Trevor Sargent
Ceist:1 Mr. Sargent asked the Taoiseach if he will update the situation regarding the siting of MediaLab Europe in Dublin. [9093/01]
Ceisteanna–Questions. - MediaLab Europe Project.
Michael Noonan
Ceist:2 Mr. Noonan asked the Taoiseach if he will report on the current situation in respect of the MediaLab Europe project; and if he will make a statement on the matter. [9949/01]
I propose to take Questions Nos. 1 and 2, together.
I launched MediaLab Europe last July at the Guinness Hop Store as a leading research facility in internet, multimedia and information and communication technologies. Since then, significant and very encouraging progress has been made with this project in terms of sponsorship, research, attraction of academic staff and students, and the appointment of a chief executive.
As part of the agreement to establish MediaLab Europe, the Government is committed to providing a suitable premises. MediaLab Europe currently occupies the top floor of the Guinness Hop Store pending the finalisation of property purchase.
I am happy that progress to date is broadly in line with our plans for MediaLab Europe, which is well on track to meeting its objective of helping to move Ireland up the value chain in terms of research and development capacity.
It is worthwhile to recall the distinction between the MediaLab Europe project and the wider digital hub proposal which relates to enterprise development, building on the types of expertise and technology complementary to, and arising from, MediaLab Europe.
In relation to the MediaLab Europe development, I wonder if I can have an answer to a question I asked previously. I asked why there was no tendering process used for the establishment of a Media Lab in Ireland given that there has been quite a difference between the funding in computer science and mathematics over the past decade – about £500,000 per year for 12 projects, compared to £28 million for this external institute. Can the Taoiseach explain, and perhaps consult with those who have a problem with such a huge gap in investment between ongoing indigenous research and this particular institute, so that there will be some reason and some transparency in the establishment of this institution?
The Government was approached initially by MIT, which was seeking a suitable European location to establish a sister entity to its highly successful and prestigious Media Lab laboratory in Cambridge, Massachusetts. This coincided with a report published in 1998, which highlighted the need to rectify significant deficiencies in our research and development capacity, particularly in emergent technologies. Before committing to the project, the Government obtained both international and local expert advice. The consensus of this advice was that MIT was a world leader with an unrivalled reputation and that MediaLab Europe presented a unique opportunity for Ireland.
There was initial concern shown by some of the universities about the project. To the best of my knowledge, this has been resolved. The investment in MediaLab Europe has to be seen in the context of the investment of almost £1.95 billion allocated to research and development in the national development plan. Some £560 million has been allocated to the Technology Foresight Fund to establish this country as a world centre for information communication technology and biotechnology. In addition, the sum of £220 million has been allocated in a public-private initiative towards research programmes in third-level institutions. The Government decision approving the MediaLab Europe project also included approval for funding for Irish universities to engage in collaborative projects, and to date, 11 institutions have been signed up. They have all been approved by the Government liaison committee, in which the Higher Education Authority plays a prominent part. Ultimately, the decision to invest in MediaLab Europe was taken in the knowledge that an unprecedented level of resources was being committed to third-level research and development. The amount that has been given to date to MediaLab Europe is only a small fraction of the overall resources.
I put it to the Taoiseach that there are still very significant concerns in the universities that they will be starved of the money required to carry out necessary research. There is another concern that MediaLab Europe will attract a significant proportion of donations from the business community for research, donations which at the moment are available to the universities. The collaborative proposals between MediaLab Europe and the universities have only been allocated a budget of £1 million One eminent university researcher described this as the equivalent of throwing a candy bar into an orphanage. Would the Taoiseach look at these concerns? My party supports MediaLab Europe, we think it is an interesting project, but there are difficulties emerging in the local area, in terms of property prices, and the development of the surrounding area. Difficulties are also emerging with the concerns now being expressed by the presidents of the universities. Is the Taoiseach aware of these concerns and will he reply to them?
I will look at those concerns and I will ask the Government liaison committee, the steering committee, to address them. We very much want to work with the universities. The universities had been concerned at the outset that they would have no involvement in these projects. However, there are already 11 approved projects with their involvement.
The progress on the MediaLab Europe project is being carefully monitored by the Government liaison committee. Many Government Departments are represented on this committee, including the Department of Education and Science and the Higher Education Authority. It is chaired by an official from my Department.
Frameworks have been agreed with MediaLab Europe and these have been designed to enable the committee to monitor targets and objectives in relation to several critical issues. These include the attraction of high calibre research projects, researchers and students to MediaLab Europe and the commitment of MIT MediaLab to achieving this. I am told that these are people, projects and researchers which would not otherwise be in Ireland. In assessments I have read, such people have not been in Irish universities. Dr. Daniel O'Hare was very much a driving force, with the other universities. One of the university presidents who is a member of the group also states that and he has been involved in this for more than a decade.
The commitment of MIT personnel, the recognition of time spent in MediaLab Europe by Irish and foreign students for degree granting purposes, the agreement of international sponsorship targets and a system of financial reporting will also be dealt with under the new frameworks.
