Dáil Éireann Debate, Thursday - 21 October 2004
90 Dr. Upton asked the Minister for Communications, Marine and Natural Resources if he has received a request for additional funding from MediaLab Europe; if it is intended to respond to the request for such funding; and if he will make a statement on the matter. [25666/04]
View answer98 Mr. Sargent asked the Minister for Communications, Marine and Natural Resources the progress in MediaLab Europe; and if he will make a statement on the matter. [22470/04]
View answerI propose to answer Questions Nos. 90 and 98 together.
MediaLab Europe, MLE, was formed by a series of tri-partite agreements between the State, the Massachusetts Institute of Technology, MIT, and MIT MediaLab and has been in operation since early 2000. It was established to conduct non-directed research in the field of digital media.
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 has deteriorated significantly over the past 24 months, primarily due to MLE being unable to raise the necessary sponsorship and corporate income required and as envisaged in its business plan. At the current rate of expenditure, this should take MLE to end of the first quarter 2005.
In February 2004, the Government liaison committee, GLC, which brings together Government Departments with an interest in the MLE operation, wrote to MLE requesting that it undertake a fundamental review of its business model and produce a strategic plan. The board of MLE submitted its strategic plan to the Department on 7 May 2004 which included a request for additional exchequer funding of €9 million.
In light of the above, I am currently considering the options for the future of MLE. As part of this process officials from my Department and other relevant Departments and agencies are exploring options with MLE and MIT. Issues being addressed include the need to secure greater focus of research and more directed research in a new business mode, a new arrangement regarding the intellectual property mode, better links to Irish universities, strict financial control and limit on financial exposure and improved corporate governance and management.
It is envisaged that the parties to the MLE joint venture will be required to come to final decisions on the future of the project before the end of the year.
