A new three-person commission replacing the Office of the Data Protection Commissioner will be set up if proposed new legislation reforming the area is passed by the Oireachtas.
The Data Protection Bill 2018, which is set to come before the Seanad in the coming weeks, will transpose into Irish law the EU's new General Data Protection Regulation or GDPR that will come into force from 25th May.
The new rules will replace the 1995 EU Directive on Data Protection, significantly overhauling rule and regulations governing the area.
Other measures contained in the draft legislation include stronger supervision and enforcement powers for the state in the area of data protection.
The amount of compensation that people whose data protection rights have been breached can claim will also increase.
Launching the bill, Minister for Justice Charlie Flanagan said it would give people more control over their personal data and give businesses the benefit of a level playing field.
GDPR applies to data relating to an individual that is processed by another individual, a company or an organisation, he said.
But it does not apply to data processed by an individual for purely personal reasons or for activities carried out in a person's home, provided it is not connected to professional or commercial activity, he added.
"Governments have a fundamental role to protect the citizen in these circumstances and that it what the GDPR and the Data Protection Bill published today are all about," he said.
Minister Flanagan also highlighted some of the improved rights the reformed regime would give to individuals, including the right to obtain access to personal data held and the right to ask for incorrect, inaccurate or incomplete personal data to be corrected.
Asked about concerns expressed by the current Data Protection Commissioner Helen Dixon about the exemption of public bodies from fines for breaches of data protection rights, Mr Flanagan said he expected state bodies to be compliant.
He said it was important in the context of public and state involvement that such bodies lead by example.
"There is provision under the legislation for prohibition orders, but I don't think they will be necessary," he claimed.
Minister of State with responsibility for Data Protection, Pat Breen, said Ireland is a front runner in Europe in relation to its data protection regime.
He said Ireland was the first country in Europe to appoint a Data Protection minister and had increased the budget for the Office of the Data Protection Commissioner six-fold since 2014.
He said companies that are compliant with GDPR will have a great advantage and while it is a challenging and complex area, he said he is sure they will be ready for that challenge.
