Dear Mr Whittaker

Re: Freedom of Information Request

I am writing in response to your request for information which was submitted online on

15^th October 2009. We have considered your request under the terms of the Freedom of Information Act 2000. You requested the following information:

“Under the Freedom of Information Act,

I would like to obtain information about the costs to the Royal Mail of maintaining the Postcode Address File (PAF) and the geographic coordinates of each code as contained in the PostZon product.

I would like a detailed breakdown of the annual costs to maintain both sets of data (ideally separated between the two) for a suitable recent period. Where staffing costs are included,

I would like descriptions of the activities/roles involved and the numbers of staff assigned to each. Where computing/IT costs are included

I would like a breakdown in terms of capital expenditure, software licenses, consultancy fees, etc.

I would also like details of the income generated from these data sets over the same period, from selling licences and any other sources.

Additionally, I would like to know if the data in these two datasets is all generated by the work of Royal Mail employees, or if some of it is supplied by outside bodies. If the latter, then does Royal Mail have to pay for any of the provision, and under what licensing terms is the data supplied? Are either the costs or licensing terms here regulated by legislation?

The postcode address file is the central database owned and managed by Royal Mail that holds all the postcodes and postal addresses - approximately 27.5 million of them - in the UK. Under the conditions of its licence, Royal Mail is obliged to maintain the postcode address file and make it available to any person who wishes to use it on terms that are reasonable.

This is information has a clear commercial value and is marketed by Royal Mail through the Address Management Unit and other resellers. Information on all postal addresses and postcodes in the United Kingdom has been built up and managed by Royal Mail. Many organisations including new postal operators, banks, insurance companies and others offering to deliver goods to the public's door have a need for this information. It would be very time-consuming and costly for anyone to try and recreate the information, and it therefore has a commercial value. Royal Mail licenses the data, for a fee, allowing others to use it.

I am therefore unable to provide any details of the information you have requested as it is considered to be exempt from disclosure under under section 43(2) of the Freedom of Information Act - Prejudice to Commercial Interests. This is because the information has a clear commercial value to Royal Mail, and releasing this information into the public domain would prejudice the commercial interests of Royal Mail and our supplier. Disclosing the information without restraint via the Freedom of Information Act would clearly devalue the products marketed by Royal Mail and prejudice the commercial interests of Royal Mail and others who use the information as part of their commercial services.

This exemption is subject to the public interest test, but we believe that in this case the public interest lies in withholding information where disclosure could prejudice commercial relationships and future contractual negotiations We believe that there is public interest in allowing normal market forces to operate in this environment and in protecting the commercial interests of Royal Mail and others. Disclosing the information via Freedom of Information would not in any way inform the public or contribute to public interest in openness or transparency of public services. Therefore we believe that in all circumstances of the case the public interest is best met by applying the exemption and that the information should not be disclosed.

I am sorry that your request cannot be met on this occasion. If you are not satisfied with this response, you do have a right of appeal. If you wish to do so please set out in writing your grounds of appeal and send to The Head of Information Compliance, Royal Mail Group, Company Secretary's Office, 100 Victoria Embankment, LONDON, EC4Y 0HQ an internal panel will then review the decision, and you will be advised of the outcome.

If you decide to appeal and are still not satisfied with our response you also have a right to appeal to the Information Commissioner at:

Information Commissioner's Office

Wycliffe House

Water Lane

Wilmslow

Cheshire

SK9 5AF

Telephone: 01625 545 700

www.informationcommissioner.gov.uk

Cont…

13 November 2009