The Minister for Communications, Marine and Natural Resources, Mr Dermot Ahern has announced that 10 per cent of his department's advertising budget will be spent on online advertising.
Calling on employers group, IBEC, the Dublin Chamber of Commerce and other business interests to follow suit, the Minister said there was too much lip service being paid to the Internet in the State.
Speaking at the Irish telecoms conference in Dublin, he said that to drive demand it was important to show that the Internet works.
"As a start I have directed my officials to set aside a minimum 10 per cent of my department's advertising spend to online advertising. It is a growing market and, as the Minister with responsibility for the communications sector, I believe we will be setting an example for other Government departments and agencies", he said.
Chairperson of the Internet Advertising Bureau of Ireland (IABI) Ms Mary Mangan said: "This is a fantastic indication of commitment to our medium. We at the IABI wholeheartedly welcome it."
Ms Mangan is also Chief Operating Officer of ireland.com.
Mr Ahern also said he was currently finalising his policy direction to the Commission for Communications Regulation. "Let me confirm today that the final policy direction will mandate flat rate Internet access".
Minister Ahern also announced the establishment of a Telecom Strategy Group, consisting of IBEC representatives, the Association of Licensed Telecommunications Operators (ALTO) and senior Department officials, which will report back to him in three months.
The group's role will be to advise on driving Broadband demand. "What I don't want from this group is telcos simply holding out their hands looking for taxpayers money to subsidise their services. To be blunt, in the present climate, those sort of demands are simply untenable.
"Over the next twelve months I want to kill one myth that this country cannot support profitable broadband because it can. My message is simple - cut prices - you'll bring in volume - you'll make money.
