Dáil debates

Thursday, 10 July 2014

Ceisteanna - Questions - Priority Questions

Online Business Voucher Scheme

10:20 am

Photo of Seán SherlockSeán Sherlock (Cork East, Labour) | Oireachtas source

In the past decade the influence of the Internet on the economy has been growing steadily, about which there is no doubt. In 2013 Indecon Consultants estimated that digital‐related activities contributed 4.4% of GDP to the economy. The consultants predicted that this contribution would increase by 16% year on year. Almost 95,000 jobs are already supported by digital-related activities in the economy.

Notwithstanding this trend, CSO data suggest only 23% of small companies in Ireland are engaged in sales through e-commerce. The proportion is considered to be even lower for companies with fewer than ten employees. These companies are potentially losing valuable sales opportunities in both the Irish market and in selling overseas. It is estimated that Irish consumers spend just under €6 billion online annually, of which 60% to 70% goes overseas.

Encouraging more indigenous companies to engage in e-commerce is, therefore, a key objective of the Government’s national digital strategy and An Action Plan for Jobs. The 2014 action plan includes a commitment to roll out a trading online voucher scheme to 2,000 micro and small businesses by the end of 2015. The scheme is intended as a catalyst to support businesses to start trading online or improve their current online trading offering, rather than simply having an online presence and there is a qualitative difference. It provides successful applicants with a voucher up to the value of €2,500 to help meet these objectives. The value of the voucher must be matched by the applicant company. The trading online voucher scheme falls within the remit of the Department of Communications, Energy and Natural Resources. However, the vouchers will be administered by the local enterprise offices.

Following a piloting of the scheme by the Dublin City Enterprise Office at the start of the year, the Minister for Communications, Energy and Natural Resources announced the national roll-out of the scheme last week. Applicant businesses will be selected on the basis of their project plan, including their expected growth in jobs and exports as a result of trading online.

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