Dáil Éireann díospóireacht -
Tuesday, 3 Jul 2001

Vol. 540 No. 1

Written Answers. - Enterprise Developments.

John Gormley

Ceist:

183 Mr. Gormley asked the Minister for Public Enterprise the stipulations which have been laid down with Digital Hub and MediaLab Europe in terms of the £52 million allocated to her Department for these developments; the return the State expects from these enterprises; and if she will make a statement on the matter. [19769/01]

Minister for Public Enterprises (Mrs. O'Rourke)

MediaLabEurope, MLE, the third level research and development educational facility established in partnership with the Massachusetts Institute of Technology is the subject of formal agreements between the Government and the Massachusetts Institute of Technology, MIT, and MediaLabEurope.

The Government, for its part, has agreed funding of IR£28 million over four years plus the cost of a suitable premises which will be let to MLE at a nominal rent. In return, MIT/MLE have agreed commitments in regard to the following: involvement of MIT personnel; attraction of high calibre research projects, researchers and students to MediaLabEurope; recognition of time spent in MediaLabEurope, by Irish and foreign students for degree granting purposes; achievement of sponsorship targets and financial reporting. A reporting framework has been put in place to ensure that commitments agreed are adhered to.

The Government also approved IR£1 million per annum over seven years to fund collaborative research projects between MLE and the Irish universities. The funding is being managed by the Higher Education Authority and a reporting framework in regard to this expenditure has been put in place.

In April of this year, the Government approved funding for the Digital Hub project. A total of IR£61 million has been allocated in capital funding for property purchase, including purchase of a premises for MediaLabEurope, with IR£42 million to be spent this year and the balance, that is, IR£19 million arising next year. Property purchase is being undertaken by the Office of Public Works and the property will be vested in the State.

Digital Media Development Limited, DMDL, the company mandated to develop the hub has been allocated IR£2 million per annum in operating expenses for the period 2001 to 2003.

In regard to the management of the project, DMDL has been directed by Government to furnish a development strategy for the hub, including the use of private sector investment for the refurbishment of properties. In addition, a review of the project will be undertaken before mid 2002.

Furthermore, DMDL is subject to standard corporate governance provisions, including those set out in the Code of Practice on Corporate Governance for State Bodies.

Heads of a bill have been prepared to place DMD Ltd., on a statutory footing and it is hoped to submit these to Government within the next few weeks.

An oversight role in regard to MediaLabEurope and DMD Limited is exercised by a Government liaison committee. This committee, which is chaired by my Department, consists of high level representation from a number of Government Departments and agencies. Consultants are about to be appointed to help the Government liaison committee effectively exercise its management role in regard to the Digital Hub project.