublin City Council

announced plans for a 4.6km cycle route from

the Grand Canal at Rathmines Road Lower

to East Wall Road. An element of this route is

proposed to pass through the Docklands Area

along Grand Canal Quay, Grand Canal Square,

Forbes Street and along the Royal Canal at

Spencer Dock.

The hugely successful Dublin Bikes scheme was

launched across the city in September 2009 with

five bike stations serving the Docklands area at

Tara Street, Townsend Street, Pearse Street,

City Quay and Custom House Quay at the Sean

O’Casey Bridge. The Authority is proposing

that the extension of the scheme will see bike

stations at Grand Canal Square, Spencer Dock,

the Point Village and along the Liffey Quays.

Public Amenity

Chimney Park, an innovative children’s playground

in south Docklands, financed by the Authority, was

officially opened in June 2009 by John Gormley

TD, Minister for Environment, Heritage and Local

Government. Located at the base of the historic

red brick chimney which gives it its name, the 1.5

hectare (3.7 acre) park was designed by Snug &

Outdoor working closely with children, schools

and community representatives. The innovative

ideas generated have been integrated into the

park with creative features such a mirror wall; a

wobbly play platform; a water play feature; palm

trees and a blue lounging wall. Children from

City Quay National School also created a special

poem ‘Talking Chimney’ that has been engraved

into the seats.

The Sean O’Casey Community Centre which

opened in 2008 was the Building Category

winner at the Irish Concrete Society Awards in

2009 and was shortlisted for the 2009 RIBA’s

prestigious Lubetkin Prize for architecture.


Dublin Bikes Scheme


Community Development

Social and Affordable Housing

Since 1997, a total of 388 social and affordable

units have been completed within Section 25

planning scheme areas and 814 certified.

Recognising changing conditions in the

residential property market, the Authority

relaxed some of the restrictions attached to

affordable housing in the Docklands area for

people registered on Dublin City Council’s

affordable housing list. A series of open days

were held in May showcasing apartments

in developments including Longboat Quay,

Butler’s Court, Hanover Quay and Forbes

Quay. Sales of affordable housing units by the

Authority in 2009 reached 53 in total.

Hanover Quay

The O’Mahoney Pike designed Hanover Quay

development won the Royal Institute of the

Architects of Ireland (RIAI) Silver Medal for

Housing at the National Housing Conference in

Sligo in April. Presented every two years, the

Biennial Silver Medal is the RIAI’s premier housing

award, which recognises excellence of design in

housing. As a mixed-use development providing

a high-quality residential environment, Hanover

Quay is a model for integrated, high-density

urban regeneration, successfully combining retail

and commercial uses with 292 mixed-tenure

dwellings, including a significant number of

family-orientated, ground level, own-door units.

Social Regeneration

As part of its important social regeneration

remit, the Authority funds and manages a

series of initiatives and programmes designed

to create long-term sustainability of the

Docklands area from an economic, social and

educational perspective.

Over the past ten years, more than 160 million

has been invested by the Authority in community

facilities and infrastructure, education and

housing. The impact of these can be seen

in improvements in educational attainment,

employment and social cohesiveness across

communities north and south of the River.

Also visible is a growing self confidence and

involvement on the part of the local community

who have participated in the regeneration

project with great enthusiasm.

Although funding pressures will inevitably

cause certain programmes to be curtailed,

the Authority will continue to work with local

communities, particularly in the areas of

education, employment, young people, seniors,

lone parents and local businesses.

Hanover Quay Apartments

05


Community Development Project Initiative (CDPI)

The CDPI is a scheme in which grant aid is

provided by the Authority to a wide range of

qualifying community initiatives. Since the CDPI

was launched over 262 projects have been

funded to a total of more than 7 million.

Social Regeneration Conference

In January 2009, almost 200 delegates attended

the seventh annual Dublin Docklands Social

Regeneration Conference. Delegates consisted

of local community leaders and representatives of

State bodies together with business leaders from

the Docklands area. Issues discussed included:

education in Docklands; public consultation

(including creation of community and business

forums); and a report by Dr Alex Kalache,

New York Academy of Medicine, specialising

in Positive Ageing, on the proceedings of the

Docklands Seniors and Docklands Seniors

Providers workshops.

Community Participation

2009 saw the further development of relationships

and networks between businesses and other

stakeholders in the area with the objective

of maximising employment opportunities for

Docklanders, under the aegis of the Docklands

Employment Forum. The Forum comprises

representatives of local employment schemes in

the area, FÁS, the Department of Social & Family

Affairs, as well as local community leaders

and elected representatives. The body takes a

professional partnership approach to securing

sustainable employment for the Docklands

community and to providing the necessary

training to ensure local residents attain the skill-

sets necessary to secure employment.

The Docklands Business Forum also went from

strength to strength during the year. The group

consists of more than 150 businesses which

strive to work together with a view to maximising

economic, social, physical and environmental

impact through collective effort. Both forums

work closely together to achieve maximum

impact for the Docklands Community.

Docklands Festival of Football



Education

During 2009, the Authority facilitated the following programmes in schools in and around Docklands

that are all members of the Docklands School Principals’ Forum. This Forum provides a mechanism to

support and develop the education of young people in the area.

The Authority also organises extra-curricular programmes for children during the school holidays with a

particular focus on sport which has many proven benefits for juvenile development, specifically physical

conditioning, teamwork and leadership skills.

Educational Programmes 2009

Programme Participation

Schools Drama 15 schools

Docklands Photographic Initiative 13 schools/700 children

Third Level Scholarship 92 full-time/33 part-time

Circletime 14 schools (programme completed in June 2009)

Schools Attitude & Attendance 20 schools/80 children (programme completed in

June 2009)

Family Learning Through Football 28 children/28 parents

Schools Radio 5 schools (programme completed in June 2009)

Parents in Education 16 parents (programme completed in June 2009)

PE Healthy Eating/Sports Conditioning 7 schools

Psychological Assessments 19 schools/80 student assessments funded

French Classes 8 schools (programme completed in June 2009)

Talking Partners 19 teachers (programme completed in June 2009)

Schools Counselling 28 children (programme completed in June 2009)

Schools African IT Project 5 schools/10 children/5 teachers (programme

completed July 2009)

Extra-Curricular Programmes 2009

Young People’s Development Participation

Festival of Football 60 children

Mini-World Cup 60 children

Splash Week 83 children

05


annual Docklands Fun Run. The route took

participants around the Docklands, starting in

Grand Canal Square, through Ringsend, over

the East Link Bridge and past the 02. 11,000

was raised for the designated charity, Irish

Autism Action.

Arts and Culture

One of the most exhilarating cultural events

of the year was ‘Spheres at Docklands’ which

was presented in partnership with St Patrick’s

Festival in March 2009. The renowned Australian

theatre company, Strange Fruit, presented its

distinct performance style fusing theatre, dance

and circus to over 17,000 people in Grand Canal

Square over two nights during the St Patrick’s

Festival weekend.

Leisure and Tourism

The Docklands is home to Dublin’s premier

concert and music venue, the 02, which hosted

a vast range of performers from Britney Spears

to Daniel O’Donnell in 2009.

During 2009, the Authority advertised for

expressions of interest for the provision of an

observation wheel in the Docklands. Such was

the attraction of Docklands as a site for an

observation wheel that a planning permission

was granted for a 60 metre wheel at the Point

Village to complement events and attractions

at the O2. As well as the wheel, the area will

include Dublin’s newest outdoor market, a

stage programmed by Aiken Promotions, a

giant screen for movies and many boutique

cafes and restaurants.

The Jeanie Johnston remained berthed at

Dublin City Moorings in 2009. Tenders for

maintenance and operations of the ship were

advertised. Aiseanna Mara has since completed

an essential maintenance programme on board

the ship. The Liffey Voyage, now trading as

Liffey River Cruises had another successful

year carrying over 29,000 passengers in 2009.

Festivals and Events

Over the June Bank holiday weekend, the

Docklands Maritime Festival attracted over

150,000 visitors to enjoy Dublin’s largest

outdoor market, a wide variety of street acts

and entertainment and 5 visiting tall ships.

The event, supported by Fáilte Ireland was

extended to take in Sir John Rogerson’s Quay.

The 12 Days of Christmas Market was attended

by over 120,000 visitors out to experience a

taste of the traditional Christmas. With over

100 stalls selling a wide range of gift and food

items, the event has become a popular fixture

in Dublin’s event calendar.

Earlier in the same month, a record entry of

almost 2,500 runners took part in the ninth

Spheres at St. Patrick’s Festival



While the Authority must deal with a number

of significant challenges, it is also important

that we look beyond and continue to drive the

Docklands project forward. As laid down in

the Dublin Docklands Development Authority

Act 1997, the Authority’s focus on the social

and economic development of the area is

paramount and will be reflected in strategies

for delivering the vision for Docklands.

Gerald A. Kelly

Acting Chief Executive

The Authority supported two community arts

projects in 2009 with the aim of encouraging

community participation in the arts – a stated

aim of the Docklands arts and culture strategy.

‘As We See’ was a 12-week adult photography

course culminating in an exhibition of framed

prints, which was run in partnership with the

South Docks Festival. ‘A Song and a Dance’

was a series of ten music and dance workshops

for seniors which culminated with an afternoon

tea dance in October. The workshops were run

in partnership with the Macushla Dance Club

and held in the new Seán O’Casey Community

Centre in East Wall.

The Absolut Fringe Festival brought the

Spiegeltent back to George’s Dock for the

last time in September 2009 with two weeks

of live music, cabaret and neo-burlesque

entertainment.

Commissioned by the Docklands Authority,

artist Martin Richman transformed an important

piece of gas infrastructure on the North Quays

into a brightly lit beacon titled “Flow”. The small

building appears covered with sparkling sequins

resulting in a stunningly illuminated public

artwork. Inspired by the banded wrapping of the

freight containers associated with the river, the

sparkling sequins reflect the light and pattern on

the glazed surface of the structure.

‘Dublin Docklands - An Urban Voyage’, a book

written by Turtle Bunbury and published by the

Dublin Docklands Development Authority, was

launched by John Gormley, TD, Minister for

Environment, Heritage and Local Government

in the Audi Club at the O2 in March 2009.

The hardback book provides a chronicle and

comprehensive record of the memorable

buildings, people and events associated with

the Docklands area.

05


Report of the Executive Board and Financial Statements


06

06 Report of the Executive Board and Financial Statements

Report of the Executive Board 30

Statement of Responsibilities of the Executive Board 40

Independent Auditor’s Report 41

Statement of Accounting Policies 44

Consolidated Income and Expenditure Account 48

Consolidated Statement of Total Recognised Gains and Losses 49

Consolidated Reconciliation of Total Deficit 49

Consolidated Balance Sheet 50

Consolidated Cash Flow Statement 51

Authority Balance Sheet 52

Notes forming part of the Financial Statements 53


Report of the Executive Board

The Executive Board presents its report and the audited consolidated financial statements of the Authority

and its subsidiaries, including its share of its joint venture, for the year ended 31 December 2009.

