It is my pleasure to introduce Second Stage of the Dublin Docklands Development Authority (Dissolution) Bill 2015 to the Seanad, which provides for the dissolution of the Dublin Docklands Development Authority and the transfer of its functions to Dublin City Council which will guide the future development of the area in partnership and collaboration with local stakeholders. The Bill also provides for the establishment of an oversight and consultative forum to ensure that the views of interested parties in the docklands area will be recognised and considered in any future development of the area.
Until the 1960s, the docklands area had been a vibrant port for Dublin during the preceding two centuries and serviced the import and export functions of the capital and, more widely, the country. As a thriving port, it engendered the usual port related industries such as boat building, chandlery, rope making and other ancillary trades. It also contributed to the establishment of other industries such as grain-milling and storage, coal and fuel distribution, metal foundries and warehousing, among many more. This gave rise to inner city employment and the establishment of an indigenous community. Regrettably, in those times, the standard of housing and accommodation for the residents of docklands reflected the generally poor conditions which prevailed among the working classes in the city. Notwithstanding this, the area had a rich cultural tradition which contributed to the unique character of Dublin, reflected in music, literature and other art forms from those times.
The decline in docklands generally in the 1960s can be attributed mainly to two factors. Freight containerisation led to the lessening of the need for manpower at quayside and the need for deep-water facilities to service the increasing tonnage of the new vessels. Also, the demand for improved living standards led to the provision of better housing in the new suburbs on the outskirts of the city. Through this population shift, the inner city population in the 20th century shrank by more than 50% and most of the indigenous industries also relocated, mainly for reasons of access to the outskirts also. The Dublin docklands area went into decline and by the 1980s, many parts of it had become rather run down and abandoned.
The Custom House Docks Development Authority was set up in 1986 in order to stimulate development on the north side of the docklands area. Utilising a range of financial incentives, over the course of its ten year existence, it facilitated considerable office and residential development in the Custom House Quay area, most notably the establishment of the International Financial Services Centre, IFSC, which now comprises 111,500 sq. m and employs close to 5,000 people.
In order to widen the scope of the development of the entire docklands area, the Dublin Docklands Development Authority was established under the Dublin Docklands Development Authority Act 1997. Covering a much larger area extending to both sides of the River Liffey, it was responsible for the sustainable social, economic and physical regeneration of the docklands, in addition to the continued development of the financial sector of the economy and was required to prepare a master plan for achieving these objectives.
Central to this strategy was the use of fast-track planning under section 25 of the Act which allowed for a shortening of the timeframes for development approval, aligned with the masterplan and local planning schemes. This allowed for the integrated and sustainable development of a once neglected area of the city, with appropriate levels of community input and, as a consequence, substantial community gain.
The input of various elements of the residential and business communities, as well as State entities with an interest in docklands, was facilitated through the docklands council which considered the development of docklands and the inter-relationships that existed between them. Comprising community representatives, local elected officials, and representatives from business, education, and other bodies, the voices of all were heard. Further evidence of the commitment to local communities can be seen in the establishment of a docklands community housing trust which was set up to administer social housing provision for the indigenous docklands population and has 72 housing units which it allocates within its remit. I am pleased to confirm that the housing trust will continue this worthwhile endeavour under the new arrangements, with support from the housing division of Dublin City Council.
Additionally, a docklands community trust was established and was allocated funds on an incremental basis to invest in initiatives, supports and schemes to the benefit of the community. Currently that fund stands at €1.3 million and over the years the trust has used its income investments to finance community initiatives, most notably in the area of higher education grants. I am pleased to say that the trust will continue to play this vital support role, through the new docklands oversight and consultative forum, which will come into being under this dissolution Bill.
The DDDA has contributed greatly to the redevelopment of the docklands environment over the years. Since its inception in 1997, what was once a derelict part of the city has been transformed into a vibrant neighbourhood and progressive economic area, housing some of the most prestigious international and domestic companies. Of the original 89 hectares encompassed by the IFSC, North Lotts and Grand Canal Dock areas, 67 hectares have been redeveloped, with the 22 hectares remaining now subject to the successor to the fast-track planning mechanism of the Dublin Docklands Development Authority Act, the recently approved strategic development zone, SDZ, which came into force in May 2014. Most of the indigenous port-related industries have been replaced and the area is now a hive of activity, mainly international finance, thanks to the establishment and evolution of the IFSC, and of major international IT companies.
There has been a significant social regeneration of the area and the vibrant local community is central to its continuing development. Under the projections for its development, the population is expected to swell by almost 6,000 in the coming years. Through the involvement of representatives on the docklands oversight and community forum as well as of local public representatives on Dublin City Council, their interests will continue to be recognised and nurtured. The area has also become a hub for the entertainment sector with a number of spectacular venues playing host to domestic and international talent. In general, it can be said that what was once a rundown area of Dublin has been transformed into a modern and remodelled living environment.
