Address by Mr. Noel Treacy, T.D., Minister for Science, Technology and Commerce, at the Launch of the Feasibility Study for the Distributed E-Commerce Support Centre Project in Enterprise Ireland, Galway on 24th, January, 2000 at 12 noon

Introduction I am delighted to have the opportunity of addressing you all, at the launch of this feasibility study which has the potential to play a very important role in the development of this region. I would like pay tribute to those who, through their vision and energy, are ensuring that the Western Region will become fully signed up members of the information society.

This Government is giving ever increasing prioritisation to one of the most important and far reaching issues facing us all today - that is the utilisation of information and communication technologies (ICT's) in order to benefit Irish business, Irish competitiveness and indeed Irish society. In particular, I think it's very important that we maximise the potential benefits that ICT's can bring in terms of regional, social and economic development.

Information Communication Technologies ICTs are revolutionising the way in which all enterprises, whether in the so called high tech or traditional sectors, do business with their customers. Now, even micro enterprises have meaningful access to global markets and customers; and, with the assistance of the new technologies, have a realistic possibility of discerning and meeting their customers' many demands. The ready availability to business of this type of market information is unprecedented and has major implications for the structure of, management of and employment in, all modern enterprises.

We can already see some spectacular examples of E-Commerce at work in this region. We have seen local traders become global players almost overnight. Malachy Kearns bodhrans in Roundstone and Kenny's bookshop here in Galway City are perfect examples of how E-Commerce can bring traditional commerce to new heights. I am sure that we are only a short step away from seeing server farms nestling side by side with our more traditional dairy farms.

The change processes being driven by ICT's, while demanding highly skilled workforces, have the potential to shift employment up the value chain regardless of sector, and to a certain extent make such employment more secure.

In the day-to-day interchanges of networked businesses and networked customers, entrepreneurial opportunities and innovative activities will evolve where value can be added in the supply of both goods and services. The challenge for the software and telecommunications engineers, content developers and marketers, is to be at the interface between enterprise and customers with market led e-business solutions.

Companies and countries which fail to adapt to the new exigencies of the digital economy will be marginalized from it.

To paraphrase the wisdom of the experts "in five years time there won't be any Internet companies because they will all be Internet companies or they won't be companies at all."

Government Policy If we are to successfully bring the west "on-line" in the new information society, there are a number of critical success factors. They are as follows:

• access to broadband connectivity throughout the regions.
• creating the awareness, knowledge and skills necessary to create and fully exploit the opportunities in E-Commerce.
• creating a business and regulatory environment conducive to investment, innovation and entrepreneurship

Connectivity It was recognised by this Government that Ireland's ability to move quickly to invest in and adapt broadband services would be one of the major influences on future competitiveness in the digital age.

In November of 1998, this Government authorised negotiations with prospective suppliers of global connectivity. Less than eight months later, agreement had been reached with one such supplier, Global Crossing.

This new state of the art telecommunications project will provide city to city broadband access to 24 European cites and to the USA. It will involve the construction by the middle of this year of 2 telecommunications cables to the UK and the potential capacity of the cable will be 15 times the international capacity out of Ireland at this moment.

In July last, our Government announced, in conjunction with the international connectivity deal, an agreement of 9 contracts for the roll-out of broadband infrastructure to over 120 centres throughout this country.

This will provide for high capacity optical fibre to the west of Ireland including :

• Broadband access increased to 70% in this region.
• Provision of optical fibre and broadband access nodes to service 75 small urban centres from Sligo to Cork. It is expected that the percentage of rural customers with access to the national broadband network in this region will increase from 50% to 70% as a result of this project.
• Optical Fibre deployment from Athlone to Claremorris, Ballina, Sligo and intermediate towns.
• Construction of a high capacity fibre optic digital corridor linking Dublin, Athlone, Ballinasloe, Loughrea, Oranmore, Galway and Shannon and 30 locations enroute.
• Installation of a 95km high capacity fibre optic cable along the west coast of Donegal from Bunbeg to Donegal town and from Dunfanaghy to Falcarragh serving all communities along this route.

The roll-out of broadband infrastructure to the regions, scheduled for completion by June next, will significantly enhance the attractiveness of these areas from the perspective of attracting quality industry.

The improvement in telecommunications infrastructure throughout this country has the potential to create new and varied opportunities for many people across all Ireland.

