The site of the former Irish Glass Bottle plant, Ringsend, Dublin (within red contours). It was purchased at the peak of the boom in 2006 for €412 million, by a consortium led by developer Bernard McNamara and including State agency, the Dublin Docklands Development Authority . In the same year, Ireland's biggest bank AIB, sold part of its Dublin headquarters, the Bank Centre, to developer Seán Dunne.

The insolvent State agency, the Dublin Docklands Development Authority, today published its 2008 financial results and plunged to a massive loss of €213 million mainly arising from a writedown of its investment in the Irish Glass Bottle site, which dates from 2006 -- the peak year of the Irish property bubble. The DDDA chairman has signalled a taxpayer bailout of the agency after a reckless venture in property speculation.

On what is termed an "operating basis" before impairments, the DDDA had a deficit of €27 million in 2008 compared with a surplus of €3 million in 2007.

At the end of 2008, the agency faced impairments, losses and other writedowns of €186 million, on its various property assets including its 26% stake in the vehicle,  Becbay Ltd., which purchased the Irish Glass Bottle site.

Combining the operating loss and impairment losses and other writedowns, the agency ended 2008 with a deficit in its consolidated income and expenditure account of €213 million [2007: surplus of €3.7 million]. The consolidated income and expenditure account includes the share of the liability of Becbay Ltd.

At the end of 2008, the DDDA had net assets in its own single entity balance sheet of €26 million [2007: net assets of €177 million]. The agency had net liabilities in its consolidated balance sheet of €48.5 million [2007: net assets of €177 million] - -  making the agency technically insolvent.

SEE: Finfacts article: Irish Glass Bottle Site: How the State purchased property it already owned!

The DDDA chairman Professor Niamh Brennan, was appointed to the position in March of this year. Speaking today she said due to the collapse of the Irish property market during 2008 and with it the value of the assets held by the agency, has posed huge problems for the organisation.

Describing 2008 as “an exceptionally difficult year,” she said that the DDDA now has to adjust to what is essentially a “new business model … which will result in a more conservative approach to progressing our mandate resulting in a delay in completion of many projects and cancellation of some programmes.”

Brennan said that the agency has made significant progress in addressing its financial problems. In respect of operating costs, it is estimated that the deficit the agency will record this year will be “substantially” lower than in 2008. And in respect of impairments and writedowns on property assets.

In respect of the overall financial position, Brennan said; “Despite the steps we’re taking, the situation is clearly very serious. However, with financial support from the Government and with a radically different approach to the job in hand, the board believes that the project can be restored to financial health and our mandate completed.”