Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Deputy for raising this question. The decision in the late 1990s to establish the Digital Hub project in the Liberties was made in the light of the success of other digital enterprise clusters around the world. The initiative was an important element of Government policy to develop Dublin as a location for digital enterprise. The DHDA was established in 2003 as a statutory body to oversee the Digital Hub project and it played a key role in the early days of Dublin's development as a location for digital enterprise. Since 2003, there have been many positive developments in the wider policy and economic environment that have seen Dublin develop as a significant European hub for digital enterprise, with developments throughout the city, most notably in the digital docklands in Dublin 2. We have only to look across the river to see all the large technology companies that have located in Dublin as a result.

With this in mind, the Department commissioned Grant Thornton to conduct an independent review of the policy underpinning the DHDA to inform policy as to its future, including the question as to whether it continued to be required to meet a socioeconomic need. The report concluded that the DHDA is not required to sustain the principal reason for which it was established, that of the continued growth and development of Dublin's digital enterprise sector. This informed the Government's decision to close the DHDA and transfer the properties to the Land Development Agency. The Government remains fully committed to the regeneration of the Liberties area of Dublin 8 and is of a view that the redevelopment by the Land Development Agency of the DHDA properties, in conjunction with properties in the area owned by the Office of Public Works, OPW and Dublin City Council, represents a priority and transformative project for Dublin. This will provide a greater contribution in addressing other market and societal needs beyond digital enterprise, including the construction of social and affordable housing, along with civic, community and retail development. The board of the DHDA will be asked to prepare an exit plan for an orderly wind-down, to be implemented by an expected date in mid-2022. It will address the needs of the staff of the DHDA, the client companies and communications with the local communities.

The Department will work closely with the agency on the finalisation of the necessary steps, including the redeployment of its permanent staff within the public sector.

The 31 client companies, with 270 employees, that are currently located at the Digital Hub campus are under no immediate pressure to move and will be able to continue trading as normal throughout the wind-down period. It is anticipated that during that time the client companies will find alternative accommodation, having regard to the finding of the report in respect of the robust supply of co-working and office space available in Dublin. That supply has only increased in the past year.

Finally, the Government recognises the important role the local community plays in the successful regeneration of the area. In this regard, the Department has committed to continue making funding available in order that the agency can continue its community engagement programmes throughout the wind-down period. The Department met the LDA following the Government decision and is keenly aware of the need for and value of community engagement as part of its plans for the regeneration of the area. The Department will work closely with the DHDA, the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, and the LDA to ensure that the wind-down takes account of the needs of the community.

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