Eric Byrne (Dublin South Central, Labour)
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Question 491: To ask the Minister for Communications, Energy and Natural Resources his plans regarding the future of the Digital Hub Development Agency; in view of the McCarthy report recommendations, if it is envisaged that the Digital Hub will be merged; if it is to be merged, with whom will it be merged and with which Department; and if he will make a statement on the matter. [40946/11]

Pat Rabbitte (Dublin South West, Labour)
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As the Deputy will be aware the Public Service Reform announcement made on 17 November last by my colleague the Minister for Public Expenditure and Reform, envisaged inter alia that as part of the rationalisation of State agencies the Digital Hub Development Agency (DHDA) would be merged by the end of this year with either Enterprise Ireland (EI) or the IDA. As the Deputy is aware such a merger was proposed in the July 2009 McCarthy Report on Public Service Numbers and Expenditure Programmes. The rationale for such a merger is potential savings through streamlining relevant administrative and programme activity in the Agencies concerned.

Discussions with relevant stakeholders, including DHDA, IDA and EI will be advanced urgently in the context of the announcement on 17 November last. This process will take account of a Strategic Review of the Digital Hub which was completed by my Department recently aimed at informing decisions on the most appropriate long-term future for the agency.

I am conscious of the valuable role which the DHDA is playing in the digital media sector and in promoting employment. At end 2011 there were 70 companies based at the Digital Hub employing approximately 800 people. I recognise the importance of these enterprises in the context of certain Government policy of promoting digital based employment. Any new Governance arrangements for the activities currently discharged by the Digital Hub will ensure that this contribution is protected and maintained.