The financial statements are prepared on a consolidated basis incorporating the Authority’s 26%

interest in Becbay Limited, a joint venture undertaking. The results for the year reflect a consolidated

deficit of 18.6 million (2008 - 212.9 million). This leads to consolidated net liabilities of 71.1 million

(2008: net liabilities of 48.5 million). The net assets of the Authority’s own balance sheet amount to

4.1 million (2008 - 26.2 million) as reflected on page 52 of the financial statements.

2009 Financial Highlights

2009 2008

’000 ’000

Authority operations

Operating deficit before impairment (7,428) (27,066)

Impairment of development and investment properties (5,481) (67,789)

Operating deficit – continuing operations (12,909) (94,855)

Net interest (817) (302)

Deficit before impact of joint venture (13,726) (95,157)

Impact of Becbay Limited joint venture

Impairment of loan to joint venture undertaking (4,430) (43,040)

Deficit for year – Authority entity only (18,156) (138,197)

Share of operating loss in joint venture undertaking (402) (74,711)

Deficit for the year - consolidated (18,558) (212,908)


During 2009, there was a further decline in the

property market, although not as significant as

2008, resulting in impairment losses of 5.5 million

(2008 - 67.8 million) in the income and expenditure

account. Further impairment losses of 5.1 million

(2008 - 14.8 million) were charged in the statement

of total recognised gains and losses.

Under accounting standards, the Authority, as a

26% shareholder with joint control over Becbay

Limited, is required to reflect its share of the

profit/loss and gross assets/liabilities of the joint

venture in its consolidated financial statements.

The primary asset of Becbay Limited is the

Irish Glass Bottle site at Poolbeg which was

independently valued for the Authority at 50

million as at 31 December 2008, which was a

significant impairment on its original carrying

value. This impairment was recognised in the

2008 financial statements. A further independent

valuation was obtained as at 31 December 2009.

This provided a valuation of 50 million, resulting

in no further impairment in 2009.

It is important to stress that while the Authority

has a requirement under accounting standards

to account for its percentage share in the joint

venture, it does not have a direct liability for these

amounts as the assets and liabilities of Becbay

Limited are the assets and liabilities of a separate

legal entity.

The Authority does, however, have a contingent

liability to the funding banks of Becbay Limited

under the terms of the guarantee provided of

29.1 million in capital plus 26% of interest,

incurred and to be incurred, on the existing loan

facilities of Becbay Limited during the term of

those facilities. The validity of this guarantee

is under review by the Authority and its legal

advisors. Having already accounted for its share

of the net liabilities in Becbay Limited, no separate

additional provision is required for this matter in

the financial statements of the group.

These financial statements are prepared on

a going concern basis and the Authority has

implemented stringent measures to stabilise

the business so as to emerge from this difficult

period, ensuring the long term viability and

success of the Docklands project.

Principal activities, business

review and future developments

The principal activities of the Authority are to

secure:

(i) the social and economic regeneration of the

Dublin Docklands Area, on a sustainable

basis;

(ii) improvement in the physical environment of

the Dublin Docklands Area; and

(iii) the continued development in the Custom

House Docks Area of services, in support

of, or ancillary to, the financial sector of the

economy.

The consolidated results of the Authority, its

subsidiaries and the share of its joint venture,

are set out on page 48 of these financial

statements.

The Authority’s performance has been adversely

impacted by the collapse in Irish and International

financial and property markets. Further

commentaries on performance in the year ended

31 December 2009 are contained in the Chairman’s

Statement and Acting Chief Executive’s Review.

The Executive Board has responded to the

uncertainty in the financial and property markets

and has restructured the Authority’s development

activities.

The key risks and uncertainties facing the

Authority include: a prolonged downturn in the

property market; a further decline in the demand

for affordable housing; completion of a major

development contract; the continued deferral of

major development projects; and the outcome of

a number of legal cases. A number of these risks

have a direct impact on revenue streams.


Going concern

The future operating performance of the Authority

will be affected by general economic, financial

and business conditions, many of which are

beyond the control of the Authority. Significant

further deterioration in the economic environment

in Ireland could have a further material adverse

impact on the carrying value of the property

portfolio of the Authority and on the capacity of

the Authority to trade.

The Authority has implemented stringent measures

to stabilise its finances, including the deferral of

discretionary spend and significant cuts across

projects and programmes.

The Executive Board has prepared a financial

plan, including detailed cash flow projections for

the period out to 31 December 2011, and details

of the key assumptions made are given in Note 1

to the financial statements.

As further detailed in Note 1 to the financial

statements, the Executive Board concludes that

there is a reasonable expectation that the Authority

will be able to meet its liabilities as they fall due for

the foreseeable future. Consequently, the Executive

Board considers it appropriate to prepare the

financial statements on a going concern basis. The

financial statements do not include any adjustment

that would result from the going concern basis of

preparation being inappropriate.

Corporate governance report

The Authority was established pursuant to the

provisions of the Dublin Docklands Development

Authority Act, 1997 (“the Act”). It is a body

corporate with perpetual succession and a seal

and power to sue and be sued in its corporate

name and to acquire, hold and dispose of land.

The Authority is a non-commercial state sponsored

body with a commercial mandate and has no

shareholders. The Executive Board has the general

power to conduct the business of the Authority

under Section 21 of the Act.

The members of the Executive Board are

committed to the highest standards of corporate

governance. The corporate governance policy, or

‘Code of Conduct’ followed, is based on the 2009

Code of Practice for the Governance of State

Bodies published by the Department of Finance.

The members of the Executive Board are

appointed by the Minister for the Environment,

Heritage and Local Government and hold office for

such terms as the Minister specifies when making

the appointment, not exceeding five years. The

Minister determines the level of remuneration for

the Executive Board. Such remuneration is not

linked to performance and is disclosed for all

non-executive directors in Note 6 to the financial

statements.

The Executive Board is accountable to the

Minister for the Environment, Heritage and Local

Government, for good corporate governance.

This report describes how the relevant principles

of good governance set out in the Code of

Conduct are applied by the Authority.

Executive Board

Role and responsibilities

The Executive Board typically meets on a monthly

basis and is responsible for the proper oversight

and governance of the Authority.

The Dublin Docklands Development Authority

Act, 1997 sets out the duties and responsibilities

of the Executive Board which include:

overseeing the management of the Authority;

ensuring the provision of infrastructure and

carrying out of amenity development and

environmental improvement to encourage

people to work, shop or reside in the area;

approving major acquisitions and significant

capital expenditure;

approving terms of major contracts;

reviewing the Authority’s system of internal

controls and risk management;

Report of the Executive Board/ continued


appointing, remunerating and assessing the

performance of and succession planning for,

the Chief Executive;

overseeing the preparation, submission

and implementation of planning schemes in

compliance with the Master Plan;

certifying planning applications as compliant

with the relevant planning schemes;

promoting the development, redevelopment,

renewal and conservation of lands in the area;

promoting education, training and employment

opportunities for residents of the Docklands;

and

promoting the development of existing and

new residential communities in the area and

mixed housing for people of different social

backgrounds.

The Executive, led by the Acting Chief Executive,

is responsible for the execution of agreed

strategies including those laid out in the Master

Plan and for executing operational matters.

The Executive Board takes the major strategic

decisions, while allowing the Executive to run

the business efficiently and effectively within a

centralised reporting framework.

The Executive Board has agreed a formal schedule

of delegated functions to the Executive, to ensure

clarity between the work of both groups.

The Executive Board is briefed by external

consultants, as and when required, on issues for

which internal expertise is not available. Given the

Authority’s financial position, the use of external

consultants was kept under strict review in 2009.

Membership

The Executive Board comprises a chairman and

seven independent non-executive directors. Each

member of the Executive Board brings independent

judgement to bear on issues of strategy, planning,

performance and standards of conduct. Members

consider the principles contained in the Code

of Conduct relating to their own independence

and make full declarations of their interests to

the Secretary to the Executive Board, where

appropriate.

All members of the Executive Board have access

to the advice and services of the Secretary to

the Executive Board, who is responsible for

ensuring that Board procedures are followed

and that applicable rules and regulations are

complied with.

Ms. Sheila O’Donnell resigned from the Executive

Board in February 2009 and Ms. Yvonne Farrell

was appointed to the Board with effect from 2

March 2009.

Chairman

Mr. Donal O’Connor was Chairman of the Authority

from May 2007 until his resignation in January

2009. Mr. Gerry McCaughey was appointed

Chairman on 2 March 2009 and resigned at the

end of March 2009. Following his resignation,

Professor Niamh Brennan was appointed

Chairman on 26 March 2009. The Chairman

oversees the operation and effectiveness of

the Executive Board and ensures that there is

effective communication with the Minister for the

Environment, Heritage and Local Government.

Induction and development

New members of the Executive Board are briefed

by the Executive on the business of the Authority

and are provided with all relevant documentation,

including governance documents, to ensure

that they are fully informed of their duties and

responsibilities and the procedures of the

Executive Board.

Remuneration

Details of remuneration paid to the members of

the Executive Board are set out in Note 6 to the

financial statements.


Meetings

The Executive Board held 16 meetings during

2009, 11 scheduled and 5 additional unscheduled

meetings, the purpose of which was to develop

responses or make decisions in relation to

specific issues that emerged during the year. The

Executive attends all meetings of the Executive

Board. The Executive Board also holds closed

sessions without the Executive being present.

Committees

During 2009, the Executive Board operated

through a number of Sub-Committees of the

Board to assist it in the execution of its duties

and responsibilities.

These are:

Planning

Audit, Finance and Risk

Becbay Joint Venture

Litigation

Most committees are guided by agreed terms of

reference. The terms of reference for the Audit,

Finance and Risk Committee are detailed in

the Code of Conduct, which is available on the

Authority’s website, www.dublindocklands.ie.

Membership of each Committee and attendance

at meetings is set out on page 37.

Planning Committee

The Planning Committee reviews Section 25 plan-

ning applications and makes recommendations for

decision to the Executive Board. On occasion, the

Committee considers other planning matters and

policy documents, in advance of their consideration

by the Executive Board.

Audit Finance and Risk Committee

The Committee, comprising three members of

the Executive Board, met on 9 occasions during

2009. The Chairman, Chief Executive and the

Director of Finance, together with members of the

Finance Team, attend meetings of the Committee.

Other members of the Executive attend, when

necessary. The external and internal auditors

attend as required and have direct access to the

Committee Chairman at all times. During the year,

the Committee met with the internal auditors and

with the external auditors, in the absence of the

Executive.

The main roles and responsibilities of the Audit,

Finance and Risk committee are set out in written

terms of reference and include:

monitoring the integrity and accuracy of the

Authority’s financial statements and reviewing

significant financial reporting issues and

judgements contained therein;

reviewing the effectiveness of the Authority’s

internal controls;

monitoring and reviewing the effectiveness of

the Authority’s internal auditors;

considering the appointment of the external

auditors, the audit fee and any questions of

resignation or dismissal;

discussing the annual internal and external

audit plans;

monitoring and reviewing the external auditor’s

performance, independence, objectivity and

effectiveness, taking into account professional

and regulatory requirements;

discussing issues arising from the final audit

and any matters the external auditors may wish

to have considered by the Committee;

reviewing the Authority’s annual budget and

longer term financial plan before submission to

the Executive Board; and

reviewing the Authority’s risk management

process, with particular reference to the Risk

Review Framework Document (RRFD) as

prepared by the Executive, on how the Authority

manages its key risks.



