Proposed new legislation on electronic commerce will provide for a fine of up to £500,000 (€634,870) to tackle abuse of electronic signatures and fraud. The provision is included in draft e-commerce legislation earmarked for Government approval this year.

The 38-page document details the draft heads of a new e-commerce bill following the publication of a consultation paper last August.

Submissions were received from about 40 independent organisations and individuals. It is understood there was widespread consensus that the proposed maximum fine of £80,000 for misuse of electronic signatures should be raised to £500,000.

"This is in response to industry comment. They feel that strong penalties will lead to confidence in the e-commerce system and thereby increase Ireland's attractiveness as an e-commerce centre," a spokesman at the Department of Public Enterprise said.

The Bill provides that electronic signatures, documents, and contracts be afforded the same legal status as their paper-based counterparts, and can be admissible as evidence in legal proceedings.

The far-reaching spread of the legislation gives it the power to enable electronically every piece of legislation on the statute books. This means the Government will not have to introduce special e-commerce legislation on a department-by-department basis.

The views of all ministers will be sought during a half-day fo rum this month, when the intention of the legislation will be explained. The e-commerce bill is one of the first to be drafted; Singapore has legislation in operation, and this Bill is believed to be loosely based upon it.

The Minister for Public Enterprise, Ms O'Rourke, told The Irish Times: "We are very glad this Bill was developed through a process of consultation, and I think it is very good it has been drawn up in a very light and flexible way. This will mean so much for business and government departments because we plan to conduct business electronically as soon as possible."

The Bill provides for the introduction and maintenance of a voluntary accreditation scheme for certification service providers (CSPs). CSPs will offer services providing secured authentication for electronic communications. It is intended that the National Accreditation Board will administer the voluntary scheme.

It also recommends a supervisory role be undertaken either by the National Standards Association of Ireland or the Office of the Director of Consumer Affairs.

Ms O'Rourke is understood to be keen to see prompt action on the Bill's passage through the Dail. She has requested government approval for the drafting of the Bill and has asked that it be given priority and early introduction in the Oireachtas with a view to enactment by Easter. The proposed legislation also provides that the Irish domain name registry process to be put on a statutory footing to allow the Minister to regulate it where necessary.

The Bill has been drawn up in anticipation of the EU's Electronic Signatures Directive scheduled for publication next year. It is planned the directive will slot in as part of Irish e-commerce Bill's wider remit.

The issue of attribution of electronic communication has also been addressed in order to assess whether electronic communications have really been sent by the person identified as the originator. Rules have been set out determining when and from where electronic communications are sent, and when and where they are received.