The government is to dissolve the Digital Hub Development Agency and transfer its extensive property portfolio in Dublin 8 to the Land Development Agency.

The decision comes on the heels of a Grant Thornton review of the DHDA which concluded that the robust character of the digital technology sector means that the support provided by the DHDA is no longer necessary, so that either it should receive no further Exchequer funding or be dissolved.

The agency last published an annual report for 2018, when the taxpayer subvention was c.€1 million

The review asked the questions:

• Is the DHDA required in order to meet a socio-economic need?
• Are the original rationale and functions of the DHDA still valid having regard to developments in the market?
• What is the DHDA’s relationship to the rest of the digital ecosystem, including consideration of the range of public and private supports for that ecosystem?
• What is the social and economic value added by the DHDA?

In Association with

Grant Thornton concluded that changes since the DHDA was set up in 2003 mean that its services and functions no longer add to the development of digital tech in the capital, or the Liberties area.

The review said: “The findings of the market gap analysis are that the DHDA is not required in order to sustain the continued growth and development of the Irish digital tech sector.

“There is no evidence to suggest that the continued growth of the Irish digital economy is sustained by the services provided by the DHDA. For these reasons, all of the options considered either dissolve the DHDA or remove the requirement for Exchequer funding of the Digital Hub.”

The DHDA said it is “deeply disappointed” by the decision.

Chief executive Fiach Mac Conghail (pictured), the former Abbey Theatre boss, commented: “The DHDA’s priority now is to minimise the impact of the dissolution on our companies, local community and staff. The Digital Hub will remain open for client companies and maintain its existing community programmes until at least the end of June 2022.

“We will continue to support our companies and our partners for the next 14 months, and in the coming weeks we will agree with the Department of the Environment, Climate and Communications and the Land Development Agency the schedule for an orderly transfer of ownership.”

The number of companies operating at the Digital Hub is 31 at present, employing 270 people in the Thomas Street/James’s Street area of the city. According to the hub, 13 out of 23 units are occupied and active, the other ten inactive.

The DHDA controls an extensive property portfolio, much of it unoccupied and undeveloped, as per map below.