Taoiseach Bertie Ahern has strongly defended himself against charges that Media Lab Europe (MLE), which eventually went into liquidation with losses of €35 million, was badly managed.

The high-technology "seed bed", based in Dublin's Liberties, was run jointly by the Government and Massachusetts Institute of Technology (MIT), and was one of Mr Ahern's most favoured projects.

Clearly irritated by criticism of the project in a report by the Dáil Public Accounts Committee, Mr Ahern, through a spokesman, said that the project's "biggest single difficulty" was the tech-industry collapse in 2000/2001, shortly after MLE began.

The report, he said, had acknowledged "many positive aspects of MLE's existence", including its contribution as a key tenant in the Digital Hub. MLE had helped the local community by hosting the Intel Computer Clubhouse facility, and collaborated successfully with researchers from other Irish universities.

It was also used by the IDA to market Ireland abroad and "many leading tech companies", such as Google, Intel and Yahoo, have cited its existence "as a factor in their decision to locate high-value economic activity" here, the spokesman said.

"Whilst the value of these positive outcomes may be difficult to quantify, it is simply incorrect to say that €35 million was 'squandered'."

In addition, the MLE premises remained in State ownership and use. "As we move to greater levels of research and development activity in Ireland, international partnering with respected leading institutions, of which MIT is undoubtedly one, is an entirely legitimate and appropriate route," he said.