These responsibilities are discharged as follows:

prior to the finalisation of the financial statements,

the Committee reviews the significant financial

reporting issues and the judgements contained

therein and meets with the external auditors to

discuss the results of their audit;

the Committee receives monthly management

accounts. Updated cash flow projections are

also provided on a monthly basis;

the Committee obtains monthly project reports,

which detail the key financial information for

the main projects the Authority has undertaken,

together with details of all risks for such

projects and the steps being taken to manage

such risks;

the Committee agrees the internal audit plan at

the commencement of the year, focusing on key

areas of risk and may commission additional

audits, if necessary. The internal auditors report

their findings to the Committee on completion

of the relevant audits. During 2009 the following

internal audits were finalised; Tax Audit, Prompt

Payments, Review of Levy System and the Risk

Framework;

the Committee also meets with the external

auditors before the audit commences, to review

the nature and scope of the audit, focusing on

changes in accounting policy, major judgemental

areas, compliance with accounting standards

and agreement of the audit fee;

following normal procurement processes,

the Committee is notified in advance of any

appointment of the external auditors to provide

non-audit services and the external auditors are

requested to confirm in writing to the Committee

that the completion of the engagement will not

adversely affect their independence, or create

a conflict of interest. During 2009 the external

auditors provided no additional non-audit

services to the Authority;

the Committee reviews the annual budget in

November each year, prior to submission to the

Executive Board.

Becbay Joint Venture Committee

The Becbay Joint Venture Committee assists the

Executive Board and Executive in dealing with

issues which arise in relation to the Authority’s

interest in its joint venture undertaking, Becbay

Limited, which owns the Irish Glass Bottle site at

Poolbeg peninsula in Dublin.

Litigation Committee

The Litigation Committee assists the Executive

Board and Executive in dealing with legal cases

underway or threatened.

Internal Control and Risk

Management

The Executive Board, together with the Acting

Chief Executive, acknowledges its responsibilities

for the system of internal control in the Authority.

A system of internal financial control is designed

to reduce rather than eliminate risk. Such a system

can provide only reasonable and not absolute

assurance that assets are safeguarded, transactions

are authorised and properly recorded and that

material errors or irregularities are either prevented

or would be detected in a timely manner.

Late in 2008, the Audit Finance and Risk Committee

commissioned an internal audit of the Authority’s

risk strategy. This report was finalised in 2009,

the recommendations of which have been, or are

being, implemented. This will ensure the Authority’s

risk control measures are in line with best practice.

The system of internal control is designed to

manage, rather than eliminate, the risk of failure

to achieve the business objectives. In pursuing

these objectives, internal controls can provide only

reasonable and not absolute assurance against

material misstatement or financial loss.

Following a request from the Minister for the

Environment, Heritage and Local Government in

August 2009, the Executive Board commissioned

two corporate governance reviews of the

planning and finance functions of the Authority.


Both reviews, together with a report from the

Executive Board, were submitted to the Minister

in February 2010.

The Executive Board has reviewed the

effectiveness of internal controls during the year.

The processes used include the following:

The Audit, Finance and Risk Committee

reviews the Risk Review Framework Document

(RRFD), which is currently being developed

further. All business risks are assessed using

the framework of the RRFD, at least annually

and any significant matters arising are formally

reported to the Executive Board. The Executive

is also charged with the ongoing responsibility

for identifying risks facing the business and

for putting in place procedures to mitigate and

monitor risks. This is achieved through the

production of a monthly update, which details

the specific risks for all major projects.

Work is ongoing on the completion of a disaster

recovery plan for the Authority.

Acquisitions and disposals of all Authority

assets are referred to the Executive Board.

There were no major acquisitions or disposals

in 2009.

Large capital projects and acquisitions require

Executive Board approval and may be, if

requested by the Executive Board, referred

to the Audit, Finance and Risk Committee for

review, prior to approval by the Executive Board.

There were no such transactions in 2009.

The Executive Board has established a control

framework within which the Authority operates.

This contains the following key elements:

- organisational structures with clearly defined

lines of responsibility, delegation of authority

and reporting requirements;

- defined expenditure authorisation levels; and

- a comprehensive system of financial reporting.

The annual budget and long-term cash flow

projections for a five year period for the

Authority are reviewed and approved by the

Audit, Finance and Risk Committee and the

Executive Board. Monthly actual results are

reported against budget and the forecast

for the year is revised where necessary.

Any significant changes and variances are

reviewed regularly by the Audit, Finance and

Risk Committee, who report to the Executive

Board and remedial action is taken, where

appropriate. Cashflow projections are also

presented to the Board, on a monthly basis.

- The corporate governance financial review

to the Minister highlights a looseness in the

implementation of this control framework.

The control framework was tightened

considerably in the latter part of 2009.

Compliance Statement

The Authority has complied with the sections of

the 2009 Code of Practice for the Governance of

State Bodies (“the 2009 Code”) that relate to the

submission of financial statements and reports to

the relevant Government Departments and the

publication of an annual report. Due to resource

constraints, there are certain areas of non-

compliance with other requirements of the 2009

Code, which will be addressed in 2010.



Attendance at Executive Board and Committee meetings during 2009

Board PlanningSub-Committee

Audit, Finance and Risk Sub-Committee

Becbay Joint Venture Sub-Committee

Litigation Sub-Committee

A B A B A B A B A B

Niamh Brennan(Appointed to Board Mar 2009)

13 12 7 5 7 7 3 2 4 4

Dónall Curtin 16 14 5 5 5 3

Mark Griffin 16 13 10 9 5 3 5 5

Brendan Malone 16 14 9 9 3 1

Niall Coveney 16 15 9 9

Sheila O’Donnell(Resigned from Board Feb 2009)

1 1 1 1

Yvonne Farrell(Appointed to Board Mar 2009)

13 9 7 7

Niamh O’Sullivan 16 14 10 10

Catherine Mullarkey 16 15 9 9 5 5

A - number of meetings held during the tenure of each board member in 2009

B - number of meetings attended


Electoral Act, 1997

The Authority made no political donations during

the year.

Prompt Payment of Accounts

The Executive Board acknowledge their responsibility

for ensuring compliance, in all material respects, with

the provisions of the European Communities (Late

Payments in Commercial Transactions) Regulations

2002 and its predecessor, the Prompt Payment

of Accounts Act, 1997 (“PPA”) (collectively “the

Regulations”). Procedures have been implemented

to identify the dates upon which invoices fall due for

payment and to ensure that payments are made by

such dates. Such procedures provide reasonable

assurance against material non-compliance with

the Regulations.

An internal audit review was carried out of the

Authority’s compliance with the Regulations. The

review found that the Authority was in material

compliance with the Regulations.

Accounting Records

The Executive Board believes that proper books

of account are maintained in compliance with the

requirements of Section 202 of the Companies Act,

1990. The books of account of the Authority are

maintained at the Dublin Docklands Development

Authority, 52-55 Sir John Rogerson’s Quay,

Docklands, Dublin 2.

The Executive Board

Niamh Brennan is a Chartered Accountant, a

Chartered Director, and Michael MacCormac

Professor of Management at University College

Dublin (UCD). She is Academic Director of the

Centre for Corporate Governance at UCD. She

is a non-executive director of the Health Service

Executive, and is a former non-executive director

of Ulster Bank, Lifetime Assurance Company Ltd,

Coillte Teoranta (the State Forestry Company)

and of Co-Operation Ireland.

Niall Coveney is a fellow of the Institute of

Chartered Accountants in Ireland, a licensed

Insolvency Practitioner and member of the

Insolvency Practitioners Association. He has

worked for many years with Ernst & Young both

in Ireland and abroad. He is a former member of

the Board of The Hume Street Hospital.

Dónall Curtin is a Fellow of the Institute of Certified

Public Accountants in Ireland and Founder and

Senior Partner of Byrne Curtin Kelly. He has

served on several of the Institute’s committees,

including chairing the Institute’s Technical sub-

committee on Financial Reporting Standards in

which capacity he represented the Institute on the

Accounting Standards Consultative Committee of

Accountancy Bodies – Ireland. He is an Associate

of the Chartered Institute of Arbitrators. He is a

board member of the Health Insurance Authority

and is a director of Chambers Ireland.

Yvonne Farrell graduated from the School

of Architecture in University College Dublin,

where she began teaching in 1976. She lectures

extensively and has been Visiting Critic in Schools

of Architecture in Europe, China and USA. She is

Visiting Professor in Accademia di Architettura in

Mendrisio, Switzerland and Kenzo Tange Visiting

Professor in Harvard. She is a Fellow of both the

RIAI and the RIBA. She is co-founder of Grafton

Architects, established in 1978, and founder

member of Group ’91 Architects, winners of the

International Competition for the Regeneration of

Temple Bar, Dublin. Her work includes educational

buildings, Government Department offices and

numerous Department of Education and Science

schools cited in OECD school design publications.

Grafton Architects won World Building of the Year

Award 2008 for the Bocconi University Project in

Milan and were one of the five finalists for the Mies

van der Rohe Award 2008.

Mark Griffin is Assistant Secretary over the Water

and Planning Division in the Department of the

Environment, Heritage and Local Government,

having previously served as Assistant Secretary over

the Corporate Services Division of the Department.



He has also worked in the Departments of Finance

and Foreign Affairs. He is a computer science

graduate from Trinity College Dublin. He is a board

member of the Irish Heritage Trust.

Brendan Malone is a Fellow of The Institute of

Chartered Accountants in Ireland and is Managing

Partner in the firm of Malone Power and Company,

Chartered Accountants and Registered Auditors.

He is a former non-Executive Director of The

Railway Procurement Agency and ACC Bank.

Catherine Mullarkey is a commerce graduate

from University College Dublin and a qualified

chartered certified accountant. With over 20 years

experience in commercial investment and banking

in Ireland, UK and Europe, she is a director of

Blacktree Consulting Limited, a specialist finance

and property advisory company.

Niamh O’Sullivan is a Chartered Member of

Engineers Ireland. She is a member of the

Engineers Ireland accreditation board. She is a

graduate of University College Cork and Imperial

College, University of London. A director of Arup

Consulting Engineers, she has over 20 years

experience in the planning and environmental

assessment of major infrastructure projects.

Auditor

In accordance with Section 43(2) of the Dublin

Docklands Development Authority Act, 1997, the

auditor, KPMG, Chartered Accountants, is willing

to continue in office.

On behalf of the Executive Board 25 May 2010

Prof. Niamh Brennan Niall Coveney

Chairman of Executive Board Director of Executive Board


The Executive Board is responsible for preparing

the annual report and financial statements, in

accordance with applicable law and regulations.

