Dáil Éireann Debate, Thursday - 30 January 2014
17. Deputy Dara Calleary asked the Minister for Communications, Energy and Natural Resources if he is concerned by the risk to employment in the traditional retail sector from increased online purchasing by consumers; the way domestic retailers can be supported to achieve a greater proportion of online sales; and if he will make a statement on the matter. [2962/14]
View answerAccording to the most recent CSO statistics available, some 75% of businesses in Ireland have a website. However, only around 1 in 5 Irish small businesses employing between 10 and 49 employees are currently selling online.
A recent international study by McKinsey indicated that businesses that use the internet to operate their business and sell to their customers can grow up to twice as fast, employ twice as many people, and are twice as likely to export as those that don't. They have also found that use of digital technology can displace jobs, but that for every job replaced 1.6 new jobs are created.
In the development of our National Digital Strategy, published in July 2013, my Department engaged Indecon to conduct research on the digital economy and its contribution and value to overall macro-economic activity in the country. That study found that Irish consumers spent almost €4bn online in 2012. However, 70% of this online business is going out of Ireland. The amount of online purchasing continues to increase.
In formulating a policy response to this issue, the Government's National Digital Strategy and 2013 Action Plan for Jobs commits to a trading online voucher scheme targeted at small and micro businesses. This scheme will see Irish businesses apply, through a competitive process, to receive a grant in the form of a voucher of up to €2,500 to support them to transition to trading online. The vouchers are designed to help small Irish business to take advantage of the enormous opportunity the internet can bring. Trading online will enable small Irish companies to access wider markets, to survive, grow and create jobs.
I secured additional funding of €5m in 2014 to enable the national rollout of the voucher scheme. The scheme is being piloted in Dublin at present. Working with Dublin City Enterprise Board, 25 companies have been supported by the scheme to date. A second pilot identifying another 25 businesses in Dublin will start in February followed by a full national roll out of this scheme later this year. I have set a target of distributing up to 1000 vouchers in 2014.
More information on this issue can be found on the Department's website, which has a dedicated section on the Government's National Digital Strategy.
