Ireland could become the major European base for international software companies' web sites, if the Government seeks to direct more EU structural funding into developing the telecommunications infrastructure, the chairman of IBEC's telecommunications group said yesterday.

Dr George Young of the DCC Group, in Brussels as a part of an IBEC fact-finding group to meet officials from the European Commission, said the Government had to increase the structural funding of broadband infrastructure development, ahead of market demands or the opportunity to create a major base for on-line sales of software would be lost.

Spending in the order of £25 million in the current structural funds round should be trebled or more, he said, arguing that such funding would be matched by industry.

Dr Young also expressed concern that the newly appointed telecommunications regulator has not been given sufficient resources to do her job. The regulator needed to be extremely active on several fronts, he said.

He reiterated IBEC's opposition to the Irish derogation until 2000 for competition in local phone calls, and urged the Government to ensure that legislation was brought in well ahead of the deadline.