Alex White (Dublin South, Labour) | Oireachtas source

I move: "That the Bill be now read a Second Time."

I am pleased to present the Communications Regulation (Postal Services) Amendment Bill 2015 for the consideration of this House. This legislation is an important, almost final, milestone in the introduction of a national postcode system. Ireland is the only country in the European Union or the Organisation for Economic Cooperation and Development without a postcode system. While successive Governments have grappled with this issue, this Government is now in a position to bring the postcodes project to a successful conclusion.

The Communications Regulation (Postal Services) Act 2011 provided for the full liberalisation of the postal sector in Ireland. It included provisions, in section 66, to permit the Minister to establish a national postcode system. In July 2009 the then Government approved the launch of a procurement process for a national postcode, based on the 2006 report of the national postcode project board. In 2010, the Department established a postcode steering group and undertook a wide-ranging consultation on the implementation of a national postcode system. More than 60 interested parties were met as part of that process. There was a positive response to the consultation process, and the Department received detailed views on various issues, including the technical specification, dissemination and the commercialisation of the system.

A detailed procurement process began in January 2011. In October 2013 the Government approved the appointment of Capita as the postcode contractor. Capita employs over 2,000 people in Ireland. They have been contracted to design, develop and implement the national postcode system, working with indigenous Irish companies to create the supporting technology for the project. The brand Eircode was approved by Government in April 2014.

The ways in which we communicate and conduct our business have been radically transformed in recent years. This transformation is ongoing. Our digital economy is worth €8.4 billion, and is growing at a rate of 20% per year, five times faster than the rest of the economy. Research suggests that, by 2020, the value of the digital economy will have risen to 10% of gross domestic product, GDP, or over €21 billion. Irish consumers spend in excess of €6 billion a year. That is of the order of €700,000 per hour, 24 hours a day. Moving goods from a virtual point of sale to people's homes and businesses is a major logistical undertaking.

During the consultative phase of this project, many stakeholders, in the public and private sectors, told us about the challenges of finding addresses in Ireland, particularly in rural areas. First, approximately 35% of premises have exactly the same address as another property. Second, in urban and rural areas, the same building can have multiple forms of address. Finally, and unlike other countries, we have no legal form of addressing in Ireland. We have, therefore, adopted a unique approach, tailored to meeting our unique addressing challenges. We have developed a postcode system that assigns a unique identifier to each address in the State. This approach is future proofed in that it allows for future expansion in the number of addresses without changing Eircodes. It is also sustainable, with no requirement to re-assign or change existing Eircodes when new premises are built. Fundamentally, this project involves delivering a critical piece of national infrastructure which will secure benefits such as making it easier for consumers to shop online and assisting the development of Irish online commerce; improving the quality of access to public services, while reducing the cost; enabling commercial organisations to improve existing services and develop new service offerings; improving planning and analysis capabilities across public and private sectors; providing a stimulus to mail volumes through improved direct marketing capabilities; and making it quicker and easier for emergency services to locate addresses, particularly in rural areas.

A comprehensive communications campaign has been developed for the introduction of Eircodes. Significant stakeholder engagement was undertaken during the procurement process and the initial roll-out. Thirty industry seminars have been conducted since March 2014. These industry groups include telecoms, energy, banking, insurance, retail and logistics. Over 1,000 people, representing over 600 companies have attended these sessions and additional seminars will be held over the next two months. Information for businesses is also available on the Eircode website which provides guidance on preparing for Eircode and details of the products and pricing. Sample data has also been made available to allow businesses and other organisations test their systems in advance of the launch.

Immediately following the launch of Eircode every premises in Ireland will receive a letter containing the Eircode for that address. The letter will include information on the benefits of Eircode and how it can be used. The launch will also feature a national communications campaign involving television, radio, national and regional press. This will be complemented by an online tool to enable citizens to find Eircodes and addresses easily. Members of the public will be able to enter an address to find an Eircode or enter an Eircode to find an address. This Eircode finder will be easily accessible on a computer, tablet or smartphone. It will also be able to identify addresses on an ordnance survey map, helping the user with directions if needed.

Equally important is an outreach programme managed by Capita, the Wheel and Irish Rural Link which is under way. This is reaching out to vulnerable groups to explain the benefits of the codes and to address any concerns people may have as to their use. I am particularly pleased that this outreach programme includes the recruitment of 23 outreach champions to drive awareness at county level.

