Mr. Eamonn Molloy:

It is not going to be of that order. I will make two points. I will let the representatives of Capita which is managing that side for us deal with the issue of cost. Ultimately, what is being offered is a business solution which solves a fundamental problem and will generate an awful lot of value. Effectively, we have a situation in terms of delivery in Ireland where it is extremely difficult for businesses making deliveries in rural Ireland to find the point of delivery. That is giving rise to very significant costs. We have been told that the absence of a postcode in Ireland is creating issues around competitiveness because it is simply a more expensive country in which to engage in any type of logistical operation. Dealing with the competitiveness problem requires us to address the issue of non-uniqueness. The amount of 35% of addresses is very big and it does not just relate to homes; it also relates to business addresses. In talking to major UK multinationals, as well as Irish companies involved in doing business in Ireland, it is clear it is a significant issue for them. An important point for us is that it is a penalty which applies principally in rural areas and the regions. The cost penalty does not arise in cities. Looking at the project during the years, if one could say what the significant change has been in terms of mindset from 2010 on, ultimately it has really been about dealing with the uniqueness issue. Dealing with uniqueness is not easy, but it has to be done. In fairness, the committee was one of the first to deal with it, which very much helped the process. It became clear that if one were to have a postcode, one would have to deal with the uniqueness issue.

I have provided the direct cost to the State. I am very glad to confirm that there has been a very extensive process of consultation since the beginning of the procurement process and even preceding it. Ms Cronin’s slides show that ultimately we have dealt with a very large number of people. Having a postcode is a topic which excites a great deal of interest and there are very diverse opinions when it comes to postcodes. Different people hold different views and they are held passionately, honestly and openly. There is no issue in that regard, but, ultimately, when one is making a final design available, one must look for something that is in the public interest that meets most requirements, most of the time, and where it does not, it should be possible to deal with the issue by way of very minor and cost-effective adaptations.

In terms of the most extensive of consultation processes which happened prior to procurement, we consulted no less than eight groups of bodies, for example, financial, retail and other bodies. On the logistical side, we had reasonably frequent contact with the various companies involved, including significant players in the FTAI. We also dealt with significant delivery operators which were not part of the FTAI, some of whom had made their opinions known to the committee. In fairness, regardless of what one could say about where the project stands, it is not due to a lack of consultation.

Mr. Duggan will speak about the issue of costs.