Postal system: consultants

The government has not yet decided when it will introduce a long-awaited new postcode system here, opting instead to spend an additional €54,000 of taxpayers' money commissioning a second report to examine the merits of such a move.


This is despite the fact that it has already paid out some €450,000 to consultants employed to advise the National Postcode Project Board (NPPB) in its deliberations on the issue.


The board presented its wide-ranging recommendations to government three years ago this month, and a commitment to introduce a new postcode system forms part of the current Programme for Government.


But no decision has so far been taken on how best to proceed with such a move, with the NPPB estimating the new system would cost the exchequer around €15m to implement and promote.


Supporters of the move have claimed that it could help to grow significantly the postal market on the island, in particular direct mail services, as An Post prepares for the opening up of the Irish market to competition. Under the EU's third postal directive, this is required to take place by the end of 2010.


In a written Dáil reply to a question tabled by Labour Party leader Eamon Gilmore, Minister for Communications Eamon Ryan said he expects to bring proposals on reform of the postcode system to his cabinet colleagues once analysis of the second report is complete. He revealed that the government has spent €54,450 in consultancy fees on this report, which it decided in May 2007 was necessary "to quantify the wider economic and societal benefits" prior to the introduction of a postcode system.


In his reply, Ryan acknowledged that the NPBB's July 2006 recommendations had also included an analysis of "the costs and benefits arising from its introduction along with a detailed implementation, promotion and maintenance plan".


"The board was assisted by technical and economic consultants, recruited by ComReg, at a cost of approximately €450,000," he said.


"The proposal of the NPPB was to proceed with an alpha-numeric postal sector postcode model and that each postcode would be compatible with GPS and other global navigation satellite systems."


He added that while there are areas of overlap between the two systems, it was his view that because of the different uses to which they can be put, satellite technologies "will not make postcodes redundant".