The Dublin Docklands Development Authority Act,

1997 requires the Executive Board to prepare an

annual report and financial statements for each

financial year. The Executive Board has elected

to prepare the Group and Authority financial

statements in accordance with the accounting

standards issued by the Accounting Standards

Board and promulgated by the Institute of

Chartered Accountants in Ireland (Generally

Accepted Accounting Practice in Ireland) and with

the presentation and disclosure requirements of

the Companies Acts, 1963 to 2009.

The Group and Authority financial statements are

required by law to give a true and fair view of the

state of affairs of the Group and the Authority

and of the surplus or deficit of the Group for that

period.

In preparing the financial statements, the members

of the Executive Board are required to:

select suitable accounting policies and then

apply them consistently

make judgements and estimates that are

reasonable and prudent

concern basis, unless it is inappropriate to

presume that the Group and Authority will

continue in business.

The Executive Board is responsible for keeping

proper books of account that disclose with

reasonable accuracy at any time the financial

position of the Authority and enable it to ensure

that the financial statements comply with

the Urban Renewal Act, 1986 and the Dublin

Docklands Development Authority Act, 1997. It

is also responsible for taking such steps as are

reasonably open to it to safeguard the assets of

the Group and the Authority and to prevent and

detect fraud and other irregularities.

The Executive Board is responsible for the

maintenance and integrity of the corporate and

financial information included on the Authority’s

website.

Statement of Responsibilities of the Executive Board

On behalf of the Executive Board




We have audited the Group and Authority financial

statements (“the financial statements”) of Dublin

Docklands Development Authority for the year

ended 31 December 2009, on pages 44 to 73, which

comprise the statement of accounting policies,

consolidated income and expenditure account,

consolidated statement of total recognised gains

and losses, consolidated reconciliation of total

deficit, consolidated balance sheet, consolidated

cash flow statement, Authority balance sheet and

related notes. These financial statements have

been prepared under the accounting policies set

out therein.

This report is made solely to the Authority’s

member, the Minister for the Environment, Heritage

and Local Government. Our audit work has been

undertaken so that we might state to the Authority’s

member, those matters we are required to state to

him in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not

accept or assume responsibility to anyone, other

than the Authority and the Authority’s member, for

our audit work, for this report, or for the opinions

we have formed.

Respective responsibilities of the

Executive Board and auditor

The Executive Board’s responsibilities for

preparing the annual report and financial

statements in accordance with the accounting

standards issued by the Accounting Standards

Board and promulgated by the Institute of

Chartered Accountants in Ireland (Generally

Accepted Accounting Practice in Ireland) and

the presentation and disclosure requirements of

the Companies Acts, 1963 to 2009, are set out in

the statement of responsibilities of the Executive

Board on page 40.

Our responsibility is to audit the financial

statements in accordance with relevant legal

and regulatory requirements and International

Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the

financial statements give a true and fair view and

have been properly prepared in accordance with

the Urban Renewal Act, 1986, and the Dublin

Docklands Development Authority Act, 1997 and

the presentation and disclosure requirements

of the Companies Acts, 1963 to 2009. We also

report to you whether, in our opinion, proper

books of account have been kept by the Authority

and whether the information given in the Report

of the Executive Board is consistent with the

financial statements. In addition, we state,

whether we have obtained all the information and

explanations necessary for the purposes of our

audit and whether the Authority’s balance sheet

is in agreement with the books of account.

We also report to you if, in our opinion, any

information specified by law regarding Directors’

remuneration and Directors’ transactions is not

disclosed and, in such event where practicable,

include such information in our report.

We read the other information contained in

the annual report and consider whether it is

consistent with the audited financial statements.

The other information comprises: the Chairman’s

Statement; Acting Chief Executive’s Review;

sections on the Council, the Executive Board and

the Executive. We consider the implications for

our report, if we become aware of any apparent

misstatements or material inconsistencies with

the financial statements. Our responsibilities do

not extend to any other information.

We review whether the statements regarding the

system of internal financial control, required by

the 2009 Code of Practice for the Governance

of State Bodies, on pages 32 to 36 reflect the

Group’s compliance with the relevant provisions of

that code that are specified for review by auditors

and we report if they do not. We are not required

to consider, whether the Executive Board’s

statements on internal control cover all risks and

controls, or form an opinion on the effectiveness of

the Authority’s corporate governance procedures

or its risk and control procedures.

Independent Auditor’s report to the Minister for the Environment, Heritage and Local Government


Basis of audit opinion

We conducted our audit in accordance with

International Standards on Auditing (UK and

Ireland) issued by the Auditing Practices Board.

An audit includes examination, on a test basis, of

evidence relevant to the amounts and disclosures

in the financial statements. It also includes an

assessment of the significant estimates and

judgements made by the Executive Board in the

preparation of the financial statements and of

whether the accounting policies are appropriate

to the Group’s and Authority’s circumstances,

consistently applied and adequately disclosed.

We planned and performed our audit so as to

obtain all the information and explanations which

we considered necessary in order to provide

us with sufficient evidence to give reasonable

assurance that the financial statements are free

from material misstatement, whether caused by

fraud, or other irregularity, or error. In forming our

opinion, we also evaluated the overall adequacy

of the presentation of information in the financial

statements.

Opinion

In our opinion:

the financial statements give a true and fair

view, in accordance with Generally Accepted

Accounting Practice in Ireland, of the state of

the Group’s and the Authority’s affairs as at 31

December 2009 and of the Group’s deficit for

the year then ended;

the financial statements have been properly

prepared in accordance with the Urban Renewal

Act, 1986, the Dublin Docklands Development

Authority Act, 1997 and the presentation and

disclosure requirements of the Companies

Acts, 1963 to 2009.

Emphases of matter in respect of going

concern and property valuations

In forming our opinion on these financial

statements, which is not qualified, we have

considered the adequacy of the disclosures

made in Note 1 to the financial statements,

concerning the significant uncertainties affecting

(a) the Group’s ability to continue as a going

concern and (b) the valuation of the share of gross

assets of the Group’s joint venture undertaking,

Becbay Limited, and the valuation of the Group’s

development assets and investment properties.

Note 1 to the financial statements sets out the

key assumptions made by the Executive Board

in relation to the Group’s ability to continue as a

going concern including, inter alia, (i) the continued

availability of sufficient banking facilities, (ii)

no payments will be required in respect of the

guarantee of the joint venture undertaking’s bank

borrowings, (iii) the successful defence of a key

litigation case.

These assumptions represent significant un-

certainties in relation to the ability of the Group to

continue as a going concern. The Executive Board

is of the opinion that it is appropriate to prepare

the financial statements on the going concern

basis. The financial statements do not include any

adjustments that would result if the Group was un-

able to continue as a going concern.

Also as set out in Note 1, the Group’s principal

assets comprise development assets, investment

properties and the Group’s share of gross assets

of its joint venture undertaking, Becbay Limited.

Given the materiality of these amounts and the

inherent subjectivity in the valuation assumptions

applied to those assets, we draw your attention to

Note 1, which highlights the assumptions made and

judgements exercised by the Executive Board.

Independent Auditor’s report to the Minister for the Environment, Heritage and Local Government/ continued


Other matters

We have obtained all the information and

explanations which we consider necessary for the

purposes of our audit. In our opinion, proper books

of account have been kept by the Authority. The

Authority’s balance sheet is in agreement with the

books of account.

In our opinion, the information given in the report

of the Executive Board, on pages 30 to 39, is

consistent with the financial statements.

Chartered Accountants, Registered Auditor

1 Stokes Place, St Stephen’s Green, Dublin 2

25 May 2010


The Dublin Docklands Development Authority

(the Authority), was established by the Dublin

Docklands Development Authority Act, 1997

following dissolution of its predecessor, the

Custom House Docks Development Authority,

from which all land and property rights and

liabilities were vested in the Authority.

The following accounting policies have been

applied consistently in dealing with items which

are considered material in relation to the Group

and Authority financial statements.

Basis of preparation

The financial statements are prepared in

accordance with generally accepted accounting

principles under the historical cost convention,

as modified by the revaluation of investment

properties, and comply with financial reporting

standards of the Accounting Standards Board,

as promulgated by the Institute of Chartered

Accountants in Ireland.

The Urban Renewal Act, 1986 and the Dublin

Docklands Development Authority Act, 1997

do not contain detailed provisions in respect of

formats of financial statements. Therefore, the

Authority has elected to adopt the presentation

and disclosure requirements of the Companies

Acts, 1963 to 2009.

Information is included in Note 1 to the financial

statements in relation to significant areas of

uncertainty affecting the Authority’s ability to

continue as a going concern.

Note 1 also contains disclosures about significant

areas of uncertainty in applying accounting

policies that have the most significant effect on

amounts recognised in the financial statements.

These mainly relate to the valuations of the share

of gross assets of the joint venture undertaking,

investment properties and development assets.

Basis of consolidation

The financial statements of the Group consolidate

the financial statements of the Authority and its

subsidiary undertakings (“subsidiaries”), and

include its share of its joint venture undertaking,

made up to 31 December 2009.

Joint venture undertakings (“joint ventures”) are

those undertakings, in which the Group has a long

term interest and over which the Group exercises

control jointly with one or more parties.

The Group includes its share of the joint venture

profits and losses, and separately discloses its

share of its joint venture’s turnover, if any, in the

consolidated income and expenditure account.

The Group includes its share of gross assets and

gross liabilities in the consolidated balance sheet.

The results of subsidiaries and joint ventures

acquired or disposed of in the year, are included

in the consolidated income and expenditure

account, from the date of acquisition, or up to the

date of disposal.

The Authority has elected not to present a single-

entity Authority income and expenditure account.

This is in line with the exemption adopted by

incorporated entities presenting consolidated

financial statements under the Companies Acts,

1963 to 2009.

Turnover

Turnover comprises the net sales proceeds on the

disposal of investment properties or development

properties. For the purpose of these financial

statements, “sale” includes the granting or

assignment of a lease that transfers substantially

all the risks and rewards of ownership to the lessee.

Disposals are accounted for on the exchange of

contracts, unless the contracts are conditional,

in which case, the disposal is deemed to occur

when all of the conditions have been satisfied and

the contract is unconditional.

Statement of Accounting Policies


Where a licence or arrangement to develop has

been granted to a developer and it is agreed

that the Authority and developer will share in the

eventual surplus on disposal, the Authority’s share

of the surplus is recognised in turnover, as earned.

The surplus on sale is recognised on a percentage

of completion basis, or as otherwise determined

under the terms of the licence agreement.

Accrued income

Revenue earned, which has not yet been billed

to customers, is recorded as accrued income,

where a contractual obligation exists on the

part of a customer to pay a specified sum to the

Authority and the Authority has discharged its

commitments as set out in the contract.

Other income

Subsidy income is recognised when all conditions

related to the subsidy have been complied with.