The economic crash which hit the economy in 2008 was chiefly generated by an overheated building and property sector. Just as a rising tide lifts all boats, so too does an ebbing tide see them all lower again, and the Dublin Docklands Development Authority was no exception. The misfortune which befell the sector also saw it suffer significant losses, on projects which had seemed like "blue ribbon" investments back in the heady days of the development boom. Following consideration of a special report on the Dublin Docklands Development Authority prepared by the Comptroller and Auditor General and the authority's own 2011 annual report and financial statements, the Government made the hard but correct decision that the authority should be wound up, and that the future responsibility and co-ordination of activity in the area should revert to Dublin City Council.
Elements of the Comptroller and Auditor General's special report made for grim reading, particularly those relating to the authority's assessment and decision-making processes surrounding its decision in 2006 to become involved in the purchase of the former Irish Glass Bottle site, an episode which has cost the authority €52 million, not to mention the associated reputational damage. The reality emerging in 2012 was that the authority's financial position was inevitably going to remain very challenging given the economic downturn and the stressed state of the property market, from which the Dublin Docklands Development Authority has historically derived its main revenues. Taking all of these factors into account, the inescapable conclusion was that a stand-alone Dublin Docklands Development Authority was no longer viable, financially or otherwise. The Government decided on 29 May 2012 that the authority should be wound up.
In taking this decision the Government was acutely aware of the need to maintain and build on the good work of the authority. The Government remains fully committed to the continued regeneration of the Dublin docklands. A number of key objectives were central to the process of finalising appropriate arrangements for ensuring a continued, concerted focus on the docklands regeneration initiatives, these were: maintaining and enhancing the docklands brand and international marketability as an attractive and prime location for investment and high-value development; providing for an appropriate set of "fast-track" planning procedures; continuing to involve the local community and the business sector in the regeneration project; and facilitating job creation. The Government decided that Dublin City Council is best placed to continue the visionary docklands project and its future development will, therefore, be part of the integrated forward planning of Dublin city as a whole within the remit of Dublin City Council.
I turn to the Bill before this House and its key provisions. As the wind-up process of the Dublin Docklands Development Authority took effect, it became clear that significant primary legislation would be needed to resolve many of the outstanding issues and ensure the continued development of the docklands area. The Bill is divided into 5 Parts. Part 1 deals with standard legislative provisions including citation, commencement, definitions, regulations and expenses of the Minister. Part 2 deals the dissolution of the authority. Part 3 deals the matters that will apply following the dissolution of the Dublin Docklands Development Authority and the transfer of its functions to Dublin City Council. Part 4 deals with the planning and development matters. Part 5 deals with the establishment of the docklands oversight and consultative forum. The Bill went through a very thorough pre-legislative scrutiny process by the Oireachtas Joint Committee on Environment, Culture and the Gaeltacht. This was a very useful process and I have endeavoured to incorporate many of its recommendations into the Bill.
Within Part 1 of the Bill, section 1 contains the usual provisions of a general nature dealing with such matters as Short Title, collective citation and commencement. Section 2 provides the definitions used throughout the Act and deals with matters such as defining the Dublin docklands area, the masterplan, the dockland planning schemes and public authority among others. Sections 3 and 4 contain standard legislative provisions in relation to such matters as regulations and expenses of the Minister.
Part 2 of the Bill, sections 5 and 6, provides for the dissolution of the authority on a day to be appointed by the Minister and provides that the Authority shall stand dissolved on the appointed dissolution day.
Part 3 of the Bill, sections 7 to 15, inclusive, provides for the seamless transition of functions and transfer of certain liabilities and assets to Dublin City Council. It is important that the development and oversight of the docklands area continues uninterrupted and that the momentum that has come back into the economy in recent years is harnessed to deliver impetus to the area. In recent years, with a recovering economy and strong demand for city centre premises, interest in the docklands area has reignited and there are tangible signs of a rebound.
When the decision was made to dissolve this authority in 2012, it was important to do so in a structured manner. The Dublin Docklands Development Authority executive board devised a transition plan for an orderly wind-up of the company, allowing it to reduce its staffing level from 55 at its peak to one in recent years. All of the permanent staff either retired or were redeployed to other public bodies, and their contingent pension liabilities have been calculated and are proposed to be transferred to Dublin City Council under section 14. Latest estimates from the authority put the pension liability at around €7 million to €8 million.
Managing this transition was overseen initially by consultant administrators and latterly by the newly-formed docklands unit of Dublin City Council. This transfer of functions to Dublin City Council is provided for under section 7.
As with all entities, there are always some outstanding issues of a legal and financial nature that need to be addressed, resolved or provided for as they may arise in the future and while stringent efforts have been made to resolve these prior to dissolution, if unresolved then provision has been made in the Bill for them to transfer to Dublin City Council under sections 9 and 10. Specifically, section 8 transfers all property and land from the authority to the council on dissolution day. Of primary concern for the Government was that this process should not require any substantial Exchequer intervention and an orderly asset disposal strategy would ensure that optimum value was realised on the authority's assets on hands.
Part 4, sections 16 to 36, inclusive, of the legislation deals with outstanding and future planning matters. The planning schemes under the docklands master plan are being discontinued, as is the master plan itself, as set out under section 16. Section 17 further provides that the authority will no longer accept applications under the planning schemes.