I will consider the other points raised but I wish to emphasise that up to 1998 there was little or no money invested in research and development. Now, under the national development plan, £560 million has been allocated to the technology foresight fund. That money will go to university projects, campus companies and the third level area.
There are concerns about property speculation, as mentioned by Deputy Noonan. As with any new project of this type, property values in the area have increased. The Department of Finance has concerns about that but not for MediaLab Europe. MediaLab Europe is to receive £28 million over a four year period. That is scheduled. There is no difficulty with MediaLab Europe. It is the digital hub area and one with which the Department of Finance is concerned, as it is with the level of finance required to buy some of the buildings. The Department has a valid point in believing that the State should not buy up all the buildings, but should simply provide enough to get the centre going. After that it should be enterprise driven.
Will the Taoiseach look again at the inadequate budget for collaborative projects between MediaLab Europe and the universities, which currently stands at only £1 million? There is no reason that figure could not be raised to a more significant amount which would satisfy university researchers if the Taoiseach was to intervene. Will the Taoiseach explain in precise terms the relationship between MediaLab Europe and the digital media district project? Will he also list any directors appointed by the Government to either of the two projects?
There is a distinction between the two projects. The MediaLab Europe centre is that set up by the Government to link directly with MIT. The Government is investing £28 million towards research and start-up costs for that project. The digital media district is the entire operation. It is the driver to attract the companies which will spring from the hub into the overall area. The costing and the scope and extent of the development plan has not yet been agreed. It is the subject of discussions with the Department of Finance but the company, Digital Media Development Ltd, is in place.
The directors of the MediaLab Europe board are: Mr. Nicholas Negroponte of MIT who is the chairman; Mr. Rudolph Berger, the recently appointed chief executive officer; Mr. Gerhard Schulmeyer, the president and chief executive officer of Siemens Corporation; Mr. Bob Metcalfe, the founder of 3 Com and currently with International Data Group; Mr. Larry Bacow, the chancellor of MIT; Mr. Denis O'Brien, an entrepreneur; Dr. Daniel O'Hare, the ex-president of DCU; Mr. Red Burns, the head of the communications and multi-media school at New York University; Ms Ann O'Riordan, the outgoing country manager of Microsoft, and Bono of U2.
The board of Digital Media Development is chaired by Mr. Patrick Teahon formerly the Secretary at the Department of the Taoiseach. The other members are: Mr. Dan Flinter of Enterprise Ireland; Mr. Don Thornhill of the Higher Education Authority; Mr. John Fitzgerald, Dublin city manager; Mr. Paul Kavanagh, Mr. Paul McGuinness, Mr. Peter Cassells and Ms Jacqui Harrison of IBEC.
In reply to a question last December, the Taoiseach stated that legislation to provide for and to underpin Digital Media Development Ltd. was in preparation. There is no reference to any legislation under that title in the schedule circulated by the Chief Whip. What legislation is required?
Are the concerns of the Department of Finance centred on the possibility of insider trading in property, with the Government having announced the creation of a digital district or cyber-village without ensuring safeguards are in place? Attention was drawn to the site in a map recently published in The Irish Times. What is the level of commitment that the Government is likely to give? Comparisons have been made between this project and the Temple Bar project. The State acquired and owned much of the property in Temple Bar, while, apart from the Guinness Hop Store building, it owns less property in this area. The MediaLab project in Boston, which I visited, is based in a compact space.
Underpinning legislation is necessary for this project, as with all big projects, so that it has a base and is accountable to the House under normal structures. Due to market sensitivity I am advised not to indicate particular properties as contracts have not yet closed on all properties. There are other Guinness properties adjacent to the Hop Store which would clearly be important to the hub. There are also other properties. The Department of Finance want to be certain about those other properties. The costs and prices after negotiations with Guinness are expected to be attractive to the State but it is for the Office of Public Works to negotiate on that issue. What the Department of Finance does not want is to become involved in the purchase of large amounts of property. Deputy Quinn has alluded to what were very different times in the Temple Bar area.
It seems that the space required to get the project off the ground is not enormous. There is a concern that a new project will begin to move into surrounding areas and the Department of Finance do not want to get into that situation. They will deal with matters which have been looked at for some months and will close on some of those contracts, though perhaps not all. That will happen in the next month or so.
Will a register of property owners for that area be maintained so that, in time, there will be full transparency regarding benefits from increases in the value of properties? This development in my constituency, particularly the digital media district area which is surrounded by some of the most disadvantaged communities in these islands, including Watling Street flats, Bridgefoot Street, Oliver Bond House, Fatima Mansions, Basin Lane, James Street flats and St. Theresa's Gardens, is very welcome. Does the Taoiseach agree the development presents a golden opportunity to ensure some of the advantages which have been experienced in Ennis are given to these communities to redress the disadvantages they suffer? Does the Taoiseach agree we should set out to provide a computer facility for each home in the area so that those who heretofore have been disadvantaged would enjoy the advantage of this information technology digital media district on their doorstep?