Levy income from developers is recognised on

commencement of property developments, for

which a Section 25 award has been granted and

no further performance obligations exist. Where

levy income is receivable in relation to specific

works being completed, such income will be

recognised as the works are completed. Rental

and other income is recognised as it is earned.

Deferred income

Revenue which has been billed to customers in

advance, and is therefore unearned, is excluded

from income and recorded as deferred income.

This also includes any levy income which is

receivable in relation to specific works to be

performed. Such income will be deferred until

such time as the works are performed.

Area regeneration

Area regeneration costs are incurred as part of

the Authority’s mandate to enhance public areas

and support community based initiatives. Area

regeneration costs are expensed in the year in

which they are incurred, net of any associated

revenue grants, which are credited to the income

and expenditure account in the year in which

they become receivable, to offset the related

expenditure.

Foreign currency

Foreign currency denominated transactions are

translated into Euro at exchange rates applying

at the date of the transactions, or at a contracted

rate. Exchange gains, or losses arising, are dealt

with in the income and expenditure account.

Monetary assets and liabilities denominated in

foreign currencies are translated at the balance

sheet date using exchange rates applying at that

date, or at a contracted rate. Exchange gains or

losses arising on translation are also dealt with in

the income and expenditure account.

Development assets

As detailed in Note 1 to the financial statements,

the carrying values and likely ultimate use of

all development assets were reviewed by the

Executive Board, as at 31 December 2009.

a) Fixed development assets

Development assets include land and

buildings acquired by the Authority for the

purpose of securing the redevelopment of

the Dublin Docklands Area.

On acquisition, fixed development assets are

recorded in fixed assets at the lower of cost and

recoverable amount. Cost comprises purchase

cost and all other necessary costs required

to acquire the asset under the purchase

agreement. Recoverable amount is determined

by reference to the estimated value of the

development assets, based on the Authority’s

intention for the ultimate use of these assets.


Acquisitions are accounted for on exchange of

contracts, unless the contract is conditional, in

which case, the acquisition is deemed to occur

when all the conditions have been satisfied

and the contract becomes unconditional.

b) Current development assets

Development assets on which development

has commenced are transferred from fixed

development assets to current development

assets.

Development costs incurred by the Authority,

are included in the costs of such current

assets. Once development has commenced,

interest on related borrowings is capitalised.

Current development assets, on which

development has commenced, are carried

at the lower of cost and net realisable value.

Cost comprises; purchase cost, demolition

costs, site preparation, design fees and other

development preparation costs, less any direct

grants. On substantial completion, development

properties then held for investment are

transferred to investment properties at carrying

value and are subsequently revalued to open

market value.

Current development assets on which

development has commenced under a licence

or arrangement with a third party developer

are also transferred to current assets and

carried at the lower of cost and net realisable

value. Where income is recognised under the

licence or other arrangement, an appropriate

portion of the current development asset is

charged to cost of sales.

Grants in respect of specific current

development assets are offset against the

cost of current development assets and,

as such are not credited to the income and

expenditure account.

Housing stock, acquired by the Authority for

provision of social and affordable housing, is

included within current development assets

and carried at the lower of cost and net

realisable value. On completion of the sale of

each unit, the relevant costs are transferred

to cost of sales.

Investment properties

Investment properties are freehold properties

on which development has been completed

and which are retained by the Authority for the

purpose of their investment potential and rental

generation.

In accordance with Statement of Standard

Accounting Practice No.19, “Investment Properties”:

investment properties are stated on the basis

of open market values determined by internal

professional valuers at each year end and by

professional independent valuers in accordance

with the RICS Appraisal and Valuation Standards,

at least every three years. Surpluses arising

are credited to the revaluation reserve through

the statement of total recognised gains and

losses. Devaluations down to historical cost are

charged to the revaluation reserve, through the

statement of total recognised gains and losses,

and impairments below historical cost, or from

a clear consumption of economic benefit, are

charged to the income and expenditure account,

in the year in which they arise; and

no depreciation or amortisation is provided in

respect of freehold investment properties. This

treatment is a departure from the requirements

of company law concerning depreciation of

fixed assets. However, these properties are not

held for consumption, but for investment and

the Executive Board considers that systematic

annual depreciation would be inappropriate.

The accounting policy adopted is therefore

necessary for the financial statements to give a

true and fair view. Depreciation, or amortisation,

is only one of the many factors reflected in

the annual valuation and the amount which

might otherwise have been shown cannot be

separately identified or quantified.

Statement of Accounting Policies/ continued


Acquisitions are accounted for on exchange of

contracts, unless the contract is conditional, in

which case, the acquisition is deemed to occur

when all of the conditions have been satisfied and

the contract becomes unconditional.

Tangible fixed assets and

depreciation

Tangible fixed assets are stated at cost less

accumulated depreciation.

No depreciation is provided on freehold land.

The charge for depreciation is calculated to write

down other tangible fixed assets to their estimated

residual values, by equal annual installments over

their expected useful lives, which are as follows:

Marine craft 10-11 years

Fixtures, fittings and equipment 3-5 years

Freehold land and buildings 50 years

During the year the expected useful life of marine

craft was reassessed and amended to 10-11

years from 10-20 years in the prior year. As this

reflects a change in estimate rather than a change

in accounting policy, no prior year adjustment

was required. The impact in the current year

from the revised estimate was an increase in the

depreciation charge of 173,000.

Impairment provisions are made, where necessary,

to write down the carrying value of tangible fixed

assets to their recoverable amount.

Financial assets

Investments in subsidiaries and joint ventures,

including long-term loans, are shown in the

Authority’s own balance sheet as financial fixed

assets and are stated at cost, less provisions for

impairment in value.

Pension obligations

The Authority’s pension obligations are operated

under the terms of the Dublin Docklands

Development Authority Superannuation Scheme,

2000 and the Dublin Docklands Development

Authority Spouses and Children’s Contributory

Pension Scheme, 2000 (“the pension schemes”),

as approved by the Minister for the Environment,

Heritage and Local Government, with the

consent of the Minister for Finance. The pension

schemes are unfunded and payment of pension

obligations by the Authority only fall due on the

retirement of pensionable employees.

In accordance with FRS 17 “Retirement Benefits”,

the actuarially assessed present value of the

schemes’ liabilities, calculated using the projected

unit credit method, is disclosed as a liability in the

balance sheet.

The amount charged to operating expenses is

the actuarially determined cost of employee

pension benefits earned during the year, plus

any benefit improvements granted to members

during the year.

The increase in the schemes’ liabilities due to the

unwinding of the discount during the year is shown

as finance costs in the income and expenditure

account. Any changes to the schemes’ liabilities

due to changes in assumptions, or because actual

experience during the year was different to that

assumed, are recognised as actuarial gains and

losses in the statement of total recognised gains

and losses.

Cash and liquid resources

Within the consolidated cash flow statement, cash,

deposits repayable on demand and overdrafts,

are classified as cash. Liquid resources represent

term deposit accounts with banks, with maturities

greater than 1 day.


Consolidated income and expenditure account

for the year ended 31 December 2009 Note 2009 2008

’000 ’000

Turnover - continuing operations 2 17,226 18,638

Other income 3 3,413 12,111

Cost of sales 4 (11,494) (8,651)

Gross surplus 9,145 22,098

Operating expenses 5 (10,766) (21,537)

Area regeneration costs 8 (5,807) (27,627)

(16,573) (49,164)

Operating deficit before impairment (7,428) (27,066)

Impairment of development and investment properties 9 (5,481) (67,789)

Operating deficit – continuing operations (12,909) (94,855)

Share of operating loss in joint venture undertaking 11 (402) (74,711)

Deficit before interest (13,311) (169,566)

Interest receivable:

Group 30 500

Impairment of loan to joint venture undertaking 11 (4,430) (43,040)

Interest payable 10 (460) (402)

Interest on pension scheme liabilities 18 (387) (400)

(5,247) (43,342)

Deficit for the year (18,558) (212,908)





Consolidated statement of total recognised gains and losses

for the year ended 31 December 2009 Note 2009 2008

’000 ’000


Unrealised deficit on revaluation of investment properties 14 (5,092) (14,768)

Actuarial gain recognised in the pension schemes 18 1,102 1,951

Total recognised losses for the year (22,548) (225,725)

Consolidated reconciliation of total deficit

for the year ended 31 December 2009

Note 2009 2008

’000 ’000

Total recognised losses for the year (22,548) (225,725)

Opening (deficit) / surplus (48,502) 177,223

Total deficit at end of year (71,050) (48,502)


Consolidated balance sheet

at 31 December 2009 2009 2009 2008 2008

Note ’000 ’000 ’000 ’000

Fixed assets

Tangible assets 13 6,117 7,427

Investment properties 14 25,918 34,970

Development assets 15 7,437 7,685

39,472 50,082Financial assets

Loans to joint venture undertaking 11 - -

Current assets


Debtors 16 7,309 15,563

Cash at bank and in hand 23 10,249 3,461

33,025 44,614

Creditors: amounts falling due within one year 17 (61,984) (61,972)

Net current liabilities (28,959) (17,358)

Total assets less current liabilities 10,513 32,724

Provisions for liabilities

Joint venture undertaking

Share of gross assets 11 13,052 13,213

Share of gross liabilities 11 (88,155) (87,914)

(75,103) (74,701)

Net liabilities excluding pension liabilities (64,590) (41,977)

Net pension liability 18 (6,460) (6,525)

Net liabilities (71,050) (48,502)

Revaluation surplus 19 5,801 10,893Closing deficit (76,851) (59,395)

Total deficit (71,050) (48,502)





Consolidated cash flow statement

for the year ended 31 December 2009 2009 2008

Note ’000 ’000

Net cash inflow/(outflow) from operating activities 20 13,263 (19,995)

Returns on investment and servicing of finance

Interest received 31 588Interest paid (58) (168)

(27) 420

Capital expenditure and financial investment

Payments for fixed development assets 21 (17,561) (807)

Acquisition of tangible fixed assets (21) (1,296)

Acquisition of investment property (16) (499)

Acquisition of current development assets (420) (14,311)

Loans to joint venture undertaking (4,430) (5,382)

Net cash outflow from capital expenditure and

financial investment (22,448) (22,295)

Net cash outflow before management of liquid

resources and financing 22 (9,212) (41,870)

Management of liquid resources

Net cash transferred (to)/from liquid resources (9,832) 26,880

Financing

New bank loans received 21,000 21,743

Repayment of bank loans (5,000) (6,743)

16,000 15,000

(Decrease) / Increase in cash in the year 22 (3,044) 10


Authority balance sheet

at 31 December 20092009 2009 2008 2008

Note ’000 ’000 ’000 ’000

Fixed assets

Tangible assets 13 6,117 7,427

Investment properties 14 25,918 34,970


39,472 50,082

Financial assets

Investment in shares in subsidiary undertakings 11 - -

Investment in shares in joint venture undertaking 11 - -

Loans to joint venture undertaking 11 - -

- -Current assets


Debtors 16 7,309 15,563

Cash at bank and in hand 23 10,249 3,461

33,025 44,614

Creditors: amounts falling due within one year 17 (61,984) (61,972)

Net current liabilities (28,959) (17,358)

Total assets less current liabilities 10,513 32,724

Net pension liability 18 (6,460) (6,525)

Net assets 4,053 26,199

Revaluation surplus 19 5,801 10,893

Closing (deficit) / surplus (1,748) 15,306

Total surplus 4,053 26,199





1 Basis of preparation – significant

uncertainties affecting going

concern and property valuations

a) Going Concern

The future operating performance of the Authority

will be affected by general economic, financial and

business conditions, many of which are beyond

the control of the Authority. Further deterioration

in the economic environment in Ireland could have

a material adverse impact on the carrying value of

the property portfolio of the Authority and on the

capacity of the Authority to trade.

