The Government will not "bail out" the prestigious research institute MediaLab Europe (MLE) on an ongoing basis, the Minister for Communications, Mr Dermot Ahern, has said, writes Jamie Smyth, Technology Reporter.
But Mr Ahern, the Minister with responsibility for the Government's joint venture with the Massachusetts Institute of Technology (MIT), said he was considering ways to help the laboratory with its current shortfall.
He said the Government was involved in talks with key agencies, such as the Higher Education Authority, Science Foundation Ireland and Enterprise Ireland, about possible funding alternatives.
There is a possibility of attracting funding from the Programme for Third-Level Research in Ireland (PRTLI) scheme, said Mr Ahern, who will update the Cabinet on MLE's funding crisis as soon as it meets next.
"Whatever we do, we have to ensure the business plan into the future is based on a sustainable model. This issue of being bailed out on an ongoing basis by the taxpayer is just not on," he said.
MLE, which is a pet project of the Taoiseach and is the anchor tenant of the State's ambitious Digital Hub project, could run out of cash next year.
Last week The Irish Times revealed that MLE has asked the State for €10 million "bridging finance" to cover a major shortfall in the amount of corporate donations that it has received so far. The institute, which was founded in 2000 at a cost of €35 million to the State, originally planned to be self-funding after five years but has been hit by the economic downturn in the technology sector.
In an interview yesterday, Mr Ahern said the issue of corporate governance and management of MLE would also have to be examined. But he rejected any suggestion that the original idea of setting up MLE was a poor one.
"The concept of having an MLE is excellent but the type of funding model going into the future and the type of relationship that it has with other Irish universities must change."
Mr Ahern said he was proposing closer links between Irish colleges and MLE and is investigating how Enterprise Ireland client firms could access some of the intellectual property created at MLE.
The Government would also continue talking to MIT in Boston to see how they could assist the Government in creating a sustainable laboratory, said Mr Ahern.
Earlier this week, MLE said it had signed a new partnership agreement with the Highlands and Islands Enterprise Network in Scotland. The two-year deal will provide €300,000 a year to MLE.
