Written answers

Thursday, 6 April 2006

Department of Communications, Energy and Natural Resources

Digital Hub

5:00 am

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 190: To ask the Minister for Communications, Marine and Natural Resources the extent to which the digital hub has developed with particular reference to its benefit to the region; the extent to which its objectives have been achieved to date; if targets met are in line with the costs involved; and if he will make a statement on the matter. [13861/06]

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I refer the Deputy to my reply to Question No. 92 of today.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 191: To ask the Minister for Communications, Marine and Natural Resources the investment to date in the digital hub; his intentions for its future development; and if he will make a statement on the matter. [13862/06]

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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Expenditure at the digital hub since 2000 is approximately €127 million. This includes €76 million invested in property and infrastructure as well as €51 million in operational costs.

The 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.

During 2005 the Department provided €3.35 million to the Digital Hub Development Agency. Future costs will be kept under review by the Department and will be subject to negotiations with the agency.

On 5 October 2005, 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 2005, the Minister 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 square metres or 140,000 square feet of office space.

The agency has been successful to date in growing the cluster with approximately 50 companies now employing an estimated 500 people in the hub. These enterprises are involved in a range of activities including games software development, mobile technology, animation and television 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 process, which is chaired by Mr. 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 partnership process.

The successful tenderers will be required to make a planning application within six months and, on receipt of planning permission, to construct the office space offered. They must engage with interested parties through the partnership 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.

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