Alex White (Dublin South, Labour) | Oireachtas source

I am pleased to present the Communications Regulation (Postal Services)(Amendment) Bill 2015 for the consideration of this House. The 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 Co-operation and Development without a postcode system. While successive Governments have grappled with this issue, the Government is now in a position to bring the postcodes project to a successful conclusion, building on work completed since the publication of the report of the National Postcode Project Board in 2006.

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 process on 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 commercialisation of the system.

A detailed procurement process began in January 2011. Part of this process was the competitive dialogue phase which involved face-to-face talks on proposals to assist the Department in defining its final tender requirement and ensuring all bidders were adequately informed of them. In October 2013 the Government approved the appointment of Capita as the postcode contractor. Capita employs over 2,000 people in Ireland. It has 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 the Government in April 2014.

I will now deal with the rationale for the project. The ways in which we communicate and conduct our business have been radically transformed in recent years. This transformation is ongoing. We live in an interconnected world. The 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, or in 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 the project many stakeholders, in both the public and private sectors, told us about the challenges of finding addresses in Ireland, particularly in rural areas. The Nightline group handles more than one million parcels a month and employs more than 750 staff at 11 sites throughout the entire island of Ireland. It is strongly in favour of adopting Eircode as it deals with these issues first hand.

Approximately 35% of premises have exactly the same address as another property. In both rural and urban areas, the same building can have multiple forms of address. Unlike other countries, we have no legal form of addressing in this country. For these reasons an area or hierarchical based code would simply not work in Ireland. It would not allow us to overcome any of these addressing difficulties. 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 Eircode postcodes. It is also sustainable with no requirement to reassign or change an existing Eircode postcode when a new premises is built.

Fundamentally, this project is about delivering a critical piece of national infrastructure which will secure many benefits. The National Ambulance Service has stated that it looks forward to the launch of the new Eircode system in Ireland which will assist in locating address locations. It said that a system, such as Eircode, which contributes in assisting ambulances to arrive at the scene of an emergency faster, is a welcome development and that Eircode will be exploited fully in the interests of quality and safe patient pre-hospital care. The other emergency services will also use the codes in time.

The introduction of Eircode will also deliver the following benefits: make it easier for consumers to shop online and assist the development of Irish online commerce; improve the quality of access to public services while reducing the cost; enable commercial organisations to improve existing services and develop new service offerings; improve planning and analysis capabilities across both public and private sectors; and provide a stimulus to mail volumes through improved direct marketing capabilities.

Significant stakeholder engagement was undertaken during the procurement process and initial roll-out. Thirty industry seminars have been conducted since March 2014. These industry groups include telecoms, energy, banking, insurance, retail and logistics. In excess of 1,000 attendees representing more than 600 different 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 postcodes and details of the products and pricing. Sample data have also been made available to allow businesses and other organisations test their systems in advance of the launch. Immediately following the launch of Eircode postcodes, every premises in Ireland will receive a letter containing the Eircode postcode for that address. The letter will include information on the benefits of Eircode postcodes and how they can be used. The launch will also feature a national communications campaign that involves TV, radio, national and regional press. The campaign will be complemented by an online tool to enable citizens to easily find Eircode postcodes and addresses. Members of the public will be able to enter an address to find an Eircode postcode or enter an Eircode postcode to find an address. The Eircode postcode finder will be easily accessible on a computer, tablet or smartphone. It will also be able to identify addresses on an Ordnance Survey map and will help the user with directions, if needed.

Equally important, an outreach campaign, managed by Capita, the Wheel and Irish Rural Link, is under way. The campaign reaches out to vulnerable groups to explain the benefits of the codes and address any concerns people may have about their use. I am especially pleased that this outreach programme includes the recruitment of 23 outreach champions to drive awareness at county level. These champions have mobilised almost 2,500 volunteers in more than 550 organisations to reach out to people in their own communities, including GAA clubs, community alert groups, active retirement clubs and rural transport groups. They have reported a positive response to the introduction of Eircode postcodes and a widespread interest in learning more. These volunteers have assisted almost 9,000 people. They plan to reach thousands more over the coming months to ensure all sectors of society are aware of and comfortable with using Eircode postcodes. Local briefings, print materials and electronic information have been provided to community, voluntary and civil society groups at national and local levels. 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.

Eircode postcodes are not compulsory. No one will have to pay for them. No individual householder will have to pay for his or her Eircode postcode. The Eircode postcode system will be rolled out automatically. No citizen needs to take any specific action once the Eircode postcode has been received through the letter box.

The final significant element of the project is the enactment of this legislation. It will ensure members of the public can have absolute confidence in regard to data protection. The primary purpose of this legislation is to enshrine the highest levels of data 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. The contract we have with Capita reflects this approach. As Minister, I have decided that this approach must 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. My Department has also completed and published a comprehensive privacy impact assessment even though it is not a statutory requirement. The purpose of the privacy impact assessment is to ensure any potential privacy impact on individuals as a result of the introduction of Eircode postcodes is recognised and addressed. The assessment has concluded that the introduction of Eircode postcodes is unlikely to have any significant adverse effect on the right to privacy. All the recommendations contained in the assessment have been incorporated into this Bill. The Bill represents a sensible and pragmatic approach to data protection as it relates to postcodes. It sets out the high level principles underpinning a protective framework and strikes a balance between ensuring the commercial viability of postcodes while at the same time underpinning data protection.

I will now deal with the text of the Bill. This relatively short Bill is divided into three sections. Sections 1 and 3 contain standard preliminary provisions and definitions.

Section 2 contains the main provisions of the Bill. It 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 of the principal Act 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 those who sell these services, known as value-added resellers, VARs, are screened against specific criteria before they can use postcode databases. This section also provides the Minister with the power, by regulations, 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, including the suspension and termination of licences. In addition, the postcode contractor will only grant a licence to a VAR or end user where it can be demonstrated that they have registered with the appropriate data protection regulator, if this is required.

Section 66B, as inserted by section 2 of the Bill, introduces a specific obligation for the postcode contractor and VARs 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. They cover the fundamental functions of the postcode system, including its development and maintenance, the dissemination of postcodes, the matching of addresses and the 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 the Minister for Justice and Equality before making 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 to the processing of personal data by end users or others.

Section 66D sets out the complaints procedure for postcodes. It puts in place 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 will be retained for record keeping purposes.

The Bill will copperfasten the highest level of data protection for the postcodes project, ensuring the confidence of citizens and commercial entities in the implementation and operation of the system. In the interests of providing certainty for all market players, enabling the development of fair competition among VARs 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 the Members of this House on this important legislation. I also look forward to the launch of the national postcode system in the summer as scheduled. I commend the Bill to the House.