The Authority has implemented stringent measures

to stabilise its finances, including deferral of

discretionary spend and significant cuts across

projects and programmes. It is the Board’s intention

for the Authority to return to a break even position.

The Executive Board has prepared a financial

plan, including detailed cashflow projections,

for the period to 31 December 2011. The key

assumptions made in preparing the plan include:

banking facilities from National Irish Bank, a

subsidiary of Danske Bank, will remain in place

until December 2011, based on an expectation

that existing facilities, due for review in

December 2010, will be renewed.

no amounts will be payable in respect of the

Authority’s guarantee of bank borrowings of

the joint venture undertaking, Becbay Limited.

The validity of this guarantee is under review by

the Authority and its legal advisors. The amount

of the guarantee is 29.1 million, plus 26% of

unpaid interest incurred and to be incurred on

the existing loan facilities of Becbay Limited,

during the term of those facilities. Payments

of such amounts could arise, if Becbay

Limited does not secure continued finance

and its lenders seek repayment of amounts

guaranteed. Should this occur, the Authority

may have to seek additional facilities to fund

the guarantee payment. The financial plan

and cashflow projections assume that Becbay

Limited will continue as a going concern and

that the guarantee will not be called in. In

March 2010, formal notification was received

from the National Asset Management Agency

(NAMA), to inform the Authority that the Becbay

Limited bank loans will be acquired by NAMA

commencing on 29 March 2010.

no property acquisitions or disposals are

assumed to occur during 2010, with the

exception of affordable housing stock.

all affordable housing stock currently held,

or to be acquired during the period, will be

disposed of.

the Authority will receive a significant final

scheduled payment on a key development site.

successful defence of the Donatex litigation

case.

The Executive Board have concluded that the

above factors represent significant uncertainties.

Failure to deliver on the forecasted assumptions,

may cast significant doubt on the ability of the

Authority to continue as a going concern and it

may, therefore, be unable to realise its assets

and discharge its liabilities in the normal course

of business.

Having reviewed the basis of preparation and

the assumptions underlying the cash flow

projections, and assuming that sufficient bank

facilities will remain in place, the Executive Board

of the Authority has concluded that there is a

reasonable expectation that the Authority will be

able to meet its liabilities, as they fall due, for the

foreseeable future. Consequently, the Executive

Board considers it appropriate to prepare the

financial statements on a going concern basis. The

financial statements do not include any adjustment

that would result from the going concern basis of

preparation being inappropriate.

Notes /forming part of the financial statements


Notes /forming part of the financial statements/ continued

b) Property valuations

During 2009, there was a further decline in the

property market, although not as significant as

2008. Arising from this, the financial statements

reflect further decreases in the value of the

property assets held by the Authority, based

on either independent or internal professional

valuations as at 31 December 2009.

Attention is drawn to the risks and uncertainties

associated with the valuation of property assets,

particularly under current market conditions.

Property assets are relatively illiquid. The property

valuations adopted by the Executive Board in

the financial statements have been prepared in

a period of significant market uncertainty. The

current economic difficulties being experienced

in Ireland have resulted in significantly reduced

numbers of property transactions. The resulting

lack of comparable evidence for market values has

decreased the degree of certainty in valuations, as

compared to those in a more stable market with

a normal level of market evidence. The values

ultimately realised from property assets could

be materially different from their balance sheet

carrying amounts. Nonetheless, the Executive

Board has considered the valuation of each of

the significant property assets reflected in the

financial statements as at 31 December 2009, on

the basis of advice from either external or internal

professionally qualified valuers, and has adjusted

the carrying value of property assets. The critical

judgements made by the Executive Board, in

applying accounting policies relating to the

valuation of property assets at 31 December 2009,

held directly or by the joint venture undertaking,

are described in more detail below.

Becbay Limited joint venture undertaking

The Authority holds a 26% shareholding in its

joint venture undertaking, Becbay Limited (Note

11). The main asset of Becbay Limited is the Irish

Glass Bottle development site in Poolbeg, Dublin.

The Authority obtained its own independent

professional valuation on a Market Value basis,

based on a development appraisal of the Irish

Glass Bottle site as at 31 December 2008, in

accordance with RICS/SCS Valuation Standards,

which was performed by Lisney, Chartered

Surveyors. This was further updated by Lisney,

as at 31 December 2009.

The key assumptions used in the valuation as at

31 December 2009 were:

The Draft Poolbeg Planning Scheme will be

approved by the Minister for the Environment,

Heritage & Local Government without undue

delay and there will be no significant alterations

in the adopted plan.

The proposed scheme of development will

comply with the density and use guidelines,

as set down in the Draft Poolbeg Planning

Scheme.

No onerous soil contamination issues exist on

the site.

The standard inputs used in preparing the

residual development appraisal, such as,

inter alia, construction costs, rents, yields and

estimated sales prices, are as at the valuation

date, 31 December 2009.

The independent professional valuation report

concluded that the market value of the Irish Glass

Bottle development site as at 31 December 2009

was 50 million (2008: 50 million). The Authority

has recognised its relevant share of the gross

assets and gross liabilities of Becbay Limited as

at 31 December 2009, resulting in a share of net

liabilities of 75.1 million (2008: 74.7 million)

being reflected in the consolidated balance sheet.

The Authority has also advanced loan stock and

certain other loans to Becbay Limited to part-

fund the development of the Irish Glass Bottle

site. These amounts are unsecured, interest-free

and repayable on demand and are subordinated

to the loans of the secured lenders. These

loans are classified as financial assets, as they

represent a long-term investment in the joint

venture undertaking.


The Executive Board have assessed the

recoverability of these loans from the Authority to

the joint venture undertaking as at 31 December

2009. An impairment provision of 100% against

these loans was made in 2008, resulting in an

impairment charge of 43.0 million in 2008. A

further 4.4 million charge was recognised in

2009 in relation to a full provision against further

funding payable to the joint venture in 2009

relating to the Authority’s share of interest on the

borrowings of the joint venture.

Details of the guarantee arrangements provided

by the Authority in respect of Becbay Limited, are

described in Note 26.


In accordance with the Authority’s accounting

policies, all investment properties had been

externally valued at 31 December 2007 on an open

market value basis by independent professional

valuers. Due to the collapse in the property market

in 2008 and 2009, the Authority obtained revised

professional valuations for all investment properties

as at 31 December 2008 and 31 December

2009. These revised valuations were performed

by either Lisney, independent professional

valuers, or by James O’Hagan MRICS ASCS, a

professionally qualified employee of the Authority.

The valuations were carried out on a Market Value

basis in accordance with the RICS/SCS Valuation

Standards. Yields in relation to the Authority’s

investment property portfolio have moved from a

range of 4% - 6% as at 31 December 2007 and a

range of 6% -10% as at 31 December 2008, to a

range of 6.5% - 10% as at 31 December 2009. The

significant softening of yields since 2007 reflects

the deteriorating occupational market conditions

and the limited number of active purchasers within

the current market.

Impairment losses arising totalled 9.1 million

(2008: 27.9 million), of which 5.1 million (2008:

14.8 million) were recognised in the statement

of total recognised gains and losses (where a

revaluation surplus for those properties had been

previously recorded) and 4.0 million (2008:

13.1 million) were recognised in the income

and expenditure account (for other impairment

losses) (Note 9).

Fixed development assets

Fixed development assets are stated at the lower

of cost and recoverable amount. Recoverable

amounts are determined by reference to the

estimated value of the development asset, given

the Authority’s intended ultimate use.

Due to the further decline in the property market

in 2009, the carrying values and likely ultimate use

of all fixed development assets were reviewed by

the Executive Board as at 31 December 2009.

Professional valuations of these assets, based

on development appraisals, were prepared, on a

Market Value basis as at 31 December 2009, as

defined by the RICS/SCS Valuation Standards,

6th Edition, by either Lisney or James O’Hagan

(see above). Key assumptions used in these

valuations, were as follows:

The residual appraisal method was used to assist

in arriving at the professional opinion of market

value of the development assets, due to the lack

of relevant market activity for development land

at or close to the valuation date.

The yield range used to value the Authority’s

fixed development assets is 7% - 10%, as at

the valuation date.

The other standard inputs used in preparing the

residual development appraisal, such as, inter

alia, construction costs, rents and estimated

sales prices, are as at the valuation date.

The proposed schemes of development used

in the residual development appraisal for each

property reflects the relevant development

control framework and market conditions at

the valuation date.

The valuations arising from the development

appraisals gave rise to an impairment charge for

fixed development assets of 0.3 million (2008:

47.0 million) which has been recognised in the

income and expenditure account (Note 9).



Summary of professional property valuations

The property valuations referred to above, were carried out as at 31 December 2009, on a Market Value

basis, as defined by the RICS/SCS Valuations Standards and are analysed below, by valuer:

2009 2008

Share of current development assets of joint venture ’000 ’000

Irish Glass bottle site

Independent valuation by Lisney 50,000 50,000

Authority’s share (26%) 13,000 13,000


Independent professional valuers - Lisney 24,025 17,500

Internal professional valuer - James O’Hagan 1,893 17,470

25,918 34,970


Independent professional valuer – Lisney 5,100 5,200

Internal professional valuer – James O’Hagan 2,337 2,485

7,437 7,685

Current development assets

In accordance with the accounting policy for current development assets, such assets are stated at the

lower of cost or net realisable value. A full review of such assets was performed as at 31 December 2009

and any necessary impairment was recognised.

Impact on net assets

The Executive Board believes that the Authority has reviewed, in a prudent manner, the value of all

property assets and the loans to the joint venture, as at 31 December 2009 and has made any necessary

provisions, accordingly. The biggest individual impact on the consolidated balance sheet value is the

impairment in the Irish Glass Bottle site, held through the joint venture investment in Becbay Limited.

This leads to consolidated net liabilities of 71.1 million (2008: net liabilities of 48.5 million). The net

assets of the Authority’s own balance sheet, which exclude this impairment, amount to 4.1 million

(2008: 26.2 million).


