Dáil Éireann Debate, Wednesday - 14 February 2007
91 Mr. Rabbitte asked the Minister for Communications, Marine and Natural Resources his response to the report of the Committee of Public Accounts in regard to a project (details supplied) particularly in relation to findings in regard to his Department; and if he will make a statement on the matter. [4120/07]
Amharc ar fhreagraMediaLab Europe (MLE) was established as a company in May 2000. The subsequent downturn in the technology market in the latter half of 2000, as well as the tragic events of September 11 2001, had a direct and negative effect on the technology companies whose sponsorship was expected to underpin MLE. Responsibility was transferred to the Department of Communications, Marine and Natural Resources in June 2002. In late 2003, the Department became concerned about the underperformance of MLE and examined the sustainability of the project. Concerns regarding its research and financial strategy were raised.
Following a close review of two Independent reports, one by KPMG the other from a private consultant, I initiated talks with MLE and MIT in an effort to resolve these concerns. The outcome of those talks was not satisfactory with the result that I decided it would not be appropriate to continue funding the project. Consequently, in early 2005 MLE went into liquidation.
In general, I welcome the report of the Public Accounts Committee (PAC) with regard to MediaLab Europe (MLE) and the findings and recommendations contained therein. I am heartened by the fact that the PAC recognised the role MLE played in attracting major ICT companies to this country. As part of its overall assessment the Committee also made reference to the positive impact the Lab had on the local community, presenting an invaluable opportunity to experience and learn using digital technology.
I am also heartened by the fact the Committee's overall assessment made reference to the growing importance of Research and Ireland's attempts to establish itself as a global leader in the area of digital creativity should be encouraged. The intervening time since the close of MediaLab, has seen a shift from an emphasis on aspirational or ‘non-directional' research, the type MLE was predominantly engaged in, to more commercially focused activity.
In relation to my own Department, the valuable lessons amplified by the committee's findings, have been factored into the contractual agreement surrounding the newly established National Digital Research Centre (NDRC). The Centre will focus specifically on translational research and commercialisation in the digital media domain and represents a global shift toward industry partnered research.
With reference to the key recommendations of the report, the Government has absorbed the lessons highlighted by the Committee. In establishing the NDRC, best practice in terms of corporate governance, risk assessment as well as ensuring adequate information access and flow have all been carefully incorporated. Similarly appropriate measures of control have been factored into legal agreements surrounding the NDRC in order to enable the State to strategically adjust the project if needed and ultimately cease financing in the event of underperformance. Payments to the NDRC will be dependent on satisfactory performance in line with pre-defined targets and deliverables.
