I propose to take Questions Nos. 50, 53, 57 and 84 together.
A smart economy envisages economic development based on innovation and sustainability and an economy aiming for high end performance requires that the underlying infrastructure supports enterprises based on knowledge and innovation. One key element of national infrastructure which is required is a common spatial identifier across the economy. Postcodes provide this common identifier which will assume greater importance as we become more embedded in the digital economy. Ireland is the only country in the EU that does not have such a postal code in place. The Government has recently approved the implementation of a postcode for Ireland as recommended by the National Postcode Project Board. This board, which comprised representatives from Government Departments, together with public and private sector organisations, including the Communications Workers Union, identified many postal and non-postal benefits of introducing postcodes and recommended that a postcode be introduced. Consultations conducted by the Board's advisors revealed an overwhelming support for the introduction of postcodes across public, private and voluntary sectors and identified that postcodes would not only deliver benefits for the postal sector but also would contribute to the development of a knowledge economy and the country's overall competitiveness.
With respect to the postal sector, the forthcoming liberalisation of the market in 2011 has highlighted the absence of a postcode as a potential barrier to market development and many stakeholders see postcodes as playing an important role in development of a competitive, high-quality postal sector. I am aware of the criticisms made by the Communications Workers Union, in particular, that postcodes will damage the position of An Post. This is not the case. It has been longstanding Government policy that An Post remains a strong and viable company, in a position to compete in a liberalised market. The Government's core policy goal for the postal sector is to ensure that Irish customers, both business and residential, enjoy competitively priced, high quality postal services. This would not be possible without a key piece of infrastructure such as postcodes. The introduction of postcodes will bring opportunities for all players in the postal sector. However, some of the more significant benefits of having a postcode in place will materialise outside of the postal and logistics sectors. These benefits include providing an enhanced capacity and capability to use spatial data effectively and link databases with spatial elements across Government. Using spatial data more effectively can improve public policy making and help with the more effective use of resources. Postcodes will also facilitate better location-based services and will also facilitate the speedier deployment of emergency services.
As regards costs, the National Postcodes Project Board's report estimated upfront costs of establishing a postcode address database, implementing and promoting the postcode would be in the region of €15 million. The ongoing annual maintenance costs, will be financed from revenues generated by the postcode manager charging for value added products and services. The upfront investment by Government can be justified, because, the benefits to society, which are spread across a wide range of stakeholders, including the public sector, outweigh the private benefits accruing to any individual investor. No single stakeholder or set of stakeholders is likely to ensure the delivery of a publicly available postcode. Government is in the unique position of being able to implement a national postal and location code. As a key piece of national infrastructure, they will deliver economic and social benefits, which we will reap long into the future. Whilst many of the benefits of postcodes cannot be accurately gauged in monetary terms, consultants asked to review the public sector benefits estimated the monetary benefits to the State would be €22 million in the medium term. This analysis incurred fees of €54,450. Separately, the National Postcodes Project Board was assisted in its work by technical and economic consultants, recruited and funded in 2005 by ComReg, at a cost of approximately €479,000. Following on from the Government approval to implement postcodes, my officials and I are working to address the next steps in this project, including the process of selecting a body to implement the proposed system. It is expected that postcodes will be assigned and in use in 2011.