Education, Skills & Awareness Investment in our technological infrastructure must be accompanied by investment in our people. In response to the Expert Group on Future Skills Needs, this Government has allocated a total of IR£411 million to various educational initiatives designed to develop appropriate skills, to promote innovation, and to provide an additional 5,400 new third level college places in high technology courses over the next 4 years.

Another positive development is the participation of FÁS in the recently launched FIT - Fast track to IT - an initiative by us to help some 3,500 long-term unemployed persons to secure a job in the IT industry over the next 3 years as well as helping to meet emerging skill shortages.

Regulatory Environment For E-Commerce to grow in Ireland, there needs to be confidence and trust in the system. E-Commerce also needs a secure regulatory framework that both enables E-Commerce and promotes and encourages growth in this very important area.

Our Department, in conjunction with the Department of Public Enterprise, is working to finalise a draft Bill to give legal effect to electronic signatures, writing and electronic contracts. This Bill will be published very soon and I am confident that this piece of legislation will be the best and most advanced and comprehensive of its kind. There are only a handful of countries in the world that have this type of legislation. Although others are making similar claims, I am sure that our legislation will make us the best place in the world to do e-commerce.

The new Bill will give the same status to electronic signatures, electronic writing and electronic contracts as their paper based counterparts. The Bill will also provide legal certainty for the conclusion of contracts electronically and the admissibility in court of electronic evidence in civil cases. It will underpin and give security to the new ways in which business is transacted over the Internet.

National Development Plan The recently published National Development Plan 2000-2006 recognises the need for a greater focus on regional policy. Included in it's provisions is the allocation of IR£84m towards E-Commerce initiatives in this BMW region. This is 70% of the national budget for this area. It is part of an integrated approach that this Government are taking to improve the business environment in this region, so that it will become a more attractive prospect for investment.

The Plan also includes funding of some £1.95 bn for RTI activities across all Government Departments and Agencies. As Minister for Science, Technology and Commerce, I am particularly pleased that a sum of £1.2 bn is being provided for RTI activities linked to Industrial Development under the Productive Sector Operational Programme. A three-pronged approach to investing in RTI covering: (a) RTI for Industry ; (b) RTI Collaboration between companies and between Third Level Researchers and Industry and (c) developing the RTI Infrastructure in Ireland is set out in detail in the Productive Sector OP.

These inter-related headings have the aim of re-positioning Irish industry higher up the economic value chain, thereby improving overall competitiveness in the context of globalised markets.

Collaboration with Newfoundland The inherently global nature of modern communication technologies will shrink the planet and do away with the obstacle of distance. This presents us with a great opportunity of developing trading links with other parts of the world. One such trading link being developed at present is with Newfoundland.

Ireland and Newfoundland have close historical links and indeed Newfoundland shares many of the same characteristics of our own region, here in the West. A visit to Newfoundland in September last by 20 Irish companies yielded discussion on 39 projects and follow-up action on a number of these is progressing. This is an indication of what can be achieved through effective collaboration.

The Feasibility Study which we are launching today, has taken a long time to put together. It would not have happened were it not for the determination of a few key individuals. But before I thank them, I would like to share with you the origins of this project. In September, 1998, I visited the province of Newfoundland and Labrador as I had heard that they had made great strides in using technology to bring services and jobs to very remote rural areas. I was very impressed with what I saw and encouraged a delegation from the Province to visit Ireland and attend the TWI Conference in November, 1998, which I was addressing.

At the Conference, I brought a group of experts from both countries together and challenged them to co-operate on a project which would be of mutual interest and benefit. Innovative projects sometimes find it difficult to secure funding as they do not readily fall into categories which are eligible for funding. It took nine months of persistence, determination and expertise on the parts of Ms. Una Murphy and Mr. Jack O'Herlihy to bring this project to a stage where Enterprise Ireland were able to fund this Feasibility Study. Congratulations also to Enterprise Ireland on having the foresight to fund this project.

Before I finish, I would like to say a few words about the Feasibility Study. The primary objective of the project is to strengthen rural economies through the effective application of ICT to enable rural enterprises and communities to fully participate in an reap the benefits from the emerging E-Commerce environment. I personally hope that you are successful in achieving this objective, as I consider that E-Commerce is capable of delivering jobs to where people want to live rather than the other way round. Representatives of the Newfoundland side of the partnership are coming to Ireland early next month. Hopefully, I will be able to meet them to get a progress report from their point of view.

On that optimistic note, I will finish. All that remains is to wish all the participants in the project my best wishes. I look forward to receiving the results of the study in due course.