John McGuinness (Carlow-Kilkenny, Fianna Fail)
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93. To ask the Minister for Communications, Energy and Natural Resources the position regarding the introduction of a business online voucher scheme. [20231/13]

Pat Rabbitte (Dublin South West, Labour)
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A report commissioned by the European Commission estimated that traditional enterprises with a strong online presence grow twice as fast, export twice as much and employ twice as many people as those who do not. In Ireland, Irish consumers spend almost €4 billion per annum online and yet the proportion of SMEs trading online is estimated to be as low as 23%.

One of the key objectives of the forthcoming national digital strategy will be to address this challenge, and get some 2,000 small businesses trading online. As a first step, I intend to pilot a voucher scheme that will provide upfront funding for small businesses to help them develop an online trading platform. The proposal will support, in the first instance, an independent evaluation of the business’s online needs and capacity and identify what steps will be taken for that business to commence trading online. The voucher will be based on a competitive process and will be awarded to businesses which show a significant potential for developing a capability to trade online. It will support businesses where digital adoption has traditionally been weak and where the prospect for real gains in competitiveness and growth is established.

Working with Mr. David Puttnam, whom I have appointed as Ireland’s digital champion, I intend to engage with industry service providers with a view to assisting small businesses in realising the full benefit of this initiative. I am aware that the commercial sector has been actively working with the business community on a variety of online initiatives and I look forward to working together to help Irish businesses gain competitive advantage by maximising online opportunities for trade.

Michael Moynihan (Cork North West, Fianna Fail)
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This is a vital initiative. Traditionally, there have been a raft of industries that would have worked very well but have been slow to move on to the digital age. There is also a generational gap. The younger generation, right up to middle age, go online to look for everything. It is vital to encourage this approach. It is the same in the marketplace. It is like the development in traditional rural communities from the fair to the mart in terms of getting one's name and business out there. I commend and support the initiative but a lot more should be done to get the message out there for small industries in order to have them completely fitted out from a technological viewpoint.

Pat Rabbitte (Dublin South West, Labour)
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I thank the Deputy for that support, as it is important that Members are perceived to have a bipartisan approach in the House on this issue. As the Deputy noted, there is a digital divide but regardless of whether it is acknowledged, almost €4 billion in business was done last year through e-commerce. Moreover, approximately €3.7 billion of that goes outside the State and, in such circumstances, there is no point in complaining about the phenomenon. The small and medium-sized enterprise, SME, sector in Ireland must prepare itself to compete for the business. In this context, the fact that only 23% of SMEs are estimated to be trading online is a matter of concern. Consequently, as Deputy Moynihan has noted, the thinking behind the initiative I have just announced is it is intended to encourage businesses that could profit from trading online to so do. As I indicated, the figures show that small enterprises which have a strong online presence grow twice as fast, export twice as much and employ twice as many. This really ought to speak for itself.