Foreword by the Tánaiste and Minister for Enterprise, Trade and Employment

Within 2 to 3 years the Internet will have created a single market of over 300 million computer-based consumers worldwide. Already, e-commerce transactions are estimated to be worth over $100 billion per annum. But by 2003, the value of these transactions is expected to have risen to at least $1.3 trillion per annum.

The use of advanced Information Communications Technologies (ICTs) has become the most significant driver of world economic growth. ICTs are the catalysts through which enterprise, whether traditional or new, can create sustained competitive advantage for its products and services on world markets.

Ireland’s enterprise culture is grounded in strong and consistent pro-enterprise policies. These include a stable political and policy environment, prudent management of the public finances, investment in key infrastructures, the provision of a well educated and flexible workforce, a successful system of social partnership, a low business corporation tax regime and the development of an open economy exporting some 81 per cent of GDP.

This Government recognises the need for a broad based, multi disciplinary approach to the new challenges presented by the Information Society. Five priority areas have been identified which must be developed to ensure our global competitiveness in the new digital economy:

1. Telecommunications Infrastructure and Costs
2. Education in the use of ICTs
3. Upskilling the existing business sector
4. Effective Regulation, and
5. Research and Development.

Decisive action has been taken by Government in all of these priority areas.

The telecommunications market has been liberalised a full year earlier than had been planned. Innovative Public Private Partnership arrangements have been put in place which will significantly enhance Ireland’s broadband connectivity to the global telecommunications network in the year 2000. Our strategy is to promote strong competition so as to achieve first class services at best OECD prices.

Investment in our infrastructure must be accompanied by investment in our people. The Government has allocated a total of IR£365 million to various educational initiatives designed to develop appropriate skills and to promote innovation. These initiatives include:

• An additional 5,400 new third level college places in high technology courses over the next four years at a cost of IR£75 million
• The Technology Investment Fund, which is making IR£250 million available over a three year period to renew and modernise third level infrastructure
• The Schools IT Initiative, under which the Government is investing IR£40 million to facilitate the integration of ICTs into Ireland’s schools, including the provision of hardware and support services in schools and skills development for teachers

In recent months, both FÁS and Enterprise Ireland have each launched initiatives to spread the e-commerce gospel. In 1999, FÁS will provide an additional 730 places in Electronic and Software Courses at a cost of IR£3.2m. Enterprise Ireland will spend some IR£2m per annum to assist indigenous firms to adapt their management and business processes to on-line trading conditions.

High-tech firms have not been slow to assist in the training and skills areas. The Fast Track to IT Initiative was set up with key IT industry participation – Corel, Microsoft, Oracle, Symantec, IBM and CSC. The project will recruit over three years 3,500 long term unemployed persons into areas in the IT industry experiencing skill shortages.

The provision of an appropriate regulatory environment will be a crucial element in establishing Ireland as an e-business hub. The Copyright Bill 1999 is expected to be enacted later this year, and my Department and the Department of Public Enterprise are publishing a consultation paper containing outline proposals for electronic signatures and electronic contracts as a precursor to legislation in these areas.

In Ireland, we have recognised the need for a deeper commitment to research and development by our industry, including much deeper and wider collaboration with Institutions of higher education. Ireland has just completed the first part of a Technology Foresight initiative to identify the technologies that will be important to us in the future. The establishment of centres of excellence in ICTs was one of the main areas identified for prioritisation.

Much work remains to be done in the immediate future if Ireland is to realise its goal as a world class centre for e-business. We have made a good start and no one should doubt our determination to complete the job. Business in Ireland needs a robust but flexible policy framework to rise to the new challenges in the Information Society.

The work of the Steering Group which produced this Policy Statement is an invaluable contribution to the creation of such a framework and helps to chart the way forward. I wish to thank all of those concerned for their time, insights and inputs to this Policy Statement.

Mary Harney T.D.,

Tánaiste and Minister for Enterprise, Trade and Employment