Exploit e-business to hone competitive edge, says IFSC

Ireland and the IFSC must move up the value-chain to retain competitiveness, according to a new report.

The report, E-Business in International Financial Services - Developing Ireland's Potential, which was prepared by the IFSC clearing house group, warned that e-business could facilitate the migration of simpler back-office tasks to cheaper locations.

But it added that e-business created opportunities for the IFSC by providing services using new delivery channels and new technologies.

The report's recommendations aim to help Ireland take advantage of the growth of financial services e-business.

Under the category "Getting the fiscal and regulatory environment right", the report concluded regulatory agencies should continue to ensure they could respond effectively to applications from new and innovative forms of international financial e-business.

The Government should examine all business law provisions to ensure there were no legal impediments to the expansion of e-commerce in Ireland, it said, adding that examination of possible tax barriers, such as bringing the VAT rate into line with the EU average, were necessary.

Ireland should take a leading role in all discussions within the EU and OECD, the report said.

Under the category "Getting the infrastructure right", it said the speed with which ISDN lines can be made available to customers needs to be increased. The availability of generalised "always-on" access, to homes and businesses throughout the State, with a variety of different bandwidth options to suit different needs, should be a priority, it said.

Under the category "Selling the message", the report said the financial services section of IDA Ireland should be fully resourced.