Bernard Durkan (Kildare North, Fine Gael)
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Next is Deputy Lawless, who is substituting for Deputy O'Dea.

James Lawless (Kildare North, Fianna Fail)
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What measures are being taken to make Ireland a hub for EU technology regulation? There is a great opportunity there. We have already stepped into many areas, including data protection, but there are many other aspects we can embrace.

Dara Calleary (Mayo, Fianna Fail)
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The national digital strategy was launched in February 2022. It restates the Government’s commitment to making Ireland a well-resourced, modern and coherent regulatory framework for digital technology. Advances have been made across many fronts in this regard. We are committing the resources needed by our regulators to operate successfully. For instance, the Government has approved an allocation of €2.7 million to my Department for 2023 to fund Coimisiún na Meán in its lead role for implementing the EU’s Digital Services Act in Ireland. This funding has allowed recruitment to be progressed for a commissioner for digital services and for other staff so that Coimisiún na Meán has the resources available to undertake preparatory work and ensure that Ireland is fully equipped for the implementation and enforcement of the Digital Services Act by 17 February 2024, when it comes into full effect. My Department is now working to identify what resources will be needed for Coimisiún na Meán after 17 February 2024 when the Digital Services Act's full enforcement network is up and running.

I am mindful, however, that we need to avoid duplication of activity across regulators. On that basis, I am looking at assigning some functions under the Digital Services Act to regulators whose expertise can be leveraged to implement specific elements of the Act. Key to implementation of a coherent regulatory framework in Ireland has been the establishment of cross-government co-ordination structures, such as the senior officials group on digital issues, which reports to the Cabinet committee on economic recovery and investment. My Department has a central role on that group. There is also regular engagement between that senior officials group and the four main digital regulators, who are represented as the digital regulators' group.

Across Government, we continue to strongly advocate for, and seek to defend, the country-of-origin principle across digital files in our negotiations in the EU, so as to ensure regulatory certainty for business. Furthermore, as an EU member, we engage with international regulatory dialogues such as the EU-US Trade and Technology Council.

It is imperative that we continue to demonstrate Ireland’s commitment and ability to be effective digital regulators. As further EU digital regulations come into effect, we will continue to ensure that our regulators are equipped with the skills and staff needed to deliver on their specific functions and co-ordination activities to ensure a coherent digital regulatory framework is available for businesses. In so doing, we will build Ireland’s reputation as an effective digital regulator and secure our future position as a hub for EU technology regulation.

James Lawless (Kildare North, Fianna Fail)
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For a long time, the digital space was an emerging and new frontier that was a bit of a wild west at one stage. Thankfully, now a multitude of regulation is coming down the track. I am thinking of the Digital Services Act, which the Minister of State mentioned, the Digital Markets Act, the Data Governance Act, the AI directive, which we discussed in the context of the previous question, and the AI liability directive that is coming hot on the heels of that. Later in 2024 or in 2025, we will have the cyber resilience Act and the European health data space. A plethora of legislation and regulation is coming from Europe, which is very welcome and overdue in some cases.

There are also opportunities for Ireland in that. We have already established ourselves as the lead regulator for data protection. That also brings benefits not just for companies in Ireland but in attracting business to Ireland because companies can benefit from that one-stop-shop framework. If we have the European regulator under one Irish roof, it strengthens the attractiveness of the proposition of Ireland as a centre of excellence and a centre to locate and create jobs for those companies, many of which are already here. We can leverage that if we can put our best foot forward as a regulatory hub.

Dara Calleary (Mayo, Fianna Fail)
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It is definitely worth considering. In order to achieve that aim we need to put our best foot forward particularly regarding the Digital Services Act. We are preparing to have effective and ambitious implementation of the Digital Services Act to ensure that Coimisiún na Meán has the appropriate resources. Inevitably, there will be teething problems. We need to be ready and flexible to deal with those should they arise. I acknowledge the extraordinary work of my officials in the digital unit in my Department across a range of files to ensure that Ireland is not just on top of them but ambitious in how we implement them and ambitious in taking on the role of European regulator.

Bernard Durkan (Kildare North, Fine Gael)
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I will allow a supplementary question from Deputy Ó Murchú.

James Lawless (Kildare North, Fianna Fail)
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The Minister of State mentioned the country-of-origin principle which is of interest. He also mentioned other EU states. What is the attitude to that principle vis-à-visIreland from other member states? Are there any tensions or frictions that we should be aware of? Is that widely accepted?

On a related theme, it is important that in applying the country-of-origin principle, we should draw the benefits in every sense to avoid a brass-plate situation where a service is being booked through Ireland without the jobs to support that because the value add could be happening elsewhere. It is in everyone's interest that not only would the service be booked, but that the revenue would be paid, the employment would be created and the value-added activity would take place here in Ireland. To be fair, I think that is largely the case, but it is something we need to be mindful of. What is the view in other EU parliaments towards us in that regard? Is there any issue with the country-of-origin principle? Will it be a challenge for us in the future?

Ruairi Ó Murchú (Louth, Sinn Fein)
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We all understand the importance of the tech sector in Ireland. We are a major hub, not only from a European point of view but also from a global point of view. Obviously, regulation is vital. The difficulty is that there has not always been a great relationship when regulation and legislation meet technology. We just spoke about artificial intelligence. We all know there are great advantages in the medtech sector, but we also know the dangers. Some of the jobs that have been displaced in the tech sector are down to AI; it has already happened. We need to ensure we are on top of the regulation.

Based on what has happened in the past, we know the issues with cyberattacks and disinformation, particularly relating to elections. We need to get to grips with - the Digital Services Act is part of it - the algorithms that social media companies have. They are weaponised and used by state and non-state actors and are not necessarily useful. We need to get on top of this while at the same time, as the Minister, Deputy Coveney, said, needing to keep it between the ditches. We know the advantages that we have had and will have from tech in the future.

Dara Calleary (Mayo, Fianna Fail)
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I thank both Deputies. It is good to see Deputy Ring in the Chair.

For the information of the House, the country-of-origin principle means that the business activity is regulated in the EU by the member state in which it is established. That has been a core principle of the Single Market, which came into existence for 30 years ago. It goes back to the pre-digital economy. That continues to be something not just for the Single Market but also for the digital Single Market. Ireland strongly believes that companies will have the regulatory certainty they need to do their business. Citizens also need to have regulatory certainty. To uphold their rights, they need to know which national law applies and that these are dealing with that rather than having to deal with 27 different regulators.

We are strongly pushing our position regarding country of origin. It is a core aspect of the Single Market. We are continuing to engage and we have many like-minded partners at EU level in respect of this matter. We continue regular engagement, not just in Brussels but also here in Dublin, to ensure that our position on country of origin is strongly supported.

Regarding Deputy Ó Murchú's point, on a previous question we mentioned that we are now at full employment after 20 years of digital transformation. We will put the guidelines and guardrails in place to protect citizens.

Equally, we need to embrace the opportunity presented by AI, and have the ambition and confidence people in this House had 20 years ago, to embrace the kind of digital economies now central to our economy.