The head of a committee looking at expanding e-commerce and telecommuting in Victoria says internet services are the biggest barrier.

Parliament's Rural and Regional Committee held an inquiry to look at opportunities for economic development in country areas through working remotely.

Its report makes nine recommendations to help develop opportunities in rural and regional areas.

Committee chairman Paul Weller says technology can reduce the pressures on infrastructure and create growth in the country but slow internet speeds are still a challenge.

"The level of service when it comes to download speeds is a concern and one of our recommendations is that the State Government lobby the Federal Government quite strongly to make sure we maximise the opportunities in rural and regional Victoria when it comes to that service," he said.

Mr Weller says allowing people in rural and regional areas to work from home increases how much money they spend in their home towns.

He says the report found the Government should lead by example in promoting e-commerce and telecommuting.

"The inquiry found that there's opportunities to reduce investment and congestion in infrastructure by people working at least one day a week at home and we would be, the recommendation is that the Government actually lead the way and have in their own departments people that can work remotely," he said.