Deputy Mitchell has raised this matter with me several times and I have discussed with all the individuals and groups I have met the importance of involving the community. Representatives of the community have been met and a newsletter is being circulated giving details of the facilities to the local community. These steps are useful. In recent years the FIT programme has shown that people who have little or no technology skills could complete a course and take up positions in little more than a year. Although I supported the FIT programme I did not expect it to have such success in dealing with long-term unemployed people.
I do not know if there is a register of properties in the area. I understand negotiations are taking place between the Office of Public Works and Guinness. I know Guinness has made attractive offers to the State. There is one other development and there may be more. What happens with other developments will be a matter for the private sector in time to come.
When the Taoiseach welcomed the MediaLab project as a flagship project outside the United States was he aware of the MediaLab establishment going to India? What effect does he think that would that have on developments in Europe, particularly in Dublin?
Is the Taoiseach aware, as I have been told, that other leading world companies similar to MediaLab, were interested in setting up in Ireland? If that is the case, will the Taoiseach explain why there was no tendering process, why this company was chosen above others and why there was no consultation with the universities, who tell me they were not consulted? What checks and balances are there to ensure this is good value for State money? Academics tell me that peer review of research works is normal to ensure good standards are maintained and there is value for money. Will any such review be put in place for MediaLab?
Will the Taoiseach elaborate on the discussions with the Department of Finance which have already been referred to? Reports I have received indicate that the cost of property acquisition is causing a problem in the Department as much as the effects of the value of property and other issues relating to the project.
The Department of Finance is merely doing its job in making sure the Office of Public Works gets good value for money and that any contracts it closes are for property it requires. Those discussions and the allocation given to the Department of Finance will be agreed shortly. Whatever money is available will be voted. If sufficient money is not available contracts will not be taken up. The Guinness properties are large buildings and contain many facilities.
I understand the argument about some of the universities. I am not a scientist and I follow the advice of a powerful group of experts. They tell me Ireland is blessed to have an institution such as MIT coming here. The other companies who are supposedly interested in setting up in Ireland did not speak to me.
Did they know about it?
MIT came into Europe and looked around. Some countries showed an interest and, for one reason or another, their involvement did not continue. MIT is a world renowned organisation. Nicholas Negroponte might have had a feel for Ireland, he might have been close to the Clinton administration and some of the people involved may have been close to President Clinton. The late Ron Brown may have had an interest in Ireland since the 1995 conference. Nicholas Negroponte liked the idea of Ireland. He might have taken the project anywhere in the world.
He also put a few shillings on the table.
He did, and his weight. He was able to involve people such as Dr. Rudolph Berger, who is the new chief executive of MediaLab. Dr. Berger takes over the day-to-day position from Nicholas Negroponte and will live in Ireland. He has more than two decades' experience in technology and digital media in both the business and academic sectors, is a graduate of Yale and Cambridge University and has founded and managed several successful high technology companies in the United States and the United Kingdom. He has been vice-president of software at Xerox and chief technology officer at Packard-Bell and has published extensively. The appointment of a candidate of this calibre will do much to attract industry and people to this country. Irish people such as Anne O'Riordan, Bono and Denis O'Brien will be involved in the musical and business aspects of the project and others will come from outside the country. The project has created an enormous buzz.
There is a risk factor in the project. If these things could be done by anyone the people involved would not be researching and doing them. They have ideas for the future and are moving ahead with the inventions of the future.
The State is funding the start-up costs of MediaLab Europe. Once the facility is up and running the bulk of the revenue will come from commercial sponsorship. Sponsorship companies will have access to intellectual property. Deputy Quinn asked me about this many months ago and I sought the information he required and passed it on to him. The project is providing a huge attraction to all sorts of researchers, individuals and companies.
MediaLab and the Asia MIT group are also linking to India. This is an advantage. More and more of our IT competitors are in India.
Bangalore.
The Taoiseach: That is how it is. It is an advantage that Dublin is the centre of Europe and Bangalore is the centre of India where there is an enormous number of people in third level education. I am conscious that this has upset some people in the university world but rather than have a war about it I am trying to persuade people to work together so that developments can be shared. Ireland is too small for us to worry about fighting each other.
If we were to take on the other 0.5 billion people in the Community on these projects we would do better than worry about who has this or that project.
It sounds like—
They should do that in the intellectual market.
Is there similar support for a project such as this in the north west? A 25 acre site, adjoining the institute college, is being proposed for a high tech park. The development company this week said a tax incentive would be a major source of encouragement to developers to move in. That is something that is needed in the north west and particularly in Sligo. This is a multi-million pound development which has emerged this week. It is imperative that the Government provide State support as against tax breaks that would encourage investment. It adjoins the institute college in Sligo—
A question Deputy, please. The Deputy should put down a question dealing specifically with that matter.
It is an associated matter.
It is still the subject of a separate question. Question No. 3 please.
A Cheann Comhairle—
I have called Question No. 3. We must move on. I have given the Deputy—
I did not get an answer. I asked twice about tendering.
It is not a matter for the Chair whether the Deputy—
The Deputy has one and he does not want it.
I have called Question No. 3. We must move on. We have spent 30 minutes on those two questions.
An important question has been asked twice.