Written answers

Thursday, 10 March 2005

Department of Communications, Energy and Natural Resources

Departmental Projects

4:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 12: To ask the Minister for Communications, Marine and Natural Resources if he has satisfied himself that all appropriate steps were taken to save the MediaLab Europe project in view of documents released under the Freedom of Information Acts, which showed that the project was crippled by weak management and tensions between its two main shareholders, the State and MIT; if he intends to undertake an investigation into the manner in which the project was run; and if he will make a statement on the matter. [8209/05]

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 28: To ask the Minister for Communications, Marine and Natural Resources the nature of his proposed consultation process with a view to establishing a new research entity at the former MediaLab Europe premises in the Digital Hub; when he expects that the process will be completed; and if he will make a statement on the matter. [8210/05]

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 33: To ask the Minister for Communications, Marine and Natural Resources the position regarding the replacement of the anchor tenant at the Digital Hub; if any moneys spent to date are recoverable; his future plans for the Digital Hub project; and if he will make a statement on the matter. [8350/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 12, 28 and 33 together.

Since its inception, the Government, through the operation of an interdepartmental committee, has stayed in touch with the operation of MediaLab Europe, which was an independent company answerable to an independent board of directors. While it is acknowledged that research will generally require State support, the uniqueness of the MLE model, as presented initially to Government, was that it would be self funding by 2005. However, the financial situation deteriorated significantly in recent times due to MLE being unable to raise the necessary sponsorship and corporate income required and as envisaged in its business plan.

As it became clear that MediaLab Europe was not developing into a sustainable business model, my Department sought to engage with it in this regard. There were extensive and protracted discussions as I sought to find an appropriate and economically sustainable model for the continuance of MediaLab. Proposals I made in this regard were not accepted by MIT. The board of MediaLab took a decision, in light of its inability to raise financing, to close on a voluntary basis.

Financing provided to MediaLab Europe by the Government was in line with contractual commitments entered into by the Government. While current expenditure allocations to MediaLab are not recoverable, the Government retains full ownership of the MediaLab building.

I recently commenced a consultation with regard to the development of a new digital research entity in the previous MediaLab Europe building, located in the Digital Hub. It is proposed that the new entity would consider some research similar to that undertaken at MLE but that there would be greater focus on sustainable research and a more directive research in a new business model. I am also seeking better links to Irish universities, effective management and improved corporate governance, in accordance with general guidelines for State bodies.

The consultation focused on a number of topics, including research type; research area; preferred management approach; partnership requirement; preferred tender process; level of institutional interest in the project; fit with existing academic priorities and plans; funding issues; definition of intellectual property model; preferred approach to governance. The consultation process is now nearing completion and the Government will make decisions regarding the shape of a new research entity and how an organisation or consortium to manage the facility will be selected.

The separate Digital Hub project, managed by the independent Digital Hub Development Agency, continues to be successful in attracting digital industry tenants and operating community, educational and promotional initiatives. The Digital Hub Development Agency Act 2003 placed the Digital Hub Development Agency on a statutory footing. The agency has been successful in growing the cluster with over 40 companies now employing over 300 employees in the hub.

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