EBay to go ahead with Dublin project

US internet giant eBay is understood to have approved a significant operations project for Dublin, despite anger at Government refusal to provide funding for a Dublin, rather than regional, initiative.

But the hugely successful online auction site is understood to be unhappy with bureaucratic hurdles created for the project by the Government and the IDA's Irish executive, particularly given the overwhelming support Silicon Valley search engine company Google received when it chose to locate its European operations in Dublin.

It is understood that eBay wanted to base a significant Irish operation in the Liberties' area Digital Hub site but was refused support for such a move. The hub is being promoted by the State as a centrepiece for digital media investment.

People close to the project say that eBay - one of the most recognised names in the internet business world - was so frustrated by the IDA's insistence that it abandon its Dublin plans that executives requested a meeting with Tánaiste and Minister for Enterprise, Trade and Employment, Ms Harney.

Ms Harney is understood to have backed the IDA position, and eBay was told that it would not receive Government funding and other investment enticements unless it sited elsewhere in the State.

According to an informed senior source familiar with the project, following the meeting with the Tánaiste, eBay returned to pursuing other European locations, including Scotland, for its proposed operations.

Hundreds of technology-sector jobs have been lost in companies in Dublin and the regions since the start of the year.

The IDA confirmed yesterday that it had been in discussion with the company for over six months, and had initially pushed for a regional investment.

The matter was "still in active discussion", according to a spokesman, and if a project was of a "certain kind that needed to be in Dublin", accommodation could be made.

"Grant offers for Dublin would be minimal anyway, but if it was a matter of Ireland Inc winning a valuable investment, we would keep discussions open," he said.

He expected discussions to be concluded in a month or so, he said.

According to a senior source, the company is known to have been working with a well-known Dublin estate agent to find a suitable property in Dublin.

The project is believed to be significant, involving Web operations. An eBay spokesman in California said the company had no announcements to make at the moment.

The company's European headquarters is in Berne, Switzerland., and the spokesman said that all eBay's global sites were currently managed from its San Jose base.

EBay has a $36.5 billion (€31.7 billion) market capitalisation, making it one of the five most valuable public companies in the Silicon Valley region, alongside Intel, Hewlett-Packard, Oracle and Cisco.