I propose to take Questions Nos. 78 and 133 together.
MediaLab Europe, MLE, was formed by a series of tripartite 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, for a variety of reasons, including a downturn in the technology sector, MLE has consistently failed to meet its financial projections and the situation has deteriorated significantly over the past 24 months. At the current rate of expenditure, this should take MLE to the end of the first quarter 2005.
In view of these developments, the Government Liaison Committee, GLC, which brings together Departments with an interest in the MLE operation, wrote to MLE in February 2004 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.
Considering the importance of digital media in the broader ICT sector and the need for commitment to research and development in this field, there was a need to make a comprehensive assessment of the current model and structures at MLE. This having been done I am now considering possible options for the future of MLE.