2 Turnover - continuing operations

2009 2008

’000 ’000

Income earned on disposals of development assets 17,226 18,638

3 Other income

2009 2008

’000 ’000

Levy income 21 7,247

Subsidy income 250 1,051

Rent receivable 1,610 1,525

Service and other income 1,532 2,288

3,413 12,111

4 Cost of sales

2009 2008

’000 ’000

Cost of development assets sold 9,147 5,334

Other direct costs 2,347 3,317

11,494 8,651

5 Operating expenses

2009 2008

’000 ’000

Remuneration and allowances (Note 6) 4,350 4,874

Consultancy fees 325 770

Legal fees 1,143 5,648

Marketing promotion and publicity 590 2,954

Other expenses (Note 7) 2,624 2,865

Bad and doubtful debts 1,734 4,426

10,766 21,537



6 Staff numbers and costs

The average number of persons employed by the Authority, during 2009, was 46 (2008: 55).

The aggregate payroll costs of these persons were as follows:

2009 2008

’000 ’000

Wages and salaries 3,532 3,878

Social welfare costs 268 302

Other pension costs (Note 18) 550 694

4,350 4,874

Executive Board Members’ remuneration

Niamh Brennan - n/a

Donal O’Connor 1 24

Niall Coveney 13 14

Donall Curtin 13 14

Yvonne Farrell 11 n/a

Mark Griffin - -

Brendan Malone 13 14

Catherine Mullarkey 13 14

Sheila O’Donnell 2 14

Niamh O’Sullivan 13 14

Total fees 79 108

Former Chief Executive remuneration

January 2009 – July 2009 inclusive (2008: January – December) 121 191

Payment in lieu of contract to June 2010 128 -

249 191

Acting Chief Executive remuneration

August – December 2009 inclusive 51 -

Executive Board members’ remuneration represents fees paid to non-executive directors, in compliance

with a directive received from the Department of Environment, Heritage and Local Government. No

expenses were paid to Executive Board members in 2009 or 2008.


7 Other expenses

2009 2008

’000 ’000

Facilities expenses 504 649

Administrative expenses 744 1,007

Depreciation and impairment of tangible fixed assets 1,331 1,109

Auditor’s remuneration 45 100

2,624 2,865

8 Area regeneration costs

2009 2008

’000 ’000

Area regeneration costs 5,807 27,627

Area regeneration costs in 2008 included 0.6 million in relation to impairment of tangible fixed assets, due to the nature of use of the particular asset as part of the Authority’s community based initiatives.

9 Impairment of development and investment properties

2009 2008

’000 ’000

Impairment of fixed development assets (Note 15) 315 46,959

Impairment of current development assets (Note 15) 1,190 7,735

Impairment of investment properties (Note 14) 3,976 13,095

5,481 67,789

10 Interest payable

2009 2008

’000 ’000

Interest payable on bank loans 434 263

Other interest 26 139

460 402



11 Joint venture and subsidiary undertakings


Share of Share of Share of Loans to gross gross net assets/ jointGroup assets liabilities (liabilities) venture Total

’000 ’000 ’000 ’000 ’000

Cost

At beginning of year 13,213 (87,914) (74,701) 43,040 (31,661)

Additions in year - - - 4,430 4,430

Share of losses (161) (241) (402) - (402)

At end of year 13,052 (88,155) (75,103) 47,470 (27,633)

Provisions for impairment

At beginning of year - - - (43,040) (43,040)

Impairment in year - - - (4,430) (4,430)

At end of year - - - (47,470) (47,470)

Net book value

At 31 December 2009 13,052 (88,155) (75,103) - (75,103)

At 31 December 2008 13,213 (87,914) (74,701) - (74,701)


Shares in Shares in Loans to subsidiary joint venture joint ventureAuthority undertakings undertaking undertaking

’000 ’000 ’000

Cost

At beginning of year - - 43,040

Additions in year - - 4,430

At end of year - - 47,470

Provisions for impairment

At beginning of year - - 43,040

Impairments in year (Note 1) - - 4,430

At end of year - - 47,470

Net book value

At 31 December 2009 - - -

At 31 December 2008 - - -

The cost of shares in subsidiary undertakings is 259 and the cost of shares in the joint venture undertaking is 26.

Loans to joint venture undertaking, before provisions, comprise:

2009 2008

’000 ’000

Loan stock 32,809 32,809

Other loans 14,661 10,231

47,470 43,040

Loan stock and other loans represent long-term financing provided by the Authority as a shareholder of Becbay Limited, to part-fund the development of its Irish Glass Bottle site. These amounts are unsecured, interest-free and, although repayable on demand, are subordinated to the loans of the secured lenders. They are, therefore, classified as financial assets, representing a long-term investment in the joint venture undertaking. As detailed in Note 1, an impairment charge of 43.0 million was reflected in the income and expenditure account in 2008 in relation to these loans. A further 4.4 million of funding was payable to the joint venture in 2009 in relation to the Authority’s share of interest on borrowings of the joint venture. Full provision against this amount of 4.4 million has been included in the income and expenditure account for 2009.

Details of subsidiary and joint venture undertakings, all of which are included in the group financial statements, are set out overleaf.



11 Joint venture and subsidiary undertakings / continued

Subsidiary undertakings

The Authority holds 100% of the issued share capital (128 ordinary shares of 1 each) in North Wall

Quay/Mayor Street Management Limited. The principal activity of this company is to maintain the

public areas in, about, or relating to the development of land, as defined in the Second Schedule of

the Dublin Docklands Development Authority Act, 1997.

The Authority holds 100% of the issued share capital (128 ordinary shares of 1 each) in Grand Canal

Harbour Management Company Limited. The principal activity of this company is to maintain the

public areas in, about, or relating to the development on the land of the Grand Canal Harbour area,

which is within the Dublin Docklands area, as defined in the First Schedule of the Dublin Docklands

Development Authority Act, 1997.

The Authority holds 100% of the issued share capital (1 ordinary share of 1) in The Jeanie Johnston

(Sailing Ship) Limited. This company did not trade in 2009 or 2008. Application for strike off of this

company has been made to the Companies Registration Office.

The Authority holds 100% of the issued share capital (1 ordinary share of 1) in Custom House Quay

Limited. This company did not trade in 2009 or 2008.

The Authority holds 100% of the issued share capital (1 ordinary share of 1) in Dublin Docklands

Affordable Housing Limited. The principal activity of this company is to provide a mechanism by which

the Authority can provide affordable housing.

Butlers Court (Block B) Management Limited is a subsidiary of the Authority. The company is limited

by guarantee and as such has no share capital. The principal activity of the company is to carry on the

business of a property management company.

The registered office of all the above subsidiary undertakings is 52-55 Sir John Rogerson’s Quay,

Docklands, Dublin 2.


Registered Nature of % holding of

Undertaking office business ordinary shares

Becbay Limited 87-89 Pembroke Road Property 26 Ballsbridge development Dublin 4

In accordance with the requirements of Financial Reporting Standard 9 (FRS 9) “Associates and Joint

Ventures”, the following additional information is given:

The Group’s share of the results, assets and liabilities of Becbay Limited, in which the Group holds a

26% stake, is as follows:


2009 2008

’000 ’000

Group share:

Turnover - -

Loss before tax (402) (74,711)

Taxation - -

Loss after tax (402) (74,711)

Fixed assets - -

Current assets 13,052 13,213

Liabilities due within one year (88,155) (87,914)

Liabilities due after one year or more - -

12 Authority’s income and expenditure account

The Authority has elected not to present a single-entity Authority income and expenditure account.

This is in line with the exemption adopted by incorporated companies presenting consolidated financial

statements under the Companies Acts, 1963 to 2009. The results of the Authority, as a single entity,

are as follows:

2009 2008

’000 ’000




13 Tangible fixed assets

Group and Authority

Fixtures Freehold Marine fittings and land and craft equipment buildings Total

’000 ’000 ’000 ’000

Cost

At beginning of year 3,692 5,565 4,459 13,716

Additions - 21 - 21

At end of year 3,692 5,586 4,459 13,737

Accumulated depreciation

At beginning of year 937 3,930 1,422 6,289

Charge for year 408 746 64 1,218

Impairment in year - - 113 113

At end of year 1,345 4,676 1,599 7,620

Net book value

At 31 December 2009 2,347 910 2,860 6,117

At 31 December 2008 2,755 1,635 3,037 7,427

14 Investment properties

Group and Authority 2009 2008

’000 ’000

At beginning of year 34,970 62,025

Transfer from current development assets (Note 15) - 309

Additions in the year 16 499

Impairment recognised in statement of total recognised gains and losses (Note 19) (5,092) (14,768)

Impairment recognised in income and expenditure account (Note 9) (3,976) (13,095)

At end of year 25,918 34,970


Other properties not recognised in balance sheet

The Authority holds a number of properties which, in accordance with its accounting policies and the

original intentions for those properties, are not reflected in the balance sheet. These properties have either

been fully depreciated within fixed assets, or expensed in total in the financial statements. The Authority

has estimated the market value of these properties, based on internal professional valuations by James

O’Hagan, MRICS ASCS, to be approximately 2.5 million at 31 December 2009 (2008: 2.7 million).

15 Development assets


’000 ’000



Additions in year 67 18,301

Transfer to current development assets - (1,477)

7,752 54,644

Impairment in year (Note 9) (315) (46,959)

At end of year 7,437 7,685

Fixed development assets are stated at the lower of cost and their estimated recoverable amount,

based on the results of professional valuations (see Note 1) as at 31 December 2009. The historical

cost of fixed development assets at 31 December 2009 was 54.7 million (2008: 54.6 million).

2009 2008

’000 ’000

Current development assets


Additions in year 73 12,833

Transfer from fixed development assets - 1,477

Transfer to investment properties (Note 14) - (309)

Transfer to cost of sales (9,006) (4,537)

Impairment in year (Note 9) (1,190) (7,735)

At end of year 15,467 25,590

The Executive Board has reviewed the carrying value of current development assets (see Note 1) as at 31

December 2009 and is satisfied that they are fairly stated at the lower of cost and net realisable value.



16 Debtors


’000 ’000

Trade debtors (net of provisions) 6,191 10,664

Amounts due from joint venture undertaking (Note 25) - 2,711

Accrued income 825 1,484

Prepayments 111 261

Interest receivable - 1

VAT receivable 182 442

7,309 15,563

17 Creditors: amounts falling due within one year


’000 ’000

Bank loan (Note 23) 31,636 15,234

Trade creditors and accrued expenses 17,764 17,539

Amounts due to joint venture undertaking (Note 25) 4,366 2,729

Deferred income 1,410 1,514

Capital accruals 255 18,096

PAYE/PRSI/Withholding Tax 232 160

Other creditors 6,321 6,700

61,984 61,972

The bank loan at 31 December 2009 represents the utilised portion of an unsecured, revolving credit

facility, subject to annual review and renewal. The facility was renewed in March 2010 and security

was granted over certain assets of the Authority. The next scheduled review of this facility is on 31

December 2010.

Other creditors relate to levies invoiced by the Authority on behalf of Iarnród Éireann and the Railway

Procurement Agency. These levies are excluded from the Authority’s income and expenditure account,

as the Authority has no entitlement to any of this income and merely collects it on behalf of, and remits

to, Iarnród Éireann and the Railway Procurement Agency.


