Ruairi Quinn (Dublin South East, Labour)
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Question 119: To ask the Minister for Communications, Marine and Natural Resources if he will provide information on the recent €118 million property deal in the digital hub; the amount of the digital hub dedicated to digital media enterprises; the amount being used for residential or commercial purposes; and if he will make a statement on the matter. [2123/06]

Noel Dempsey (Meath, Fianna Fail)
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The digital hub project, managed by the independent Digital Hub Development Agency, has been and will continue to be successful in developing a digital industry cluster, as well as in regenerating a historic community area in the heart of Dublin by operating a number of significant community and educational initiatives as part of its role in the digital hub district.

On 5 October, the agency announced a competition to develop over five acres of land in the digital hub. This land is to be developed as a mixture of residential, commercial and retail properties, in addition to public spaces. The private developers competed on the basis of bids of cash plus office space. The office space will be handed back to the digital hub agency and will be used to accommodate an increased number of digital enterprises in the area.

On 22 November, I announced the acceptance of tenders for two sites, with a combined area of almost 5.6 acres for approximately €118 million. In return for the land, the State will receive a combination of €72.4 million in cash and €45.7 million in high quality offices, which will accommodate digital enterprises as the digital hub grows. The breakdown of the tenders means that the digital hub will receive over 13,000 sq. m., 140,000 sq. ft., of office space.

The digital hub has engaged with local community interests on the project from the beginning. The consultation takes place through the unique community, public, private partnership, CPPP, process, which is chaired by DHDA board member, Peter Cassells.

As a result of the consultation, the two private developers are required under the terms of the development contract to engage with the local community through the CPPP process. The successful tenderers will now be required to make a planning application within six months and on receipt of planning to construct the office space offered. They must engage with interested parties through the CPPP process. The office space will facilitate the future expansion of the digital hub by accommodating digital media enterprises. The amount to be used for residential or other commercial purposes will be a matter for the tenderers and the planning authorities.

With regard to industry development, the agency has been successful to date in growing the cluster with about 50 companies now employing approximately 500 people in the hub. These enterprises are involved in a range of activities including games software development, mobile technology, animation and TV production.

Tommy Broughan (Dublin North East, Labour)
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With regard to the five and a half acres, which I understand went to the builders Manor Park Homebuilders Ltd. and P.Elliott & Company, what proportion of the original digital hub area will remain in office and enterprise development? When the Minister and I were last at the hub together, when the Minister was making an announcement, a number of the wonderful young entrepreneurs we met complained bitterly about the lack of capacity. Even with 30,000 square metres, will there be enough capacity for development?

Does the Minister intend to issue any long-term directives regarding the core operation strategy of the hub? The Secretary General of the Department, Mr. Brendan Tuohy, reported to the Committee of Public Accounts before Christmas that Media Lab Europe had refused to give him key information about the operation of the project. Have we since obtained that information? Has the Minister been in contact with Dublin City Council regarding the proposal for an urban wireless hotspot for the entire city, which many other cities have implemented?

Noel Dempsey (Meath, Fianna Fail)
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Regarding Media Lab Europe, when I became aware through the Committee of Public Accounts that information was not forthcoming to the committee from the liquidator, I wrote a letter and the matter was followed up by Brendan Tuohy, the Secretary General of the Department. I am not sure if the information has yet been given to the Committee of Public Accounts but all information on this matter should be made available to it and I support the efforts to get that information.

Regarding the hub strategy, Deputy Broughan is correct in stating that the two successful tenderers are Manor Park Homebuilders Ltd. and P. Elliott & Company. They must now approach the Dublin City Council and get planning permission. I have no idea what proportion of the site will be residential or commercial. There was informal contact from the DHDA in the earlier stages of this process to ascertain what would be broadly acceptable. The project cannot be done without the full co-operation and assistance of the city council, which will be conscious of the need to balance the commercial and especially the residential element in that area, because apart from the digital cluster, one of the major aims is to renew that element from a living point of view.

Regarding the general strategy for the hub, much good work has been done. The hub has been very successful in attracting companies and creating employment. It has been particularly successful with regard to the Liberties learning initiative, with which Deputy Broughan is familiar, and the education work being done. Over the past 12 months there was a particular focus on getting the developer competition finished and out of the way, and there will now be a greater focus on the central work of the hub itself. I am currently awaiting a business plan from the hub which will outline that strategy over the next four or five years. Part of it will be the development of the new digital research centre, about which I hope we can make a formal announcement in the very near future.

Bernard Durkan (Kildare North, Fine Gael)
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Can the Minister indicate to the House the full extent of public investment in the digital hub project, the total outlay involved and the degree of recovery, or potential recovery, at a later stage?

Noel Dempsey (Meath, Fianna Fail)
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I am subject to correction, but allowing for what we are to get for these two sites, €118 million, and what we have already spent, the outgoings and income are about level. That does not take into account the other property owned by the State in the digital hub area, so we would be ahead in a positive sense in terms of value.

Bernard Durkan (Kildare North, Fine Gael)
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But we are selling.

Noel Dempsey (Meath, Fianna Fail)
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No. We are not selling the other property in the area.

Eamon Ryan (Dublin South, Green Party)
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On a point of order, for the second time in a row regarding questions to the Minister for Communications, Marine and Natural Resources, we have got through only two oral questions in the 75 minutes allotted. We need to organise ourselves to do business more quickly and efficiently.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Members should stick to the time limits provided for.

Eamon Ryan (Dublin South, Green Party)
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There have been many occasions when Deputy McGinley's question has not been reached, and the issue affects me today. We must address the issue and that has not happened so far.

Séamus Pattison (Carlow-Kilkenny, Labour)
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The question could have been reached if Deputies stuck to the time limits in accordance with Standing Orders.

Pádraic McCormack (Galway West, Fine Gael)
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The Minister takes up all the time.

Noel Dempsey (Meath, Fianna Fail)
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That is not true.