"DEVELOPMENT OF GOVERNMENT ELECTRONIC COMMERCE POLICIES IN IRELAND."

I am delighted to be here this morning to participate in this seminar, which I am sure will be an informative and worthwhile event for all.

Dramatic advances in Information Communication Technology and the development of the Internet as a platform for E-Commerce are rapidly changing the shape of the world economy. Within 2 to 3 years the Internet will have created a single market of over 300 million computer-based consumers world-wide. Today E-Commerce transactions are estimated to be worth $22bn per annum. But by 2002, the value of these transactions is expected to have risen to $350bn per annum.

The magnitude of economic opportunities afforded by the advances in telecommunications technologies has pushed Information Society and E-Commerce issues to the forefront of the Governments agenda and I - and the Government as a whole - am determined that Irish business will be well positioned to reap the rewards from these developments.

This Government is taking a pro-active and integrated approach to meeting the challenges presented by the new technologies. These can be summarised under the following broad headings:

• - Infrastructure
• - Education, Awareness & Skills, and
• - Regulation and Legal Issues

Irish-based enterprises require access to broadband services at the same quality and cost as in countries with which we compete. We have an independent Telecoms Regulator who is aggressively driving competition. The initial public offering of shares in Telecom and the sale of Cablelink highlight the urgency and importance which is attached to this whole area. This Government is actively pushing for low cost internet access for Irish business and consumers alike in order to increase dramatically our internet usage levels.

The improved connectivity and increased competition in the newly liberalised telecommunications sector is expected to deliver the necessary competitive low cost telecommunications charges to Irish business.

• - An additional 5,400 new third level college places in high technology courses over the next 4 years at a cost of £75m.
• - The Technology Investment Fund which is making £250m available over a 3 year period to renew and modernise third level institutions infrastructure, and
• - The schools IT initiative under which the Government is investing £40m to facilitate the integration of Information Communication Technology - or ICT - into Irish schools, including the provision of hardware and support services in schools and skills development for teachers.

Awareness raising events are being held all around the country involving co-operation between various Government Departments, Agencies, the Information Society Commission, IBEC and the Chambers of Commerce. This is all part of a broader strategy aimed at building up a critical mass of ICT users in order to develop trust and confidence in E-Commerce for business and the population as a whole.

In particular, we feel that the SME sector has much to gain in this area. A national SME E-Commerce initiative is being developed by Enterprise Ireland. The objectives for this project are:

• - To assist up to 1,000 Irish SME's to take specific action in relation to their own companies and to provide them with practical knowledge of E-Commerce use and applications.
• - To provide companies with the definitive Irish based E-Commerce resource set, and
• - To build a community of interest around the E-Commerce theme and to successfully leverage this community to rapidly move Irish companies towards adapting successful E-Commerce strategies.

This initiative must be seen in the overall context of the promotion of Ireland as an attractive location for E-Commerce and related industries, and, the development of an indigenous base of key players in the provision of software, services and hardware for E-Commerce.

Ireland is actively participating in the development of an EU and Global framework for the regulation of electronic activities, particularly in the areas of digital signatures, encryption, electronic contracts and intellectual property.

At the EU level a proposed Directive currently being discussed aims to provide a common legal framework for E-Commerce activities throughout the Internal Market which will make it easier for business and consumers alike to transact E-Commerce across borders.

Concerns over issues such as confidentiality, authenticity, integrity and non-reputability must be dealt with in order to establish an enabling E-Commerce environment. The issue of security is a key concern and is being addressed as a matter of priority by this Government. This will enhance trust and confidence in Ireland as an attractive and secure location for E-Commerce.

The most widely-accepted way of addressing the security issues is to set up a system based on public key cryptography. Ireland's policy on cryptography and the use of encryption techniques, is based on the recognition that there is a balance between the rights of the individual in regards to privacy, the need to ensure security of communications, the development of the cryptography industry in Ireland, and the requirements of law enforcement agencies in regard to legal access. The regulatory framework will be flexible enough to allow future technological developments to be adequately catered for without changes.

Infact a Bill on Electronic Signatures and related e-commerce areas is currently being worked on and a Consultation Paper, containing the outline legislative proposals, will be published shortly by my colleague Mary O'Rourke's Department of Public Enterprise.

The proposed Electronic Signatures Bill aims to anticipate the EU Directive in this area. It will give parity of legal recognition and enforceability with conventional signatures to electronic signatures. It will cover related areas like electronic writing and it will also legislate for Electronic Signature Certification Services.

The Copyright and Related Rights Bill, 1999, - which I am currently piloting through the Seanad - brings Ireland to the forefront of international best practice in the area of copyright protection. The Bill is designed to achieve the following:

• - To put in place a modern, effective, technology neutral regime of statutory protection for copyright and related rights.
• - To transpose into Irish law a number of European Union Directives on the field of copyright and related rights, and
• - To bring Irish law into conformity with all obligations incurred under international law on copyright and related rights.

It should be emphasised that copyright is not a minor matter of regulatory law. Rather it must be seen as a fundamental element in the foundations upon which the modern Irish economy is built. Apart from underpinning the creation of an orderly market in traditional literary, dramatic, musical and artistic works, copyright is also the principal means prescribed in EU and international law for the protection of rights in computer software, which is protected, in effect, under the category of literary works.

The copyright and related rights area is also that prescribed by EU law for the affording of like protection to databases, another vital tool in the development of an information economy. In addition to this, neighbouring rights - such as those relating to films, sound recordings & broadcasting and performers' rights and rights in performances - provide a medium for the protection of a wide range of legitimate commercial interests in the media field. With the advent of the Information Society, it is clear that the commercial value of materials protected by copyright and related rights law to the economy is enormous. And that is without any reference being made to the vast cultural benefit derived by the community from the creation of the protected materials concerned.

Finally, I wish to stress to you today that this Government is working hard on all fronts to ensure the Irish public are comfortable in every-day interaction with the new technologies and that the Information Society agenda is to the forefront of Irish economic policy for the foreseeable future. We can, I believe, take great encouragement from the success of indigenous firms such as Baltimore, Trintech and Nua. Our aim now is to create an environment where many more of these companies can emerge. In this context alone I wish today's gathering well.

Thank you.