These champions are recruiting volunteers involved in local organisations in practically every town and village to ensure all sectors of society are aware of and comfortable with Eircodes. They have reported a positive response to the introduction, with widespread interest in learning more about them. More than 1,200 volunteers in more than 550 local organisations have mobilised to reach out to people in their local communities, including GAA clubs and community alert, active retirement and rural transport groups. These volunteers have assisted more than 8,000 people and are planning to reach thousands more in the weeks and months ahead. Local briefings, print materials and electronic information have been provided to community, voluntary and civil society groups at national and local level. Information leaflets will be available in citizens information centres. This effort is providing further assistance and ensuring greater understanding of the new system among vulnerable groups.

Eircodes are not compulsory, no one will have to pay for them and they will be rolled out automatically. Citizens do not need to take any specific action once an Eircode has been received through the letter box.

The final significant element of the project is the enactment of this legislation, which will ensure members of the public can have absolute confidence regarding data protection. Given the tight timeframe for completion of this project and the substantial commitments which had been entered into around communications and a signalled launch date during the summer, I regret it has not been possible to facilitate pre-legislative scrutiny.

The primary purpose of this legislation is to enshrine the highest protection within the postcode system. It also provides the clearest possible reassurance that all personal data will remain secure. My Department has consistently taken a strong line on data protection in the design, implementation and operation of the project. This position is also reflected in the contract with Capita.

As Minister, I have decided that this approach should be confirmed in primary legislation to ensure the greatest level of protection for citizens. My Department has had ongoing engagement with the Data Protection Commissioner and has completed a comprehensive privacy impact assessment. The Bill provides a sensible and pragmatic approach to data protection as itrelates to postcodes. It sets out the high level principles underpinning a protective framework, striking a balance between ensuring the commercial viability of postcodes, while underpinning data protection.

I will now address the text of the Bill, which is divided into three sections. Sections 1 and 3 contain standard preliminary provisions and definitions. Section 2 contains the main provisions, sets out the amendments to the Communications Regulation (Postal Services) Act 2011 and outlines requirements for the use of postcodes. It provides a statutory footing for specified legitimate postcode activities, which are fundamental to the establishment and implementation of the postcode project. Section 66 also provides additional safeguards for the legitimate interests of owners and occupiers of properties by providing the Minister with powers to set down requirements that businesses must satisfy before they can be granted a licence to use a postcode database to provide value added services. Value added services are products or services that use or are derived from a postcode database. This provision enables the Minister to ensure that those who sell such services, known as value added resellers or VARs, are screened against specific criteria before they can use postcode databases.

This section also provides the Minister with the power, by regulation, to require the postcode contractor to include certain specific provisions in the licences it grants to value added resellers. This enables the Minister to ensure there is a robust legal contract governing the manner in which value added resellers use postcode databases, including protections such as audit rights and sanctions such as suspension and termination of licences. In addition, the postcode contractor will only grant a licence to a value added reseller or end user where it can be demonstrated that the VAR has registered with the appropriate data protection regulator, if this is required.

Section 66B introduces a specific obligation for the postcode contractor and value added resellers to publish a privacy notice. This requires specific information to be made readily available to individuals on how postcodes will be used and to whom they may be licensed. It also sets out individual rights with a view to enabling the creation of a clear and transparent data protection framework.

Section 66C provides for the amendment of the principal Act to clarify that certain legitimate postcode activities may be undertaken in compliance with the Data Protection Acts. The scope of these legitimate postcode activities has been kept deliberately narrow. It covers the fundamental functions of the postcode system, including the development and maintenance of the postcode system, dissemination of postcodes, matching of addresses and licensing and reselling of the postcode address database.

The Minister is also to be given the power to make regulations specifying new legitimate postcode activities. The Minister will be required to consult the Data Protection Commissioner and Minister for Justice and Equality before making any regulations in this respect.

Section 66C only applies to legitimate postcode activities undertaken by the postcode contractor, the Minister or value added resellers. Consequently, the Data Protection Acts 1988 and 2003 apply fully as regards the processing of personal data by end users or others.

Section 66D sets out the complaints procedure regarding postcodes and establishes adequate steps to safeguard the legitimate interests of owners and occupiers of properties.

Section 66E imposes a further statutory obligation on the postcode contractor to develop a data retention policy to ensure decommissioned postcodes are retained for record keeping purposes.

This legislation will copper-fasten the highest level of data protection to the postcodes project, ensuring the confidence of citizens and commercial entities in the roll-out, implementation and operation of the system. In the interests of providing certainty to all market players, enabling the development of fair competition among value added resellers and enhancing the protection of postcode users, it is important that the most appropriate data protection framework is put in place swiftly.

I look forward to hearing the views of Members on this important Bill. I also look forward to the launch of our national postcode in the summer, as scheduled. I commend the Bill to the House.

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