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National Digital Strategy

Dáil Éireann Debate, Tuesday - 12 February 2019

Tuesday, 12 February 2019

Ceisteanna (338)

Michael McGrath

Ceist:

338. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation her plans to provide for a merchants' incentive scheme as part of the new digital strategy; and if she will make a statement on the matter. [6993/19]

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Freagraí scríofa

A new National Digital Strategy, to help Ireland maximise the economic and societal benefits from digitalisation and its transformative effects, is currently under development.

The Strategy is being led as a shared effort by the Department of the Taoiseach; the Department of Communications, Climate Action and Environment; the Department of Business, Enterprise and Innovation; and the Office of the Chief Information Officer in the Department of Public Expenditure and Reform. An Interdepartmental Group, which includes representatives from all Departments, is also assisting the development of the Strategy. This approach reflects the broad spread of policy areas impacted by digitalisation.

A public consultation exercise, to allow citizens to influence the development of the Strategy, took place at the end of 2018. Over 300 responses were received. In parallel, consultations with stakeholders and experts to inform development of the Strategy took place.

It is intended that the new National Digital Strategy will set out Ireland's vision and ambition in the fast-changing digital world. It will set out a roadmap across themed pillars incorporating Digital Foundations, such as infrastructure and security; Trust, Society and Well-being; Effective Use of digital; and the Digital Economy and Labour Market changes. As well and focusing on national issues, it will place an emphasis on international and European linkages and help to position Ireland within the European Union, at the heart of digital developments.

While it is too early to comment on any specific initiatives that the Strategy may address, I have no plans to introduce a merchant’s incentive scheme.

It is recognised though that all businesses, regardless of size or sector, in today’s competitive environment must build their digital online capability. Accordingly, the agencies of my Department offer a range of supports to assist businesses to trade online.

The Local Enterprise Offices (LEOs) are the first-stop-shop front line service assisting in delivering business growth and jobs for the small and micro-enterprise sector. The LEOs are the first port of call for anyone who wishes to start or expand a business, in terms of advice, training, sign posting to other support providers and, in certain circumstances, grant support. The LEOs undertake a number of activities to encourage businesses to build their online presence and compete in the online market place.

The LEOs nationwide actively promote the Trading Online Voucher Scheme (TOVS) on behalf of the Department of Communications, Climate Action and Environment. The TOVS offers matched financial assistance of up to €2,500, along with training and advice, to micro companies (10 or less employees) who want to establish an online presence for the first time, or who wish to expand a basic existing website to incorporate a more substantive online trading capacity. Since the start of the scheme in July 2014 to date almost 4,500 micro companies have availed of the TOVS.

The LEOs also offer a wide range of short training programmes to support their clients in building their online presence and to compete in the online marketplace. These programmes are focused on different elements which aim at maximising outputs from investment in online trading such as:

- Marketing, focused mainly on development of an online/mobile marketing strategy;

- Social Media, with the majority of programmes focused on educating the client base on how to use the different social media platforms to support their business;

- eCommerce Sales Strategy, including how to convert website visits into sales; and

- Search Engine Optimisation, including web analytics and video optimisation for web.

As Chair of the Retail Consultation Forum, I have prioritised supporting the retail sector to develop their online capability and enhance their competitiveness. In 2017, data from the CSO showed that 66% of Irish enterprises in the Wholesale and Retail Sector reported having a website or homepage, with only 28% able to facilitate online ordering.

In support of this, the first call for the new pilot Online Retail Scheme administered by Enterprise Ireland, opened on 24th October 2018 and closed on 5th December 2018. Applications are currently under assessment by Enterprise Ireland. The Scheme launched with a fund of up to €625,000, which was later doubled to €1.25m as part of the Department’s 2019 Budget. A second call will issue this year (2019). The Online Retail Scheme will support retail businesses of 20 employees or more under the areas of (research, strategy development, implementation and training) who are ready to strategically grow their online capability.

In recognition of the strong role the retail sector plays in supporting regional development and vibrant communities, at least 50% of the total number of grants awarded will be reserved for retail SMEs with their headquarters outside of county Dublin.

More generally, Enterprise Ireland (EI) works with 5,000 manufacturing and internationally traded services companies, and building an online presence is part of the range of supports offered to those clients. EI has supported projects focused on developing innovative products on new product platforms for international markets. Working closely with the Irish Internet Association, EI delivers a range of funded and advisory eCommerce supports for its clients to develop their online marketing capabilities. In addition, EI regularly organises events which can connect clients with leading experts and inform them on best practice.

An additional €1.8m has been earmarked for the Design and Crafts Council of Ireland over the next 3 years. The proposed investment, again via EI, is to assist the sector to develop and generate additional export sales and online revenue opportunities, increasing market diversification by client companies and underpinning sustainable growth.

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