Dáil Éireann Debate, Tuesday - 3 November 2015
1137. Deputy Finian McGrath asked the Minister for Communications, Energy and Natural Resources his views that the State has achieved value for money from the €57 million spent on the Eircode project; and if he will make a statement on the matter. [38052/15]
Amharc ar fhreagraThe cost of the contract with Capita who were awarded a ten year licence to develop and maintain the postcode system is €27m. Taking consultancy costs, staffing costs and VAT the total cost of the project is estimated to be €38m over its lifetime. The total cost of the project covers design of the eircode, encoding public sector databases, accessing the GeoDirectory database, the launch and implementation of Eircodes and the ongoing management of the system for the licence period. The total spend to date on the postcodes project amounts to €19.5m (including VAT). Capita have been paid €17.5m (including VAT) to date on foot of delivery of agreed milestones. The bulk of this figure, €9.4 million was spent on encoding public sector bodies' databases. Aside from payments to Capita, €2m (including VAT) has been spent on specialist costs arising in the project in the period 2009 to date.
Public sector bodies such as the Revenue Commissioners and the Department of Social Protection are already using the codes in day to day business.
Capita has signed up 21 Value Added Re-sellers who will develop products and services using the Eircode databases.
As the Eircodes were only launched in July, usage of the codes is only starting to be visible and it is too early to make an evaluation of the project. However, based on engagement with public and private sector bodies during the developmental phase of the project, I am satisfied that, in time, as usage of Eircodes increases, they will support economic activity and deliver social benefits.
