Dublin Docklands Development Authority publishes Annual Report for 2009
Wednesday 28th July 2010. The Dublin Docklands Development Authority has today published its Annual Report and Accounts for 2009.
The financial information in the document confirms that [figures rounded]:
- Significant progress has been made in tackling the Authority's operating deficit. On an operating basis before impairments, the deficit of the Authority for 2009 was €7.4 million [down from €27 million in 2008].
- At the end of 2009, the Docklands Authority faced impairments, losses and other writedowns on its various property assets of €10.3 million [2008: €186 million]. [This figure includes its 26% stake in Becbay Ltd. which purchased the Irish Glass Bottle site]
- Combining the operating loss and impairment losses [and other writedowns], the Docklands Authority ended 2009 with a deficit in its consolidated income and expenditure account of €18.6 million [2008: deficit of €213 million]. The consolidated income and expenditure account includes the Docklands Authority's share of the liability of Becbay Ltd.
- At the end of 2009, the Docklands Authority had net assets in its own single entity balance sheet of €4 million [2008: net assets of €26 million].
- At the end of 2009 the Authority had a net deficit in its consolidated balance sheet of €71 million [2008: net deficit of €48.5 million]. [The consolidated balance sheet includes the Docklands Authority's share of the liability of Becbay Ltd.]
Progress on Financial Performance but Regret at Continuing Deficit
The Chairman of the Docklands Authority, Professor Niamh Brennan, was appointed to the position in March of 2009. Speaking today she said that while good progress was made in stabilising the day-to-day financial performance of the Authority during 2009, she regretted that the Authority had not yet met its objective of operating at breakeven; "On behalf of the Executive Board, I would like to apologise for the fact that we're not yet at breakeven. We will redouble our efforts to achieve this challenging target."
As part of its financial recovery plan, the Authority has reduced the numbers employed by approximately 58% [from 64 employees in early '09 to 27 employees now].
Legacy of Past Decisions Continues to Overshadow Work of Authority
Professor Brennan said that the Authority's work continued to be overshadowed by the legacy of past decisions - in particular the Authority's investment in the Irish Glass Bottle Site; "Clearly, these decisions have had an enormous detrimental impact on our operations and on our financial position in particular."
Strong Progress in Addressing Corporate Governance Issues
Professor Brennan said that significant progress has been made in addressing past failures in corporate governance at the Authority; "there is zero tolerance for any compromise on corporate governance issues. We cannot undo controversial decisions of the past, but we can and will make sure such mistakes are never repeated."
Commitment to Rebuilding Public Confidence
Professor Brennan acknowledged that public confidence in the Authority has been seriously undermined; "It is hugely regrettable that the many excellent achievements of the Authority have been undermined as a result of well publicised controversies. My colleagues and I on the Executive Board are committed to doing all in our power to regain trust in the Authority which was so seriously undermined in recent years. Our guiding mission remains to complete the Docklands project for the community of the area and for taxpayers generally and we are determined to successfully finish out this project."
Current Financial Position
Professor Brennan said that the Authority continued to address its financial weakness; "Our first priority must be to live within our means on a day-to-day operating basis and we are determined to achieve this as quickly as possible."
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