The Minister for Finance Charlie McCreevy is resisting required funding for the development of the Digital Hub, OnBusiness understands.
As a result the Government has decided to significantly scale back plans for the development of the new media centre which has the Massachusetts Institute of Technology Media Lab Europe at its centre, according to today's Business and Finance.
The Department of Finance refused to comment this afternoon.
OnBusiness understands that there has been strong resistance to spending the next tranche of money - about £30m - to purchase further property for the roll-out of the project. A plan to spend up to £100m on property for the development this year is now reported to be phased over three years.
Contracts have already been signed for the purchase of the Hopstore and nearby buildings from Guinness for £15m. MIT Media Lab Europe is already housed here.
The Digital Media Development Company - chaired by the former Secretary General of the Taoiseach's Department Paddy Teahon - wants to buy a three-acre site north of Thomas Street which contains the landmark 18th century windmill from Guinness.
Speaking to the Institute of Directors today Paddy Teahon said the Digital Hub was not a property development project. He said it would bring together 'creativity, technology and entrepreneurship to put Ireland on the map internationally' with activity to underpin income levels now reached in the country.
He strongly defended what he called 'justified risk-taking' in this project and Sports Campus Ireland, which he also chairs. He told OnBusiness that the national stadium complex would be delivered for £350m, not the £1bn which has been claimed as the true cost.
