Pressure to probe Media Lab collapse

PRESSURE is mounting on the Government to hold an investigation into the collapse of the Media Lab Europe (MLE) research venture.

The Labour Party said the collapse of Media Lab, which has cost taxpayers some €35 million, should be probed by the Comptroller & Auditor General and the powerful Public Accounts Committee.

Media Lab was set up by the Government in a joint venture with the prestigious Massachusetts Institute of Technology five years ago as a research facility. Over the years it received some €35m of public money and raised €12m from private investors. However, it continued to swallow cash and donations dried up. Last moth it was placed into voluntary liquidation after a rescue plan requiring more cash was rejected by the Government.

Yesterday, Labour’s communications spokesman Tommy Broughan said the closure needed to be investigated fully.

“Comptroller and Auditor General John Purcell must now evaluate urgently all the facts which contributed to the failure of the MLE project including the rapid turnover of chief executives, the lack of academic and commercial vision for the project and the responsibility of the Taoiseach for the debacle,” Mr Broughan said.

“The closure and liquidation of Media Lab Europe was a serious setback to the area designated as the Digital Hub and it is important that a new research entity based at the MLE facilities be developed as soon as possible.”

Communications, Marine and Natural Resources Minister Noel Dempsey told the Dáil earlier this month that he was not opposed to an inquiry about Media Lab’s finances, but said there was no allegations of “any wrongdoing” at the venture.

Fine Gael’s Dublin MEP Gay Mitchell has also called for the closure, which saw 45 researchers lose their jobs, to be investigated.

Last week, Mr Dempsey confirmed that it was looking to establish a new research entity at the Media Lab site. The department has appointed independent expert Dr Tom Higgins to advise on the new research facility.