The Communications Minister has admitted the new postcode system will make it easier for Revenue to collect taxes. Pat Rabbitte was speaking as the new EirCode service was unveiled in Dublin today.

It will use a 7-character code in an alpha numeric format. Existing Dublin postal districts will be retained.

The government says the new postcode will provide benefits for householders, businesses and State bodies.

Parcel and mail deliveries from An Post and other delivery companies will be able to use the new postcode system to quickly identify the location of a single house set in the countryside, or an apartment in a newly-developed multi-storey.

Emergency services are also set to benefit from the new system. A 10-year contract - signed back in January with Capita Ireland - provides for the design, encoding and roll-out of a national postcode system.

It is due to be launched in the first quarter of 2015. Critics have accused the system as streamlining collection of the property tax.

Minister Pat Rabbitte says that is not the purpose of the service - but it will make things easier for Revenue.