Ireland is to introduce postcodes by January 1st 2008, according to Minister for Communications Noel Dempsey.
"We are one of the only developed countries in the world that doesn't have a postcode,"said Mr Dempsey.
However, An Post has said the plan could be "controversial". It told a working group set up to examine the future of the company that a postcode system was not needed because it already had its own technical postcode, which combines the GeoDirectory national database with automated optical character-recognition sorting equipment.
An Post said the introduction of the scheme, which the working group estimates will cost between €200,000 and €300,000, could have significant operational costs for the company.
It said internal set-up costs could run to more than €6 million. An Post also said postcodes could be resisted by people who were attached to existing addresses, or who were concerned the new system would influence prestige, house prices and insurance costs.
But the Minister said: "The working group identified substantial benefits to be gained by the introduction of a postcode, not just to improve the quality of postal services but also to facilitate public utilities and business in accurately identifying their customers," the Minister added.
The postcode system will feature numbers and letters as in the United Kingdom.
Mr Dempsey is expected to appoint a National Postcode Project Management Board to represent stakeholders. He has asked the chairwoman of ComReg, Isolde Goggin, to appoint project managers to design a suitable postcode system and assess the costs.
The Fine Gael spokesman on communications, Bernard Durkan, said the plan should only go ahead if there were clear benefits to the consumer.
"I remain to be convinced about the benefits of introducing a postcode to Ireland, and why it is being discussed now. The last thing any household wants is to be landed with a mountain of junk mail, which could result from this proposal."
Tommy Broughan, Labour Party spokesman on communications, noted that the experiences of other countries do not suggest postcodes improve services for customers, businesses and public services.