18 Pensions

The Authority operates two unfunded defined benefit pension schemes: the Dublin Docklands

Development Authority Superannuation Scheme, 2000 and the Dublin Docklands Development

Authority Spouses and Children’s Pension Scheme, 2000.

The Authority accounts for pensions in accordance with FRS 17 “Retirement Benefits”.

The pension obligations of these schemes under FRS 17 have been assessed in accordance with the

advice of an independent qualified actuary. An actuarial assessment is carried out annually.

The main financial assumptions used by the actuary were:


Valuation method Projected unit Projected unit

Discount rate (based on AA Corporate bond yields) 5.5% 6.0%

Rate of increase in salaries and pensions in payment 3% 3.5%

Inflation assumption 2% 2.5%

Life expectancy

Current Male member (at age 65) 20.8 20.8

Current Female member (at age 65) 23.7 23.7

Future Retirees Male member (at age 65) 21.5 21.5

Future Retirees Female member (at age 65) 24.4 24.4

2009 2008

’000 ’000

As the scheme is unfunded, there are no assets.

Present value of unfunded obligations 6,460 6,525

Change in benefit obligation 2009 2008

’000 ’000

Benefit obligation at beginning of year 6,525 7,330

Current service cost (Note 6) 550 694

Members’ contributions 163 162

Interest on pension scheme liabilities 387 400

Actuarial gain (1,102) (1,951)

Benefits paid (63) (110)

Benefit obligation (unfunded) at end of year 6,460 6,525



18 Pensions / continued

Components of pension expense

2009 2008

’000 ’000

Current service cost (Note 6) 550 694

Interest cost on pension schemes’ liabilities 387 400

Total pension cost recognised in income and expenditure account 937 1,094

Actuarial gains immediately recognised 1,102 1,951

Total pension gain recognised in statement of totalrecognised gains and losses (“STRGL”) 1,102 1,951

Cumulative amount of actuarial gains immediately recognised 2,702 1,600

History of experience adjustments

2009 2008 2007 2006 2005

’000 ’000 ’000 ’000 ’000

Experience gains/(losses) on schemes’ liabilities 1,188 130 136 (159) (132)

Percentage of the present value of

schemes’ liabilities 18.4% 2.0% 1.9% 2.4% 2.1%

Total actuarial gains/(losses) 1,102 1,951 290 271 (447)

Percentage of the present value of

schemes’ liabilities 17.1% 29.9% 4.0% 4.0% 7.2%

History of scheme deficits

Present value of schemes’ liabilities 6,460 6,525 7,330 6,732 6,215

Net pension liability 6,460 6,525 7,330 6,732 6,215


19Revaluation surplus


’000 ’000


Unrealised revaluation deficit on investment properties (Note 14) (5,092) (14,768)

At end of year 5,801 10,893

20Reconciliation of operating deficit to net cash inflow / (outflow) from

operating activities

2009 2008

’000 ’000

Operating deficit (12,909) (94,855)

Depreciation 1,218 1,109

Impairment of tangible fixed assets 113 639

Impairment of development and investment properties 5,481 67,789

Amounts transferred to cost of sales from development assets 9,006 4,537

Decrease /(increase) in debtors 5,542 (2,598)

Movement in short-term loans to joint venture undertaking 2,711 (2,711)

Increase in creditors 1,451 5,349

Increase in pension provision 650 746

Net cash inflow/(outflow) from operating activities 13,263 (19,995)

21Payments for fixed development assets

Included in the 2009 payments for fixed development assets, is a payment of 17.4 million relating to

an asset which was acquired in 2008, and treated as an acquisition in the 2008 financial statements.



22Reconciliation of net cash flow to movement in net (debt)/funds

2009 2008

’000 ’000

(Decrease) / Increase in cash for the year (3,044) 10

Increase / (Decrease) in liquid resources 9,832 (26,880)

Increase in debt (16,000) (15,000)

Change in net debt resulting from cash flows (9,212) (41,870)

Non-cash movements (402) (234)

Movement in net debt in the year (9,614) (42,104)

Net (debt) / funds at beginning of year (11,773) 30,331

Net debt at end of year (21,387) (11,773)

23Analysis of net debt

At 31 Non At 31

December Cash cash December

2008 flows movements 2009

’000 ’000 ’000 ’000

Cash 3,461 (3,044) - 417

Liquid resources – term deposits - 9,832 - 9,832

3,461 6,788 - 10,249

Debt due within one year (Note 17) (15,234) (16,000) (402) (31,636)

Net debt (11,773) (9,212) (402) (21,387)

Non-cash movements represent rolled-up interest on bank borrowings.


24Commitments

Capital commitments

As part of its general duty under Section 18 of the Dublin Docklands Development Authority Act, 1997,

the Authority continues to provide for improvement in the physical environment in the Dublin Docklands

area. In this regard, future capital commitments (including Area Regeneration) approved by the Executive

Board, but not provided for in the financial statements, are as follows:

2009 2008

’000 ’000

Contracted - 3,700

Authorised but not contracted 6,350 11,035

6,350 14,735

25Related party disclosures and Executive Board members’ interests

Transactions with related parties, as defined by Financial Reporting Standard 8 (FRS 8) “Related Party

Disclosures” (excluding subsidiary undertakings) are shown below:

2009 2008

Becbay Joint Venture ’000 ’000

Long-term interest-free loan to joint venture (Note 11) 47,470 43,040

Provision for impairment of above loan (Note 11) (47,470) (43,040)

- -

Short-term, interest-free loan to joint venture (Note 16) - 2,711

Amounts due to joint venture undertaking (Note 17) (4,366) (2,729)

Funding payable to the joint venture during 2009 totalled 4.4 million, against which a provision of 4.4

million is reflected in the 2009 income and expenditure account.

The group has availed of the exemption under FRS 8 from disclosing transactions with its subsidiary

undertakings.

Details of the Group’s joint venture undertaking are set out in Note 11.



25 Related party disclosures and Executive Board members’ interests /

continued

There were also a number of other transactions, in which members of the Executive Board had an

interest, as follows:

Consultancy services were provided by O’Donnell + Tuomey Architects. Sheila O’Donnell, who with

her close family, has a controlling interest in O’Donnell + Tuomey Architects, was a member of the

Executive Board, until February 2009. Amounts payable to O’Donnell + Tuomey Architects for services

up to February 2009, were 0.1 million (2008: 0.2 million). No amounts were outstanding as at 31

December 2009 (2008: Nil).

Internal audit and consultancy services were provided by PricewaterhouseCoopers during 2009,

amounting to 0.1 million (2008: 0.1 million). Donal O’Connor, a partner in PricewaterhouseCoopers

during 2008, was also Chairman of the Executive Board, during 2008 and 2009. Donal O’Connor

resigned from his position as Chairman in January 2009. 0.003 million was outstanding as at 31

December 2009 (2008: 0.01 million).

Consultancy services were provided by Ove Arup and Partners Ireland (trading as Arup Consulting

Engineers). Niamh O’Sullivan, a director of Arup Consulting Engineers, is also a member of the Executive

Board. Amounts payable to Arup Consulting Engineers for services in 2009 amounted to 0.1 million

(2008: 0.2 million). No amounts were outstanding as at 31 December 2009 (2008: Nil).

Consultancy services were provided by Grafton Architects. Yvonne Farrell, a director of Grafton

Architects, is also a member of the Executive Board from March 2009. Amounts payable to Grafton

Architects for services in 2009 amounted to 0.001 million (2008: 0.02 million). No amounts were

outstanding as at 31 December 2009 (2008: Nil).

In common with many other Government and state bodies, the Authority deals, in the normal course

of business, with a range of other Government and state bodies.

26Contingent liabilities

Joint venture guarantee – Authority

The Authority has guaranteed bank borrowings of its joint venture undertaking, Becbay Limited, up to

an amount of 29.1 million plus a 26% share of any interest, incurred and to be incurred on the existing

loan facilities of Becbay Limited during the term of those facilities. The validity of this guarantee is under

review by the Authority and its legal advisors. This contingent liability is not reflected in the Authority’s

balance sheet. Having already accounted for the share of the net liabilities in Becbay Limited, no

separate additional provision is required for this matter in the consolidated balance sheet.

Legal matters – Group and Authority

The Authority has contingent liabilities in respect of certain legal matters, as at 31 December 2009.

The Executive Board believe that these will be successfully defended and will not result in material

liabilities for the Authority.


27Taxation

Under the provisions of Section 220 of the Taxes Consolidation Act, 1997, the Authority is exempt from

corporation tax. It is also exempt from capital gains tax under Section 610 of the Taxes Consolidation

Act, 1997.

28Subsequent events

The Authority’s banking facility (see Note 17) was renewed in March 2010 and security was granted

over certain assets of the Authority.

29Approval of financial statements

The financial statements were approved by the members of the Executive Board on 24 May 2010.


Attendance at Council and Community Liaison Committee (CLC) meetings during 2009

Council CLC

A B A BNiamh Brennan 5 4

Dónall Curtin N/A N/A 12 11

Malcolm Alexander 5 4

Betty Ashe 5 5 12 11

Denise Brophy 5 2

Greg Clarke 5 3

Enda Connellan 5 0

Cllr. Emer Costello 5 4

Cllr. Daithí Doolan 5 0

Willie Dwyer 5 1 12 8

Gerry Fay 5 5 12 11

Niall Grogan 5 0

John Henry 5 4

Cllr. Kevin Humphreys 5 4

Seanie Lambe 5 5 12 10

Cllr. Ray McAdam 5 2

Oilbhe Madden 5 4 12 7

Charlie Murphy 5 3 12 8

Geraldine O’Driscoll 5 2 12 10

Deaglán O Briain 5 2

Cllr. Claire O’Regan 5 2

Cllr. Aodhán Ó Ríordáin 5 0

Cllr. Nial Ring 5 3

Fionnuala Rogerson 5 3

Deirdre Scully 5 3

Maurice Scully 5 3

Cllr. Tom Stafford 5 1

Margaret Sweeney 5 0

John Tierney 5 2

David Walsh 5 1

Liam Whelan 5 2

Dolores Wilson 5 5 12 9

A - number of meetings held. B - number of meetings attended.

The Council met 5 times during the period of the Report.

The Community Liaison Committee (CLC) met 12 times during the period of the Report.

The CLC is chaired by Dónall Curtin, Executive Board Member.

Council Membership

Maurice Scully, Bord Gáis Éireann,

replaced John Boylan on 28 January 2009.

Deaglán O Briain, Department of

Community, Rural and Gaeltacht Affairs,

replaced Colm Treanor on 28 January 2009.

Greg Clarke, Dublin Chamber of

Commerce, replaced Margaret Sweeney

on 21 May 2009.

Cllr. Nial Ring, Cllr. Claire O’Regan and

Cllr. Ray McAdam, Dublin City Council,

replaced Cllr. Aodhán Ó Ríordain, Cllr.

Daithí Doolan and Cllr. Tom Stafford on

20 July 2009.

David Walsh, Department of the

Environment, Heritage and Local

Government, replaced Liam Whelan

on 7 September 2009.



Notes

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