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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.
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15DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
16 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
17DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
18 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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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Acting Chief Executive’s Review/ continued
19DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
20 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
Acting Chief Executive’s Review/ continued
21DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
22 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
Acting Chief Executive’s Review/ continued
Dublin Bikes Scheme
23DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
24 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
Acting Chief Executive’s Review/ continued
25DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
26 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
Acting Chief Executive’s Review/ continued
27DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
28 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Report of the Executive Board and Financial Statements
29DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
30 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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)
31DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
32 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
33DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
34 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
Report of the Executive Board/ continued
35DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
36 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
Report of the Executive Board/ continued
37DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
38 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
Report of the Executive Board/ continued
39DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
40 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
Prof. Niamh Brennan Niall Coveney
Chairman of Executive Board Director of Executive Board
41DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
42 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
43DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
44 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
45DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
46 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
47DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
48 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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)
On behalf of the Executive Board
Prof. Niamh Brennan Niall Coveney
Chairman of Executive Board Director of Executive Board
49DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Consolidated statement of total recognised gains and losses
for the year ended 31 December 2009 Note 2009 2008
’000 ’000
Deficit for the year (18,558) (212,908)
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)
50 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
Development assets 15 15,467 25,590
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)
On behalf of the Executive Board
Prof. Niamh Brennan Niall Coveney
Chairman of Executive Board Director of Executive Board
51DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
52 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
Development assets 15 7,437 7,685
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
Development assets 15 15,467 25,590
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
On behalf of the Executive Board
Prof. Niamh Brennan Niall Coveney
Chairman of Executive Board Director of Executive Board
53DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
54 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
55DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
Investment properties
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).
56 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
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
Investment properties
Independent professional valuers - Lisney 24,025 17,500
Internal professional valuer - James O’Hagan 1,893 17,470
25,918 34,970
Fixed development assets
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).
57DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
58 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
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.
59DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
60 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
11 Joint venture and subsidiary undertakings
Joint venture undertaking
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)
61DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
62 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
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.
Joint venture undertaking
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:
63DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
Deficit for the year (18,156) (138,197)
64 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
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
65DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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
Group and Authority 2009 2008
’000 ’000
Fixed development assets
At beginning of year 7,685 37,820
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
At beginning of year 25,590 23,861
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.
66 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
16 Debtors
Group and Authority 2009 2008
’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
Group and Authority 2009 2008
’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.
67DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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:
Group and Authority 2009 2008
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
68 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
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
69DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
19Revaluation surplus
Group and Authority 2009 2008
’000 ’000
At beginning of year 10,893 25,661
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.
70 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
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.
71DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
72 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes /forming part of the financial statements/ continued
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.
73DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
74 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
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.
75DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
76 DUBLIN DOCKLANDS DEVELOPMENT AUTHORITY ANNUAL REPORT AND ACCOUNTS 2009
Notes