Michael Ring (Mayo, Fine Gael)
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Question 134: To ask the Minister for Communications, Marine and Natural Resources the full extent of investment to date in the digital hub with particular reference to such new investment; and if he will make a statement on the matter. [2063/06]

Fergus O'Dowd (Louth, Fine Gael)
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Question 174: To ask the Minister for Communications, Marine and Natural Resources his proposals for the future in respect of the digital hub; and if he will make a statement on the matter. [2062/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 134 and 174 together.

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 an 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.

Expenditure at the digital hub since 2000 is approximately €126.3 million. This includes a €76 million investment in property and infrastructure as well as €50.3 million in operational costs. During 2005, €2.5 million was provided to the Digital Hub Development Agency to clear an overdraft, which had been built up through its operating costs during 2004 and part-2005. In addition, €850,000 was provided during 2005 to meet the ongoing operating costs of the agency. Future costs will be kept under review by the Department and will be subject to negotiations with the agency.

On 5 October, the agency announced a competition to develop 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.

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 break down of the tenders means that the digital hub will receive over 13,000 sq. m., 140,000 sq.ft., of office space.

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

The digital hub has engaged with local community interests on the project from the very 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 that will be used for residential or other commercial purposes will be a matter for the tenderers and the planning authorities.