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Dáil Éireann debate -
Wednesday, 6 Dec 2000

Vol. 527 No. 4

Ceisteanna–Questions. - Digital Media District.

Gay Mitchell

Question:

1 Mr. G. Mitchell asked the Taoiseach if he will make a detailed statement on press reports that the Government has plans to create a digital park with the potential for 7,000 jobs in the Liberties-Coombe area of Dublin. [25507/00]

Ruairí Quinn

Question:

2 Mr. Quinn asked the Taoiseach the plans the Government is considering for the establishment of a digital park in the south inner city area; the role his Department is playing in the preparation or assessment of the plan; and if he will make a statement on the matter. [27384/00]

I propose to take Questions Nos. 1 and 2 together.

The Government announced last December its plans for MediaLab Europe and a multimedia village in Dublin to be known as the Digital Media District. The district will be located in a central Dublin location. Earlier this year the Government, under the auspices of my Department, established a new body, Digital Media Development Limited. The functions of the company are threefold: to oversee the development of the Digital Media District as a creative centre for digital industries, such as multimedia, Internet and electronic commerce, to acquire suitable property, and to implement the contractual agreements between the Government, MediaLab Europe and the Massachusetts Institute of Technology.

My Department has played a co-ordinating role in developing the MediaLab Europe and Digital Media District projects, having regard to the range of issues and Departments involved. A report has been received from the board of DMDL covering the arrangements for the establishment of the media village, including its location and the provision of a permanent home for MediaLab Europe. The report is being examined by my Department with the other Departments concerned, including the Departments of Finance and Enterprise, Trade and Employment, and I anticipate that decisions will be made shortly on the next phase of the development of the project.

Will the Taoiseach confirm that part of the multimedia village will be located in the Liberties and Coombe area of Dublin? Will he also confirm that there will be consultation with local people to ensure the best possible environment is found for this multimedia village? Will the Taoiseach consider my concern that such a development would go hand in glove with a residential area and would not be isolated from local people? Will he confirm that there will be job opportunities for local people and that the living environment of one of Dublin's oldest communities will be protected as part of this very welcome development?

Hear, hear.

I can say yes to all those questions. Deputy Mitchell was present when, during the summer, I attended the launch in the Guinness Hopstore. I said our aim in developing the new district was to ensure that a mixture of residential, commercial, educational and leisure facilities was developed to provide a living community anchored in a new digital economy in the heart of the city. When I have met the individuals involved or they have met officials of my Department, I have said repeatedly, not that there is any argument or issue with me on it, that, in the work they have done in scoping the project with assistance from Enterprise Ireland, Dublin Corporation, the IDA and others, they should ensure the building blocks are put in place from the beginning and that the local communities are fully consulted in the process.

Dr. Upton

Will the Taoiseach assure the House that the jobs which will be provided in the area will be focused on residents and locals and that appropriate training will be put in place and skills development facilities provided for them? Will he set up an appropriate task force to ensure that happens?

I have raised the jobs and employment issues and they cover many areas, such as those I outlined, like the building of the facilities and the residential and other aspects. The purpose of the Digital Media District concept is to develop a purpose-built environment specifically as a premier international location for Internet, multimedia and information and communications technology industries which would build on the strong base of the existing computer manufacturing and software industries in the country and which would contribute to making Ireland Europe's centre of creative excel lence and the leader of the Internet economy. MediaLab Europe will be the high profile anchor tenant but it is only one part of the village.

The district will also be home to a range of other facilities, such as incubation units for indigenous, high technology companies. Enterprise Ireland handles that. The district will also house divisions of larger companies, including multinationals, which operate in the electronic commerce sector. The IDA handles that. The district will also house local business services along with suitable leisure and accommodation facilities. While some of the jobs may not be suitable initially for some local employment needs, as was the case with the Irish Financial Services Centre, it is desirable that, from the beginning, training is put in place. I accept that fully. Even if people cannot take up many of these jobs, they should at least be able to aspire to the technical jobs.

