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Dáil Éireann debate -
Thursday, 20 Apr 2000

Vol. 518 No. 5

Other Questions. - Internet Trading.

Batt O'Keeffe

Question:

10 Mr. B. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that proposed EU legislation would interfere with the development of Internet trading in Europe. [8724/00]

A number of draft EU directives have implications for the growth of the information society and Internet trading. The directives cover the following areas: consumer protection, financial services, intellectual property and the Internal Market of the European Union.

The draft directive of most direct relevance to the development of Internet trading in Europe and for which our Department has responsibility is the Draft E-Commerce Directive. This is an Internal Market directive draft and confirms the freedom to trade information society services across EU borders. This legislation is designed to encourage and promote e-commerce and I am satisfied it will have the effect of promoting a strong Internet economy in Europe. Ireland strongly supported this directive and sought to ensure that it would create an open, liberal and regulatory environment for Internet trading. The draft directive is due to become law in June this year.

Ireland is well placed to take advantage of the Internal Market for information society services. When enacted, the Electronic Commerce Bill, which passed all Stages in the Seanad yesterday, will position Ireland as the first country in Europe to recognise in a comprehensive manner electronic contracts, electronic writing and electronic signatures. In almost all areas of business and public administration we are creating a legal equivalence between the paper world and the electronic world. This will enable Irish business to cut the cost and time taken to carry out business transactions. Businesses will now be able to sign contracts and carry out on-line business in a legally secure environment. The benefits to enterprises of embracing e-business are estimated to bring considerable savings. For example, the construction industry's Build-Online site is estimated to save Irish firms up to £1 billion per year over the cost of the traditional paper based way of doing business.

It can build houses on the computer.

It seeks information and gets competitive products and we hope it will be able to deliver better and cheaper houses to the consumer.

Without getting dirt on its hands.

Our Department also has responsibility for the Draft Directive on Distance Marketing of Consumer Financial Services. This directive is a consumer protection measure and sets out to underpin confidence in e-commerce for the financial services area. If e-commerce is to succeed it must have the confidence of consumers, particularly in relation to e-commerce transactions between business and consumers. Directives 97/7/EC on the protection of consumers in respect of distance contracts for goods and services and the proposed financial services directive, when adopted, will provide a significant boost for e-commerce in the EU by laying down a framework which will have the confidence of consumers.

The Minister of State has responsiblity for technology.

He is the nerd of the Government.

He is the Bill Gates of the Government.

I am not on the same salary as Bill Gates.

What proposals has he made at EU level to protect the rights of people to own their names? A large number of well known names have been bought and are being used on the Internet, some for appalling pornography and others for fun and games. What proposals does the Minister of State have in this regard?

What suggestions has he made during discussions on this legislation as regards safety and encryption so that people who carry out business transactions on the Internet will be sure that only they can use their Visa card account or bank account and that no one else can use their card to purchase items?

No one has mastered this yet.

Not even the Minister of State?

I am flattered by the Deputy's comments but she should allow me speak. No one has mastered this as of yet. We brought this to the European Commission's attention during our negotiations. There is no legislation, structure or regulatory environment which has been able to protect this. We are applying ourselves to issues such as the protection of names and hope to address it in subsequent legislation.

The Taoiseach does not know about this. He said no one can do this.

No one has mastered this problem yet and the Deputy should not interpret what I say. We are looking at the rights of individuals to own their names and to see if we can link new structures we may be able to create with existing law. However, that will not guarantee that it will stand up in the global world of communications. This is a vague, difficult, complex area and there is no simple solution. The issue of encryption will be addressed in subsequent legislation.

I am not suggesting that the Minister of State is responsible but I am disappointed that this matter has not been addressed before now. The area of drop charges may need regu lation. Is the Minister of State aware that charges can be advertised at 11p but can be 33p by the time the client gets through because the drop charge can be reconnected? Can this be regulated? This is an important area and providers are making excessive profits from drop charges.

If the Deputy listened to what the Minister said he would know that she, the Government and the Department are committed to introducing competition and are working on projects to ensure more competition in this area.

What about regulation?

I am talking about charges but the Deputy must understand that competition will bring about the reduction or elimination of these charges. This is one way in which we are addressing this issue.

We are involved in discussions with Eircom and others to see what can be done to make sure there is transparency in the charges imposed. Technology is evolving rapidly and we are in a state of evolution and this will continue. We must react to the situation as it changes. This is a complex issue and—

We must move on to the next question.

There is excellent co-operation between the Department of Enterprise, Trade and Employment and other relevant Departments. We worked together to ensure that we were the first member state in Europe to bring forward legislation and we will continue to work in this area.

We must move on to Question No. 11.

Are any gardaí trained to deal with this area?

We must move on. We cannot flout Standing Orders.

There are excellent people in the Garda but I am not sure if they have the relevant training. The Deputy should ask the Minister for Justice, Equality and Law Reform, Deputy O'Donoghue.

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