November 2014 45
G
ETTING it right next time” was the
theme of the 15th Cleraun media con-
ference, as academics and journalists
jousted over what went wrong during the
Celtic Tiger, whether the media could have
done more to warn about the dangers of the
boom, and what to do next time.
Many felt commercial media were compro-
mised by property advertising, to the extent
that evidence of a problem was ignored.
There was debate over whether journalists
could be blamed when most economists had
also failed to predict the crash.
But when it came to ‘Getting it right next
time’, the focus was on better economic
reporting to spot the next bubble/crash.
The trouble is, when history repeats
itself, it is as carbon copy. The next bubble
is unlikely to be property. The generals are
preparing to fight the last war, but a glance
at coverage of the latest trends in the Dublin
property market illustrates that the claims
of estate agents and economists are being
scrutinised as never before.
Meanwhile, data protection has become
a big issue for multinationals, and there are
signs that Ireland is losing out.
On the day the Cleraun conference opened,
Amazon announced it was offering its corpo-
rate customers the option of running internet
services and holding data in Germany, in a
bid to reassure European businesses nervous
about the threat of online spying in the US.
Microsoft announced in mid-September
plans to host a new data centre in Germany,
which would hold data on its German cus-
tomers, secure from the prying eyes of the
NSA. Oracle announced a further two data
centres in Frankfurt and Munich at the end
of the month.
Those announcements should worry the
IDA. Microsoft and Amazon already have
data centres in Ireland, and EU laws are
supposed to mean that the data protec-
tion regime in Ireland is as strong as that in
Berlin. But cases like Europe v Facebook have
demonstrated that the Irish data protection
commissioner is severely under-resourced,
and the image of the commissioner’s head
office located above a supermarket in
Portarlington thanks to Charlie McCreevy’s
decentralisation brainwave, did not go down
well overseas.
The 2015 budget saw no change in the
amount to be spent on the Data Protection
Commissioner’s office, though it has been
promised a new office in the capital.
It may seem counter-intuitive, but tech-
nology companies actually want stringent
regulation. While Google may complain
about the Right to be Forgotten, the corpo-
rations who entrust their data to the cloud
know they have to demonstrate their data is
secure. One consultancy firm estimated that
American companies could lose up to $35
billion (€27.5 billion) to overseas companies
by 2016 because of their customers’ worries
about state spying. And with a New York fed-
eral court ordering Microsoft to hand over
data stored in Ireland to American investi-
gators, there is a business case for storing
data in jurisdictions with a strong ethos of
data protection. And that is more likely to
mean Germany than the ‘Wild West’ of light
touch, Ireland.
Yet, since the Snowden revelations, while
data protection, privacy, and surveillance
have become major issues in Europe leading
to increased friction between the EU and US,
no Irish media outlet has assigned journal-
ists to cover the data beat. While groups like
Digital Rights Ireland successfully take the
Irish government to the European Court of
Justice over excessive EU-mandated mass
surveillance, technology cor-
respondents are more likely
to report on the latest iPhone
launch, business correspond-
ents obsess over the corporation
tax rate, and legal correspond-
ents rarely venture outside the
national courts. It is left to a
few reporters such as the Irish
Times’ Karlin Lillington to doc-
ument the changing legal and
technology landscape.
Noonan’s budget did recog-
nise the importance of data to
the corporate sector. The new
6.25% ‘knowledge develop-
ment box’ tax rate, touted as
a tax incentive to companies
to develop new technologies
in Ireland, will apply to “cus-
tomer lists”, according to the
draft Companies Bill published
days later. But with data at risk
if stored in Ireland, that may not
be enough, particularly since the
knowledge box is not a purely Irish innova-
tion, with similar schemes already in place in
the United Kingdom and the Netherlands.
In taking an approach based on tax incen-
tives rather than properly implemented
regulation, Noonan too is in danger of pre-
paring to ght the last war. •
CLERAUN CONFERENCE MEDIA
It will be over data protection
not economic reporting.
By Gerard Cunningham
Journalism must ght the
next battle, not the last
No Irish
media outlet
has assigned
journalists
to cover the
data beat.
Technology
correspondents
are more likely
to report on the
latest iPhone
launch
“