The first comprehensive report to map a Government strategy for promoting the growth of e-commerce in the Republic was released yesterday by the umbrella group for industrial policy development, Forfas.
The report on e-commerce "represents a pragmatic menu of actions for government, the agencies and enterprise", said Mr Michael McKenna, assistant general secretary, Department of Enterprise, Trade and Employment, who chaired the report committee. He said it offers guidelines on "how to develop the business environment so [Ireland] will become the most competitive e-commerce environment in Europe".
However, the report avoids describing such an environment as an e-commerce "hub", the term favoured by several ministers and the Taoiseach.
Instead, it says the Republic more modestly could become "a niche player in key areas of electronic commerce". The report also suggests the State could be a world centre for the distribution of software over the Internet.
According to the report, "One of the most significant drivers of enterprise over the next three to five years will be e-commerce and the information and communications technologies that support it. Ireland's success in exploiting the opportunities involved will be a critical determinant of future growth in competitiveness, income and employment."
Mr McKenna said: "If we don't seize the opportunity we will be massively under threat."
Analysts' figures suggest the Internet is not only replacing many traditional forms of commerce but also generating up to 20 per cent commercial growth per annum, the report says. E-commerce is already estimated to have reached the value of $102 billion (€96 billion) globally in 1998 and analyst Forrester Research predicts a business-to-business e-commerce market worth $1.3 trillion by 2003, with online consumer sales jumping from $15 billion in 1998 to $80 billion by 2002.
The report flags a number of concerns about issues which could retard e-commerce growth in the Republic and Europe, particularly in the areas of taxation, copyright, consumer protection, contract liability, the certification of companies trading over the Internet and online security.
Already, "Europe is dreadfully behind the States in the game", said Mr Gerry McGovern, managing director of new media company Nua and a committee member. Because the European Union has tended in the past to create a more regulated market than the US, "there's a real worry that if that continues, Europe will lose out rather than catch up," said Mr McKenna. Technology, pages 7 and 8