Deputies know the speed with which this has moved. The number of companies, mainly from outside the country, interested in the project is much greater than anyone expected in summer. It should certainly create employment and the company should maintain involvement with local companies. The IDA and Enterprise Ireland already have local involvement and contact in the community, as does FÁS.

Is there any risk that the additional demand for housing in the immediate vicinity will drive beyond the reach of local residents housing which comes on the market?

As Deputy Bruton and local Deputies know better than I, there is a large amount of open, derelict and unused space in the locality, for one reason or other. I accept what Deputy Bruton said. That fear always exists. I saw what happened in the area around the Irish Financial Services Centre, an area with which I am familiar, and I know what can develop from a project such as this. Provision was made in the Estimates for 2000 for the purchase of some property for this development. It is important the property end is handled efficiently and quickly. Otherwise, it will cause a house price escalation crisis which would not be helpful. The board has pointed this out clearly to me and it is attempting to take some corrective action.

What corrective action?

If I begin to spell that out, it might not be helpful in resolving the issue. The board has endeavoured to purchase some property.

On the development of the proposal, the model for the Custom House Dock Development Authority might well be re-examined as one in which the local community could be included in every aspect of the development and a broad-ranging representative board could be constructed.

Second, as regards the £100 million allocated, I understand a commitment of £31 million has been announced by the Taoiseach. On what, specifically, will that £100 million be spent? To date, for what has the £31 million been used?

The £31 million allocated in the Vote for my Department was to facilitate the start-up both of Media Lab Europe, which is already in situ, and—

Has that been expended?

Some of the property element of it has been, although not an enormous amount. I hope Media Lab Europe will be the flagship project of the digital media district. It is generating enormous interest because of its world wide network. The company has put 15% of its European research projects into this venture. Six months ago I said that some 15% of new European sponsorships or grants would be allocated at the end of Media Lab Europe's first year of operations. I did not think its activity would generate as much interest as it has, but people physically follow those involved in it and that is what is generating the interest. The total cost to the Exchequer of Media Lab Europe will be £28 million in start-up capital over four years, together with the cost of suitable premises estimated at £15 million, and £1 million per annum for the joint work done by Media Lab Europe and the Irish universities. The premises remain in State ownership and will be leased to Media Lab Europe for a nominal rent. Some of those costs, therefore, have already been expended.

I welcome this proposal and am sure that all the local Deputies would like to be kept informed by the Taoiseach of the progress being made. Given the progress that has been made in Ennis, does the Taoiseach agree there is a golden opportunity to encourage access by local people in the Liberties and the Coombe to computers and the Internet? Will the Taoiseach consider the sort of proposals Fine Gael has made whereby half the cost of installation might be met by the Government, thus including local people in this welcome development?

Will the Taoiseach consider consulting on a regular basis with the south west inner city network and others so that their views are taken into consideration? Given what happened in the International Financial Services Centre – a welcome development, but one that does not attract people as a residential area – would the Taoiseach consider ensuring that the design of the media village will incorporate housing? If we have shops with homes over them, is there any reason housing should not be incorporated in this media village? The Taoiseach should consider those suggestions.

The local community should be involved in this new project. It is an area that has suffered but, as Deputy Mitchell said, it is one of the oldest, if not the oldest of communities in Dublin. I will bring all the Deputy's points to the attention of the group involved. I raised the issue of training in particular with the Media Lab board whose members are already involved in such matters. Mr. Nicholas Negraponte is familiar with all these issues, as is Dr. Danny O'Hare, the former president of Dublin City University, who did a tremendous job in involving the people of Ballymun. He is now one of the leading lights of this project. Ms Ann O'Riordan of Microsoft, Larry Badco, the chancellor of MIT, Bob Metcalf the founder of Three-Com, and Red Burns of the Multi Media Centre in New York, are all—

All these Liberties families.

—top people in this area, with the capacity to involve the local community.

And Bono is on it as well, Deputy Bruton, so he will bring local force to it. I understand the point that there should be local consultation, involvement and participation in training from the outset. It is the view of the project directors that they should try to develop the residential concept from the start, rather than bringing in people from outside.

