In using the internet for their business dealings, data controllers must take into account the privacy rights of individuals and their own responsibilities under privacy and data protection legislation.Under the terms of the Data Protection Act 1998, the Information Commissioner is able to serve enforcement notices upon a data controller who the Commissioner is satisfied has contravened or is contravening any of the data protection principles.

The Scottish Executive is working within the policy laid out in the UK Government's Authentication framework document in matters relating to authentication and security of electronic transactions over the internet. Authentication and security issues are also highlighted in the draft Information Age Government Framework which will set standards and provide guidance for the public sector.

The Scottish Executive has adopted a multi channelled approach to the delivery of public services and information. It has supported and continues to support a number of pilot projects which are exploring different methods of delivery to ensure further widening of access to services and information. Transcoding of individual data sources is enabling these sources of data to be delivered and accessed through a variety of channels. Through its 21^st Century Government Unit vision statement, the Scottish Executive puts the citizen at the centre of the process in ensuring that he or she is empowered to access information and services in his or her preferred manner.The Scottish Executive is also looking at different ways of improving general access to the Internet in Scotland. The Public Internet Access Points Initiative aims to put at least 1,000 extra public internet access points in areas of Scotland where affordable provision is currently poor. The Scottish Executive is also running a Digital Communities competition. This initiative will create pilot "digital communities", by connecting homes to the internet in two disadvantaged areas of Scotland. The objective is to assess how individual access to the internet can transform opportunities for people living in these communities, by developing new ways of accessing learning, work, shopping and leisure.

The Scottish Executive wrote to Local Authority Chief Executives, copied to Chief Executives and Directors of public sector bodies in Scotland, on 29 November 2001, outlining the key priority areas for developing citizen focussed services which could be supported by the second round of the Modernising Government Fund. Bidding Guidance for outline project proposals setting out strategic objectives and 4 key project areas issued on 19 December 2001.

The Smart Card Policy Working Group (chaired by the Office of the e-Envoy) of which the Scottish Executive is a member, is due to publish a draft smart card framework for consultation in early 2002. This group has taken note of the large number of smart card studies and practical implementation carried out world wide, in the compilation of its consultation document. The Scottish Executive has recently supported a smart card pilot project in Aberdeen and is working with Young Scot on a national project involving a young people's smart card. The Scottish Executive, whilst actively considering the use of smart cards in a number of areas, has no immediate implementation plans.

Management and Leadership skills are a strategic priority for the Scottish Executive and its Corporate Learning Services (CLS). CLS provides a wide range of project management, management and information technology training using a variety of training methods, including e-learning, classroom based and computer based training. All of these develop skills that can be used to take forward electronic service delivery.We have introduced a suite of courses with the aim of improving project teams; these include Project Leadership, Project Support, Microsoft Project and Consultancy Skills. The topics covered in these courses include project definition, goal setting, motivating the team, problem solving and negotiation.The Scottish Executive 21st Century Government Unit have also arranged a number of seminars and workshops on relevant topics for senior public sector staff outwith the Executive. We will continue to hold such seminars on appropriate topics where there is an identified need.

Good progress is being made with the Electronic Clinical Communications Implementation programme. Electronic transmission of laboratory test results is now well established in many parts of the country and a number of locations are beginning to electronically transmit referral and discharge letters. The technical infrastructure will be in place during the first half of this year to enable secure electronic exchange of clinical information between any GP practice and any NHS Trust in Scotland. The target is to achieve widespread implementation by 2003.

E-procurement was addressed by point no 24 of the Digital Scotland Taskforce's report. Since the report's publication the Executive has been working with the wider Scottish public sector, including health and local government, to develop an e-procurement service which will be available to all Scottish public bodies. In November 2001, following an international competition, the Executive announced the selection of Cap Gemini, Ernst and Young and its partner Elcom, to develop and host the web-based service. Pre-implementation work has already commenced in the Executive, Highland Council, West Lothian Council, Highland NHS bodies and Scottish Healthcare Supplies. Pre-implementation work is due to commence shortly in a range of other organisations.

The Scottish Executive is not a major service provider, and its main role therefore is to provide encouragement and guidance to service providers. This is being done in a variety of ways; eg through working groups, seminars, published guidance, research and the Modernising Government Fund.The first electronic service delivery progress report, published in November 2001, shows that more than 60% of the services provided by the Scottish Executive, its agencies and non-departmental public bodies are already available online.

Our aim is for public services to meet the needs of the citizen, e.g. by delivering the appropriate answer to the citizen at the first point of contact. This is set out in more detail in the 21st Century Government Vision Statement which is publicly available on the 21st Century Government website.