Derry and Letterkenny Chambers Question Kelvin Location

Both the Derry and Letterkenny Chambers of Commerce have expressed surprise and concern at the decision to house the all important "Telehouse" that connects the Kelvin cable to the rest of the NW in Coleraine instead of Derry.

Janice Tracey, Chamber CEO said that it was her understanding that as a Gateway Initiative project, the Telehouse was to be located in Derry as the capital of the NW. "There is a lot of confusion in the city and wider region amongst our members about the apparent switch of location for this important element of the project. I have attended numerous briefings in relation to Gateway projects over the last year and certainly the impression taken from these was that this project was to benefit, and more specifically, differentiate the NW Gateway area - that is the Council areas of Derry, Donegal, Limavady and Strabane. Furthermore, every single person I have spoken to concurs with the view that from its conception right through the process until very recently this Telehouse was to locate in Derry."

The Letterkenny Chamber CEO, Toni Forrester shared these concerns but made it clear that this is not a case of Derry and Letterkenny against Coleraine. She commented "If other areas outside the NW Gateway areas can benefit, that is not something to be disappointed at. What we are extremely disappointed in is that this does not give the NW region the differentiation that the NW Gateway Initiative was set up to establish."

There is growing concern and frustration in the region from within the private sector that this project has manifested in a much different format that the original proposition presented by both governments.

Janice Tracey continued, "One of the key things we work closely on as Chambers is the provision of an optimum operating environment for our current and future members and this was to be one of our key attractors, one of the big wins we continually heard about from the Gateway Initiative team. She continued, "Whilst competing at a local level, it is clear that the location of the Telehouse in the city of Derry, as capital of the region, would be a much need attractor for investment across the gateway region. She stressed, "Our members tell us very clearly that proximity to the Telehouse is of paramount importance to companies making a decision to locate a datacentre and as known from experience elsewhere, these datacentres then attract further investment of the kind Derry is targeting."

In conclusion the Chamber CEO said, "It is time now to get clear and unambiguous answers to the questions that have been raised. We are meeting with DETI department officials to seek clarity on the change in direction and to request a reversal. In addition, and given that substantial funding has come from the Irish Government on this we have contacted and various Southern Ministers and Departments to seek their support.