Dr. Upton

As the Taoiseach is probably aware, this is an area with one of the highest levels of unemployment and lowest levels of educational achievement in Dublin. I would like an assurance from him that specific upskilling will be provided for locals so they can make the best possible use of this advanced technology. The Taoiseach should focus specifically on putting in place a local task force.

I understand the case being made by local Deputies. Some of the companies involved are participating at the leading edge of international technology. We will endeavour to have training there from the start, and Enterprise Ireland, FÁS and the IDA have already focused their attention on this matter. I have not seen the report but it addresses this issue. I will make them aware at the next meeting of the views of local Deputies who know the area best. The area was picked as the location for the centre because it is the main remaining one of high long-term unemployment and social disadvantage in the greater Dublin region, if not in the entire country.

In the Estimates for his Department this year, why has the Taoiseach cut by 48% the provision for the Multimedia Ireland centre? I presume there is an explanation, so perhaps the Taoiseach could provide it.

That is the subject of Question No. 3.

Subhead P relates directly to this question, but I will happily take it later on. I am, however, giving the Taoiseach notice of the question now.

It would be more appropriate to take it with the next question.

Will the Taoiseach ask the board to undertake a survey of homes within a one mile radius of the proposed centre to identify how many of them have a computer and Internet access, and how many residents have the sort of training in computer use to which Deputies Gay Mitchell and Upton referred? Does the Taoiseach agree that the results of such a survey would give a clear indication of what needs to be done to ensure that this is a multimedia community involving locals as well as newcomers, and that proper provision is made to achieve that objective?

The entire community should be involved in it. A survey was carried out, although I do not know its extent or content. I saw some preliminary reports of the number of people in the community who use personal computers. Those points of view should be taken into account, if they have not been already. This project – the European centre of excellence for the Media Lab of the Massachusetts Institute of Technology – has been recognised by all our state-of-the-art high technology companies as an enormous opportunity, not only for this district but also for the country in general. The people participating in it are, as they like to say themselves, creating the future. To do that successfully we must take account of the residential, commercial, educational and leisure facilities of the area. Every Deputy would like to have the centre within his or her own community. It is only right that local Deputies should put forward their views and I will be glad to relay the full contents of this discussion to the project group.

Dr. Upton

Will the Taoiseach undertake to keep local Deputies informed of developments, particularly as they relate to job needs and developments in the area?

Perhaps it might be best to arrange a meeting with the staff who have now been recruited to ensure local Deputies are kept informed of developments, if not on a day-to-day basis, on a month-to-month basis. I will ask members of the senior staff to do this.

I would welcome such a briefing. It would be appreciated if the Taoiseach could arrange it. Will the Taoiseach confirm that the site will cross the Liffey or is the proposed development to be confined to an area south of the Liffey? Will it incorporate any part of the Guinness site? Given that share prices have nose-dived on the Nasdaq for some of these industries, will the Taoiseach confirm that this will not affect the proposed investment?

As can be seen from the companies involved, they are involved in long-term initiatives. While share prices will go up and down, what we have to do is plan for the next phase and generation in the high-tech area. That is what the Massachusetts Institute of Technology – the model used – has been doing for some years and what Media Lab Europe will be doing. The IDA and Enterprise Ireland, which have been trying for many years to attract investment here, have spelled out the benefits in detail. As I understand it, as of now, we are talking about only an area south of the Liffey, of which the Guinness site forms part.

Is the Taoiseach aware of a proposal to establish a children's museum along the lines of the Boston Children's Museum? The site in question in the south inner city would be an ideal location for such a museum where children at a very early age could be introduced to modern technology. I have to disclose an interest. I am a patron of the body which is seeking to establish the museum. Will the Taoiseach pursue the possibility—

We are moving away from the substance of the question.

No, the Taoiseach is nodding his head. I think he is aware of it. Will he pursue the issue and seek to have provided within the overall complex a site for a children's museum? It would be the ideal location.

I will ask the Deputy only one favour in return. Will he seek to ensure a cap is placed on the space sought? It keeps moving in every discussion. While I am supportive of the project, we must bear in mind its size.

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