Michael Moynihan (Cork North West, Fianna Fail)
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4. To ask the Minister for Communications, Energy and Natural Resources the estimated costs of the rolling out of the national postcode system; if the implementation of the postcode system will have any impact on employment levels in An Post; and if he will make a statement on the matter. [35401/13]

Pat Rabbitte (Dublin South West, Labour)
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Ireland is the only country in the EU and OECD that does not have a national postcode and the Government is strongly committed to introducing a national postcode system. The new postcode system will be an important part of national infrastructure.

The procurement process to select a postcode management licence holder to implement a national postcode system has been protracted and is ongoing. Intensive work has taken place on what is an extremely complex national project. The total cost of the postcode system will be determined through the procurement process. Therefore, I cannot give any estimate as to the cost of rolling out a national postcode system at this time.

However, I can say at this stage that the final invitation to tender has already issued. The responses to that invitation will be evaluated by the postcode evaluation team chaired by my Department during August, the end of July is the deadline for the bids. I intend to bring a comprehensive proposal to Government for approval in September. This proposal will include an evaluation of the technical and operational considerations and will also include the estimated costs of the implementation of the national postcode system.

In relation to the second part of your question, I do not envisage that the implementation of the postcode system will have any impact on employment levels in An Post. The national postcode system will facilitate improved efficiencies and quality improvements in the mails sector and provide a stimulus to mail volumes though improved direct marketing capabilities.

Michael Moynihan (Cork North West, Fianna Fail)
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This issue is vitally important. We had a discussion on the post office network yesterday. There is need for fundamental engagement with all of society on the post office network. I am glad the Minister foresees that there will not be any employment issues and I hope that is correct.

Another issue is to get the public to buy into this new system. Often when the change of this magnitude is proposed, the public is sceptical of it. Is it envisaged that there will be an information campaign on this new system?

The Minister said that he should have a report on this by the end of this month and that he will bring it to Cabinet in September. By what date does he envisage the national postcode system will be operational?

Pat Rabbitte (Dublin South West, Labour)
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What I put formally on the record is correct because apart from efficiency and quality, there are many logistical companies and companies that engage in target marketing certain segments of the population. All of that is likely to generate business for An Post. I do not believe this will be a negative for An Post. It will be a big plus for business because there are segments of business in this digital age that require a national postcode system. There are several Departments such as the Revenue Commissioners, the Department of Agriculture, Food and the Marine, the Department of Social Protection and so on for which this will be a major advantage.

I agree with the Deputy Moynihan that there will be a necessity for an information campaign. We cannot take the support of the public on this for granted. I was very nervous about switch over to digital television last year but making a hames of a national postcode would put that in the shade. It is a complex proposal and it will have to be handled carefully.

Michael Moynihan (Cork North West, Fianna Fail)
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Has any study or report been done, or have there been any discussions within the Department or the sector, on what impact a postcode system would have on the post office network?

Pat Rabbitte (Dublin South West, Labour)
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There is close discussion on this. I understand the Deputy recently questioned the new chairman of An Post when he was before the relevant Oireachtas committee. An Post is behind this proposal. It acknowledges that as the only country in the OECD that does not have a national postcode system, we have to get on with it. It sees possibilities in it for the generation of business that cannot be done at present under the old system. In circumstances where its core business, the mails business, has been in decline for some years now, it is confident about this proposal and it believes it will help to arrest that trend.