One of the main priorities for Government, having decided to wind up the authority, was to ensure that there was continued access to an appropriate and an effective fast-track planning system. To fulfil this objective, the Government decided in 2012 that a strategic development zone would be established for the docklands area. The docklands SDZ planning scheme was approved by An Bord Pleanála in May last year and is now fully operational and allows for the rapid processing of applications which conform to the overall planning scheme now in place in the area.
Sections 18 to 27, inclusive, propose the putting in place of a robust system to deal with residual planning issues. For example, under section 20 planning certificates which had been granted under section 25 of the Dublin Docklands Development Authority Act 1997 will now cease to be valid if the developments covered by them have not been substantially commenced at dissolution day. Section 25 certificates which are deemed to be substantially commenced but are currently incomplete when the enacted Bill provisions are commenced will be granted an appropriate period of two years in which to finish out the development. In what would be deemed exceptional circumstances, provision is also made under section 23 to extend the appropriate period of two years by a further period, not exceeding three years, to allow for completion of the development covered by the section 25 certificate. This extension would be granted on the basis that there were considerations beyond the control of the applicant and which prevent completion within the appropriate period. My officials have established that the outstanding uncompleted section 25 certificates are few in number and minor in scale and I do not envisage there being a great demand for extensions to the appropriate period of up to three years.
It is encouraging to note that new applications for development projects in the docklands are being made under the new SDZ provisions which I outlined. To further ease the transition to the new planning schemes, we have made provision in section 28 to allow applications under section 34 of the Planning and Development Act 2000 covering the elements of developments not completed under section 25 certificates while retaining those parts that are validly completed, subject to their satisfying the application criteria.
One of the key drivers of the regeneration of this part of the city was to arrest the decline in economic activity and to reverse the depopulation of docklands which had resulted from factors, which I outlined. A vibrant community is the beating heart of any neighbourhood and the remaining population in these environs are both proud and supportive of their area. The 1997 Act established a docklands council which included representatives of local communities, public representatives for the vicinity and the economic and business community as well as delegates from public bodies with a remit relevant to the docklands area. A collaborative approach to identifying and addressing problems and issues affecting the community allowed for the docklands council to give valuable feedback to the DDDA regarding the ongoing development of the area as well as having a key role in shaping the five-yearly master plans.
It is equally important that the entities which exist in the docklands area continue to assist in shaping the future direction of the development of this part of the city. To this end, Part 5 provides for a docklands oversight and consultative forum in sections 37 to 49, inclusive, which will continue the valuable collaborative input that its predecessor, the docklands council, has made. Section 34 provides for the membership of the forum, which will be similarly structured to the council and will have 21 members and an independently appointed chair. It is proposed that community representatives will have five members with four locally elected representatives, five members from the docklands business community, five members from public authorities with a remit in docklands, one member representing the educational sector and an officer of the council. Its role will be pivotal in advising Dublin City Council and others on the best strategies to preserve the rich heritage of the area, the most appropriate policies to pursue in economic regeneration and the most valuable input in shaping the docklands as a vibrant and sustainable living space. This vision will be brought into being by legislatively underpinning the functions of the docklands consultative forum. Section 38 provides for the functions of the forum, which is to consider and advise the council and its strategic policy committees in regard to the formulation, development, monitoring and review of the council's policies as they apply to the docklands area and specifically in relation to: enterprise and employment; education; housing; planning; environment; and community. The consultative forum has a wide-ranging but important brief and I expect the city council to work closely and co-operatively with the forum to enhance the conditions and environment of the residents in the docklands area. The proposed future regeneration of the area could see its resident population swell by more than 5,800 which will present both challenges and opportunities for all its inhabitants in time.
One of the main drivers for the welfare of a community is employment and fair incomes. The SDZ envisages that the development of the remaining docklands areas will give a much needed boost to job creation in the area. In the construction phase and the provision of ancillary services, it is anticipated that local people will gain from the opportunities that will inevitably arise. The use of local employment clauses, although not part of the Bill, will be encouraged and advanced by Dublin City Council. The projections for long-term employment suggest that when completed, the docklands area will sustain an increase of 23,000 jobs. One of the aspects of docklands which has not been adequately harnessed in the past is its immense historical, cultural and artistic heritage. The maritime, industrial and cultural traditions of docklands afford us an opportunity to preserve this heritage and share it with visitors and locals alike. In recent months, my Department has facilitated harnessing heritage audit to explore ways to preserve this resource and to harness its tourism and commercial potential. What was once a derelict and forgotten part of the city may in time become one of its premier attractions.
My colleagues and I in government foresee a bright future for the docklands area and hope that in time, the process which we have put in train with this Bill will bear handsome rewards for us all. The regeneration of the area will lead to a more appealing cityscape, a more pleasant living space and increased prosperity for all. Within the context of the Dublin city development plan, it will play a pivotal role in the improving economic situation for the capital and the country as a whole. I commend the Bill to the House.
