McCaughey to quit as head of DDDA

The head of the Dublin Docklands Development Authority, businessman Gerry McCaughey, dramatically quit tonight amid criticisms regarding tax avoidance.

The head of the Dublin Docklands Development Authority, businessman Gerry McCaughey, dramatically quit last night amid criticisms regarding tax avoidance.

The Monaghan-born former owner of Century Homes was only appointed to the DDDA board by the Green Party's Environment Minister John Gormley at the start of the month.

He announced his resignation after it emerged he took advantage of a loophole slashing his tax liability when he sold Century four years ago.

While Mr McCaughey said his actions were perfectly legal, he claimed it would be almost impossible for him to operate as effectively as he would hope as DDDA chairman.

Mr Gormley last night night said he spoke by telephone to Mr McCaughey, who is currently in the US, and insisted that he accepted Mr McCaughey's assurances that he acted in good faith at all times.

"In his short few weeks as chairman he impressed people with the interest, dynamism and enthusiasm he brought to the role of chairman," said Mr Gormley.

"His appointment was widely welcomed, including by politicians of various political backgrounds, and his competence to take on the major challenges which came with the job was never called into question."

"I spoke to Mr McCaughey on phone this evening. He impressed upon me that he had broken no law and acted at all times in good faith.

"I fully accept that, as I have found him to be a sincere and honest person.

"I would like to thank him sincerely for the contribution he made and the commitment he showed in taking on this challenging role."

Earlier, Labour leader Eamon Gilmore called for loopholes for tax exiles to be shut down but Taoiseach Brian Cowen said changes to the laws regulating capital gains tax had been amended in 2006.

Mr McCaughey reportedly sold Century to Kingspan in 2005 for almost €100m.

The Monaghan-born businessman resigned as chief executive of Kingspan in January last year.

He succeeded Donal O'Connor as DDDA chairman, who stepped down from the position last December following his appointment as the new chairman of Anglo Irish Bank.

Mr McCaughey was an unsuccessful general election candidate for the Progressive Democrats in Cavan-Monaghan in 2002.